Document:

SECOND AMENDMENT
                                       TO
                                   E-REX, INC.
                               2002 NON-QUALIFIED
                           STOCK GRANT AND OPTION PLAN

     This  Second  Amendment  to  E-Rex, Inc. 2002 Non-Qualified Stock Grant and
Option  Plan  (the  "Amendment")  is executed effective this 25th day of October
2002.

                                    RECITALS

     WHEREAS,  E-Rex,  Inc.,  a  Nevada corporation (the "Company") executed the
E-Rex,  Inc.  2002 Non-Qualified Stock Grant and Option Plan effective August 5,
2002  (the  "Plan");

     WHEREAS,  the  Plan  provided  for up to 13,500,000 shares of the Company's
common  stock  to  be  issued  pursuant  to  the  terms  of  the  Plan;

     WHEREAS,  the  Company  executed  the First Amendment to the Plan effective
September 24, 2002 increasing the number of shares of the Company's common stock
to  be  issued  pursuant  to  the  Plan  from  13,500,000  to  33,500,000;

     WHEREAS,  Section  7  of  the Plan provides that the Board of Directors may
revise  or  amend  the  Plan  at  any  time;

     WHEREAS, on the date hereof, the Board of Directors of the Company approved
this  Amendment  to  the  Plan.

     NOW,  THEREFORE,  the  Plan  is  hereby  amended  as  follows:

1.   Section  4  of  the  Plan  is  restated in its entirety to read as follows:

     "4.     IDENTIFICATION  OF  STOCK:  The  stock  subject  to  grant  and the
             -------------------------
options shall be shares of the Corporation's authorized but unissued or acquired
or  reacquired  Common  Stock,  par  value  $0.001 (the "Stock").  The aggregate
number  of  shares  subject  to  grant  and outstanding options shall not exceed
48,500,000  shares  of Stock (subject to adjustment as provided in Section 5.6).
If any option granted hereunder shall expire or terminate for any reason without
having  been  exercised  in  full,  the unpurchased shares subject thereto shall
again  be  available  for  purposes  of  this  Plan."

     As  adopted  by  the  Board  of  Directors  on  October  25,  2002.

                              E-Rex,  Inc.,
                              a  Nevada  corporation

                              /s/ Carl Dilley
                              _______________________
                              By:     Carl  Dilley
                              Its:    President

<PAGE>Table of Contents

SECTION 1.  CREDIT FACILITY..................................................3

  1.1  REVOLVING CREDIT LOANS................................................3
    1.1.1  Loans and Reserves................................................4
    1.1.2  Borrowings........................................................4
    1.1.3  Use of Proceeds...................................................4
  1.2  LETTERS OF CREDIT; LC GUARANTIES......................................4
  1.3  LC AMOUNT PARTICIPATIONS..............................................4
    1.3.1  Purchase of Participations........................................4
    1.3.2  Reimbursement by Participating Lenders............................5
    1.3.3  Payments to Participating Lenders.................................5
    1.3.4  Payment of Obligations............................................5
    1.3.5  FCC Actions.......................................................5

SECTION 2.  INTEREST, FEES AND CHARGES.......................................6

  2.1  INTEREST..............................................................6
    2.1.1  Rates of Interest.................................................6
    2.1.2  Default Rate of Interest..........................................6
    2.1.3  Maximum Interest..................................................6
  2.2  COMPUTATION OF INTEREST AND FEES......................................7
  2.3  LETTER OF CREDIT AND LC GUARANTY FEES.................................7
  2.4  UNUSED LINE FEE.......................................................7
  2.5  CLOSING FEE...........................................................7
  2.6  AUDIT AND APPRAISAL FEES..............................................7
  2.7  REIMBURSEMENT OF EXPENSES.............................................8
  2.8  BANK CHARGES..........................................................8
  2.9  AGENT AND ARRANGER MANAGER FEE LETTER.................................8

SECTION 3.  LOAN ADMINISTRATION..............................................8

  3.1  MANNER OF BORROWING REVOLVING CREDIT LOANS............................8
    3.1.1  Loan Requests.....................................................8
    3.1.2  Fundings by Lenders...............................................9
    3.1.3  Settlement and SwingLine Loans...................................10
    3.1.4  Disbursement.....................................................11
    3.1.5  Authorization....................................................12
    3.1.6  LIBOR Advances...................................................12
    3.1.7  Conversion of Base Rate Advances.................................12
    3.1.8  Continuation of LIBOR Advances...................................12
    3.1.9  Inability to Make LIBOR Advances.................................13
  3.2  PAYMENTS.............................................................13
    3.2.1  Principal........................................................13
    3.2.2  Interest.........................................................13
    3.2.3  Costs, Fees and Charges..........................................13
    3.2.4  Other Obligations................................................14
    3.2.5  Prepayment of LIBOR Advances.....................................14
  3.3  MANDATORY PREPAYMENTS................................................14
    3.3.1  Proceeds of Sale, Loss, Destruction or Condemnation of
           Collateral.......................................................14
  3.4  APPLICATION OF PAYMENTS AND COLLECTIONS..............................14
  3.5  ALL LOANS TO CONSTITUTE ONE OBLIGATION...............................15
  3.6  LOAN ACCOUNT.........................................................15
  3.7  STATEMENTS OF ACCOUNT................................................15
  3.8  INCREASED COSTS......................................................15
  3.9  BASIS FOR DETERMINING INTEREST RATE INADEQUATE OR UNFAIR.............16
  3.10  BORROWERS' REPRESENTATIVE...........................................17

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                                Table of Contents

SECTION 4.  Payments; Pro Rata Treatment; Computations; Etc.................17

  4.1  PAYMENTS.............................................................17
    4.1.1  Payment of Principal and Interest................................17
    4.1.2  Agent Authorized To Debit Borrowers' Account.....................18
    4.1.3  Application of Payment...........................................18
    4.1.4  Payment Received By Lender.......................................18
    4.1.5  No Right of Offset By Borrowers..................................18
  4.2  PRO RATA TREATMENT...................................................19
  4.3  ALLOCATION OF PAYMENTS FROM BORROWERS................................19
  4.4  NON-RECEIPT OF FUNDS BY THE AGENT; DELINQUENT LENDERS................20
    4.4.1  Non-Receipt of Funds.............................................20
    4.4.2  Delinquent Lenders...............................................21
  4.5  WITHHOLDING TAX EXEMPTION............................................21

SECTION 5.  TERM AND TERMINATION............................................22

  5.1  TERM OF AGREEMENT....................................................22
  5.2  TERMINATION..........................................................22
    5.2.1  Termination by Lenders...........................................22
    5.2.2  Termination by Borrowers.........................................22
    5.2.3  Effect of Termination............................................22

SECTION 6.  SECURITY INTERESTS..............................................23

  6.1  SECURITY INTEREST IN COLLATERAL......................................23
  6.2  OTHER COLLATERAL.....................................................25
    6.2.1  Commercial Tort Claims...........................................25
    6.2.2  Other Collateral.................................................25
  6.3  LIEN PERFECTION; FURTHER ASSURANCES..................................25
  6.4  LIEN ON REALTY.......................................................25

SECTION 7.  COLLATERAL ADMINISTRATION.......................................26

  7.1  GENERAL..............................................................26
    7.1.1  Location of Collateral...........................................26
    7.1.2  Insurance of Collateral..........................................26
    7.1.3  Protection of Collateral.........................................27
  7.2  ADMINISTRATION OF ACCOUNTS...........................................27
    7.2.1  Records, Schedules and Assignments of Accounts...................27
    7.2.2  Discounts, Allowances, Disputes..................................27
    7.2.3  Taxes............................................................28
    7.2.4  Account Verification.............................................28
    7.2.5  Maintenance of Cash Management System............................28
    7.2.6  Collection of Accounts, Proceeds of Collateral...................29
  7.3  ADMINISTRATION OF INVENTORY..........................................29
    7.3.1  Records and Reports of Inventory.................................29
    7.3.2  Returns of Inventory.............................................29
  7.4  ADMINISTRATION OF EQUIPMENT..........................................29
    7.4.1  Records and Schedules of Equipment...............................29
    7.4.2  Dispositions of Equipment........................................29
  7.5  PAYMENT OF CHARGES...................................................30

SECTION 8. REPRESENTATIONS AND WARRANTIES...................................30

  8.1  GENERAL REPRESENTATIONS AND WARRANTIES...............................30
    8.1.1  Organization and Qualification...................................30
    8.1.2  Corporate Power and Authority....................................30
    8.1.3  Legally Enforceable Agreement....................................31
    8.1.4  Capital Structure................................................31

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    8.1.5   Corporate Names, Etc............................................31
    8.1.6   Business Locations; Agent for Process...........................31
    8.1.7   Title to Properties; Priority of Liens..........................31
    8.1.8   ACCOUNTS........................................................32
    8.1.9   Equipment.......................................................33
    8.1.10  Financial Statements; Fiscal Year...............................33
    8.1.11  Full Disclosure.................................................33
    8.1.12  Solvent Financial Condition.....................................33
    8.1.13  Surety Obligations..............................................33
    8.1.14  Taxes...........................................................34
    8.1.15  Brokers.........................................................34
    8.1.16  Patents, Trademarks, Copyrights and Licenses....................34
    8.1.17  Governmental Consents...........................................34
    8.1.18  Compliance with Laws............................................34
    8.1.19  Restrictions....................................................34
    8.1.20  Litigation......................................................35
    8.1.21  No Defaults.....................................................35
    8.1.22  Leases..........................................................35
    8.1.23  Pension Plans...................................................35
    8.1.24  Trade Relations.................................................35
    8.1.25  Labor Relations.................................................36
    8.1.26  Bank Accounts...................................................36
  8.2  CONTINUOUS NATURE OF REPRESENTATIONS AND WARRANTIES..................36
  8.3  SURVIVAL OF REPRESENTATIONS AND WARRANTIES...........................36

SECTION 9.  COVENANTS AND CONTINUING AGREEMENTS.............................36

  9.1  AFFIRMATIVE COVENANTS................................................36
    9.1.1  Visits and Inspections...........................................36
    9.1.2  Notices..........................................................37
    9.1.3  Financial Statements.............................................37
    9.1.4  Landlord and Storage Agreements..................................38
    9.1.5  Guarantor Financial Statements...................................38
    9.1.6  Projections......................................................38
    9.1.7  Taxes and Liens..................................................38
    9.1.8  Tax Returns......................................................39
    9.1.9  Business and Existence...........................................39
    9.1.10  Maintain Properties.............................................39
    9.1.11  Compliance and Laws.............................................39
    9.1.12  ERISA Compliance................................................39
    9.1.13  Further Assurances..............................................39
  9.2  NEGATIVE COVENANTS...................................................40
    9.2.1  Mergers; Consolidations; Acquisitions............................40
    9.2.2  Loans............................................................40
    9.2.3  Total Indebtedness...............................................41
    9.2.4  Affiliate Transactions...........................................41
    9.2.5  Limitation on Liens..............................................41
    9.2.6  Subordinated Debt................................................42
    9.2.7  Distributions....................................................42
    9.2.8  Intentionally Omitted............................................42
    9.2.9  Disposition of Assets............................................42
    9.2.10  Stock of Subsidiaries...........................................43
    9.2.11  Bill-and-Hold Sales, Etc........................................43
    9.2.12  Restricted Investment...........................................43
    9.2.13  Intentionally Omitted...........................................43
    9.2.14  Tax Consolidation...............................................43

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<PAGE>

    9.2.15  Business Locations..............................................43
    9.2.16  Guaranties......................................................43
    9.2.17  Adverse Transactions............................................43
    9.2.18  Subsidiaries....................................................44
    9.2.19  Change of Business..............................................44
    9.2.20  Name of Borrowers...............................................44
    9.2.21  Use of Agent's of any Lender's Name.............................44
    9.2.22  Margin Securities...............................................44
  9.3  SPECIFIC FINANCIAL COVENANTS.........................................44
    9.3.1  Fixed Charge Coverage Ratio......................................44
    9.3.2   Minimum Net Worth...............................................44

SECTION 10.  CONDITIONS PRECEDENT...........................................45

  10.1  CONDITIONS PRECEDENT TO INITIAL CREDIT EXTENSIONS...................45
    10.1.1  Documentation...................................................45
    10.1.2  No Default......................................................45
    10.1.3  Other Loan Documents............................................45
    10.1.4  Availability....................................................45
    10.1.5  Corporate Documents.............................................45
    10.1.6  Borrowing Notice................................................45
    10.1.7  Opinions of Counsel to the Borrowers............................45
    10.1.8  Notes...........................................................45
    10.1.9  Repayment of Existing Indebtedness..............................46
    10.1.10  No Adverse Litigation or Proceeding............................46
    10.1.11  Consents, Etc..................................................46
    10.1.12  Payment of Fees................................................46
    10.1.13  Capital Structure..............................................46
    10.1.14  Due Diligence..................................................46
    10.1.15  Labor Relations................................................46
    10.1.16  Financial Statements...........................................47
    10.1.17  Cash Management................................................47
    10.1.18  Satisfaction of Conditions in Other Loan Documents.............47
    10.1.19  No Material Adverse Change.....................................47
    10.1.20  Insurance......................................................47
    10.1.21  Other Documents................................................47
  10.2. CONDITIONS PRECEDENT TO ALL CREDIT EXTENSIONS.......................47
    10.2.1   No Defaults....................................................47
    10.2.2   Representations and Warranties.................................47
    10.2.3   No Litigation..................................................48
    10.2.4   No Material Adverse Effect.....................................48

SECTION 11.  EVENTS OF DEFAULT; RIGHTS AND REMEDIES ON DEFAULT..............48

  11.1  EVENTS OF DEFAULT...................................................48
    11.1.1  Payment of Notes................................................48
    11.1.2  Payment of Other Obligations....................................48
    11.1.3  Misrepresentations..............................................48
    11.1.4  Breach of Specific Covenants....................................48
    11.1.5  Breach of Other Covenants.......................................48
    11.1.6  Default Under Security Documents/Other Agreements...............48
    11.1.7  Other Defaults..................................................49
    11.1.8  Uninsured Losses................................................49
    11.1.9  Adverse Changes.................................................49
    11.1.10  Insolvency and Related Proceedings.............................49
    11.1.11  Business Disruption; Condemnation..............................49
    11.1.12  Fundamental Change.............................................49

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    11.1.13  ERISA..........................................................50
    11.1.14  Challenge to Agreement.........................................50
    11.1.15  Repudiation of or Default Under Guaranty Agreement.............50
    11.1.16  Criminal Forfeiture............................................51
    11.1.17  Judgments......................................................51
  11.2  ACCELERATION OF THE OBLIGATIONS.....................................51
  11.3  OTHER REMEDIES......................................................51
  11.4  REMEDIES CUMULATIVE.................................................53

SECTION 12.  AGENT..........................................................53

  12.1  APPOINTMENT, POWERS AND IMMUNITIES..................................54
    12.1.1  Duties; Responsibilities........................................54
    12.1.2  Recitals, Statements, Presentations, Warranties.................54
    12.1.3  Litigation; Collection Proceedings..............................54
    12.1.4  Actions or Omissions............................................54
  12.2  RELIANCE BY AGENT...................................................54
  12.3  DEFAULTS............................................................54
  12.4  RIGHTS AS A LENDER..................................................55
  12.5  INDEMNIFICATION.....................................................55
  12.6  NON-RELIANCE ON AGENT AND OTHER LENDERS.............................55
  12.7  FAILURE TO ACT......................................................56
  12.8  RESIGNATION OR REMOVAL OF AGENT.....................................56
  12.9  CONSENTS UNDER OTHER LOAN DOCUMENTS.................................57
  12.10  ASSIGNMENTS AND PARTICIPATIONS.....................................57
    12.10.1  Borrowers......................................................57
    12.10.2  Lenders........................................................57
    12.10.3  Participants...................................................58
    12.10.4  Additional Permitted Assignments and Participations............58
    12.10.5  Information....................................................58
    12.10.6  No Assignment to Borrowers or Affiliates.......................58

SECTION 13.  MISCELLANEOUS..................................................58

  13.1  POWER OF ATTORNEY...................................................58
  13.2  INDEMNITY...........................................................59
  13.3  MODIFICATION OF AGREEMENT...........................................60
  13.4  SEVERABILITY........................................................61
  13.5  SUCCESSORS AND ASSIGNS..............................................61
  13.6  CUMULATIVE EFFECT; CONFLICT OF TERMS................................61
  13.7  EXECUTION IN COUNTERPARTS...........................................61
  13.8  NOTICE..............................................................61
  13.9  CREDIT INQUIRIES....................................................62
  13.10  TIME OF ESSENCE....................................................62
  13.11  JOINT AND SEVERAL LIABILITY........................................62
  13.12  SURETYSHIP WAIVERS AND CONSENTS....................................63
  13.13  CONTRIBUTION AGREEMENT.............................................65
  13.14  ENTIRE AGREEMENT...................................................65
  13.15  INTERPRETATION.....................................................66
  13.16  GOVERNING LAW; CONSENT TO FORUM....................................66
  13.17  WAIVERS BY BORROWERS...............................................67
  13.18  WAIVER.............................................................67

13.19  PREJUDGEMENT REMEDIES................................................68

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

                         UNITED NATURAL FOODS, INC. AND
                         ITS SUBSIDIARIES, as Borrowers

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

               FLEET CAPITAL CORPORATION, as Administrative Agent
              CITIZENS BANK OF MASSACHUSETTS, as Syndication Agent
             U.S. BANK NATIONAL ASSOCIATION, as Documentation Agent
                       FLEET SECURITIES, INC., as Arranger
                        THE FINANCIAL INSTITUTIONS PARTY

                      HEREBY FROM TIME TO TIME, as Lenders

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

                           LOAN AND SECURITY AGREEMENT

                             Dated: August 31, 2001

                                 $150,000,000.00

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

                                       -1-
<PAGE>

                     [LOGO] Fleet Capital
                            A FleetBoston Financial Company

                           LOAN AND SECURITY AGREEMENT

      THIS LOAN AND SECURITY AGREEMENT is made this 31st day of August, 2001, by
and among UNITED NATURAL FOODS, INC., a Delaware corporation with its chief
executive office and principal place of business located at 260 Lake Road,
Dayville, Connecticut 06241 ("UNF"), MOUNTAIN PEOPLE'S WAREHOUSE INCORPORATED, a
California corporation with its chief executive office and principal place of
business located at 12745 Earhart Avenue, Auburn, California 95602 ("MPW"),
NUTRASOURCE, INC., a Washington corporation with its chief executive office and
principal place of business located at 12745 Earhart Avenue, Auburn, California
95602 ("NutraSource"), RAINBOW NATURAL FOODS, INC., a Colorado corporation with
its chief executive office and principal place of business located at 260 Lake
Road, Dayville, Connecticut 06241 ("Rainbow"), STOW MILLS, INC., a Vermont
corporation with its chief executive office and principal place of business
located at 70 Stow Drive, Chesterfield, New Hampshire 03443 ("SMI"), UNITED
NATURAL FOODS PENNSYLVANIA, INC., a Pennsylvania corporation with its chief
executive office and principal place of business located at 70 Stowe Drive,
Chesterfield, New Hampshire 03443 ("UNFPA" and together with UNF, MPW,
NutraSource, Rainbow, SMI, and UNFPA the "Borrowers"); each of the Lenders
identified under the caption "Lenders" on the signature pages hereto or that may
hereafter become a "Lender" pursuant to Section 12.10 hereof (together with its
successors and assigns, individually, a "Lender" and, collectively, the
"Lenders"); FLEET CAPITAL CORPORATION, a Rhode Island corporation with a place
of business located at 200 Glastonbury Boulevard, Glastonbury, Connecticut
06033, as the exclusive administrative and collateral agent for the Lenders (in
such capacity, together with any successors in such capacity, the
"Administrative Agent" or "Agent"); Citizens Bank of Massachusetts, with a place
of business at 53 State Street, Boston, Massachusetts 02109 as the syndication
agent (in such capacity, together with any successors (in such capacity, the
"Syndication Agent"); U.S. Bank National Association, with a place of business
at 950 17th Street, Suite 350, Denver, Colorado 80202 as the documentation agent
(in such capacity, together with any successors in such capacity, the
"Documentation Agent") and FLEET SECURITIES, INC., with a place of business at
590 Madison Avenue, 31st Floor, New York, New York 10022 as the exclusive
syndication arranger for the Lenders (in such capacity, together with any
successors in such capacity, the "Arranger"). Capitalized terms used in this
Agreement have the meanings assigned to them in Appendix A, General Definitions.

                                       -2-
<PAGE>

Accounting terms not otherwise specifically defined herein shall be construed in
accordance with GAAP consistently applied.

      WHEREAS, the Borrowers have requested that the Lenders extend credit to
the Borrowers in an aggregate principal or stated amount of up to ONE HUNDRED
FIFTY MILLION DOLLARS ($150,000,000); and

      WHEREAS, to induce the Lenders to extend such credit, the Borrowers, the
Lenders and the Agent propose to enter into this Agreement pursuant to which the
Lenders will make loans and otherwise extend credit to the Borrowers.

      NOW, THEREFORE, the parties hereto agree as follows:

SECTION 1. CREDIT FACILITY

Subject to the terms and conditions of, and in reliance upon the representations
and warranties made in, this Agreement and the other Loan Documents, each Lender
severally agrees to make its respective Pro Rata share of a Total Credit
Facility of up to ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000) available
upon Borrowers' request therefor, as follows:

            1.1 Revolving Credit Loans.

                  1.1.1 Loans and Reserves. Each Lender severally agrees, for so
long as no Default or Event of Default exists and subject to the terms of this
Agreement, to make Revolving Credit Loans to Borrowers from time to time, as
requested by Borrowers in the manner set forth in subsection 3.1.1 hereof, up to
a maximum principal amount at any time outstanding equal to such Lender's
Revolving Credit Commitment; provided, however, that Lenders shall have no
obligations to Borrowers whatsoever to make any Revolving Credit Loan if at the
time of the proposed funding thereof the aggregate principal amount of all of
the Revolving Credit Loans plus pending and requested Revolving Credit Loans
exceeds or would exceed, after giving effect to such request, the Borrowing Base
at such time minus the LC Amount and reserves, if any. Agent shall have the
right to establish reserves in such amounts, and with respect to such matters,
as Agent shall deem reasonably necessary or appropriate, against the amount of
Revolving Credit Loans which Borrowers may otherwise request under this
subsection 1.1.1, including, without limitation, with respect to (i) price
adjustments, damages, unearned discounts, returned products or other matters for
which credit memoranda are issued in the ordinary course of Borrowers' business;
(ii) shrinkage, spoilage and obsolescence of Inventory; (iii) slow moving
Inventory; (iv) other sums chargeable against Borrowers' Loan Account as
Revolving Credit Loans under any section of this Agreement; (v) amounts owing by
Borrowers to any Person to the extent secured by a Lien on, or trust over, any
Property of Borrowers including, without limitation pursuant to the Perishable
Agricultural Commodities Act (7 USC ss. 499 et seq.) and the Packers and
Stockyards Act (7 USC ss. 196 et seq.); and (vi) such other matters, events,
conditions or contingencies as to which Agent , in its reasonable credit
judgment, determine reserves should be established from time to time hereunder.
The Revolving Credit Loans shall be further evidenced

                                      -3-
<PAGE>

by Revolving Credit Notes issued to each Lender in the amount of their
respective Commitments and shall be secured by all of the Collateral.

                  1.1.2 Borrowings. Borrowers shall give the Agent notice of
each borrowing hereunder, and the Agent shall promptly give each Lender notice
thereof, each as provided in Section 3.1 hereof.

                  1.1.3 Use of Proceeds. The Revolving Credit Loans shall be
used solely to refinance the existing Indebtedness of Borrowers under the
Amended and Restated Loan and Security Agreement dated as of February 26, 1996,
as amended, by and among Borrowers, Fleet Capital Corporation, First Union
National Bank and Bank of America, N.A. (successor in interest to Nations Bank,
N.A.) (the "Existing Loan Agreement") and for Borrowers' general operating
capital needs, and for other general corporate purposes, in a manner consistent
with the provisions of this Agreement and all applicable laws.

            1.2 Letters of Credit; LC Guaranties. FCC agrees, for so long as no
      Default or Event of Default exists, subject to the terms of this Agreement
      and if requested by Borrowers, to (i) issue, or cause to be issued by its
      Affiliates, Letters of Credit for the account of Borrowers or (ii) execute
      LC Guaranties by which its Affiliates shall guaranty the payment or
      performance by Borrowers of its reimbursement obligations with respect to
      Letters of Credit and letters of credit issued for Borrowers' account by
      other Persons in support of Borrowers' obligations (other than obligations
      for the repayment of Money Borrowed), provided that the LC Amount at any
      time shall not exceed TEN MILLION DOLLARS ($10,000,000). No Standby Letter
      of Credit may have an expiration date that is later than the earlier of
      (i) 365 days after its date of issuance or (ii) the Maturity Date and no
      Commercial Letter of Credit may have an expiration date that is later than
      the earlier of (i) 180 days after its date of issuance or (ii) the
      Maturity Date. Any amounts paid by FCC under any LC Guaranty or in
      connection with any Letter of Credit shall be treated as Revolving Credit
      Loans or SwingLine Loans, as the case may be, shall be secured by all of
      the Collateral and shall bear interest and be payable at the same rate and
      in the same manner as Revolving Credit Loans or SwingLine Loans, as the
      case may be. Borrowers jointly and severally agree to reimburse FCC for
      drawings under any Letter of Credit or LC Guaranty and the amounts of all
      other liabilities and obligations payable in connection therewith on the
      same Business Day irrespective of any claim, set off, defense or other
      right any or all the Borrowers may have or assert against the issuer
      thereof, FCC, any Lender or any other Person. The obligation of Borrowers
      to reimburse FCC for any payment made by FCC under any Letter of Credit or
      LC Guaranty shall be absolute, unconditional, irrevocable and joint and
      several and shall be paid without regard to any lack of validity or
      enforceability of any Letter of Credit.

            1.3 LC Amount Participations.

                  1.3.1 Purchase of Participations. Immediately upon the
issuance any Letter of Credit or LC Guaranty, each Lender (other than FCC) shall
be deemed to have irrevocably and unconditionally purchased and received from
FCC, without recourse or warranty, an undivided interest and participation equal
to the Pro Rata share of such Lender (a "Participating Lender")

                                      -4-
<PAGE>

in the LC Amount arising in connection with such Letter of Credit or LC Guaranty
and any security therefor or guaranty pertaining thereto, but in no event
greater than an amount which, when added to such Lender's Pro Rata share of all
Revolving Credit Loans and LC Amounts then outstanding, equals such
Participating Lender's Revolving Credit Commitment.

                  1.3.2 Reimbursement by Participating Lenders. If FCC makes any
payment under an LC Guaranty or Letter of Credit and Borrowers do not repay or
cause to be repaid the amount of such payment, FCC shall promptly notify Agent,
which shall promptly notify each Participating Lender, of such payment and each
Participating Lender shall promptly and unconditionally pay to Agent, for the
account of FCC, in Dollars in immediately available funds, the amount of such
Participating Lender's Pro Rata share of such payment, and Agent shall promptly
pay such amounts to FCC. If a Participating Lender does not make its Pro Rata
share of the amount of such payment available to Agent, such Lender agrees to
pay to Agent for the account of FCC, forthwith on demand, such amount together
with interest thereon at the Federal Funds Rate. The failure of any
Participating Lender to make available to Agent for the account of FCC such
Participating Lender's Pro Rata share of such payments shall not relieve any
other Participating Lender of its obligation hereunder to make available to
Agent its Pro Rata share of such payments, but no Participating Lender shall be
responsible for the failure of any other Participating Lender to make available
to Agent its Pro Rata share of such payments on the date such payment is to be
made.

                  1.3.3 Payments to Participating Lenders. Whenever FCC receives
a payment on account of the LC Amount, including any interest thereon, as to
which Agent has previously received payments from any Participating Lender for
the account of FCC, FCC shall promptly pay to each Participating Lender which
has made such payments, in immediately available funds, an amount equal to such
Participating Lender's Pro Rata share thereof.

                  1.3.4 Payment of Obligations. The obligation of each
Participating Lender to make payments to Agent for the account of FCC in
connection with FCC's payment under a Letter of Credit or LC Guaranty shall be
absolute, unconditional and irrevocable, not subject to any counterclaim,
setoff, qualification or exception whatsoever (other than for FCC's gross
negligence or willful misconduct), and shall be made in accordance with the
terms and conditions of this Agreement under all circumstances and irrespective
of whether or not any or all Borrowers may assert or have any claim for any lack
of validity or unenforceability of this Agreement or any of the other Loan
Documents; the existence of any Default or Event of Default; any draft,
certificate or other document presented under a Letter of Credit having been
determined to be forged, fraudulent, invalid or insufficient in any respect or
any statement therein being untrue or inaccurate in any respect; or the
existence of any setoff or defense any Borrower may have with respect to any of
the Obligations.

                  1.3.5 FCC Actions. Neither FCC, its Affiliates nor any of
their respective officers, directors, employees or agents shall be liable to any
Participating Lenders for any action taken or omitted to be taken under or in
connection with any Letter of Credit unless it is determined by a final and
nonappealable judgment or court order binding thereon, that such action or
omission constituted actual gross negligence or willful misconduct. FCC does not
assume any responsibility for any failure or delay in performance or breach by
any or all

                                      -5-
<PAGE>

Borrowers or any other Person of any of its obligations under any Letter of
Credit. FCC does not make to Participating Lenders any express or implied
warranty, representation or guaranty with respect to the Collateral, any Letter
of Credit or any Borrower. FCC shall not be responsible to any Participating
Lender for any recitals, statements, information, representations or warranties
contained in, or for the execution, validity, genuineness, effectiveness or
enforceability of or any of the documents relating to any Letter of Credit; the
validity, genuineness, enforceability, collectibility, value or sufficiency of
any of the Collateral or the perfection of any Lien therein; or the assets,
liabilities, financial condition, results of operations, business,
creditworthiness or legal status of any Borrower. In connection with its
administration of and enforcement of rights or remedies under any of the
documents relating to any Letter of Credit, FCC shall be entitled to act, and
shall be fully protected in acting upon, any certification, notice or other
communication in whatever form believed by FCC, in good faith, to be genuine and
correct and to have been signed or sent or made by a proper Person. FCC may
consult with and employ legal counsel, accountants and other experts to advise
it concerning its rights, powers and privileges under the documents relating to
any Letter of Credit and shall be entitled to act upon, and shall be fully
protected in any action taken in good faith reliance upon, any advice given by
such experts. FCC may employ agents and attorneys-in-fact in connection with any
matter relating to the documents relating to any Letter of Credit and shall not
be liable for the negligence, default or misconduct of any such agents or
attorneys-in-fact selected by FCC with reasonable care. FCC shall not have any
liability to any Participating Lender by reason of FCC's refraining to take any
action under any of the LC Documents without having first received written
instructions from the Required Lenders to take such action.

SECTION 2. INTEREST, FEES AND CHARGES

            2.1 Interest.

                  2.1.1 Rates of Interest. Interest shall accrue on the
Revolving Credit Loans in accordance with the terms of the Revolving Credit
Notes and this Agreement. Interest shall accrue on the principal amount of the
Base Rate Advances outstanding at the end of each day at a fluctuating rate per
annum equal to the Base Rate plus the Applicable Base Rate Margin. Interest
shall accrue on the principal amount of each of the LIBOR Advances outstanding
at the end of each day at a fixed rate per annum equal to LIBOR for the
applicable Interest Period plus the Applicable LIBOR Margin. The rate of
interest applicable to Base Rate Advances shall increase or decrease by an
amount equal to any increase or decrease in the Base Rate, effective as of the
opening of business on the day that any such change in the Base Rate occurs.
Interest shall be payable monthly in arrears on the first day of each month.

                  2.1.2 Default Rate of Interest. Upon and after the occurrence
of an Event of Default, and during the continuation thereof, the principal
amount of all Loans shall bear interest at a rate per annum equal to two percent
(2%) above the interest rate otherwise applicable thereto (the "Default Rate").

                  2.1.3 Maximum Interest. In no event whatsoever shall the
aggregate of all amounts deemed interest under the Revolving Credit Notes, or
this Agreement and charged or collected pursuant to the terms of this Agreement
exceed the highest rate permissible under any

                                      -6-
<PAGE>

law which a court of competent jurisdiction shall, in a final determination,
deem applicable hereto. If any provisions of this Agreement or the Notes, are in
contravention of any such law, such provisions shall be deemed amended to
conform thereto.

            2.2 Computation of Interest and Fees. Interest, Letter of Credit
      fees, LC Guaranty fees and unused line fees hereunder shall be calculated
      daily and shall be computed on the actual number of days elapsed over a
      year of 360 days. For the purpose of computing interest hereunder, all
      items of payment received by Agent for the account of each Lender shall be
      deemed applied by Agent for the account of each Lender on account of the
      Obligations (subject to final payment of such items) on the first (1st)
      Business Day after receipt by Agent for the account of each Lender of such
      items.

            2.3 Letter of Credit and LC Guaranty Fees. Borrowers shall pay to
      Agent for the Pro Rata account of each Lender for (a) all standby Letters
      of Credit and LC Guaranties of standby Letters of Credit, a per annum rate
      equal to one and one half percent (1.5%) of the aggregate face amount of
      such Letters of Credit and LC Guaranties outstanding from time to time
      during the term of this Agreement, and (b) all documentary Letters of
      Credit and LC Guaranties of documentary Letters of Credit, an amount equal
      to one percent (1%) of the face amount of such Letters of Credit and LC
      Guaranties plus for the account of the Letter of Credit issuer only all
      normal and customary charges associated with the issuance thereof, which
      fees and charges shall be deemed fully earned upon issuance of each such
      Letter of Credit or LC Guaranty, shall be due and payable, for standby
      Letter of Credit and LC Guaranties therefor, monthly in arrears and, for
      documentary Letters of Credit and LC Guaranties therefor, when advised
      upon issuance and amendment thereof, and shall not be subject to rebate or
      proration upon the termination of this Agreement for any reason.

            2.4 Unused Line Fee. Borrowers shall pay to Agent for the Pro Rata
      account of each Lender a fee equal to one quarter of one percent (.25%) of
      the average daily amount by which the Total Credit Facility exceeds the
      sum of the outstanding principal balance of the Revolving Credit Loans
      plus the LC Amount. The unused line fee shall be payable quarterly in
      arrears on the first day of each October, January, April, and July
      hereafter.

            2.5 Closing Fee. Borrowers shall pay to Agent for the Pro Rata
      account of each Lender a closing fee equal to one quarter of one percent
      (.25%) of the Total Credit Facility, which closing fee shall be deemed to
      be fully earned and payable upon the making of the Initial Revolving
      Credit Loans hereunder.

            2.6 Audit and Appraisal Fees. Borrowers shall pay to Agent for the
      account of Agent all reasonable audit and appraisal fees and expenses
      incurred by Agent with respect to third parties retained by Agent to
      conduct audits and appraisals or, if such audits and appraisals are
      conducted by the Agent's personnel, in accordance with Agent's current
      schedule of reasonable fees in effect from time to time in connection with
      audits and appraisals of Borrowers' books and records and such other
      matters as Agent shall deem appropriate, plus all out-of-pocket expenses
      incurred by Agent in connection with such audits and appraisals. Audit
      fees shall be payable on the first day of the month following the date of
      issuance by Agent of a request for payment thereof to Borrowers.

                                      -7-
<PAGE>

            2.7 Reimbursement of Expenses. If, at any time or times regardless
      of whether or not an Event of Default then exists, Agent incurs legal or
      accounting expenses or any other costs or out-of-pocket expenses in
      connection with (i) the negotiation and preparation of this Agreement or
      any of the other Loan Documents, any amendment of or modification of this
      Agreement or any of the other Loan Documents, or any sale or attempted
      sale of any interest herein to any Lender; (ii) the administration of this
      Agreement or any of the other Loan Documents and the transactions
      contemplated hereby and thereby; (iii) any litigation, contest, dispute,
      suit, proceeding or action (whether instituted by Agent, any Lender,
      Borrowers or any other Person) in any way relating to the Collateral, this
      Agreement or any of the other Loan Documents or Borrowers' affairs; (iv)
      any attempt to enforce any rights of any Agent or Lender against Borrowers
      or any other Person which may be obligated to such Lender by virtue of
      this Agreement or any of the other Loan Documents, including, without
      limitation, the Account Debtors; or (v) any attempt to inspect, verify,
      protect, preserve, restore, collect, sell, liquidate or otherwise dispose
      of or realize upon the Collateral; then all such reasonable legal and
      reasonable accounting expenses, other costs and out of pocket expenses of
      such Agent shall be charged to Borrowers. After the occurrence and during
      the continuance of an Event of Default, if any of the costs and expenses
      described in the preceding sentence are incurred by any Lender, all such
      costs and expenses shall be charged to Borrowers. All amounts chargeable
      to Borrowers under this Section 2.7 shall be Obligations secured by all of
      the Collateral, shall be payable on demand to Agent or each such Lender,
      as the case may be, and shall bear interest from the date such demand is
      made until paid in full at the rate applicable to Base Rate Advances from
      time to time. Borrowers shall also reimburse Agent for expenses incurred
      by Agent in its administration of the Collateral to the extent and in the
      manner provided in Section 7 hereof.

            2.8 Bank Charges. Borrowers shall pay to Agent or Lender, on demand,
      any and all fees, costs or expenses which Agent or any Lender pays to a
      bank or other similar institution (including, without limitation, any fees
      paid by Agent to any Lender) arising out of or in connection with (i) the
      forwarding to Borrowers or any other Person on behalf of Borrowers, by
      Agent, of Loans made by Lenders pursuant to this Agreement and the
      forwarding by Agent to Lenders of payments on Loans pursuant to this
      Agreement and (ii) the depositing for collection, by Agent , of any check
      or item of payment received or delivered to Agent on account of the
      Obligations.

            2.9 Agent and Arranger Fee Letter. Borrowers shall pay to the Agent
      and the Arranger the fees payable thereto pursuant to the fee letter
      therewith.

SECTION 3. LOAN ADMINISTRATION

            3.1 Manner of Borrowing Revolving Credit Loans. Borrowings under the
      credit facility established pursuant to Section 1 hereof shall be as
      follows:

                  3.1.1 Loan Requests. A request for a Revolving Credit Loan
shall be made, or shall be deemed to be made, in the following manner: (i)
Borrowers may give Agent notice of their intention to borrow, in which notice
Borrowers shall specify the amount of the proposed

                                      -8-
<PAGE>

borrowing and the proposed borrowing date, no later than 1:00 p.m. (Eastern
Time) on the Business Day prior to the proposed borrowing date and Agent will
promptly advise Lenders of such notice, provided, however, that no such request
may be made at a time when there exists a Default or an Event of Default; and
(ii) the becoming due of any amount required to be paid under this Agreement,
whether as interest or for any other Obligation, shall be deemed irrevocably to
be a request for a Revolving Credit Loan on the due date in the amount required
to pay such interest or other Obligation. As an accommodation to Borrowers,
Agent may permit telephonic or electronic requests for loans and electronic
transmittal of instructions, authorizations, agreements or reports to Agent by
Borrowers. Unless Borrowers specifically direct Agent in writing not to accept
or act upon telephonic or electronic communications from Borrowers, neither
Agent nor any Lender shall have any liability to Borrowers for any loss or
damage suffered by Borrowers as a result of Agent's or any Lender's honoring of
any requests, execution of any instructions, authorizations or agreements or
reliance on any reports communicated to them telephonically or electronically
and purporting to have been sent to Agent or Lenders by Borrowers unless it is
determined by a final and nonappealable judgment or court order binding on the
Agent and Lenders that such loss or damage was solely the result of the gross
negligence or willful misconduct of Agent. Neither Agent nor any Lender shall
have any duty to verify the origin of any such communication or the authority of
the person sending it.

                  3.1.2 Fundings by Lenders. Subject to its receipt of notice
from Agent of a borrowing notice as provided in Section 3.1.1 (except in the
case of a deemed request by a Borrower for a Revolving Credit Loan as provided
in Sections 3.1.1(ii) or 3.1.3(ii) hereof, in which event no borrowing notice
need be submitted), each Lender shall timely honor its Commitment by funding its
Pro Rata share of each borrowing of Revolving Credit Loans that is properly
requested by a Borrower and that such Borrower is entitled to receive under the
Loan Agreement. Agent shall notify Lenders of each borrowing notice by 3:00 p.m.
(Eastern Time) on the Business Day prior to the proposed funding date (in the
case of Base Rate Advances) or by 3:00 p.m. (Eastern Time) at least three (3)
Business Days before the proposed funding date (in the case of LIBOR Advances).
Each Lender shall deposit with Agent an amount equal to its Pro Rata share of
the Revolving Credit Loan requested by such Borrower at Agent's designated
account in immediately available funds not later than 1:00 p.m. (Eastern Time)
on the Business Day next following the date of the notice of the funding of such
Revolving Credit Loan, unless Agent's notice to Lenders is received after 3:00
p.m. (Eastern Time) on the proposed funding date of a Base Rate Advance, in
which event Lenders shall deposit with Agent their respective Pro Rata shares of
the requested Loan on or before 1:00 p.m. (Eastern Time) of the second (2nd)
Business Day following the date of the notice of the funding of such Revolving
Credit Loan. Subject to its receipt of such amounts from Lenders, Agent shall,
provided it has not received notice from a Lender that one or more of the
applicable conditions set forth in Section 10 is not satisfied, make the
proceeds of the Revolving Credit Loans received by it available to Borrowers by
disbursing such proceeds as provided in Section 3.1.4 hereof. Unless Agent shall
have been notified in writing by a Lender prior to the proposed time of funding
that such Lender does not intend to deposit with Agent an amount equal such
Lender's Pro Rata share of the requested Revolving Credit Loan, Agent may assume
that such Lender has deposited or promptly will deposit its share with Agent and
Agent may in its discretion disburse a corresponding amount to such Borrower on
the applicable funding date. If a Lender's Pro Rata share of such Revolving

                                      -9-
<PAGE>

Credit Loan is not in fact deposited with Agent, then, if Agent has disbursed to
such Borrower an amount corresponding to such share, then such Lender agrees to
pay, and in addition Borrowers jointly and severally agree to repay, to Agent
forthwith on demand such corresponding amount, together with interest thereon,
for each day from the date such amount is disbursed by Agent to or for the
benefit of such Revolving Credit Loan until the date such amount is paid or
repaid to Agent, (a) in the case of Borrowers, at the interest rate applicable
to such Loan and (b) in the case of such Lender, at the Federal Funds Rate. If
such Lender repays to Agent such corresponding amount, such amount so repaid
shall constitute a Revolving Credit Loan, and if both such Lender and Borrowers
shall have repaid such corresponding amount, Agent shall promptly return to
Borrowers such corresponding amount.

                  3.1.3 Settlement and SwingLine Loans.

                        (i) In order to facilitate the administration of the
                  Revolving Credit Loans under this Agreement, Lenders agree
                  (such agreement shall not be for the benefit of or enforceable
                  by any Borrower) that settlement among them with respect to
                  the Revolving Credit Loans may take place on a periodic basis
                  on dates determined from time to time by Agent (each a
                  "Settlement Date"), which may occur before or after the
                  occurrence or during the continuance of a Default or Event of
                  Default and whether or not all of the conditions set forth in
                  Section 10 of this Agreement have been met, provided that
                  Agent has not received notice from a Lender that one or more
                  of the conditions set forth in Section 10 is not satisfied. On
                  each Settlement Date, payment shall be made by or to each
                  Lender in the manner provided herein and in accordance with
                  the settlement report delivered by Agent to Lenders with
                  respect to such Settlement Date so that, as of each Settlement
                  Date and after giving effect to the transaction to take place
                  on such Settlement Date, each Lender shall hold its Pro Rata
                  share of all Revolving Credit Loans and participations in the
                  LC Amount then outstanding. Unless a Default or an Event of
                  Default exists or has occurred and is continuing, Agent shall
                  request settlement with the Lenders on a basis not less
                  frequently than once every five (5) Business Days.

                        (ii) Between Settlement Dates, Agent may request FCC to
                  advance, and FCC may, but shall in no event be obligated to,
                  advance to Borrowers out of FCC's own funds the entire
                  principal amount of any Revolving Credit Loans that are Base
                  Rate Advances requested or deemed requested pursuant to this
                  Agreement (any such Revolving Credit Loan funded exclusively
                  by FCC being referred to as a "SwingLine Loan") provided that
                  the aggregate principal amount of SwingLine Loans outstanding
                  at any time shall not exceed Ten Million Dollars
                  ($10,000,000.00) (the "SwingLine Loan Ceiling"). Each
                  SwingLine Loan shall constitute a Revolving Credit Loan
                  hereunder and shall be subject to all of the terms, conditions
                  and security applicable to other Revolving Credit Loans,
                  except that all SwingLine Loans shall be made as Base Rate
                  Advances only and all payments thereon shall be payable to FCC
                  solely for its own account. The obligation of Borrowers to
                  repay such SwingLine Loans to FCC shall be evidenced by the
                  records of FCC and the SwingLine Note. Agent shall not

                                      -10-
<PAGE>

                  request FCC to make any SwingLine Loan if (A) Agent shall have
                  received written notice from any Lender that one or more of
                  the applicable conditions precedent set forth in Section 10
                  hereof will not be satisfied on the requested funding date for
                  the applicable Loan or (B) Agent has knowledge that the
                  requested Revolving Credit Loans would exceed the amount of
                  Availability on the funding date. Except as it may be notified
                  by the Agent and the actual knowledge of its officers that are
                  directly responsible for the management of the Loans with
                  Borrowers, FCC shall not otherwise be required to determine
                  whether the applicable conditions precedent set forth in
                  Section 10 hereof have been satisfied or the requested
                  Revolving Credit Loan would exceed the amount of Availability
                  on the funding date applicable thereto prior to making, in its
                  sole discretion, any SwingLine Loan. On each Settlement Date,
                  or, if earlier, upon demand by Agent or FCC for payment
                  thereof, the then outstanding SwingLine Loans shall be
                  immediately due and payable. Borrowers shall be deemed to have
                  requested Revolving Credit Loans to be made on each Settlement
                  Date in the amount of all outstanding SwingLine Loans and the
                  proceeds of such Revolving Credit Loans shall be applied to
                  the repayment of such SwingLine Loans. Agent shall notify the
                  Lenders of the outstanding balance of Revolving Credit Loans
                  prior to 1:00 p.m. (Eastern Time) on each Settlement Date and
                  each Lender shall deposit with Agent an amount equal to its
                  Pro Rata share of the amount of Revolving Loans deemed
                  requested in immediately available funds not later than 4:00
                  p.m. (Eastern Time) on such Settlement Date, and without
                  regard to whether any Default or Event of Default exists or
                  any of the conditions in Section 10 are not satisfied. If any
                  SwingLine Loan is not repaid on the due date thereof, then on
                  the second Business Day after FCC's request each Lender (other
                  than FCC) shall purchase a participating interest in such
                  SwingLine Loan in an amount equal to its Pro Rata share of
                  such SwingLine Loan by transferring to FCC, in immediately
                  available funds, the amount of such participation, without
                  duplication for any payment previously made. The proceeds of
                  SwingLine Loans may be used solely for purposes for which
                  Revolving Credit Loans generally may be used in accordance
                  with Section 1.1.3 hereof. If any amounts received by FCC in
                  respect of any SwingLine Loans are later required to be
                  returned or repaid by FCC to any or all Borrowers or any other
                  Guarantor or their respective representatives or
                  successors-in-interest, whether by court order, settlement or
                  otherwise, the other Lenders shall, upon demand by FCC with
                  notice to Agent, pay to Agent for the account of FCC and Agent
                  shall, upon receipt thereof, pay to FCC, an amount equal to
                  each other Lender's Pro Rata share of all such amounts
                  required to be returned by FCC.

                  3.1.4 Disbursement. Borrowers hereby irrevocably authorize
Agent to disburse the proceeds of each Revolving Credit Loan requested, or
deemed to be requested, pursuant to subsections 3.1.1 and 3.1.5 as follows: (i)
the proceeds of each Revolving Credit Loan requested under subsection 3.1.1(i)
shall be disbursed by Agent in lawful money of the United States of America in
immediately available funds, in the case of the initial borrowing, in accordance
with the terms of the written disbursement letter from Borrowers, and in the
case of each subsequent

                                      -11-
<PAGE>

borrowing, by wire transfer to such bank account as may be agreed upon by
Borrowers and Agent from time to time or elsewhere if pursuant to a written
direction from Borrowers; and (ii) the proceeds of each Revolving Credit Loan
requested under subsections 3.1.1(ii) or 3.1.5 shall be disbursed by Agent by
way of direct payment of the relevant interest or other Obligation.

                  3.1.5 Authorization. Borrowers hereby irrevocably authorize
Agent, in Agent's sole discretion, to advance to Borrowers, and to charge to
Borrowers' Loan Account hereunder as a Base Rate Advance, a sum sufficient to
pay all interest accrued on the Obligations during the immediately preceding
month and to pay all costs, fees and expenses at any time owed by Borrowers to
Agent or any Lender hereunder.

                  3.1.6 LIBOR Advances. Notwithstanding the provisions of
subsection 3.1.1, in the event Borrowers desire to obtain a LIBOR Advance,
Borrowers shall give Agent prior, written, irrevocable notice no later than
11:00 A.M. Eastern Time on the third (3rd) Business Day prior to the requested
borrowing date specifying (i) Borrowers' election to obtain a LIBOR Advance,
(ii) the date of the proposed borrowing (which shall be a Business Day) and
(iii) the amount to be borrowed, which amount shall be in a minimum principal
amount of $1,000,000 and may increase in integral multiples of $1,000,000. In no
event shall Borrowers be permitted to have outstanding at any one time LIBOR
Advances with more than eight (8) different Interest Periods.

                  3.1.7 Conversion of Base Rate Advances. Provided that no
Default or Event of Default has occurred which is then continuing, Borrowers
may, on any Business Day, convert any Base Rate Advance into a LIBOR Advance. If
Borrowers desire to convert a Base Rate Advance, Borrowers shall give Agent not
less than three (3) Business Days' prior written notice (prior to 11:00 A.M.
Eastern Time on such Business Day), specifying the date of such conversion and
the amount to be converted. Each conversion into or conversion of a LIBOR
Advance shall be in a minimum principal amount of $1,000,000 and may increase in
integral multiples of $1,000,000 in excess thereof. After giving effect to any
conversion of Base Rate Advances to LIBOR Advances, Borrowers shall not be
permitted to have outstanding at any one time LIBOR Advances with more than
eight (8) different Interest Periods.

                  3.1.8 Continuation of LIBOR Advances. Borrowers shall have the
right on three (3) Business Days' prior irrevocable written notice given to
Agent by Borrowers (prior to 11:00 A.M. Eastern Time on such Business Day),
subject to the provisions hereof, to continue any LIBOR Advance into a
subsequent Interest Period of the same or a different permitted duration, in
each case subject to the satisfaction of the following conditions:

                        (i) in the case of a continuation of less than all LIBOR
                  Advances, the LIBOR Advances continued shall each be in a
                  minimum principal amount of $1,000,000 and may increase in
                  integral multiples of $1,000,000; and

                        (ii) no LIBOR Advance (or portion thereof) may be
                  continued as a LIBOR Advance if a Default has occurred which
                  is then continuing or if, after giving effect to such
                  continuation, Borrowers shall have outstanding more than eight
                  (8) separate LIBOR Advances in the aggregate.

                                      -12-
<PAGE>

      If Borrowers shall fail to give timely notice of its election to continue
any LIBOR Advance or portion thereof as provided above, or if such continuation
shall not be permitted, such LIBOR Advance or portion thereof, unless such LIBOR
Advance shall be repaid, shall automatically be converted into a Base Rate
Advance at the end of the Interest Period then in effect with respect to such
LIBOR Advance.

                  3.1.9 Inability to Make LIBOR Advances. Notwithstanding any
other provision hereof, if any applicable law, treaty, regulation or directive,
or any change therein or in the interpretation or application thereof, shall
make it unlawful for any Lender (for purposes of this subsection 3.1.9, the term
"Lender" shall include the office or branch where any Lender or any corporation
or bank then controlling any Lender makes or maintains any LIBOR Advances) to
make or maintain its LIBOR Advances, or if with respect to any Interest Period,
Agent is unable to determine the LIBOR relating thereto, or adverse or unusual
conditions in, or changes in applicable law relating to, the London interbank
market make it, in the reasonable judgment of such Lender, impracticable to fund
therein any of the LIBOR Advances, or make the projected LIBOR unreflective of
the actual costs of funds therefor to such Lender, the obligation of such Lender
to make LIBOR Advances hereunder shall forthwith be suspended during the
pendency of such circumstances and Borrowers shall, if any affected LIBOR
Advances are then outstanding, promptly upon request from such Lender, convert
such affected LIBOR Advances into Base Rate Advances.

            3.2 Payments. The Obligations shall be payable as follows (in the
      event that the following provisions conflict with any notes or other
      instruments issued to evidence the Obligations, the following provisions
      shall govern and control):

                  3.2.1 Principal. Principal payable on account of Revolving
Credit Loans shall be payable by Borrowers to the Agent for the account of each
Lender immediately upon the earliest of (i) the receipt by the Agent or any
Lender or Borrower of any proceeds of any of the Collateral other than Equipment
permitted to be replaced under subsection 7.4.2(ii) hereof, to the extent of
said proceeds, (ii) the occurrence of an Event of Default which results in the
acceleration of the maturity and payment of the Obligations, or (iii)
termination of this Agreement pursuant to Section 5 hereof; provided, however,
that if an Overadvance shall exist at any time, Borrowers shall, on demand by
Agent, repay the Overadvance. Each payment (including principal prepayment) by
Borrowers on account of principal of the Revolving Credit Loans shall be applied
first to Base Rate Advances, then to LIBOR Advances.

                  3.2.2 Interest. Interest accrued on the Revolving Credit Loans
shall be due on the earliest of (i) the first calendar day of each month (for
the immediately preceding month), computed through the last calendar day of the
preceding month, (ii) the occurrence of an Event of Default which results in the
acceleration of the maturity and payment of the Obligations or (iii) termination
of this Agreement pursuant to Section 5 hereof.

                  3.2.3 Costs, Fees and Charges. Costs, fees and charges payable
pursuant to this Agreement shall be payable by Borrowers as and when provided in
Section 2 hereof or upon demand, to the Agent for the account of each Lender or
to any other Person designated by the Agent in writing.

                                      -13-
<PAGE>

                  3.2.4 Other Obligations. The balance of the Obligations
(exclusive of the Obligations set forth in subsections 3.2.1, 3.2.2 and 3.2.3
above) requiring the payment of money, if any, shall be payable by Borrowers to
the Agent for the account of each Lender or to such other Person as and when
provided in this Agreement, the Other Agreements or the Security Documents, or
on demand, whichever is later.

                  3.2.5 Prepayment of LIBOR Advances. Borrowers may prepay a
LIBOR Advance only upon at least three (3) Business Days prior written notice to
Agent (which notice shall be irrevocable), and any such prepayment shall occur
only on the last day of the Interest Period for such LIBOR Advance. Borrowers
shall pay to Agent, upon request of Agent, such amount or amounts as shall be
sufficient (in the reasonable opinion of Agent) to compensate Lenders for any
loss, cost, or expense incurred as a result of: (i) any payment of a LIBOR
Advance on a date other than the last day of the Interest Period for such Loan;
(ii) any failure by Borrowers to borrow a LIBOR Advance on the date specified by
Borrowers' written notice; or (iii) any failure by Borrowers to pay a LIBOR
Advance on the date for payment specified in Borrowers' written notice. Without
limiting the foregoing, Borrowers shall pay to Lenders a "yield maintenance fee"
in an amount computed as follows: the current rate for United States Treasury
securities (bills on a discounted basis shall be converted to a bond equivalent)
with a maturity date closest to the Interest Period chosen pursuant to the LIBOR
Advance as to which the prepayment is made, shall be subtracted from the LIBOR
in effect at the time of prepayment. If the result is zero or a negative number,
there shall be no yield maintenance fee. If the result is a positive number,
then the resulting percentage shall be multiplied by the amount of the principal
balance being prepaid. The resulting amount shall be divided by 360 and
multiplied by the number of days remaining in the Interest Period chosen
pursuant to the LIBOR Advance as to which the prepayment is made. Said amount
shall be reduced to present value calculated by using the above-referenced
United States Treasury securities rate and the number of days remaining in the
term chosen pursuant to the LIBOR Advance as to which prepayment is made. The
resulting amount shall be the yield maintenance fee due to Lenders upon the
prepayment of a LIBOR Advance. If by reason of an Event of Default, Lenders
elect to declare the Obligations to be immediately due and payable, then any
yield maintenance fee with respect to a LIBOR Advance shall become due and
payable in the same manner as though the Borrowers had exercised such right of
prepayment.

            3.3 Mandatory Prepayments.

                  3.3.1 Proceeds of Sale, Loss, Destruction or Condemnation of
Collateral. Except as provided in subsection 7.4.2 hereof, if any of the
Collateral is lost or destroyed or taken by condemnation, Borrowers shall pay to
Agent for the account of each Lender, unless otherwise agreed by Lenders, as and
when received by Borrowers and as a mandatory prepayment of the Revolving Loan,
as determined by Agent, a sum equal to the proceeds (including insurance
payments) received by Borrowers from such loss, destruction or condemnation.

            3.4 Application of Payments and Collections. All items of payment
      received by Agent for the account of each Lender by 12:00 noon, Eastern
      time, on any Business Day shall be deemed received on that Business Day.
      All items of payment

                                      -14-
<PAGE>

      received after 12:00 noon, Eastern time, on any Business Day shall be
      deemed received on the following Business Day. Borrowers irrevocably waive
      the right to direct the application of any and all payments and
      collections at any time or times hereafter received by Agent or Lenders
      from or on behalf of Borrowers, and Borrowers do hereby irrevocably agree
      that Agent and Lenders shall have the continuing exclusive right to apply
      and reapply any and all such payments and collections received at any time
      or times hereafter by Lenders or Agent against the Obligations, in such
      manner as Agent or Lenders may deem advisable, notwithstanding any entry
      by Agent or Lenders upon any of their respective books and records. If as
      the result of collections of Accounts as authorized by subsection 7.2.6
      hereof a credit balance exists in the Loan Account, such credit balance
      shall not accrue interest in favor of Borrowers, but shall be available to
      Borrowers at any time or times for so long as no Default or Event of
      Default exists.

            3.5 All Loans to Constitute One Obligation. The Loans and LC
      Guaranties shall constitute one general Obligation of Borrower, and shall
      be secured by Agent's Lien upon all of the Collateral.

            3.6 Loan Account. Agent on behalf of each Lender shall enter all
      Loans as debits to the Loan Account and shall also record in the Loan
      Account all payments made by Borrowers on any Obligations and all proceeds
      of Collateral which are finally paid to Agent for the account of each
      Lender, and may record therein, in accordance with customary accounting
      practice, other debits and credits, including interest and all charges and
      expenses chargeable to Borrowers under this Agreement and the other Loan
      Documents.

            3.7 Statements of Account. Agent will account to Borrowers monthly
      with a statement of Loans, charges and payments made pursuant to this
      Agreement, and such account rendered by Agent shall be deemed final,
      binding and conclusive upon Borrowers unless Agent is notified by
      Borrowers in writing to the contrary within thirty (30) days of the date
      each accounting is mailed to Borrowers. Such notice shall only be deemed
      an objection to those items specifically objected to therein.

            3.8 Increased Costs. If any law or any governmental or
      quasi-governmental rule, regulation, policy, guideline or directive
      (whether or not having the force of law) adopted after the date of this
      Agreement and having general applicability to all banks within the
      jurisdiction in which any Lender operates (excluding, for the avoidance of
      doubt, the effect of and phasing in of capital requirements or other
      regulations or guidelines passed prior to the date of this Agreement), or
      any interpretation or application thereof by any governmental authority
      charged with the interpretation or application thereof, or the compliance
      of any Lender therewith, shall:

                  (i) (1) subject any Lender to any tax with respect to this
            Agreement (other than (a) any tax based on or measured by net income
            or otherwise in the nature of a net income tax, including, without
            limitation, any franchise tax or any similar tax based on capital,
            net worth or comparable basis for measurement and (b) any tax
            collected by a withholding on payments and which neither is computed
            by reference to the net income of the payee nor is in the

                                      -15-
<PAGE>

            nature of an advance collection of a tax based on or measured by the
            net income of the payee) or (2) change the basis of taxation of
            payments to any Lender of principal, fees, interest or any other
            amount payable hereunder or under any Loan Documents (other than in
            respect of (a) any tax based on or measured by net income or
            otherwise in the nature of a net income tax, including, without
            limitation, any franchise tax or any similar tax based on capital,
            net worth or comparable basis for measurement and (b) any tax
            collected by a withholding on payments and which neither is computed
            by reference to the net income of the payee nor is in the nature of
            an advance collection of a tax based on or measured by the net
            income of the payee);

                  (ii) impose, modify or hold applicable any reserve (except any
            reserve taken into account in the determination of the applicable
            LIBOR), special deposit, assessment or similar requirement against
            assets held by, or deposits in or for the account of, advances or
            loans by, or other credit extended by, any office of any Lender,
            including (without limitation) pursuant to Regulation D of the Board
            of Governors of the Federal Reserve System; or

                  (iii) impose on any Lender or the London interbank market any
            other condition with respect to any Loan Document;

and the result of any of the foregoing is to increase the cost to any Lender of
making, renewing or maintaining Loans hereunder by an amount that Required
Lenders deem to be material or to reduce the amount of any payment (whether of
principal, interest or otherwise) in respect of any of the Loans by an amount
that Required Lenders deem to be material, then, in any such case, Borrowers
shall pay Agent for the account of each such Lender, upon demand and
certification not later than sixty (60) days following its receipt of notice of
the imposition of such increased costs, such additional amount as will
compensate any such Lender for such additional cost or such reduction, as the
case may be, to the extent such Lender has not otherwise been compensated, with
respect to a particular Loan, for such increased cost as a result of an increase
in the Base Rate or LIBOR. An officer of each such Lender shall determine the
amount of such additional cost or reduced amount using reasonable averaging and
attribution methods and shall certify the amount of such additional cost or
reduced amount to Agent and Borrowers, which certification shall include a
written explanation of such additional cost or reduction to Agent and Borrowers.
Such certification shall be conclusive absent manifest error. If any Lender
claims any additional cost or reduced amount pursuant to this Section 3.8, then
such Lender shall use reasonable efforts (consistent with legal and regulatory
restrictions) to designate a different lending office or to file any certificate
or document reasonably requested by Borrowers if the making of such designation
or filing would avoid the need for, or reduce the amount of, any such additional
cost or reduced amount and would not, in the sole discretion of Required
Lenders, be otherwise disadvantageous to such Lender.

            3.9 Basis for Determining Interest Rate Inadequate or Unfair. In the
      event that Agent shall have determined that:

                                      -16-
<PAGE>

                  (i) reasonable means do not exist for ascertaining the LIBOR
            for any Interest Period; or

                  (ii) Dollar deposits in the relevant amount and for the
            relevant maturity are not available in the London interbank market
            with respect to a proposed LIBOR Advance, or a proposed conversion
            of a Base Rate Advance into a LIBOR Advance; then

Agent shall give Borrowers prompt written, telephonic or electronic notice of
the determination of such effect. If such notice is given, (i) any such
requested LIBOR Advance shall be made as a Base Rate Advance, unless Borrowers
shall notify Agent no later than 10:00 A.M. (Eastern Time) two (2) Business Days
prior to the date of such proposed borrowing that the request for such borrowing
shall be canceled or made as an unaffected type (if any) of LIBOR Advance, and
(ii) any Base Rate Advance which was to have been converted to an affected type
of LIBOR Advance shall be continued as or converted into a Base Rate Advance,
or, if Borrowers shall notify Agent, no later than 10:00 A.M. (Eastern Time) two
(2) Business Days prior to the proposed conversion, shall be maintained as an
unaffected type (if any) of LIBOR Advance.

            3.10 Borrowers' Representative. Borrowers hereby irrevocably appoint
      UNF, and UNF agrees to act under this Agreement, as the agent and
      representative of itself and the other Borrowers for all purposes under
      this Agreement, including requesting Loans, selecting whether any Loan or
      portion thereof is to bear interest as a Base Rate Advance or a LIBOR
      Advance, and receiving account statements and other notices and
      communications to Borrowers (or any of them) from Agent or Lenders and
      sending notices to Agent or Lenders. Agent and Lenders may rely, and shall
      be fully protected in relying, on any notice of borrowing, or of
      conversion/continuation, disbursement instructions, reports, information
      or any other notice or communication made or given by UNF, whether in its
      own name, or on behalf of the Borrowers, and neither Agent nor any Lender
      shall have any obligation to make any inquiry or request any confirmation
      from or on behalf of any Borrower as to the binding effect on Borrowers of
      any such request, instruction, report, information, notice or
      communication, nor shall the joint and several character of Borrowers'
      liability for the Loans be affected, provided that the provisions of this
      Section 3.10 shall not be construed so as to preclude any Borrower from
      directly requesting Loans or taking other actions permitted to be taken by
      "a Borrower" hereunder. Agent and Lenders may maintain a single Loan
      Account in the name of UNF hereunder, and each Borrower expressly agrees
      to such arrangement and confirms that such arrangement shall have no
      effect on the absolute, unconditional and joint and several character of
      such Borrower's liability for the Obligations.

SECTION 4. PAYMENTS; PRO RATA TREATMENT; COMPUTATIONS; ETC

            4.1 Payments.

                  4.1.1 Payment of Principal and Interest. Except to the extent
otherwise provided in this Agreement, all payments of principal, interest, and
other amounts to be made by the Borrowers under this Agreement and the Notes,
and, except to the extent otherwise provided therein, all payments to be made by
the Borrowers under any other Loan Document, shall be

                                      -17-
<PAGE>

made in Dollars, in immediately available funds, without counterclaim or setoff
and free and without deduction or withholding for any taxes or any other
payments, to the Agent at account number 9369337579 at the Bank or at any other
account designated in writing by the Agent ("Payment Account"), not later than
1:00 p.m. Eastern Time on the date on which such payment shall become due (each
such payment made after such time on such due date to be deemed to have been
made on the next succeeding Business Day). Borrowers authorize the Agent to
debit such account for all such payments.

                  4.1.2 Agent Authorized To Debit Borrowers' Account. If any
payment owing to any Lender or Agent by Borrowers is not made when due (beyond
any applicable grace period), each Lender or Agent may (but shall not be
obligated to) debit the amount of any such payment to any ordinary deposit
account of such Borrowers with such Lender or Bank (with notice to such
Borrowers and the Agent).

                  4.1.3 Application of Payment. Borrowers shall, at the time of
making each payment under this Agreement or any Note for account of any Lender
specify to the Agent (which shall so notify the intended recipient(s) thereof)
the amount payable on the Loans, or other amounts payable by such Borrowers
hereunder to which such payment is to be applied (and in the event that the
Borrowers fail to so specify, or if an Event of Default has occurred and is
continuing, the Agent may distribute such payment to the Lenders for application
in such manner as it may determine to be appropriate).

                  4.1.4 Payment Received By Lender. Each payment received by the
Agent under this Agreement or any Note for account of any Lender shall be paid
by the Agent promptly to such Lender, in immediately available funds, for
account of such Lender's Applicable Lending Office for the Loan or other
Obligation in respect of which such payment is made.

                  4.1.5 No Right of Offset By Borrowers. All payments by the
Borrowers hereunder and under any of the other Loan Documents shall be made
without recoupment, setoff or counterclaim and free and clear of and without
deduction for any taxes, levies, imposts, duties, charges, fees, deductions,
withholdings, compulsory loans, restrictions or conditions of any nature now or
hereafter imposed or levied by any jurisdiction or any political subdivision
thereof or taxing or other authority therein unless the Borrowers are compelled
by law to make such deduction or withholding. If any such obligation is imposed
upon the Borrowers with respect to any amount payable by it hereunder or under
any of the other Loan Documents, the Borrowers will pay to the Agent, for the
account of the Lenders or (as the case may be) the Agent, on the date on which
such amount is due and payable hereunder or under such other Loan Document, such
additional amount in Dollars as shall be necessary to enable the Lenders or the
Agent to receive the same net amount which the Lenders or the Agent would have
received on such due date had no such obligation been imposed upon the
Borrowers. The Borrowers will deliver promptly to the Agent certificates or
other valid vouchers for all taxes or other charges deducted from or paid with
respect to payments made by the Borrowers hereunder or under such other Loan
Document.

                                      -18-
<PAGE>

            4.2 Pro Rata Treatment. Except to the extent otherwise provided
      herein:

                  (i) each borrowing of Loans from the Lenders shall be made
            from the Lenders, and each termination or reduction of the amount of
            the Revolving Credit Commitments shall be applied to the respective
            Revolving Credit Commitments of the Lenders, on a Pro Rata basis
            according to the amounts of their respective Revolving Credit
            Commitments;

                  (ii) except as otherwise provided in Section 3 hereof, LIBOR
            Advances having the same Interest Period shall be allocated on a Pro
            Rata basis among the Lenders according to the amounts of their
            respective Revolving Credit Commitments (in the case of the making
            of Loans) or their respective Revolving Credit Loans (in the case of
            conversions and continuations of Loans);

                  (iii) each payment or prepayment of principal of Revolving
            Credit Loans by any Borrower shall be made for account of the
            Lenders on a Pro Rata basis in accordance with the respective unpaid
            principal amounts of the Loans made to such Borrower held by them;
            and

                  (iv) each payment of interest on Revolving Credit Loans by any
            Borrower shall be made for account of the Lenders on a Pro Rata
            basis in accordance with the amounts of interest on such Loans then
            due and payable to the respective Lenders.

Notwithstanding anything to the contrary contained herein, to the extent there
shall then be outstanding any SwingLine Loans, and any sums shall be due and
payable thereunder, then the first priority of any payment for the account of
Borrowers (then owing any sum under one or more SwingLine Loans) received by
Agent or FCC at the time such payment is so received shall be to apply such
payment on account of the sums then due and owing on such SwingLine Loans, in
such order as the FCC shall determine.

            4.3 Allocation of Payments from Borrowers. All monies to be applied
      to the Obligations, whether such monies represent voluntary payments by
      any Borrower or any Guarantor or are received pursuant to demand for
      payment or realized from any disposition of Collateral, shall be allocated
      among Agent and such of the Lenders as are entitled thereto (and, with
      respect to monies allocated to Lenders, on a Pro Rata basis unless
      otherwise provided herein): (i) first, to Agent to pay principal and
      accrued interest on any portion of the Revolving Credit Loans which Agent
      may have advanced on behalf of any Lender in accordance with the terms of
      this Agreement and for which Agent has not been reimbursed by such Lender
      or Borrowers; (ii) second, to FCC to pay the principal and accrued
      interest on any portion of the SwingLine Loans outstanding, to be shared
      with Lenders that have acquired a participating interest in such SwingLine
      Loans; (iii) third, to FCC to pay the principal amount of and any accrued
      interest on any payment made by FCC under a Letter of Credit or LC
      Guaranty to the extent that FCC has not been reimbursed in full and has
      not received from each Participating Lender a participation payment as
      required by Section 1.3.2 hereof; (iv) fourth, to Agent and FCC to pay the
      amount of expenses that have not

                                      -19-
<PAGE>

      been reimbursed to Agent or FCC by Borrowers or Lenders, together with
      interest accrued thereon at the rate applicable to Revolving Credit Loans
      that are Base Rate Advances; (v) fifth, to Agent to pay any amount payable
      under the indemnification provisions hereof that has not been paid to
      Agent by Borrowers or Lenders and to Lenders on a Pro Rata basis for any
      amount payable under the indemnification provisions hereof that they have
      paid to Agent and any expenses that they have reimbursed to Agent,
      together with interest accrued thereon at the rate applicable to Revolving
      Credit Loans that are Base Rate Advances; (vi) sixth, to Agent to pay any
      fees due and payable to Agent, to the extent that Lenders have not been
      reimbursed by Borrowers therefor; (vii) seventh, to the Participating
      Lenders to pay principal and interest on their participations in the LC
      Amount outstanding (or, to the extent any of the LC Amount is contingent
      and an Event of Default then exists, deposited in a cash collateral
      account to provide security for the payment of the LC Amount); and (viii)
      eighth, to Lenders in payment of the accrued interest and unpaid principal
      in respect of the Revolving Credit Loans and any other Obligations then
      outstanding to be shared among Lenders on a Pro Rata basis, or on such
      other basis as may be agreed upon in writing by Lenders (which agreement
      or agreements may be entered into without notice to or the consent or
      approval of Borrowers). The allocations set forth in this Section 4.3 are
      solely to determine the rights and priorities of Agent and Lenders as
      among themselves and may be changed by Agent and Lenders without notice to
      or the consent or approval of Borrowers or any other Person.

            4.4 Non-Receipt of Funds by the Agent; Delinquent Lenders.

                  4.4.1 Non-Receipt of Funds. Unless the Agent shall have been
notified by a Lender or a Borrower (the "Payor") prior to the date on which the
Payor is to make payment to the Agent of (in the case of a Lender) the proceeds
of a Loan to be made by such Lender hereunder or (in the case of the Borrowers)
a payment to the Agent for account of one or more of the Lenders hereunder (such
payment being herein called the "Required Payment"), which notice shall be
effective upon receipt, that the Payor does not intend to make the Required
Payment to the Agent, the Agent may assume that the Required Payment has been
made and may, in reliance upon such assumption (but shall not be required to),
make the amount thereof available to the intended recipient(s) on such date;
and, if the Payor has not in fact made the Required Payment to the Agent and the
Agent has made the payment to the recipient(s), the recipient(s) of such payment
shall, on demand, repay to the Agent the amount so made available together with
interest thereon in respect of each day during the period commencing on the date
(the "Advance Date") such amount was so made available by the Agent until the
date the Agent recovers such amount at a rate per annum equal to the Federal
Funds Rate for such day and, if such recipient(s) shall fail promptly to make
such payment, the Agent shall be entitled to recover such amount, on demand,
from the Payor, together with interest as aforesaid, provided that if neither
the recipient(s) nor the Payor shall return the Required Payment to the Agent
within three (3) Business Days of the date of the notice from the Agent, then
the Payor and the recipient(s) shall each be obligated to pay interest on the
Required Payment as follows:

                        (i) if the Required Payment shall represent a payment to
                  be made by Borrowers to the Lenders, Borrowers and the
                  recipient(s) shall each be obligated retroactively to the
                  Advance Date to pay interest in respect of the Required

                                      -20-
<PAGE>

                  Payment at the Default Rate (without duplication of the
                  obligation of the Borrowers under Section 2.1 hereof to pay
                  interest on the Required Payment at the Default Rate), it
                  being understood that the return by the recipient(s) of the
                  Required Payment to the Agent shall not limit such obligation
                  of Borrowers under said Section 2.1 to pay interest at the
                  Default Rate in respect of the Required Payment; and

                        (ii) if the Required Payment shall represent proceeds of
                  a Loan to be made by the Lenders to Borrowers, the Payor and
                  Borrowers shall each be obligated retroactively to the Advance
                  Date to pay interest in respect of the Required Payment
                  pursuant to Section 2.1 hereof (without duplication of the
                  obligation of Borrowers under Section 2.1 hereof to pay
                  interest on the Required Payment), it being understood that
                  the return by Borrowers of the Required Payment to the Agent
                  shall not limit any claim Borrowers may have against the Payor
                  in respect of such Required Payment.

                  4.4.2 Delinquent Lenders. If for any reason any Lender shall
fail or refuse to abide by its obligations under this Loan Agreement, including,
without limitation, its obligation to make available to Agent its share of any
Revolving Credit Loans, expenses, or setoff (a "Delinquent Lender"), any
non-delinquent Lender shall have the right, but not the obligation, in its
respective, sole and absolute discretion, to acquire (x) for no cash
consideration (pro rata, based on the respective Commitments of those Lenders
electing to exercise such right) the Delinquent Lender's Commitment to fund
future Revolving Credit Loans; and (y) for consideration equal to the amount of
the outstanding Revolving Credit Loans from such Lender (pro rata, based on the
respective Commitments of those Lenders electing to exercise such right) the
Delinquent Lender's rights with respect to outstanding Revolving Credit Loans
(the rights purchased under clauses (x) and (y), the "Purchased Rights"), but
only if, in the aggregate, all of the Delinquent Lender's rights with respect to
outstanding Revolving Credit Loans and Commitments are acquired hereunder by one
or more non-delinquent Lender(s). Upon any such purchase of the pro rata share
of any Delinquent Lender's Purchased Rights, the Delinquent Lender's rights with
respect to outstanding Revolving Credit Loans, Commitment, share in future
Revolving Credit Loans, and rights under the Loan Documents with respect thereto
shall terminate on the day of purchase (other than indemnification rights that
survive termination of the Commitments under Section 13.2 hereof and rights to
receive accrued but unpaid interest and fees through the date of purchase), and
the Delinquent Lender shall promptly execute all documents reasonably requested
to surrender and transfer such interests (other than indemnification rights that
survive termination of the Commitments under Section 13.2 hereof and rights to
receive accrued but unpaid interest and fees through the date of purchase),
including, if so requested, a Notice of Assignment (provided that the assignment
fee in connection with such Notice of Assignment shall not be charged).

            4.5 Withholding Tax Exemption. At least five (5) Business Days prior
      to the first date on which interest or fees are payable hereunder for the
      account of any Lender, each Lender that is not incorporated under the laws
      of the United States or any state thereof agrees that it will deliver to
      Borrowers and Agent two (2) duly completed copies of United States
      Internal Revenue Service Form 1001 or 4224, certifying in either case that
      such

                                      -21-
<PAGE>

      Lender is entitled to receive payment under this Agreement and its Notes
      without deduction or withholding of any United States federal income
      taxes. Each Lender which so delivers a Form 1001 or 4224 further
      undertakes to deliver to Borrowers and Agent two (2) additional copies of
      such form (or a successor form) on or before the date that such form
      expires (currently, three (3) successive calendar years for Form 1001 and
      one (1) calendar year for Form 4224) or becomes obsolete or after the
      occurrence of any event requiring a change in the form so delivered by it,
      and such amendments thereto or extensions or renewals thereof as may be
      reasonably requested by Borrowers or Agent, in each case, certifying that
      such Lender is entitled to receive payments under this Agreement and its
      Notes without deduction or withholding of any United States federal income
      taxes, unless an event (including any change in treaty, law or regulation)
      has occurred prior to the date on which any such delivery would otherwise
      be required that renders all such forms inapplicable or that would prevent
      such Lender from duly completing and delivering any such form with respect
      to it and such Lender advises Borrowers and Agent that it is not capable
      or receiving payments without any deduction or withholding of United
      States federal income taxes.

SECTION 5. TERM AND TERMINATION

            5.1 Term of Agreement. Subject to Lenders' right to cease making
      Loans to Borrowers upon or after the occurrence of any Default or Event of
      Default or failure to satisfy one or more of the conditions precedent in
      Section 10 hereof, this Agreement shall be in effect for a period
      commencing on the date hereof, through and including June 30, 2005 (the
      "Maturity Date").

            5.2 Termination.

                  5.2.1 Termination by Lenders. This Agreement shall terminate
on the Maturity Date and Required Lenders may terminate this Agreement without
notice upon or after the occurrence of an Event of Default.

                  5.2.2 Termination by Borrowers. Upon at least ninety (90) days
prior written notice to Agent, Borrowers may, at their option, terminate this
Agreement; provided, however, no such termination shall be effective until
Borrowers have paid all of the Obligations in immediately available funds and
all Letters of Credit and LC Guaranties have expired or have been cash
collateralized to the satisfaction of Agent, FCC and the Required Lenders. Any
notice of termination given by Borrowers shall be irrevocable unless Agent and
the Required Lenders otherwise agree in writing, and Lenders shall have no
obligation to make any Loans and FCC shall have no obligation to issue or
procure any Letters of Credit or LC Guaranties on or after the termination date
stated in such notice. Borrowers may elect to terminate this Agreement in its
entirety only. No section of this Agreement or type of Loan available hereunder
may be terminated singly.

                  5.2.3 Effect of Termination. All of the Obligations shall be
immediately due and payable upon the Maturity Date or, if earlier, the
termination date stated in any notice of termination of this Agreement or upon
the action taken by the Required Lenders under subsection 5.2.1. All
undertakings, agreements, covenants, warranties and representations of

                                      -22-
<PAGE>

Borrowers contained in the Loan Documents shall survive any such termination and
Agent shall retain its Liens in the Collateral and all of its rights and
remedies under the Loan Documents for itself and the Pro Rata benefit of the
Lenders notwithstanding such termination until Borrowers have paid the
Obligations to Agent for the account of each Lender, in full, in immediately
available funds. Notwithstanding the payment in full of the Obligations, Agent
shall not be required to terminate its security interests in the Collateral
unless, with respect to any loss or damage Agent may incur as a result of
dishonored checks or other items of payment received by Agent from Borrowers or
any Account Debtor and applied to the Obligations, Agent shall, at its option,
(i) have received a written agreement, executed by Borrowers and by any Person
whose loans or other advances to Borrowers are used in whole or in part to
satisfy the Obligations, indemnifying Agent and Lenders from any such loss or
damage; or (ii) have retained such cash collateral and Liens thereon for such
period of time as Agent, in its reasonable discretion, may deem necessary to
protect Agent and Lenders from any such loss or damage.

SECTION 6. SECURITY INTERESTS

            6.1 Security Interest in Collateral. To secure the prompt payment
      and performance of all of the Obligations, Borrowers hereby grant to Agent
      for the benefit of itself as Agent and for the Pro Rata benefit of each
      Lender a continuing Lien upon all of each Borrower's assets, including all
      of the following Property and interests in Property of each Borrower,
      whether now owned or existing or hereafter created, acquired or arising
      and wheresoever located:

                  (i) Accounts;

                  (ii) Certificated Securities;

                  (iii) Chattel Paper;

                  (iv) Computer Hardware and Software and all rights with
            respect thereto, including, any and all licenses, options,
            warranties, service contracts, program services, test rights,
            maintenance rights, support rights, improvement rights, renewal
            rights and indemnifications, and any substitutions, replacements,
            additions or model conversions of any of the foregoing;

                  (v) Contract Rights;

                  (vi) Deposit Accounts;

                  (vii) Documents;

                  (viii) Equipment;

                  (ix) Financial Assets;

                  (x) Fixtures;

                                      -23-
<PAGE>

                  (xi) General Intangibles, including Payment Intangibles and
            Software;

                  (xii) Goods (including all of its Equipment, Fixtures and
            Inventory), and all accessions, additions, attachments,
            improvements, substitutions and replacements thereto and therefor;

                  (xiii) Instruments;

                  (xiv) Intellectual Property;

                  (xv) Inventory;

                  (xvi) Investment Property;

                  (xvii) money (of every jurisdiction whatsoever);

                  (xviii) Letter-of-Credit Rights;

                  (xix) Payment Intangibles;

                  (xx) Security Entitlements;

                  (xxi) Software;

                  (xxii) Supporting Obligations;

                  (xxiii) Uncertificated Securities; and

                  (xxiv) to the extent not included in the foregoing, all other
            personal property of any kind or description;

together with all books, records, writings, data bases, information and other
property relating to, used or useful in connection with, or evidencing,
embodying, incorporating or referring to any of the foregoing, and all Proceeds,
products, offspring, rents, issues, profits and returns of and from any of the
foregoing; provided that to the extent that the provisions of any lease or
license of Computer Hardware and Software or Intellectual Property expressly
prohibit (which prohibition is enforceable under applicable law) any assignment
thereof, and the grant of a security interest therein, Agent will not enforce
its security interest in Borrowers' rights under such lease or license (other
than in respect of the Proceeds thereof) for so long as such prohibition
continues, it being understood that upon request of Agent Borrowers will in good
faith use reasonable efforts to obtain consent for the creation of a security
interest in favor of Agent for the account of each Lender (and to Agent's
enforcement of such security interest for the account of each Lender) in
Borrower's rights under such lease or license.

                                      -24-
<PAGE>

            6.2 Other Collateral.

                  6.2.1 Commercial Tort Claims. Borrowers shall promptly notify
Agent in writing upon incurring or otherwise obtaining a Commercial Tort Claim
after the Closing Date against any third party and, upon request of Agent,
promptly enter into an amendment to this Agreement and do such other acts or
things deemed appropriate by Agent to give Agent, for the Pro Rata benefit of
the Lenders a security interest in any such Commercial Tort Claim.

                  6.2.2 Other Collateral. Borrowers shall promptly notify Agent
in writing upon acquiring or otherwise obtaining any Collateral after the date
hereof consisting of Deposit Accounts, Investment Property, Letter-of-Credit
Rights or Electronic Chattel Paper and, upon the request of Agent, promptly
execute such other documents, and do such other acts or things deemed
appropriate by Agent to deliver to Agent for the Pro Rata benefit of the Lenders
control with respect to such Collateral; promptly notify Agent in writing upon
acquiring or otherwise obtaining any Collateral after the date hereof consisting
of Documents or Instruments and, upon the request of Agent, will promptly
execute such other documents, and do such other acts or things deemed
appropriate by Agent to deliver to Agent possession of such Documents which are
negotiable and Instruments, and, with respect to nonnegotiable Documents, to
have such nonnegotiable Documents issued in the name of Agent for the Pro Rata
benefit of the Lenders; and with respect to Collateral in the possession of a
third party, other than Certificated Securities and Goods covered by a Document
and obtain an acknowledgement from the third party that it is holding the
Collateral for the benefit of Agent and the Lenders.

            6.3 Lien Perfection; Further Assurances. Borrowers shall execute
      such UCC-1 financing statements as are required by the UCC and such other
      instruments, assignments or documents as are necessary to perfect Agents'
      Lien upon any of the Collateral and shall take such other action as may be
      required to perfect or to continue the perfection of Agents' Lien upon the
      Collateral. Unless prohibited by applicable law, Borrowers hereby
      irrevocably authorize Agent to execute and file any such financing
      statements, including, without limitation, financing statements that
      indicate the Collateral (i) as all assets of Borrowers or words of similar
      effect, or (ii) as being of an equal or lesser scope, or with greater or
      lesser detail, than as set forth in Section 6.1, on Borrowers' behalf.
      Borrowers also hereby ratify their authorization for Agent to have filed
      in any jurisdiction any like financing statements or amendments thereto if
      filed prior to the date hereof. The parties agree that a photographic or
      other reproduction of this Agreement shall be sufficient as a financing
      statement and may be filed in any appropriate office in lieu thereof. At
      Agent's request, Borrowers shall also promptly execute or cause to be
      executed and shall deliver to Agent any and all documents, instruments and
      agreements deemed necessary by Agent to give effect to or carry out the
      terms or intent of the Loan Documents.

            6.4 Lien on Realty. The due and punctual payment and performance of
      the Obligations shall also be secured by the Liens created by the
      Mortgages upon all Real Property of Borrowers or Guarantors. The Mortgages
      shall be executed by the respective Borrowers or Guarantors as the case
      may be in favor of Agent for the Pro Rata benefit of Lenders and shall be
      duly recorded, at Borrowers' expense, in each office where such recording
      is required to constitute a fully perfected first priority Lien on the
      Real Property

                                      -25-
<PAGE>

      covered thereby. Borrowers shall deliver to Agent, at Borrower's expense,
      mortgagee title insurance policies issued by a title insurance company
      satisfactory to Agent, which policies shall be in form and substance
      satisfactory to Agent and shall insure a valid, first lien in favor of
      Agent, for the Pro Rata Benefit of the Lenders on the Real Property
      covered thereby, subject only to those exceptions acceptable to Agent.
      Borrower shall deliver to Agent such other documents, including, without
      limitation, as-built plans from ALTA surveys of the Real Property, as
      Agent may request relating to the Real Property subject to the mortgages.

      To the extent the covenants of the Borrowers and Guarantors pursuant to
this Section 6.4 have not been completed as of the Closing Date, the Borrowers
and Guarantors shall (a) execute Mortgages in favor of Agent and cause such
Mortgages to be duly recorded as Borrower's expense, in each office where such
recording is required to constitute a fully perfected first priority lien on the
Real Property covered thereby and (b) expend commercially reasonable best
efforts to complete all such other covenants set forth in Section 6.4 in each
case, no later than sixty (60) days after the Closing Date. With respect to any
Real Property subsequently acquired by the Borrowers or Guarantors, the
covenants of this Section 6.4 shall be completed within thirty (30) days of the
date of acquisition. The foregoing provision relating to after acquired Real
Property shall not be deemed an implicit limitation or waiver of any covenants
or restrictions under this Agreement applicable to the acquisition of Real
Property by the Borrowers or Guarantors.

SECTION 7. COLLATERAL ADMINISTRATION

            7.1 General.

                  7.1.1 Location of Collateral. All Collateral, other than
Inventory in transit and motor vehicles, will at all times be kept by Borrowers
and their Subsidiaries at one or more of the business locations set forth in
Exhibit C hereto and shall not, without the prior written approval of Agent, be
moved therefrom except, prior to an Event of Default and Lenders' acceleration
of the maturity of the Obligations in consequence thereof, for (i) sales of
Inventory in the ordinary course of business; and (ii) removals in connection
with dispositions of Equipment that are authorized by subsection 7.4.2 hereof.

                  7.1.2 Insurance of Collateral. Borrowers shall maintain and
pay for insurance upon all Collateral wherever located and with respect to
Borrowers' business, covering casualty, hazard, public liability and such other
risks in such amounts and with such insurance companies as are reasonably
satisfactory to Agent. Borrowers shall deliver the originals of such policies to
Agent with satisfactory lender's loss payable endorsements, naming Agent for the
Pro Rata benefit of Lenders as loss payee, mortgagee, assignee or additional
insured, as appropriate. Each policy of insurance or endorsement shall contain a
clause requiring the insurer to give not less than thirty (30) days prior
written notice to Agent in the event of cancellation of the policy for any
reason whatsoever and a clause specifying that the interest of Lenders shall not
be impaired or invalidated by any act or neglect of Borrowers or the owner of
the Property or by the occupation of the premises for purposes more hazardous
than are permitted by said policy. If

                                      -26-
<PAGE>

Borrowers fail to provide and pay for such insurance, Agent may, at its option,
but shall not be required to, procure the same and charge Borrowers therefor.
Borrowers agree to deliver to Agent, promptly as rendered, true copies of all
reports made in any reporting forms to insurance companies.

                  7.1.3 Protection of Collateral. All expenses of protecting,
storing, warehousing, insuring, handling, maintaining and shipping the
Collateral, any and all excise, property, sales, and use taxes imposed by any
state, federal, or local authority on any of the Collateral or in respect of the
sale thereof shall be borne and paid by Borrowers. If Borrowers fail to promptly
pay any portion thereof when due, Agent or any Lender may, at its option, but
shall not be required to, pay the same and charge Borrowers therefor. Neither
Agent nor any Lender shall be liable or responsible in any way for the
safekeeping of any of the Collateral or for any loss or damage thereto (except
for reasonable care in the custody thereof while any Collateral is in Agent's or
any Lender's actual possession) or for any diminution in the value thereof, or
for any act or default of any warehouseman, carrier, forwarding agency, or other
person whomsoever, but the same shall be at Borrowers' sole risk.

            7.2 Administration of Accounts.

                  7.2.1 Records, Schedules and Assignments of Accounts. Each
Borrower shall keep accurate and complete records of its Accounts and all
payments and collections thereon and shall submit to Agent on such periodic
basis as Agent shall request a sales and collections report for the preceding
period, in form satisfactory to Agent. On or before the twentieth (20th) day of
each month from and after the date hereof, Borrowers shall deliver to Agent, in
form acceptable to Agent, a detailed, aged trial balance of all Accounts
existing as of the last day of the preceding month, specifying the names,
addresses, face value, dates of invoices and due dates for each Account Debtor
obligated on an Account so listed ("Schedule of Accounts"), and, upon Agent's
request therefor, copies of proof of delivery and the original copy of all
documents, including, without limitation, repayment histories and present status
reports relating to the Accounts so scheduled and such other matters and
information relating to the status of then existing Accounts as Agent shall
reasonably request. In addition, if Accounts in an aggregate face amount in
excess of $250,000.00 become ineligible because they fall within one of the
specified categories of ineligibility set forth in the definition of Eligible
Accounts or otherwise established by Agent, Borrowers shall notify Agent of such
occurrence on the first Business Day following such occurrence and the Borrowing
Base shall thereupon be adjusted to reflect such occurrence. If requested by
Agent, Borrowers shall execute and deliver to Agent for the Pro Rata benefit of
Lenders formal written assignments of all of the Accounts weekly or daily, which
shall include all Accounts that have been created since the date of the last
assignment, together with copies of invoices or invoice registers related
thereto.

                  7.2.2 Discounts, Allowances, Disputes. If Borrowers grant any
discounts, allowances or credits that are not shown on the face of the invoice
for the Account involved, Borrowers shall report such discounts, allowances or
credits, as the case may be, to Agent as part of the next required Schedule of
Accounts. If any amounts due and owing in excess of $250,000.00 are in dispute
between Borrowers and any Account Debtor, Borrowers shall provide Agent with
written notice thereof at the time of submission of the next Schedule of
Accounts,

                                      -27-
<PAGE>

explaining in detail the reason for the dispute, all claims related thereto and
the amount in controversy. Upon and after the occurrence of an Event of Default,
Agent shall have the right to settle or adjust all disputes and claims directly
with the Account Debtor and to compromise the amount or extend the time for
payment of the Accounts upon such terms and conditions as Agent may deem
advisable, and to charge the deficiencies, costs and expenses thereof, including
attorney's fees, to Borrowers.

                  7.2.3 Taxes. If an Account includes a charge for any tax
payable to any governmental taxing authority, Agent is authorized, in its sole
discretion, to pay the amount thereof to the proper taxing authority for the
account of Borrowers and to charge Borrowers therefor, provided, however, that
Agent shall not be liable for any taxes to any governmental taxing authority
that may be due by Borrowers.

                  7.2.4 Account Verification. Whether or not a Default or an
Event of Default has occurred, any of Agent's officers, employees or agents
shall have the right, at any time or times hereafter, in the name of Agent, any
designee of such Agent, or Borrowers, to verify the validity, amount or any
other matter relating to any Accounts by mail, telephone, electronic
communication or otherwise. Borrowers shall cooperate fully with Agent in an
effort to facilitate and promptly conclude any such verification process.

                  7.2.5 Maintenance of Cash Management System. Borrowers shall
maintain a cash management system acceptable to Agent with such banks as may be
selected by Borrowers and be acceptable to Agent. All depository accounts in
Borrower's cash management system and funds deposited in any deposit accounts
shall be subject to the first priority lien of Agent for the Pro Rata account of
Lenders and Borrowers shall obtain the agreement by such banks in favor of Agent
for the account of Lenders as may be necessary or appropriate for Agent to
obtain a perfected first priority Lien therein. On the Closing Date, Borrowers
shall establish and maintain a Dominion Account pursuant to a lockbox
arrangement acceptable to Agent with such banks as may be selected by Borrowers
and be acceptable to Agent. Borrowers shall issue to any such banks an
irrevocable letter of instruction directing such banks to deposit all payments
or other remittances received in the lockbox to the Dominion Account and to
comply with Agent's notice, given at any time and from time to time in its
discretion (or when directed by the Required Lenders), directing such banks to
transfer all such payments and remittances to the Payment Account for
application on account of the Obligations; provided, however, that Borrowers
acknowledge and agree that if at any time Availability is less than $10,000,000
and within ten (10) days of such occurrence Borrowers fail to provide or are
unable to provide Availability projections demonstrating, to the satisfaction of
the Required Lenders, that within sixty (60) days Availability will increase to
be in excess of $10,000,000 and continue thereafter to exceed such amount, Agent
shall give the foregoing notice to such banks to transfer all payments and
remittances to the Payment Account. All funds deposited in the Dominion Account
shall immediately become the property of Agent for the account of Lenders and
Borrowers shall obtain the agreement by such banks in favor of Agent to waive
any recoupment, setoff rights, and any security interest in, or against the
funds so deposited. Agent agrees with Borrowers that Agent shall not give any
such instructions or withhold any withdrawal rights from Borrowers unless a
Default, or an Event of Default has occurred and is continuing. Agent assumes no
responsibility

                                      -28-
<PAGE>

for such lockbox or blocked account arrangements, including, without limitation,
any claim of accord and satisfaction or release with respect to deposits
accepted by any bank thereunder.

                  7.2.6 Collection of Accounts, Proceeds of Collateral. To
expedite collection, Borrowers shall endeavor in the first instance to make
collection of their Accounts for Agent and Lenders. All remittances received by
Borrowers on account of Accounts, together with the proceeds of any other
Collateral, shall be held as Agent's property by Borrowers as trustee of an
express trust for Agent's benefit and Borrowers shall immediately deposit same
in kind in the Borrowers' cash management system or Dominion Account, as the
case may be. Agent retains the right at all times after the occurrence of a
Default or an Event of Default to notify Account Debtors that Accounts have been
assigned to Agent for the account of each Lender and to collect Accounts
directly, and to charge the collection costs and expenses, including attorneys'
fees to Borrowers.

            7.3 Administration of Inventory.

                  7.3.1 Records and Reports of Inventory. Borrowers shall keep
accurate and complete records of Inventory. Borrowers shall agree to furnish to
Agent and Lenders Inventory reports in form and detail satisfactory to Agent at
such times as Agent may request, but at least once each month, not later than
the twentieth (20th) day of such month. Borrowers shall conduct cycle counts and
other inventory testing and control procedures in accordance with the Borrowers'
policies in effect on the Closing Date and shall provide Agent and Lenders
reports based on such cycle counts and tests promptly thereafter, together with
such supporting information as Agent shall request. Upon and during the
continuance of a Default or Event of Default Borrowers shall conduct physical
inventory counts at such times as Agent may request, and shall provide to Agent
and Lenders a report based on each such physical inventory promptly thereafter,
together with such supporting information as Agent shall request.

                  7.3.2 Returns of Inventory. If at any time or times hereafter
any Account Debtor returns any Inventory to a Borrower the shipment of which
generated an Account on which such Account Debtor is obligated in excess of
$250,000.00, Borrowers shall immediately notify Agent of the same, specifying
the reason for such return and the location, condition and intended disposition
of the returned Inventory.

            7.4 Administration of Equipment.

                  7.4.1 Records and Schedules of Equipment. Borrowers shall keep
accurate records itemizing and describing the kind, type, quality, quantity and
value of its Equipment and all dispositions made in accordance with subsection
7.4.2 hereof, and shall furnish Agent and Lenders with a current schedule
containing the foregoing information on at least an annual basis and more often
if requested by Agent. Immediately on request therefor by Agent, Borrowers shall
deliver to Agent any and all evidence of ownership, if any, of any of the
Equipment.

                  7.4.2 Dispositions of Equipment. Borrowers will not sell,
lease or otherwise dispose of or transfer any of the Equipment or any part
thereof without the prior written consent of Agent and Required Lenders;
provided, however, that the foregoing restriction shall not apply,

                                      -29-
<PAGE>

for so long as no Default or Event of Default exists, to (i) dispositions of
Equipment which, in the aggregate during any consecutive twelve-month period,
has a fair market value or book value, whichever is less, of $500,000.00 or
less, provided that all proceeds thereof are remitted to Agent for the account
of each Lender for application to the Loans, or (ii) replacements of Equipment
that is substantially worn, damaged or obsolete with Equipment of like kind,
function and value, provided that the replacement Equipment shall be acquired
prior to or concurrently with any disposition of the Equipment that is to be
replaced, the replacement Equipment shall be free and clear of Liens other than
Permitted Liens that are not Purchase Money Liens, and Borrowers shall have
given Agent at least five (5) days prior written notice of such disposition.

            7.5 Payment of Charges. All amounts chargeable to Borrowers under
      Section 7 hereof shall be Obligations secured by all of the Collateral,
      shall be payable on demand and shall bear interest from the date such
      advance was made until paid in full at the rate applicable to Base Rate
      Advances from time to time.

SECTION 8. REPRESENTATIONS AND WARRANTIES

            8.1 General Representations and Warranties. To induce Agent and
      Lenders to enter into this Agreement and to make advances and extensions
      of credit hereunder, each Borrower warrants, represents and covenants to
      the Agent and the Lenders that:

                  8.1.1 Organization and Qualification. Each Borrower and its
Subsidiaries is a corporation or limited liability company duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation or organization. Each Borrower and its Subsidiaries is duly
qualified and is authorized to do business and is in good standing in each state
or jurisdiction listed on Exhibit D hereto and in all other states and
jurisdictions in which the failure of such Borrower or any of its Subsidiaries
to be so qualified would have a material adverse effect on the financial
condition, business or Properties of any such Borrower or any of such Borrower's
Subsidiaries.

                  8.1.2 Corporate Power and Authority. Each Borrower and its
Subsidiaries is duly authorized and empowered to enter into, execute, deliver
and perform this Agreement and each of the other Loan Documents to which it is a
party. The execution, delivery and performance of this Agreement and each of the
other Loan Documents have been duly authorized by all necessary action and do
not and will not (i) require any consent or approval of the shareholders (or
members, in the case of a limited liability company) of any Borrower or any of
its Subsidiaries; (ii) contravene any Borrower's or any of its Subsidiaries'
charter, articles or certificate of incorporation or by-laws in the case of a
corporation or certificate of formation and limited liability company or
operating agreement, in the case of a limited liability company; (iii) violate,
or cause any Borrower or any of its Subsidiaries to be in default under, any
provision of any law, rule, regulation, order, writ, judgment, injunction,
decree, determination or award in effect having applicability to any Borrower or
any of its Subsidiaries; (iv) result in a breach of or constitute a default
under any indenture or loan or credit agreement or any other agreement, lease or
instrument to which any Borrower or any of its Subsidiaries is a party or by
which it or its Properties may be bound or affected; or (v) result in, or
require, the creation or imposition of any

                                      -30-
<PAGE>

Lien (other than Permitted Liens) upon or with respect to any of the Properties
now owned or hereafter acquired by any Borrower or any of its Subsidiaries.

                  8.1.3 Legally Enforceable Agreement. This Agreement is, and
each of the other Loan Documents when delivered under this Agreement will be, a
legal, valid and binding obligation of each Borrower and its Subsidiaries
enforceable against it in accordance with its respective terms.

                  8.1.4 Capital Structure. Exhibit E hereto states (i) the
correct name of each of the Subsidiaries of Borrowers, its jurisdiction of
formation and the percentage interest owned by each Borrower, (ii) the name of
each of Borrowers' corporate or joint venture Affiliates and the nature of the
affiliation, (iii) the number, nature and holder of all outstanding Securities
of each Borrower and each Subsidiary of each Borrower and (iv) the number of
authorized, issued and treasury shares of each such Borrower and each Subsidiary
of each such Borrower that is a corporation. Each Borrower has good title to all
of the shares it purports to own of the stock of each of its Subsidiaries, free
and clear in each case of any Lien other than Permitted Liens. Except as set
forth on Exhibit E, all such shares have been duly issued and are fully paid and
non-assessable. Except as set forth on Exhibit E there are no outstanding
options to purchase, or any rights or warrants to subscribe for, or any
commitments or agreements to issue or sell, or any Securities or obligations
convertible into, or any powers of attorney relating to, shares of the capital
stock of any Borrower or any of such Borrower's Subsidiaries. Except as set
forth on Exhibit E, there are no outstanding agreements or instruments binding
upon any of Borrowers' shareholders (or members, in the case of a limited
liability company) relating to the ownership of its shares of capital stock (or
membership interest, in the case of a limited liability company).

                  8.1.5 Corporate Names, Etc. No Borrower nor any Subsidiary of
any Borrower has been known as or used any corporate, fictitious or trade names
except those listed on Exhibit F hereto. Except as set forth on Exhibit F, no
Borrower nor any Subsidiary of any Borrower has been the surviving corporation
of a merger or consolidation or acquired all or substantially all of the assets
of any Person. Each Borrower's and each Subsidiary's state(s) of incorporation
or organization, Type of Organization and Organizational I.D. Number is set
forth on Exhibit F. The exact legal name of each Borrower and each of such
Borrower's Subsidiaries is set forth on Exhibit F.

                  8.1.6 Business Locations; Agent for Process. Each Borrower's
and its Subsidiaries' chief executive office and other places of business are as
listed on Exhibit C hereto. During the preceding one-year period, no Borrower
nor any of their Subsidiaries has had an office, place of business or agent for
service of process other than as listed on Exhibit C. Except as shown on Exhibit
C, no Inventory having an aggregate value in excess of $100,000.00 is stored
with a bailee, warehouseman or similar party, nor is any Inventory consigned to
any Person without Agent's prior written consent.

                  8.1.7 Title to Properties; Priority of Liens. Each Borrower
and each of their Subsidiaries has good, indefeasible and marketable title to
and fee simple ownership of, or valid and subsisting leasehold interests in, all
of its Real Property, and good title to all of the Collateral and all of its
other Property, in each case, free and clear of all Liens except Permitted
Liens.

                                      -31-
<PAGE>

Borrowers have paid or discharged all lawful claims which, if unpaid, might
become a Lien against any of Borrowers' Properties that is not a Permitted Lien.
The Liens granted to Agent under Section 6 hereof are first-priority Liens,
subject only to Permitted Liens.

                  8.1.8 Accounts. Agent may rely, in determining which Accounts
are Eligible Accounts, on all statements and representations made by Borrowers
with respect to any Account or Accounts. Unless otherwise indicated in writing
to Agent , with respect to each Account:

                        (i) It is genuine and in all respects what it purports
                  to be, and it is not evidenced by a judgment;

                        (ii) It arises out of a completed, bona fide sale and
                  delivery of goods or rendition of services by a Borrower in
                  the ordinary course of such Borrower's business and in
                  accordance with the terms and conditions of all purchase
                  orders, contracts or other documents relating thereto and
                  forming a part of the contract between such Borrower and the
                  Account Debtor;

                        (iii) It is for a liquidated amount maturing as stated
                  in the duplicate invoice covering such sale or rendition of
                  services, a copy of which has been furnished or is available
                  to Agent;

                        (iv) Such Account, and Agent's security interest
                  therein, is not, and will not (by voluntary act or omission of
                  a Borrower) be in the future, subject to any offset, Lien,
                  deduction, recoupment, defense, dispute, counterclaim or any
                  other adverse condition except for disputes resulting in
                  returned goods where the amount in controversy is less than
                  $250,000, and each such Account is absolutely owing to a
                  Borrower and is not contingent in any respect or for any
                  reason;

                        (v) No Borrower has made an agreement with any Account
                  Debtor thereunder for any extension, compromise, settlement or
                  modification of any such Account or any deduction therefrom,
                  except discounts or allowances which are granted by a Borrower
                  in the ordinary course of business for prompt payment and
                  which are reflected in the calculation of the net amount of
                  each respective invoice related thereto and are reflected in
                  the Schedules of Accounts submitted to Agent pursuant to
                  subsection 7.2.1 hereof;

                        (vi) To the best of Borrowers' knowledge, there are no
                  facts, events or occurrences which in any way impair the
                  validity or enforceability of any Accounts or tend to reduce
                  the amount payable thereunder from the face amount of the
                  invoice and statements delivered to Agent with respect
                  thereto;

                        (vii) To the best of Borrowers' knowledge, the Account
                  Debtor thereunder (1) had the capacity to contract at the time
                  any contract or other document giving rise to the Account was
                  executed and (2) such Account Debtor is Solvent; and

                                      -32-
<PAGE>

                        (viii) To the best of Borrowers' knowledge, there are no
                  proceedings or actions which are threatened or pending against
                  any Account Debtor thereunder which might result in any
                  material adverse change in such Account Debtor's financial
                  condition or the collectibility of such Account.

                  8.1.9 Equipment. The Equipment is in good operating condition
and repair, and all necessary replacements of and repairs thereto shall be made
so that the value and operating efficiency of the Equipment shall be maintained
and preserved, reasonable wear and tear excepted. Borrowers will not permit any
of the Equipment to become affixed to any real Property leased to a Borrower so
that an interest arises therein under the real estate laws of the applicable
jurisdiction unless the landlord of such real Property has executed a landlord
waiver or leasehold mortgage in favor of and in form acceptable to Agent and
Borrowers will not permit any of the Equipment to become an accession to any
personal Property other than Equipment that is subject to first-priority (except
for Permitted Liens) Liens in favor of Agent hereunder.

                  8.1.10 Financial Statements; Fiscal Year. The Consolidated and
consolidating balance sheets of Borrowers and such other Persons described
therein (including the accounts of all Subsidiaries of Borrowers for the
respective periods during which a Subsidiary relationship existed) as of July
31, 2000, and the related statements of income, changes in stockholder's equity,
and changes in financial position for the periods ended on such dates, have been
prepared in accordance with GAAP, and present fairly the financial positions of
Borrowers and such Persons at such dates and the results of Borrowers' and such
Persons' operations for such periods. Since July 31, 2000, there has been no
material change in the condition, financial or otherwise, of Borrowers and such
other Persons as shown on the Consolidated balance sheet as of such date and no
change in the aggregate value of Equipment and Real Property owned by Borrowers
or such other Persons, except changes in the ordinary course of business, none
of which individually or in the aggregate has been materially adverse. The
fiscal year of each Borrower and each of its respective Subsidiaries ends on
July 31 of each year.

                  8.1.11 Full Disclosure. The financial statements referred to
in subsection 8.1.10 hereof do not, nor does this Agreement or any other written
statement of Borrowers to Agent or Lenders, contain any untrue statement of a
material fact or omit a material fact necessary to make the statements contained
therein or herein not misleading. There is no fact which Borrowers have failed
to disclose to Agent and Lenders in writing which materially affects adversely
or, so far as Borrowers can now foresee, will materially affect adversely the
Properties, business, prospects, profits or condition (financial or otherwise)
of any Borrower or any of such Borrower's Subsidiaries or the ability of any
Borrower or its Subsidiaries to perform this Agreement or the other Loan
Documents.

                  8.1.12 Solvent Financial Condition. Each Borrower and its
Subsidiaries is now and, after giving effect to the Loans to be made and the
Letters of Credit and LC Guaranties to be issued hereunder, at all times will
be, Solvent.

                  8.1.13 Surety Obligations. No Borrower nor any of its
Subsidiaries is obligated as surety or indemnitor under any surety or similar
bond or other contract, or has issued or

                                      -33-
<PAGE>

entered into any agreement to assure payment, performance or completion of
performance of any undertaking or obligation of any Person other than as set
forth on Exhibit G hereto.

                  8.1.14 Taxes. The federal tax identification number of each
Borrower and its Subsidiaries is shown on Exhibit H hereto. Each Borrower and
each of its Subsidiaries has filed all federal, state and local tax returns and
other reports it is required by law to file and has paid, or made provision for
the payment of, all material taxes, assessments, fees, levies and other
governmental charges upon it, its income and Properties as and when such taxes,
assessments, fees, levies and charges are due and payable, unless and to the
extent any thereof are being actively contested in good faith and by appropriate
proceedings and each Borrower maintains reasonable reserves on its books
therefor. The provision for taxes on the books of each Borrower and each of its
Subsidiaries are adequate for all years not closed by applicable statutes, and
for its current fiscal year.

                  8.1.15 Brokers. There are no claims for brokerage commissions,
finder's fees or investment banking fees in connection with the transactions
contemplated by this Agreement.

                  8.1.16 Patents, Trademarks, Copyrights and Licenses. Each
Borrower and its Subsidiaries owns or possesses all the patents, trademarks,
service marks, trade names, copyrights and licenses necessary for the present
and planned future conduct of its business without any known conflict with the
rights of others. All such patents, trademarks, service marks, trade names,
copyrights, licenses and other similar rights are listed on Exhibit I hereto.

                  8.1.17 Governmental Consents. Each Borrower and each of its
Subsidiaries has, and is in good standing with respect to, all governmental
consents, approvals, licenses, authorizations, permits, certificates,
inspections and franchises necessary to continue to conduct its business as
heretofore or proposed to be conducted by it and to own or lease and operate its
Properties as now owned or leased by it, except for those that would not have a
material adverse effect on the business, prospects, profits, properties, or
condition (financial or otherwise) of the Borrowers taken as a whole.

                  8.1.18 Compliance with Laws. Each Borrower and its
Subsidiaries has duly complied with, and its Properties, business operations and
leaseholds are in compliance in all material respects with, the provisions of
all federal, state and local laws, rules and regulations including, without
limitation, all Environmental Laws applicable to such Borrower or such
Subsidiary, as applicable, its Properties or the conduct of its business and
there have been no citations, notices or orders of noncompliance issued to any
Borrower or any of its Subsidiaries under any such law, rule or regulation,
except for those that would not have a material adverse effect on the business,
prospects, profits, properties or condition (financial or otherwise) of the
Borrowers taken as a whole. Each Borrower and its Subsidiaries has established
and maintains an adequate monitoring system to insure that it remains in
compliance with all federal, state and local laws, rules and regulations
applicable to it. No Inventory has been produced in violation of the Fair Labor
Standards Act (29 U.S.C. ss.201 et seq.), as amended.

                  8.1.19 Restrictions. No Borrower nor any of its Subsidiaries
is a party or subject to any contract, agreement, or charter or other corporate
restriction, which materially and

                                      -34-
<PAGE>

adversely affects its business or the use or ownership of any of its Properties.
No Borrower nor any of its Subsidiaries is a party or subject to any contract or
agreement which restricts its right or ability to incur Indebtedness, other than
as set forth on Exhibit J hereto, none of which prohibit the execution of or
compliance with this Agreement or the other Loan Documents by Borrowers or any
of their Subsidiaries, as applicable.

                  8.1.20 Litigation. Except as set forth on Exhibit K hereto,
there are no actions, suits, proceedings or investigations pending, or to the
knowledge of any Borrower, threatened, against or affecting any Borrower or any
of such Borrower's Subsidiaries, that would, if adversely determined, have a
material adverse effect on the business, operations, Properties, prospects,
profits or condition (financial or otherwise) of the Borrowers taken as a whole.
No Borrower nor any of such Borrower's Subsidiaries is in default with respect
to any order, writ, injunction, judgment, decree or rule of any court,
governmental authority or arbitration board or tribunal.

                  8.1.21 No Defaults. No event has occurred and no condition
exists which would, upon or after the execution and delivery of this Agreement
or Borrowers' performance hereunder, constitute a Default or an Event of
Default. No Borrower nor any of its Subsidiaries is in default, and no event has
occurred and no condition exists which constitutes, or which with the passage of
time or the giving of notice or both would constitute, a default in the payment
of any Indebtedness to any Person for Money Borrowed.

                  8.1.22 Leases. Exhibit L hereto is a complete listing of all
capitalized leases of each Borrower and each of its Subsidiaries and Exhibit M
hereto is a complete listing of all operating leases of each Borrower and each
of its Subsidiaries. Each Borrower and each of its Subsidiaries is in full
compliance with all of the terms of each of its respective capitalized and
operating leases.

                  8.1.23 Pension Plans. Except as disclosed on Exhibit N hereto,
no Borrower nor any of its Subsidiaries has any Plan. Each Borrower and each of
such Borrower's Subsidiaries is in full compliance with the requirements of
ERISA and the regulations promulgated thereunder with respect to each Plan. No
fact or situation that could result in a material adverse change in the
financial condition of any Borrower or any of such Borrower's Subsidiaries
exists in connection with any Plan. No Borrower nor any of such Borrower's
Subsidiaries has any withdrawal liability in connection with a Multi-employer
Plan.

                  8.1.24 Trade Relations. There exists no actual or threatened
termination, cancellation or limitation of, or any modification or change in,
the business relationship between Borrowers or any of their Subsidiaries and any
customer or any group of customers whose purchases individually or in the
aggregate are material to the business of Borrowers or any of their
Subsidiaries, or with any material supplier, and there exists no present
condition or state of facts or circumstances which would materially affect
adversely any Borrower or any of such Borrower's Subsidiaries or prevent any
Borrower or any of such Borrower's Subsidiaries from conducting such business
after the consummation of the transaction contemplated by this Agreement in
substantially the same manner in which it has heretofore been conducted.

                                      -35-
<PAGE>

                  8.1.25 Labor Relations. Except as described on Exhibit O
hereto, no Borrower nor any of its Subsidiaries is a party to any collective
bargaining agreement. There are no material grievances, disputes or
controversies with any union or any other organization of any Borrower's or any
Borrower's Subsidiaries' employees, or threats of strikes, work stoppages or any
asserted pending demands for collective bargaining by any union or organization.

                  8.1.26 Bank Accounts. All of the deposit accounts, investment
accounts or other accounts in the name of or used by Borrowers and each of their
subsidiaries, maintained at any bank or other financial institution are set
forth in Exhibit W, subject to the right of Borrowers and each of their
subsidiaries to establish new accounts in accordance with Section 6.2 hereof.

            8.2 Continuous Nature of Representations and Warranties. Each
      representation and warranty contained in this Agreement and the other Loan
      Documents shall be continuous in nature and shall remain accurate,
      complete and not misleading at all times during the term of this
      Agreement, except for changes in the nature of any Borrower's or any
      Borrower's Subsidiaries' business or operations that would render the
      information in any exhibit attached hereto either inaccurate, incomplete
      or misleading, so long as Agent and each Required Lender has consented to
      such changes or such changes are expressly permitted by this Agreement.
      Without limiting the generality of the foregoing, each loan request made
      pursuant to subsection 3.1.1 hereof shall constitute each Borrower's
      reaffirmation, as of the date of each such loan request, of each
      representation, warranty or other statement made or furnished to Agent by
      or on behalf of Borrowers, any Subsidiary of any Borrower, or Guarantor in
      this Agreement, any of the other Loan Documents, or any instrument,
      certificate or financial statement furnished in compliance with or in
      reference thereto.

            8.3 Survival of Representations and Warranties. All representations
      and warranties of Borrowers contained in this Agreement or any of the
      other Loan Documents shall survive the execution, delivery and acceptance
      thereof by Lender and the parties thereto and the closing of the
      transactions described therein or related thereto.

SECTION 9. COVENANTS AND CONTINUING AGREEMENTS

            9.1 Affirmative Covenants. During the term of this Agreement, and
      thereafter for so long as there are any Obligations to Agent or any
      Lender, each Borrower covenants that, unless otherwise consented to by
      Required Lenders in writing, it shall:

                  9.1.1 Visits and Inspections. Permit representatives of Agent
or any Lender, from time to time, as often as may be reasonably requested, but
only during normal business hours or at any time and without notice if a Default
or an Event of Default has occurred and is continuing, to visit and inspect the
Properties of each Borrower and each of its Subsidiaries, inspect, audit and
make extracts from its books and records, and discuss with its officers,
employees and independent accountants, such Borrower's and its Subsidiaries'
business, assets, liabilities, financial condition, business prospects and
results of operations. Agent shall conduct at least two (2) commercial finance
audits of the Borrowers, at Borrower's expense, during each twelve (12) month
period and as many as the Agent or the Required Lenders may deem necessary

                                      -36-
<PAGE>

or appropriate, at Borrower's expense if a Default or an Event of Default has
occurred and is continuing.

                  9.1.2 Notices. Promptly notify Agent in writing of the
occurrence of any event or the existence of any fact which renders any
representation or warranty in this Agreement or any of the other Loan Documents
inaccurate, incomplete or misleading.

                  9.1.3 Financial Statements. Keep, and cause each Subsidiary to
keep, adequate records and books of account with respect to its business
activities in which proper entries are made in accordance with GAAP reflecting
all its financial transactions; and cause to be prepared and furnished to Agent
and each Lender the following (all to be prepared in accordance with GAAP on a
first-in, first-out basis for Borrowers' interim financial statements and on a
last-in, first-out basis for Borrowers' audited financial statements, applied on
a consistent basis, unless Borrowers' certified public accountants concur in any
change therein and such change is disclosed to Agent and Lenders and is
consistent with GAAP):

                        (i) not later than ninety (90) days after the close of
                  each fiscal year of Borrowers, unqualified, audited financial
                  statements of Borrowers and their Subsidiaries as of the end
                  of such year, on a Consolidated basis, certified by a firm of
                  independent certified public accountants of recognized
                  standing selected by Borrowers but acceptable to Lenders
                  (except for a qualification for a change in accounting
                  principles with which the accountant concurs) together with
                  consolidating financial statements prepared by management of
                  Borrowers in accordance with GAAP;

                        (ii) not later than thirty (30) days after the end of
                  each month hereafter, including the last month of Borrowers'
                  fiscal year, unaudited, interim financial statements of
                  Borrowers and their Subsidiaries as of the end of such month
                  and of the portion of Borrowers' financial year then elapsed,
                  on a Consolidated and consolidating basis, certified by the
                  principal financial officer of Borrowers as prepared in
                  accordance with GAAP and fairly presenting the Consolidated
                  financial position and results of operations of Borrowers and
                  their Subsidiaries for such month and period subject only to
                  changes from audit and year-end adjustments and except that
                  such statements need not contain notes;

                        (iii) promptly upon Agent's request, but in any event,
                  on the last Business Day of each month, a Borrowing Base
                  Certificate which Borrowing Base Certificate will include a
                  certification from the chief financial officer or other
                  appropriate financial or accounting officer of the Borrowers
                  that the information provided is accurate, complete and not
                  misleading;

                        (iv) promptly after the sending or filing thereof, as
                  the case may be, copies of any proxy statements, financial
                  statements or reports which any Borrower has made available to
                  its shareholders (or members, in the case of a limited
                  liability company) and copies of any regular, periodic and
                  special reports or registration statements which any Borrower
                  files with the Securities and

                                      -37-
<PAGE>

                  Exchange Commission or any governmental authority which may be
                  substituted therefore, or any national securities exchange;

                        (v) upon Agent's request promptly after the filing
                  thereof, copies of any annual report to be filed with ERISA in
                  connection with each Plan; and

                        (vi) such other data and information (financial and
                  otherwise) as Agent or any Lender, from time to time, may
                  reasonably request, bearing upon or related to the Collateral
                  or Borrowers' and each of their Subsidiaries' financial
                  condition or results of operations.

                  Concurrently with the delivery of the financial statements
described in clause (i) of this subsection 9.1.3, Borrowers shall forward to
Agent and Lenders a copy of the accountants' letter to Borrowers' management
that is prepared in connection with such financial statements. Concurrently with
the delivery of the financial statements described in clauses (i) and (ii) of
this subsection 9.1.3, or more frequently if requested by Agent, Borrowers shall
cause to be prepared and furnished to Agent and Lenders a Compliance Certificate
in the form of Exhibit P hereto executed by the Chief Financial Officer of UNF.

                  9.1.4 Landlord and Storage Agreements. Upon Agent's request,
provide Agent with copies of all agreements between any Borrower or any of its
Subsidiaries and any landlord or warehouseman which owns any premises at which
any Inventory or Equipment may, from time to time, be kept. Borrowers will use
commercially reasonable best efforts to obtain agreements, in form and substance
satisfactory to Agent, from all such landlords and warehousemen waiving or
subordinating any claim or lien such landlord or warehouseman may have in the
Collateral, granting access to any such premises and to the Collateral thereon
for the purpose of exercising Agent's rights and remedies, notifying Agent of
breaches and defaults under such agreements and containing such other terms and
conditions as Agent may reasonably request. In the event Borrowers are unable to
obtain the foregoing agreements, Borrowers acknowledge that Agent may establish
reserves for rent, charges and operating expenses with respect to such Premises,
in Agent's discretion.

                  9.1.5 Guarantor Financial Statements. Deliver or cause to be
delivered to Agent and Lenders financial statements for the Guarantors as
consolidated as a group with NRG, in form and substance reasonably satisfactory
to Agent at such intervals and covering such time periods as Agent may request.

                  9.1.6 Projections. No later than the first day of each fiscal
year of Borrowers, deliver to Agent and Lenders Projections of Borrowers for the
forthcoming three (3) years, year by year, and for the forthcoming fiscal year,
month by month.

                  9.1.7 Taxes and Liens. Pay and discharge, and cause each
Subsidiary to pay and discharge, all taxes, assessments and government charges
upon it, its income and Properties as and when such taxes, assessments and
charges are due and payable, unless and to the extent only that such taxes,
assessments and charges are being contested in good faith and by appropriate
proceedings and Borrowers maintain reasonable reserves on their books therefor.

                                      -38-
<PAGE>

Borrowers shall also pay and discharge any lawful claims which, if unpaid, might
become a Lien against any of the Borrowers' Properties except for Permitted
Liens.

                  9.1.8 Tax Returns. File, and cause each Subsidiary of the
Borrowers to file, all federal, state and local tax returns and other reports
the Borrowers or each Subsidiary of the Borrowers are required by law to file
and maintain adequate reserves for the payment of all taxes, assessments,
governmental charges, and levies imposed upon them, their income, or their
profits, or upon any Properties belonging to them.

                  9.1.9 Business and Existence. Preserve and maintain, and cause
each Subsidiary of the Borrowers to preserve and maintain, its separate
corporate existence and all rights, privileges, and franchises in connection
therewith, and maintain, and cause each Subsidiary of the Borrowers to maintain,
its qualification and good standing in all states in which such qualification is
necessary in order for the Borrower or their Subsidiaries to conduct business in
such states.

                  9.1.10 Maintain Properties. Maintain and cause each Subsidiary
of the Borrowers to maintain its Properties in good condition and make, and
cause each Subsidiary of the Borrowers to make all necessary renewals, repairs,
replacements, additions or improvements thereto.

                  9.1.11 Compliance with Laws. Comply, and cause each Subsidiary
to comply, with all laws, ordinances, governmental rules and regulations to
which it is subject, and obtain and keep in force any and all licenses, permits,
franchises, or other governmental authorizations necessary to the ownership of
its Properties or the conduct of its business, which violation or failure to
obtain might materially and adversely affect the business, prospects, profits,
properties, or condition (financial or otherwise) of the Borrowers, taken as a
whole.

                  9.1.12 ERISA Compliance. (i) At all times make prompt payment
of contributions required to meet the minimum funding standard set forth in
ERISA with respect to each Plan; and (ii) notify Agent as soon as practicable of
any Reportable Event and of any additional act or condition arising in
connection with any Plan which the Borrowers believe might constitute grounds
for the termination thereof by the Pension Benefit Guaranty Corporation or for
the appointment by the appropriate United States District Court of a Trustee to
administer the Plan.

                  9.1.13 Further Assurances. At Agent's request, promptly
execute or cause to be executed and delivered to Agent any and all documents,
instruments and agreements deemed necessary by Agent to give effect to or carry
out the terms or intent of this Agreement or any of the Loan Documents. Without
limiting the generality of the foregoing, if any of the Accounts, the face value
of which exceeds $100,000 arises out of a contract with the United States of
America, or any department, agency, subdivision or instrumentality thereof, the
Borrowers shall promptly notify Agent thereof in writing and shall execute any
instruments and take any other action required or requested by Agent to comply
with the provision of the Federal Assignment of Claims Act.

                                      -39-
<PAGE>

            9.2 Negative Covenants. During the term of this Agreement, and
      thereafter for so long as there are any Obligations to any Lender, each
      Borrower covenants that, unless, Agent and Required Lenders have first
      consented thereto in writing, it will not:

                  9.2.1 Mergers; Consolidations; Acquisitions. Merge or
consolidate or permit any Subsidiary or of Borrowers to merge or consolidate,
with any Person (except for mergers or consolidations among the Borrowers or
mergers or consolidations of Subsidiaries with a Borrower or Borrowers); nor
acquire or permit any of its Subsidiaries to acquire all or any substantial part
of the Properties or stock or securities of any Person except that, so long as
no Default or Event of Default exists or has occurred and is continuing,
Borrowers may purchase businesses in the lines of business conducted by the
Borrowers which Borrowers have determined, in their reasonable business
judgment, would enhance the business, operations, prospects and condition
(financial or otherwise) of the Borrowers provided that each of the following
conditions are satisfied: (a) not more than $5,000,000 per fiscal year of
Borrowers shall be paid in cash and/or incurred Indebtedness by Borrowers in
respect of all acquisitions and/or investments made in any such fiscal year; (b)
prior to entering into any agreement or undertaking with respect to any such
acquisition or investment, Borrowers shall prepare and submit to Agent and
Lenders pro forma balance sheets and income statements for the entity to be
acquired and consolidated with the Borrowers demonstrating to the satisfaction
of Agent and the Required Lenders continuing compliance with all the covenants
in Section 9.3 for the next twelve (12) fiscal months; (c) Agent shall have
determined, that after giving effect to all payments to be made by Borrowers in
connection with such acquisition or investment, Borrowers shall have
Availability of at least $10,000,000; (d) the Borrowers shall furnish to the
Agent notice and copies of any letter of intent or other memorandum of
understanding and purchase documents for any acquisition they may contemplate
and allow Agent and its representatives reasonable access to financial
information and the assets and Properties to be acquired which will, upon
consummation of the acquisition, become Collateral for the Obligations; (e) if
any such acquisition is structured as the acquisition of stock or other
securities of a Person to be acquired or Borrowers create a Subsidiary to make
the acquisition, Borrowers shall pledge the stock and securities to be purchased
to Agent pursuant to a pledge agreement reasonably satisfactory to Agent and
cause such entity to enter into a guaranty of the Obligations and to grant to
Agent a security interest in its assets to secure such guaranty reasonably
satisfactory to the Agent; and (f) if any indebtedness is to be issued to any
seller in connection with any such transaction, the holder of such indebtedness
shall enter into a subordination agreement in favor of the Agent and Lenders in
form and substance satisfactory to Agent. The Agent agrees to enter into
confidentiality agreements with the Persons that Borrower may acquire on terms
mutually agreeable to Agent and such Person.

                  9.2.2 Loans. Make, or permit any Subsidiary of Borrowers to
make, any loans or other advances of money (other than for salary, travel
advances, advances against commissions and other similar advances in the
ordinary course of business or as existing on the Closing Date and disclosed on
Exhibits hereto) to any Person; provided, however, that Borrowers may accept
promissory notes for loans to their customers in the normal course of business
to the extent not prohibited by the terms of this Agreement and Borrowers may
make loans or other advances of money between and among the Borrowers and the
Guarantors in the ordinary course of business.

                                      -40-
<PAGE>

                  9.2.3 Total Indebtedness. Create, incur, assume, or suffer to
exist, or permit any Subsidiary of any Borrower to create, incur or suffer to
exist, any Indebtedness, except:

                        (i) Obligations owing to Agent, FCC or Lenders
                  hereunder;

                        (ii) Trade payables and normal expense accruals in the
                  ordinary course of business, not yet due and payable, or with
                  respect to which a Borrower is contesting in good faith the
                  amount or the validity thereof in appropriate proceedings
                  diligently pursued and with respect to which adequate reserves
                  have been set aside on its books;

                        (iii) Indebtedness attributable to the ESOP Notes to the
                  extent that such Indebtedness is attributable to UNF in
                  accordance with GAAP;

                        (iv) Permitted Purchase Money Indebtedness;

                        (v) Contingent liabilities arising out of endorsements
                  of checks and other negotiable instruments for deposit or
                  collection in the ordinary course of business;

                        (vi) Indebtedness otherwise permitted under Subsection
                  9.2.1;

                        (vii) Unsecured Indebtedness incurred among the
                  Borrowers; and

                        (viii) Indebtedness not included in paragraphs (i)
                  through (vii) above which is not secured by any Lien and does
                  not exceed at any time, in the aggregate $5,000,000 as to all
                  Borrowers and their Subsidiaries.

                  9.2.4 Affiliate and Subsidiary Transactions. Enter into, or be
a party to, or permit any Subsidiary of a Borrower to enter into or be a party
to, any transaction with any Affiliate of any Borrower or stockholder of any
Borrower except in the ordinary course of and pursuant to the reasonable
requirements of such Borrowers or such Subsidiary's business and upon fair and
reasonable terms which are set forth on Exhibit S or fully disclosed to Agent
and are no less favorable to Borrower than would obtain in a comparable arm's
length transaction with a Person not an Affiliate or stockholder of Borrowers or
such Subsidiary.

                  9.2.5 Limitation on Liens. Create or suffer to exist, or
permit any Subsidiary of Borrowers to create or suffer to exist, any Lien upon
any Property, income or profits, whether now owned or hereafter acquired,
except:

                        (i) Liens at any time granted in favor of Agent, FCC or
                  any Lender pursuant hereto;

                        (ii) Liens for taxes (excluding any Lien imposed
                  pursuant to any of the provisions of ERISA) not yet due, or
                  being contested in the manner described in subsection 8.1.14
                  hereto, but only if in Agent's judgment such Lien does not
                  adversely affect Agent's rights or the priority of Agent's
                  Lien in the Collateral;

                                      -41-
<PAGE>

                        (iii) Liens arising in the ordinary course of Borrowers'
                  business by operation of law or regulation, but only if
                  payment in respect of any such Lien is not at the time
                  required and such Liens do not, in the aggregate, materially
                  detract from the value of the Property of Borrowers or
                  materially impair the use thereof in the operation of
                  Borrowers' business;

                        (iv) Purchase Money Liens securing Permitted Purchase
                  Money Indebtedness;

                        (v) Liens securing Indebtedness of any one of Borrowers'
                  Subsidiaries to Borrowers or another such Subsidiary;

                        (vi) such other Liens as appear on Exhibit Q hereto; and

                        (vii) attachment, judgment, and other similar non-tax
                  liens arising in connection with court proceedings, but only
                  if and for so long as the execution or other enforcement of
                  such liens is and continues to be effectively stayed and
                  bonded on appeal, the validity and amount of the claims
                  secured thereby are being actively contended in good faith and
                  by appropriate lawful proceedings and such liens do not, in
                  the aggregate, materially detract from the value of the
                  Property of the Borrowers or materially impair the use thereof
                  in the operation of the Borrowers' business;

                        (viii) reservations, exceptions, easements, rights of
                  way, and other similar encumbrances effecting real property,
                  provided that, in Agent's sole judgment, they do not in the
                  aggregate materially detract from the value of said Properties
                  or materially interfere with their use in the ordinary conduct
                  of the Borrowers' business and, if said real property
                  constitutes Collateral, Agent has consented thereto; and

                        (ix) such other Liens as Agent and Required Lenders may
                  hereafter approve in writing.

                  9.2.6 Subordinated Debt. Issue or enter into any agreement to
issue Subordinated Debt except upon terms and provisions relating to the
maturity and repayment thereof and terms relating to the subordination of
payment thereof to the Obligations, in each case reasonably acceptable to the
Agent.

                  9.2.7 Distributions. Declare or make, or permit any Subsidiary
of Borrowers to declare or make, any Distributions except Distributions made by
a wholly-owned Subsidiary of a Borrower to such Borrower in the ordinary course
of business.

                  9.2.8 Intentionally Omitted.

                  9.2.9 Disposition of Assets. Sell, lease or otherwise dispose
of any of, or permit any Subsidiary of any Borrower to sell, lease or otherwise
dispose of any of, its Properties, including any disposition of Property as part
of a sale and leaseback transaction, to or

                                      -42-
<PAGE>

in favor of any Person, except (i) sales of Inventory in the ordinary course of
business for so long as no Event of Default exists hereunder, (ii) a transfer of
Property to any Borrower by a Subsidiary of such Borrower or (iii) dispositions
expressly authorized by this Agreement.

                  9.2.10 Stock of Subsidiaries. Permit any of Borrowers'
Subsidiaries to issue any additional shares of its capital stock except
director's qualifying shares.

                  9.2.11 Bill-and-Hold Sales, Etc. Make a sale to any customer
on a bill-and-hold, guaranteed sale, sale and return, sale on approval or
consignment basis, or any sale on a repurchase or return basis.

                  9.2.12 Restricted Investment. Make or have, or permit any
Subsidiary of Borrowers to make or have, any Restricted Investment.

                  9.2.13 Intentionally Omitted.

                  9.2.14 Tax Consolidation. File or consent to the filing of any
consolidated income tax return with any Person other than a Subsidiary of
Borrowers.

                  9.2.15 Business Locations. Transfer its principal place of
business or chief executive office, or open any new business location or
maintain warehouses other than as set forth on Exhibit C hereto, except upon at
least thirty (30) days prior written notice to Agent and after delivery to Agent
of financing statements if required by Agent in form satisfactory to Agent to
perfect or continue the perfection and priority of Agent's Lien and security
interest hereunder.

                  9.2.16 Guaranties. Except as set forth in Exhibit G hereto,
guaranty, assume, endorse or otherwise, in any way, become directly or
contingently liable with respect to the Indebtedness of any Person except by
endorsement or instrument or items of payment for deposit or collection,
provided, however, that the Borrowers may (a) enter into guaranties in the
ordinary course of business of indebtedness and obligations incurred by Borrower
and their Subsidiaries and (b) make payments (but not prepayments) of principal
and interest when due under the terms of the ESOP Notes to the extent that no
Default or Event of Default shall have occurred and be continuing at the time of
or hereafter giving effect to any such payment (c) guaranties on an unsecured
basis of the obligations of Subsidiaries established to make acquisitions or
investments permitted under Subsection 9.2.1 hereof.

                  9.2.17 Adverse Transactions. Enter into any transaction or
permit any Subsidiary to enter into any transaction, which materially and
adversely affects or may materially adversely affect the Collateral or the
Borrowers' ability to repay the Obligations or permit to agree to any material
extension, compromise or settlement or make any change or modification of any
kind or nature with respect to any Account, including any of the terms relating
thereto, other than discounts and allowances in the ordinary course of business,
all of which shall be reflected in the Schedules of Accounts submitted to Agent
pursuant to Subsection 7.2.1 of this Agreement.

                                      -43-
<PAGE>

                  9.2.18 Subsidiaries. Hereafter create any Subsidiary except as
provided in Subsections 9.2.1 hereof.

                  9.2.19 Change of Business. Enter into any new business or make
any material change in any of Borrowers' business objectives, purposes and
operations.

                  9.2.20 Name of Borrowers. Use any corporate name (other than
its own) or any fictitious name, trade style or "d/b/a" except for the names
disclosed on Exhibit F attached hereto.

                  9.2.21 Use of Agent's or any Lender's Name. Without prior
written consent of Agent or any such Lender , use the name of Agent or any
Lender or the name of any Affiliates of Agent or any such Lender in connection
with any of the Borrowers' business or activities, except in connection with
internal business matters, as required in dealings with governmental agencies
and financial institutions and to trade creditors of the Borrowers solely for
credit reference purposes.

                  9.2.22 Margin Securities. Own, purchase or acquire (or enter
into any contracts to purchase or acquire) any "margin security" as defined by
any regulation of the Federal Reserve Board as now in effect or as the same may
hereafter be in effect unless, prior to any such purchase or acquisition or
entering into any such contract, Agent shall have received an opinion of counsel
satisfactory to Agent that the effect of such purchase or acquisition will not
cause this Agreement to violate regulations (G) or (U) or any other regulations
of the Federal Reserve Board then in effect.

            9.3 Specific Financial Covenants. During the term of this Agreement,
      and thereafter for so long as there are any Obligations to Agent, each
      Borrower covenants that, unless otherwise consented to by Agent in
      writing, it shall:

                  9.3.1 Fixed Charge Coverage Ratio. Maintain a Fixed Charge
Coverage Ratio of not less than 1.5 to 1 calculated at the end of each fiscal
quarter on a rolling four quarter basis.

                  9.3.2 Minimum Net Worth. Maintain a Net Worth of not less than
the amounts set forth below determined at the end of each fiscal quarter:

--------------------------------------------------------------------------------
               Net Worth                           Fiscal Quarter End
               ---------                           ------------------
--------------------------------------------------------------------------------
              $120,000,000                            July 31, 2001
--------------------------------------------------------------------------------
The amount for the prior fiscal quarter   At each fiscal quarter end thereafter
plus fifty percent (50%) of the
Consolidated net earnings (but not
loss) of the Borrowers for the prior
fiscal quarter, as determined in
accordance with GAAP
--------------------------------------------------------------------------------

                                      -44-
<PAGE>

SECTION 10. CONDITIONS PRECEDENT

            10.1 Conditions Precedent to Initial Credit Extensions.
      Notwithstanding any other provision of this Agreement or any of the other
      Loan Documents, and without affecting in any manner the rights of each
      Lender and Agent under the other sections of this Agreement, no Lender
      shall not be required to make the initial Revolving Credit Loans under
      this Agreement unless and until each of the following conditions has been
      and continues to be satisfied:

                  10.1.1 Documentation. Agent and each Lender shall have
received, in form and substance satisfactory to Agent and each such Lender, a
duly executed copy of this Agreement and the other Loan Documents, together with
such additional documents, instruments and certificates as Agent and each Lender
shall require in connection therewith from time to time, all in form and
substance satisfactory to Agent and such Lender and its counsel.

                  10.1.2 No Default. No Default or Event of Default shall exist.

                  10.1.3 Other Loan Documents. Each of the conditions precedent
set forth in the other Loan Documents shall have been satisfied.

                  10.1.4 Availability. Agent shall have determined that
immediately after Lenders have made the initial Loans, and FCC has issued the
initial Letters of Credit and LC Guaranties, contemplated hereby, and all
closing costs incurred in connection with the transactions contemplated hereby
have been paid, Availability shall not be less than $10,000,000.

                  10.1.5 Corporate Documents. The receipt by the Agent of (i)
certified copies of the charter and by-laws (or equivalent constitutional
documents) of each Borrower, (ii) a long-form good standing certificate issued
by the Secretary of State of the jurisdiction of incorporation or organization
of each Borrower and (iii) certified copies of all corporate or partnership
authority for each Borrower (including, without limitation, board of director
resolutions and evidence of the incumbency, including specimen signatures, of
officers) with respect to the execution, delivery and performance of such of the
Loan Documents to which such Borrower is intended to be a party and each other
document to be delivered by such Borrower from time to time in connection
herewith and the extensions of credit hereunder (and the Agent and each Lender
may conclusively rely on such certificate until it receives notice in writing
from such Borrower to the contrary).

                  10.1.6 Borrowing Notice. The receipt by the Agent of the
notice of borrowing required herein.

                  10.1.7 Opinions of Counsel to the Borrowers. The receipt by
the Agent of an opinion, dated the Closing Date, of Cameron & Mittleman LLP,
counsel to the Borrowers and Guarantors, covering such matters as the Agent may
reasonably request.

                  10.1.8 Notes. The receipt by the Agent of Revolving Credit
Notes and SwingLine Note, duly completed and executed for each Lender.

                                      -45-
<PAGE>

                  10.1.9 Repayment of Existing Indebtedness. Evidence that the
principal of and interest on, and all other amounts owing in respect of, the
Indebtedness (including, without limitation, any contingent or other amounts
payable in respect of letters of credit) that is to be repaid on the Closing
Date shall have been (or shall be simultaneously) paid in full, that any
commitments to extend credit under the agreements or instruments relating to
such Indebtedness shall have been canceled or terminated and that all Guarantees
in respect of, and all Liens securing, any such Indebtedness shall have been
released (or arrangements for such release satisfactory to the Required Lenders
shall have been made); in addition, the Agent shall have received from any
Person holding any Lien securing any such Indebtedness, such Uniform Commercial
Code termination statements, mortgage releases and other instruments, in each
case in proper form for recording, as the Agent shall have requested to release
and terminate of record the Liens securing such Indebtedness (or arrangements
for such release and termination satisfactory to the Required Lenders shall have
been made).

                  10.1.10 No Adverse Litigation or Proceeding. No action,
proceeding, investigation, regulation or legislation shall have been instituted,
threatened or proposed before any court, governmental agency or legislative body
to enjoin, restrain or prohibit, or to obtain damages in respect of, or which is
related to or arises out of this Agreement or the consummation of the
transactions contemplated hereby.

                  10.1.11 Consents, Etc. The receipt by the Agent of a
certificate of a senior officer of each Borrower to the effect that, on and as
of the Closing Date, all necessary governmental and third party consents and
approvals in connection with the transactions contemplated by this Agreement
have been obtained and remain in effect and that all applicable waiting periods
have expired.

                  10.1.12 Payment of Fees. The payment by the Borrowers of such
fees as the Borrowers shall have agreed to pay or deliver to any Lender or the
Agent in connection herewith, including, without limitation, any and all
arrangement and administrative, syndication, or documentation fees due to the
Agent, up-front fees due to the Lenders, and the reasonable fees and expenses of
Brown, Rudnick, Freed & Gesmer, special counsel to Agent in connection with the
negotiation, preparation, execution and delivery of this Agreement and the Notes
and the other Loan Documents and the making of the extensions of credit
hereunder (to the extent that statements for such fees and expenses have been
delivered to the Borrowers).

                  10.1.13 Capital Structure. Evidence that the capital structure
of each of the Borrowers is satisfactory to Agent.

                  10.1.14 Due Diligence. Satisfactory completion by Agent of
financial, business, environmental and collateral due diligence including,
without limitation, a collateral exam conducted by Agent or its third party
designee, and satisfactory completion of legal due diligence by Agent's legal
counsel.

                  10.1.15 Labor Relations. All collective bargaining agreements
are in full force and effect and no material grievances, disputes or
controversies exist with any union or any other organization of any of
Borrowers' or any Subsidiary of any Borrower's employees, and

                                      -46-
<PAGE>

there exist no threats of strikes, work stoppages or any asserted or pending
demands for collective bargaining by any union or organization.

                  10.1.16 Financial Statements. Receipt by Agent of all
financial information and projections requested by Agent in form, substance and
detail satisfactory to Agent.

                  10.1.17 Cash Management. Implementation of blocked account and
lockbox agreements and a cash management and collections system satisfactory to
Agent.

                  10.1.18 Satisfaction of Conditions in Other Loan Documents.
Each of the conditions precedent set forth in any other Loan Document shall have
been and shall remain satisfied.

                  10.1.19 No Material Adverse Change. Since the last fiscal year
end of each Borrower, there shall not have occurred any material adverse change
in the business, operations or condition (financial or otherwise) of any
Borrower or any of its Subsidiaries, or the existence or value of any Collateral
or any event, condition or state of facts which would reasonably be expected to
materially and adversely affect the business, operations or conditions
(financial or otherwise) of any Borrower or any of its Subsidiaries.

                  10.1.20 Insurance. Borrowers shall deliver to Agent copies of
Borrowers' casualty insurance policies, together with certificates of insurance
evidencing loss payable endorsements on Agent's standard form of loss payee
endorsement naming Agent as loss payee or mortgagee, as applicable, and
certified copies of Borrowers' liability insurance policies, together with
endorsements showing Agent as an additional insured.

                  10.1.21 Other Documents. Such other documents as the Agent
Lender or counsel to Agent may reasonably request.

            10.2 Conditions Precedent to all Credit Extensions. Notwithstanding
      any other provision of this Agreement or any of the other Loan Documents,
      and without affecting in any manner the rights of Agent and Lenders under
      the other sections of this Agreement, Lenders shall not be required to
      make any Loans or otherwise extend any credit to or for the benefit of
      Borrowers, unless and until each of the following conditions has been and
      continues to be satisfied:

                  10.2.1 No Defaults. No Default or Event of Default shall exist
at the time of, or would result from, the funding of such Loan or other
extension of credit.

                  10.2.2 Representations and Warranties. The representation and
warranties made by Borrowers in this Agreement and in each of the Loan Documents
shall be true and complete in all material respects on and as of the date of
this Agreement and there are no material misstatements or omission contained in
any of the materials provided to Agent or any Lender on behalf of the Borrowers.

                                      -47-
<PAGE>

                  10.2.3 No Litigation. No action, proceeding, investigation,
regulation or legislation shall have been instituted, threatened or proposed
before any court, governmental agency or legislative body to enjoin, restrain or
prohibit, or to obtain damages in respect of, or which is related to or arises
out of, this Agreement or the consummation of the transactions contemplated
hereby.

                  10.2.4 No Material Adverse Effect. No event shall have
occurred and no condition shall exist which has or may be reasonably likely to
have a Material Adverse Effect.

SECTION 11. EVENTS OF DEFAULT; RIGHTS AND REMEDIES ON DEFAULT

            11.1 Events of Default. The occurrence of one or more of the
      following events shall constitute an "Event of Default":

                  11.1.1 Payment of Notes. The Borrowers shall fail to pay any
installment of principal, interest or premium, if any, owing on the Revolving
Credit Notes, on the due date thereof (whether due at stated maturity, on
demand, upon acceleration or otherwise).

                  11.1.2 Payment of Other Obligations. Borrowers shall fail to
pay any of the Obligations that are not evidenced by the Revolving Credit Notes
on the due date thereof (whether due at stated maturity, on demand, upon
acceleration or otherwise).

                  11.1.3 Misrepresentations. Any representation, warranty or
other statement made or furnished to Agent by or on behalf of any Borrower, any
Subsidiary of any Borrower, or any Guarantor in this Agreement, any of the other
Loan Documents or any instrument, certificate or financial statement furnished
in connection with or in reference thereto proves to have been false or
misleading in any material respect when made or furnished or when reaffirmed
pursuant to Section 8.2 hereof.

                  11.1.4 Breach of Specific Covenants. Any Borrowers shall fail
or neglect to perform, keep or observe any covenant contained in Sections 6.3,
7.1.1, 7.2, 7.3, 7.4, 9.1.1, 9.1.3, 9.2 or 9.3 hereof on the date that such
Borrower is required to perform, keep or observe such covenant.

                  11.1.5 Breach of Other Covenants. Any Borrower shall fail or
neglect to perform, keep or observe any covenant contained in this Agreement
(other than a covenant which is dealt with specifically elsewhere in Section
11.1 hereof) and the breach of such other covenant is not cured to Agent's and
the Required Lenders' satisfaction within thirty (30) days after the sooner to
occur of Borrowers' receipt of notice of such breach from Agent or the date on
which such failure or neglect first becomes known to any officer of Borrowers.

                  11.1.6 Default Under Security Documents/Other Agreements. Any
event of default shall occur under, or any Borrower or Guarantor shall default
in the performance or observance of any term, covenant, condition or agreement
contained in, any of the Security Documents or the Other Agreements and such
default shall continue beyond any applicable grace period.

                                      -48-
<PAGE>

                  11.1.7 Other Defaults. There shall occur any default or event
of default on the part of any Borrower under any agreement, document or
instrument to which any Borrower is a party or by which any Borrower or any of
its Property is bound, creating or relating to any Indebtedness (other than the
Obligations) if the payment or maturity of such Indebtedness is accelerated in
consequence of such event of default or demand for payment of such Indebtedness
is made.

                  11.1.8 Uninsured Losses. Any material loss, theft, damage or
destruction of any of the Collateral not fully covered (subject to such
deductibles as Agent shall have permitted) by insurance, or a sale, lease or
encumbrance of any collateral or the making of a levy, seizure, or attachment
thereof or thereon except in all cases as may be specifically permitted by other
provisions of this Agreement.

                  11.1.9 Adverse Changes. There shall occur any material adverse
change in the financial condition or business prospects of Borrowers taken as a
whole.

                  11.1.10 Insolvency and Related Proceedings. Any Borrower or
any Guarantor shall cease to be Solvent or shall suffer the appointment of a
receiver, trustee, custodian or similar fiduciary, or shall make an assignment
for the benefit of creditors, or any petition for an order for relief shall be
filed by or against any Borrower or any Guarantor under the Bankruptcy Code (if
against any Borrower or any Guarantor, the continuation of such proceeding for
more than thirty (30) days), or any Borrower or any Guarantor shall make any
offer of settlement, extension or composition to their respective unsecured
creditors generally.

                  11.1.11 Business Disruption; Condemnation. There shall occur a
cessation of a substantial part of the business of any Borrower, any Subsidiary
of a Borrower or any Guarantor for a period which significantly affects such
Borrower's, Subsidiary's or such Guarantor's capacity to continue its business,
on a profitable basis; or any Borrower, any Subsidiary of a Borrower or any
Guarantor shall suffer the loss or revocation of any license or permit now held
or hereafter acquired by such Borrower, Subsidiary or Guarantor which is
necessary to the continued or lawful operation of its business; or any Borrower
or any Guarantor shall be enjoined, restrained or in any way prevented by court,
governmental or administrative order from conducting all or any material part of
its business affairs; or any material lease or agreement pursuant to which any
Borrower or any Guarantor leases, uses or occupies any Property shall be
canceled or terminated prior to the expiration of its stated term; or any part
of the Collateral shall be taken through condemnation or the value of such
Property shall be impaired through condemnation.

                  11.1.12 Fundamental Change. (a) There shall occur a
Fundamental Change with respect to UNF. A Fundamental Change shall mean any of
the following:

                  (i) a "person" or "group" (within the meaning of Sections
13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")), becoming the "beneficial owner" (as defined in Rule 13d-3
under the Exchange Act) of Voting Stock of UNF entitled to exercise more than
50% of the total voting power of all outstanding Voting Stock of

                                      -49-
<PAGE>

UNF (including any right to acquire Voting Stock that are not then outstanding
of which such person or group is deemed the beneficial owner); or

                  (ii) a change in the Board of Directors in which the
individuals who constituted the Board of Directors at the beginning of the
one-year period immediately preceding such change (together with any other
director whose election by the Board of Directors or whose nomination for
election by the shareholders of UNF was approved by a vote of at least
two-thirds of the directors then in office who either were directors at the
beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason to constitute a majority of the
directors then in office; or

                  (iii) any consolidation of UNF with, or merger of UNF into,
any other Person, any merger of another Person into UNF, or any sale or transfer
of all or substantially all of the assets of UNF to another Person (other than
(v) a merger which does not result in any reclassification, conversion, exchange
or cancellation of outstanding shares of capital stock, (w) a merger which is
effected solely to change the jurisdiction of incorporation of UNF, (x) any
consolidation with or merger of UNF into a Subsidiary of UNF, or any sale or
transfer by UNF of all or substantially all of its assets to one or more of its
Subsidiaries, in any one transaction or a series of transactions, provided, in
any such case, that the resulting corporation or each such Subsidiary assumes
the Obligations under the Loan Documents; or (y) a merger or consolidation in
which the holders of UNF's Voting Stock immediately prior to such event continue
to hold more than 50% of the Voting Stock outstanding immediately after such
event; or (z) a transaction permitted under subsection 9.2.1); or

                  (iv) a change in Control or any change in the ownership of any
Borrower other than UNF of any Subsidiary of any Borrower shall occur such that
UNF shall cease to own and control directly or indirectly 100% of the issued and
outstanding voting stock (or membership interest if such Borrower or Subsidiary
is a limited liability company).

                  11.1.13 ERISA. A Reportable Event shall occur which Required
Lenders or Agent, in their sole discretion, shall determine in good faith
constitutes grounds for the termination by the Pension Benefit Guaranty
Corporation of any Plan or for the appointment by the appropriate United States
district court of a trustee for any Plan, or if any Plan shall be terminated or
any such trustee shall be requested or appointed, or if any Borrower, any
Subsidiary of any Borrower or any Guarantor is in "default" (as defined in
Section 4219(c)(5) of ERISA) with respect to payments to a Multi-employer Plan
resulting from Borrower's, such Subsidiary's or such Guarantor's complete or
partial withdrawal from such Plan.

                  11.1.14 Challenge to Agreement. Any Borrower, any Subsidiary
of any Borrower or any Guarantor, or any Affiliate of any of them, shall
challenge or contest in any action, suit or proceeding the validity or
enforceability of this Agreement, or any of the other Loan Documents, the
legality or enforceability of any of the Obligations or the perfection or
priority of any Lien granted to Agent.

                  11.1.15 Repudiation of or Default Under Guaranty Agreement.
Any Guarantor shall revoke or attempt to revoke the Guaranty Agreement signed by
such Guarantor,

                                      -50-
<PAGE>

or shall repudiate such Guarantor's liability thereunder or shall be in default
under the terms thereof.

                  11.1.16 Criminal Forfeiture. Any Borrower, any Subsidiary of
any Borrower or any Guarantor shall be criminally indicted or convicted under
any law that could lead to a forfeiture of any Property of any Borrower, any
Subsidiary of any Borrower or any Guarantor.

                  11.1.17 Judgments. Any money judgment, writ of attachment or
similar process is filed against any Borrower, any Subsidiary of any Borrower,
or any of their respective Property in an amount in excess of $250,000 and such
judgment, attachment, or similar process is not satisfied or stayed on appeal
within thirty (30) days.

            11.2 Acceleration of the Obligations. Without in any way limiting
      the right of Agent to demand payment of any portion of the Obligations
      payable on demand in accordance with Section 3.2 hereof, upon or at any
      time after the occurrence of an Event of Default, and for so long as such
      Event of Default may exist, Agent may at its discretion (and, upon written
      instructions to do so from the Required Lender, shall) declare all or any
      portion of the Obligations to be whereupon the same shall become without
      presentment, demand, protest or further notice, at once due and payable
      and Borrowers shall forthwith pay to Agent for the Pro Rata benefit of
      Lenders, the full amount of such Obligations, provided, that upon the
      occurrence of an Event of Default specified in subsection 11.1.10 hereof,
      all of the Obligations shall become automatically due and payable without
      declaration, notice or demand by Agent or Required Lenders.

            11.3 Other Remedies. Upon and after the occurrence of an Event of
      Default, Agent may in its discretion (and, upon receipt of written
      direction of Required Lenders shall) exercise from time to time the
      following other rights and remedies:

                  11.3.1 All of the rights and remedies of a secured party under
the UCC or under other applicable law, and all other legal and equitable rights
to which Agent may be entitled, all of which rights and remedies shall be
cumulative and shall be in addition to any other rights or remedies contained in
this Agreement or any of the other Loan Documents, and none of which shall be
exclusive.

                  11.3.2 The right to take immediate possession of the
Collateral, and to (i) require Borrowers to assemble the Collateral, at
Borrowers' expense, and make it available to Agent at a place designated by
Agent which is reasonably convenient to the parties, and (ii) enter any premises
where any of the Collateral shall be located and to keep and store the
Collateral on said premises until sold (and if said premises be the Property of
Borrowers, Borrowers agree not to charge Agent or Lenders for storage thereof).

                  11.3.3 The right to sell or otherwise dispose of all or any
Collateral in its then condition, or after any further manufacturing or
processing thereof, at public or private sale or sales, with such notice as may
be required by law, in lots or in bulk, for cash or on credit, all as Agent, in
its sole discretion, may deem advisable. Agent may, at Agent's option, disclaim
any

                                      -51-
<PAGE>

and all warranties regarding the Collateral in connection with any such sale.
Borrowers agree that ten (10) days written notice to Borrowers of any public or
private sale or other disposition of Collateral shall be reasonable notice
thereof, and such sale shall be at such locations as Agent may designate in said
notice. Agent shall have the right to conduct such sales on Borrowers' premises,
without charge therefore, and such sales may be adjourned from time to time in
accordance with applicable law. Agent shall have the right to sell, lease or
otherwise dispose of the Collateral, or any part thereof, for cash, credit or
any combination thereof, and Agent may purchase all or any part of the
Collateral at public or, if permitted by law, private sale and, in lieu of
actual payment of such purchase price, may set off the amount of such price
against the Obligations. The proceeds realized from the sale of any Collateral
may be applied, after allowing two (2) Business Days for collection, first to
the costs, expenses and attorneys' fees incurred by Agent and Lenders in
collecting the Obligations, in enforcing the rights of Lenders under the Loan
Documents and in collecting, retaking, completing, protecting, removing,
storing, advertising for sale, selling and delivering any Collateral; second to
the interest due upon any of the Obligations; and third, to the principal of the
Obligations. If any deficiency shall arise, each Borrower and each Guarantor
shall remain jointly and severally liable to Lenders therefore.

                  11.3.4 Agent is hereby granted a license or other right to
use, without charge, Borrowers' labels, patents, copyrights, rights of use of
any name, trade secrets, trade names, trademarks and advertising matter,
software and associated materials and information or any Property of a similar
nature, as it pertains to the Collateral, in advertising for sale and selling
any Collateral and Borrowers' rights under all licenses and all franchise
agreements shall inure to each Lender's benefit.

                  11.3.5 Agent may, at its option, require Borrowers to deposit
with Agent funds equal to the LC Amount and, if Borrowers fail to promptly make
such deposit, Lenders may advance such amount as a Base Rate Advance (whether or
not an Overadvance is created thereby). Any such deposit or advance shall be
held by Agent as a reserve to fund future payments on such LC Guaranties and
future drawings against such Letters of Credit. At such time as all LC
Guaranties have been paid or terminated and all Letters of Credit have been
drawn upon or expired, any amounts remaining in such reserve shall be applied
against any outstanding Obligations, or, if all Obligations have been
indefeasibly paid in full, returned to Borrowers.

                  11.3.6 Each Borrower and each Guarantor hereby grants to
Agent, each Lender, the Bank and each Participating Lender a lien, security
interest and right of setoff as security for all Obligations, whether now
existing or hereafter arising, upon and against all deposits, credits,
Collateral or other Property, now or hereafter in the possession, custody,
safekeeping or control of Agent, any Lender, any Participating Lender, Bank or
any Affiliate of any of the foregoing, or in transit to any of them. At any time
upon and during the continuance of an Event of Default, without demand or
notice, Agent, any Lender, and any Participating Lender may set off the same or
any part thereof or cause such set off to occur and apply the same to any
liability or obligation of Borrowers and any Guarantor even though unmatured and
regardless of the adequacy of any other Collateral securing the Obligations.
Notwithstanding the foregoing, Agent and each Lender and Participating Lender
agree with each other that it shall share any such set off on a Pro Rata basis
with the Agent, other Lenders and Participating Lenders. ANY AND ALL RIGHTS TO
REQUIRE AGENT, ANY LENDER OR ANY PARTICIPATING LENDER TO EXERCISE

                                      -52-
<PAGE>

ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE
OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH
DEPOSITS, CREDITS OR OTHER PROPERTY OF ANY BORROWER OR ANY GUARANTOR, ARE HEREBY
KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

                  11.3.7 Agent may (and upon the direction of the Required
Lenders, shall) appoint, remove and reappoint or cause to be appointed, removed
and reappointed any person or persons, including an employee or agent of Agent,
to be a receiver (the "Receiver") which term shall include a receiver and
manager of, or agent for, all or any part of the Collateral. Any such Receiver
shall, as far as concerns responsibility for his acts, be deemed to be the agent
of Borrowers and not of Agent, and Agent shall not in any way be responsible for
any misconduct, negligence or malfeasance of such Receiver, his employees or
agents. Except as otherwise directed by Agent, all money received by such
Receiver shall be received in trust for and paid to Agent. Such Receiver shall
have all of the powers and rights of Agent described in this Section 11. Agent
may, either directly or through its agents or nominees, exercise any or all
powers and rights of a Receiver.

            11.4 Remedies Cumulative. All covenants, conditions, provisions,
      warranties, guaranties, indemnities, and other undertakings of Borrowers
      contained in this Agreement and the other Loan Documents, or in any
      document referred to herein or contained in any agreement supplementary
      hereto or in any exhibit or schedule or in any Guaranty Agreement given to
      Agent or Lenders or contained in any other agreement between Agent,
      Lenders, and Borrowers, heretofore, concurrently, or hereafter entered
      into, shall be deemed cumulative to and not in derogation or substitution
      of any of the terms, covenants, conditions, or agreements of Borrowers
      herein contained. The failure or delay of Agent or Lenders to require
      strict performance by Borrowers of any provision of this Agreement or to
      exercise or enforce any rights, Liens, powers, or remedies hereunder or
      under any of the aforesaid agreements or other documents or security or
      Collateral shall not operate as a waiver of such performance, Liens,
      rights, powers and remedies, but all such requirements, Liens, rights,
      powers, and remedies shall continue in full force and effect until all
      Loans and all other Obligations owing or to become owing from Borrowers to
      Agent and Lenders shall have been fully satisfied. None of the
      undertakings, agreements, warranties, covenants and representations of
      Borrower contained in this Agreement or any of the other Loan Documents
      shall be deemed to have been suspended or waived by Agent unless such
      suspension or waiver is by an instrument in writing specifying such
      suspension or waiver is by an instrument in writing and is signed by a
      duly authorized representative of Agent and, where required, Lenders, and
      is directed to Borrowers.

SECTION 12. AGENT

            12.1 Appointment, Powers and Immunities. Each Lender hereby appoints
      and authorizes the Agent to act as its agent hereunder and under the other
      Loan Documents with such powers as are specifically delegated to the Agent
      by the terms of this Agreement and of the other Loan Documents, together
      with such other powers as are reasonably incidental thereto. The Agent
      (which term, as used in this sentence, shall include reference

                                      -53-
<PAGE>

      to its affiliates and to the officers, directors, employees and agents of
      the Agent and its affiliates):

                  12.1.1 Duties; Responsibilities. shall have no duties or
responsibilities except those expressly set forth in this Agreement and in the
other Loan Documents, and shall not by reason of this Agreement or any other
Loan Document be a trustee for any Lender;

                  12.1.2 Recitals, Statements, Presentations, Warranties. shall
not be responsible to the Lenders for any recitals, statements, presentations or
warranties contained in this Agreement or in any other Loan Document, or in any
certificate or other document referred to or provided for in, or received by any
of them under, this Agreement or any other Loan Document, or for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement, any Note or any other Loan Document or any other document referred to
or provided for herein or therein or for any failure by any Borrower or any
other Person to perform any of its obligations hereunder or thereunder;

                  12.1.3 Litigation; Collection Proceedings. shall not, except
to the extent expressly instructed by the Required Lenders, be required to
initiate or conduct any litigation or collection proceedings hereunder or under
any other Loan Document; and

                  12.1.4 Actions or Omissions. shall not be responsible for any
action taken or omitted to be taken by it hereunder or under any other Loan
Document or under any other document or instrument referred to or provided for
herein or therein or in connection herewith or therewith, except for its own
gross negligence, bad faith or willful misconduct.

      The Agent may employ agents and attorneys-in-fact and shall not be
responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it in good faith. The Agent may deem and treat the
payee of a Note as the holder thereof for all purposes hereof unless and until a
notice of the assignment or transfer thereof shall have been filed with the
Agent, together with the consent of the Borrowers to such assignment or transfer
(to the extent provided in Section 12.10 hereof).

            12.2 Reliance by Agent. The Agent shall be entitled to rely upon any
      certification, notice or other communication (including, without
      limitation, any thereof by telephone, telecopy, telegram or cable)
      believed by it to be genuine and correct and to have been signed or sent
      by or on behalf of the proper Person or Persons, and upon advice and
      statements of legal counsel, independent accountants and other experts
      selected by the Agent. As to any matters not expressly provided for by
      this Agreement or any other Loan Document, the Agent shall in all cases be
      fully protected in acting, or in refraining from acting, hereunder or
      thereunder in accordance with instructions given by the Required Lenders
      or, if provided herein, in accordance with the instructions given by all
      of the Lenders as is required in such circumstance, and such instructions
      of such Lenders and any action taken or failure to act pursuant thereto
      shall be binding on all of the Lenders.

            12.3 Defaults. Except with respect to Events of Default consisting
      of the failure to make regularly scheduled interest payments hereunder or
      the failure to repay all

                                      -54-
<PAGE>

      Revolving Credit Loans on the Revolving Credit Commitment Termination
      Date, the Agent shall not be deemed to have knowledge or notice of the
      occurrence of a Default unless the Agent has received notice from a Lender
      or the Borrowers specifying such Default and stating that such notice is a
      "Notice of Default". In the event that the Agent receives notice of the
      occurrence of a Default, the Agent shall give prompt notice thereof to the
      Lenders. The Agent shall (subject to Sections 12.1 and 12.7 hereof) take
      such action with respect to such Default as shall be directed by the
      Required Lenders or all the Lenders (as provided in Section 13.3(vii)),
      provided that, unless and until the Agent shall have received such
      directions, the Agent may but shall not be obligated to take such action,
      or refrain from taking such action, with respect to such Default as it
      shall deem advisable in the best interest of the Lenders except to the
      extent that this Agreement expressly requires that such action be taken,
      or not be taken, only with the consent or upon the authorization of the
      Required Lenders or all of the Lenders.

            12.4 Rights as a Lender. With respect to its Commitments and the
      Loans made by it, FCC (and any successor acting as Agent) in its capacity
      as a Lender hereunder shall have the same rights and powers hereunder as
      any other Lender and may exercise the same as though it were not acting as
      Agent, and the term "Lender" or "Lenders" shall, unless the context
      otherwise indicates, include the Agent in its individual capacity. FCC
      (and any successor acting as Agent) and its affiliates may (without having
      to account therefor to any Lender) accept deposits from, lend money to,
      make investments in and generally engage in any kind of banking, trust or
      other business with the Borrowers (and any of their Subsidiaries or
      Affiliates) as if it were not acting as Agent, and FCC (and any such
      successor) and its respective affiliates may accept fees and other
      consideration from the Borrowers for services in connection with this
      Agreement or otherwise without having to account for the same to the
      Lenders.

            12.5 Indemnification. The Lenders agree to indemnify the Agent (to
      the extent not reimbursed under Section 13.2 hereof, but without limiting
      the obligations of the Borrowers under said Section 13.2) ratably in
      accordance with their respective Commitments, for any and all liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses or disbursements of any kind and nature whatsoever that may be
      imposed on, incurred by or asserted against the Agent (including by any
      Lender) arising out of or by reason of any investigation in or in any way
      relating to or arising out of this Agreement or any other Loan Document or
      any other documents contemplated by or referred to herein or therein or
      the transactions contemplated hereby or thereby (including, without
      limitation, the costs and expenses that the Borrowers are obligated to pay
      under Section 13.2 hereof, but excluding, unless a Default has occurred
      and is continuing, normal administrative costs and expenses incident to
      the performance of its agency duties hereunder) or the enforcement of any
      of the terms hereof or thereof or of any such other documents, provided
      that no Lender shall be liable for any of the foregoing to the extent they
      arise from the gross negligence or willful misconduct of the person to be
      indemnified.

            12.6 Non-Reliance on Agent and Other Lenders. Each Lender agrees
      that it has, independently and without reliance on the Agent or any other
      Lender, and based on such documents and information as it has deemed
      appropriate, made its own credit analysis

                                      -55-
<PAGE>

      of the Borrowers and decision to enter into this Agreement and that it
      will, independently and without reliance upon the Agent or any other
      Lender, and based on such documents and information as it shall deem
      appropriate at the time, continue to make its own analysis and decisions
      in taking or not taking action under this Agreement or under any other
      Loan Document. The Agent shall not be required to keep itself informed, as
      to the performance or observance by any Borrower of this Agreement or any
      of the other Loan Documents or any other document referred to or provided
      for herein or therein or to inspect the Properties or books of any
      Borrower. Except for notices, reports and other documents and information
      expressly required to be furnished to the Lenders by the Agent hereunder,
      the Agent shall not have any duty or responsibility to provide any Lender
      with any credit or other information concerning the affairs, financial
      condition or business of any Borrower (or any of their respective
      affiliates) that may come into the possession of the Agent or any of its
      affiliates.

            12.7 Failure to Act. Except for action expressly required of Agent
      hereunder and under the other Loan Documents, the Agent shall in all cases
      be fully justified in failing or refusing to act hereunder and thereunder
      unless it shall receive further assurances to its satisfaction from the
      Lenders of their indemnification obligations under Section 12.5 hereof
      against any and all liability and expense that may be incurred by it by
      reason of taking or continuing to take any such action.

            12.8 Resignation or Removal of Agent. Subject to the appointment and
      acceptance of a successor Agent as provided below, the Agent may resign at
      any time by giving notice thereof to the Lenders and the Borrowers. The
      Agent may be removed as Agent hereunder upon the written consent of all
      Lenders exclusive of the Agent upon the following: (i) willful misconduct
      in the performance of the Agent's duties or responsibilities under this
      Agreement as finally determined by a court of competent jurisdiction; (ii)
      if a receiver, trustee or conservator is appointed for the Agent or any
      state or federal regulatory authority assumes management or control of the
      Agent or if, under applicable law, the administrative or discretionary
      duties of the Agent hereunder become controlled by or subject to the
      approval of any state or federal regulatory authority; or (iii) in the
      event that Agent, in its capacity as a Lender, shall hold the lesser of
      $22,500,000 or fifteen percent (15%) of the Commitments for the Total
      Credit Facility. Upon any such resignation or removal, the Required
      Lenders shall have the right to appoint a successor Agent to such capacity
      (and in that connection, so long as no Event of Default shall have
      occurred and be continuing, subject to the consent of the Borrowers, not
      to be unreasonably withheld or delayed). If no successor Agent shall have
      been so appointed by the Required Lenders and shall have accepted such
      appointment within thirty (30) days after such removal or the retiring
      Agent's giving of notice of resignation then the retiring Agent may, on
      behalf of the Lenders, appoint a successor Agent to such capacity, that
      shall be a bank with a combined capital and surplus of at least
      $250,000,000 (and in that connection, so long as no Event of Default shall
      have occurred and be continuing, subject to the consent of the Borrowers,
      not to be unreasonably withheld or delayed)). Upon the acceptance of any
      appointment as Agent hereunder by a successor Agent, (a) such successor
      Agent shall thereupon succeed to and become vested with all the rights,
      powers, privileges and duties of the retiring Agent and (b)

                                      -56-
<PAGE>

      the retiring Agent shall be discharged from its duties and obligations
      hereunder. After any retiring Agent's resignation or removal hereunder as
      Agent, the provisions of this Section 12 shall continue in effect for its
      benefit in respect of any actions taken or omitted to be taken by it while
      it was acting as the Agent.

            12.9 Consents under Other Loan Documents. Except as provided in
      Section 13.3 hereof, the Agent may, with the prior consent of the Required
      Lenders (but not otherwise), consent to any modification, supplement or
      waiver under any of the other Loan Documents.

            12.10 Assignments and Participations.

                  12.10.1 Borrowers. No Borrower may assign any of its rights or
obligations hereunder or under the Notes or the other Loan Documents without the
prior consent of all of the Lenders and the Agent.

                  12.10.2 Lenders. Each Lender may assign any of its Loans, its
Note and its Commitment but only with the consent of the Borrowers and the
Agent; provided that

                        (i) no such consent by the Borrowers or the Agent shall
                  be required in the case of any assignment to an Affiliate of
                  any Lender, and no such consent by the Borrowers shall be
                  required in the case of any assignment effected while a
                  Default or an Event of Default has occurred and is continuing;

                        (ii) except to the extent the Borrowers and the Agent
                  shall otherwise consent, any such partial assignment (other
                  than to another Lender) shall be in an amount at least equal
                  to $5,000,000;

                        (iii) upon each such assignment, the assignor and
                  assignee shall deliver to the Borrowers and the Agent a Notice
                  of Assignment;

                        (iv) no consent required of the Borrowers or the Agent
                  under this Section 12.10 shall be unreasonably withheld or
                  delayed; and

                        (v) upon such assignment the assignor shall pay to the
                  Agent for its own account an assignment fee in the amount of
                  $3,500.00.

                  Upon execution and delivery by the assignor and the assignee
to the Borrowers and the Agent of such Notice of Assignment and upon the consent
thereto by the Borrowers and the Agent, the assignment shall be effective and
the assignee shall have, to the extent of such assignment (unless otherwise
consented to by the Borrowers and the Agent), the obligations, rights and
benefits of a Lender hereunder holding the Commitment(s) and Loans (or portions
thereof) assigned to it and specified in such Notice of Assignment (in addition
to the Commitment(s) and Loans, if any, theretofore held by such assignee) and
the assigning Lender shall, to the extent of such assignment, be released from
the Commitment(s) (or portion(s) thereof) so assigned.

                                      -57-
<PAGE>

                  12.10.3 Participants. Each Lender shall have the unrestricted
right at any time and from time to time, and without the consent of or notice to
the Borrowers, the Agent, or any other Lender, to grant to one or more banks or
other financial institutions (each, a "Participant") participating interests in
such Lender's obligations to lend hereunder and/or any or all of the Loans held
by such Lender hereunder. In the event of any such grant by a Lender of a
participating interest to a Participant, whether or not upon notice to the
Borrowers, the Agent, or any other Lender, (i) such Lender shall be responsible
for the performance of its obligations hereunder and the Borrowers, Agent, and
other Lenders shall continue to deal solely and directly with such Lender in
connection with the Agent's and Lenders' rights and obligations hereunder; (ii)
each such Participant shall be entitled to the benefit of the cost protection
and setoff provisions set forth herein.

                  12.10.4 Additional Permitted Assignments and Participations.
In addition to the assignments and participations permitted under the foregoing
provisions of this Section 12.10, any Lender may (without notice to the
Borrowers, the Agent or any other Agent or Lender and without payment of any
fee) (i) assign and pledge all or any portion of its Loans, and Notes to any
Federal Reserve Bank as collateral security pursuant to Regulation A and any
Operating Circular issued by such Federal Reserve Bank; and (ii) assign all or
any portion of its rights under this Agreement and its Loans, and Note to an
Affiliate of such Lender provided that the Borrowers shall not be required to
pay any increase in the cost of borrowing as a result of such assignment and
LIBOR Advances must continue to be made available by such Assignee.

                  12.10.5 Information. A Lender may furnish any information
concerning the Borrowers in the possession of such Lender from time to time to
assignees and participants (including prospective assignees and participants).
Each Borrower agrees that it will use its best efforts to assist and cooperate
with any Lender in any manner reasonably requested by any such Lender to effect
the sale of participations in or assignments of any of the Loan Documents or any
portion thereof or interest therein, including, without limitation, assisting in
the preparation of appropriate disclosure documents

                  12.10.6 No Assignments to Borrowers or Affiliates. Anything in
this Section 12.10 to the contrary notwithstanding, no Lender may assign or
participate any interest in any Commitment or Loan held by it hereunder to any
Borrower or any of its respective Affiliates or Subsidiaries, and Borrowers
shall not, and shall not permit any of their Subsidiaries to, acquire any such
interest in any Commitment or Loan, without the prior consent of each Lender.

SECTION 13. MISCELLANEOUS

            13.1 Power of Attorney. Each Borrower hereby irrevocably designates,
      makes, constitutes and appoints Agent (and all Persons designated by
      Agent) as such Borrower's true and lawful attorney (and agent-in-fact) and
      Agent may, without notice to such Borrower and in either of such
      Borrower's or Agent's name, but at the cost and expense of Borrowers:

                  13.1.1 At such time or times as Agent, in its sole discretion,
may determine, endorse such Borrower's name on any checks, notes, acceptances,
drafts, money orders or any

                                      -58-
<PAGE>

other evidence of payment or proceeds of the Collateral which come into the
possession of Lender or Agent or under Agent's or any Lender's control.

                  13.1.2 At such time or times upon or after the occurrence of
an Event of Default as Agent in its sole discretion may determine: (i) demand
payment of the Accounts from the Account Debtors, enforce payment of the
Accounts by legal proceedings or otherwise, and generally exercise all of
Borrowers' rights and remedies with respect to the collection of the Accounts;
(ii) settle, adjust, compromise, discharge or release any of the Accounts or
other Collateral or any legal proceedings brought to collect any of the Accounts
or other Collateral; (iii) sell or assign any of the Accounts and other
Collateral upon such terms, for such amounts and at such time or times as Agent
deem advisable and, at Agent's option, with all warranties regarding the
Collateral disclaimed; (iv) take control, in any manner, of any item of payment
or proceeds relating to any Collateral; (v) prepare, file and sign Borrowers'
name to a proof of claim in bankruptcy or similar document against any Account
Debtor or to any notice of lien, assignment or satisfaction of lien or similar
document in connection with any of the Collateral; (vi) receive, open and
dispose of all mail addressed to Borrowers and to notify postal authorities to
change the address for delivery thereof to such address as Agent may designate;
(vii) endorse the name of Borrowers upon any of the items of payment or proceeds
relating to any Collateral and deposit the same to the account of Agent for the
benefit of Lenders on account of the Obligations; (viii) endorse the name of
Borrowers upon any chattel paper, document, instrument, invoice, freight bill,
bill of lading or similar document or agreement relating to the Accounts,
Inventory and any other Collateral; (ix) use Borrowers' stationery and sign the
name of Borrowers to verifications of the Accounts and notices thereof to
Account Debtors; (x) use the information recorded on or contained in any data
processing equipment and computer hardware and software relating to the
Accounts, Inventory, Equipment and any other Collateral; (xi) make and adjust
claims under policies of insurance; and (xii) do all other acts and things
necessary, in Agent's determination, to fulfill Borrowers' obligations under
this Agreement.

            13.2 Indemnity. Borrowers hereby agree to indemnify the Agent, each
      Lender, their affiliates and their respective directors, officers,
      employees, attorneys and agents from, and hold each of them harmless from
      and against any liability, loss, damage, suit, action or proceeding ever
      suffered or incurred by any of them (including reasonable attorneys fees
      and legal expenses) as the result of Borrowers' failure to observe,
      perform or discharge Borrowers' duties hereunder or under any of the Loan
      Documents or the transactions contemplated thereby. In addition, Borrowers
      shall defend the Agent, each Lender, their affiliates and their respective
      directors, officers, employees, attorneys and agents from, against and
      save them harmless from all claims of any Person with respect to the
      Collateral or under the Loan Documents or the transactions contemplated
      thereby. Without limiting the generality of the foregoing, these
      indemnities shall extend to any claims asserted against Agent or any
      Lender by any Person under any Environmental Laws or similar laws by
      reason of Borrowers' or any other Person's failure to comply with laws
      applicable to solid or hazardous waste materials or other toxic
      substances. Notwithstanding any contrary provision in this Agreement, the
      obligation of Borrowers under this Section 13.2 shall survive the payment
      in full of the Obligations and the termination of this Agreement.

                                      -59-
<PAGE>

            13.3 Modification of Agreement. This Agreement may not be modified,
      altered or amended, except by an agreement in writing signed by the Agent,
      the Borrowers and the Required Lenders, or by the Borrowers and the Agent
      acting with the consent of the Required Lenders, and any provision of this
      Agreement may be waived by the Required Lenders and the Agent or by the
      Agent acting with the consent of the Required Lenders; provided that: (a)
      no modification, supplement or waiver shall, unless by an instrument
      signed by all of the Lenders or by the Agent acting with the consent of
      all of the Lenders: (i) increase, or extend the term of any of the
      Commitments, (ii) reduce the rate at which interest is payable on the
      Loans, (iii) alter the dates specified for payment of principal and
      interest on the Loans or the rights or obligations of the Borrowers to
      prepay Loans or extend the Maturity Date, (iv) alter the terms of this
      Section 13.3, (v) modify the definition of the term "Required Lenders", or
      modify in any other manner the number or percentage of the Lenders
      required to make any determinations or waive any rights hereunder or to
      modify any provision hereof, (vi) release all or any substantial portion
      of the Collateral (except as required under the terms of the Loan
      Documents), (vii) modify or amend subsection 1.1.3 relating to use of
      proceeds; (viii) waive any Event of Default arising out of the failure to
      timely pay principal and interest on the Loans or any fee payable to the
      Lenders hereunder or waive any Event of Default relating to any
      unauthorized disposition of any material Collateral; or (ix) or release
      any Borrower or any Guarantor; and (b) any modification or supplement of
      Section 12 hereof shall require the consent of the Agent.

                  In the event that Agent or the Required Lenders request the
consent of any Lender to any approval, consent, amendment, waiver or other
action under this Agreement or with respect to the Loans, and such Lender (a
"Non-Consenting Lender") fails to timely give its consent then any Lender which
does timely consent to such approval, consent, amendment, waiver or other action
(a "Consenting Lender") shall have the right, but not the obligation, in its
respective, sole and absolute discretion, to acquire (x) for no cash
consideration (pro rata, based on the respective Commitments of those Consenting
Lenders electing to exercise such right) the Non-Consenting Lender's Commitment
to fund future Revolving Credit Loans; and (y) for consideration equal to the
amount of the outstanding Revolving Credit Loans from such Non-Consenting Lender
(pro rata, based on the respective Commitments of those Consenting Lenders
electing to exercise such right) the Non-Consenting Lender's rights with respect
to outstanding Revolving Credit Loans (the rights purchased under clauses (x)
and (y), the "Acquired Rights"), but only if, in the aggregate, all of the
Non-Consenting Lender's rights with respect to outstanding Revolving Credit
Loans and Commitments are acquired hereunder by on or more Consenting Lenders.
Upon any such purchase of the pro rata share of any Non-Consenting Lender's
Acquired Rights, the Non-Consenting Lender's rights with respect to outstanding
Revolving Credit Loans, Commitment, share in future Revolving Credit Loans, and
rights under Loan Documents with respect thereto shall terminate on the day of
purchase (other than indemnification rights that survive termination of the
Commitments under Section 13.2 hereof and rights to receive accrued by unpaid
interest and fees through the date of purchase), and the Non-Consenting Lender
shall promptly execute all documents reasonably requested to surrender and
transfer such interests (other than indemnification rights that survive
termination of the Commitments under Section 13.2 hereof and rights to receive
accrued by unpaid interest and fees

                                      -60-
<PAGE>

through the date of purchase), including, if so requested a Notice of Assignment
(provided that the assignment fee in connection with such Notice of Assignment
shall not be charged).

            13.4 Severability. Wherever possible, each provision of this
      Agreement shall be interpreted in such manner as to be effective and valid
      under applicable law, but if any provision of this Agreement shall be
      prohibited by or invalid under applicable law, such provision shall be
      ineffective only to the extent of such prohibition or invalidity, without
      invalidating the remainder of such provision or the remaining provisions
      of this Agreement.

            13.5 Successors and Assigns. Subject to the provisions of Section
      12.10 hereof, this Agreement, the Other Agreements and the Security
      Documents shall be binding upon and inure to the benefit of the successors
      and assigns of Borrowers, Agent and Lenders.

            13.6 Cumulative Effect; Conflict of Terms. The provisions of the
      Other Agreements and the Security Documents are hereby made cumulative
      with the provisions of this Agreement. Except as otherwise provided in
      Section 3.2 hereof and except as otherwise provided in any of the other
      Loan Documents by specific reference to the applicable provision of this
      Agreement, if any provision contained in this Agreement is in direct
      conflict with, or inconsistent with, any provision in any of the other
      Loan Documents, the provision contained in this Agreement shall govern and
      control.

            13.7 Execution in Counterparts. This Agreement may be executed in
      any number of counterparts and by different parties hereto in separate
      counterparts, each of which when so executed and delivered shall be deemed
      to be an original and all of which counterparts taken together shall
      constitute but one and the same instrument.

            13.8 Notice. Except as otherwise provided herein, all notices,
      requests and demands to or upon a party hereto, to be effective, shall be
      in writing and shall be sent by certified or registered mail, return
      receipt requested, by personal delivery against receipt, by overnight
      courier or by facsimile and, unless otherwise expressly provided herein,
      shall be deemed to have been validly served, given or delivered
      immediately when delivered against receipt, one (1) Business Day after
      deposit in the mail, postage prepaid, or with an overnight courier or, in
      the case of facsimile notice, when sent, addressed as follows:

      If to Agent:                 c/o Fleet Capital Corporation

                                   200 Glastonbury Boulevard
                                   Glastonbury, Connecticut  06033
                                   Attention: Loan Administration Manager
                                   Facsimile No.: (860) 657-7759

                                      -61-
<PAGE>

      With a copy to:              Brown Rudnick Freed & Gesmer, P.C.
                                   One Financial Center
                                   Boston, MA 02111
                                   Attention: Jeffery L. Keffer, Esq.
                                   Facsimile No.: (617) 856-8201

      If to Borrowers:             United Natural Foods, Inc.
                                   260 Lake Road
                                   Dayville, CT 06241
                                   Attention: Todd Weintraub, Chief Financial
                                   Officer
                                   Facsimile No.: (860) 779-5678

      With a copy to:              Cameron & Mittleman LLP
                                   56 Exchange Terrace
                                   Providence, RI  02903
                                   Attention:  Joseph F. Whinery, Esq.
                                   Facsimile No.: (401) 331-5787

      If to any Lender:            To the address set forth on the signature
                                   page hereto, or on the Notice of Assignment
                                   executed by such Lender, whichever is
                                   applicable.

or to such other address as each party may designate for itself by notice given
in accordance with this Section 13.8; provided, however, that any notice,
request or demand to or upon Agent pursuant to subsection 3.1.1 or 5.2.2 hereof
shall not be effective until received by Agent.

            13.9 Credit Inquiries. Borrowers hereby authorize and permit Agent
      or any Lender to respond to usual and customary credit inquiries from
      third parties concerning Borrowers or any of their Subsidiaries or any
      Guarantor.

            13.10 Time of Essence. Time is of the essence of this Agreement, the
      Other Agreements and the Security Documents.

            13.11 Joint and Several Liability. All Loans, Letters of Credit and
      LC Guaranties made or issued hereunder are made to or for the benefit of
      each of the Borrowers. The Borrowers are jointly and severally, directly
      and primarily liable for the full and indefeasible payment when due and
      performance of all Obligations and for the prompt and full payment and
      performance of all of the promises, covenants, representations, and
      warranties made or undertaken by each Borrower under this Agreement and
      the Loan Documents and Borrowers agree that such liability is independent
      of the duties, obligations, and liabilities of each of the joint and
      several Borrowers. In furtherance of the foregoing, each Borrower jointly
      and severally, absolutely and unconditionally guaranties to Agent and
      Lenders and agrees to be liable for the full and indefeasible payment and
      performance when due of all the Obligations. This guarantee is a
      continuing guarantee, and shall apply to all Obligations whenever arising.

                                      -62-
<PAGE>

            13.12 Suretyship Waivers and Consents.

                  (i) Each Borrower acknowledges that the obligations of such
            Borrower undertaken herein might be construed to consist, at least
            in part, of the guaranty of obligations of persons other than such
            Borrower (including the other Borrowers) and, in full recognition of
            that fact, each Borrower consents and agrees that Agent and Lenders
            may, at any time and from time to time, without notice or demand
            (except as provided in and in accordance with the terms of this
            Agreement), whether before or after any actual or purported
            termination, repudiation or revocation of this Agreement by any
            Borrower, and without affecting the enforceability or continuing
            effectiveness hereof as to each Borrower: (a) increase, extend, or
            otherwise change the time for payment or the terms of the
            Obligations or any part thereof; (b) supplement, restate, modify,
            amend, increase, decrease, or waive, or enter into or give any
            agreement, approval or consent with respect to, the Obligations or
            any part thereof, this Agreement, or any of the Loan Documents or
            any additional security or guarantees, or any condition, covenant,
            default, remedy, right, representation, or term thereof or
            thereunder; (c) accept new or additional instruments, documents, or
            agreements in exchange for or relative to any of the loan Documents
            or the Obligations or any part thereof; (d) accept partial payments
            on the Obligations; (e) receive and hold additional security or
            guarantees for the Obligations or any part thereof; (f) release,
            reconvey, terminate, waive, abandon, fail to perfect, subordinate,
            exchange, substitute, transfer, or enforce any Collateral, security
            or guarantees, and apply any Collateral or security and direct the
            order or manner of sale thereof as Agent in its sole and absolute
            discretion may determine; (g) release any person from any personal
            liability with respect to the Obligations or any part thereof; (h)
            settle, release on terms satisfactory to Agent or by operation of
            applicable laws or otherwise liquidate or enforce any Obligations
            and any Collateral or security therefor or guaranty thereof in any
            manner, consent to the transfer of any Collateral or security and
            bid and purchase at any sale; or (i) consent to the merger, change,
            or any other restructuring or termination of the corporate or
            partnership existence of any Borrower, and correspondingly
            restructure the Obligations, and any such merger, change,
            restructuring, or termination shall not affect the liability of any
            Borrower or the continuing effectiveness hereof, or the
            enforceability hereof with respect to all or any part of the
            Obligations.

                  (ii) Agent may enforce this Agreement independently as to each
            Borrower and independently of any other remedy or security Agent at
            any time may have or hold in connection with the Obligations, and it
            shall not be necessary for Agent to marshal assets in favor of any
            Borrower or to proceed upon or against or exhaust any Collateral or
            security or remedy before proceeding to enforce this Agreement. Each
            Borrower expressly waives any right to require Agent to marshal
            assets in favor of any Borrower or any guarantor of the Obligations
            or to proceed against any other Borrower, and agrees that Agent may
            proceed against Borrowers or any Collateral in such order as Lender
            shall determine in its sole and absolute discretion.

                  (iii) Agent may file a separate action or actions against any
            Borrower, whether such action is brought or prosecuted with respect
            to any security or against any guarantor of the Obligations, or
            whether any other person is joined in any such action or actions.

                                      -63-
<PAGE>

            Each Borrower agrees that Agent and each Borrower and any affiliate
            of any Borrower may deal with each other in connection with the
            Obligations or otherwise, or alter any contracts or agreements now
            or hereafter existing between any of them, in any manner whatsoever,
            all without in any way altering or affecting the continuing
            enforceability of this Agreement. Each Borrower, as a joint and
            several Borrower hereunder, expressly waives the benefit of any
            statute of limitations affecting its joint and several liability
            hereunder or the enforcement of the Obligations or any rights of
            Agent created or granted herein.

                  (iv) Agent's and Lenders' rights hereunder shall be reinstated
            and revived, and the enforceability of this Agreement shall
            continue, with respect to any amount at any time paid on account of
            the Obligations which thereafter shall be required to be restored or
            returned by Agent or any Lender, all as though such amount had not
            been paid. The rights of Agent created or granted herein and the
            enforceability of this Agreement at all times shall remain effective
            to cover the full amount of all the Obligations even though the
            Obligations, including any part thereof or any Collateral, other
            security or guaranty therefor, may be or hereafter may become
            invalid or otherwise unenforceable as against any Borrower and
            whether or not any Borrower shall have any personal liability with
            respect thereto.

                  (v) Each Borrower expressly waives any and all defenses now or
            hereafter arising or asserted by reason of (a) any disability or
            other defense of any other Borrower with respect to the Obligations;
            (b) the unenforceability or invalidity of any security or guaranty
            for the Obligations or the lack of perfection or continuing
            perfection or failure of priority of any security for the
            Obligations; (c) the cessation for any cause whatsoever of the
            liability of any Borrower (other than by reason of the full payment
            and performance of all Obligations as required herein); (d) any
            failure of Agent to marshall assets in favor of any Borrower; (e)
            any failure of Agent to give notice to any Borrower of sale or other
            disposition of Collateral of another Borrower or any defect in any
            notice that may be given in connection with any such sale or
            disposition of Collateral of any Borrower securing the Obligations;
            (f) any failure of Agent to comply with applicable law in connection
            with the sale or other disposition of any Collateral or other
            security of any Borrower, for any Obligation, including any failure
            of Lender to conduct a commercially reasonable sale or other
            disposition of any Collateral or other security of any Borrower for
            any Obligation; (g) any act or omission of Agent or others that
            directly or indirectly results in or aids the discharge or release
            of any Borrower or the Obligations of any Borrower or any security
            or guaranty therefor by operation of law or otherwise; (h) any law
            which provides that the obligation of a surety or guarantor must
            neither be larger in amount nor in other respects more burdensome
            than that of the principal or which reduces a surety's or
            guarantor's obligation in proportion to the principal obligation;
            (i) any failure of Agent to file or enforce a claim in any
            bankruptcy or other proceeding with respect to any Borrower; (j) the
            avoidance of any lien or security interest in assets of any Borrower
            in favor of Agent for any reason; or (k) any action taken by Agent
            that is authorized by this section or any other provision of any
            Loan Document. Until such time, if any, as all of the Obligations
            have been indefeasibly paid and performed in full and no portion of
            any commitment of Lenders to Borrowers under any Loan Document
            remains in effect,

                                      -64-
<PAGE>

            each Borrowers' indebtedness, claims and rights of subrogation,
            contribution, reimbursement, or indemnity against the other
            Borrowers shall be fully and completely subordinated to the
            indefeasible repayment in full of the Obligations, and each Borrower
            expressly waives until such indefeasible payment any right to
            enforce any remedy that it now has or hereafter may have against any
            other Person and waives the benefit of, or any right to participate
            in, any Collateral now or hereafter held by Agent.

                  (vi) To the fullest extent permitted by applicable law, each
            Borrower expressly waives and agrees not to assert, any and all
            defenses in its favor based upon an election of remedies by Agent or
            Lenders which destroys, diminishes, or affects such Borrower's
            subrogation rights against the other Borrowers, or against any
            Guarantor, and/or (except as explicitly provided for herein) any
            rights to proceed against each other Borrower, or any other party
            liable to Lender, for reimbursement, contribution, indemnity, or
            otherwise.

                  (vii) Borrowers and each of them warrant and agree that each
            of the waivers and consents set forth herein are made after
            consultation with legal counsel and with full knowledge of their
            significance and consequences, with the understanding that events
            giving rise to any defense or right waived may diminish, destroy, or
            otherwise adversely affect rights which Borrowers otherwise may have
            against each other, Agent, any Lender, or others, or against
            Collateral, and that, under the circumstances, the waivers and
            consents herein given are reasonable and not contrary to public
            policy or law. If any of the waivers or consents herein are
            determined to be contrary to any applicable law or public policy,
            such waivers and consents shall be effective to the maximum extent
            permitted by law.

            13.13 Contribution Agreement. As an inducement to Agent and Lenders
      to enter into this Agreement and to make the Loans and extend credit to
      the Borrowers, each Borrower agrees to indemnify and hold the other
      harmless from and each shall have a continuing right of contribution
      against the other Borrowers, if and to the extent that a Borrower makes or
      is caused to make disproportionate payments in excess of that Borrower's
      Proportionate Share (as defined below) of the Loans or contributions (from
      dispositions of its assets or otherwise) to the repayment and satisfaction
      of the Obligations. These indemnification and contribution obligations
      shall be unconditional and continuing obligations of the Borrowers and
      shall not be waived, rescinded, modified, limited or terminated in any way
      whatsoever without the prior written consent of Lender, in its sole
      discretion. For purposes hereof, the Proportionate Share of a Borrower
      shall mean a fraction in which the numerator is the Net Worth of a
      Borrower on the date of this Agreement and the denominator is the
      Consolidated Net Worths of all the Borrowers on such date.

            13.14 Entire Agreement. This Agreement and the other Loan Documents,
      together with all other instruments, agreements and certificates executed
      by the parties in connection therewith or with reference thereto, embody
      the entire understanding and agreement between the parties hereto and
      thereto with respect to the subject matter hereof and thereof and
      supersede all prior agreements, understandings and inducements, whether
      express or implied, oral or written.

                                      -65-
<PAGE>

            13.15 Interpretation. No provision of this Agreement or any of the
      other Loan Documents shall be construed against or interpreted to the
      disadvantage of any party hereto by any court or other governmental or
      judicial authority by reason of such party having or being deemed to have
      structured or dictated such provision.

            13.16 GOVERNING LAW; CONSENT TO FORUM. THIS AGREEMENT HAS BEEN
      NEGOTIATED, EXECUTED AND DELIVERED AT AND SHALL BE DEEMED TO HAVE BEEN
      MADE IN HARTFORD, CONNECTICUT. THIS AGREEMENT SHALL BE GOVERNED BY AND
      CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CONNECTICUT;
      PROVIDED, HOWEVER, THAT IF ANY OF THE COLLATERAL SHALL BE LOCATED IN ANY
      JURISDICTION OTHER THAN CONNECTICUT, THE LAWS OF SUCH JURISDICTION SHALL
      GOVERN THE METHOD, MANNER AND PROCEDURE FOR FORECLOSURE OF AGENT'S LIEN
      UPON SUCH COLLATERAL AND THE ENFORCEMENT OF AGENT'S OTHER REMEDIES IN
      RESPECT OF SUCH COLLATERAL TO THE EXTENT THAT THE LAWS OF SUCH
      JURISDICTION ARE DIFFERENT FROM OR INCONSISTENT WITH THE LAWS OF
      CONNECTICUT. AS PART OF THE CONSIDERATION FOR NEW VALUE RECEIVED, AND
      REGARDLESS OF ANY PRESENT OR FUTURE DOMICILE OR PRINCIPAL PLACE OF
      BUSINESS OF BORROWERS, AGENT OR LENDERS, BORROWERS HEREBY CONSENT AND
      AGREE THAT THE SUPERIOR COURT OF HARTFORD, CONNECTICUT, OR, AT AGENT'S
      OPTION, THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF CONNECTICUT,
      SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR
      DISPUTES BETWEEN BORROWERS AND LENDERS OR AGENT PERTAINING TO THIS
      AGREEMENT OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT.
      BORROWERS EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO SUCH JURISDICTION IN
      ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND BORROWERS HEREBY WAIVE
      ANY OBJECTION WHICH BORROWERS MAY HAVE BASED UPON LACK OF PERSONAL
      JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND HEREBY CONSENTS
      TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE
      BY SUCH COURT. BORROWERS HEREBY WAIVE PERSONAL SERVICE OF THE SUMMONS,
      COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREE
      THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY
      REGISTERED OR CERTIFIED MAIL ADDRESSED TO BORROWERS AT THE ADDRESS SET
      FORTH IN THIS AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED
      UPON THE EARLIER OF BORROWERS' ACTUAL RECEIPT THEREOF OR THREE (3) DAYS
      AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE PREPAID. NOTHING IN THIS
      AGREEMENT SHALL BE DEEMED OR OPERATE TO AFFECT THE RIGHT OF AGENT TO SERVE
      LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW, OR TO PRECLUDE THE
      ENFORCEMENT BY AGENT

                                      -66-
<PAGE>

      OF ANY JUDGMENT OR ORDER OBTAINED IN SUCH FORUM OR THE TAKING OF ANY
      ACTION UNDER THIS AGREEMENT TO ENFORCE SAME IN ANY OTHER APPROPRIATE FORUM
      OR JURISDICTION.

            13.17 WAIVERS BY BORROWERS. BORROWERS WAIVE (i) THE RIGHT TO TRIAL
      BY JURY (WHICH AGENT AND EACH LENDER HEREBY ALSO WAIVE) IN ANY ACTION,
      SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO
      ANY OF THE LOAN DOCUMENTS, THE OBLIGATIONS OR THE COLLATERAL; (ii)
      PRESENTMENT, DEMAND AND PROTEST AND NOTICE OF PRESENTMENT, PROTEST,
      DEFAULT, NON PAYMENT, MATURITY, RELEASE, COMPROMISE, SETTLEMENT, EXTENSION
      OR RENEWAL OF ANY OR ALL COMMERCIAL PAPER, ACCOUNTS, CONTRACT RIGHTS,
      DOCUMENTS, INSTRUMENTS, CHATTEL PAPER AND GUARANTIES AT ANY TIME HELD BY
      AGENT OR LENDERS ON WHICH BORROWERS MAY IN ANY WAY BE LIABLE AND HEREBY
      RATIFY AND CONFIRM WHATEVER AGENT OR LENDERS MAY DO IN THIS REGARD; (iii)
      NOTICE PRIOR TO TAKING POSSESSION OR CONTROL OF THE COLLATERAL OR ANY BOND
      OR SECURITY WHICH MIGHT BE REQUIRED BY ANY COURT PRIOR TO ALLOWING AGENT
      OR LENDERS TO EXERCISE ANY OF THEIR REMEDIES; (iv) THE BENEFIT OF ALL
      VALUATION, APPRAISEMENT AND EXEMPTION LAWS; (v) NOTICE OF ACCEPTANCE
      HEREOF; AND (vi) EXCEPT AS PROHIBITED BY LAW, ANY RIGHT TO CLAIM OR
      RECOVER ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY
      DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. BORROWER
      ACKNOWLEDGE THAT THE FOREGOING WAIVERS ARE A MATERIAL INDUCEMENT TO AGENT
      AND LENDERS' ENTERING INTO THIS AGREEMENT AND THAT EACH LENDER AND AGENT
      IS RELYING UPON THE FOREGOING WAIVERS IN ITS FUTURE DEALINGS WITH
      BORROWERS. BORROWERS WARRANT AND REPRESENT THAT IT HAS REVIEWED THE
      FOREGOING WAIVERS WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY
      WAIVED ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN
      THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT
      TO A TRIAL BY THE COURT.

            13.18 Waiver. No failure on the part of the Agent or any Lender to
      exercise and no delay in exercising, and no course of dealing with respect
      to, any right, power or privilege under this Agreement or any Note shall
      operate as a waiver thereof, nor shall any single or partial exercise of
      any right, power or privilege under this Agreement or any Note preclude
      any other or further exercise thereof or the exercise of any other right,
      power or privilege. The remedies provided herein are cumulative and not
      exclusive of any remedies provided by law.

                  Borrowers irrevocably waive, to the fullest extent permitted
by applicable law, any claim that any action or proceeding commenced by the
Agent or any Lender relating in any way to this Agreement should be dismissed or
stayed by reason, or pending the resolution, of any

                                      -67-
<PAGE>

action or proceeding commenced by Borrowers relating in any way to this
Agreement whether or not commenced earlier. To the fullest extent permitted by
applicable law, the Borrowers shall take all measures necessary for any such
action or proceeding commenced by the Agent or any Lender to proceed to judgment
prior to the entry of judgment in any such action or proceeding commenced by any
Borrowers.

            13.19 PREJUDGMENT REMEDIES. EACH BORROWER HEREBY WAIVES SUCH RIGHTS
      AS IT MAY HAVE TO NOTICE AND/OR HEARING UNDER ANY APPLICABLE FEDERAL OR
      STATE LAWS INCLUDING, WITHOUT LIMITATION, CONNECTICUT GENERAL STATUTES
      SECTIONS 52-278A, ET-SEQ., AS AMENDED, PERTAINING TO THE EXERCISE BY AGENT
      OR ANY LENDER OF SUCH RIGHTS AS THE AGENT OR ANY LENDER MAY HAVE
      INCLUDING, BUT NOT LIMITED TO, THE RIGHT TO SEEK PREJUDGMENT REMEDIES
      AND/OR DEPRIVE BORROWERS OF OR AFFECT THE USE OF OR POSSESSION OR
      ENJOYMENT OF BORROWERS' PROPERTY PRIOR TO THE RENDITION OF A FINAL
      JUDGMENT AGAINST A BORROWER. EACH BORROWER FURTHER WAIVES ANY RIGHT IT MAY
      HAVE TO REQUIRE LENDER TO PROVIDE A BOND OR OTHER SECURITY AS A
      PRECONDITION TO OR IN CONNECTION WITH ANY PREJUDGMENT REMEDY SOUGHT BY
      AGENT OR ANY LENDER.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -68-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

      IN WITNESS WHEREOF, this Agreement has been duly executed in Hartford,
Connecticut, on the day and year specified at the beginning of this Agreement.

WITNESS/ATTEST:                        UNITED NATURAL FOODS, INC.

                                       By: /s/  MICHAEL S. FUNK
--------------------------------           ------------------------------------
                                           Name:  Michael S. Funk
                                           Title: Chief Executive Office and
                                                  Vice Chairman of the Board

WITNESS/ATTEST:                        MOUNTAIN PEOPLE'S WAREHOUSE
                                       INCORPORATED

                                       By: /s/  MICHAEL S. FUNK
--------------------------------           ------------------------------------
                                           Name:  Michael S. Funk
                                           Title: Chief Executive Office and
                                                  Vice Chairman of the Board

WITNESS/ATTEST:                        NUTRASOURCE, INC.

                                       By: /s/  MICHAEL S. FUNK
--------------------------------           ------------------------------------
                                           Name:  Michael S. Funk
                                           Title: Chief Executive Office and
                                                  Vice Chairman of the Board

WITNESS/ATTEST:                        RAINBOW NATURAL FOODS, INC.

                                       By: /s/  MICHAEL S. FUNK
--------------------------------           ------------------------------------
                                           Name:  Michael S. Funk
                                           Title: Chief Executive Office and
                                                  Vice Chairman of the Board

                                      -69-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

WITNESS/ATTEST:                        STOW MILLS, INC.

                                       By: /s/  MICHAEL S. FUNK
--------------------------------           ------------------------------------
                                           Name:  Michael S. Funk
                                           Title: Chief Executive Office and
                                                  Vice Chairman of the Board

WITNESS/ATTEST:                        UNITED NATURAL FOODS OF
                                       PENNSYLVANIA, INC.

                                       By: /s/  MICHAEL S. FUNK
--------------------------------           ------------------------------------
                                           Name:  Michael S. Funk
                                           Title: Chief Executive Office and
                                                  Vice Chairman of the Board

                                      -70-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

Accepted in Glastonbury, Connecticut
on August 28, 2001

FLEET CAPITAL CORPORATION, as Administrative Agent

By: /s/  HOWARD HANDMAN
    -------------------
    Name: Howard Handman
    Title: Senior Vice President

FLEET CAPITAL CORPORATION, as a Lender     Commitment Amount:  $27,500,000

By: /s/  HOWARD HANDMAN
    -------------------
    Name: Howard Handman
    Title: Senior Vice President

Notice Address
and Applicable
Lending Office: 200 Glastonbury Boulevard
                Glastonbury, CT  06033

                                      -71-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

CITIZENS BANK OF MASSACHUSETTS, as
Syndication Agent

By /s/ DAVID N. PAIKIN
   -------------------
   Name: David N. Paikin
   Title: Vice President

CITIZENS BANK OF MASSACHUSETTS, as a Lender

By: /s/ DAVID N. PAIKIN
    -------------------
    Name: David N. Paikin
    Title: Vice President

Notice Address                             Commitment Amount: $25,000,000
and Applicable
Lending Office:  53 State Street
                 Boston, MA  02109

                                      -72-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

U.S. BANK NATIONAL ASSOCIATION, as Documentation Agent

By: /s/ JOHN BALL
    -------------
    Name: John Ball
    Title: Vice President

U.S. BANK NATIONAL ASSOCIATION, as a Lender

By: /s/ JOHN BALL
    -------------
    Name: John Ball
    Title: Vice President

Notice Address                             Commitment Amount: $22,500,000
and Applicable
Lending Office: 950 17th Street
                Suite 350
                Denver, CO  80202

                                      -73-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

PNC BANK, NATIONAL ASSOCIATION, a Lender

By: /s/ STEPHEN P. KANARIAN
    -----------------------
    Name: Stephen P. Kanarian
    Title: Vice President

Notice Address                             Commitment Amount: $22,500,000
and Applicable
Lending Office: 125 High Street
                Oliver Tower, 16th Floor
                Boston, MA  02110

                                      -74-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

NATIONAL CITY BANK, a Lender

By: /s/ LYLE P. CUNNINGHAM
    ---------------------
    Name: Lyle P. Cunningham
    Title: Vice President

Notice Address                             Commitment Amount: $15,000,000
and Applicable
Lending Office: One South Broad Street
                Philadelphia, PA  19107

                                      -75-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

SOVEREIGN BANK, a Lender

By: /s/ CHRISTOPHER T. PHELAN
    -------------------------
    Name: Christopher T. Phelan
    Title: Senior Vice President

Notice Address                             Commitment Amount: $12,500,000
and Applicable
Lending Office: 100 Pearl Street
                Hartford, CT  06103

                                      -76-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

FIRST PIONEER FARM CREDIT, ACA, a Lender

By: /s/ JAMES M. PAPAI
    ------------------
    Name: James M. Papai
    Title: Vice President

Notice Address                             Commitment Amount: $10,000,000
and Applicable
Lending Office: 174 South Road
                Enfield, CT  06082

                                      -77-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

ISRAEL DISCOUNT BANK
OF NEW YORK, a Lender

By: /s/ AMIR BARASH
    ---------------
    Name: Amir Barash
    Title: Vice President

By: /s/ ALFRED J. FRANCO
    --------------------
    Name: Alfred J. Franco
    Title: Vice President

Notice Address                             Commitment Amount: $5,000,000
and Applicable
Lending Office: 511 Fifth Avenue
                New York, NY  10017

                                      -78-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

WEBSTER BANK, a Lender

By: /s/ MATTHEW RILEY
    -----------------
    Name: Matthew Riley
    Title: Senior Vice President

Notice Address                             Commitment Amount: $10,000,000
and Applicable
Lending Office: 80 Elm Street
                New Haven, CT  06510

                                      -79-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

FLEET SECURITIES, INC., as Arranger

By: /s/ GREGORY F. MATHIS
    ---------------------
    Name: Gregory F. Mathis
    Title: Managing Director

Notice Address: 590 Madison Avenue
                31st Floor
                New York, NY  10022

                                      -80-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

STATE OF ________________)
                         ) ss:                             August ____, 2001
COUNTY OF                )

      Before me, personally appeared _______________, _______________ of United
Natural Foods, Inc., who executed the foregoing Loan and Security Agreement and
acknowledged the same to be his free act and deed, and the free act and deed of
said corporation.

                                    ____________________________________________
                                    Notary Public
                                    My commission expires: _____________________
                                    Commissioner of the Superior Court

STATE OF ________________)
                         ) ss:                             August ____, 2001
COUNTY OF                )

      Before me, personally appeared _______________, _______________ of
Mountain People's Warehouse Incorporated, who executed the foregoing Loan and
Security Agreement and acknowledged the same to be his free act and deed, and
the free act and deed of said corporation.

                                    ____________________________________________
                                    Notary Public
                                    My commission expires: _____________________
                                    Commissioner of the Superior Court

                                      -81-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

STATE OF ________________)
                         ) ss:                             August ____, 2001
COUNTY OF                )

      Before me, personally appeared _______________, _______________ of
NutraSource, Inc., who executed the foregoing Loan and Security Agreement and
acknowledged the same to be his free act and deed, and the free act and deed of
said corporation.

                                    ____________________________________________
                                    Notary Public
                                    My commission expires: _____________________
                                    Commissioner of the Superior Court

STATE OF _______________ )
                         ) ss:                             August ____, 2001
COUNTY OF                )

      Before me, personally appeared _______________, _______________ of Rainbow
Natural Foods, Inc., who executed the foregoing Loan and Security Agreement and
acknowledged the same to be his free act and deed, and the free act and deed of
said corporation.

                                    ____________________________________________
                                    Notary Public
                                    My commission expires: _____________________
                                    Commissioner of the Superior Court

STATE OF ________________)
                         ) ss:                             August ____, 2001
COUNTY OF                )

      Before me, personally appeared _______________, _______________ of Stow
Mills, Inc., who executed the foregoing Loan and Security Agreement and
acknowledged the same to be his free act and deed, and the free act and deed of
said corporation.

                                    ____________________________________________
                                    Notary Public
                                    My commission expires: _____________________
                                    Commissioner of the Superior Court

                                      -82-
<PAGE>

                                  Signature Pages to Loan and Security Agreement

STATE OF ________________)
                         ) ss:                             August ____, 2001
COUNTY OF                )

      Before me, personally appeared _______________, _______________ of United
Natural Foods of Pennsylvania, Inc., who executed the foregoing Loan and
Security Agreement and acknowledged the same to be his free act and deed, and
the free act and deed of said corporation.

                                    ____________________________________________
                                    Notary Public
                                    My commission expires: _____________________
                                    Commissioner of the Superior Court

                                      -83-
<PAGE>

                                   APPENDIX A

                               GENERAL DEFINITIONS

      When used in the Loan and Security Agreement dated as of August ___, 2001,
by and among United Natural Foods, Inc., Mountain People's Warehouse
Incorporated, NutraSource, Inc., Rainbow Natural Foods, Inc., Stow Mills, Inc.,
and United Natural Foods Pennsylvania, Inc. (collectively, the "Borrowers"), the
Lenders identified on the signature pages under the caption "Lenders" therein,
Fleet Capital Corporation as agent for the Lenders ("Agent"), Fleet Securities,
Inc. as arranger for the Lenders ("Arranger"), U.S. Bank National Association as
documentation agent for the Lenders ("Documentation Agent") and Citizens Bank of
Massachusetts as syndication agent for the Lenders ("Syndication Agent") (the
"Agent") (the "Agreement") (a) the terms Account, Certificated Security, Chattel
Paper, Deposit Account, Document, Equipment, Financial Asset, Fixture, General
Intangibles, Goods, Instrument, Inventory, Investment Property, Security,
Proceeds, Security Entitlement and Uncertificated Security have the respective
meanings assigned thereto under the UCC (as defined below); (b) the terms
Commercial Tort Claims, Electronic Chattel Paper, Health-Care-Insurance
Receivables, Letter-of-Credit Rights, Payment Intangibles, Software, Supporting
Obligations and Tangible Chattel Paper have the respective meanings assigned
thereto in the UCC Revisions (as defined below); (c) all terms indicating
Collateral having the meanings assigned thereto under the UCC or the UCC
Revisions shall be deemed to mean such Property, whether now owned or hereafter
created or acquired by Borrowers or in which Borrowers now have or hereafter
acquire any interest; (d) capitalized terms which are not otherwise defined have
the respective meanings assigned thereto in said Loan and Security Agreement;
and (e) the following terms shall have the following meanings (terms defined in
the singular to have the same meaning when used in the plural and vice versa):

            Account Debtor - any Person who is or may become obligated on or
      under or on account of any Account, Contract Right, Chattel Paper or
      General Intangible.

            Advance Date - as defined in Section 4.4.1 of the Agreement.

            Affiliate - a Person (other than a Subsidiary): (i) which directly
      or indirectly through one or more intermediaries controls, or is
      controlled by, or is under common control with, a Person; (ii) which
      beneficially owns or holds five percent (5%) or more of any class of the
      Voting Stock of a Person; or (iii) five percent (5%) or more of the Voting
      Stock (or in the case of a Person which is not a corporation, five percent
      (5%) or more of the equity interest) of which is beneficially owned or
      held by a Person or a Subsidiary of a Person. As used in this definition,
      "control" (including, with its correlative meanings, "controlled by" and
      "under common control with") shall mean possession , directly or
      indirectly, of power to direct or cause the direction of management or
      policies whether through ownership of securities or other ownership
      interests of the Borrowers by contract or otherwise.

                                      -84-
<PAGE>

            Agent - Fleet Capital Corporation and its successors and assigns.

            Agreement - the Loan and Security Agreement referred to in the first
      sentence of this Appendix A, all Exhibits and Schedules thereto and this
      Appendix A.

            Applicable Lending Office - for each Lender and for each type of
      Loan, the Lending office of such Lender (or of an affiliate of such
      Lender) designated for such type of Loan on the signature pages hereof or
      on the Notice of Assignment (as applicable) or such other office of such
      Lender (or of an affiliate of such Lender) as such Lender may from time to
      time specify to the Agent and the Borrowers as the office by which its
      Loans of such type are to be made and maintained.

            Applicable Base Rate Margin; Applicable LIBOR Margin - determined by
      the ratio of total Consolidated Indebtedness for Money Borrowed of
      Borrowers ("Total Debt") to EBITDA for the most recently completed period
      of four (4) consecutive fiscal quarters for which financial reports have
      been (or are required to have been) furnished to Lenders as follows:

                       Ratio of Total     Applicable LIBOR    Applicable Base
       Level           Debt to EBITDA          Margin            Rate Margin
       -----           --------------          ------            -----------

                       Greater than or
         I             equal to 2.50x           1.75%               0.25%

                       Greater than or
                     equal to 1.50x and
        II*            less than 2.50x          1.50%               0.00%

        III            Less than 1.50x          1.25%               0.00%

      * The Applicable Base Rate Margin and Applicable LIBOR Margin will be at
      Level II for the first six (6) months from the date of hereof. Thereafter
      the Applicable Base Rate Margin and the Applicable LIBOR Margin shall be
      adjusted quarterly according to the above performance based grid;
      provided, that if financial reports are not timely delivered to Lenders on
      and after the date which is six (6) months from the date hereof or
      thereafter, when required under the Agreement, the Applicable Base Rate
      Margin and the Applicable LIBOR Margin will be at Level I.

            Availability - the amount of money which Borrowers are entitled to
      borrow from time to time as Revolving Credit Loans, such amount being the
      difference derived when the sum of the principal amount of Revolving
      Credit Loans then outstanding (including any amounts which any Lender may
      have paid for the account of Borrowers pursuant to any of the Loan
      Documents and which have not been reimbursed by Borrowers) and the LC
      Amount is subtracted from the Borrowing Base. If the amount outstanding is
      equal to or greater than the Borrowing Base, Availability is zero (0).

                                      -85-
<PAGE>

            Bank - Fleet National Bank.
            ----

            Base Rate - the rate of interest announced or quoted by Bank from
      time to time as its prime rate for commercial loans, whether or not such
      rate is the lowest rate charged by Bank to its most preferred borrowers;
      and, if such prime rate for commercial loans is discontinued by Bank as a
      standard, a comparable reference rate designated by Bank as a substitute
      therefor shall be the Base Rate.

            Base Rate Advances - any Loan bearing interest computed by reference
      to the Base Rate.

            Borrowing Base - as at any date of determination thereof, an amount
      equal to the lesser of:

                  (i) $150,000,000; or

                  (ii)  an amount equal to:

                        (a) 85% of the net amount of Eligible Accounts
                  outstanding at such date; PLUS

                        (b) the lesser of (1) $90,000,000 or (2) 60%, of the
                  value of Eligible Inventory at such date calculated on the
                  basis of the lower of cost or market with the cost of raw
                  materials and finished goods calculated on a first-in,
                  first-out basis.

            For purposes hereof, the net amount of Eligible Accounts at any time
      shall be the face amount of such Eligible Accounts less any and all
      returns, rebates, discounts (which may, at Agent's option, be calculated
      on shortest terms), credits, allowances or excise taxes of any nature at
      any time issued, owing, claimed by Account Debtors, granted, outstanding
      or payable in connection with such Accounts at such time.

            Borrowing Base Certificate - a certificate by a responsible officer
      of each Borrower, substantially in the form of Exhibit R (or another form
      acceptable to Lenders) setting forth the calculation of the Borrowing
      Base, including a calculation of each component thereof, all in such
      detail as shall be satisfactory to Agent. All calculations of the
      Borrowing Base in connection with the preparation of any Borrowing Base
      Certificate shall originally be made by Borrowers and certified to Agent;
      provided, that Agent shall have the right to review and adjust, in the
      exercise of its reasonable credit judgment, any such calculation after
      giving notice thereof to the Borrowers, (1) to reflect its reasonable
      estimate of declines in value of any of the Collateral described therein,
      and (2) to the extent that such calculation is not in accordance with this
      Agreement.

                                      -86-
<PAGE>

            Business Day - any day excluding Saturday, Sunday and any day which
      is a legal holiday under the laws of the State of Connecticut or is a day
      on which banking institutions located in such state are closed.

            Capital Expenditures - expenditures made or liabilities incurred for
      the acquisition of any fixed assets or improvements, replacements,
      substitutions or additions thereto which have a useful life of more than
      one year, including the total principal portion of Capitalized Lease
      Obligations.

            Capitalized Lease Obligation - any Indebtedness represented by
      obligations under a lease that is required to be capitalized for financial
      reporting purposes in accordance with GAAP.

            Closing Date - the date on which all of the conditions precedent in
      Section 10 of the Agreement are satisfied and the initial Loan is made or
      the initial Letter of Credit or LC Guaranty is issued under the Agreement.

            Collateral - all of the Property and interests in Property described
      in Section 6 of the Agreement, and all other Property and interests in
      Property that now or hereafter secure the payment and performance of any
      of the Obligations.

            Commercial Letter of Credit - a Letter of Credit issued for the
      purpose of packaging goods.

            Computer Hardware and Software - all of Borrowers' rights (including
      rights as licensee and lessee) with respect to (i) computer and other
      electronic data processing hardware, including all integrated computer
      systems, central processing units, memory units, display terminals,
      printers, computer elements, card readers, tape drives, hard and soft disk
      drives, cables, electrical supply hardware, generators, power equalizers,
      accessories, peripheral devices and other related computer hardware; (ii)
      all Software and all software programs designed for use on the computers
      and electronic data processing hardware described in clause (i) above,
      including all operating system software, utilities and application
      programs in any form (source code and object code in magnetic tape, disk
      or hard copy format or any other listings whatsoever); (iii) any firmware
      associated with any of the foregoing; and (iv) any documentation for
      hardware, Software and firmware described in clauses (i), (ii) and (iii)
      above, including flow charts, logic diagrams, manuals, specifications,
      training materials, charts and pseudo codes.

            Commitments - means the Revolving Credit Commitments.

            Consolidated - the consolidation in accordance with GAAP of the
      accounts or other items as to which such term applies.

                                      -87-
<PAGE>

            Contract Right - any right of Borrowers to payment under a contract
      for the sale or lease of goods or the rendering of services, which right
      is at the time not yet earned by performance.

            Current Assets - at any date means the amount at which all of the
      current assets of a Person would be properly classified as current assets
      shown on a balance sheet at such date in accordance with GAAP.

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

            Default Rate - as defined in subsection 2.1.2 of the Agreement.

            Delinquent Lender - as defined in subsection 4.4.2 of the Agreement.

            Distribution - in respect of any corporation means and includes: (i)
      the payment of any dividends or other distributions on capital stock of
      the corporation (except distributions in such stock) and (ii) the
      redemption or acquisition of Securities unless made contemporaneously from
      the net proceeds of the sale of Securities.

            Dominion Account - a special account established by Borrower
      pursuant to the Agreement at a bank selected by Borrower, but acceptable
      to Agent in its reasonable discretion, and over which Agent on behalf of
      each of the Lenders shall have sole and exclusive access and control for
      withdrawal purposes.

            EBITDA - with respect to any fiscal period, the sum of Borrowers'
      Consolidated net earnings (or loss) before interest expense, taxes
      depreciation and amortization for said period as determined in accordance
      with GAAP.

            Eligible Account - an Account arising in the ordinary course of any
      Borrower's business from the sale of goods or rendition of services which
      Agent, in its sole credit judgment, deems to be an Eligible Account.
      Without limiting the generality of the foregoing, no Account shall be an
      Eligible Account if:

                  (i) it arises out of a sale made by any Borrower to a
            Subsidiary or an Affiliate of any Borrower or to a Person controlled
            by an Affiliate of any Borrower; or

                  (ii) it is unpaid for more than sixty (60) days after the
            original due date shown on the invoice; or

                  (iii) it is due or unpaid more than ninety (90) days after the
            original invoice date; or

                                      -88-
<PAGE>

                  (iv) 50% or more of the Accounts from the Account Debtor are
            not deemed Eligible Accounts hereunder; or

                  (v) the total unpaid Accounts of the Account Debtor exceed 20%
            of the net amount of all Eligible Accounts, to the extent of such
            excess; or

                  (vi) any covenant, representation or warranty contained in the
            Agreement with respect to such Account has been breached; or

                  (vii) the Account Debtor is also a Borrower's creditor or
            supplier, or the Account Debtor has disputed liability with respect
            to such Account, or the Account Debtor has made any claim with
            respect to any other Account due from such Account Debtor to any
            Borrower, or the Account otherwise is or may become subject to any
            right of setoff by the Account Debtor; or

                  (viii) the Account Debtor has commenced a voluntary case under
            the federal bankruptcy laws, as now constituted or hereafter
            amended, or made an assignment for the benefit of creditors, or a
            decree or order for relief has been entered by a court having
            jurisdiction in the premises in respect of the Account Debtor in an
            involuntary case under the federal bankruptcy laws, as now
            constituted or hereafter amended, or any other petition or other
            application for relief under the federal bankruptcy laws has been
            filed against the Account Debtor, or if the Account Debtor has
            failed, suspended business, ceased to be Solvent, or consented to or
            suffered a receiver, trustee, liquidator or custodian to be
            appointed for it or for all or a significant portion of its assets
            or affairs; or

                  (ix) it arises from a sale to an Account Debtor outside the
            United States, unless the sale is on letter of credit, guaranty or
            acceptance terms, in each case acceptable to Agent in its sole
            discretion; or

                  (x) it arises from a sale to the Account Debtor on a
            bill-and-hold, guaranteed sale, sale-or-return, sale-on-approval,
            consignment or any other repurchase or return basis; or

                  (xi) the Account Debtor is the United States of America or any
            department, agency or instrumentality thereof, unless Borrowers
            assign their right to payment of such Account to Agent for the
            account of Lenders, in a manner satisfactory to Agent, so as to
            comply with the Assignment of Claims Act of 1940 (31 U.S.C.ss.203 et
            seq., as amended); or

                  (xii) the Account is subject to a Lien other than a Permitted
            Lien; or

                  (xiii) the goods giving rise to such Account have not been
            delivered to and accepted by the Account Debtor or the services
            giving rise to such Account

                                      -89-
<PAGE>

            have not been performed by Borrowers and accepted by the Account
            Debtor or the Account otherwise does not represent a final sale; or

                  (xiv) the Account is evidenced by chattel paper or an
            instrument of any kind, or has been reduced to judgment; or

                  (xv) Borrowers have made any agreement with the Account Debtor
            for any deduction therefrom, except for discounts or allowances
            which are made in the ordinary course of business for prompt payment
            and which discounts or allowances are reflected in the calculation
            of the face value of each invoice related to such Account; or

                 (xvi) Borrowers have made an agreement with the Account Debtor
            to extend the time of payment thereof.

            Eligible Inventory - such Inventory of Borrowers (other than
      packaging materials and supplies) which Agent, in its sole credit
      judgment, deems to be Eligible Inventory. Without limiting the generality
      of the foregoing, no Inventory shall be Eligible Inventory if:

                  (i) it is not raw materials or finished goods, or
            work-in-process that is, in Agent's opinion, readily marketable in
            its current form; or

                  (ii) it is not in good, new and saleable condition; or

                  (iii) it is slow-moving, obsolete or unmerchantable; or

                  (iv) it does not meet all standards imposed by any
            governmental agency or authority; or

                  (v) it does not conform in all respects to the warranties and
            representations set forth in the Agreement; or

                  (vi) it is not at all times subject to Lenders' duly
            perfected, first-priority security interest and no other Lien except
            a Permitted Lien; or

                  (vii) it is not situated at a location in compliance with the
            Agreement or is in transit; or

                  (viii) it is held for retail sale at a retail store owned or
            operated by a Borrower or a Subsidiary thereof; or

                  (ix) it is perishable agricultural or farming products such as
            fruits, vegetables, nuts or meat.

                                      -90-
<PAGE>

            Environmental Laws - all federal, state and local laws, rules,
      regulations, ordinances, programs, permits, guidances, orders and consent
      decrees relating to health, safety and environmental matters.

            ERISA - the Employee Retirement Income Security Act of 1974, as
      amended, and all rules and regulations from time to time promulgated
      thereunder.

            Event of Default - as defined in Section 11.1 of the Agreement.

            Existing Loan Agreement - as defined in Section 1.1.3 of the
      Agreement.

            FCC - Fleet Capital Corporation, a Rhode Island corporation, and its
      successors and assigns.

            Fixed Charge Coverage Ratio - for any period of the Borrowers, on a
      Consolidated basis, that quotient equal to (A) the sum of (i) EBITDA, less
      (ii) the sum of taxes paid and nonfinanced Capital Expenditures made
      during such period, divided by (B) the sum of (i) interest payments and
      (ii) scheduled payments and prepayments on Indebtedness for Money Borrowed
      for such period, determined in accordance with GAAP.

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

            Guarantor[s] - Natural Retail Group, Inc., a Delaware corporation,
      Albert's Organics, Inc., a California corporation, United Natural Trading
      Co., a Delaware corporation and The Health Hut, Inc., a New York
      corporation and any other Person who may hereafter guarantee payment or
      performance of the whole or any part of the Obligations.

            Guaranty Agreement[s] - the Continuing Guaranty Agreement[s] which
      are to be executed by each Guarantor in form and substance satisfactory to
      Lenders.

            Indebtedness - as applied to a Person means, without duplication

                  (i) all items which in accordance with GAAP would be included
            in determining total liabilities as shown on the liability side of a
            balance sheet of such Person as at the date as of which Indebtedness
            is to be determined, including, without limitation, Capitalized
            Lease Obligations,

                  (ii) all obligations of other Persons which such Person has
            guaranteed,

                  (iii) all reimbursement obligations in connection with letters
            of credit or letter of credit guaranties issued for the account of
            such Person, and

                                      -91-
<PAGE>

                  (iv) in the case of Borrowers (without duplication), the
            Obligations.

            Intellectual Property - all past, present and future: trade secrets,
      know-how and other proprietary information; trademarks, internet domain
      names, service marks, trade dress, trade names, business names, designs,
      logos, slogans (and all translations, adaptations, derivations and
      combinations of the foregoing) indicia and other source and/or business
      identifiers, and the goodwill of the business relating thereto and all
      registrations or applications for registrations which have heretofore been
      or may hereafter be issued thereon throughout the world; copyrights
      (including copyrights for computer programs) and copyright registrations
      or applications for registrations which have heretofore been or may
      hereafter be issued throughout the world and all tangible property
      embodying the copyrights, unpatented inventions (whether or not
      patentable); patent applications and patents; industrial design
      applications and registered industrial designs; license agreements related
      to any of the foregoing and income therefrom; books, records, writings,
      computer tapes or disks, flow diagrams, specification sheets, computer
      software, source codes, object codes, executable code, data, databases and
      other physical manifestations, embodiments or incorporations of any of the
      foregoing; the right to sue for all past, present and future infringements
      of any of the foregoing; all other intellectual property; and all common
      law and other rights throughout the world in and to all of the foregoing.

            Interest Expense - with respect to any fiscal period, the interest
      expense incurred for such period as determined in accordance with GAAP
      plus the Letter of Credit and LC Guaranty fees owing for such period.

            Interest Period - as applicable to any LIBOR Advance, a period
      commencing on the date a LIBOR Advance is made, and ending on the date
      which is one (1) month, two (2) months, three (3) months, or six (6)
      months later, as may then be requested by Borrower; provided that (i) any
      Interest Period which would otherwise end on a day which is not a Business
      Day shall end in the next preceding or succeeding Business Day as is such
      Lender's custom in the market to which such LIBOR Advance relates; (ii)
      there remains a minimum of one (1) month, two (2) months, three (3) months
      or six (6) months (depending upon which Interest Period Borrower selects)
      in the Original Term (or any Renewal Term then in effect); and (iii) all
      Interest Periods of the same duration which commence on the same date
      shall end on the same date.

            LC Amount - at any time, the aggregate undrawn face amount of all
      Letters of Credit and LC Guaranties then outstanding.

            LC Guaranty - any guaranty pursuant to which FCC or any Affiliate of
      FCC shall guaranty the payment or performance by a Borrower of its
      reimbursement obligation under any letter of credit.

            Letter of Credit - any letter of credit procured by FCC hereunder
      for the account of Borrowers.

                                      -92-
<PAGE>

            LIBOR - as applicable to any LIBOR Advance, the rate per annum
      (rounded upward, if necessary, to the nearest 1/32 of one percent) as
      determined on the basis of the offered rates for deposits in U.S. dollars,
      for a period of time comparable to such LIBOR Advance which appears on the
      Telerate page 3750 as of 11:00 a.m. (London time) on the day that is two
      (2) London Banking Days preceding the first day of such LIBOR Advance;
      provided, however, if the rate described above does not appear on the
      Telerate System on any applicable interest determination date, the LIBOR
      rate shall be the rate (rounded upwards as described above, if necessary)
      for deposits in U.S. dollars for a period substantially equal to the
      interest period on the Reuters Page "LIBO" (or such other page as may
      replace the LIBO Page on that service for the purpose of displaying such
      rates), as of 11:00 a.m. (London Time), on the day that is two (2) London
      Banking Days prior to the beginning of such interest period. If both the
      Telerate and Reuters systems are unavailable, then the rate for that date
      will be determined on the basis of the offered rates for deposits in U.S.
      dollars for a period of time comparable to such LIBOR Advance which are
      offered by four (4) major banks in the London interbank market at
      approximately 11:00 a.m. (London time), on the day that is two (2) London
      Banking Days preceding the first day of such LIBOR Advance as selected by
      Agent. The principal London office of each of the major London Banks so
      selected will be requested to provide a quotation of its U.S. dollar
      deposit offered rate. If at least two (2) such quotations are provided,
      the rate for that date will be the arithmetic mean of the quotations. If
      fewer than two quotations are provided as requested, the rate for that
      date will be determined on the basis of the rates quoted for loans in U.S.
      dollars to leading European banks for a period of time comparable to such
      LIBOR Advance offered by major banks in New York City at approximately
      11:00 a.m. (New York City time), on the day that is two (2) London Banking
      Days preceding the first day of such LIBOR Advance. In the event that
      Agent is unable to obtain any such quotation as provided above, it will be
      determined that LIBOR pursuant to a LIBOR Advance cannot be determined. In
      the event that the Board of Governors of the Federal Reserve System shall
      impose a Reserve Percentage with respect to LIBOR deposits of Bank then
      for any period during which such Reserve Percentage shall apply, LIBOR
      shall be equal to the amount determined above divided by an amount equal
      to 1 minus the Reserve Percentage.

            LIBOR Advance - any Loan bearing interest computed by reference to
      the LIBOR.

            Lien - any interest in Property securing an obligation owed to, or a
      claim by, a Person other than the owner of the Property, whether such
      interest is based on common law, statute or contract. The term "Lien"
      shall also include reservations, exceptions, encroachments, easements,
      rights-of-way, covenants, conditions, restrictions, leases and other title
      exceptions and encumbrances affecting Property. For the purpose of the
      Agreement, Borrowers shall be deemed to be the owner of any Property which
      they have acquired or holds subject to a conditional sale agreement or
      other arrangement pursuant to which title to the Property has been
      retained by or vested in some other Person for security purposes.

                                      -93-
<PAGE>

            Loan Account - the loan account established on the books of Agent
      pursuant to Section 3.6 of the Agreement.

            Loan Documents - the Agreement, the Other Agreements and the
      Security Documents.

            Loans - all loans and advances of any kind made by Lenders, and/or
      by any affiliates of Lenders, pursuant to the Agreement.

            London Banking Day - any date on which commercial banks are open for
      business in London, England.

            Maturity Date - June 30, 2005.

            Money Borrowed - means (i) Indebtedness arising from the lending of
      money by any Person to Borrowers; (ii) Indebtedness, whether or not in any
      such case arising from the lending by any Person of money to Borrowers,
      (A) which is represented by notes payable or drafts accepted that evidence
      extensions of credit, (B) which constitutes obligations evidenced by
      bonds, debentures, notes or similar instruments, or (C) upon which
      interest charges are customarily paid (other than accounts payable) or
      that was issued or assumed as full or partial payment for Property; (iii)
      Indebtedness that constitutes a Capitalized Lease Obligation; (iv)
      reimbursement obligations with respect to letters of credit or guaranties
      of letters of credit and (v) Indebtedness of Borrowers under any guaranty
      of obligations that would constitute Indebtedness for Money Borrowed under
      clauses (i) through (iii) hereof, if owed directly by Borrowers.

            Mortgages - the Mortgage and Security Agreements and Deed of Trust
      and Security Agreements which are to be executed and delivered by
      Borrowers and Guarantors pursuant to Section 6.4 hereof to secure the
      Obligations, in form and substance satisfactory to the Agent and otherwise
      consistent with the form of Exhibit U attached.

            Multiemployer Plan - has the meaning set forth in Section 4001(a)(3)
      of ERISA.

            Net Worth - the shareholder's equity of a Person as determined in
      accordance with GAAP.

            Notice of Assignment - a Notice of Assignment delivered to Agent
      pursuant to Section 12.10.2 hereof in the form of Exhibit T hereto.

            Obligations - all Loans and all other advances, debts, liabilities,
      obligations, covenants and duties, together with all interest, fees and
      other charges thereon, owing, arising, due or payable from Borrowers to
      Lenders, Agent, and/or to any affiliate of Lenders or Agent, of any kind
      or nature, present or future, whether or not evidenced by

                                      -94-
<PAGE>

      any note, guaranty or other instrument, whether arising under the
      Agreement or any of the other Loan Documents or otherwise whether direct
      or indirect (including those acquired by assignment and arising out of the
      provision by Agent or its Affiliates of hedging or swap interest rate
      arrangements for Borrowers and any liabilities incurred with respect to
      ACH and other cash management arrangements), absolute or contingent,
      primary or secondary, due or to become due, now existing or hereafter
      arising and however acquired.

            Organizational I.D. Number - with respect to Borrowers, the
      organizational identification number assigned to Borrowers by the
      applicable governmental unit or agency of the jurisdiction of organization
      of Borrowers.

            Other Agreements - any and all agreements, instruments and documents
      (other than the Agreement and the Security Documents), heretofore, now or
      hereafter executed by Borrower, any Subsidiary of Borrower or any other
      third party and delivered to Lenders in respect of the transactions
      contemplated by the Agreement.

            Overadvance - the amount, if any, by which the outstanding principal
      amount of Revolving Credit Loans plus the LC Amount exceeds the Borrowing
      Base.

            Participant - each Person who shall be granted the right by a Lender
      to participate in any of the Loans described in the Agreement and who
      shall have entered into a participation agreement in form and substance
      satisfactory to such Lender.

            Payment Account - as defined in subsection 4.1.1.

            Payor - as defined in Section 4.4 of the Agreement.

            Permitted Liens - any Lien of a kind specified in subsection 9.2.5
      of the Agreement.

            Permitted Purchase Money Indebtedness - Purchase Money Indebtedness
      and Capitalized Lease Obligations of Borrowers incurred after the date
      hereof which is secured solely by a Purchase Money Lien.

            Person - an individual, partnership, corporation, limited liability
      company, joint stock company, land trust, business trust, or
      unincorporated organization, or a government (or agency, instrumentally or
      political subdivision thereof) and shall include any syndicate or group
      which would be deemed to be a "person" under Section 13(d)(3) of the
      Securities and Exchange Act of 1934, as amended.

            Plan - an employee benefit plan now or hereafter maintained for
      employees of Borrowers that is covered by Title IV of ERISA.

            Projections - Each Borrower's forecasted Consolidated and
      consolidating (a) balance sheets, (b) profit and loss statements, (c) cash
      flow statements, and (d)

                                      -95-
<PAGE>

      capitalization statements, all prepared on a consistent basis with each
      Borrower's historical financial statements, together with appropriate
      supporting details and a statement of underlying assumptions.

            Property or Properties - any interest in any kind of property or
      asset, whether real, personal or mixed, or tangible or intangible.

            Pro Rata - a share of or in all Revolving Credit Loans,
      participations in the LC Amount (or, in the case of FCC, the portion of
      the LC Amount in which FCC does not sell a participation interest pursuant
      to Section 1.3.2 of the Agreement), obligations to indemnify or reimburse
      FCC as the procurer of Letters of Credit, payments, proceeds, collections,
      Collateral and expenses, which share for any Lender on any date shall be a
      percentage arrived at by dividing the amount of the Commitment of such
      Lender on such date by the aggregate amount of the Commitments of all
      Lenders on such date.

            Purchase Money Indebtedness - means and includes (i) Indebtedness
      (other than the Obligations) for the payment of all or any part of the
      purchase price of any fixed assets, (ii) any Indebtedness (other than the
      Obligations) incurred at the time of or within ten (10) days prior to or
      after the acquisition of any fixed assets for the purpose of financing all
      or any part of the purchase price thereof, and (iii) any renewals,
      extensions or refinancings thereof, but not any increases in the principal
      amounts thereof outstanding at the time.

            Purchase Money Lien - a Lien upon fixed assets which secures
      Purchase Money Indebtedness, but only if such Lien shall at all times be
      confined solely to the fixed assets the purchase price of which was
      financed through the incurrence of the Purchase Money Indebtedness secured
      by such Lien.

            Purchased Rights - as defined in subsection 4.4.2 of the Agreement.

            Real Property - the interests of the Borrowers and any of their
      Subsidiaries or Guarantors, either in fee simple or under a long term
      ground lease, in land and improvements thereto, including, without implied
      limitation, those locations listed on Exhibit V attached, and any similar
      interests acquired subsequently.

            Rentals - as defined in subsection 9.2.13 of the Agreement.

            Reportable Event - any of the events set forth in Section 4043(b) of
      ERISA.

            Required Lenders - Lenders having at least 51% of the aggregate
      amount of the Commitments or, if the Commitments shall have terminated,
      Lenders holding at least 51% of the aggregate unpaid principal amount of
      the Loans.

            Required Payment - as defined in Section 4.4.1 of the Agreement.

                                      -96-
<PAGE>

            Reserve Percentage - the maximum aggregate reserve requirement
      (including all basic, supplemental, marginal and other reserves) which is
      imposed on member banks of the Federal Reserve System against
      "Euro-currency Liabilities" as defined in Regulation D of the Board of
      Governors of the Federal Reserve System (or any successor) as the same may
      be modified or supplemented and in effect from time to time.

            Restricted Investment - any investment made in cash or by delivery
      of Property to any Person, whether by acquisition of stock, Indebtedness
      or other obligation or Security, or by loan, advance or capital
      contribution, or otherwise, or in any Property except the following:

                  (i) investments in one or more Subsidiaries of Borrowers to
            the extent existing on the Closing Date;

                  (ii)  Property to be used in the ordinary course of business;

                 (iii) Current Assets arising from the sale of goods and
            services in the ordinary course of business of Borrowers and their
            Subsidiaries;

                  (iv) investments in direct obligations of the United States of
            America, or any agency thereof or obligations guaranteed by the
            United States of America, provided that such obligations mature
            within one (1) year from the date of acquisition thereof;

                   (v) investments in certificates of deposit maturing within
            one (1) year from the date of acquisition issued by a bank or trust
            company organized under the laws of the United States or any state
            thereof having capital surplus and undivided profits aggregating at
            least $100,000,000; and

                  (vi) investments in commercial paper given the highest rating
            by a national credit rating agency and maturing not more than 270
            days from the date of creation thereof.

            Revolving Credit Commitment - for each Lender, the obligation of
      such Lender to make Revolving Credit Loans in an aggregate principal
      amount at any one time outstanding up to but not exceeding (a) in the case
      of any such Lender originally party hereto, the sum of (i) the amount set
      opposite the name of such Lender on the signature pages hereto plus (ii)
      the aggregate amount of Revolving Credit Commitments acquired by such
      Lender from other Lenders pursuant to Sections 4.4.2, 12.10 and 13.3
      hereof minus (iii) the aggregate amount of Revolving Credit Commitments
      transferred by such Lender to one or more other Lenders pursuant to
      Sections 4.4.2, 12.10 and 13.3 hereof and (b) in the case of any such
      Lender that was not originally party hereto, (i) the aggregate amount of
      Revolving Credit Commitments acquired by such Lender from one or more
      other Lenders pursuant to Sections 4.4.2, 12.10 and 13.3 hereof, minus
      (ii) the aggregate amount of Revolving Credit Commitments transferred by
      such Lender to one or more

                                      -97-
<PAGE>

      other Lenders pursuant to Sections 4.4.2, 12.10 and 13.3 hereof, in each
      case, as such obligation may be reduced from time to time.

            Revolving Credit Commitment Percentage - as to any Lender, the ratio
      of (a) the amount of the Revolving Credit Commitment of such Lender to (b)
      the aggregate amount of the Revolving Credit Commitments of all of the
      Lenders.

            Revolving Credit Commitment Termination Date - June 30, 2005.

            Revolving Credit Loan - a Loan made by Lender as provided in Section
      2.1 of the Agreement.

            Revolving Credit Note(s) - the Promissory Notes to be executed by
      Borrowers on or about the Closing Date in favor of each of the Lenders to
      evidence the Revolving Credit Loans, which shall be in substantially the
      form of Exhibit A to the Agreement.

            Schedule of Accounts - as defined in subsection 7.2.1 of the
      Agreement.

            Security - shall have the same meaning as in Section 2(1) of the
      Securities Act of 1933, as amended.

            Security Agreements - the Security Agreements executed and delivered
      by each Guarantor in form and substance satisfactory to Agent.

            Security Documents - the Security Agreements, the Mortgages, the
      Guaranty Agreements, and all other instruments and agreements now or at
      any time hereafter securing the whole or any part of the Obligations.

            Solvent - as to any Person, that such Person (i) owns Property whose
      fair saleable value is greater than the amount required to pay all of such
      Person's Indebtedness (including contingent debts), (ii) is able to pay
      all of its Indebtedness as such Indebtedness matures and (iii) has capital
      sufficient to carry on its business and transactions and all business and
      transactions in which it is about to engage.

            Standby Letter of Credit - a Letter of Credit issued for any purpose
      other than the purchase of goods.

            Subordinated Debt - Indebtedness of Borrowers that is subordinated
      to the Obligations in a manner satisfactory to Agent.

            Subsidiary - any Person of which the Borrower owns, directly or
      indirectly through one or more intermediaries, (i) shares of stock having
      ordinary voting power to elect a majority of the Board of Directors (or
      equivalent governing body) of such Person (irrespective of whether at the
      time stock of any other class or classes of such Person shall or might
      have voting power upon the occurrence of any contingency); or (ii) more
      than

                                      -98-
<PAGE>

      50% of the Voting Stock or any other ownership or equity interest in such
      Person; or (iii) controls the management of such Person.

            SwingLine Loans - as defined in Section 3.1.3(ii) of the Agreement.

            SwingLine Notes - the Promissory Note to be executed by Borrowers on
      or about the Closing Date in favor of FCC to evidence the SwingLine Loans,
      which shall be in substantially the form of Exhibit A to the Agreement.

            Total Credit Facility - $150,000,000.

            Total Liabilities - at any date means all amounts properly
      classified as liabilities on a balance sheet at such date in accordance
      with GAAP, plus all reserves for contingencies and all other potential
      liabilities for which no reserves have previously been established on such
      balance sheet, to the extent such amounts are not already classified as
      liabilities in accordance with GAAP.

            Type of Organization - with respect to Borrowers, the kind or type
      of entity by which each Borrower is organized, such as a corporation or
      limited liability company.

            UCC - the Uniform Commercial Code as in effect in the State of
      Connecticut on the date of this Agreement, as the UCC may be amended or
      otherwise modified, including by the UCC Revisions.

            UCC Revisions - the revisions to Article 9 and other Articles of the
      Uniform Commercial Code, as adopted by the State of Connecticut, effective
      October 1, 2001.

            Voting Stock - Securities of any class or classes of a corporation
      the holders of which are ordinarily, in the absence of contingencies,
      entitled to elect a majority of the corporate directors (or Persons
      performing similar functions).

            Other Terms. All other terms contained in the Agreement shall have,
when the context so indicates, the meanings provided for by the UCC to the
extent the same are used or defined therein.

            Certain Matters of Construction. The terms "herein," "hereof" and
"hereunder" and other words of similar import refer to the Agreement as a whole
and not to any particular section, paragraph or subdivision. Any pronoun used
shall be deemed to cover all genders. The section titles, table of contents and
list of exhibits appear as a matter of convenience only and shall not affect the
interpretation of the Agreement. All references to statutes and related
regulations shall include any amendments of same and any successor statutes and
regulations. All references to any of the Loan Documents shall include any and
all modifications thereto and any and all extensions or renewals thereof.

                                      -99-
<PAGE>

LIST OF EXHIBITS

Exhibit A   Form of Revolving Credit Note
Exhibit B   Form of SwingLine Note
Exhibit C   Each Borrower's and each Subsidiary's Business Locations
Exhibit D   Jurisdictions in which each Borrower and each Subsidiary is
            Authorized to do Business
Exhibit E   Capital Structure of Borrowers
Exhibit F   Corporate Names
Exhibit G   Guarantees
Exhibit H   Tax Identification Numbers of Subsidiaries
Exhibit I   Patents, Trademarks, Copyrights and Licenses
Exhibit J   Contracts Restricting any Borrower's Right to Incur Debts
Exhibit K   Litigation
Exhibit L   Capitalized Leases
Exhibit M   Operating Leases
Exhibit N   Pension Plans
Exhibit O   Labor Contracts
Exhibit P   Compliance Certificate
Exhibit Q   Permitted Liens
Exhibit R   Borrowing Base Certificate
Exhibit S   Affiliate Transactions
Exhibit T   Notice of Assignment and Form of Assignment and Acceptance Agreement
Exhibit U   Form of Mortgage
Exhibit V   Real Property
Exhibit W   Bank Accounts

                                     -100-
<PAGE>

                                    EXHIBIT A

                          FORM OF REVOLVING CREDIT NOTE

$______________                                       __________________, 20__

                                                      ____________, __________

      FOR VALUE RECEIVED, the undersigned, UNITED NATURAL FOODS, INC., a
Delaware corporation with its chief executive office and principal place of
business located at 260 Lake Road, Dayville, Connecticut 06241 ("UNF"), MOUNTAIN
PEOPLE'S WAREHOUSE INCORPORATED, a California corporation with its chief
executive office and principal place of business located at 12745 Earhart
Avenue, Auburn, California 95602 ("MPW"), NUTRASOURCE, INC., a Washington
corporation with its chief executive office and principal place of business
located at 12745 Earhart Avenue, Auburn, CA 95602 ("NutraSource"), RAINBOW
NATURAL FOODS, INC., a Colorado corporation with its chief executive office and
principal place of business located at 260 lake Road, Dayville, CT 06241
("Rainbow"), STOW MILLS, INC., a Vermont corporation with its chief executive
office and principal place of business located at 70 Stow Drive, Chesterfield,
New Hampshire 03443 ("SMI"), and UNITED NATURAL FOODS PENNSYLVANIA, INC. with
its chief executive office and principal place of business located at 70 Stow
Drive, Chesterfield, NH 03443 ("UNFPA") (jointly and severally, the "Borrowers")
jointly and severally promise to pay to the order of _______________ ("Lender"),
at the office of the Agent, defined below, located at 200 Glastonbury Boulevard,
Glastonbury, Connecticut 06033, in lawful money of the United States of America
and in immediate available funds, the principal amount of ____________________
_______________________ Dollars ($_______________________) or such lesser sum as
may constitute Lender's Pro Rata share of the outstanding amount of all
Revolving Credit Loans made pursuant to the Loan Agreement referred to below, in
accordance with the terms thereof.

      This Revolving Credit Note (the "Note") is a Revolving Credit Note
referred to in, and is issued pursuant to, that certain Loan and Security
Agreement among Borrowers, Fleet Capital Corporation as administrative and
collateral agent ("Agent") for itself and the lenders from time to time a party
thereto (the "Lenders"), Fleet Securities, Inc. as syndication arranger for the
Lenders ("Arranger"), Citizens Bank of Massachusetts as the syndication agent
for the Lenders (the "Syndication Agent") and U.S. Bank National Association as
the documentation agent for the Lenders (the "Documentation Agent") dated the
date hereof (hereinafter, as amended from time to time, the "Loan Agreement"),
and is entitled to all of the benefits and security of the Loan Agreement. All
of the terms, covenants and conditions of the Loan Agreement and the Security
Documents are hereby made a part of this Note and are deemed incorporated herein
in full. All capitalized terms used herein, unless otherwise specifically
defined in this Note, shall have the meanings ascribed to them in the Loan
Agreement.

<PAGE>

      The rate of interest in effect hereunder shall be calculated with
reference to the Base Rate or LIBOR, as applicable, as more specifically
provided in the Loan Agreement. The interest due shall be computed and shall be
payable in the manner provided in the Loan Agreement.

      Except as otherwise expressly provided in the Loan Agreement, if any
payment on this Note becomes due and payable on a day other than a Business Day,
the maturity thereof shall be extended to the next succeeding Business Day, and
with respect to payments of principal, interest thereon shall be payable at the
then applicable rate during such extension. Notwithstanding the foregoing, if
any portion of the Revolving Credit Loans evidenced by this promissory note
constitutes a LIBOR Advance, and an extension of the maturity of any payment
hereon would cause the maturity thereof to occur during the next calendar month,
then such payment shall mature on the next preceding Business Day.

      This Note shall be subject to mandatory prepayment in accordance with the
provisions of Section 3.3 of the Loan Agreement. Borrowers may also terminate
the Loan Agreement and, in connection with such termination, prepay this Note in
the manner provided in Section 5 of the Loan Agreement.

      Upon the occurrence and continuation of any one or more of the Events of
Default specified in the Loan Agreement which have not been cured by Borrowers
or waived by Agent, Agent may declare all Obligations evidenced hereby to be
immediately due and payable (except with respect to any Event of Default set
forth in subsection 11.1.10 of the Loan Agreement, in which case all Obligations
evidenced hereby shall automatically become immediately due and payable without
the necessity of any notice or other demand) without presentment, demand,
protest or any other action or obligation of the Agent or the Lender.

      Time is of the essence of this Note. Borrowers hereby waive presentment,
demand, protest and notice of any kind. No failure to exercise, and no delay in
exercising, any rights hereunder on the part of the holder hereof shall operate
as a waiver of such rights.

      Wherever possible, each provision of this Note shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Note shall be prohibited or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity
without invalidating the remainder of such provision or remaining provisions of
this Note. No delay or failure on the part of Agent or Lender in the exercise of
any right or remedy hereunder shall operate as a waiver thereof, nor as an
acquiescence in any default, nor shall any single or partial exercise by Agent
or Lender of any right or remedy preclude any other right or remedy. Subject to
the terms of the Loan Agreement, Agent, at its option, may enforce its rights
against any collateral securing this Note without enforcing its rights against
Borrowers, any guarantor of the indebtedness evidenced hereby or any other
property or indebtedness due or to become due to Borrowers. Borrowers agree
that, without releasing or impairing Borrowers' liability hereunder, Agent may
at any time release, surrender, substitute or exchange any collateral securing
this Note and may at any time release any party primarily or secondarily liable
for the indebtedness evidenced by this Note.

                                       2
<PAGE>

      The validity, interpretation and enforcement of this promissory note shall
be governed by the internal laws of the State of Connecticut without giving
effect to the conflict of laws principles thereof.

                                       UNITED NATURAL FOODS, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       MOUNTAIN PEOPLE'S WAREHOUSE INCORPORATED

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       NUTRASOURCE, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       RAINBOW NATURAL FOODS, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       UNITED NATURAL FOODS OF
                                       PENNSYLVANIA, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       3
<PAGE>

                                       STOW MILLS, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       4
<PAGE>

EXHIBIT B

FORM OF SWINGLINE NOTE

$10,000,000.00                                        __________________, 2001
                                                      Hartford, Connecticut

      FOR VALUE RECEIVED, the undersigned, UNITED NATURAL FOODS, INC., a
Delaware corporation with its chief executive office and principal place of
business located at 260 Lake Road, Dayville, Connecticut 06241 ("UNF"), MOUNTAIN
PEOPLE'S WAREHOUSE INCORPORATED, a California corporation with its chief
executive office and principal place of business located at 12745 Earhart
Avenue, Auburn, California 95602 ("MPW"), NUTRASOURCE, INC., a Washington
corporation with its chief executive office and principal place of business
located at 12745 Earhart Avenue, Auburn, CA 95602 ("NutraSource"), RAINBOW
NATURAL FOODS, INC., a Colorado corporation with its chief executive office and
principal place of business located at 260 Lake Road, Dayville, CT 06241
("Rainbow"), STOW MILLS, INC., a Vermont corporation with its chief executive
office and principal place of business located at 70 Stow Drive, Chesterfield,
New Hampshire 03443 ("SMI"), and UNITED NATURAL FOODS PENNSYLVANIA, INC. with
its chief executive office and principal place of business located at 70 Stow
Drive, Chesterfield, NH 03443 ("UNFPA") (jointly and severally, the "Borrowers")
jointly and severally promise to pay to the order of Fleet Capital Corporation
("Lender"), at the office of the Agent, defined below, located at 200
Glastonbury Boulevard, Glastonbury, Connecticut 06033, in lawful money of the
United States of America and in immediate available funds, the principal amount
of Ten Million Dollars ($10,000,000.00) or such lesser sum as may constitute the
outstanding amount of all SwingLine Loans made pursuant to the Loan Agreement
referred to below, in accordance with the terms thereof.

      This SwingLine Note (the "Note") is the SwingLine Note referred to in, and
is issued pursuant to, that certain Loan and Security Agreement among Borrowers,
Fleet Capital Corporation ("Agent") as administrative and collateral agent for
itself and the Lenders from time to time a party thereto ("Lenders") and Lenders
dated the date hereof (hereinafter, as amended from time to time, the "Loan
Agreement"), and is entitled to all of the benefits and security of the Loan
Agreement. All of the terms, covenants and conditions of the Loan Agreement and
the Security Documents are hereby made a part of this Note and are deemed
incorporated herein in full. All capitalized terms used herein, unless otherwise
specifically defined in this Note, shall have the meanings ascribed to them in
the Loan Agreement.

      The rate of interest in effect hereunder shall be calculated with
reference to the Base Rate, as more specifically provided in the Loan Agreement.
The interest due shall be computed and shall be payable in the manner provided
in the Loan Agreement.

      Except as otherwise expressly provided in the Loan Agreement, if any
payment on this Note becomes due and payable on a day other than a Business Day,
the maturity thereof shall be

<PAGE>

extended to the next succeeding Business Day, and with respect to payments of
principal, interest thereon shall be payable at the then applicable rate during
such extension.

      This Note shall be subject to mandatory prepayment in accordance with the
provisions of Section 3.3 of the Loan Agreement. Borrowers may also terminate
the Loan Agreement and, in connection with such termination, prepay this Note in
the manner provided in Section 4 of the Loan Agreement.

      Upon the occurrence and continuation of any one or more of the Events of
Default specified in the Loan Agreement which have not been cured by Borrowers
or waived by Agent, Agent may declare all Obligations evidenced hereby to be
immediately due and payable (except with respect to any Event of Default set
forth in subsection 10.1.10 of the Loan Agreement, in which case all Obligations
evidenced hereby shall automatically become immediately due and payable without
the necessity of any notice or other demand) without presentment, demand,
protest or any other action or obligation of the Agent or the Lender.

      Time is of the essence of this Note. Borrowers hereby waive presentment,
demand, protest and notice of any kind. No failure to exercise, and no delay in
exercising, any rights hereunder on the part of the holder hereof shall operate
as a waiver of such rights.

      Wherever possible, each provision of this Note shall be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Note shall be prohibited or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity
without invalidating the remainder of such provision or remaining provisions of
this Note. No delay or failure on the part of Agent or Lender in the exercise of
any right or remedy hereunder shall operate as a waiver thereof, nor as an
acquiescence in any default, nor shall any single or partial exercise by Agent
or Lender of any right or remedy preclude any other right or remedy. Subject to
the terms of the Loan Agreement, Agent, at its option, may enforce its rights
against any collateral securing this Note without enforcing its rights against
Borrowers, any guarantor of the indebtedness evidenced hereby or any other
property or indebtedness due or to become due to Borrowers. Borrowers agree
that, without releasing or impairing Borrowers' liability hereunder, Agent may
at any time release, surrender, substitute or exchange any collateral securing
this Note and may at any time release any party primarily or secondarily liable
for the indebtedness evidenced by this Note.

      The validity, interpretation and enforcement of this promissory note shall
be governed by the internal laws of the State of Connecticut without giving
effect to the conflict of laws principles thereof.

                                       UNITED NATURAL FOODS, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________
<PAGE>

                                       MOUNTAIN PEOPLE'S WAREHOUSE INCORPORATED

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       NUTRASOURCE, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       RAINBOW NATURAL FOODS, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       UNITED NATURAL FOODS OF
                                       PENNSYLVANIA, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

                                       STOW MILLS, INC.

_________________________________      By: __________________________________

                                           Name: ____________________________

                                           Title: ___________________________

<PAGE>

EXHIBIT C

BUSINESS LOCATIONS - [complete for each Borrower]

1.    Borrower currently has the following business locations, and no others:

      Chief Executive Office:

      Other Locations:

2.    Borrower maintains its books and records relating to Accounts and General
      Intangibles at:

3.    Borrower has had no office, place of business or agent for process located
      in any county other than as set forth above, except:

4.    Each Subsidiary currently has the following business locations, and no
      others:

      Chief Executive Office:

      Other Locations:

5.    Each Subsidiary maintains its books and records relating to Accounts and
      General Intangibles at:

6.    Each Subsidiary has had no office, place of business or agent for process
      located in any county other than as set forth above, except:

<PAGE>

7.    The following bailees, warehouseman, similar parties and consignees hold
      Inventory of Borrower or one of its Subsidiaries:

================================================================================
                                Nature of        Amount of        Owner of
 Name and Address of Party     Relationship      Inventory        Inventory
 -------------------------     ------------      ---------        ---------
--------------------------------------------------------------------------------

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

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

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

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

<PAGE>

EXHIBIT D

                         JURISDICTIONS IN WHICH BORROWER
                              AND ITS SUBSIDIARIES
                          ARE AUTHORIZED TO DO BUSINESS
                          [COMPLETE FOR EACH BORROWER]

            Name of Entity                                  Jurisdictions
            --------------                                  -------------

<PAGE>

EXHIBIT E

CAPITAL STRUCTURE [complete for each Borrower]

1.    The classes and number of authorized shares of Borrower and each
      Subsidiary and the record owner of such shares are as follows:

Borrower:

================================================================================
                                                                    Number of
                                                                     Shares
                 Number of Shares                                  Authorized
                   Issued and                                          but
Class of Stock     Outstanding             Record Owners            Unissued
--------------     -----------             -------------            --------
--------------------------------------------------------------------------------

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

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

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

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

Subsidiaries:

================================================================================
                                                                    Number of
                                                                     Shares
                 Number of Shares                                  Authorized
                   Issued and                                          but
Class of Stock     Outstanding             Record Owners            Unissued
--------------     -----------             -------------            --------
--------------------------------------------------------------------------------

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

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

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

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

<PAGE>

2.    The number, nature and holder of all other outstanding Securities of
      Borrower and each Subsidiary are as follows:

3.    The correct name and jurisdiction of incorporation of each Subsidiary of
      Borrower and the percentage of its issued and outstanding shares owned by
      Borrower are as follows:

================================================================================
                                                               Percentage of
                                                                  Shares
                                       Jurisdiction of           Owned by
              Name                      Incorporation            Borrower
              ----                      -------------            --------
--------------------------------------------------------------------------------

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

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

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

4.    The name of each of Borrowers' corporate or joint venture Affiliates and
      the nature of the affiliation are as follows:

<PAGE>

EXHIBIT F

CORPORATE NAMES [Complete for each Borrower]

1.    Borrowers' correct corporate name, as registered with the Secretary of
      State of the State of ______________, is:

2.    In the conduct of its business, Borrower has used the following names:

3.    Each Subsidiaries' correct corporate name, as registered with the
      Secretary of State of the State of its incorporation, is:

4.    In the conduct of its business, each Subsidiary has used the following
      names:

5.    Borrowers' Organizational I.D. Number is:

6.    Each Subsidiaries' Organizational Number(s) is/are:

7.    Borrowers' Type of Organization is:

8.    Each Subsidiaries Type(s) of Organization is/are:

<PAGE>

EXHIBIT G

GUARANTEES

<PAGE>

EXHIBIT H

TAX IDENTIFICATION NUMBERS OF SUBSIDIARIES [Complete for each Borrower]

                  Subsidiary                                Number
                  ----------                                ------

<PAGE>

EXHIBIT I

PATENTS, TRADEMARKS, COPYRIGHTS AND LICENSES [Complete for each Borrower]

1.    Borrowers' and its Subsidiaries' patents:

================================================================================
                                    Status in         Federal
                                      Patent       Registration   Registration
    Patent            Owner           Office           Number         Date
    ------            -----           ------           ------         ----
--------------------------------------------------------------------------------

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

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

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

2.    Borrowers' and its Subsidiaries' trademarks:

================================================================================
                                    Status in        Federal
                                    Trademark     Registration    Registration
  Trademark           Owner           Office          Number          Date
  ---------           -----           ------          ------          ----
--------------------------------------------------------------------------------

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

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

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

<PAGE>

3.    Borrowers' and its Subsidiaries' copyrights:

================================================================================
                                    Status in        Federal
                                    Copyright     Registration    Registration
  Copyrights          Owner           Office          Number          Date
  ----------          -----           ------          ------          ----
--------------------------------------------------------------------------------

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

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

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

4.    Borrowers' and its Subsidiaries' licenses (other than routine business
      licenses, authorizing them to transact business in local jurisdictions):

================================================================================
                                                                    Term of
    Name of License       Nature of License        Licensor         License
    ---------------       -----------------        --------         -------
--------------------------------------------------------------------------------

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

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

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

<PAGE>

EXHIBIT J

      CONTRACTS RESTRICTING BORROWER'S RIGHT TO INCUR DEBTS

      [Complete for each Borrower]

      Contracts that restrict the right of Borrower to incur Indebtedness:

================================================================================
                                                  Nature of         Term of
   Title of Contract     Identity of Parties      Restriction       Contract
   -----------------     -------------------      -----------       --------
--------------------------------------------------------------------------------

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

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

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

<PAGE>

EXHIBIT K

LITIGATION [Complete for each Borrower]

1.    Actions, suits, proceedings and investigations pending against Borrower or
      any Subsidiary:

================================================================================
                                                                   Jurisdiction
                                                                        or
   Title of Action       Nature of Action    Complaining Parties     Tribunal
   ---------------       ----------------    -------------------     --------
--------------------------------------------------------------------------------

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

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

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

2.    The only threatened actions, suits, proceedings or investigations of which
      Borrower or any Subsidiary is aware are as follows:

<PAGE>

EXHIBIT L

CAPITALIZED LEASES [Complete for each Borrower]

Borrower and its Subsidiaries have the following capitalized leases:

================================================================================
      Lessee                 Lessor         Term of Lease    Property Covered
      ------                 ------         -------------    ----------------
--------------------------------------------------------------------------------

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

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

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

<PAGE>

EXHIBIT M

OPERATING LEASES [Complete for each Borrower]

Borrower and its Subsidiaries have the following operating leases:

================================================================================
      Lessee                 Lessor         Term of Lease    Property Covered
      ------                 ------         -------------    ----------------
--------------------------------------------------------------------------------

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

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

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

<PAGE>

EXHIBIT N

PENSION PLANS

[Complete for each Borrower]

Borrower and its Subsidiaries have the following Plans:

================================================================================
                    Party                                 Type of Plan
                    -----                                 ------------
--------------------------------------------------------------------------------
Borrower
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
[Subsidiaries]
--------------------------------------------------------------------------------

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

<PAGE>

EXHIBIT O

COLLECTIVE BARGAINING AGREEMENTS; LABOR CONTROVERSIES
[Complete for each Borrower]

1.    Borrower and its Subsidiaries are parties to the following collective
      bargaining agreements:

================================================================================
    Type of Agreement                   Parties              Term of Agreement
    -----------------                   -------              -----------------
--------------------------------------------------------------------------------

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

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

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

2.    Material grievances, disputes of controversies with employees are as
      follows:

================================================================================
        Parties Involved        Nature of Grievance, Dispute or Controversy
        ----------------        -------------------------------------------
--------------------------------------------------------------------------------

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

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

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

3.    Threatened strikes, work stoppages and asserted pending demands for
      collective bargaining are as follows:

================================================================================
             Parties Involved                         Nature of Matter
             ----------------                         ----------------
--------------------------------------------------------------------------------

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

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

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

<PAGE>

EXHIBIT P

COMPLIANCE CERTIFICATE

                           UNITED NATURAL FOODS, INC.
                                  260 Lake Road
                           Dayville, Connecticut 06241

                                          __________________, 20__

Fleet Capital Corporation
200 Glastonbury Boulevard
Glastonbury, CT  06033
Attention:  Loan Administration Manager

            The undersigned, the chief financial officer of _________
_______________________, a _______________ corporation ("Borrower"), gives this
certificate to Fleet Capital Corporation ("Agent") in accordance with the
requirements of subsection 9.1.3 of that certain Loan and Security Agreement
dated August __, 2001, among United Natural Foods, Inc. and certain of its
subsidiaries and affiliates "Borrower"), the financial institutions party
thereto as lenders ("Lenders"), Agent, Fleet Securities, Inc. as arranger for
the Lenders, Citizens Bank of Massachusetts as syndication agent for the Lenders
and U.S. Bank National Association as documentation agent for the Lenders ("Loan
Agreement"). Capitalized terms used in this Certificate, unless otherwise
defined herein, shall have the meanings ascribed to them in the Loan Agreement.

            1. Based upon my review of the balance sheets and statements of
income of Borrower for the [fiscal year] [quarterly period] ending
__________________, 20__, copies of which are attached hereto, I hereby certify
that:

                  (a) the Fixed Charge Coverage Ratio is ___ to 1;

                  (b) the Net Worth is $______________; and

                  (c) Capital Expenditures during the period and for the fiscal
                  year-to-date total $__________ and $__________, respectively.
<PAGE>

            2. No Default exists on the date hereof, other than
________________________________________ [if none, so state].

            3. No Event of Default exists on the date hereof, other than
________________________________________ [if none, so state].

                                    Very truly yours,

                                    _______________________________

                                    Its Chief Financial Officer

<PAGE>

EXHIBIT Q

PERMITTED LIENS

================================================================================
               Secured Party                          Nature of Lien
               -------------                          --------------
--------------------------------------------------------------------------------

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

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

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

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

<PAGE>

EXHIBIT R

BORROWING BASE CERTIFICATE

                           [To Be Furnished by Lender]

<PAGE>

EXHIBIT S

AFFILIATE TRANSACTIONS

<PAGE>

EXHIBIT T

NOTICE OF ASSIGNMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]