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                                                                  EXHIBIT 10.24

THIS LEASE made the                        day of                       2001

BETWEEN

CANADA LIFE ASSURANCE (IRELAND) LIMITED having its registered office at Canada
Life House, Temple Road, Blackrock in the County of Dublin (hereinafter called
the "Lessor" which expression shall include its successors and assigns) of the
One Part

AND

BEI ELECTRONICS IRELAND LIMITED having its registered office at 1 Stokes Place,
St. Stephen's Green, Dublin 2 (hereinafter called "the Lessee" which expression
shall un1ess otherwise stated include its successors and permitted assigns) of
the Other Part.

A.        DEFINITIONS

          In this Lease and the Schedules hereto (save where the context
          otherwise requires or implies) the following words and expressions
          shall have the following meanings:-

          "THE SUPERIOR LESSOR." means Industrial Development Agency (Ireland),
          having its principal office at Wilton Park House, Wilton Place in the
          City of Dublin and shall include its successors and assigns;

          "THE SUPERIOR LEASE" means Indenture of Lease dated the ___ November
          2000 and made between the Superior Lessor of the one part and the
          Lessor of the other part.

          "THE INDUSTRIAL ESTATE " means the lands and premises of Industrial
          Development Agency (Ireland) situate at Snugborough, Blanchardstown in
          the County of Dublin and known as Blanchardstown Business Park,
          Blanchardstown, Dublin 15.

B.        INTERPRETATION

          1.       The several Schedules hereto shall be deemed to be
                   incorporated in and to form part of these presents and the
                   provisions thereof shall apply and operate a though the same
                   were set forth ad longum herein.

          2.       Any reference in this Indenture to any Act shall be deemed to
                   include any amendment, modification or re-enactment thereof
                   for the time being in force

          3.       Any covenants in this Indenture by the Lessor or the Lessee
                   not to do any act or thing shall extend to his not suffering
                   or permitting the doing of that act or thing.

          4.       Any reference in this Indenture to the doing or permitting of
                   any act or thing by the Lessor or the Lessee shall be deemed
                   to include the doing or permitting of that act or thing by
                   the agents, workmen, servants or other employees or duly
                   authorized agents of the lessee.

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          5.       The masculine gender includes the feminine and the neuter
                   genders and words in the singular shall include the plural.

          6.       The Clause headings shall not in any way affect the
                   interpretation of this Lease.

          7.       Any reference in this lease to "IR(pound)" pounds or money
                   shall mean Irish Pounds or any other currency or unit of
                   currency that may replace the Irish Pound.

WITNESSETH as follows:-

1.     DEMISE

       In consideration of the rents (including any increases thereof as may
       arise as hereinafter provided), covenants and conditions hereinafter
       reserved and contained and on the part of the Lessee to be paid, observed
       and performed the Lessor HEREBY DEMISES unto the Lessee ALL THAT AND
       THOSE the premises more particularly described in the Schedule hereto
       TOGETHER WITH: -

       1.1    the factory and other buildings erected thereon and the Lessor's
              fixtures, fittings and equipment therein or thereon hereto (all of
              which said land, buildings, fixtures, fittings and equipment are
              hereinafter collectively called "the demised premises") and;

       1.2    full and free right in common with the Lessor and all other
              persons who no have or shall hereafter have the like right at all
              reasonable times to go pass and repass over the roads and
              entranceways constructed or to be constructed within a period of
              twenty-one years from the date hereof on the adjoining premises
              coloured yellow hatched yellow and crosshatched yellow on the Plan
              annexed hereto for the purpose of access to and egress from the
              demised premises;

       EXCEPTING AND RESERVING unto the Lessor:-

              (a)    the free and uninterrupted passage and running of water,
                     soil and effluent drainage, gas, water, oil and
                     electricity, steam, telephone or any other service or
                     supply to and from the other buildings and lands the
                     property of the Lessor and its tenants adjoining or near to
                     the. demised premises through the sewers, drains,
                     watercourses, conduits, pipes, wire and cables which now
                     are or may hereafter within the period of this Lease during
                     the term hereby granted be in or over, under or upon the
                     demised premises;

              (b)    at any time hereafter and from time to time full right and
                     liberty to execute works, services and erections and
                     buildings upon or to alter or rebuild any of the erections,
                     services and buildings erected on its

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                     adjoining and neighbouring lands and to use the same as it
                     may think fit provided that the Tenant's use and occupation
                     of the demised premises is not materially affected;

              (c)    the full and free right and liberty to the Lessor, its
                     servants and agents to enter after at least three working
                     days notice (except in the case emergency) upon the demised
                     premises at all reasonable times for the purpose of
                     connecting, laying, inspecting, repairing, cleaning,
                     maintaining, altering, replacing or renewing any sewer,
                     drain, main, pipe, wire, cable, watercourse, channel,
                     conduit or subway including the provision of a Water meter
                     and to erect, construct or lay in, over, under or across
                     the demised premises not built upon any sewers, drains,
                     main, pipes, wires, cables, poles, structures, fixtures or
                     other works for the drainage of or for the supply of water,
                     gas, electricity, oil, telephone, telex, heating, steam,
                     radio and television signals and other services to other
                     premises of the Lessor causing as little inconvenience as
                     possible to the Lessee and the Lessor making good any
                     damage as soon as practicably possible to the demised
                     premises hereby occasioned including a Wayleave in favour
                     of Bord Gais Eireann over that part of the demised premises
                     shown coloured green on the map annexed hereto;

              (d)    all rights, easements and privileges now belonging to or
                     enjoyed by any adjoining property;

              All mines, minerals, quarries and royalties whatsoever in or under
              the demised premises during the term of the demise are excepted
              and reserved out of the demise.

              TO HOLD the same unto the Lessor for the term of twenty years from
              the 1st day of December 2000 subject to the covenants, terms and
              conditions hereinafter contained YIELDING AND PAYING therefor and
              thereout during each of the first five years of the said term the
              yearly rent of IR(pound)398,125 (Three hundred and ninety eight
              thousand one hundred and twenty five pounds) and thereafter during
              each of the successive periods of five years of which the first
              shall begin, on the 1st day of December 2005 a rent equal to (a)
              the rent payable hereunder during the preceding period or (b) such
              revised rent as may from time to time be ascertained in accordance
              with the provisions in that behalf contained in Clause 3 hereof
              (whichever shall be the greater) such rent to be paid by way of
              standing order without any deduction in advance on the 1st day of
              September, 1st day of December, 1st day of March and 1st day of
              June in every year the first payment to be made on the execution
              hereof and to be in respect of the period from the 1st day of
              December 2000 to the 28th day of February 2001 AND ALSO YIELDING
              AND PAYING on demand to the Lessor yearly and so in proportion for
              every part of a year by way of further or additional rent the sum
              or sums payable by the Lessee to the Lessor pursuant to the
              Lessee's covenant 2.2.2 hereof AND ALSO YIELDING AND PAYING on
              demand to

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              The lessor yearly and so in proportion for every part of a year by
              way of further or additional rent the sum or sums payable by the
              Lessee to the Lessor pursuant to the Lessee's covenant 2.11
              hereof.

2.      LESSEE'S COVENANTS

PAY RENT

       2.1    to pay the said yearly rents at the times and in the manner
              aforesaid clear of al deductions and by way of standing banker's
              order if required.

PAY OUTGOINGS

       2.2    (a)     to bear, pay and discharge all rates, taxes, assessments,
                      duties, charges outgoings and impositions whatsoever which
                      now are or during the salt term shall be charged, assessed
                      or imposed upon the demised premises or any part thereof
                      or upon the owner or occupier in respect thereof;

               (b)    to pay to the Lessor annually a sum or sums of money equal
                      to the amount which the Lessor may expend or require to
                      expend in effecting or procuring and maintaining or
                      procuring the maintenance of insurance of the demised
                      premises against the insured risks as defined in Claus 4
                      hereof to their full reinstatement cost and three years
                      loss of rent sue sum or sums to be paid without any
                      deduction in every year upon the Lessor's demand the first
                      payment (or a proportionate part thereof) t be made on the
                      execution hereof.

              (c)     To pay to the Lessor on demand a sum equal to one half of
                      the cost incurred during the term hereby granted by the
                      owners and occupiers or that part of the lands shown
                      crosshatched yellow on the Plan annexed hereto in
                      repairing, maintaining and renewing the said lands
                      PROVIDED ALWAYS that any dispute between the parties
                      hereto in relation to the Lessee's contribution hereunder
                      shall on the application of either party be determined by
                      a Chartered Surveyor who shall by appointed and shall act
                      in accordance with the manner specified in Clause 3
                      hereof.

PAY INTEREST

2.3           (a)     If the Lessee shall fail to pay the rent hereinbefore
                      reserved or any other sum reserved or made payable
                      hereunder within 14 days of the day and in the manner
                      herein prescribed for the payment of same every such
                      unpaid rent or sum shall bear interest at the rate of 3%
                      per annum above the rate from time to time charged by the
                      Associated Banks in the Republic of Ireland at the A.A.A.
                      rate on overdrafts from the date on

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                      which the rent or other sum became due until the actual
                      date of payment or if there shall be no such rate the
                      aforesaid rent or sum shall bear interest at the rate of
                      12% per annum,

              (b)     The Lessee shall pay to the Lessor on demand all legal and
                      other costs charges and expenses from time to time
                      incurred by the Lessor in connection With the Lessee's
                      obligations under this Lease or the enforcement of or
                      discharge by the Lessee of its obligations hereunder.

COMPLY ENACTMENTS

2.4           At all times during the said term to observe and comply in all
              respects with the provisions and requirements of any and every
              enactment for the time being force or any orders or regulations
              thereunder for the time being in force and do and execute or cause
              to be done and executed all such works as under or virtue of any
              such enactment or any orders or regulations thereunder for the
              time being in force are or shall be properly directed or necessary
              to be done or executed upon or in respect of the demised premises
              or any part thereof whether by the owner, landlord, lessee, tenant
              or occupier and at all times to keep the Lessor indemnified
              against all claims, demands and liability in respect thereof, and
              without derogating from the generality of the foregoing to comply
              with the requirements of any local or other statutory authority
              and the order or orders. of any Court jurisdiction and immediately
              after the receipt of any notice requiring works to be carried out
              by the local or Statutory Authority or by order of any Court of
              competent jurisdiction, the Lessee shall send a copy thereof to
              the Lessor;

COMPLY WITH FIRE REGULATIONS

2.5           At all times during the said term to comply with all the
              recommendations or requirements of the appropriate authority in
              relation to fire precautions whether notified or directed to the
              Lessor or the Lessee and to indemnify the Lessor against any
              reasonable costs or expenses in complying with any such
              requirement or recommendation and not to obstruct the access to or
              means of working any fire precaution or safety apparatus or
              appliance for the time being installed in the demised premises;

PAINT EXTERIOR

2.6           to prime and prepare for painting and to paint with at least two
              coats of good oil paint or such other paint as may be first
              approved both as to quality and color by the Lessor in a proper
              and workmanlike manner in every third year and in the last year of
              the said term (whether determined by effluxion of time or
              otherwise) all the gates, fences and outside wood, stucco and
              ironwork and other outside parts of the demised premises
              heretofore usually painted and any additions thereto proper to be
              painted and so often as may be necessary but not

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              less often than every third year and in the last year of the said
              term as aforesaid in a workmanlike manner to creosote, distemper,
              colour, whitewash & otherwise treat all other outside parts of the
              demised premises as have usually heretofore been so treated all
              such work as aforesaid to be done to the approval, of the Lessor;

PAINT INTERIOR

2.7           to prime and prepare for painting and to paint with two coats at
              least of good quality paint to be first approved by the Lessor in
              a workmanlike manner every fourth year and in the last year of the
              said term (whether determined by effluxion of time or otherwise)
              all inside wood and iron work and other inside parts of the
              demised premises heretofore usually painted and any additions
              thereto proper to be so painted and so often as may be necessary
              but not less often than every fourth year and in the last year of
              the said term as aforesaid in! a workmanlike manner to distemper,
              colour, whitewash or otherwise treat such' other inside parts of
              the demised premises as have usually heretofore been so treated
              and on the occasion of each repainting to grain, varnish, restore
              and make good all such work as aforesaid to be done to the
              approval of the Lessor;

TO MAINTAIN OPEN AREAS

2.8           to keep such part of the land forming part of the demised premises
              as is from time to time undeveloped and the grass, gardens and any
              tress, shrubs AND hedges in proper and neat order and condition
              and any ditches, streams, culverts and watercourses properly
              cleared and cleaned and the banks thereof in proper repair and
              condition and in particular not to deposit or permit to bb
              deposited any rubbish or refuse nor without the consent in writing
              of the Lessor (and then only on such parts of the lands and
              subject to such conditions as the Lessor may stipulate or impose)
              to store, stack or lay out any material used for. the purpose of
              manufacture or otherwise on any part of the said land;

TO REPAIR

2.9           at all times during the said term TO put into good and substantial
              repair and working order and condition and to repair and keep (and
              in the case of fixtures, heating installations, fittings and
              equipment to replace or renew as may from time to time be
              necessary) the exterior and interior of the demised premises and
              all additions thereto constructed or placed thereon and the
              Lessor's fixtures,. fittings and equipment therein and pipes,
              drains, wires, cables, meters, channels, sewers, sanitary and
              water apparatus, glass, pavings, walls, fences and railings vaults
              and appurtenances in good and substantial repair and working order
              and condition and maintained, paved, cleansed and amended in every
              respect (damage by any of the insured risks excepted PROVIDED THAT
              the policy or policies of insurance shall not have been vitiated
              or payment of the policy monies withheld or refused in whole or in
              part by reason of any act,

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              neglect or default of the Lessee or the servants, agents,
              licensees, or invitees of the Lessee);

TO COMPLY WITH FACTORIES ACT

2.10          Without prejudice to the generality of Clause 2.4 hereof, in all
              respects to comply with all the provisions of the Factories Act,
              Local Government (Planning and Development) Acts, the Building
              Control Act and the Public Health Acts and of all regulations
              thereunder and with any other obligations imposed by law in regard
              to the demised premises and carrying on of the trade. or business
              for the time being carried on upon the demised premises and to
              indemnify the Lessor against all liability in respect of any
              contraventions by the Lessee of any such requirements;

TO PAY SERVICE CHARGE

2.11          To pay to the Lessor annually a sum or sums of money equal to the
              amount which the Lessor shall pay to the Superior Lessor pursuant
              to Clause 1(4) of the Superior Lease in relation to the costs and
              expenses incurred by the Superior Lessor of all necessary
              maintenance, repair and upkeep (including operating security and
              insurance costs where applicable) of the common areas, common
              drainage and water services and public lighting in the Industrial
              Estate upon which the demised premises are situated.

TO PERMIT INSPECTION

2.12          to permit the Lessor or its duly authorised agents and all proper
              parties at all reasonable times to enter the demised premises and
              examine the state of repair and condition thereof (and in
              particular for all necessary purposes of providing, inspecting,
              maintaining and repairing the drains, sewers and water mama,
              electricity, gas, telephone and similar services) and to check and
              take inventories of the Lessors fixtures, fittings and equipment
              therein and to repair and make good all defects, decays and wants
              of repair thereto of which notice in writing shall be given by the
              Lessor to the Lessee and for which the Lessee may be liable
              hereunder within three calender months after the giving of such
              notice PROVIDED that in case of default by the Lessee the Lessor
              may make good such defects, decays and wants of repair and the
              cost of same shall be repayable by the Lessee to the Lessor on
              demand;

TO PERMIT ENTRY

2.13          to permit the Lessor and all persons authorised by it and its
              respective surveyors, agents and workmen upon prior reasonable
              notice at all reasonable and convenient times in the daytime or at
              any time in the case of emergency to enter on the demised premises
              or any part thereof for the purpose of repairing

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              building on any adjoining premises as occasion shall require and
              for the purpose of making, repairing, maintaining, cleansing,
              lighting and keeping in order and good condition all ways, roads,
              sewers, drains, pipes, gutters, watercourses, ditches, culverts,
              fences, hedges or other conveniences which, shall belong to or be
              used for the demised premises in common with other premises and
              also for the purpose of laying down, maintaining, repairing and
              testing drainage, gas and water pipes and electric wires or cables
              or for other similar purposes the Lessor or such persons aforesaid
              making good any damage, occasioned thereby to the demised
              premises;

NOT TO MAKE ALTERATIONS

2.14          (a)     not to make any alterations or additions to the demised
                      premises or erect any new buildings thereon without the
                      prior written consent of the Lessor and the approval of
                      the Lessor to the plans and specifications such consent
                      and approval not to be unreasonably withheld or delayed
                      thereof and if such consent and approval is given to make
                      such alterations or additions in conformity with such
                      plans and specifications and to the approval of the Lessor
                      and upon such terms as the Lessor (acting reasonably) may
                      consider appropriate;

              (b)     if the premises are altered (whether pursuant to a consent
                      given under Clause 2.14(a) hereof or otherwise) the Lessee
                      will, if so required by the Lessor, on the termination of
                      this Lease forthwith restore the, demised premises at the
                      Lessee's own expense to their original condition at the
                      date of this Lease and will make good all damage and want
                      repair and decoration caused by the original alteration or
                      restoration work;

PERMITTED USER

2.15          not to use the demised premises other than for the purpose of
              manufacturing light industrial or research and development and
              ancillary purposes or as centre for internationally traded
              services and not to use the demised premises or suffer or permit
              the same to be used for any other purpose whatsoever except with
              the previous written consent of the Lessor;

NOT TO CAUSE A NUISANCE

2.16          not to do or permit to be done upon or in connection with the
              demised premises or any part thereof any act, matter or thing
              whatsoever which may be or grow to be a nuisance or cause damage
              to any neighbouring, adjoining or adjacent property or the owners
              or occupiers thereof and to pay to the Lessor all reasonable and
              proper costs, charges and expenses which may be incurred by the
              Lessor in abating a nuisance in respect of the demised premises
              and to execute all such works as may be necessary for abating such
              a nuisance in

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              obedience of a notice lawfully served by a local or public
              authority or pursuant to any Court Order;

NOT TO EXHIBIT SIGNS

2.17          not to exhibit on any part of the undeveloped or unbuilt upon
              lands comprised in demised premises or on the outer walls or roofs
              of any building or structure thereon any signboard, placard,
              lettering or lighting of any kind except such as may previously
              have been approved by the Lessor in writing and in default or on
              the Lessor taking objection the Lessor may enter and remove the
              same at the lessee's cost PROVIDED however that the Lessee shall
              be entitled to erect a sign displaying the name of the Lessee in
              such position and of such for4 colour and design as may be first
              approved by the Lessor such approval not to be unreasonably
              withheld;

CONSUME SMOKE

2.18          to ensure that every furnace employed in the working of engines by
              steam other motive power and every other furnace employed in any
              building or erection on the demised premises is constructed so as
              substantially to consume or burn the smoke arising therefrom and
              not to use or suffer to be used negligently any such furnace so
              that the smoke arising therefrom is not substantially consumed or
              burnt and not to cause or permit any grit or noxious or offensive
              effluvia to be emitted from any engine, statutory furnace, chimney
              or other apparatus on the demised premises without using the best
              practicable means for preventing or counteracting such emission
              and in all provisions of all relevant statutes and aspects to
              comply with the regulations and with the requirements of any
              notice of the local or other competent authority served
              thereunder;

NOT TO DAMAGE DRAINS

2.19          to take such measures as may be necessary to ensure that any
              effluent discharged into the drains or sewers which belong to or
              are used for the demised premises in common with other premises
              will not be corrosive or in any way harmful to the said is drains
              or sewers or cause any obstruction or deposit therein;

NOT TO POLLUTE WATERCOUIRSES

2.20          not to discharge or allow to be discharged any solid matter from
              the demised premises into the drains or sewers as aforesaid nor to
              discharge or allow to be discharged therein any fluid of a
              poisonous or noxious nature or of a kind calculated to or that
              does in fact destroy, sicken or injure the fish or contaminate or
              pollute the water of any stream or river and not to do or omit

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              or allow or suffer to be done or omitted any act or thing whereby
              any land or the waters of any stream or river may be polluted or
              the composition thereof so, changed as to render the Lessor liable
              to any action or proceedings by any person whomsoever;

NOT TO OVERLOAD

2.21          not to do or permit or bring in or upon the demised premises
              anything the use of which would cause damage by vibration or
              otherwise to the demised premises or any adjoining premises or
              which might throw on the demised premises or any adjoining
              premises any weight or strain in excess of that which such
              premises are capable of bearing with due margin for safety and
              particular not to overload the floors, the joists or the
              electrical installations or the other services of, in or to the
              demised premises nor to suspend anfr1 excessive weight from the
              ceilings or walls, stanchions, joists or the structures thereof.
              The Lessee shall seek professional advice at the Lessee's own
              expense to ensure that there shall not be any infringement of this
              covenant;

NOT TO ASSIGN

2.22          (a)     not to assign, underlet, create any charge or mortgage
                      (whether legal or equitable charge or mortgage) over the
                      entirety of the demised premises or grant any Licence in
                      respect of the demised premises nor part with or share the
                      possession thereof without the consent of the Lessor such
                      consent not to be unreasonably withheld PROVIDED ALWAYS
                      that the Lessor shall be deemed to be acting reasonably
                      should it refuse to consent to the assignment or under
                      lease of the demised premises to any assignee or
                      under-lessee which shall not have given the Lessor
                      satisfactory proof that it can meet the obligations to pay
                      the rent reserved by this Lease or any reviewed rent, or
                      reserved by the Under Lease as the case may be and in the
                      case of an assignment of the Lessee's interest hereunder
                      shall not be able to procure execution by a surety of a
                      guarantee in the form of the Guarantee annexed hereto by a
                      surety which shall have given the Lessor satisfactory
                      proof of its ability to meet the obligations contained in
                      the said Guarantee;

              (b)     not to assign, sublet, part with or share possession of or
                      otherwise alienate part only of the demised premises;

NOTICE OF ASSIGNMENT

2.23          Within fourteen days of every assignment, assent, transfer,
              under-lease, assignment of under-lease or mortgage of or relating
              to the demised premises to give notice thereof in writing with
              particulars thereof to the Lessor's Solicitor and produce to him
              such instrument or other evidence of devolution and to pay the
              Lessor's Solicitors any reasonable and proper costs incurred by
              the Lessor relating thereto;

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NOT INVALIDATE INSURANCE

2.24          not to do or permit or suffer to be done anything whereby the
              policy or policies of insurance on the demised premises or any
              adjoining or neighbouring premises against damage by fire or other
              perils may become void or voidable or whereby the rates of premium
              thereon may be increased and to repay to the Lessor all sums paid
              or payable by way of increased premiums and all expenses incurred
              by it in or about the renewal of such policy or policies rendered
              necessary by a breach of this covenant and all such payments shall
              be made immediately on demand;

NOT TO STORE DANGEROUS SUBSTANCES

2.25          without prejudice to any other clause herein, not to keep or allow
              to be kept on the demised premises any substance or material of a
              combustible or offensive nature the keeping whereof may require a
              licence of any Local or Public Authority unless the Lessee obtains
              such a licence and complies with the terms and conditions thereof.
              The Lessee shall inform the Lessor in writing of any application
              for and of the issuing of such a licence;

PAY CONVEYANCING ACT CHARGES

2.26          to pay all reasonable and proper costs and charges and expenses
              (including solicitor's costs and surveyor's fees) incurred by
              the lessor for the purpose or incidental to the preparation and
              service of any notice under Section 14 of the Conveyancing Act
              1881 (or any statutory modification or reenactment thereof)
              requiring the lessee to remedy a breach of any of the covenants
              hereinbefore contained notwithstanding forfeiture for such breach
              may. be avoided otherwise than by relief granted by the court;

PAY VAT

2.27         to pay any Value Added Tax lawfully imposed upon and added to any
             fee, charge, cost or expense for which the Lessor may be liable
             under this Lease and to pay the stamp duty and registration fees on
             this Lease and counterpart and Value Added Tax payable by reason of
             the granting of this Lease;

YIELD UP

2.28          at the expiration or sooner determination of the said term quietly
              to yield up the demised premises together with all the Lessor's
              fixtures and all other Lessor's fittings and equipment that now
              are or which during the said term shall be affixed or fastened
              thereto (except Lessee's or trade fixtures) in such good and

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              substantial repair and condition as shall be in accordance with
              the covenants on the part of the Lessee herein contained and in
              case any of the said fixtures and fitting or equipment shall be
              missing, broken, damaged or destroyed forthwith to replace them
              with others of a similar kind and of equal value, fair wear and
              tear excepted, and to make good any damage caused to the demised
              premises by the removal of the Lessee's fixtures, fittings and
              furniture and effects (damage by any of the insured risks excepted
              if and so long only as the policy or policies of insurance shall
              not have been vitiated or payment of the policy monies withheld or
              refused in whole or in part by reason of any act, neglect or
              default of the Lessee or the servants, agents, licensees or
              invitees of the Lessee);

UNAUTHORISED USER

2.29          not at any time to use the demised premises or any part thereof or
              allow same to be used for any entertainment or for any dangerous,
              noisy or noxious or offensive trade, business, manufacture or
              occupation whatsoever or for residence or for any illegal or
              immoral purpose nor permit any sale or auction to be held on the
              demised premises;

OBSERVE COVENANTS IN SUPERIOR LEASE

2.30          to comply in so far as the same are applicable with the covenants
              of any condition (other than the covenant for payment of rent)
              contained in Superior Lease under which the demised premises are
              held by the Lessor,

INDEMNIFY LESSOR

2.31          (a)    to fully and effectually indemnity the Lessor against the
                     breach, non-performance or non-observance by the Lessee of
                     any of the covenant and conditions on the Lessee's part
                     herein contained against any action costs, claims, expenses
                     and demands whatsoever or howsoever arising in respect of
                     or as a consequence (whether direct or indirect) of any
                     such breach, non-performance or non-observance as
                     aforesaid.

              (b)    to effect and keep in force during the continuance of this
                     Lease such Public Liability and Employees Liability or
                     other policies of insurance (to the extent that such
                     insurance cover is available) as may be necessary to cover
                     the Lessee against any claim arising on foot of Public
                     Liability or Employers Liability and to extend such
                     insurance cover so that the Lessor is indemnified by the
                     insurers in the same manner as the Lessee and whenever
                     required to do so by the Lessor to produce to the Lessor
                     said policy or policies together with satisfactory evidence
                     that the same is/are valid and subsisting and that all
                     premiums due thereon have been paid.

                                       12
<PAGE>

3.     RENT REVIEW

       3.1    In this Clause the following expressions shall have the following
              meanings respectively: -

              (a)     "Review Date" shall mean the last day of the fifth year
                      and the last day of each subsequent fifth year of the term
                      hereby granted;

              (b)     "Current Market Rent' shall mean the gross full market
                      rent without any deduction whatsoever at which the demised
                      premises might reasonably be expected to be let at the
                      nearest Review Date on the open market without fine or
                      premium as between a willing Lessor and a willing Lessee
                      and with vacant possession for the term unexpired of this
                      Lease and on the same terms and conditions in all other
                      respects as this present Lease (other than the amount of
                      rent hereby reserved but including the provision for five
                      yearly rent reviews) and upon the supposition (if not a
                      fact) that the demised premises includes adequate heating
                      to the office portion thereof and that the covenants on
                      the part of the Lessee herein have been fully performed
                      and observed there being disregarded:-

                     (i)    any effect on rent of the fact that the Lessee has
                            been in occupation of the demised premises and any
                            goodwill attached to the demised premises by reason
                            of the carrying on therein 4f the business of the
                            Lessee;

                     (ii)   any effect on rent of any improvement (within the
                            meaning Of the Landlord and Tenant Acts, 1931 to
                            1994 or any Acts amending or extending or
                            re-enacting the same) of the demised premises or any
                            part thereof or any works thereto carried out by the
                            Lessee with the licence of the Lessor at the
                            Lessee's own expense (otherwise than in pursuance of
                            any obligation to the Lessor whether pursuant to the
                            provisions of this Lease or otherwise) and carried
                            out prior to or during the currency of this Lease;

                     (iii)  any diminution of the rental value of the demised
                            premises, caused by works carried out thereon by the
                            Lessee, its sub tenants or predecessors in title
                            during the term of this Lease;

              3.2     The rent for the time being payable by the Lessee
                      hereunder shall be subject to increase in accordance with
                      the following provisions of this Clause;

              3.3     The Lessor, its servants or agents shall be entitled by
                      notice in writing given to the Lessee, its servants or
                      agents not earlier than twelve months before and not more
                      than twenty four months after a Review Date to call for
                      review of the rent payable by the Lessee to the Lessor at
                      the Review Date specified in the notice and if upon any
                      such review it shall be ascertained or determined that the
                      Current Market Rent of the demised premises at the Review
                      Date is greater than

                                       13
<PAGE>

                      the rent payable hereunder immediately prior to such
                      Review Date then, as from that Review Date, the yearly
                      rent payable hereunder shall be increased the Current
                      Market Rent so ascertained PROVIDED FURTHER that in n~
                      circumstances shall the rent payable hereunder following
                      such review be less than the rent payable by the Lessee
                      immediately prior to the Review Date;

              3.4     Every such review as aforesaid shall, in the first
                      instance, be made by Lessor and the Lessee or their
                      respective Surveyors in collaboration but if agreement as
                      to the amount of the Current Market Rent at the Review
                      Daze shall have been reached between the parties hereto or
                      their Surveyors within three months or such extended
                      period as may be agreed by the Lessor and the Lessee after
                      the date of the Lessor's notice calling such review then
                      the question of the amount of the Current Market Rent of
                      the demised premises at the Review Date shall be referred
                      to the decision of a single Chartered Surveyor at least
                      ten years standing experienced in the letting of
                      manufacturing or light industrial facilities who shall act
                      as Arbitrator such Chartered Surveyor to be nominated by
                      the Lessor by notice in writing to the Lessee and if the
                      Lessee shall reject such nomination or fail or neglect to
                      agree within one month of the1 Lessor's notice such
                      Chartered Surveyor shall be appointed on the application
                      of either party by the President or acting President for
                      the time being of the Society of Chartered Surveyors which
                      term shall include any other body established from time to
                      time in succession or substitution or carrying on the
                      function currently carried out by the same.

              3.5     Any arbitration as aforesaid shall be a submission to
                      arbitration within the, Arbitration Acts 1954 to 1998 or
                      any statutory modification or re-enactment thereof for the
                      time being in force and to the jurisdiction of the Courts
                      of the State for the enforcement of any award of said
                      Arbitrator;

              3.6     If the Chartered Surveyor shall fail to determine the new
                      rent within three months of his appointment or nomination
                      or if he shall relinquish his appointment or die or if it
                      shall become apparent that for any reason he will be
                      unable to complete his duties hereunder a new Chartered
                      Surveyor shall be appointed or nominated in his place in
                      accordance with sub-clause 3.4 above;

              3.7     If upon any such review the amount of any increased rent
                      shall not be ascertained or determined prior to the Review
                      Date the Lessee shall continue to pay rent at the yearly
                      rate payable immediately prior to the Review Date until
                      the quarter day next following the ascertainment or
                      determination of any increased rent whereupon subject to
                      the first proviso to Clause 3.3 hereof theft, shall be due
                      as a debt payable by the Lessee to the Lessor on demand a
                      sum equal to the amount by which the rent for the period
                      since the Review Date calculated at the increased rate
                      exceeds the rent for that period calculated at the
                      previous rate and in addition the Lessee shall pay
                      interest on the said sum from the Review Date until the
                      date of actual payment at the AAA rate of interest

                                       14
<PAGE>

                      charged on overdrafts by the Associated Banks in the
                      Republic of Ireland at the Review Date or if there shall
                      be no such rate then at the rate of 12% per annum;

              3.8     If upon such review as aforesaid it shall be agreed or
                      determined that the rend previously payable hereunder
                      shall be increased the Lessor and the Lessee shall (if
                      required by the Lessor) forthwith complete and sign a
                      written Memorandum or if the Lessor shall so elect execute
                      a Deed of Record recording the increased rent thenceforth
                      payable and the Lessee shall pay the stamp duty (if any
                      payable on such Memorandum or Deed of Record;

              3.9     In the event of the Lessor being prevented or prohibited
                      in whole or in par from exercising its rights under this
                      Clause and/or obtaining an increase in the rent on any of
                      the Review Dates by reason of any legislation, Government
                      Order or Decree or Notice (increase in this context
                      meaning such increase as would be obtainable disregarding
                      the provisions of any such legislation and otherwise as
                      aforesaid) then the date at which the review would
                      otherwise haw taken effect shall be deemed to be extended
                      to permit and/require such review to take place on the
                      first date thereafter upon which such right or increase
                      may be exercised and/or obtained in whole or in part and
                      when in part on so man occasions as shall be necessary to
                      obtain the whole increase (meaning the whole of the
                      increase which the Lessor would have obtained if not
                      prevented or prohibited as aforesaid) and if there shall
                      be a partial prevention only there shall be a further
                      review on the first date or dates as aforesaid
                      notwithstanding th'1 rent may have been increased in part
                      on or since the date of review but in no instance shall
                      the increase in rent be dated back to exceed the statutory
                      control on increases of rent laid down by law.

                                SCHEDULE OF AREAS

              3.10    For the purposes of rent review it is hereby agreed that
                      the floor area of the demised premises is 61,250 square
                      feet.

4.            LESSORS COVENANTS

              The Lessor hereby covenants with the Lessee in manner following
              that is to say:

              TO INSURE

              4.1     Subject to insurance cover being available against the
                      Insured Risks and subject to the reimbursement by the
                      Lessee of the sum or sums pursuant to Clause 2.2(b)
                      hereinbefore specified the Lessor will insure or procure
                      the insurance of the demised premises and all Lessor's
                      fixtures, fittings and equipment therein and thereon and
                      keep the same insured to the full reinstatement costs plus
                      an inflationary factor (to be determined from time to time
                      by the Lessor or its Surveyor) against loss or damage by
                      fire, explosion, lightning, storm, tempest,

                                       15
<PAGE>

                      impact, earthquake, aircraft, riot and civil commotion,
                      property owners, public, employers and other liability of
                      the Lessor arising out of or in relation to the demised
                      premises, site clearance expenses, Architects', Engineers'
                      and Surveyors' fees and Value Added Tax and any other duty
                      exigible on any building contract as may be entered into
                      relative to the reconstruction, reinstatement or repair of
                      the demised premises or any part thereof resulting from
                      the destruction, loss or damage thereof or thereto of from
                      any of the perils aforesaid and the loss of rent from time
                      to time payable or reasonably estimated to be payable
                      under this Lease (taking into account any review of the
                      rent which may become due under this Lease) following loss
                      or damage to the demised premises by the insured risks for
                      three years or such longer period as the Lessor may, from
                      time to time, reasonably deem to be necessary having
                      regard to the likely period required for the rebuilding
                      and for obtaining Planning Permission and any other
                      consents, certificates and approvals in connection with
                      the reinstatement of the demised premises and such other
                      perils, expenses and; losses as the Lessor in its sole
                      discretion shall think fit (all such risks and perils
                      being referred to as "the Insured Risks") PROVIDED that
                      the Lessor shall immediately notify the Lessee of any
                      inability on its part to effect sue insurance as
                      aforesaid;

                      (a)   the Lessor shall (but without being obliged) use its
                            best endeavours to procure that the foregoing
                            insurances shall be effected upon the terms that the
                            Insurer shall waive any rights or remedies which it
                            may have or may become entitled to against the
                            Lessee or its permitted tenants or assigns whether
                            by way of subrogation or otherwise and the Lessor
                            shall I use its best endeavours to procure that
                            every policy of insurance issue in respect of such
                            insurances shall bear an endorsement binding upon
                            such Insurer evidencing such waiver PROVIDED always
                            that Lessor shall have no liability to the Lessee
                            for any loss or damage suffered by it if the Lessor
                            is unable to procure the waiver by Insurer of any
                            such rights or remedies.,

              SUSPENSION OF RENT

              4.2     In the event of the demised premises or any part thereof
                      being destroyed or damaged by any of the Insured Risks so
                      as to render the demised premises unfit for occupation,
                      use or access then and in such cases (unless the insurance
                      of the demised premises shall have been forfeited or made
                      ineffective by any act, neglect or default of the Lessee,
                      its servants, agents, licensees or invitees or
                      undertenants) the rent hereby reserved or a fair and just
                      proportion thereof according to the nature and extent of
                      the damage sustained shall from and after such destruction
                      or damage be suspended until either the demised premises
                      shall have been rebuilt or reinstated and made fit for
                      occupation use and access or the expiration of three years
                      (or such longer period as the Lessor may have insured
                      against) from the date of destruction or damage whichever
                      is the earlier; any dispute with reference to this
                      provision shall be referred to arbitration by a
                      single arbitrator under the Arbitration Acts, 1954-1998

                                       16
<PAGE>

              WAIVER OF SURRENDER

              4.3     In the case the demised premises or any part thereof shall
                      be destroyed and become ruinous and become uninhabitable
                      or incapable of beneficial occupatio?t1 or enjoyment by,
                      for or from any of the Insured Risks the Lessee hereby
                      absolutely waives and abandons its rights (if any) to
                      surrender this Lease under the provisions of Section 40 of
                      the Landlord and Tenant Law Amendment Act, Ireland, 1860
                      or otherwise

              REINSTATE

              4.4     If the demised premises or any part thereof shall at any
                      time during the term destroyed or damaged by any of the
                      Insured Risks as aforesaid, then the Lessor shall apply
                      all monies received in respect of such insurance (other
                      than in respect of loss of rent) with all reasonable speed
                      in rebuilding, repairing and otherwise reinstating the
                      demised premises to a factory premises of the same square
                      footage and utility as the demised premises, unless the
                      policy or policies' of insurance shall have been vitiated
                      or rendered less than fully effective by any act, neglect,
                      default or omission of the Lessee, its servants, agents,
                      licensees invitees or undertenants and the Lessor shall
                      make up any deficiency in the insurance monies received
                      out of its own money PROVIDED HOWEVER the Lessor is
                      prevented (for any reason other than its act or default)
                      from compliance with the provisions of this clause and
                      such prevention continues for three years and the Lease is
                      not otherwise terminated the Lessor or Lessee may at any
                      time after the expiry of that period by not less than
                      three months written notice given to the other party
                      determine this Lease, but without prejudice to any claim
                      by either party against the other in respect of any
                      antecedent breach of its terms and in such event the
                      Lessor shall be relieved of its obligations hereunder and
                      shall be solely entitled to the insurance monies,

              MAKE UP SHORTFALL IN INSURANCES

              4.5     In the event of the demised premises or any part thereof
                      being destroyed or damaged by any of the risks in respect
                      of which the Lessor pursuant to the terms hereof shall
                      have effected insurance, money under any insurance against
                      the same effected thereon by the Lessor being wholly or
                      partly irrecoverable by reason solely or in part of any
                      act or default of the Lessee, its servants, agents,
                      licensees or invitees then and in every such case the
                      Lessee will forthwith (in addition to the said rent) pay
                      to the Lessor the whole (or as the case may require) a
                      fair proportion of the cost of completely rebuilding and
                      reinstating the demised premises;

                                       17
<PAGE>

              QUIET ENJOYMENT

              4.6     That the Lessee paying the rents hereby reserved and
                      performing and observing the several covenants and
                      agreements herein contained and on the Lessee's pat to be
                      observed and performed shall and may peaceably and quietly
                      hold and enjoy the demised premises during the said term
                      without any interruption or disturbance from or by the
                      Lessor or any person or persons rightfully claiming under
                      or in trust for the Lessor.

5.       IT IS HEREBY AGREED between the Lessor and the Lessee as follows: -

CHANGE OF USE

              5.1     If the Lessee shall apply to the Lessor for consent to
                      change of user pursuant to the provisions of Clause 2.15
                      hereof the Lessor shall be entitled to withhold its
                      consent if, in the sole opinion of the Superior Lessor
                      Forfas and having regard to its statutory functions and
                      the relevant provisions of the industrial! Development Act
                      1986, the resultant use of the demised premises would
                      inconsistent with the Superior Lessor's objectives of the
                      creation and maintenance of fulltime employment in the
                      demised premises,

RENT IN ARREARS

              5.2     If the said rent or any sum payable hereunder or any part
                      thereof shall unpaid for 28 days after any of the days
                      hereinbefore appointed for payment whether same shall have
                      been lawfully demanded or not; or

                      (a)    If any of the covenants on the Lessee's part herein
                             contained shall not be observed or performed; or

                      (b)    If the Lessee being an individual or firm shall
                             become bankrupt or compound or arrange with his or
                             its Creditors or being a Company shall go into
                             liquidation either compulsorily or voluntarily
                             except for the purpose of a reconstruction or
                             amalgamation previously approved in writing by the
                             Lessor; or

                      (c)    If the Lessee being a body corporate has a winding
                             up petition presented against it or passes a
                             winding up resolution (other than in connection
                             with a Members Voluntary Winding Up for the
                             purposes of amalgamation reconstruction which has a
                             prior written approval of the Lessor) or resolve to
                             present its own winding up petition or is wound-up
                             (whether in Ireland or elsewhere) or an Examiner or
                             Receiver or Manager is appointed in respect of the
                             demised premises or if the Company enters into a
                             Scheme of Arrangement with its creditors;

         then and in any of the said cases and at any time thereafter it shall
         be lawful for the Lessor or any persons authorised by the Lessor to
         enter upon the demised premises or any part thereof in the name of the
         whole and to repossess the same

                                       18
<PAGE>

         and to enjoy the same as if this Lease had not been granted but
         without, prejudice to any right of action or remedy by either party in
         respect of any antecedent breach of any of the covenants by the other
         herein contained.

LESSEE'S FUTURES AND FITTINGS

              5.3     If at such time as the Lessee has vacated the demised
                      premises after the determination of the term hereby
                      granted either by effluxion of time or otherwise any
                      property of the Lessee shall remain in or on the demised
                      premises and the Lessee shall fail to remove the same
                      within seven days after being requested in writing by the
                      Lessor so to do then and in such case the Lessor (without
                      being obliged so to do and in any event without prejudice
                      to such other rights as the Lessor may have in that
                      behalf) may as agent of the Lessee (and the Lessor is
                      hereby appointed by the Lessee to act as such agent and
                      in its capacity as such agent to act as the Lessor in its
                      absolute discretion may think fit) sell such property and
                      shall then hold the proceeds of sale after deducting the
                      costs and expenses of removal, storage (including loss of
                      or reduction in rent received by the Lessor on account of
                      such property remaining by way of storage pending sale in
                      the demised premises) and sale reasonably and properly
                      incurred or suffered by it to the order of the Lessee
                      PROVIDED THAT the Lessee shall indemnify the Lessor
                      against any liability incurred by the Lessor to any third
                      party whose property shall have been sold by the Lessor
                      in the bona fide mistaken belief (which shall be presumed
                      unless the contrary is proved) that such property
                      belonged to the Lessee and was liable to be dealt with
                      such pursuant to this Sub-Clause;

LESSOR/SUPERIOR LESSOR

              5.4     All reservations and exceptions herein in favour of the
                      Lessor shall enure fin the benefit of the Superior Lessor
                      of the Lessor and in relation to any coven9tj or
                      obligation of the Lessor hereunder or any consent required
                      to be sought from the Lessor the term "The Lessor" shall
                      mean and include the Lessor and such Superior Lessor;

NOTICES

              5.5     Any notices requiring to be served hereunder shall be
                      sufficiently served on the Lessee if left addressed to it
                      at the principal office of the Lessee or forwarded to it
                      by post or left at its fast known address in Ireland and
                      shall be sufficiently served on the Lessor if delivered to
                      it personally or forwarded to it by post or, left at its
                      principal office in Ireland. A notice sent by post shall
                      be deemed to have been given at the time when in due
                      course of post it would be delivered at the address to
                      which it is sent;

                                       19
<PAGE>

6.       ASSENT

         The Lessor hereby assents to the registration of this Lease as a Burden
         on Folio 61890F of the Register County Dublin and on the Folio to be
         opened in its name an to the use of the Land Certificates (if issued)
         for the purpose of such registration.

7.       EXCLUSION OF WARRANTY

         7.1    Nothing contained in this Lease implies or warrants that
                the demised premises may be used under the Planning Acts
                or the Building Control Act for the purpose herein
                authorised and the Lessee hereby acknowledges that the
                Lessor has not given or made at any time any
                representation or warranty that any such use is or will be
                or will remain a permitted user under those Acts;

         REPRESENTATIONS

         7.2    The Lessee acknowledges that this Lease has not been entered
                into in relying solely or partly on any statement or
                representation made by or on behalf of the Lessor except any
                such statement or representation that is expressly set out in
                this Lease.

         NON-WAIVER

         7.3    Each of the Lessee's covenants shall remain in full force both
                at law and in equity notwithstanding that the Lessor may have
                appeared to have waived or released temporarily any such
                covenant, or waived or released temporarily or permanently any
                such covenant;

         APPLICABLE LAW

         7.4    This Lease and all relationships created thereby shall in all
                respects be governed by and construed and interpreted in
                accordance with the laws of Ireland.

8.       BREAK OPTION

         The Lessee may terminate this Lease on the expiration of the twelfth
         year of the term thereof, that is, on the 30th day of November 2012
         (hereinafter referred to as "the Termination Date") on the payment by
         the Lessee to the Lessor of the amount provided for at Sub-Clause 8.4
         hereof subject strictly to the following terms and conditions:-

         8.1    In relation to the Termination Date, the Lessee shall serve on
                the Lessor a. Notice in writing (hereinafter called the
                Termination Date Notice") at least twelve months' prior to the
                expiry of the Termination Date (but in any event not prior to
                the expiry of the tenth year of the term hereby demised);

         8.2    In relation to the Termination Date Notice, time shall be of the
                essence;

         8.3    In relation to the Termination Date Notice, the Lessee shall
                send with same to

                                       20
<PAGE>

                the Lessor a bank draft payable to the Lessor in an amount
                equivalent to six months of the then current annual rent
                payable by the Lessee to the Lessor under this Lease at
                the date of the Termination Date Notice. Should the Lessee
                not comply with this condition the Termination Date Notice
                shall be invalid and of no effect;

         8.4    Notwithstanding the payment by the Lessee to the Lessor
                pursuant to Sub-Clause 8.3 hereof, the Lessee shall
                continue to be responsible for the rent and all outgoings
                payable on foot of this Lease in relation to the demised
                premises up to the Termination Date;

         8.5    The Lessee shall, on or prior to the Termination Date deliver
                to the Lessor the original of this Lease, together with all
                related title documentation (inc1uding a release or discharge
                of all mortgages, charges and other encumbrances, whether
                registered or not) and shall as beneficial owner deliver duly
                executed~1 and stamped a Transfer or Surrender of this Lease and
                if applicable, shah procure the cancellation of the registration
                of this Lease in the Land Registry;

         8.6    The Lessee shall be responsible for all Value Added Tax payable
                on Surrender of the Lease and the Lessor's legal costs and
                expenses in relation thereto;

         8.7    Any such termination of this Lease, on the Termination Date,
                shall be without prejudice to any antecedent breach by either
                the Lessor or the Lessee of any their respective covenants or
                conditions herein contained.

9.       CERTIFICATES

         9.1    IT IS HEREBY FURTHER CERTIFIED that the Lessee is a
                qualified person within the meaning of Section 45 of the
                Land Act, 1965, as amended by the Land Act, (Additional
                Category of Qualified Persons) Regulations, 1994, in that
                the property hereby demised is situate within the County
                of Fingal County Council as specified in the Local
                Government (Dublin) Act, 1993.

         9.2    IT IS HEREBY CERTIFIED that the transaction hereby
                effected does not form part of a larger transaction or of
                a series of transactions in respect of which the amount or
                value or the aggregate amount or value of the
                consideration (other than rent) exceeds IR(pound)5,OOO.OO.

         9.3    IT IS HEREBY CERTIFIED FURTHER THAT Section 53 (Lease
                combined with Building Agreement for
                dwellinghouse/apartment) of the Stamp Duties Consolidation
                Act, 1999, does not apply to this instrument.

         9.4    IT IS HEREBY CERTIFIED that no part of the consideration
                for the Lease is attributable (or deemed to be
                attributable) to residential property.

                                       21
<PAGE>

                                    SCHEDULE

                             (THE DEMISED PREMISES)

ALL THAT AND THOSE the lands and premises situate at Snugborough, Blanchardstown
in the County of Dublin being part of the lands comprised in Folio 61890F of the
Register County Dublin as more particularly described on the Plan annexed hereto
and thereon outlined with a red verge line.

IN WITNESS whereof the parties hereto have caused their respective Seals to be
hereunto affixed the day and year first herein WRITTEN.

PRESENT when the Common
Seal of CANADA LIFE ASSURANCE (IRELAND) LIMITED was affixed
hereto:

PRESENT when the Common
Seal of BEI ELECTRONICS IRELAND LIMITED was affixed
hereto:

/S/ CARY T. FU
----------------

/S/LENORA GURTON
----------------

                                       22
<PAGE>

THIS INDENTURE MADE THE                  DAY OF                 2001

BETWEEN the within named CANADA LIFE ASSURANCE (IRELAND) LIMITED (hereinafter
called "the Lessor" which expression shall include its successors and assigns)
of the one part and BENCHMARK ELECTRONICS INC. of 3000, Technology Drive
Angleton, Texas, 77515, United States of America of the other part.

WITNESSETH THAT:-

GUARANTEE:

1.        In consideration of the within named Lessor having agreed at our
          request to accept the within named Lessee as Lessee upon the terms of
          the within written Indenture we guarantee the payment by the within
          named Lessee to the within named Lessor of tie rent (including any
          increases thereof) payable under the within Indenture and all other
          monies whatsoever payable by the within named Lessee to the within
          named Lessor under the within Indenture and the performance and
          observance by the within named Lessee of the covenants and conditions
          stipulations and agreements on its part contained in the within
          Indenture upon the following terms:

          1.1      If the within named Lessee shall make any default in payment
                   of the re4r payable under the within Indenture (including any
                   increases thereof) or of any part thereof or any other monies
                   whatsoever payable by the within nam4k Lessee under the
                   within Indenture for the space of one month we shall upon a
                   written request by the within named Lessor pay forthwith such
                   sum or sums;

          1.2      If the within named Lessee shall make any default in the
                   observance or performance of any of the covenants
                   conditions agreements or stipulations o~ its part contained
                   in the within Indenture we will pay to the within named.
                   Lessor all losses damages expenses charges and costs which
                   the within named Lessor shall be entitled to recover by
                   reason of such default to the extent which the within named
                   Lessor shall be unable to recover them from the within
                   named Lessee together with all costs, expenses and charges
                   incurred by the Lessor in any way in connection with this
                   Guarantee or the enforcement or discharge of our
                   obligations hereunder including such costs, expenses and
                   any charges incurred by the Lessor in the enforcement of
                   any Judgement either in this or any other jurisdiction.

          1.3      This Guarantee shall continue for as long as the term created
                   by the within Indenture is vested in the within named Lessee
                   and shall extend to the acts and defaults of the within named
                   Lessee during the said term and during the said term shall
                   not be revocable or discharged by the liquidation of us or by
                   the liquidation of the within named Lessee

                   PROVIDED ALWAYS and it is hereby agreed and declared that any
                   neglect, or forbearance on the part of the within named
                   Lessor in endeavouring to obtain

                                       1
<PAGE>

                  payment of the said rent and any increases thereof or other
                  monies when the same shall become due and payable by the
                  within named Lessee to the within named Lessor under the
                  within Indenture or to enforce the performance and observance
                  of the said covenants and conditions stipulations agreements
                  to be observed and performed by the within named Lessee in
                  respect thereof or any licence consent or permission which may
                  be granted by the within named Lessor to the within named
                  Lessee or any compromise or arrangement made by the within
                  named Lessor with the within named Lessee shall not release or
                  exonerate or in any way affect the liability of us to the
                  within named Lessor or prejudice the rights or remedies of the
                  within named Lessor under this Guarantee.

         1.4      If the within named Lessee being a Company shall go into
                  liquidation whether voluntary or compulsory (except for the
                  purpose of amalgamation or reconstruction) or being an
                  individual shall become bankrupt and the Liquidator or
                  Official Assignee or Trustee in Bankruptcy shall disclaim the
                  within Indenture and the within named Lessor shall serve
                  notice in writing on us pursuant to this Clause within three
                  months from the date of such disclaimer shall at our expense
                  forthwith accept from the within named Lessor a Lease
                  (hereinafter called "the New Lease") of the demised premises
                  and execute a Counterpart thereof for a term commencing on the
                  date of such disclaimer and continuing during the residue of
                  the term created by the within Indenture such new Lease to
                  contain the like Lessee's and Lessor's covenants respectively
                  and the like provisos and conditions in all respects
                  (including the proviso for re-entry) as are contained in the
                  within Indenture but such new Lease shall be1 without
                  prejudice to all liability of us under this Guarantee up to
                  the date of, such disclaimer.

2.       APPLICABLE LAW

                  This Guarantee and all relationships created thereby shall in
                  all respects be governed by and construed and interpreted in
                  accordance with the laws of Ireland.

3.       JURISDICTION

                  The Courts of Ireland shall have jurisdiction over any action
                  to enforce the Lessors rights under this Guarantee and in
                  respect of all disputes arising under this Guarantee and for
                  that purpose Benchmark Electronics Inc. hereby submits to the
                  jurisdiction of the Courts of Ireland and agrees that all
                  summonses, notices or processes required to be served upon it
                  for the purposes of such action or any other legal proceedings
                  shall be deemed to be properly served if addressed and
                  delivered to them care of Arthur Cox, Solicitors, Arthur Cox
                  Building, Earisfort Terrace, Dublin 2 who Benchmark
                  Electronics Inc. irrevocably appoint as agents for acceptance
                  of service of all such documents.

                                       2
<PAGE>

4.       WAIVER

                  We hereby waive any right to require the Lessor to proceed
                  against the Lessee or to pursue any other remedy whatsoever
                  which may be available to the Lessor before proceeding against
                  us.

 5.     NOTICES

                  Any demand or notice required to be made, given to or served
                  on us under this Guarantee is duly and validly made, given or
                  served if addressed to us and delivered personally or sent by
                  prepaid Registered or Recorded Delivery post or sent by
                  telegraphic facsimile transmission addressed to our
                  registered office or to our last known address or place of
                  business in Ireland or to Arthur Cox, Solicitors of Arthur
                  Cox Building, Earisfort Terrace, Dublin 2. whom we
                  irrevocably appoint as our agent for acceptance of service of
                  any such Demand or Notice.

PRESENT when the Common
Seal of BENCHMARK
ELECTRONICS INC.
was affixed hereto:

/S/ CARY FU
---------------------

/S/ DONALD NIGBOR
----------------------

                                       3
<PAGE>

                                   LEASE MAP

[GRAPHIC OMITTED]

                                       4
<PAGE>

DATED THE         DAY OF   2001
-------------------------------

CANADA LIFE ASSURANCE
(IRELAND) LIMITED

One Part

BEI ELECTRONICS IRELAND
LIMITED

Other Part

LEASE
RE: INDUSTRIAL PREMISES AT SNUGSBOROUGH
BLANCHARDSTOWN BUSINESS PARK, DUBLIN 15

Arthur Cox,
Earlsfort Centre
Earlsfort Terrace,
Dublin 2

                                       5<PAGE>

                                                                   EXHIBIT 10.25

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

                      AMENDED AND RESTATED CREDIT AGREEMENT

                                   dated as of

                                  June 23, 2000

                                      among

                           BENCHMARK ELECTRONICS, INC.

                           The Borrowing Subsidiaries

                            The Lenders Party Hereto,

                               FLEET NATIONAL BANK
                             as Documentation Agent

                           CREDIT SUISSE FIRST BOSTON
                              as Syndication Agent

                             BANK OF AMERICA, N.A.,
                                   BANK ONE NA
                                       and
                                 SUN TRUST BANK
                                  as Co-Agents

                                       and

                   CHASE BANK OF TEXAS, NATIONAL ASSOCIATION,
                    as Administrative Agent, Collateral Agent
                                       and
                                  Issuing Bank

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

                             CHASE SECURITIES INC.,
                                   as Arranger

================================================================================
                                                                [CS&M #6700-883]

                                       -i-
<PAGE>

                                                                            Page
                                                                            ----

                                    ARTICLE I
                                   Definitions

SECTION 1.01.  Defined Terms ..............................................    6
SECTION 1.02.  Classification of Loans and Borrowings .....................   37
SECTION 1.03.  Terms Generally ............................................   38
SECTION 1.04.  Accounting Terms; GAAP .....................................   38

                                   ARTICLE II
                                  The Credits

SECTION 2.01.  Commitments ................................................   38
SECTION 2.02.  Loans and Borrowings .......................................   40
SECTION 2.03.  Requests for Borrowings ....................................   41
SECTION 2.04.  Letters of Credit ..........................................   42
SECTION 2.05.  Funding of Borrowings ......................................   45
SECTION 2.06.  Interest Elections .........................................   46
SECTION 2.07.  Termination and Reduction of Commitments ...................   47
SECTION 2.08.  Repayment of Loans; Evidence of Debt .......................   48
SECTION 2.09.  Amortization of Term Loans .................................   48
SECTION 2.10.  Prepayment of Loans ........................................   49
SECTION 2.11.  Fees .......................................................   50
SECTION 2.12.  Interest ...................................................   52
SECTION 2.13.  Alternate Rate of Interest .................................   53
SECTION 2.14.  Increased Costs ............................................   53
SECTION 2.15.  Break Funding Payments .....................................   54
SECTION 2.16.  Taxes ......................................................   55
SECTION 2.17.  Payments Generally; Pro Rata Treatment; Sharing
               of Set-offs ................................................   56
SECTION 2.18.  Mitigation Obligations; Replacement of Lenders .............   57
SECTION 2.19.  Borrowing Subsidiaries .....................................   58

                                   ARTICLE III
                         Representations and Warranties

SECTION 3.01.  Organization; Powers .......................................   59
SECTION 3.02.  Authorization; Enforceability ..............................   59
SECTION 3.03.  Governmental Approvals; No Conflicts .......................   59
SECTION 3.04.  Financial Condition; No Material Adverse Change ............   59
SECTION 3.05.  Properties .................................................   60
SECTION 3.06.  Litigation and Environmental Matters .......................   60
SECTION 3.07.  Compliance with Laws and Agreements ........................   61
SECTION 3.08.  Investment and Holding Company Status ......................   61

                                      -ii-
<PAGE>

SECTION 3.09.  Taxes ......................................................   61
SECTION 3.10.  ERISA ......................................................   61
SECTION 3.11.  Disclosure .................................................   61
SECTION 3.12.  Subsidiaries ...............................................   62
SECTION 3.13.  Insurance ..................................................   62
SECTION 3.14.  Labor Matters ..............................................   62
SECTION 3.15.  Solvency ...................................................   62
SECTION 3.16.  Senior Indebtedness ........................................   62
SECTION 3.17.  Year 2000 ..................................................   62
SECTION 3.18.  Intellectual Property ......................................   63

                                   ARTICLE IV
                                   Conditions

SECTION 4.01.  Restatement Effective Date .................................   63
SECTION 4.02.  Each Credit Event ..........................................   64
SECTION 4.03.  Initial Credit Event for each Borrowing Subsidiary .........   65

                                    ARTICLE V
                              Affirmative Covenants

SECTION 5.01.  Financial Statements and Other Information .................   65
SECTION 5.02.  Notices of Material Events .................................   67
SECTION 5.03.  Information Regarding Collateral ...........................   67
SECTION 5.04.  Existence; Conduct of Business .............................   68
SECTION 5.05.  Payment of Obligations .....................................   68
SECTION 5.06.  Maintenance of Properties ..................................   68
SECTION 5.07.  Insurance ..................................................   69
SECTION 5.08.  Books and Records; Inspection and Audit Rights .............   69
SECTION 5.09.  Compliance with Laws .......................................   69
SECTION 5.10.  Use of Proceeds and Letters of Credit ......................   69
SECTION 5.11.  Additional Subsidiaries ....................................   69
SECTION 5.12.  Further Assurances .........................................   70
SECTION 5.13.  Interest Rate and Currency Exchange Rate Protection ........   70
SECTION 5.14.  Ownership of Subsidiaries ..................................   70

                                   ARTICLE VI
                               Negative Covenants

SECTION 6.01.  Indebtedness ...............................................   71
SECTION 6.02.  Liens ......................................................   72
SECTION 6.03.  Fundamental Changes ........................................   73
SECTION 6.04.  Investments, Loans, Advances, Guarantees and Acquisitions ..   73
SECTION 6.05.  Asset Sales, etc ...........................................   75
SECTION 6.06.  Sale and Leaseback Transactions ............................   76
SECTION 6.07.  Hedging Agreements .........................................   76
SECTION 6.08.  Restricted Payments; Certain Payments in Respect
               of Indebtedness ............................................   76

                                     -iii-
<PAGE>

SECTION 6.09.  Transactions with Affiliates ...............................   76
SECTION 6.10.  Restrictive Agreements .....................................   77
SECTION 6.11.  Sales and Assignments of Income, Revenues and Receivables ..   77
SECTION 6.12.  Amendment of Material Documents ............................   77
SECTION 6.13.  Interest Coverage Ratio ....................................   77
SECTION 6.14.  Adjusted Leverage Ratio; Leverage Ratio ....................   77
SECTION 6.15.  Fixed Charge Coverage Ratio ................................   78
SECTION 6.16.  Current Ratio ..............................................   78
SECTION 6.17.  Minimum Tangible Net Worth .................................   78

                                   ARTICLE VII

Events of Default..........................................................   79

                                  ARTICLE VIII

The Administrative Agent...................................................   81

                                      -vi-
<PAGE>

                                   ARTICLE IX

                                  Miscellaneous

SECTION 9.01. Notices .....................................................   83
SECTION 9.02. Waivers; Amendments .........................................   84
SECTION 9.03. Expenses; Indemnity; Damage Waiver ..........................   85
SECTION 9.04. Successors and Assigns ......................................   86
SECTION 9.05. Survival ....................................................   88
SECTION 9.06. Counterparts; Integration; Effectiveness ....................   89
SECTION 9.07. Severability ................................................   89
SECTION 9.08. Right of Setoff .............................................   89
SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process ..   89
SECTION 9.10. WAIVER OF JURY TRIAL ........................................   90
SECTION 9.11. Headings ....................................................   90
SECTION 9.12. Confidentiality .............................................   90
SECTION 9.13. Interest Rate Limitation ....................................   91
SECTION 9.14. Release of Liens and Guarantees .............................   91
SECTION 9.15. No Novation .................................................   92

SCHEDULES:

Schedule 1.01 -- Guarantors
Schedule 2.01 -- Commitments
Schedule 3.05 -- Real Property
Schedule 3.06 -- Disclosed Matters
Schedule 3.12 -- Subsidiaries
Schedule 3.13 -- Insurance
Schedule 6.01 -- Existing Indebtedness
Schedule 6.02 -- Existing Liens
Schedule 6.05 -- Existing Investments
Schedule 6.10 -- Existing Restrictions
Schedule A    -- Mortgaged Property
Schedule B    -- Scheduled Indebtedness
Schedule C    -- Approved Account Debtors

EXHIBITS:

Exhibit A     -- Form of Assignment and Acceptance
Exhibit C     -- Form of Perfection Certificate
Exhibit D     -- Form of Pledge Agreement
Exhibit E     -- Form of Guarantee Agreement
Exhibit F     -- Form of Indemnity, Subrogation and Contribution Agreement
Exhibit G     -- Form of Security Agreement
Exhibit H     -- Form of Borrowing Request

                                      -vi-
<PAGE>

Exhibit I   -- Form of Interest Election Request
Exhibit J   -- Form of Monthly Borrowing Base Certificate
Exhibit K   -- Form of Mortgage
Exhibit L   -- Form of Issuing Bank Agreement
Exhibit M-1 -- Form of Borrowing Subsidiary Agreement
Exhibit M-2 -- Form of Borrowing Subsidiary Termination
Exhibit N   -- Form of Foreign Borrower Supplement

                                      -v-
<PAGE>

                              AMENDED AND RESTATED CREDIT AGREEMENT dated as of
                        June 23, 2000 among BENCHMARK ELECTRONICS, INC., the
                        Borrowing Subsidiaries from time to time party hereto,
                        the LENDERS party hereto, FLEET NATIONAL BANK, as
                        Documentation Agent, CREDIT SUISSE FIRST BOSTON, as
                        Syndication Agent, BANK OF AMERICA, N.A., BANK ONE, NA
                        and SUN TRUST BANK as Co-Agents and CHASE BANK OF TEXAS,
                        NATIONAL ASSOCIATION, as Administrative Agent,
                        Collateral Agent and Issuing Bank.

            Pursuant to the Stock Purchase Agreement (such term and each other
capitalized term used but not defined herein having the meaning given to it in
Article I), the Company acquired all the issued and outstanding shares of
capital stock of the Avex Entities. In connection with the Acquisition, on the
Effective Date of the Original Credit Agreement (a) the Company borrowed the
Term Loans and a principal amount not to exceed $75,000,000 of the Revolving
Loans, (b) the Company received the proceeds of not less than $80,200,000
aggregate principal amount of the Subordinated Notes and (c) the Company
refinanced the Scheduled Indebtedness.

            Under the Original Credit Agreement, the Lenders agreed to extend
credit in the form of (a) Term Loans on the Effective Date in an aggregate
principal amount not in excess of $100,000,000 and (b) Revolving Loans at any
time and from time to time on or after the Effective Date and prior to the
Revolving Maturity Date in an aggregate principal amount at any time outstanding
not in excess of $125,000,000 minus the LC Exposure at such time, and the
Issuing Banks agreed to issue Letters of Credit in an aggregate stated amount at
any time outstanding that would not result in the LC Exposure exceeding
$20,000,000. The proceeds of the Term Loans and of Revolving Loans made on the
Effective Date were to be used by the Company solely (i) to finance the
Acquisition, (ii) to refinance the Scheduled Indebtedness and (iii) to pay fees
and expenses related to the Effective Date Transactions. The proceeds of the
remaining Revolving Loans were to be used by the Company and its Subsidiaries to
provide working capital and for other general corporate purposes. The Letters of
Credit were to be used to support obligations incurred by the Company and the
Subsidiaries in the ordinary course of their businesses.

            The Company has requested that the Original Credit Agreement be
amended and restated to, among other things, increase the Revolving Commitments
to $175,000,000 on the Restatement Effective Date and amend certain covenants as
set forth herein. The proceeds of Loans made under the increased Revolving
Commitments, and Letters of Credit issued pursuant thereto, will be used for the
same purposes as the Loans made and the Letters of Credit issued under the
Revolving Commitments as originally in effect.

            The parties hereto agree as follows:

<PAGE>

                                    ARTICLE I

                                   Definitions

            SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms have the meanings specified below:

            "ABR", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Alternate Base Rate.

            "Acceptable Securities" means subordinated debt securities issued by
the Company that (a) are subordinated to the Obligations on terms not less
favorable to the Lenders than the Subordinated Notes, (b) contain covenants,
events of default and mandatory redemption, repayment, prepayment or repurchase
requirements no less favorable to the Company and the Lenders than those of the
Subordinated Notes, (c) do not mature, and are not subject to any scheduled
amortization, redemption, repayment, prepayment or repurchase requirement, prior
to the date one year after the Term Loan Maturity Date and (d) are not
Guaranteed by any of the Subsidiaries.

            "Account" means any right to payment for goods sold or leased or for
services rendered whether or not earned by performance.

            "Account Debtor" means, with respect to any Account, the obligor
with respect to such Account.

            "Acquisition" means the purchase by the Company of all the issued
and outstanding shares of capital stock of the Avex Entities, under and as
provided in the Stock Purchase Agreement.

            "Adjusted Leverage Ratio" means, on any date, the ratio of (a) Total
Indebtedness as of such date to (b) Consolidated EBITDA for the period of four
consecutive fiscal quarters of the Company and its Restricted Subsidiaries ended
on such date (or, if such date is not the last day of a fiscal quarter, ended on
the last day of the fiscal quarter of the Company most recently ended prior to
such date).

            "Adjusted LIBO Rate" means, with respect to any Eurodollar Borrowing
for any Interest Period, an interest rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate.

            "Administrative Agent" means Chase, in its capacity as
administrative agent for the Lenders hereunder.

            "Administrative Questionnaire" means an Administrative Questionnaire
in a form supplied by the Administrative Agent.

<PAGE>
                                                                              10

            "Affiliate" means, with respect to a specified Person, another
Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.

            "Alternate Base Rate" means, for any day, a rate per annum equal to
the greatest of (a) the Prime Rate in effect on such day, (b) the Base CD Rate
in effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect
on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate, the Base CD Rate or the Federal Funds Effective Rate, respectively.

            "Angleton Direct Material Purchase Price Variance Reserve" means,
for the Angleton division and all other divisions which directly expense direct
material purchase price variances, an amount equal to the sum of the net
favorable variances (the amount whereby standard cost used to compute Inventory
Value exceeds actual cost incurred) as classified under the Company's and its
Domestic Divisions' current and historical accounting practices for the two
months ending as of the date of the most recently delivered Borrowing Base
Certificate.

            "Applicable Percentage" means, with respect to any Revolving Lender,
the percentage of the total Revolving Commitments represented by such Lender's
Revolving Commitment. If the Revolving Commitments have terminated or expired,
the Applicable Percentages shall be determined based upon the Revolving
Commitments most recently in effect, giving effect to any assignments.

            "Applicable Rate" means, for any day (a) with respect to any ABR
Loan or Eurodollar Loan that is a Revolving Loan or a Term Loan, or (b) with
respect to the commitment fees payable hereunder, as the case may be, the
applicable rate per annum set forth below under the relevant table under the
caption "ABR Spread", "Eurodollar Spread" or "Commitment Fee", as the case may
be, based upon the Adjusted Leverage Ratio as of the most recent determination
date:

<PAGE>
                                                                              11

                       Revolving Loan and Term Loan Table

          ================================================================
                                           ABR              Eurodollar
           Adjusted Leverage Ratio:       Spread              Spread
           ------------------------       ------              ------
          ----------------------------------------------------------------
               Category 1

              Greater than
              3.25 to 1.00                 1.750%              3.000%

          ----------------------------------------------------------------
               Category 2

          Less than or equal to
            3.25 to 1.00 but
              greater than
              3.00 to 1.00                 1.500%              2.750%

          ----------------------------------------------------------------
               Category 3

          Less than or equal to
            3.00 to 1.00 but
          greater than 2.50 to
                  1.00                     0.750%              2.250%
          ----------------------------------------------------------------
               Category 4

          Less than or equal to
            2.50 to 1.00 but
          greater than 2.00 to
                  1.00                     0.500%              2.000%
          ----------------------------------------------------------------
               Category 5

          Less than or equal to
            2.00 to 1.00 but
          greater than 1.50 to
                  1.00                     0.125%              1.625%

               Category 6

          Less than or equal to
              1.50 to 1.00                 0.000%              1.250%
          ================================================================

<PAGE>
                                                                              12

                       Revolving Loan Commitment Fee Table

               =================================================
               Adjusted Leverage Ratio:        Commitment Fee
               ------------------------        --------------
               =================================================
                     Category 1

                Greater than or equal
                   to 2.00 to 1.00                 0.500%
               -------------------------------------------------
                     Category 2

               Less than 2.00 to 1.00              0.375%
               =================================================

; provided, however, that prior to September 30, 2000, (i) if the Leverage Ratio
is greater than 3.25 to 1.00, the Eurodollar Spread shall be 2.750% and the ABR
Spread shall be 1.500% and (ii) if the Leverage Ratio is less than or equal to
3.25 to 1.00 but greater than 3.00 to 1.00, the Eurodollar Spread shall be
2.500% and the ABR Spread shall be 1.250%.

            For purposes of the foregoing, (i) the Adjusted Leverage Ratio shall
be determined as of the end of each fiscal quarter of the Company's fiscal year
based upon the Company's consolidated financial statements delivered pursuant to
Section 5.01(a) or (b) and (ii) each change in the Applicable Rate resulting
from a change in the Adjusted Leverage Ratio shall be effective during the
period commencing on and including the date of delivery to the Administrative
Agent of such consolidated financial statements indicating such change and
ending on the date immediately preceding the effective date of the next such
change; provided that the Adjusted Leverage Ratio shall be deemed to be in
Category 1 under each of the above tables (A) at any time that an Event of
Default has continued in effect for more than three Business Days following the
Company's receipt of notice thereof from the Administrative Agent and (B) at the
option of the Administrative Agent or at the request of the Required Lenders if
the Company fails to deliver the consolidated financial statements required to
be delivered by it pursuant to Section 5.01(a) or (b), during the period from
the expiration of the time for delivery thereof until such consolidated
financial statements are delivered.

            "Approved Jurisdiction" means any of the Republic of Ireland,
Scotland, the Kingdom of Sweden or the Republic of Singapore.

            "Assessment Rate" means, for any day, the annual assessment rate in
effect on such day that is payable by a member of the Bank Insurance Fund
classified as "well-capitalized" and within supervisory subgroup "B" (or a
comparable successor risk classification) within the meaning of 12 C.F.R. Part
327 (or any successor provision) to the Federal Deposit Insurance Corporation
for insurance by such Corporation of time deposits made in dollars at the
offices of such member in the United States; provided that if, as a result of
any change in any law, rule or regulation, it is no longer possible to determine
the Assessment Rate as aforesaid, then the Assessment Rate shall be such annual
rate as shall be determined by the Administrative Agent to be representative of
the cost of such insurance to the Lenders.

            "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 9.04), and accepted by the Administrative Agent,
in the form of Exhibit A or any other form approved by the Administrative Agent.

<PAGE>
                                                                              13

            "Avex Entities" means Avex Electronics, Inc, an Alabama corporation,
and Avex Holdings B.V., a Netherlands corporation.

            "Base CD Rate" means the sum of (a) the Three-Month Secondary CD
Rate multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate.

            "Board" means the Board of Governors of the Federal Reserve System
of the United States of America.

            "Board of Directors" means the Board of Directors of the Company or
any committee thereof duly authorized to act on behalf of such Board.

            "Borrower" means the Company or any Borrowing Subsidiary.

            "Borrowing" means Loans of the same Class and Type, made, converted
or continued on the same date and, in the case of Eurodollar Loans, as to which
a single Interest Period is in effect.

            "Borrowing Base" means, at any time (subject to adjustment as
provided in Section 5.08 (b)), an amount equal to the sum of (a) 75% of Eligible
Accounts owed to the Company and its Domestic Divisions, (b) 45% of the
Inventory Value of Eligible Inventory of the Company and its Domestic Divisions,
(c) 50% of Eligible Fixed Assets of the Company and its Domestic Divisions and
(d) the Foreign Subsidiary Amount. The Borrowing Base at any time shall be
determined by reference to the most recent Borrowing Base Certificate delivered
to the Administrative Agent, absent any error in such Borrowing Base
Certificate.

            "Borrowing Base Certificate" means a certificate in the form of
Exhibit J or any other form approved by the Administrative Agent, together with
all attachments contemplated thereby.

            "Borrowing Subsidiary" means, at any time, each Restricted
Subsidiary incorporated or organized in a State of the United States of America
or an Approved Jurisdiction that has been designated as a Borrowing Subsidiary
by the Company pursuant to Section 2.19 and that has not ceased to be a
Borrowing Subsidiary as provided in such Section.

            "Borrowing Subsidiary Agreement" means a Borrowing Subsidiary
Agreement substantially in the form of Exhibit N-1.

            "Borrowing Subsidiary Termination" means a Borrowing Subsidiary
Termination substantially in the form of Exhibit N-2.

            "Borrowing Request" means a request by a Borrower for a Borrowing in
accordance with Section 2.03, substantially in the form of Exhibit H.

            "Business Day" means any day that is not a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by law
to remain closed; provided that, when used in connection with a Eurodollar Loan,
the term "Business Day" shall also

<PAGE>
                                                                              14

exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

            "Capital Expenditures" means, for any period, all expenditures
(whether paid in cash or accrued as a liability, including the portion of
Capital Lease Obligations originally incurred during such period that are
capitalized on the consolidated balance sheet of the Company) by the Company and
its Restricted Subsidiaries during such period, that, in conformity with GAAP,
are included in "capital expenditures", "additions to property, plant or
equipment" or comparable items in the consolidated financial statements of the
Company, but excluding expenditures for the restoration, repair or replacement
of any fixed or capital asset that was destroyed or damaged, in whole or in
part, in an amount equal to any insurance proceeds received in connection with
such destruction or damage.

            "Capital Lease Obligations" of any Person means the obligations of
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP and any obligations of such Person under any
synthetic lease financing whether or not such obligation is classified as a
capital lease under GAAP.

            "Cash Interest Expense" means, for any period, the sum of all cash
payments of interest and prepayment charges, if any, including, without
limitation, all net amounts payable (or receivable) under interest rate
protection agreements and all imputed interest in respect of capital lease
obligations paid by the Company and its Restricted Subsidiaries on a
consolidated basis during such period.

            "Change in Control" means (a) the acquisition of ownership, directly
or indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder as in effect on the date hereof), of Equity
Interests representing more than 50% of either the aggregate ordinary voting
power or the aggregate equity value represented by the issued and outstanding
Equity Interests in the Company; (b) occupation of a majority of the seats
(other than vacant seats) on the Board of Directors by Persons who were neither
(i) nominated by the current Board of Directors nor (ii) appointed by directors
so nominated; or (c) the occurrence of a Designated Event under and as defined
in the Subordinated Note Indenture or a Change of Control or similar event,
however denominated, under the Acceptable Securities or any other Material
Indebtedness.

            "Change in Law" means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender or
any Issuing Bank (or, for purposes of Section 2.14(b), by any lending office of
such Lender or by such Lender's or such Issuing Bank's holding company, if any)
with any request, guideline or directive (whether or not having the force of
law) of any Governmental Authority made or issued after the date of this
Agreement.

            "Chase" means Chase Bank of Texas, National Association, and its
successors.

<PAGE>
                                                                              15

            "Class", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans
or Term Loans and, when used in reference to any Commitment, refers to whether
such Commitment is a Revolving Commitment or Term Loan Commitment.

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

            "Collateral" means any and all "Collateral", as defined in any
applicable Security Document.

            "Collateral Agent" means Chase, in its capacity as collateral agent
for the Lenders hereunder.

            "Collateral and Guarantee Requirement" means, at any time, that the
following requirements shall be satisfied (to the extent such requirements are
stated to be applicable at the time under clause (a) or (b) below):

            (a) at all times on and after the Effective Date:

                  (i) the Guarantee Agreement (or a supplement thereto) shall
            have been executed by the Company and each Domestic Subsidiary
            existing at such time, shall have been delivered to the Collateral
            Agent and shall be in full force and effect;

                  (ii) one or more Pledge Agreements (or supplements thereto)
            shall have been duly executed and delivered by the Company and each
            Domestic Subsidiary existing at such time and directly owning any
            outstanding Equity Interests or any Indebtedness, and there shall
            have been duly and validly pledged to the Collateral Agent
            thereunder, for the ratable benefit of the Secured Parties (A) all
            the outstanding Equity Interests (other than Equity Interests in any
            Foreign Subsidiary) owned directly by the Company or any Domestic
            Subsidiary, (B) 65% of the outstanding voting Equity Interests, and
            100% of the outstanding non-voting Equity Interests (or, in each
            case, such lesser percentages as shall be owned by the Company and
            the Domestic Subsidiaries) in each Foreign Subsidiary owned in whole
            or in part directly by the Company or any Domestic Subsidiary and
            (C) all Indebtedness that is owed to the Company or any Domestic
            Subsidiary; and any certificates, promissory notes or other
            instruments representing the Equity Interests or Indebtedness
            pledged or subjected to a charge under the Pledge Agreements,
            accompanied by stock powers or other instruments of transfer
            endorsed in blank, shall be in the actual possession of the
            Collateral Agent and all other steps required under applicable law
            or requested by the Collateral Agent to ensure that the Pledge
            Agreements create valid, first priority, perfected Liens on all the
            Collateral subject thereto shall have been taken;

                  (iii) one or more Security Agreements (or supplements thereto)
            shall have been duly executed and delivered by the Company and each
            Domestic Subsidiary

<PAGE>
                                                                              16

            existing at such time and there shall have been subjected to
            security interests thereunder securing the Obligations all the
            assets of each such Person in which a security interest can be
            created under the UCC, and all documents and instruments, including
            UCC financing statements, required by law or reasonably requested by
            the Collateral Agent to be filed, registered or recorded to create
            the security interests intended to be created by the Security
            Agreements and perfect such Liens to the extent required by, and
            with the priority required by, the Security Agreements, shall have
            been filed, registered or recorded (or arrangements satisfactory to
            the Collateral Agent for such filing, registration or recording
            shall have been made);

                  (iv) the Administrative Agent shall have received, on or prior
            to the later of the 30th day after the acquisition by the Company or
            a Domestic Subsidiary of any Mortgaged Property and the 10th day
            after the Effective Date, (A) counterparts of a Mortgage with
            respect to such Mortgaged Property duly executed and delivered by
            the record owner of such Mortgaged Property, (B) in the case of each
            Mortgaged Property located in the United States with a book or fair
            market value in excess of $2,000,000, a policy or policies of title
            insurance issued by a nationally recognized title insurance company
            insuring the Lien of each such Mortgage as a valid first Lien on the
            Mortgaged Property described therein, free of any other Liens except
            as expressly permitted by Section 6.02, together with such
            endorsements, coinsurance and reinsurance as the Administrative
            Agent or the Required Lenders may reasonably request, and (C) such
            surveys, abstracts, appraisals, legal opinions and other documents
            as the Administrative Agent or the Required Lenders may reasonably
            request with respect to any such Mortgage or Mortgaged Property;

                  (v) the Indemnity, Subrogation and Contribution Agreement (or
            a supplement thereto) shall have been executed by the Company and
            each Domestic Subsidiary party to the Guarantee Agreement or any
            Pledge Agreement, Security Agreement or Mortgage, shall have been
            delivered to the Collateral Agent and shall be in full force and
            effect; and

                  (vi) each Loan Party shall have obtained all consents and
            approvals required to be obtained by it in connection with the
            execution and delivery of all Security Documents to which it is a
            party, the performance of its obligations thereunder and the
            granting by it of the Liens thereunder; and

            (b) at all times when there shall be one or more Foreign
Subsidiaries that are Foreign Borrowers under this Agreement:

                  (i) the Guarantee Agreement (or a supplement thereto) shall
            have been executed by each Foreign Subsidiary that is a direct or
            indirect parent of any such Foreign Borrower (a "Foreign Parent")
            (it being understood that each Foreign Parent will guarantee only
            the Obligations of Foreign Borrowers that are its subsidiaries),
            shall have been delivered to the Collateral Agent and shall be in
            full force and effect;

<PAGE>
                                                                              17

                  (ii) one or more Pledge Agreements (or supplements thereto)
            shall have been duly executed and delivered by each Foreign Borrower
            and each Foreign Parent of such Foreign Borrower existing at such
            time and directly owning any outstanding Equity Interests or any
            Indebtedness, and there shall have been duly and validly pledged to
            the Collateral Agent under the Pledge Agreement, for the ratable
            benefit of the Secured Parties, (A) all the Equity Interests in such
            Foreign Borrower, each Foreign Parent of such Foreign Borrower and
            each Subsidiary directly owned in whole or in part by such Foreign
            Borrower or any such Foreign Parent, including any such Equity
            Interests owned by the Company and the Domestic Subsidiaries that
            are not pledged pursuant to clause (a)(ii) above and (B) all the
            Indebtedness that is owed to such Foreign Borrower or a Foreign
            Parent (it being understood that the Equity Interests and
            Indebtedness referred to in this clause (ii) will secure only the
            Obligations of such Foreign Borrower); and any certificates,
            promissory notes or other instruments representing such Equity
            Interests or Indebtedness, accompanied by stock powers or other
            instruments of transfer endorsed in blank, shall be in the actual
            possession of the Collateral Agent and all other steps required
            under applicable law or requested by the Collateral Agent to ensure
            that the Pledge Agreements create valid, first priority, perfected
            Liens on all the Collateral subject thereto shall have been taken;

                  (iii) one or more Security Agreements (or supplements thereto)
            shall have been duly executed and delivered by each Foreign Borrower
            or Foreign Parent of such Foreign Borrower existing at such time and
            there shall have been subjected to security interests thereunder
            securing the Obligations of such Foreign Borrower (but not any
            obligations of the Company or any Domestic Subsidiary) all the
            personal property or fixtures (within the meaning of the UCC) of
            such Person in which a security interest can be created under the
            laws of each applicable jurisdiction, with such exceptions as the
            Collateral Agent may approve in its sole discretion, and without
            liability to any party hereto, taking into account the cost and
            difficulty involved in creating or perfecting any such security
            interest and the benefits to the Lenders that would result
            therefrom, and all documents and instruments required by law or
            reasonably requested by the Collateral Agent to be filed, registered
            or recorded to create the security interests intended to be created
            by the Security Agreements and perfect such Liens to the extent
            required by, and with the priority required by, the Security
            Agreements, shall have been filed, registered or recorded (or
            arrangements satisfactory to the Collateral Agent for such filing,
            registration or recording shall have been made); and

                  (iv) the Administrative Agent shall have received (A)
            counterparts of a Mortgage with respect to each Mortgaged Property
            of each Foreign Borrower or Foreign Parent of such Foreign Borrower,
            duly executed and delivered by the record owner of such Mortgaged
            Property and securing the Obligations of such Foreign Borrower (but
            not any obligations of the Company or any Domestic Subsidiary), and
            (B) such surveys, abstracts, appraisals, legal opinions and other
            documents as the Administrative Agent or the Required Lenders may
            reasonably request with respect to any such Mortgage or Mortgaged
            Property.

<PAGE>
                                                                              18

Notwithstanding any of the foregoing provisions of this definition, if the
Company or any Subsidiary shall be using commercially reasonable efforts to
create or perfect any pledge of Equity Interests in or Indebtedness of any
Foreign Subsidiary, the failure to have created or perfected such pledge shall
not, in and of itself, prevent the Collateral and Guarantee Requirement from
being satisfied until (x) the later of (i) the 90th day after the Effective Date
and (ii) the 90th day after the acquisition of such Collateral by the Company or
a Domestic Subsidiary or (y) if, in the judgment of the Collateral Agent, the
Company is endeavoring in good faith to satisfy the Collateral and Guarantee
Requirement, the 180th day after the acquisition of such Collateral by the
Company or a Domestic Subsidiary.

            "Commitment" means a Revolving Commitment, a Foreign Borrower
Commitment or a Term Loan Commitment, or any combination thereof (as the context
requires).

            "Company" means Benchmark Electronics, Inc., a Texas corporation.

            "Consolidated EBITA" means, for any period, the EBITA of the Company
and its Restricted Subsidiaries for such period determined on a consolidated
basis. Solely for purposes of calculating the Interest Coverage Ratio, but not
for any other purpose, Consolidated EBITA for any period of four fiscal quarters
during which the Acquisition shall have occurred shall be computed on a pro
forma consolidated basis to include the EBITA of the Avex Entities that are
Restricted Subsidiaries.

            "Consolidated EBITDA" means, for any period, the EBITDA of the
Company and its Restricted Subsidiaries for such period determined on a
consolidated basis; provided that (i) solely for purposes of calculating the
Leverage Ratio and the Adjusted Leverage Ratio, but not for any other purpose,
Consolidated EBITDA for any period of four fiscal quarters during which the
Acquisition shall have occurred shall be computed on a pro forma consolidated
basis to include the EBITDA of the Avex Entities that are Restricted
Subsidiaries and (ii) solely for purposes of calculating the Leverage Ratio but
not for any other purpose, all references to Restricted Subsidiaries in this
definition and in the definitions referred to herein shall be deemed references
to Subsidiaries.

            "Consolidated Net Income" means, for any Person for any period, the
net income (or loss) of such person and its subsidiaries during such period,
calculated and consolidated or combined in accordance with GAAP; provided that
there shall be excluded from such net income (to the extent otherwise included
therein) the following: (i) any non-cash, non-recurring charges, (ii) gains or
losses attributable to Property sales not in the ordinary course of business,
and (iii) the cumulative effect of a change in accounting principles and any
gains or losses attributable to writeups or writedowns of assets.

            "Consolidated Net Tangible Assets" means the total assets of the
Company and its Restricted Subsidiaries less, without duplication, (i)
intangible assets including, without limitation, goodwill, research and
development costs, trademarks, trade names, patents, franchises, copyrights,
licenses and like general intangibles, experimental or organizational expense,
unamortized debt discount and expense carried as an asset, all reserves and any
write-up in the book of value of assets made after the closing date (other than
write-ups of assets of a going

<PAGE>
                                                                              19

concern business made within 12 months after the acquisition of such business),
net of accumulated amortization and (ii) all reserves for depreciation and other
asset valuation reserves (but excluding reserves for federal, state and other
income taxes).

            "Consolidated Tangible Net Worth" means, at any time:

            (a) the total assets of the Company and its Restricted Subsidiaries
      which would be shown as assets on a consolidated balance sheet of the
      Company and its Restricted Subsidiaries as of such time prepared in
      accordance with GAAP, after eliminating all amounts properly attributable
      to minority interests, if any, in the stock and surplus of Restricted
      Subsidiaries, minus

            (b) the total liabilities of the Company and its Restricted
      Subsidiaries which would be shown as liabilities on a consolidated balance
      sheet of the Company and its Restricted Subsidiaries as of such time
      prepared in accordance with GAAP, minus

            (c) the net book amount of all assets of the Company and its
      Restricted Subsidiaries (after deducting any reserves applicable thereto)
      that would be shown as intangible assets on a consolidated balance sheet
      of the Company and its Restricted Subsidiaries as of such time prepared in
      accordance with GAAP.

            "Control" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.

            "Current Assets" means all assets of a Person which under GAAP would
be classified as current assets.

            "Current Liabilities" means all liabilities of a Person which under
GAAP would be classified as current liabilities, other than current maturities
of Long-Term Indebtedness and the obligation to repay the Revolving Loans.

            "Current Ratio" means, on any day, the ratio of (a) the Current
Assets of the Company and its Restricted Subsidiaries to (b) the Current
Liabilities of the Company and its Restricted Subsidiaries, each on a
consolidated basis.

            "Debt Service" means, for any period, the sum of (a) Cash Interest
Expense for such period and (b) scheduled principal payments on Total
Indebtedness for such period.

            "Default" means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

            "Disclosed Matters" means the actions, suits and proceedings and the
environmental matters disclosed in Schedule 3.06.

<PAGE>
                                                                              20

            "Documentation Agent" means Fleet National Bank., in its capacity as
Documentation Agent.

            "dollars" or "$" refers to lawful money of the United States of
America.

            "Domestic Divisions" means all corporate offices, manufacturing and
warehousing facilities of the Company and its Domestic Subsidiaries located
within the continental United States of America.

            "Domestic Subsidiaries" means all Subsidiaries incorporated or
organized under the laws of the United States of America, any State thereof or
the District of Columbia.

            "EBITA" means, for any Person for any period, without duplication,
the Consolidated Net Income of such Person for such period plus, to the extent
deducted in determining such Consolidated Net Income, Cash Interest Expense,
amortization, other non-cash, non-recurring charges and income tax expense.

            "EBITDA" means, for any Person for any period, without duplication,
the Consolidated Net Income of such Person for such period plus, to the extent
deducted in determining such Consolidated Net Income, Cash Interest Expense,
depreciation, amortization, other non-cash, non-recurring charges and income tax
expense.

            "Effective Date" means August 24, 1999.

            "Effective Date Transactions" means the Transactions that have
occurred, or that are contemplated or required by this Agreement to have
occurred, on or before the Effective Date and prior to or simultaneously with
the initial Borrowing or issuance of a Letter of Credit hereunder.

            "Eligible Account" means, on any date, all Accounts owed to the
Company and its Domestic Divisions on such date that meet the requirements of
this definition. An Account shall not be an Eligible Account unless each of the
following statements is accurate and complete with respect thereto (and the
Company by including such Account in any computation of the Borrowing Base shall
be deemed to represent and warrant to the Administrative Agent, the Issuing Bank
and the Lenders the accuracy and completeness of such statements with respect to
such Account):

            (a) Said Account (i) indicates the Company or one of its Domestic
      Divisions as sole payee and sole remittance party, (ii) is a binding and
      valid obligation of the obligor thereon in full force and effect and (iii)
      is denominated in dollars;

            (b) Said Account has been invoiced and represents the bona fide sale
      and delivery of merchandise, in each case in the ordinary course of
      business of the Company or any of its Domestic Divisions in connection
      with trade operations;

            (c) Said Account is genuine as appearing on its face or as
      represented in the books and records of Company or any of its Domestic
      Divisions, as applicable;

<PAGE>
                                                                              21

            (d) Said Account is free from claims regarding rescission,
      cancelation or avoidance, whether by operation of law or otherwise;

            (e) Said Account is net of concessions, offsets or understandings
      with the obligor thereon that in any way could reasonably be expected to
      adversely affect the payment of said account;

            (f) The Account Debtor (i) has not asserted a right of setoff and
      (ii) has not disputed its liability (whether by chargeback or otherwise)
      or made any claim with respect to the Account or any other Account of the
      Company or its Domestic Divisions which has not been resolved;

            (g) In the case of any Account arising from invoicing for excess and
      obsolete inventory, said account is supported by a purchase order
      acknowledging approval and authorization to be invoiced and to make
      payment thereon;

            (h) Payment of said Account is less than 90 days from the date of
      invoicing or less than 60 days past due as determined by the due date
      stated on the invoice therefor (or, if said Account is not paid by
      reference to an invoice in the ordinary course of business but instead by
      reference to the terms of the agreements creating said account, said
      Account has not remained unpaid beyond 60 days after the due date
      therefor);

            (i) The goods giving rise to the Account have been shipped and the
      Account does not represent a progress or partial billing or otherwise not
      represent a competed sale;

            (j) The Account Debtor is not the United States of America or any
      department, agency or instrumentality thereof;

            (k) If such Account and other Accounts are owed by a creditor of the
      Company or any of its Domestic Divisions, the amount of all such Accounts
      included as Eligible Accounts shall be the amount by which all such
      Accounts exceed the aggregate accounts payable owed by the Company or such
      Domestic Subsidiary to such creditor;

            (l) The obligor on said Account is not (i) an Affiliate of the
      Company or any of the Domestic Divisions, or (ii) an employee of the
      Company or any of the Domestic Divisions;

            (m) Said account is not payable by an obligor for which 50% or more
      of the total accounts owed to the Company or the Domestic Divisions by
      such obligor or any of its Affiliates is unpaid more than 90 days past the
      invoice date or is more than 60 days past due;

            (n) All consents, licenses, approvals or authorizations of, or
      registrations or declarations with, any Governmental Authority required to
      be obtained, effected or given in connection with the execution, delivery
      and performance of said account by each party

<PAGE>
                                                                              22

      obligated thereunder have been duly obtained, effected or given and are in
      full force and effect;

            (o) The obligor on said Account is not the subject of any bankruptcy
      or insolvency proceeding, has not had a trustee or receiver appointed for
      all or a substantial part of its property and has not made an assignment
      for the benefit of creditors, admitted its inability to pay its debts as
      they mature or suspended its business;

            (p) In the case of an Account arising from a sale of goods, the
      subject goods have been sold to an obligor on a true sale basis on open
      account, or subject to contract, and not on a bill and hold, consignment,
      on approval or on a "sale or return" basis or subject to any other
      repurchase or return agreement, no material part of the subject goods has
      been returned, rejected, lost or damaged, and said Account is not
      evidenced by chattel paper or an instrument of any kind;

            (q) The Account Debtor in respect of such Account (i) has its
      principal place of business in the United States of America, (ii) has its
      principal place of business in a member country of the Organization for
      Economic Cooperation and Development and has a senior debt rating of at
      least BBB+ by S&P or a comparable rating from another nationally
      recognized rating agency, (iii) is listed on Schedule C hereto or (iv) is
      otherwise approved by the Required Lenders; and

            (r) Said Account is subject to a valid, first priority perfected
      security interest in favor of the Collateral Agent securing the
      Obligations;

In determining the amounts of Eligible Accounts, the face amounts of all
Accounts shall, to the extent included therein, be reduced by (i) the amount of
all accrued and actual returns, discounts, claims, credits, credits pending,
accrued and actual price adjustments, freight or finance charges or other
allowances (including any amount that the Company or Domestic Subsidiary may be
obligated to rebate to a customer pursuant to the terms of any agreement or
understanding (written or oral)); (ii) the aggregate amount of all reserves,
limits or deductions provided for in this definition and elsewhere in this
Agreement; and (iii) the aggregate amount of all cash received in respect of
Accounts but not yet applied by the Company or the applicable Domestic
Subsidiary to reduce the amount of the Accounts. If any Eligible Account (other
than an Account for which the Account Debtor has a senior debt rating of at
least BBB+ by S&P or a comparable rating from another nationally recognized
rating agency), when added to all other accounts that are obligations of the
same obligor and its Affiliates, results in a total sum that exceeds 15% of the
total balance then due on all gross Accounts receivable (without giving effect
to any reduction in Eligible Accounts pursuant to this proviso), the amount of
said account in excess of 15% of such total balance then due shall be excluded
from Eligible Accounts. In determining the aggregate amount of Accounts from the
same Account Debtor that are unpaid more than 90 days from the date of invoice
or more than 60 days from the due date pursuant to clause (h) above, there shall
be excluded the amount of any net credit balances relating to the Accounts.

            "Eligible Fixed Assets" means, at the time of any determination
thereof, the net book value of the Company's and its Domestic Divisions' Fixed
Assets, determined in accordance with GAAP on a basis consistent with the
Company's and its Domestic Subsidiaries' historical and

<PAGE>
                                                                              23

current accounting practices; provided that real property for which appraisals
reasonably acceptable to the Administrative Agent have been completed shall be
valued at appraised value (except for the Company's real property located in
Angleton, Texas, which shall be valued at net book value). For purposes of
calculating the Borrowing Base, no Fixed Asset may be included as an "Eligible
Fixed Asset" unless (i) the Company or a Domestic Subsidiary has good and
unencumbered title thereto, (ii) the Administrative Agent on behalf of the
Secured Parties possesses a valid first priority perfected security interest
therein under the Security Documents and (iii) such equipment is in service at
the end of the month for which the Borrowing Base is being determined and is not
construction in progress.

            "Eligible Inventory" means, at any date, Inventory of the Company
and its Domestic Divisions, net of any Inventory Reserves, and for which each of
the following statements is accurate and complete (and the Company by including
the Inventory Value of such Inventory in any computation of the Borrowing Base
shall be deemed to represent and warrant to the Administrative Agent, the
Issuing Bank and each Lender the accuracy and completeness of such statements):

            (a) No Person other than the Company or its Domestic Divisions has
      any direct or indirect ownership interest or title to said Inventory;

            (b) Said Inventory is subject to a valid, unencumbered, first
      priority perfected security interest in favor of the Collateral Agent
      securing the Obligations;

            (c) Said Inventory is in good condition, meets all standards imposed
      by any Governmental Authority having regulatory authority over it or its
      use and/or sale and is currently usable in the normal course of business
      of the Company and its Domestic Divisions;

            (d) Said Inventory is in the possession of the Company or one of its
      Domestic Divisions and is located in the United States or in a contract
      warehouse specified on a schedule attached to the Security Agreement and
      segregated or otherwise separately identifiable from goods of all others,
      if any, stored on the premises;

            (e) Said Inventory does not include goods that are used for
      demonstrations and display or are held by the Company or its Domestic
      Divisions pursuant to a consignment agreement or other agreement whereby
      the Company or Domestic Division will not be invoiced for the goods and
      payment for the goods will result in a reduced finished good selling
      price;

            (f) Said Inventory does not represent goods returned or rejected due
      to quality issues raised by customers of the Company or its Domestic
      Divisions or goods in transit;

            (g) Said Inventory is not seconds, thirds, return to vendor, scrap,
      stale, defective, obsolete, slow moving or unmerchantable, and otherwise
      conforms to the representations and warranties contained in the Loan
      Documents;

<PAGE>
                                                                              24

            (h) Said Inventory is not located at an operating facility that the
      Company or the applicable Domestic Division plans to close within thirty
      (30) days from the date of determination of the most recent Borrowing
      Base;

            (i) Said inventory is not film, packaging and/or shipping supplies
      or materials;

            (j) The Inventory Value of said Inventory included in the Borrowing
      Base is net of any premium or expedite fee that was not approved and will
      not be reimbursed by the customer (other than any such fees to the extent
      the aggregate amount thereof included in Inventory Value does not exceed
      $400,000);

Without limiting the foregoing, Inventory shall not be Eligible Inventory if any
purchase order, invoice or any other document in connection therewith indicates
that any Person other than the Company or Domestic Subsidiary has any ownership
interest therein.

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

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

            "Equity Interests" means any shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person, and any
warrants, options or other rights to acquire any such equity ownership
interests.

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

            "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Company, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

            "ERISA Event" means (a) any "reportable event", as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to a
Plan (other than an event for which the 30-day notice period is waived); (b) the
existence with respect to any Plan of an "accumulated

<PAGE>
                                                                              25

funding deficiency" (as defined in Section 412 of the Code or Section 302 of
ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the
Code or Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (d) the incurrence by the Company or
any of its ERISA Affiliates of any liability under Title IV of ERISA with
respect to the termination of any Plan; (e) the receipt by the Company or any
ERISA Affiliate from the PBGC or a plan administrator of any notice relating to
an intention to terminate any Plan or Plans or to appoint a trustee to
administer any Plan; (f) the incurrence by the Company or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal
from any Plan or Multiemployer Plan; or (g) the receipt by the Company or any
ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Company or any ERISA Affiliate of any notice, concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV
of ERISA.

            "Eurodollar", when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate.

            "Event of Default" has the meaning assigned to such term in Article
VII.

            "Excess and Obsolete Reserve" shall equal 50% of the gross amount of
all Raw Materials which are not supported by a specific purchase order from a
customer or Hard Forecast.

            "Excluded Taxes" means, with respect to the Administrative Agent,
any Lender, any Issuing Bank or any other recipient of any payment to be made by
or on account of any obligation of a Borrower hereunder, (a) income or franchise
taxes imposed on (or measured by) its net income by the United States of
America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction described in clause (a) above and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by a Borrower under
Section 2.18(b)), any withholding tax imposed by the United States of America
that (i) is in effect and would apply to amounts payable to such Foreign Lender
at the time such Foreign Lender becomes a party to this Agreement (or designates
a new lending office), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from the applicable
Borrower with respect to any withholding tax pursuant to Section 2.16(a), or
(ii) is attributable to such Foreign Lender's failure to comply with Section
2.16(e).

            "Existing Facility" means the Amended and Restated Credit Agreement
dated as of February 26, 1999, among the Company, the Lenders thereunder and
Chase, as Issuing Bank and as Administrative Agent.

            "Federal Funds Effective Rate" means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if

<PAGE>
                                                                              26

such rate is not so published for any day that is a Business Day, the average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by it.

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

            "Finished Goods" means completed assemblies which have completed
final testing and are to be sold in the normal course of business and are valued
at standard costs with respect to labor, overhead and direct material costs,
provided that labor and overhead do not comprise more than 25% of the total cost
of the finished assembly.

            "Fiscal Quarter" means the fiscal quarter of the Company, ending on
the last day of each March, June, September and December of each year.

            "Fixed Assets" means property, plant and equipment.

            "Fixed Charge Coverage Ratio" means, for any period, the ratio of
(i) Consolidated EBITDA plus operating lease and rental expenses and less cash
taxes of the Company and its Restricted Subsidiaries for such period to (ii)
Debt Service plus Capital Expenditures plus operating lease and rental expenses
of the Company and its Restricted Subsidiaries for such period.

            "Foreign Borrower" means any Borrowing Subsidiary that is a Foreign
Subsidiary.

            "Foreign Borrower Commitment" means, with respect to each Fronting
Lender and Foreign Borrower Supplement, the commitment of such Fronting Lender
to make Revolving Loans under Section 2.01(b) and such Foreign Borrower
Supplement, as such commitment may be (a) reduced from time to time pursuant to
Section 2.08 and (b) reduced or increased from time to time pursuant to
assignments by or to such Fronting Lender pursuant to Section 9.04.

            "Foreign Borrower Exposure" means, with respect to any Revolving
Lender at any time, such Revolving Lender's Applicable Percentage of the
aggregate principal amounts of the outstanding Revolving Loans made under
Section 2.01(b).

            "Foreign Borrower Fronting Fee" shall have the meaning specified in
Section 2.11(c)(ii).

            "Foreign Borrower Participation Fee" shall have the meaning
specified in Section 2.11(c)(i).

            "Foreign Borrower Supplement" means an agreement in the form of
Exhibit O hereto executed and delivered by one or more Foreign Borrowers, one or
more Fronting Lenders and the Administrative Agent as provided in Section
2.01(d).

<PAGE>
                                                                              27

            "Foreign Lender" means, with respect to any Borrower, any Lender
that is organized under the laws of a jurisdiction other than that in which such
Borrower is located. For purposes of this definition, the United States of
America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

            "Foreign Subsidiary" means any Subsidiary that is organized under
the laws of a jurisdiction other than the United States of America or any State
thereof or the District of Columbia.

            "Foreign Subsidiary Amount" means an amount equal to the sum of (i)
65% of the net book value of the Accounts owed to Foreign Subsidiaries (other
than Unrestricted Subsidiaries) organized in Approved Jurisdictions, (ii) 35% of
the net book value of the Inventory of Foreign Subsidiaries (other than
Unrestricted Subsidiaries) organized in Approved Jurisdictions and (iii) 40% of
the net book value of Fixed Assets of Foreign Subsidiaries (other than
Unrestricted Subsidiaries) organized in Approved Jurisdictions; provided, that
if the amount under this clause (b) would constitute more than 20% of the
Borrowing Base (calculated using such amount for purposes of clause (d) of the
definition of "Borrowing Base"), the Foreign Subsidiary Amount shall be reduced
to an amount that constitutes no more than 20% of the Borrowing Base (calculated
using such revised amount for purposes of clause (d) of the definition of
"Borrowing Base"). For purposes of computing the Foreign Subsidiary Amount, (i)
the net book value of any Accounts, Inventory or Fixed Assets at any time shall
be deemed to equal the net book value of such assets at the end of the month
prior to the date a completed Borrowing Base Certificate shall have been
delivered under Section 5.01(e) and (ii) amounts expressed in foreign currencies
shall be translated into dollars using the same practices as are used by the
Company in preparing its consolidated financial statements.

            "Fronting Lender" means, as to any Foreign Borrower Supplement, each
Revolving Lender that has executed and delivered such Foreign Borrower
Supplement as a Fronting Lender. Any Fronting Lender may, in its discretion,
arrange for one or more Revolving Loans to be made by it under any Foreign
Borrower Supplement to be made by Affiliates of such Fronting Lender, in which
case the term "Fronting Lender" shall include any such Affiliate with respect to
Revolving Loans so made by it.

            "GAAP" means generally accepted accounting principles in the United
States of America.

            "Governmental Authority" means the government of the United States
of America, any other nation or any political subdivision thereof, whether state
or local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

            "Guarantee" of or by any Person (the "guarantor") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such

<PAGE>
                                                                              28

Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the owner of
such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or
obligation; provided, that the term Guarantee shall not include endorsements for
collection or deposit in the ordinary course of business.

            "Guarantee Agreement" means the Guarantee Agreement substantially in
the form of Exhibit E among the Company, the Guarantors from time to time party
thereto and the Collateral Agent for the benefit of the Secured Parties, as the
same may be amended, modified or supplemented from time to time in accordance
with the provisions hereof.

            "Hard Forecast" is communicated in advance or in lieu of a purchase
order from a customer, as stipulated in the customer's contract, and means that
the customer is liable for raw materials purchased on the customer's behalf in
the case that the customer changes or cancels an order.

            "Hazardous Materials" means all explosive or radioactive substances
or wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

            "Hedging Agreement" means any interest rate protection agreement,
foreign currency exchange agreement, commodity price protection agreement or
other interest or currency exchange rate or commodity price hedging arrangement.

            "Indebtedness" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money or with respect to deposits or
advances of any kind, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, (c) all obligations of such Person
under conditional sale or other title retention agreements relating to property
acquired by such Person, (d) all obligations of such Person in respect of the
deferred purchase price of property or services, other than accounts payable in
the ordinary course of business, (e) all Indebtedness of others secured by (or
for which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (f)
all Guarantees by such Person of Indebtedness of others, (g) all Capital Lease
Obligations of such Person, (h) all obligations, contingent or otherwise, of
such Person as an account party in respect of letters of credit and letters of
guaranty and (i) all obligations, contingent or otherwise, of such Person in
respect of bankers' acceptances. The Indebtedness of any Person shall include
the Indebtedness of any other entity (including any partnership in which such
Person is a general partner) to the extent such Person is liable therefor as a
result of such Person's ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness provide that such
Person is not liable therefor.

<PAGE>
                                                                              29

            "Indemnified Taxes" means Taxes other than Excluded Taxes.

            "Indemnity, Subrogation and Contribution Agreement" means the
Indemnity, Subrogation and Contribution Agreement substantially in the form of
Exhibit F among the Company, the Subsidiaries from time to time party thereto
and the Collateral Agent for the benefit of the Secured Parties, as the same may
be amended, modified or supplemented from time to time in accordance with the
provisions hereof.

            "Information Memorandum" means the Confidential Information
Memorandum dated July 1999 relating to the Company and the Transactions.

            "Intercompany Indebtedness" means any Indebtedness of the Company or
any Subsidiary owed to and held by the Company or any Wholly Owned Subsidiary;
provided that any subsequent issuance or transfer of any Equity Interest which
results in any such Wholly Owned Subsidiary ceasing to be a Wholly Owned
Subsidiary or any subsequent transfer of such Indebtedness (other than to the
Company or another Wholly Owned Subsidiary) shall be deemed, in each case, to
constitute a new incurrence of Indebtedness other than Intercompany Indebtedness
by the issuer thereof.

            "Interest Coverage Ratio" means, on any day, the ratio of (a)
Consolidated EBITA for the Rolling Period ending on the then most recent
preceding Quarterly Date to (b) Cash Interest Expense during such Rolling
Period.

            "Interest Election Request" means a request by a Borrower to convert
or continue a Revolving Borrowing or Term Borrowing in accordance with Section
2.06.

            "Interest Payment Date" means (a) with respect to any ABR Loan, the
last day of each March, June, September and December and (b) with respect to any
Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing
of which such Loan is a part and, in the case of a Eurodollar Borrowing with an
Interest Period of more than three months' duration, each day prior to the last
day of such Interest Period that occurs at intervals of three months' duration
after the first day of such Interest Period.

            "Interest Period" means, with respect to any Eurodollar Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months thereafter, as the applicable Borrower may elect; provided, that (a)
if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless
such next succeeding Business Day would fall in the next calendar month, in
which case such Interest Period shall end on the next preceding Business Day and
(b) any Interest Period that commences on the last Business Day of a calendar
month (or on a day for which there is no numerically corresponding day in the
last calendar month of such Interest Period) shall end on the last Business Day
of the last calendar month of such Interest Period. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made
and thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.

<PAGE>
                                                                              30

            "Inventory" means all Raw Materials, Work-in-Process and Finished
Goods held in the normal course of business and as such term is defined in
Section 9.109(4) of the UCC as shown on the Company's perpetual inventory
records or equivalent reporting in accordance with their current and historical
classifications.

            "Inventory Reserves" means for the Company and its Domestic
Divisions at any date, an amount equal to the sum of (i) any profits or transfer
price additions accrued in connection with transfers of such Inventory between
the Company and its Domestic Divisions or among Domestic Divisions of the
Company, (ii) any net favorable direct material variances capitalized on the
Company's or its Domestic Division's balance sheet for financial reporting
purposes based on current and historical accounting practices, (iii) the
Angleton Direct Material Purchase Price Reserve, (iv) the Excess and Obsolete
Reserve, (v) the amount which represents cycle count adjustments or any other
amount which represents inventory shrinkage, (vi) warranty or scrap reserves and
(vii) the amount of any reserve maintained by the Company and its Domestic
Divisions which represents written-down, non-saleable or otherwise obsolete
inventory that has not been otherwise excluded from Eligible Inventory.

            "Inventory Value" means a dollar amount equal to the lesser of (i)
standard cost excluding "Obsolescence Reserve", calculated or summarized on a
basis consistent with the Company's quarterly SEC reporting and with GAAP and
with the Company's current and historical accounting practices and (ii) the
market value of such Inventory; provided that the portion attributable to labor
and overhead in work-in-process and finished goods does not comprise more than
25% of total cost for these items.

            "Issuing Banks" means with respect to Letters of Credit issued on or
after the Effective Date, Chase and up to two other Lenders that may become
Issuing Banks hereunder from time to time by entering into Issuing Bank
Agreements with the Company, each in its capacity as an issuer of Letters of
Credit hereunder, and the successors of any such person in such capacity as
provided in Section 2.04(i). Any Issuing Bank may, in its discretion, arrange
for one or more Letters of Credit to be issued by Affiliates of such Issuing
Bank (provided that the Company has approved such Affiliate, such approval not
to be unreasonably withheld), in which case the term "Issuing Bank" shall
include any such Affiliate with respect to Letters of Credit issued by it.

            "Issuing Bank Agreement" means an Issuing Bank Agreement between an
Issuing Bank and the Company substantially in the form of Exhibit M.

            "LC Disbursement" means a payment made by an Issuing Bank pursuant
to a Letter of Credit.

            "LC Exposure" means, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by or
on behalf of the Borrower at such time. The LC Exposure of any Revolving Lender
at any time shall be its Applicable Percentage of the total LC Exposure at such
time.

<PAGE>
                                                                              31

            "Lenders" means the Persons listed on Schedule 2.01 and any other
Person that shall have become a party hereto pursuant to an Assignment and
Acceptance, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Acceptance.

            "Letter of Credit" means any letter of credit issued pursuant to
this Agreement.

            "Leverage Ratio" means, on any date, the ratio of (a) Total
Indebtedness as of such date to (b) Consolidated EBITDA for the period of four
consecutive fiscal quarters of the Company ended on such date (or, if such date
is not the last day of a fiscal quarter, ended on the last day of the fiscal
quarter of the Company most recently ended prior to such date); provided, that
for purposes of determining the Leverage Ratio, all references in the
definitions of Total Indebtedness and Consolidated EBITDA (and in the
definitions used therein) to Restricted Subsidiaries shall be deemed references
to Subsidiaries.

            "LIBO Rate" means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on Page 3750 of the Dow Jones Market Service
(or on any successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the "LIBO Rate" with respect to such
Eurodollar Borrowing for such Interest Period shall be the rate at which dollar
deposits of $5,000,000 and for a maturity comparable to such Interest Period are
offered by the principal London office of the Administrative Agent in
immediately available funds to leading commercial banks in the London interbank
market at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

            "Lien" means, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in,
on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities. For the purposes of this Agreement and the other Loan Documents, the
Company or any Subsidiary of the Company shall be deemed to be the owner of any
Property which it has acquired or holds subject to a conditional sale agreement,
financing lease or other arrangement pursuant to which title to the Property has
been retained by or vested in some other Person for security purposes.

            "Loan Documents" means this Agreement, each Borrowing Subsidiary
Agreement, each Borrowing Subsidiary Termination, each Foreign Borrower
Supplement, the Guarantee Agreement, the Indemnity, Subrogation and Contribution
Agreement, the other Security Documents, any Issuing Bank Agreement, any
promissory note issued pursuant to Section 2.08 and the Borrowing Base
Certificates.

<PAGE>
                                                                              32

            "Loan Parties" means each Borrower and each Subsidiary that is party
to the Guarantee Agreement or any Security Document.

            "Loans" means the loans made by the Lenders to the Borrowers
pursuant to this Agreement.

            "Long-Term Indebtedness" means any Indebtedness that, in accordance
with GAAP, constitutes (or, when incurred, constituted) a long-term liability.

            "Material Adverse Effect" means the result of one or more events,
changes or effects which, individually or in the aggregate, could reasonably be
expected to have a material adverse effect on (a) the business, operations,
assets, liabilities, condition (financial or otherwise) or results of operations
of the Company on an individual basis, or the Company and its Subsidiaries,
taken as a whole (after giving effect to the Transactions) or (b) the validity
or enforceability of any of the documents entered into in connection with the
Transactions (including the Loan Documents) or the rights, remedies and benefits
available to the parties thereunder.

            "Material Indebtedness" means Indebtedness (other than the Loans and
Letters of Credit), or obligations in respect of one or more Hedging Agreements,
of any one or more of the Company and its Subsidiaries in an aggregate principal
amount exceeding $5,000,000. For purposes of determining Material Indebtedness,
the "principal amount" of the obligations of the Company or any Subsidiary in
respect of any Hedging Agreement at any time shall be the maximum aggregate
amount (giving effect to any netting agreements) that the Company or such
Subsidiary would be required to pay if such Hedging Agreement were terminated at
such time.

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

            "Mortgage" means a mortgage, deed of trust, assignment of leases and
rents, leasehold mortgage or other security document granting a Lien on any
Mortgaged Property to secure the Obligations. Each Mortgage shall be
satisfactory in form and substance to the Collateral Agent.

            "Mortgaged Property" means each parcel of real property and the
improvements thereto owned by any Borrower, any Domestic Subsidiary or any
Foreign Subsidiary that is a direct or indirect parent of a Borrower.

            "Multiemployer Plan" means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

            "Net Proceeds" means, with respect to any event, (a) the cash
proceeds received in respect of such event including (i) any cash received in
respect of any non-cash proceeds, but only as and when received, (ii) in the
case of a casualty, insurance proceeds, and (iii) in the case of a condemnation
or similar event, condemnation awards and similar payments, net of (b) the sum
of (i) all reasonable fees and out-of-pocket expenses paid by the Company to
third parties (other than Affiliates) in connection with such event, (ii) in the
case of a sale, transfer or other disposition of an asset (including pursuant to
a sale and leaseback transaction or a casualty or a condemnation or similar
proceeding), the amount of all payments required to be made by the Company as a
result of

<PAGE>
                                                                              33

such event to repay Indebtedness (other than Loans) secured by such asset or
otherwise subject to mandatory prepayment as a result of such event, and (iii)
the amount of all taxes paid (or reasonably estimated to be payable) by the
Company for the year in which such event occurred and that are directly
attributable to such event, and the amount of any reserves established by the
Company to fund contingent liabilities reasonably estimated to be payable as a
direct result of or with respect to assets transferred in such event, (in each
case, as determined reasonably and in good faith by the chief financial officer
of the Company).

            "Net Worth" means, at any time and from time to time, the net worth
of the Company and its Subsidiaries on a consolidated basis, determined in
accordance with GAAP.

            "Obligations" means (a) the due and punctual payment by the
Borrowers or the applicable Loan Parties of (i) the principal of and premium, if
any, and interest (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) on the Loans, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise, (ii) each payment required to be made by the Borrowers under this
Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of disbursements, interest thereon and
obligations to provide cash collateral and (iii) all other monetary obligations,
including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding), of
the Loan Parties to the Secured Parties under this Agreement and the other Loan
Documents, (b) the due and punctual payment and performance of all covenants,
agreements, obligations and liabilities of the Loan Parties, monetary or
otherwise, under or pursuant to this Agreement and the other Loan Documents and
(c) the due and punctual payment of all obligations of the Company under each
Hedging Agreement entered into (i) prior to the Effective Date with any
counterparty that is a Lender (or an Affiliate thereof) on the date hereof or
(ii) on or after the Effective Date with any counterparty that is a Lender (or
an Affiliate thereof) at the time such Hedging Agreement is entered into.

            "Original Credit Agreement" means the Credit Agreement dated as of
August 24, 1999, among the Company, Citicorp USA as documentation agent, Bank of
America NA, Bank One Texas NA, and SunTrust Bank, Atlanta, each as co-agents,
Chase Bank of Texas, National Association, as administrative agent, collateral
agent and issuing bank and the Lenders party thereto.

            "Other Taxes" means any and all present or future recording, stamp,
documentary, excise, transfer, sales, property or similar taxes, charges or
levies arising from any payment made under any Loan Document or from the
execution, delivery or enforcement of, or otherwise with respect to, any Loan
Document.

            "PBGC" means the Pension Benefit Guaranty Corporation referred to
and defined in ERISA and any successor entity performing similar functions.

            "Perfection Certificate" means a certificate in the form of Exhibit
C or any other form approved by the Collateral Agent.

<PAGE>
                                                                              34

            "Permitted Encumbrances" means:

            (a) Liens imposed by law for taxes that are not yet due or are being
      contested in compliance with Section 5.04;

            (b) carriers', warehousemen's, mechanics', materialmen's,
      repairmen's and other like Liens imposed by law, arising in the ordinary
      course of business and securing obligations that are not overdue by more
      than 90 days or are being contested in compliance with Section 5.04;

            (c) pledges and deposits made in the ordinary course of business in
      compliance with workers' compensation, unemployment insurance and other
      social security laws or regulations;

            (d) deposits to secure the performance of bids, trade contracts,
      leases, statutory obligations, surety and appeal bonds, performance bonds
      and other obligations of a like nature, in each case in the ordinary
      course of business;

            (e) judgment liens in respect of judgments that do not constitute an
      Event of Default under clause (k) of Article VII;

            (f) easements, zoning restrictions, rights-of-way and similar
      encumbrances on real property imposed by law or arising in the ordinary
      course of business that do not secure any monetary obligations and do not
      materially detract from the value of the affected property or interfere
      with the ordinary conduct of business of the Company or any Subsidiary;

            (g) any obligations or duties affecting any of the property of the
      Company or the Subsidiaries to any municipality or public authority with
      respect to any franchise, grant, license or permit which do not materially
      impair the use of such property for the purposes for which it is held;

            (h) Liens arising from precautionary UCC financing statements
      regarding operating leases; and

            (i) Liens arising out of consignment or similar arrangements for the
      sale of goods entered into by the Company or any of its Subsidiaries in
      the ordinary course of business.

provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness.

            "Permitted Investments" means:

            (a) direct obligations of, or obligations the principal of and
      interest on which are unconditionally guaranteed by, the United States of
      America (or by any agency thereof to

<PAGE>
                                                                              35

      the extent such obligations are backed by the full faith and credit of the
      United States of America), in each case maturing within one year from the
      date of acquisition thereof;

            (b) investments in commercial paper maturing within one year from
      the date of acquisition thereof and having, at such date of acquisition,
      the highest credit rating obtainable from S&P or from Moody's;

            (c) investments in certificates of deposit, banker's acceptances and
      time deposits maturing within 364 days from the date of acquisition
      thereof issued or guaranteed by or placed with, and money market deposit
      accounts issued or offered by, any domestic office of any commercial bank
      organized under the laws of the United States of America or any State
      thereof which (i) has a combined capital and surplus and undivided profits
      of not less than $500,000,000 and (ii) has short-term credit ratings of at
      least A1 and P1 by S&P and Moody's, respectively;

            (d) fully collateralized repurchase agreements with a term of not
      more than 30 days for securities described in clause (a) above and entered
      into with a financial institution satisfying the criteria described in
      clause (c) above; provided that the Company shall take possession of all
      securities purchased by the Company or any Subsidiary under repurchase
      agreements and shall adhere to customary margin and mark-to-market
      procedures with respect to fluctuations in value; and

            (e) deposits in money market accounts investing exclusively or
      substantially exclusively in investments comprised of clauses (a) through
      (d) above.

            "Person" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

            "Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Company or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

            "Pledge Agreements" means (a) a Pledge Agreement substantially in
the form of Exhibit D among the Company, the Subsidiaries from time to time
party thereto and the Collateral Agent and (b) in connection with pledges of
shares of or other equity interests in Foreign Subsidiaries, other pledge
agreements or similar agreements in form and substance satisfactory to the
Collateral Agent, as the same may be amended, modified or supplemented from time
to time in accordance with the provisions hereof.

            "Prime Rate" means the rate of interest per annum publicly announced
from time to time by Chase as its prime rate in effect at its principal office
in The City of Houston; each change in the Prime Rate shall be effective from
and including the date such change is publicly announced as being effective.

<PAGE>
                                                                              36

            "Proceeds" means the net cash proceeds received by the Borrower from
any issuance of the Acceptable Securities after the Effective Date.

            "Qualified Foreign Subsidiary Holding Company" means a Domestic
Subsidiary that does not own any assets other than, or engage in any business or
activity other than the ownership of, Equity Interests of one or more Domestic
or Foreign Subsidiaries and that does not have any Indebtedness or liabilities
other than (a) liabilities incidental to its ownership of such Equity Interests
and (b) liabilities as a Guarantor of the Obligations.

            "Quarterly Dates" means the last day of each March, June, September
and December in each year.

            "Raw Materials" means any raw materials to be used or consumed in
the manufacture of goods to be sold in the normal course of business and shall
be valued at standard costs with respect to direct material purchases.

            "Register" has the meaning set forth in Section 9.04.

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

            "Required Lenders" means, at any time, Lenders having Revolving
Exposures, Term Loans and unused Commitments representing at least 51% of the
sum of the aggregate Revolving Exposures, outstanding Term Loans and unused
Commitments at such time.

            "Restatement Effective Date" means the date on which the conditions
specified in Section 4.01 are satisfied (or waived in accordance with Section
9.02).

            "Restricted Payment" means any dividend or other distribution
(whether in cash, securities or other property) with respect to any Equity
Interests in the Company or any Subsidiary, or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit, on
account of the purchase, redemption, retirement, acquisition, cancelation or
termination of any Equity Interests in the Company or any Subsidiary.

            "Restricted Subsidiary" means (a) any Domestic Subsidiary and (b)
any Foreign Subsidiary that is not an Unrestricted Subsidiary.

            "Revolving Availability Period" means the period from and including
the Effective Date to but excluding the earlier of the Revolving Maturity Date
and the date of termination of the Revolving Commitments.

            "Revolving Commitment" means, with respect to each Lender, the
commitment, if any, of such Lender to make Revolving Loans and to acquire
participations in Letters of Credit hereunder, expressed as an amount
representing the maximum aggregate amount of such Lender's Revolving Exposure
hereunder, as such commitment may be (a) reduced from time to time pursuant to
Section 2.07 and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.04. The initial amount of
each Lender's Revolving

<PAGE>
                                                                              37

Commitment is set forth on Schedule 2.01, or in the Assignment and Acceptance
pursuant to which such Lender shall have assumed its Revolving Commitment, as
applicable. The aggregate amount of the Lenders' Revolving Commitments on the
Restatement Effective Date is $175,000,000.

            "Revolving Exposure" means, with respect to any Lender at any time,
the sum of (a) the outstanding principal amount of such Lender's Revolving
Loans, (b) such Lender's Foreign Borrower Exposure and (c) such Lender's LC
Exposure, in each case at such time.

            "Revolving Lender" means a Lender with a Revolving Commitment or, if
the Revolving Commitments have terminated or expired, a Lender with Revolving
Exposure.

            "Revolving Loan" means a Loan made pursuant to clause (a) of Section
2.01.

            "Revolving Maturity Date" means September 30, 2004.

            "Rolling Period" means any period of four consecutive Fiscal
Quarters (or, if less, the number of full Fiscal Quarters subsequent to the
Effective Date).

            "S&P" means Standard & Poor's Rating Services.

            "Scheduled Indebtedness" means all Indebtedness incurred under the
Existing Facility or listed on Schedule B.

            "Secured Parties" means the Administrative Agent, the Collateral
Agent, each Lender, the Issuing Bank and each other person to which any of the
Obligations is owed.

            "Security Agreements" means (a) a Security Agreement substantially
in the form of Exhibit G among the Company, the Domestic Subsidiaries from time
to time party thereto and the Collateral Agent for the benefit of the Secured
Parties and (b) in connection with the creation of security interests in the
assets of Foreign Subsidiaries, other security agreements or similar agreements
in form and substance satisfactory to the Collateral Agent, as the same may be
amended, modified or supplemented from time to time in accordance with the
provisions hereof.

            "Security Documents" means the Security Agreements, the Pledge
Agreements, the Mortgages and each other security agreement or other instrument
or document executed and delivered pursuant to Section 5.11 or 5.12 to secure
any of the Obligations.

            "Seller" means J.M. Huber Corporation, a New Jersey corporation.

            "Statutory Reserve Rate" means a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject (a) with
respect to the Base CD Rate, for new negotiable nonpersonal time deposits in
dollars of over $100,000 with maturities approximately equal to three months and
(b) with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently
referred to as "Eurocurrency

<PAGE>
                                                                              38

Liabilities" in Regulation D of the Board). Such reserve percentages shall
include those imposed pursuant to such Regulation D. Eurodollar Loans shall be
deemed to constitute eurocurrency funding and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets
that may be available from time to time to any Lender under such Regulation D or
any comparable regulation. The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

            "Stock Purchase Agreement" means the Amended and Restated Stock
Purchase Agreement dated August 12, 1999, between the Seller and the Company.

            "Subordinated Indebtedness" means Indebtedness that by its terms is
subordinated to any of the Obligations.

            "Subordinated Notes" means the 6% Convertible Subordinated Notes due
2006 issued by the Company in an aggregate principal amount of $80,200,000 under
the Subordinated Note Indenture.

            "Subordinated Note Indenture" means the Indenture dated as of August
13, 1999, between the Company and Harris Trust Company of New York, as trustee.

            "subsidiary" means, with respect to any Person (the "parent") at any
date, any corporation, limited liability company, partnership, association or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
entity of which securities or other ownership interests representing more than
50% of the equity or more than 50% of the ordinary voting power or, in the case
of a partnership, more than 50% of the general partnership interests are, as of
such date, owned, controlled or held by the parent or one or more subsidiaries
of the parent or by the parent and one or more subsidiaries of the parent.

            "Subsidiary" means any subsidiary of the Company. For purposes of
the representations and warranties made herein on the Effective Date, the term
"Subsidiary" includes each of the Avex Entities and their subsidiaries.

            "Syndication Agent" means Credit Suisse First Boston., in its
capacity as Syndication Agent.

            "Taxes" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

            "Term Loan" means a Loan made by a Lender pursuant to clause (a) of
Section 2.01.

            "Term Loan Commitment" means, with respect to each Lender, the
commitment, if any, of such Lender to make a Term Loan hereunder on the
Effective Date, expressed as an amount representing the maximum principal amount
of the Term Loan to be made by such Lender hereunder. The amount of each
Lender's Term Loan Commitment is set forth on Schedule 2.01.

<PAGE>
                                                                              39

The aggregate amount of the Lenders' Term Loan Commitments on the Effective Date
was $100,000,000.

            "Term Loan Lender" means a Lender with a Term Loan Commitment or an
outstanding Term Loan.

            "Term Loan Maturity Date" means September 30, 2004.

            "Three-Month Secondary CD Rate" means, for any day, the secondary
market rate for three-month certificates of deposit reported as being in effect
on such day (or, if such day is not a Business Day, the next preceding Business
Day) by the Board through the public information telephone line of the Federal
Reserve Bank of New York (which rate will, under the current practices of the
Board, be published in Federal Reserve Statistical Release H.15(519) during the
week following such day) or, if such rate is not so reported on such day or such
next preceding Business Day, the average of the secondary market quotations for
three-month certificates of deposit of major money center banks in New York City
received at approximately 10:00 a.m., New York City time, on such day (or, if
such day is not a Business Day, on the next preceding Business Day) by the
Administrative Agent from three negotiable certificate of deposit dealers of
recognized standing selected by it.

            "Total Indebtedness" means, as of any date, the sum of (a) the
aggregate principal amount of Indebtedness of the Company and its Restricted
Subsidiaries outstanding as of such date, in the amount that would be reflected
on a balance sheet prepared as of such date on a consolidated basis in
accordance with GAAP, plus (b) the aggregate principal amount of Indebtedness of
the Company and its Restricted Subsidiaries outstanding as of such date that is
not required to be reflect on a balance sheet in accordance with GAAP,
determined on a consolidated basis; provided that, (i) for purposes of clause
(b) above, the term "Indebtedness" shall not include contingent obligations of
the Company or any Restricted Subsidiary as an account party in respect of any
letter of credit or letter of guaranty unless such letter of credit or letter of
guaranty supports an obligation that constitutes Indebtedness and (ii) solely
for purposes of calculating the Leverage Ratio but not for any other purpose,
all references to Restricted Subsidiaries in this definition and in the
definitions referred to herein shall be deemed references to Subsidiaries.

            "Transactions" means the Acquisition, the repayments of Indebtedness
required under Section 4.01, the execution, delivery and performance of the Loan
Documents, the Borrowings and issuances of Letters of credit hereunder and the
creation of the Liens created by the Security Documents.

            "Type", when used in reference to any Loan or Borrowing, refers to
whether the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate
Base Rate.

            "UCC" means the Uniform Commercial Code as from time to time in
effect in the State of Texas or, where applicable as to specific Collateral, any
other relevant state.

            "Unrestricted Subsidiary" means (i) any Foreign Subsidiary of the
Company that at the time of determination shall have been designated as an
Unrestricted Subsidiary by the

<PAGE>
                                                                              40

Company in the manner provided below (and shall not subsequently have been
designated as a Restricted Subsidiary) and (ii) any subsidiary of an
Unrestricted Subsidiary. The Company may from time to time designate any Foreign
Subsidiary (other than a Foreign Subsidiary that, immediately after such
designation, shall hold any Indebtedness of or Equity Interest in the Company or
any Restricted Subsidiary) as an Unrestricted Subsidiary, and may designate any
Unrestricted Subsidiary as a Restricted Subsidiary so long as, immediately after
giving effect to such designation, no Default shall have occurred and be
continuing. Any designation by the Company pursuant to this definition shall be
made in an officer's certificate delivered to the Administrative Agent and
containing a certification that such designation is in compliance with the terms
of this definition. Notwithstanding the foregoing, no Borrowing Subsidiary shall
at any time be an Unrestricted Subsidiary.

            "Wholly Owned Subsidiary" means any Subsidiary of the Company all
the capital stock or other equity interests of which (other than directors'
qualifying shares and shares held by other than the Persons to the extent such
shares are required by applicable law to be held by a Person other than the
Company or one of its Subsidiaries) is owned by the Company or one or more
Wholly Owned Subsidiaries.

            "Withdrawal Liability" means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

            "Work-in-Process" means goods to be sold in the normal course of
business, which are currently in the process of being manufactured and shall be
valued at standard costs with respect to labor, overhead and direct material
costs; provided that labor and overhead does not comprise more than 25% of the
total value of work-in-process per assembly.

            SECTION 1.02. Classification of Loans and Borrowings. For purposes
of this Agreement, Loans may be classified and referred to by Class (e.g., a
"Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class and Type
(e.g., a "Eurodollar Revolving Loan"). Borrowings also may be classified and
referred to by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a
"Eurodollar Borrowing") or by Class and Type (e.g., a "Eurodollar Revolving
Borrowing").

            SECTION 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to

<PAGE>
                                                                              41

Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e)
the words "asset" and "property" shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights. The phrase
"the date of this Agreement" or "the date hereof" shall mean the date of this
Amended and Restated Credit Agreement.

            SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Company notifies the Administrative Agent that the Company requests
an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the Company
that the Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.

                                   ARTICLE II

                                   The Credits

            SECTION 2.01. Commitments. (a) Subject to the terms and conditions
set forth herein, each Lender agrees (i) to make a Term Loan to the Company on
the Effective Date, in dollars, in a principal amount that will not result in
(x) such Lender's Term Loan exceeding such Lender's Term Loan Commitment or (y)
the sum of the aggregate outstanding principal amount of the Loans and the LC
Exposure exceeding the Borrowing Base then in effect and (ii) to make Revolving
Loans to any Borrower from time to time during the Revolving Availability
Period, in dollars, in an aggregate principal amount that will not result in (x)
such Lender's Revolving Exposure exceeding its Revolving Commitment, (y) the sum
of the aggregate outstanding principal amount of the Loans and the LC Exposure
exceeding the Borrowing Base then in effect or (z) in the case of any Foreign
Borrower, the sum of the aggregate outstanding principal amount of the Revolving
Loans of all Foreign Borrowers exceeding $20,000,000. Within the foregoing
limits and subject to the terms and conditions set forth herein, the Borrower
may borrow, prepay and reborrow Revolving Loans. Amounts repaid in respect of
Term Loans may not be reborrowed. The parties hereto acknowledge that the Term
Loan Commitments terminated on the Effective Date.

            (b) Subject to the terms and conditions and relying upon the
representations and warranties set forth herein, each Fronting Lender that is
party to a Foreign Borrower Supplement agrees, severally and not jointly, to
make Revolving Loans to any Foreign Borrower that is a designated Borrower under
such Foreign Borrower Supplement from time to time during the Revolving
Availability Period, in dollars, in an aggregate principal amount that will not
result in (i) such Lender's Revolving Exposure exceeding its Revolving
Commitment, (ii) the aggregate outstanding principal amount of the Loans and the
LC Exposure exceeding the Borrowing Base then in effect, (iii) the aggregate
principal amount of the Revolving Loans made by such Fronting

<PAGE>
                                                                              42

Lender pursuant to such Foreign Borrower Supplement exceeding such Fronting
Lender's Foreign Borrower Commitment under such Foreign Borrower Supplement or
(iv) the sum of the aggregate outstanding principal amount of the Revolving
Loans of all Foreign Borrowers exceeding $20,000,000; provided that a Fronting
Lender shall not be required to, and shall not, make any Revolving Loan under
this paragraph if the Required Lenders shall have delivered to such Fronting
Lender, not later than two Business Days prior to the date on which any such
Revolving Loan shall have been scheduled to be made, a notice stating that a
Default has occurred and is continuing and directing such Fronting Lender not to
make Revolving Loans.

            (c) In the event that any Revolving Borrowing made pursuant to
paragraph (b) above shall be outstanding and (i) the principal of or interest on
such Borrowing shall not be paid within three Business Days after the date on
which it is due and one or more Fronting Lenders holding a majority in interest
of the outstanding Revolving Loans included in such Revolving Borrowing shall
deliver to the Administrative Agent and the Company a request that the
provisions of this paragraph take effect with respect to such Borrowing or (ii)
the Revolving Commitments shall be terminated or the Loans accelerated pursuant
to Article VII, then (A) each Revolving Lender shall acquire at face value a
participation in the Loans included in such Revolving Borrowing and the interest
accrued thereon equal to its Applicable Percentage of such obligations, and
shall pay the purchase price for such participation by wire transfer of
immediately available funds in dollars to the Administrative Agent in the manner
provided in Section 2.05 (and the Administrative Agent shall promptly wire the
amounts so received to the applicable Fronting Lenders ratably in accordance
with their respective Revolving Loans included in such Revolving Borrowings) and
(B) such Loans shall at all times thereafter, until repaid in accordance with
the terms hereof, bear interest at the rate applicable to overdue ABR Borrowings
under Section 2.13(c), and the principal of and interest on such Loans will be
payable at the applicable times and places for overdue ABR Borrowings. The
obligations of the Revolving Lenders to acquire and pay for participations in
Revolving Loans pursuant to this paragraph shall be absolute and unconditional
under any and all circumstances.

            (d) One or more Foreign Borrowers, the Administrative Agent and one
or more Revolving Lenders may from time to time enter into one or more Foreign
Borrower Supplements pursuant to which such Revolving Lenders may agree to serve
as Fronting Lenders. Any such Foreign Borrower Supplement shall set forth the
Foreign Borrower Commitment of each Fronting Lender party thereto, the Foreign
Borrowers that may borrow under such Foreign Borrower Supplement, any special
provisions for the times and places at which or the Persons to which Borrowing
Requests are to be delivered, proceeds of Borrowings are to be disbursed or
payments in respect of Borrowings are to be made or for the compensation to be
payable to Fronting Lenders and any other special provisions to be applicable to
Borrowings under such Foreign Borrower Supplement. Any special provisions
referred to in the preceding sentence that shall be included in any Foreign
Borrower Supplement shall be applicable to all Borrowings under such Foreign
Borrower Supplement, notwithstanding any other provision of this Article II to
the contrary (and in the absence of any such special provisions, the applicable
provisions set forth in this Article II shall control).

            SECTION 2.02. Loans and Borrowings. (a) Each Term Loan and each
Revolving Loan made pursuant to Section 2.01(a) shall be made as part of a
Borrowing consisting of Loans of the same Class and Type made by the Lenders
ratably in accordance with their

<PAGE>
                                                                              43

respective Commitments of the applicable Class. Each Revolving Loan made
pursuant to Section 2.01(b) shall be made as part of a Borrowing consisting of
Loans of the same Type made by the Fronting Lenders ratably in accordance with
their respective applicable Foreign Borrower Commitments. The failure of any
Lender to make any Loan required to be made by it shall not relieve any other
Lender of its obligations hereunder; provided that the Commitments of the
Lenders are several and no Lender shall be responsible for any other Lender's
failure to make Loans as required.

            (b) Subject to Section 2.13, each Revolving Borrowing and Term
Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the
applicable Borrower may request in accordance herewith. Each Lender at its
option may make any Eurodollar Loan by causing any domestic or foreign branch or
Affiliate of such Lender to make such Loan; provided that any exercise of such
option shall not affect the obligation of any Borrower to repay such Loan in
accordance with the terms of this Agreement.

            (c) At the commencement of each Interest Period for any Eurodollar
Borrowing, and at the time that any ABR Borrowing is made, such Borrowing shall
be in an aggregate amount that is an integral multiple of $500,000; provided
that an ABR Revolving Borrowing may be in an aggregate amount that is equal to
the entire unused balance of the total Revolving Commitments or that is required
to finance the reimbursement of an LC Disbursement as contemplated by Section
2.04(e). Borrowings of more than one Type and Class may be outstanding at the
same time; provided that there shall not at any time be more than a total of
five Eurodollar Borrowings outstanding.

            (d) Notwithstanding any other provision of this Agreement, no
Borrower shall be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after
the Revolving Maturity Date or Term Loan Maturity Date, as applicable or if the
requested Interest Period with respect to any Term Loan or portion thereof would
extend beyond any date upon which is due any scheduled principal payment in
respect of Term Loans unless the aggregate principal amount of Term Loans which
are ABR Loans or which are Eurodollar Loans having Interest Periods that will
expire on or before such date equals or exceeds the amount of such principal
payment.

            SECTION 2.03. Requests for Borrowings. To request a Revolving
Borrowing or Term Borrowing, the applicable Borrower shall notify the
Administrative Agent of such request by telephone (a) in the case of a
Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three
Business Days before the date of the proposed Borrowing or (b) in the case of an
ABR Borrowing, not later than 11:00 a.m., New York City time, on the date of the
proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable
and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the Borrower. Each such telephonic and
written Borrowing Request shall specify the following information in compliance
with Section 2.02:

            (i) whether the requested Borrowing is to be a Revolving Borrowing
      or Term Borrowing and, in the case of a Revolving Borrowing, whether such
      Borrowing is to be made under Section 2.01(a) or 2.01(b) (and, if such
      Borrowing is to be made under

<PAGE>
                                                                              44

      Section 2.01(b), the Foreign Borrower Supplement pursuant to which such
      Borrowing is to be made);

            (ii) the aggregate amount of such Borrowing;

            (iii) the date of such Borrowing, which shall be a Business Day;

            (iv) whether such Borrowing is to be an ABR Borrowing or a
      Eurodollar Borrowing;

            (v) in the case of a Eurodollar Borrowing, the initial Interest
      Period to be applicable thereto, which shall be a period contemplated by
      the definition of the term "Interest Period";

            (vi) the Borrower requesting such Borrowing; and

            (vii) the location and number of the Borrower's account to which
      funds are to be disbursed, which shall comply with the requirements of
      Section 2.05(a).

If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurodollar Revolving Borrowing, then the requesting
Borrower shall be deemed to have selected an Interest Period of one month's
duration. Promptly following receipt of a Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender or Fronting
Lender, as the case may be, of the details thereof and of the amount of such
Lender's Loan to be made as part of the requested Borrowing.

            SECTION 2.04. Letters of Credit. (a) General. Subject to the terms
and conditions set forth herein, the Company may request the issuance of Letters
of Credit for its own account or for the joint and several account of the
Company and a Subsidiary, in a form reasonably acceptable to the Administrative
Agent and the applicable Issuing Bank, at any time and from time to time during
the Revolving Availability Period. In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form
of letter of credit application or other agreement submitted by the Company to,
or entered into by the Company with, an Issuing Bank relating to any Letter of
Credit, the terms and conditions of this Agreement shall control.

            (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), the Company shall hand
deliver or telecopy (or transmit by electronic communication, if arrangements
for doing so have been approved by the applicable Issuing Bank) to the
applicable Issuing Bank and the Administrative Agent (reasonably in advance of
the requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on
which such Letter of Credit is to expire (which shall comply with paragraph (c)
of this Section), the amount of such Letter of Credit, the name and address of
the beneficiary thereof and such other information as shall be necessary to
prepare, amend, renew or

<PAGE>
                                                                              45

extend such Letter of Credit. If requested by such Issuing Bank, the Company
also shall submit a letter of credit application on such Issuing Bank's standard
form in connection with any request for a Letter of Credit. A Letter of Credit
shall be issued, amended, renewed or extended only if (and upon issuance,
amendment, renewal or extension of each Letter of Credit the Company shall be
deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension (i) the LC Exposure shall not exceed
$20,000,000, (ii) the total Revolving Exposures shall not exceed the total
Revolving Commitments and (iii) the sum of the aggregate outstanding principal
amount of the Loans and the LC Exposure shall not exceed the Borrowing Base then
in effect.

            (c) Expiration Date. Each Letter of Credit shall expire at or prior
to the close of business on the earlier of (i) the date one year after the date
of the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension) and (ii) the date
that is five Business Days prior to the Revolving Maturity Date.

            (d) Participations. By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of any Issuing Bank or the Lenders, each Issuing Bank
hereby grants to each Revolving Lender, and each Revolving Lender hereby
acquires from such Issuing Bank, a participation in such Letter of Credit equal
to such Lender's Applicable Percentage of the aggregate amount available to be
drawn under such Letter of Credit. In consideration and in furtherance of the
foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to
pay to the Administrative Agent, for the account of each Issuing Bank, such
Lender's Applicable Percentage of each LC Disbursement made by such Issuing Bank
and not reimbursed by the Company on the date due as provided in paragraph (e)
of this Section, or of any reimbursement payment required to be refunded to the
Company for any reason. Each Lender acknowledges and agrees that its obligation
to acquire participations pursuant to this paragraph in respect of Letters of
Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever.

            (e) Reimbursement. If any Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Company shall reimburse such
LC Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement not later than 12:00 noon, New York City time, on the date that
such LC Disbursement is made, if the Company shall have received notice of such
LC Disbursement prior to 10:00 a.m., New York City time, on such date, or, if
such notice has not been received by the Company prior to such time on such
date, then not later than 12:00 noon, New York City time, on the Business Day
immediately following the day that the Company receives such notice. If the
Company fails to make such payment when due, the Administrative Agent shall
notify each Revolving Lender of the applicable LC Disbursement, the payment then
due from the Company in respect thereof and such Lender's Applicable Percentage
thereof. Promptly following receipt of such notice, each Revolving Lender shall
pay to the Administrative Agent its Applicable Percentage of the payment then
due from the Company, in the same manner as provided in Section 2.05 with
respect to Loans made by such Lender (and Section 2.05 shall apply, mutatis
mutandis, to the payment obligations of the Revolving Lenders), and the
Administrative Agent shall promptly pay to the applicable Issuing Bank the
amounts so

<PAGE>
                                                                              46

received by it from the Revolving Lenders. Promptly following receipt by the
Administrative Agent of any payment from the Company pursuant to this paragraph,
the Administrative Agent shall distribute such payment to such Issuing Bank or,
to the extent that Revolving Lenders have made payments pursuant to this
paragraph to reimburse such Issuing Bank, then to such Lenders and the Issuing
Bank as their interests may appear. Any payment made by a Revolving Lender
pursuant to this paragraph to reimburse an Issuing Bank for any LC Disbursement
shall not constitute a Loan and shall not relieve the Company of its obligation
to reimburse such LC Disbursement.

            (f) Obligations Absolute. The Company's obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by any Issuing Bank under a Letter of
Credit against presentation of a draft or other document that does not comply
with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Company's obligations hereunder. Neither
the Administrative Agent, the Lenders nor any Issuing Bank, nor any of their
Related Parties, shall have any liability or responsibility by reason of or in
connection with the issuance or transfer of any Letter of Credit or any payment
or failure to make any payment thereunder (irrespective of any of the
circumstances referred to in the preceding sentence), or any error, omission,
interruption, loss or delay in transmission or delivery of any draft, notice or
other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of any
Issuing Bank; provided that the foregoing shall not be construed to excuse any
Issuing Bank from liability to the Company to the extent of any direct damages
(as opposed to consequential damages, claims in respect of which are hereby
waived by the Company to the extent permitted by applicable law) suffered by the
Company that are caused by any Issuing Bank's failure to exercise care when
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that,
in the absence of gross negligence or wilful misconduct on the part of the
Issuing Bank (as finally determined by a court of competent jurisdiction), such
Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their
face to be in substantial compliance with the terms of a Letter of Credit, each
Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of
any notice or information to the contrary, or refuse to accept and make payment
upon such documents if such documents are not in strict compliance with the
terms of such Letter of Credit.

            (g) Disbursement Procedures. Each Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. The Issuing Bank shall promptly
notify the Administrative Agent and the Company by telephone (confirmed by
telecopy) of such demand for payment and whether the

<PAGE>
                                                                              47

Issuing Bank has made or will make an LC Disbursement thereunder; provided that
any failure to give or delay in giving such notice shall not relieve the Company
of its obligation to reimburse the Issuing Bank and the Revolving Lenders with
respect to any such LC Disbursement.

            (h) Interim Interest. If any Issuing Bank shall make any LC
Disbursement, then, unless the Company shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Company reimburses such LC Disbursement,
at the rate per annum then applicable to ABR Revolving Loans; provided that, if
the Company fails to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section, then Section 2.12(c) shall apply. Interest
accrued pursuant to this paragraph shall be for the account of the Issuing Bank,
except that interest accrued on and after the date of payment by any Revolving
Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank
shall be for the account of such Lender to the extent of such payment.

            (i) Replacement of an Issuing Bank. Any Issuing Bank may be replaced
at any time by written agreement among the Company, the Administrative Agent,
the replaced Issuing Bank and the successor Issuing Bank. The Administrative
Agent shall notify the Lenders of any such replacement of an Issuing Bank. At
the time any such replacement shall become effective, the Company shall pay all
unpaid fees accrued for the account of the replaced Issuing Bank pursuant to
Section 2.11(b). From and after the effective date of any such replacement, (i)
the successor Issuing Bank shall have all the rights and obligations of the
Issuing Bank under this Agreement with respect to Letters of Credit to be issued
thereafter and (ii) references herein to the term "Issuing Bank" shall be deemed
to refer to such successor or to any previous Issuing Bank, or to such successor
and all previous Issuing Banks, as the context shall require. After the
replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain
a party hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement with respect to Letters of Credit issued by it
prior to such replacement, but shall not be required to issue additional Letters
of Credit.

            (j) Cash Collateralization. If any Event of Default shall occur and
be continuing, on the Business Day that the Company receives notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Revolving Lenders with LC Exposure representing greater
than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the Company shall deposit in an account with the
Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Lenders, an amount in cash equal to the LC Exposure as of such
date plus any accrued and unpaid interest thereon; provided that the obligation
to deposit such cash collateral shall become effective immediately, and such
deposit shall become immediately due and payable, without demand or other notice
of any kind, upon the occurrence of any Event of Default with respect to the
Company described in clause (h) or (i) of Article VII. The Company also shall
deposit cash collateral pursuant to this paragraph as and to the extent required
by Section 2.10(b) and (c), and any such cash collateral so deposited and held
by the Administrative Agent hereunder shall constitute part of the Borrowing
Base for purposes of determining compliance with Section 2.10(b) and (c). Each
such deposit shall be held by the Administrative Agent as collateral for the
payment and performance of the obligations of the Company under this Agreement.
The Administrative Agent shall have exclusive dominion and control, including
the exclusive right of withdrawal, over such

<PAGE>
                                                                              48

account. Other than any interest earned on the investment of such deposits,
which investments shall be made at the option and sole discretion of the
Administrative Agent and at the Company's risk and expense, such deposits shall
not bear interest. Interest or profits, if any, on such investments shall
accumulate in such account. Moneys in such account shall be applied by the
Administrative Agent to reimburse any Issuing Bank for LC Disbursements for
which it has not been reimbursed and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the Company for
the LC Exposure at such time or, if the maturity of the Loans has been
accelerated (but subject to the consent of Revolving Lenders with LC Exposure
representing greater than 50% of the total LC Exposure), be applied to satisfy
other obligations of the Company under this Agreement. If the Company is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as
aforesaid) shall be returned to the Company within three Business Days after all
Events of Default have been cured or waived. If the Company is required to
provide an amount of cash collateral hereunder pursuant to Section 2.10(b), such
amount (to the extent not applied as aforesaid) shall be returned to the Company
as and to the extent that, after giving effect to such return, the Company would
remain in compliance with Section 2.10(b) and no Default shall have occurred and
be continuing.

            SECTION 2.05. Funding of Borrowings. (a) Each Lender shall make each
Loan to be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds by 1:00 p.m., New York City time, to the account of
the Administrative Agent most recently designated by it for such purpose by
notice to the Lenders. The Administrative Agent will make such Loans available
to the applicable Borrower by promptly crediting the amounts so received, in
like funds, to an account of such Borrower maintained with the Administrative
Agent in New York City and designated by such Borrower in the applicable
Borrowing Request; provided that ABR Revolving Loans made to finance the
reimbursement of an LC Disbursement as provided in Section 2.04(e) shall be
remitted by the Administrative Agent to the applicable Issuing Bank.

            (b) Unless the Administrative Agent shall have received notice from
a Lender prior to any Borrowing that such Lender will not make available to the
Administrative Agent such Lender's share of such Borrowing, the Administrative
Agent may assume that such Lender has made such share available on such date in
accordance with paragraph (a) of this Section and may, in reliance upon such
assumption, make available to the applicable Borrower a corresponding amount. In
such event, if a Lender has not in fact made its share of the applicable
Borrowing available to the Administrative Agent, then the applicable Lender and
the Borrower severally agree to pay to the Administrative Agent forthwith on
demand such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (i) in the case of
such Lender, the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules
on interbank compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans. If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender's Loan included in such
Borrowing.

            SECTION 2.06. Interest Elections. (a) Each Revolving Borrowing and
Term Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an
initial Interest Period as specified in such Borrowing Request. Thereafter, the
applicable Borrower may elect to convert such Borrowing to a different

<PAGE>
                                                                              49

Type or to continue such Borrowing and, in the case of a Eurodollar Borrowing,
may elect Interest Periods therefor, all as provided in this Section. The
Borrower may elect different options with respect to different portions of the
affected Borrowing, in which case each such portion shall be allocated ratably
among the Lenders holding the Loans comprising such Borrowing, and the Loans
comprising each such portion shall be considered a separate Borrowing.

            (b) To make an election pursuant to this Section, the applicable
Borrower shall notify the Administrative Agent of such election by telephone by
the time that a Borrowing Request would be required under Section 2.03 if the
Borrower were requesting a Revolving Borrowing of the Type resulting from such
election to be made on the effective date of such election. Each such telephonic
Interest Election Request shall be irrevocable and shall be confirmed promptly
by hand delivery or telecopy to the Administrative Agent of a written Interest
Election Request in a form approved by the Administrative Agent and signed by
the applicable Borrower.

            (c) Each telephonic and written Interest Election Request shall
specify the following information in compliance with Section 2.02 and paragraph
(f) of this Section:

            (i) the Borrowing to which such Interest Election Request applies
      and, if different options are being elected with respect to different
      portions thereof, the portions thereof to be allocated to each resulting
      Borrowing (in which case the information to be specified pursuant to
      clauses (iii) and (iv) below shall be specified for each resulting
      Borrowing);

            (ii) the effective date of the election made pursuant to such
      Interest Election Request, which shall be a Business Day;

            (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
      Eurodollar Borrowing; and

            (iv) if the resulting Borrowing is a Eurodollar Borrowing, the
      Interest Period to be applicable thereto after giving effect to such
      election, which shall be a period contemplated by the definition of the
      term "Interest Period".

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration.

            (d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender's portion of each resulting Borrowing.

            (e) If the applicable Borrower fails to deliver a timely Interest
Election Request with respect to a Eurodollar Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if
an Event of Default has occurred and is continuing and the Administrative Agent,
at the request of the Required Lenders, so notifies the Borrower, then, so long
as an Event of Default is

<PAGE>
                                                                              50

continuing (i) no outstanding Borrowing may be converted to or continued as a
Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

            SECTION 2.07. Termination and Reduction of Commitments. (a) Unless
previously terminated, (i) the Term Loan Commitments shall permanently terminate
at 5:00 p.m., New York City time, on the Effective Date and (ii) the Revolving
Commitments and the Foreign Borrower Commitments shall permanently terminate on
the Revolving Maturity Date.

            (b) The Company may at any time terminate, or from time to time
reduce, the Revolving Commitments or any Foreign Borrower Commitment; provided
that (i) each reduction of the Revolving Commitments shall be in an amount that
is an integral multiple of $5,000,000 and (ii) the Company shall not terminate
or reduce the Revolving Commitments or any Foreign Borrower Commitment if, after
giving effect to any concurrent prepayment of the Revolving Loans in accordance
with Section 2.10, the sum of the Revolving Exposures would exceed the total
Revolving Commitments.

            (c) The Company shall notify the Administrative Agent of any
election to terminate or reduce the Commitments under paragraph (b) of this
Section, at least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any notice, the Administrative Agent
shall advise the Lenders of the contents thereof. Each notice delivered by the
Company pursuant to this Section shall be irrevocable; provided that a notice of
termination of the Revolving Commitments delivered by the Company may state that
such notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Company (by notice to the
Administrative Agent on or prior to the specified effective date) if such
condition is not satisfied. Any termination or reduction of the Revolving
Commitments shall be permanent. Each reduction of the Revolving Commitments
shall be made ratably among the Lenders in accordance with their respective
Revolving Commitments.

            SECTION 2.08. Repayment of Loans; Evidence of Debt. (a) Each
Borrower hereby unconditionally promises to pay (i) to the Administrative Agent
for the account of each Lender the then unpaid principal amount of each
Revolving Loan of such Lender on the Revolving Maturity Date and (ii) to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Term Loan of such Lender as provided in Section 2.09.

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

            (c) The Administrative Agent shall maintain accounts in which it
shall record (i) the amount of each Loan made hereunder, the Class and Type
thereof and the Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrowers to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder for the account of the Lenders and each
Lender's share thereof.

<PAGE>
                                                                              51

            (d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of any Borrower
to repay the Loans in accordance with the terms of this Agreement.

            (e) Any Lender may request that Loans of any Class made by it be
evidenced by a promissory note. In such event, the applicable Borrower shall
prepare, execute and deliver to such Lender a promissory note payable to the
order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the Administrative Agent and the
Company. Thereafter, the Loans evidenced by such promissory note and interest
thereon shall at all times (including after assignment pursuant to Section 9.04)
be represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).

            SECTION 2.09. Amortization of Term Loans. (a) Subject to adjustment
pursuant to paragraph (d) of this Section, the Company shall repay the Term
Borrowings in 20 consecutive quarterly installments, payable on December 31,
1999 and on each Quarterly Date thereafter, in the quarterly and annual
aggregate principal amounts set forth opposite the applicable period listed
below:

--------------------------------------------------------------------------------
        Period            Quarterly Payment            Annual Amount
        ------            -----------------            -------------
--------------------------------------------------------------------------------
         1999                $3,000,000                 $3,000,000
--------------------------------------------------------------------------------
         2000                 4,000,000                 16,000,000
--------------------------------------------------------------------------------
         2001                 4,500,000                 18,000,000
--------------------------------------------------------------------------------
         2002                 5,000,000                 20,000,000
--------------------------------------------------------------------------------
         2003                 5,500,000                 22,000,000
--------------------------------------------------------------------------------
         2004                 7,000,000                 21,000,000
--------------------------------------------------------------------------------

            (b) To the extent not previously paid, all Term Loans shall be due
and payable on the Term Loan Maturity Date.

            (c) Any prepayment of a Term Borrowing shall be applied to reduce
the subsequent scheduled repayments of the Term Borrowings to be made pursuant
to this Section ratably; provided that any prepayment made pursuant to Section
2.10(a) shall be applied first, to reduce the next scheduled repayment of the
Term Borrowings to be made pursuant to this Section unless and until such next
scheduled repayment has been eliminated as a result of reductions hereunder and
second, ratably.

<PAGE>
                                                                              52

            (d) Prior to any repayment of any Term Borrowings hereunder, the
Company shall select the Borrowing or Borrowings to be repaid and shall notify
the Administrative Agent by telephone (confirmed by telecopy) of such selection
not later than 11:00 a.m., New York City time, three Business Days before the
scheduled date of such repayment. Each repayment of a Borrowing shall be applied
ratably to the Loans included in the repaid Borrowing. Repayments of Term
Borrowings shall be accompanied by accrued interest on the amount repaid.

            SECTION 2.10. Prepayment of Loans. (a) Each Borrower shall have the
right at any time and from time to time to prepay any Borrowing in whole or in
part, in an aggregate amount that is an integral multiple of $5,000,000, subject
to the requirements of this Section.

            (b) In the event and on each occasion that the sum of the Revolving
Exposures exceeds the total Revolving Commitments, the Borrowers shall prepay
Revolving Borrowings (or, if no such Borrowings are outstanding, deposit cash
collateral in an account with the Administrative Agent pursuant to Section
2.04(j)) in an aggregate amount equal to such excess.

            (c) In the event and on each occasion that the sum of the aggregate
outstanding principal amount of all Term Loans and the aggregate Revolving
Exposure exceeds the Borrowing Base, the Borrowers shall prepay Borrowings (or,
if no such Borrowings are outstanding, deposit cash collateral in an account
with the Administrative Agent pursuant to Section 2.04(j)) in an aggregate
amount equal to such excess.

            (d) In the event and on each occasion that any Proceeds are received
by the Company, the Company shall, immediately after such Proceeds are received,
apply such Proceeds to prepay Term Loans until the Term Loans have been paid in
full.

            (e) The Company shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New York City
time, three Business Days before the date of prepayment or (ii) in the case of
prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time,
one Business Day before the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date, the principal amount of each
Borrowing or portion thereof to be prepaid and, in the case of a mandatory
prepayment, a reasonably detailed calculation of the amount of such prepayment;
provided that, if a notice of optional prepayment is given in connection with a
conditional notice of termination of the Revolving Commitments as contemplated
by Section 2.07, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.07. Promptly following
receipt of any such notice, the Administrative Agent shall advise the Lenders of
the contents thereof. Each partial prepayment of any Borrowing shall be in an
aggregate amount that is an integral multiple of $5,000,000, except as necessary
to apply fully the required amount of a mandatory prepayment. Each prepayment of
a Borrowing shall be applied ratably to the Loans included in the prepaid
Borrowing. Prepayments shall be accompanied by accrued interest to the extent
required by Section 2.12.

            SECTION 2.11. Fees. (a) The Company agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee, which
shall accrue at the Applicable Rate on the average daily unused amount of the
Revolving Commitment of such Lender during the

<PAGE>
                                                                              53

period from and including the date of this Agreement to but excluding the date
on which such Revolving Commitment terminates. Accrued commitment fees in
respect of the Revolving Commitments shall be payable in arrears on the last day
of March, June, September and December of each year and on the date on which the
Revolving Commitments terminate, commencing on the first such date to occur
after the Effective Date. All commitment fees shall be computed on the basis of
a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). For purposes of computing
commitment fees with respect to Revolving Commitments, a Revolving Commitment of
a Lender shall be deemed to be used to the extent of the outstanding Revolving
Loans and LC Exposure of such Lender.

            (b) The Company agrees to pay (i) to the Administrative Agent for
the account of each Revolving Lender a participation fee with respect to its
participation in each Letter of Credit, which shall accrue at a per annum rate
equal to the Applicable Rate used to compute interest on Eurodollar Revolving
Loans on the average daily amount of the portion of such Lender's LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
attributable to such Letter of Credit during the period from and including the
date of issuance of such Letter of Credit to but excluding the date on which
such Letter of Credit expires or is drawn in full (but which shall in no event
be less than $500 for the period from and including the date of issuance thereof
to but excluding the date on which it expires or is drawn in full), and (ii) to
each Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per
annum on the average daily amount of the LC Exposure (excluding any portion
thereof attributable to unreimbursed LC Disbursements) during the period from
and including the Effective Date to but excluding the later of the date of
termination of the Revolving Commitments and the date on which there ceases to
be any LC Exposure, as well as each Issuing Bank's standard fees with respect to
the issuance, amendment, renewal or extension of any Letter of Credit or
processing of drawings thereunder. Participation fees and fronting fees accrued
through and including the last day of March, June, September and December of
each year shall be payable on the third Business Day following such last day,
commencing on the first such date to occur after the Effective Date; provided
that all such fees shall be payable on the date on which the Revolving
Commitments terminate and any such fees accruing after the date on which the
Revolving Commitments terminate shall be payable on demand. Any other fees
payable to any Issuing Bank pursuant to this paragraph shall be payable within
10 days after demand. All participation fees and fronting fees shall be computed
on the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

            (c) The Company agrees to pay (or to cause the applicable Foreign
Borrower to pay) (i) to the Administrative Agent for the account of each
Revolving Lender a participation fee (an "Foreign Borrower Participation Fee")
with respect to its obligation under Section 2.01(c) to acquire participations
in Revolving Loans, which shall accrue at the Applicable Rate used to determine
the interest rate applicable to Eurocurrency Revolving Loans on the average
daily amount of such Revolving Lender's Foreign Borrower Exposure (excluding any
portion thereof attributable to Revolving Loans in respect of which such Lender
has made, or is required to have made, payments to the applicable Fronting
Lenders as provided in Section 2.01(d)) during the period from and including the
Effective Date to but excluding the later of the date on which such Lender's
Revolving Commitment terminates and the date on which such Lender ceases to have
any Foreign Borrower Exposure, and (ii) to each Fronting Lender a fronting fee
(an "Foreign Borrower Fronting Fee"), which shall accrue at the rate of .125%
per annum on the daily aggregate

<PAGE>
                                                                              54

outstanding amount of the Revolving Loans made by such Fronting Lender under
Section 2.01(b) during the period from and including the Effective Date to but
excluding the later of the date of termination of the Revolving Commitments and
the date on which there cease to be any Revolving Loans outstanding. Foreign
Borrower Participation Fees and Foreign Borrower Fronting Fees accrued under
this paragraph through and including the last day of March, June, September and
December of each year shall be payable on the third Business Day following such
last day, commencing on the first such date to occur after the Effective Date;
provided that all such Fees shall be payable on the date on which the Revolving
Commitments terminate and any such Fees accruing after the date on which the
Revolving Commitments terminate shall be payable on demand. All Foreign Borrower
Participation Fees and Foreign Borrower Fronting Fees payable under this
paragraph shall be computed on the basis of a year of 360 days and shall be
payable for the actual number of days elapsed (including the first day but
excluding the last day).

            (d) The Company agrees to pay to the Administrative Agent, for its
own account, fees payable in the amounts and at the times separately agreed upon
between the Company and the Administrative Agent.

            (e) The Company agrees to pay to the Administrative Agent, for the
account of each Lender who executes and delivers to the Administrative Agent a
signature page to this amendment and restatement by June 23, 2000, an amendment
fee equal to 0.10% of the outstanding Loans, LC Exposure and unused Commitments
of such Lender prior to the Restatement Effective Date.

            (f) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to any Issuing
Bank, in the case of fees payable to it) for distribution, in the case of
commitment fees and participation fees, to the Lenders entitled thereto. Fees
paid shall not be refundable under any circumstances.

            SECTION 2.12. Interest. (a) The Loans comprising each ABR Borrowing
shall bear interest at the Alternate Base Rate plus the Applicable Rate (except
that the Loans comprising each ABR Borrowing made pursuant to Section 2.01(b)
shall bear interest at the Alternate Base Rate).

            (b) The Loans comprising each Eurodollar Borrowing shall bear
interest at the Adjusted LIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate (except that the Loans comprising each
Eurodollar Borrowing made pursuant to Section 2.01(b) shall bear interest at the
Adjusted LIBO Rate for the Interest Period in effect for such Borrowing).

            (c) Notwithstanding the foregoing, if any principal of or interest
on any Loan or any fee or other amount payable by any Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the
rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Revolving Loans as provided in paragraph (a) of this Section.

<PAGE>
                                                                              55

            (d) Accrued interest on each Loan shall be payable in arrears on
each Interest Payment Date for such Loan and, in the case of Revolving Loans,
upon termination of the Revolving Commitments; provided that (i) interest
accrued pursuant to paragraph (c) of this Section shall be payable on demand,
(ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of an ABR Revolving Loan prior to the end of the Revolving
Availability Period), accrued interest on the principal amount repaid or prepaid
shall be payable on the date of such repayment or prepayment and (iii) in the
event of any conversion of any Eurodollar Loan prior to the end of the current
Interest Period therefor, accrued interest on such Loan shall be payable on the
effective date of such conversion.

            (e) All interest hereunder shall be computed on the basis of a year
of 360 days, except that interest computed by reference to the Alternate Base
Rate at times when the Alternate Base Rate is based on the Prime Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year), and in
each case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate or
Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

            SECTION 2.13. Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

            (a) the Administrative Agent determines (which determination shall
      be conclusive absent manifest error) that adequate and reasonable means do
      not exist for ascertaining the Adjusted LIBO Rate for such Interest
      Period; or

            (b) the Administrative Agent determines that the Adjusted LIBO Rate
      for such Interest Period will not adequately and fairly reflect the cost
      to such Lenders of making or maintaining their Loans included in such
      Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Company and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Company and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing.

            SECTION 2.14. Increased Costs. (a) If any Change in Law shall:

            (i) impose, modify or deem applicable any reserve, special deposit
      or similar requirement against assets of, deposits with or for the account
      of, or credit extended by, any Lender (except any such reserve requirement
      reflected in the Adjusted LIBO Rate) or any Issuing Bank; or

            (ii) impose on any Lender or Issuing Bank or the London interbank
      market any other condition affecting this Agreement or Eurodollar Loans
      made by such Lender or any Letter of Credit or participation therein;

<PAGE>
                                                                              56

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or
Issuing Bank of participating in, issuing or maintaining any Letter of Credit or
to reduce the amount of any sum received or receivable by such Lender or the
Issuing Bank hereunder (whether of principal, interest or otherwise), then the
Company will pay to such Lender or Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender or Issuing Bank, as
the case may be, for such additional costs incurred or reduction suffered.

            (b) If any Lender or Issuing Bank determines that any Change in Law
regarding capital requirements has or would have the effect of reducing the rate
of return on such Lender's or Issuing Bank's capital or on the capital of such
Lender's or Issuing Bank's holding company, if any, as a consequence of this
Agreement or the Loans made by, or participations in Letters of Credit held by,
such Lender, or the Letters of Credit issued by such Issuing Bank, to a level
below that which such Lender or the Issuing Bank or such Lender's or Issuing
Bank's holding company could have achieved but for such Change in Law (taking
into consideration such Lender's or Issuing Bank's policies and the policies of
such Lender's or Issuing Bank's holding company with respect to capital
adequacy), then from time to time the Company will pay to such Lender or Issuing
Bank, as the case may be, such additional amount or amounts as will compensate
such Lender or Issuing Bank or such Lender's or Issuing Bank's holding company
for any such reduction suffered.

            (c) A certificate of a Lender or Issuing Bank setting forth the
amount or amounts necessary to compensate such Lender or Issuing Bank or its
holding company, as the case may be, as specified in paragraph (a) or (b) of
this Section shall be delivered to the Company and shall be conclusive absent
manifest error. The Company shall pay such Lender or Issuing Bank, as the case
may be, the amount shown as due on any such certificate within 10 Business Days
after receipt thereof.

            (d) Failure or delay on the part of any Lender or Issuing Bank to
demand compensation pursuant to this Section shall not constitute a waiver of
such Lender's or Issuing Bank's right to demand such compensation; provided that
the Company shall not be required to compensate a Lender or Issuing Bank
pursuant to this Section for any increased costs or reductions incurred more
than 270 days prior to the date that such Lender or Issuing Bank, as the case
may be, notifies the Company of the Change in Law giving rise to such increased
costs or reductions and of such Lender's or Issuing Bank's intention to claim
compensation therefor; provided further that, if the Change in Law giving rise
to such increased costs or reductions is retroactive, then the 270-day period
referred to above shall be extended to include the period of retroactive effect
thereof.

            SECTION 2.15. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurodollar Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurodollar Loan other than on the last day
of the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Revolving Loan or Term Loan on the date specified in any
notice delivered pursuant hereto (regardless of whether such notice may be
revoked under Section 2.10(e) and is revoked in accordance therewith), (d) the
purchase of participations in any Revolving Loan pursuant to

<PAGE>
                                                                              57

Section 2.01(c), or (e) the assignment of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto as a result of a request by
the applicable Borrower pursuant to Section 2.18, then, in any such event, the
applicable Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Loan, such loss, cost or
expense to any Lender shall be deemed to include an amount determined by such
Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Loan had such event not occurred, at the
Adjusted LIBO Rate that would have been applicable to such Loan, for the period
from the date of such event to the last day of the then current Interest Period
therefor (or, in the case of a failure to borrow, convert or continue, for the
period that would have been the Interest Period for such Loan), over (ii) the
amount of interest which would accrue on such principal amount for such period
at the interest rate which such Lender would bid were it to bid, at the
commencement of such period, for dollar deposits of a comparable amount and
period from other banks in the eurodollar market. A certificate of any Lender
setting forth any amount or amounts that such Lender is entitled to receive
pursuant to this Section shall be delivered to the applicable Borrower and shall
be conclusive absent manifest error. The applicable Borrower shall pay such
Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

            SECTION 2.16. Taxes. (a) Any and all payments by or on account of
any obligation of any Loan Party hereunder or under any other Loan Document
shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; provided that if any Loan Party shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent, Lender or Issuing Bank (as the case may be) receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) such Loan Party
shall pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

            (b) In addition, the Company shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

            (c) The Company shall indemnify the Administrative Agent, each
Lender and each Issuing Bank, within 10 Business Days after written demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by
the Administrative Agent, such Lender or Issuing Bank, as the case may be, on or
with respect to any payment by or on account of any obligation of any Loan Party
hereunder or under any other Loan Document (including Indemnified Taxes or Other
Taxes imposed or asserted on or attributable to amounts payable under this
Section) and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered
to the Company by a Lender or the Issuing Bank, or by the Administrative Agent
on its own behalf or on behalf of a Lender or Issuing Bank, shall be conclusive
absent manifest error.

            (d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Borrower to a Governmental Authority, the Company shall
deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental

<PAGE>
                                                                              58

Authority evidencing such payment, a copy of the return reporting such payment
or other evidence of such payment reasonably satisfactory to the Administrative
Agent.

            (e) Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which a
Borrower is located, or any treaty to which such jurisdiction is a party, with
respect to payments under this Agreement shall deliver to the Borrower (with a
copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed documentation prescribed by applicable
law or reasonably requested by the Borrower as will permit such payments to be
made without withholding or at a reduced rate, provided that such Foreign Lender
has received written notice from the Borrower advising it of the availability of
such exemption or reduction and supplying all applicable documentation.

            SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of
Set-offs. (a) Each Borrower shall make each payment required to be made by it
hereunder or under any other Loan Document (whether of principal, interest, fees
or reimbursement of LC Disbursements, or of amounts payable under Section 2.14,
2.15 or 2.16, or otherwise) prior to the time expressly required hereunder or
under such other Loan Document for such payment (or, if no such time is
expressly required, prior to 12:00 noon, New York City time), on the date when
due, in immediately available funds, without set-off or counterclaim. Any
amounts received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at 270 Park Avenue, New
York, New York, except payments to be made directly to an Issuing Bank as
expressly provided herein and except that payments pursuant to Sections 2.14,
2.15, 2.16 and 9.03 shall be made directly to the Persons entitled thereto and
payments pursuant to other Loan Documents shall be made to the Persons specified
therein. The Administrative Agent shall distribute any such payments received by
it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment under any Loan Document shall be due
on a day that is not a Business Day, the date for payment shall be extended to
the next succeeding Business Day, and, in the case of any payment accruing
interest, interest thereon shall be payable for the period of such extension.
All payments under each Loan Document shall be made in dollars.

            (b) If at any time insufficient funds are received by and available
to the Administrative Agent to pay fully all amounts of principal, unreimbursed
LC Disbursements, interest and fees then due hereunder, such funds shall be
applied (i) first, towards payment of interest and fees then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
interest and fees then due to such parties, and (ii) second, towards payment of
principal and unreimbursed LC Disbursements then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties.

            (c) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans (other than Revolving Loans made pursuant
to Section 2.01(b)), Term Loans, participations in LC Disbursements or in
participations in Revolving Loans made by Fronting Lenders resulting in such
Lender receiving payment of a greater proportion of the aggregate amount of its
Revolving Loans

<PAGE>
                                                                              59

(other than Revolving Loans made pursuant to Section 2.01(b)), Term Loans,
participations in LC Disbursements or in participations in Revolving Loans made
by Fronting Lenders and accrued interest thereon than the proportion received by
any other Lender, then the Lender receiving such greater proportion shall
purchase (for cash at face value) participations in the Revolving Loans (other
than Revolving Loans made pursuant to Section 2.01(b)), Term Loans,
participations in LC Disbursements of other Lenders or in participations in
Revolving Loans made by Fronting Lenders to the extent necessary so that the
benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Revolving Loans (other than Revolving Loans made pursuant to
Section 2.01(b)), Term Loans, participations in LC Disbursements or in
participations in Revolving Loans made by Fronting Lenders; provided that (i) if
any such participations are purchased and all or any portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest, and
(ii) the provisions of this paragraph shall not be construed to apply to any
payment made by a Borrower pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in LC Disbursements to any assignee or participant, other than to the Borrower
or any Subsidiary or Affiliate thereof (as to which the provisions of this
paragraph shall apply). Each Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against such Borrower rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Borrower
in the amount of such participation.

            (d) Unless the Administrative Agent shall have received notice from
a Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or the Issuing Banks hereunder that such
Borrower will not make such payment, the Administrative Agent may assume that
such Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the Issuing
Banks, as the case may be, the amount due. In such event, if such Borrower has
not in fact made such payment, then each of the Lenders or the Issuing Banks, as
the case may be, severally agrees to repay to the Administrative Agent forthwith
on demand the amount so distributed to such Lender or Issuing Bank with interest
thereon, for each day from and including the date such amount is distributed to
it to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation.

            (e) If any Lender shall fail to make any payment required to be made
by it pursuant to Section 2.04(c), 2.04(d) or (e), 2.05(b), 2.17(d) or 9.03(c),
then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender's
obligations under such Sections until all such unsatisfied obligations are fully
paid.

            SECTION 2.18. Mitigation Obligations; Replacement of Lenders. (a) If
any Lender requests compensation under Section 2.14, or if a Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.16, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations

<PAGE>
                                                                              60

hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.14 or 2.16, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrowers
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

            (b) If any Lender requests compensation under Section 2.14, or if a
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement to
an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the Borrower
shall have received the prior written consent of the Administrative Agent (and,
if a Revolving Commitment is being assigned, the Issuing Bank), which consent
shall not unreasonably be withheld, (ii) such Lender shall have received payment
of an amount equal to the outstanding principal of its Loans and participations
in LC Disbursements, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Borrowers (in the
case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.14 or payments required
to be made pursuant to Section 2.16, such assignment will result in a material
reduction in such compensation or payments. A Lender shall not be required to
make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

            SECTION 2.19. Borrowing Subsidiaries. On or after the Effective
Date, the Company may designate any Restricted Subsidiary of the Company as a
Borrowing Subsidiary by delivery to the Administrative Agent of a Borrowing
Subsidiary Agreement executed by such Restricted Subsidiary and the Company, and
upon such delivery such Restricted Subsidiary shall for all purposes of this
Agreement be a Borrowing Subsidiary and a party to this Agreement until the
Company shall have executed and delivered to the Administrative Agent a
Borrowing Subsidiary Termination with respect to such Restricted Subsidiary,
whereupon such Restricted Subsidiary shall cease to be a Borrowing Subsidiary
and a party to this Agreement. Notwithstanding the preceding sentence, no
Borrowing Subsidiary Termination will become effective as to any Borrowing
Subsidiary at a time when any principal of or interest on any Revolving Loan to
such Borrowing Subsidiary or any Letter of Credit issued for the account of such
Borrowing Subsidiary shall be outstanding hereunder; provided that such
Borrowing Subsidiary Termination shall be effective to terminate such Borrowing
Subsidiary's right to make further Borrowings or to request Letters of Credit
under this Agreement. As soon as practicable upon receipt of a Borrowing
Subsidiary Agreement, the Administrative Agent shall send a copy thereof to each
Lender.

<PAGE>
                                                                              61

                                   ARTICLE III

                         Representations and Warranties

              Each Borrower represents and warrants to the Lenders:

            SECTION 3.01. Organization; Powers. Each of the Borrower and its
Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required.

            SECTION 3.02. Authorization; Enforceability. The Transactions to be
entered into by each Loan Party are within such Loan Party's corporate powers
and have been duly authorized by all necessary corporate and, if required,
stockholder action. This Agreement has been duly executed and delivered by the
Borrowers and constitutes, and each other Loan Document to which any Loan Party
is to be a party, when executed and delivered by such Loan Party, will
constitute, a legal, valid and binding obligation of the Borrowers or such Loan
Party (as the case may be), enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting creditors' rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

            SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions
(a) do not require any consent or approval of, registration or filing with, or
any other action by, any Governmental Authority, except (i) such as have been
obtained or made and are in full force and effect, (ii) filings necessary to
perfect Liens created under the Loan Documents and (iii) those the failure to
obtain or make which, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, (b) will not violate any
applicable law or regulation or the charter, by-laws or other organizational
documents of the Company or any of its Subsidiaries or any order of any
Governmental Authority, (c) will not violate or result in a default under any
indenture, material agreement or other material instrument binding upon the
Company or any of its Subsidiaries or its assets, or give rise to a right
thereunder to require any payment to be made by the Company or any of its
Subsidiaries and (d) will not result in the creation or imposition of any Lien
on any asset of the Company or any of its Subsidiaries, except Liens created
under the Loan Documents.

            SECTION 3.04. Financial Condition; No Material Adverse Change. (a)
The Company has heretofore furnished to the Lenders its consolidated balance
sheet and statements of income, stockholders equity and cash flows (i) as of and
for the fiscal year ended December 31, 1999, reported on by KPMG LLP,
independent certified public accountants, and (ii) as of and for the fiscal
quarter and the portion of the current fiscal year ended March 31, 2000,
certified by its chief financial officer. Such financial statements present
fairly, in all material respects, the financial position and results of
operations and cash flows of the Company and its consolidated Subsidiaries as of
such dates and for such periods in accordance with GAAP, subject to year-end

<PAGE>
                                                                              62

audit adjustments and the absence of footnotes in the case of the statements
referred to in clause (ii) above.

            (b) Except as disclosed in the financial statements referred to
above or the notes thereto or in the Information Memorandum and except for the
Disclosed Matters, after giving effect to the Transactions, none of the Company
or its Subsidiaries has, as of the Effective Date, any material contingent
liabilities, unusual long-term commitments or unrealized losses.

            (c) Since December 31, 1999, there has been no Material Adverse
Effect.

            SECTION 3.05. Properties. (a) Each of the Company and its
Subsidiaries has good title to, or valid leasehold interests in, all its real
and personal property material to its business (including its Mortgaged
Properties), except for minor defects in title that (i) do not interfere with
its ability to conduct its business as currently conducted or to utilize such
properties for their intended purposes and (ii) individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

            (b) Each of the Company and its Subsidiaries owns, or is licensed to
use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Company and its
Subsidiaries does not infringe upon the rights of any other Person, except for
any such infringements that, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

            (c) Schedule 3.05 sets forth the address of each real property that
is owned or leased by the Company or any of its Subsidiaries as of the Effective
Date after giving effect to the Transactions.

            SECTION 3.06. Litigation and Environmental Matters. (a) There are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Company, threatened
against or affecting the Company or any of its Subsidiaries (i) as to which
there is a reasonable possibility of an adverse determination and that, if
adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect (other than the Disclosed
Matters) or (ii) that involve any of the Loan Documents or the Transactions.

            (b) Except for the Disclosed Matters and except with respect to any
other matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, neither the Company nor any of
its Subsidiaries (i) has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required
under any Environmental Law, (ii) has become subject to any Environmental
Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

            (c) Since the date of this Agreement, there has been no change in
the status of the Disclosed Matters that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

<PAGE>
                                                                              63

            SECTION 3.07. Compliance with Laws and Agreements. Each of the
Company and its Subsidiaries is in compliance with all laws, regulations and
orders of any Governmental Authority applicable to it or its property and all
indentures, material agreements and other instruments binding upon it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. No
Default has occurred and is continuing.

            SECTION 3.08. Investment and Holding Company Status. Neither the
Company nor any of its Subsidiaries is (a) an "investment company" as defined
in, or subject to regulation under, the Investment Company Act of 1940 or (b) a
"holding company" as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

            SECTION 3.09. Taxes. Each of the Company and its Subsidiaries has
timely filed or caused to be filed all Tax returns and reports required to have
been filed and has paid or caused to be paid all Taxes required to have been
paid by it, except (a) any Taxes that are being contested in good faith by
appropriate proceedings and for which the Company or such Subsidiary, as
applicable, has set aside on its books adequate reserves or (b) to the extent
that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect.

            SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes
of Statement of Financial Accounting Standards No. 87) did not, as of the date
of the most recent financial statements reflecting such amounts, exceed by more
than $5,000,000 the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $15,000,000 the fair
market value of the assets of all such underfunded Plans.

            SECTION 3.11. Disclosure. The Company has disclosed to the Lenders
all agreements, instruments and corporate or other restrictions to which the
Company or any of its Subsidiaries is subject, and all other matters known to
any of them, that, individually or in the aggregate, could reasonably be
expected to result in a Material Adverse Effect. Neither the Information
Memorandum nor any of the other reports, financial statements, certificates or
other information furnished by or on behalf of any Loan Party to the
Administrative Agent or any Lender in connection with the negotiation of this
Agreement or any other Loan Document or delivered hereunder or thereunder (as
modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to
make the statements therein, taken as a whole, in the light of the circumstances
under which they were made, not misleading; provided that, with respect to
projected financial information, the Borrowers represent only that such
information was prepared in good faith based upon assumptions believed to be
reasonable at the time.

<PAGE>
                                                                              64

            SECTION 3.12. Subsidiaries. Schedule 3.12 sets forth the name of,
and the ownership interest of the Company in, each Subsidiary of the Company and
identifies each Subsidiary that is a Subsidiary Loan Party, in each case as of
the Effective Date.

            SECTION 3.13. Insurance. Schedule 3.13 sets forth a description of
all insurance maintained by or on behalf of the Company and its Subsidiaries as
of the Effective Date. As of the Effective Date, all premiums in respect of such
insurance have been paid. The Company believes that the insurance maintained by
or on behalf of the Company and its Subsidiaries is adequate.

            SECTION 3.14. Labor Matters. As of the Effective Date, there are no
strikes, lockouts or slowdowns against the Company or any Subsidiary pending or,
to the knowledge of the Company, threatened. The hours worked by and payments
made to employees of the Company and the Subsidiaries have not been in violation
of the Fair Labor Standards Act or any other applicable Federal, state, local or
foreign law dealing with such matters. All payments due from the Company or any
Subsidiary, or for which any claim may be made against the Company or any
Subsidiary, on account of wages and employee health and welfare insurance and
other benefits, have been paid or accrued as a liability on the books of the
Company or such Subsidiary. The consummation of the Transactions will not give
rise to any right of termination or right of renegotiation on the part of any
union under any collective bargaining agreement to which the Company or any
Subsidiary is bound.

            SECTION 3.15. Solvency. Immediately after the consummation of the
Transactions to occur on the Effective Date and immediately following the making
of each Loan made on the Effective Date and after giving effect to the
application of the proceeds of such Loans, (a) the fair value of the assets of
each Loan Party, at a fair valuation, will exceed its debts and liabilities,
subordinated, contingent or otherwise; (b) the present fair saleable value of
the property of each Loan Party will be greater than the amount that will be
required to pay the probable liability of its debts and other liabilities,
subordinated, contingent or otherwise, as such debts and other liabilities
become absolute and matured; (c) each Loan Party will be able to pay its debts
and liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; and (d) each Loan Party will not have
unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be conducted
following the Effective Date.

            SECTION 3.16. Senior Indebtedness. The Obligations will constitute
Senior Debt under and as defined in the Subordinated Note Indenture.

            SECTION 3.17. Year 2000. Any reprogramming required to permit the
proper functioning, in and following the year 2000, of (a) the computer systems
of the Company and its Subsidiaries and (b) equipment containing embedded
microchips (including systems and equipment supplied by others or with which the
Company's systems interface) and the testing of all such systems and equipment,
as so reprogrammed, will be completed by September 30, 1999, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. The cost to the Company and its
Subsidiaries of such reprogramming and testing and of the reasonably foreseeable
consequences of year 2000 to the Company and its Subsidiaries (including
reprogramming errors and the failure of others'

<PAGE>
                                                                              65

systems or equipment) will not result in a Default or a Material Adverse Effect.
Except for such of the reprogramming referred to in the preceding sentence as
may be necessary, the computer and management information systems of the Company
and its Subsidiaries are and, with ordinary course upgrading and maintenance,
will continue for the term of this Agreement to be, sufficient to permit the
Company to conduct its businesses without Material Adverse Effect.

            SECTION 3.18. Intellectual Property. The Company and each of its
Subsidiary owns, or is licensed to use, all patents, trademarks, tradenames,
service marks, copyrights, technology, know-how and processes (together with all
applications therefor and licenses granting rights therein, "Intellectual
Property") reasonably necessary for the conduct of its business as currently
conducted, except for those the failure to own or be licensed to use which could
not reasonably be expected to result in a Material Adverse Effect. To the
knowledge of the Company, (a) the use of Intellectual Property by the Company
and its Subsidiaries does not infringe on the rights of any person, (b) no
Intellectual Property of the Company or any of its Subsidiaries is being
infringed upon by any Person, and (c) no claim is pending or threatened in
writing challenging the use or the validity of any Intellectual Property of the
Company or any Subsidiary, except for infringements and claims referred to in
the foregoing clauses (a), (b) and (c) that, in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

            The representations and warranties made by the Borrowers on the
Effective Date under the Original Credit Agreement shall survive for all
purposes regardless of the changes effected by this amendment and restatement.

                                   ARTICLE IV

                                   Conditions

            SECTION 4.01. Restatement Effective Date. The amendment and
restatement of the Original Credit Agreement effected hereby and the obligations
of the Lenders to make Loans and of the Issuing Banks to issue Letters of Credit
hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 9.02):

            (a) The Administrative Agent (or its counsel) shall have received
      from the Company and Lenders constituting the Required Lenders either (i)
      a counterpart of this Agreement signed on behalf of such party or (ii)
      written evidence satisfactory to the Administrative Agent (which may
      include telecopy transmission of a signed signature page of this
      Agreement) that such party has signed a counterpart of this Agreement.

            (b) The Administrative Agent shall have received a favorable written
      opinion (addressed to the Administrative Agent, the Collateral Agent, the
      Documentation Agent, the Issuing Banks and the Lenders and dated the
      Restatement Effective Date) of Bracewell & Patterson, L.L.P., counsel for
      the Company, covering such other matters relating to the Loan Parties, the
      Loan Documents or the Transactions as the Administrative

<PAGE>
                                                                              66

      Agent shall reasonably request. The Company hereby requests such counsel
      to deliver such opinion.

            (c) The Administrative Agent shall have received such documents and
      certificates as the Administrative Agent or its counsel may reasonably
      request relating to the organization, existence and good standing of each
      Loan Party, the authorization of the Transactions and any other legal
      matters relating to the Loan Parties, the Loan Documents or the
      Transactions, all in form and substance satisfactory to the Administrative
      Agent and its counsel.

            (d) The Administrative Agent shall have received a certificate,
      dated the Restatement Effective Date and signed by the President, a Vice
      President or a Financial Officer of the Company, confirming compliance
      with the conditions set forth in paragraphs (a) and (b) of Section 4.02.

            (e) The Administrative Agent shall have received all fees and other
      amounts due and payable on or prior to the Restatement Effective Date,
      including, to the extent invoiced, reimbursement or payment of all
      out-of-pocket expenses (including reasonable fees, charges and
      disbursements of counsel) required to be reimbursed or paid by any Loan
      Party hereunder or under any other Loan Document.

            (f) The Collateral and Guarantee Requirement shall have been
      satisfied on the Effective Date and shall continue to be satisfied as of
      the Restatement Effective Date.

            (g) The Administrative Agent shall have received a completed
      Borrowing Base Certificate as of May 31, 2000, dated the Restatement
      Effective Date and signed by a Financial Officer of the Company.

The Administrative Agent shall notify the Company and the Lenders of the
Restatement Effective Date, and such notice shall be conclusive and binding.

            SECTION 4.02. Each Credit Event. The obligation of each Lender to
make a Loan on the occasion of any Borrowing, and of the Issuing Banks to issue,
amend, renew or extend any Letter of Credit, is subject to receipt of the
request therefor in accordance herewith and to the satisfaction of the following
conditions:

            (a) The representations and warranties of each Loan Party set forth
      in the Loan Documents shall be true and correct in all material respects
      on and as of the date of such Borrowing or the date of issuance,
      amendment, renewal or extension of such Letter of Credit, as applicable.

            (b) At the time of and immediately after giving effect to such
      Borrowing or the issuance, amendment, renewal or extension of such Letter
      of Credit, as applicable, no Default shall have occurred and be
      continuing.

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                                                                              67

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Borrowers on the date thereof as to the matters specified in paragraphs (a) and
(b) of this Section.

            SECTION 4.03. Initial Credit Event for each Borrowing Subsidiary.
The obligation of the Lenders to make Loans to any Borrowing Subsidiary and the
obligations of the Issuing Banks to issue Letters of Credit for the account of
any Borrowing Subsidiary are subject to the satisfaction of the following
conditions:

            (a) The Administrative Agent (or its counsel) shall have received a
      Borrowing Subsidiary Agreement duly executed by such Borrowing Subsidiary
      and the other parties thereto.

            (b) The Administrative Agent shall have received a favorable written
      opinion of counsel for such Borrowing Subsidiary, substantially in the
      form of Exhibit B-2 and covering such other matters relating to such
      Borrowing Subsidiary and its Borrowing Subsidiary Agreement as the
      Administrative Agent shall reasonably request.

            (c) The Administrative Agent shall have received such documents and
      certificates as the Administrative Agent or its counsel may reasonably
      request relating to the organization, existence and good standing of such
      Borrowing Subsidiary, the authorization of the Transactions insofar as
      they relate to such Borrowing Subsidiary, the satisfaction of the
      Collateral and Guarantee Requirement insofar as it relates to the assets
      of such Borrowing Subsidiary and any other legal matters relating to such
      Borrowing Subsidiary, its Borrowing Subsidiary Agreement or such
      Transactions, all in form and substance satisfactory to the Administrative
      Agent and its counsel.

                                    ARTICLE V

                              Affirmative Covenants

            Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full and all Letters of Credit shall have expired or terminated and
all LC Disbursements shall have been reimbursed, each Borrower covenants and
agrees with the Lenders that:

            SECTION 5.01. Financial Statements and Other Information. The
Company will furnish to the Administrative Agent and each Lender:

            (a) within 90 days after the end of each fiscal year of the Company,
      audited consolidated balance sheets and related statements of operations,
      stockholders' equity and cash flows as of the end of and for such year,
      setting forth in each case in comparative form the figures for the
      previous fiscal year, of (i) the Company and the consolidated Subsidiaries
      and (ii) the Company and the Restricted Subsidiaries as of the end of such
      year, all reported on by KPMG LLP or other independent public accountants
      of recognized national standing (without a "going concern" or like
      qualification or exception

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                                                                              68

      and without any qualification or exception as to the scope of such audit)
      to the effect that such consolidated financial statements present fairly
      in all material respects the financial condition and results of operations
      of the Company and the consolidated Subsidiaries or the Company and the
      consolidated Restricted Subsidiaries, as applicable, on a consolidated
      basis in accordance with GAAP consistently applied;

            (b) within 45 days after the end of each of the first three fiscal
      quarters of each fiscal year of the Company, the consolidated balance
      sheets and related statements of operations, stockholders' equity and cash
      flows as of the end of and for such fiscal quarter and the then elapsed
      portion of the fiscal year, setting forth in each case in comparative form
      the figures for the previous fiscal year, of (i) the Company and the
      consolidated Subsidiaries and (ii) the Company and the Restricted
      Subsidiaries, all certified by one of the Company's Financial Officers as
      presenting fairly in all material respects the financial condition and
      results of operations of the Company and the consolidated Subsidiaries or
      the Company and the consolidated Restricted Subsidiaries, as applicable,
      on a consolidated basis in accordance with GAAP consistently applied,
      subject to normal year-end audit adjustments and the absence of footnotes;

            (c) concurrently with any delivery of financial statements under
      clause (a) or (b) above, a certificate of a Financial Officer of the
      Company (i) certifying as to whether a Default has occurred and, if a
      Default has occurred, specifying the details thereof and any action taken
      or proposed to be taken with respect thereto, (ii) setting forth
      reasonably detailed calculations demonstrating compliance with Sections
      6.13, 6.14, 6.15, 6.16 and 6.17 and (iii) stating whether any change in
      GAAP or in the application thereof has occurred since the date of the
      Company's audited financial statements referred to in Section 3.04 and, if
      any such change has occurred, specifying the effect of such change on the
      financial statements accompanying such certificate;

            (d) concurrently with any delivery of financial statements under
      clause (a) above, any management letter delivered to the management of the
      Company by the accounting firm that reported on such financial statements;

            (e) within 10 days after the end of each calendar month, (i) a
      completed Borrowing Base Certificate calculating and certifying the
      Borrowing Base as of the last day of such calendar month, certified as
      complete and correct and signed on behalf of the Company by a Financial
      Officer, and (ii) such other supporting documentation and additional
      reports with respect to the Borrowing Base as the Administrative Agent
      shall reasonably request;

            (f) promptly after the same become publicly available, copies of all
      periodic and other reports, proxy statements and other materials filed by
      the Company or any Subsidiary with the Securities and Exchange Commission,
      or any Governmental Authority succeeding to any or all of the functions of
      said Commission, or with any national securities exchange, or distributed
      by the Company to its shareholders generally, as the case may be; and

            (g) promptly following any request therefor, such other information
      regarding the operations, business affairs and financial condition of the
      Company or any Subsidiary, or

<PAGE>
                                                                              69

      compliance with the terms of any Loan Document, as the Administrative
      Agent or any Lender may reasonably request.

            SECTION 5.02. Notices of Material Events. The Company will furnish
to the Administrative Agent and each Lender prompt written notice of the
following:

            (a) the occurrence of any Default;

            (b) the filing or commencement of any action, suit or proceeding by
      or before any arbitrator or Governmental Authority against or affecting
      the Company or any Affiliate thereof that, if adversely determined, could
      reasonably be expected to result in a Material Adverse Effect;

            (c) the occurrence of any ERISA Event that, alone or together with
      any other ERISA Events that have occurred, could reasonably be expected to
      result in liability of the Company and its Subsidiaries in an aggregate
      amount exceeding $5,000,000;

            (d) the occurrence of any event or any other development by which
      the Company or any of its Subsidiaries (i) fails to comply with any
      Environmental Law or to obtain, maintain or comply with any permit,
      license or other approval required under any Environmental Law, (ii)
      becomes subject to any Environmental Liability, (iii) receives notice of
      any claim with respect to any Environmental Liability or (iv) becomes
      aware of any basis for any Environmental Liability and in each of the
      preceding clauses, which individually or in the aggregate, could
      reasonably be expected to result in a Material Adverse Effect; and

            (e) any other development (including the termination of any material
      contract) that results in, or could reasonably be expected to result in, a
      Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Company setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.

            SECTION 5.03. Information Regarding Collateral. (a) The Company will
furnish to the Administrative Agent prompt written notice of any change (i) in
any Loan Party's corporate name or in any trade name used to identify it in the
conduct of its business or in the ownership of its properties, (ii) in the
location of any Loan Party's chief executive office, its principal place of
business, any office in which it maintains books or records relating to
Collateral owned by it or any office or facility at which Collateral owned by it
is located (including the establishment of any such new office or facility),
(iii) in any Loan Party's identity or corporate structure or (iv) in any Loan
Party's Federal Taxpayer Identification Number. The Company agrees not to effect
or permit any change referred to in the preceding sentence unless all filings
have been made under the UCC or otherwise that are required in order for the
Administrative Agent to continue at all times following such change to have a
valid, legal and perfected security interest in all the Collateral. The Company
also agrees promptly to notify the Administrative Agent if any material portion
of the Collateral is damaged or destroyed.

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                                                                              70

            (b) Each year, at the time of delivery of annual financial
statements with respect to the preceding fiscal year pursuant to clause (a) of
Section 5.01, the Company shall deliver to the Administrative Agent a
certificate of a Financial Officer and the chief legal officer of the Company
(i) setting forth the information required pursuant to Section 1 of the
Perfection Certificate or confirming that there has been no change in such
information since the date of the Perfection Certificate delivered on the
Effective Date or the date of the most recent certificate delivered pursuant to
this Section and (ii) certifying that all UCC financing statements (including
fixture filings, as applicable) or other appropriate filings, recordings or
registrations, including all refilings, rerecordings and reregistrations,
containing a description of the Collateral have been filed of record in each
governmental, municipal or other appropriate office in each jurisdiction
identified pursuant to clause (i) above to the extent necessary to protect and
perfect the security interests under the Security Documents for a period of not
less than 18 months after the date of such certificate (except as noted therein
with respect to any continuation statements to be filed within such period).

            SECTION 5.04. Existence; Conduct of Business. The Company will, and
will cause each of its Subsidiaries to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges, franchises, patents,
copyrights, trademarks and trade names material to the conduct of its business,
except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect; provided that the
foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03.

            SECTION 5.05. Payment of Obligations. The Company will, and will
cause each of its Subsidiaries to, pay its Indebtedness and other obligations,
including Tax liabilities, before the same shall become delinquent or in
default, except where (a) the validity or amount thereof is being contested in
good faith by appropriate proceedings, (b) the Company or such Subsidiary has
set aside on its books adequate reserves with respect thereto in accordance with
GAAP, (c) such contest effectively suspends collection of the contested
obligation and the enforcement of any Lien securing such obligation and (d) the
failure to make payment pending such contest could not reasonably be expected to
result in a Material Adverse Effect.

            SECTION 5.06. Maintenance of Properties. The Company will, and will
cause each of its Subsidiaries to, keep and maintain all property material to
the conduct of its business in good working order and condition, ordinary wear
and tear excepted, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

            SECTION 5.07. Insurance. The Company will, and will cause each of
its Subsidiaries to, maintain, with financially sound and reputable insurance
companies (a) insurance in such amounts (with no greater risk retention) and
against such risks as are customarily maintained by companies of established
repute engaged in the same or similar businesses operating in the same or
similar locations and (b) all insurance required to be maintained pursuant to
the Security Documents. The Company will furnish to the Lenders, upon request of
the Administrative Agent, information in reasonable detail as to the insurance
so maintained.

<PAGE>
                                                                              71

            SECTION 5.08. Books and Records; Inspection and Audit Rights. (a)
The Company will, and will cause each of its Subsidiaries to, keep proper books
of record and account in which full, true and correct entries are made of all
material dealings and transactions in relation to its business and activities.
The Company will, and will cause each of its Subsidiaries to, permit any
representatives designated by the Administrative Agent or any Lender, upon
reasonable prior notice, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances
and condition with its officers and independent accountants, all at such
reasonable times and as often as reasonably requested.

            (b) The Company will, and will cause each of its Subsidiaries to,
permit any representatives designated by the Administrative Agent (including any
consultants, accountants, lawyers and appraisers retained by the Administrative
Agent) to conduct evaluations and appraisals of the Company's computation of the
Borrowing Base and the assets included in the Borrowing Base, all at such
reasonable times and as often as reasonably requested; provided that, if no
Default shall have occurred and be continuing, no more than one such evaluation
will be requested by the Administrative Agent during any fiscal year. The
Company agrees that an evaluation of the Borrowing Base will be initiated by the
Administrative Agent within six weeks of the Restatement Effective Date. The
Company shall pay the reasonable fees and expenses of any representatives
retained by the Administrative Agent to conduct any such evaluation or
appraisal. The Company also agrees to modify or adjust the computation of the
Borrowing Base (which may include maintaining additional reserves or changing
the definitions of or modifying the eligibility criteria for the components of
the Borrowing Base) to the extent required by the Administrative Agent or the
Required Lenders as a result of any such evaluation or appraisal, in each case
with the consent of the Company (such consent not to be unreasonably withheld).

            SECTION 5.09. Compliance with Laws. The Company will, and will cause
each of its Subsidiaries to, comply with all laws, rules, regulations and orders
of any Governmental Authority (including Environmental Laws) applicable to it or
its property, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

            SECTION 5.10. Use of Proceeds and Letters of Credit. The proceeds of
the Borrowings hereunder will be used only for the purposes set forth in the
preamble to this Agreement. No part of the proceeds of any Loan will be used,
whether directly or indirectly, for any purpose that entails a violation of any
of the Regulations of the Board, including Regulations U and X.

            SECTION 5.11. Additional Subsidiaries. If any additional Subsidiary
is formed or acquired after the Effective Date, the Company will, at least five
Business Days before such Subsidiary is formed or acquired, notify the
Administrative Agent and the Lenders thereof and cause the Collateral and
Guarantee Requirement to be satisfied (to the extent applicable) with respect to
such Subsidiary and with respect to any Equity Interest in or Indebtedness of
such Subsidiary owned or to be owned by or on behalf of the Company or any other
Subsidiary.

            SECTION 5.12. Further Assurances. The Company will, and will cause
each Subsidiary to, execute any and all further documents, financing statements,
agreements and instruments, and take all such further actions (including the
filing and recording of financing

<PAGE>
72

statements, fixture filings, mortgages, deeds of trust and other documents),
which may be required under any applicable law, or which the Administrative
Agent or the Required Lenders may reasonably request, to cause the Collateral
and Guarantee Requirement to be and remain satisfied, all at the expense of the
Loan Parties. The Company also agrees to provide to the Administrative Agent
from time to time upon request evidence reasonably satisfactory to the
Administrative Agent as to the perfection and priority of the Liens created or
intended to be created by the Security Documents.

            SECTION 5.13. Interest Rate and Currency Exchange Rate Protection.
As promptly as practicable, and in any event within 60 days after the Effective
Date, the Company will enter into, and thereafter for a period of not less than
four years will maintain in effect, one or more interest rate protection
agreements on such terms and with such parties as shall be reasonably
satisfactory to the Administrative Agent, the effect of which shall be to fix or
limit the interest cost to the Company with respect to at least 50% of the Term
Loans outstanding from time to time. The Company will also identify currency
exchange rate risks to which the Company and the Subsidiaries are subject from
time to time and enter into one or more exchange rate protection agreements, on
such terms and with such parties as shall be reasonably satisfactory to the
Administrative Agent, to limit such risks. Without limiting the foregoing, in
the event the Company shall use the proceeds of any Borrowing hereunder to make
a loan or advance to any Foreign Subsidiary, such loan or advance will be
denominated in the currency of the jurisdiction in which such Subsidiary has its
principal operations and the Company will enter into one or more exchange rate
protection agreements, on such terms and with such parties as shall be
reasonably satisfactory to the Administrative Agent, to limit the exchange rate
risk to the Company associated with such loan or advance.

            SECTION 5.14. Ownership of Subsidiaries. (a) The Company will, and
will cause each of the Subsidiaries to, ensure that all Equity Interests in
Domestic Subsidiaries are owned directly or indirectly at all times only by the
Company or one or more other Domestic Subsidiaries and that all the Equity
Interests of such latter Domestic Subsidiaries are pledged to secure the
Obligations.

            (b) As promptly as practicable, and in any event within 30 days
after the Effective Date, the Company will, and will cause each of its
Subsidiaries to, ensure that any Foreign Subsidiary (including each Foreign
Subsidiary acquired in connection with the Acquisition), is owned directly or
indirectly at all times by a Qualified Foreign Subsidiary Holding Company and
that all the Equity Interests of such Qualified Foreign Subsidiary Holding
Company are pledged to secure the Obligations.

                                   ARTICLE VI

                               Negative Covenants

            Until the Commitments have expired or terminated and the principal
of and interest on each Loan and all fees payable hereunder have been paid in
full and all Letters of Credit have expired or terminated and all LC
Disbursements shall have been reimbursed, each Borrower covenants and agrees
with the Lenders that:

<PAGE>
                                                                              73

            SECTION 6.01. Indebtedness. The Company will not, and will not
permit any Subsidiary to, create, incur, assume or permit to exist any
Indebtedness, except:

            (a) the Obligations;

            (b) Subordinated Notes in a maximum aggregate principal amount of
      $80,200,000;

            (c) Acceptable Securities; provided that the Proceeds thereof shall
      have been applied as required by Section 2.10(d);

            (d) Indebtedness existing on the Effective Date and set forth in
      Schedule 6.01, and extensions, renewals and replacements of any such
      Indebtedness that do not change the obligors liable for the payment
      thereof, increase the outstanding principal amount thereof or shorten the
      maturity or the weighted average life thereof;

            (e) Intercompany Indebtedness (to the extent permitted by Section
      6.04);

            (f) Guarantees by the Company or any Subsidiary of Indebtedness of
      any Restricted Subsidiary, other than Guarantees by the Company or any
      Subsidiary that is a Loan Party of Indebtedness of any Subsidiary that is
      not a Loan Party;

            (g) Indebtedness of the Company, any Domestic Subsidiary or any
      Foreign Borrower incurred to finance the acquisition, construction or
      improvement of any fixed or capital assets, including Capital Lease
      Obligations and any Indebtedness assumed in connection with the
      acquisition of any such assets or secured by a Lien on any such assets
      prior to the acquisition thereof, and extensions, renewals and
      replacements of any such Indebtedness that do not increase the outstanding
      principal amount thereof or result in an earlier maturity date or
      decreased weighted average life thereof; provided that (A) such
      Indebtedness is incurred prior to or within 90 days after such acquisition
      or the completion of such construction or improvement and (B) the
      aggregate principal amount of Indebtedness permitted by this clause (g)
      shall not exceed $25,000,000 at any time outstanding;

            (h) Indebtedness of any Person that becomes a Domestic Subsidiary or
      a Foreign Borrower after the Effective Date; provided that (A) such
      Indebtedness exists at the time such Person becomes a Domestic Subsidiary
      or a Foreign Borrower, as the case may be, and is not created in
      contemplation of or in connection with such Person becoming a Domestic
      Subsidiary or a Foreign Borrower, as the case may be, and (B) the
      aggregate principal amount of Indebtedness permitted by this clause (h)
      shall not exceed $5,000,000 at any time outstanding;

            (i) Indebtedness of Unrestricted Subsidiaries for which neither the
      Company nor any Restricted Subsidiary shall be liable as obligor, under
      any Guarantee or otherwise;

<PAGE>
                                                                              74

            (j) other unsecured Indebtedness in an aggregate principal amount
      not exceeding $10,000,000 at any time outstanding; and

            (k) other unsecured Indebtedness incurred by Foreign Subsidiaries
      for working capital purposes in an aggregate principal amount not
      exceeding $2,500,000 at any time outstanding.

            SECTION 6.02. Liens. The Company will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Lien on any property
or asset now owned or hereafter acquired by it, except:

            (a) Liens created under the Loan Documents;

            (b) Permitted Encumbrances;

            (c) any Lien on any property or asset of the Company or any
      Subsidiary existing on the Effective Date and set forth in Schedule 6.02;
      provided that (i) such Lien shall not apply to any other property or asset
      of the Company or any Subsidiary and (ii) such Lien shall secure only
      those obligations which it secured on the Effective Date;

            (d) any Lien existing on any property or asset prior to the
      acquisition thereof by the Company or any Subsidiary or existing on any
      property or asset of any Person that shall have become a Subsidiary after
      the Effective Date prior to the time such Person shall have become a
      Subsidiary; provided that (A) such Lien is not created in contemplation of
      or in connection with such acquisition or such Person becoming a
      Subsidiary, as the case may be, (B) such Lien shall not apply to any other
      property or assets of the Company or any Subsidiary and (C) such Lien
      shall secure only those obligations which it secures on the date of such
      acquisition or the date such Person becomes a Subsidiary, as the case may
      be and extensions, renewals and replacements thereof that do not increase
      the outstanding principal amount thereof;

            (e) Liens on fixed or capital assets acquired, constructed or
      improved by the Company or any Subsidiary, including Liens deemed to exist
      in respect of assets subject to Capital Lease Obligations; provided that
      (A) such Liens secure Indebtedness permitted by clause (g) of Section
      6.01, (B) such Liens and the Indebtedness secured thereby are incurred
      prior to or within 180 days after such acquisition or the completion of
      such construction or improvement, (C) the Indebtedness secured thereby
      does not exceed of the cost of acquiring, constructing or improving such
      fixed or capital assets and (D) such Liens shall not apply to any other
      property or assets of the Company or any Subsidiary;

            (f) Liens securing Intercompany Indebtedness permitted under Section
      6.01(e);

            (g) extensions, renewals or replacements of any Lien referred to in
      clauses (c), (d) and (e); provided that the principal amount of the
      Indebtedness or obligations secured thereby is not increased and that any
      such extension, renewal or replacement is limited to the assets originally
      encumbered thereby;

<PAGE>
                                                                              75

            (h) Liens on the assets of Unrestricted Subsidiaries securing
      Indebtedness permitted under Section 6.01(i); and

            (i) additional Liens incurred by the Company and its Subsidiaries so
      long as the value of the property subject to such Liens, and the
      Indebtedness and other obligations secured thereby, do not exceed
      $1,000,000 at any time.

            SECTION 6.03. Fundamental Changes. (a) The Company will not, and
will not permit any Subsidiary to, merge into or consolidate with any other
Person, or permit any other Person to merge into or consolidate with it, or
liquidate or dissolve, except that, if at the time thereof and immediately after
giving effect thereto no Default shall have occurred and be continuing (i) any
Person may merge into the Company in a transaction in which the Company is the
surviving corporation, (ii) any Person may merge with or into any Subsidiary in
a transaction in which the surviving entity is a Subsidiary; provided that (A)
if any party to such merger is a Loan Party the surviving Person must also be a
Loan Party and must succeed to all the obligations of such Loan Party under the
Loan Documents and (B) if any party to such merger is a Restricted Subsidiary
the surviving Person shall also be a Restricted Subsidiary unless designated as
an Unrestricted Subsidiary pursuant to the definition of such term and (iii) any
Subsidiary (other than a Loan Party) may liquidate or dissolve if the Company
determines in good faith that such liquidation or dissolution is in the best
interests of the Company and is not materially disadvantageous to the Lenders;
provided that any such merger involving a Person that is not a Wholly Owned
Subsidiary immediately prior to such merger shall not be permitted unless also
permitted by Section 6.04.

            (b) The Company will not, and will not permit any of its
Subsidiaries to, engage to any material extent in any business other than
businesses of the type conducted by the Company and its Subsidiaries on the
Effective Date and businesses reasonably related or reasonably incidental
thereto.

            SECTION 6.04. Investments, Loans, Advances, Guarantees and
Acquisitions. The Company will not, and will not permit any of its Subsidiaries
to, purchase, hold or acquire (including pursuant to any merger with any Person
that was not a Wholly Owned Subsidiary prior to such merger) any Equity
Interests in or evidences of indebtedness or other securities (including any
option, warrant or other right to acquire any of the foregoing) of, make or
permit to exist any loans or advances to, Guarantee any obligations of, or make
or permit to exist any investment or any other interest in, any other Person
(all the foregoing being collectively called "Investments"), or purchase or
otherwise acquire (in one transaction or a series of transactions) any assets of
any other Person (other than inventory acquired in the ordinary course of
business) that constitute a business unit or are substantial in relation to the
consolidated assets of the Company, except:

            (a)   the Acquisition;

            (b)   Permitted Investments;

            (c)   Investments existing on the Effective Date and set forth on
                  Schedule 6.04;

            (d)   Investments existing on the Effective Date in Subsidiaries;

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                                                                              76

            (e) additional Investments in Persons that, immediately prior to
      such investments, are Restricted Subsidiaries;

            (f) Investments by Unrestricted Subsidiaries in Persons that,
      immediately prior to such investments, are Unrestricted Subsidiaries;

            (g) Investments consisting of all the issued and outstanding capital
      stock, or all or substantially all the assets, of Persons engaged in lines
      of business permitted under Section 6.03(b); provided that (A) no Default
      shall have occurred and be continuing at the time any such Investment is
      made or would occur as a result thereof and (B) the cash consideration
      payable for all such Investments made under this clause (g) after the
      Effective Date in the capital stock or assets of other Persons shall not
      exceed $20,000,000 in the aggregate;

            (h) Guarantees constituting Indebtedness permitted by Section 6.01;
      provided that a Subsidiary shall not Guarantee the Subordinated Notes or
      any Acceptable Securities;

            (i) investments received in connection with the bankruptcy or
      reorganization of, or settlement of delinquent accounts and disputes with,
      customers and suppliers, in each case in the ordinary course of business;

            (j) accounts receivable arising in the ordinary course of business;

            (k) investments and loans held by any Subsidiary at the time it
      becomes a Subsidiary in a transaction permitted by this Section;

            (l) reasonable advances to officers and employees of the Company and
      any Subsidiary for travel arising in the ordinary course of business;

            (m) loans to officers and employees of the Company or any
      Subsidiary, not to exceed $100,000 in the aggregate at any one time
      outstanding;

            (n) promissory notes and other noncash consideration received by the
      Company and its Subsidiaries in connection with any asset sale permitted
      hereunder;

            (o) advances in the form of prepayments of expenses, so long as such
      expenses were incurred in the ordinary course of business and are paid in
      accordance with customary trade terms of the Company or any of its
      Subsidiaries;

            (p) Guarantees by the Company of obligations of Restricted
      Subsidiaries incurred in the ordinary course of business and not
      constituting Indebtedness; and

            (q) other investments, loans or advances made by the Company, any
      Domestic Subsidiary or any Foreign Borrower at times when no Default or
      Event of Default shall have occurred and be continuing or would occur as a
      result thereof and that, taken together with all other investments made
      after the Effective Date under this clause (q), would not

<PAGE>
                                                                              77

      exceed (A) the sum of $5,000,000 and 50% of Consolidated Net Income of the
      Company for the period (treated as one accounting period) commencing
      January 1, 2000, and ending at the most recent fiscal quarter end for
      which financial statements shall have been delivered under Section 5.01(a)
      or (b), minus (B) the amount of Restricted Payments made after the
      Effective Date pursuant to Section 6.08(a).

            SECTION 6.05. Asset Sales, etc. The Company will not, and will not
permit any of its Restricted Subsidiaries to, sell, transfer, lease or otherwise
dispose of any asset, including any Equity Interest, except:

            (a) sales of inventory, used or surplus equipment and Permitted
      Investments in the ordinary course of business or as expressly permitted
      elsewhere in this Agreement;

            (b) sales, transfers and dispositions to the Company or a Restricted
      Subsidiary; and

            (c) sales, transfers and other dispositions of other assets (other
      than Equity Interests in Subsidiaries); provided that (x) the aggregate
      proceeds from such sales, transfers and other dispositions during any
      fiscal year shall not exceed the greater of (A) 10% of Consolidated Net
      Tangible Assets as of the beginning of such fiscal year and (B) 10% of
      Consolidated Net Income of the Company (excluding Unrestricted
      Subsidiaries) for such fiscal year, (y) not more than $2,000,000 of
      noncash proceeds shall be received from such sales, transfers and other
      dispositions during any fiscal year and (z) the aggregate cash proceeds in
      excess of the greater of (A) 5% of Consolidated Net Tangible Assets as of
      the beginning of such fiscal year and (B) 5% of Consolidated Net Income of
      the Company (excluding Unrestricted Subsidiaries) for such fiscal year
      shall be applied to prepay Term Borrowings; provided further, however,
      that if the Company shall deliver to the Administrative Agent within 10
      days after receipt of such proceeds a certificate of a Financial Officer
      to the effect that the Company and the Subsidiaries intend to apply such
      proceeds (or a portion thereof specified in such certificate), within one
      year after receipt of such proceeds, to acquire real property, equipment
      or other tangible assets to be used in the business of the Company and the
      Subsidiaries, and certifying that no Default has occurred and is
      continuing, and if, pending such application, such proceeds shall be held
      in the form of cash or Permitted Investments, then no prepayment shall be
      required pursuant to this clause (iii) in respect of such proceeds (or the
      portion of such proceeds specified in such certificate, if applicable)
      except to the extent such proceeds shall not have been so applied by the
      end of such one year period, at which time a prepayment shall be required
      in an amount equal to the proceeds not so applied.

            SECTION 6.06. Sale and Leaseback Transactions. The Company will not,
and will not permit any of its Restricted Subsidiaries to, enter into any
arrangement, directly or indirectly, whereby it shall sell or transfer any
property, real or personal, used or useful in its business, whether now owned or
hereinafter acquired, and thereafter rent or lease such property or other
property that it intends to use for substantially the same purpose or purposes
as the property sold or transferred.

            SECTION 6.07. Hedging Agreements. The Company will not, and will not
permit any of its Subsidiaries to, enter into any Hedging Agreement, other than
(a) Hedging

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                                                                              78

Agreements required by Section 5.13 and (b) Hedging Agreements entered into in
the ordinary course of business to hedge or mitigate risks to which the Company
or such Subsidiary is exposed in the conduct of its business or the management
of its liabilities.

            SECTION 6.08. Restricted Payments; Certain Payments in Respect of
Indebtedness. (a) The Company will not, and will not permit any Restricted
Subsidiary to, declare or make, or agree to make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so,
except that (i) Restricted Subsidiaries may declare and pay dividends ratably
with respect to their capital stock and (ii) if no Default or Event of Default
has occurred and is continuing or would occur as a result thereof, the Company
may make any Restricted Payment that, taken together with all other Restricted
Payments made after the Effective Date, would not exceed (A) the sum of
$5,000,000 and 50% of Consolidated Net Income of the Company for the period
(treated as one accounting period) commencing January 1, 2000, and ending at the
most recent fiscal quarter end for which financial statements shall have been
delivered under Section 5.01(a) or (b), minus (B) the amount of investments made
after the Effective Date pursuant to Section 6.04(q).

            (b) The Company will not, and will not permit any Restricted
Subsidiary to, make or agree to make, directly or indirectly, any payment or
other distribution (whether in cash, securities or other property) of or in
respect of the principal of or interest on any Subordinated Indebtedness, or any
payment or other distribution (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, defeasance, cancelation or termination of any
Subordinated Indebtedness, except scheduled and other mandatory payments of
interest and principal in respect of Subordinated Indebtedness; provided that no
payment shall be made in respect of Subordinated Indebtedness that is prohibited
by the subordination provisions applicable to such Subordinated Indebtedness.

            SECTION 6.09. Transactions with Affiliates. The Company will not,
and will not permit any Subsidiary to, sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or
assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) transactions in the ordinary course of business at prices
and on terms and conditions not less favorable to the Company or such Subsidiary
than could be obtained on an arm's-length basis from unrelated third parties,
(b) transactions between or among the Company and the Restricted Subsidiaries
not involving any other Affiliate, (c) transactions among or between
Unrestricted Subsidiaries and (d) any Restricted Payment permitted by Section
6.08.

            SECTION 6.10. Restrictive Agreements. The Company will not, and will
not permit any Restricted Subsidiary to, directly or indirectly, enter into,
incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon (a) the ability of the Company or any
Restricted Subsidiary to create, incur or permit to exist any Lien upon any of
its property or assets, or (b) the ability of any Restricted Subsidiary (i) to
pay dividends or other distributions with respect to any shares of its capital
stock, (ii) to make or repay loans or advances to the Company or any other
Restricted Subsidiary, (iii) to Guarantee Indebtedness of the Company or any
other Restricted Subsidiary or (iv) sell, lease or transfer any of its Property
to the Company or any other Restricted Subsidiary; provided that (i) the
foregoing shall not apply to restrictions and conditions imposed by law or by
any Loan Document, (ii) the foregoing shall not apply to restrictions and
conditions existing on the Effective Date identified on

<PAGE>
                                                                              79

Schedule 6.10 (but shall apply to any extension or renewal of, or any amendment
or modification expanding the scope of, any such restriction or condition),
(iii) the foregoing shall not apply to customary restrictions and conditions
contained in agreements relating to the sale of a Restricted Subsidiary pending
such sale, provided that such restrictions and conditions apply only to the
Restricted Subsidiary that is to be sold and such sale is permitted hereunder,
(iv) clause (a) of the foregoing shall not apply to restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by this
Agreement if such restrictions or conditions apply only to the property or
assets securing such Indebtedness and (v) clause (a) of the foregoing shall not
apply to customary provisions in leases and other contracts restricting the
assignment thereof.

            SECTION 6.11. Sales and Assignments of Income, Revenues and
Receivables. The Company will not, and will not permit any Restricted Subsidiary
to, sell or assign, with or without recourse, for discount or otherwise, any
income or revenues, including notes and accounts receivable.

            SECTION 6.12. Amendment of Material Documents. The Company will not,
and will not permit any Subsidiary to, amend, modify or waive in any respect
materially adverse to the Company or to the rights or interests of the Lenders
any of its rights under the Subordinated Note Indenture or any document
evidencing or governing Acceptable Securities.

            SECTION 6.13. Interest Coverage Ratio. The Company will not permit
the Interest Coverage Ratio for any Rolling Period ending during either period
set forth below to be less than the ratio set forth below opposite such period:

               Period                               Ratio
               ------                               -----

Through December 31, 2000                       2.00 to 1.00

Thereafter                                      3.00 to 1.00

            SECTION 6.14. Adjusted Leverage Ratio; Leverage Ratio. (a) The
Company will not permit the Adjusted Leverage Ratio as of any date during any
period set forth below to exceed the ratio set forth opposite such period:

                Period                                Ratio
                ------                                -----

Through December 31, 2000                           3.50 to 1.00

Thereafter                                          3.00 to 1.00

; provided, however, that during any period following receipt by the Company,
after the Restatement Effective Date, of Net Proceeds in excess of $50,000,000
in the aggregate from one or more issuances of Equity Interests of the Company,
the Company will not permit the Adjusted Leverage Ratio to exceed 3.00 to 1.00.

<PAGE>
                                                                              80

      (b) The Company will not permit the Leverage Ratio as of any date during
any period set forth below to exceed the ratio set forth opposite such period:

               Period                               Ratio
               ------                               -----

Through December 31, 2000                       3.50 to 1.00

Thereafter                                      3.00 to 1.00

; provided, however, that during any period following receipt by the Company,
after the Restatement Effective Date, of Net Proceeds in excess of $50,000,000
in the aggregate from one or more issuances of Equity Interests of the Company,
the Company will not permit the Leverage Ratio to exceed 3.00 to 1.00.

            SECTION 6.15. Fixed Charge Coverage Ratio. The Company will not
permit the Fixed Charge Coverage Ratio for any Rolling Period ending during
either period set forth below to be less than the ratio set forth below opposite
such period:

               Period                               Ratio
               ------                               -----

Through December 31, 2000                       1.00 to 1.00

Thereafter                                      1.10 to 1.00

            SECTION 6.16. Current Ratio. The Company will not permit the Current
Ratio at any time to be less than 1.50 to 1.00.

            SECTION 6.17. Minimum Tangible Net Worth. The Company will not
permit Consolidated Tangible Net Worth (excluding Unrestricted Subsidiaries) as
of any date to be less than the sum of (x) 75% of Consolidated Tangible Net
Worth (excluding Unrestricted Subsidiaries) as of the Effective Date plus (y)
50% of Consolidated Net Income of the Company and its Restricted Subsidiaries
(but only to the extent such amount is positive) for fiscal quarters ended after
September 30, 1999 plus (z) 75% of the aggregate Net Proceeds (cash or non-cash)
from the issuance by the Company or any Restricted Subsidiary of Equity
Interests subsequent to the Effective Date.

                                   ARTICLE VII

                                Events of Default

            If any of the following events ("Events of Default") shall occur:

            (a) any Borrower shall fail to pay any principal of any Loan or any
      reimbursement obligation in respect of any LC Disbursement when and as the
      same shall become due and payable, whether at the due date thereof or at a
      date fixed for prepayment thereof or otherwise;

<PAGE>
                                                                              81

            (b) any Borrower shall fail to pay any interest on any Loan or any
      fee or any other amount (other than an amount referred to in clause (a) of
      this Article) payable under this Agreement or any other Loan Document,
      when and as the same shall become due and payable, and such failure shall
      continue unremedied for a period of five days;

            (c) any representation or warranty made or deemed made by or on
      behalf of the Company or any Subsidiary in or in connection with any Loan
      Document or any amendment or modification thereof or waiver thereunder, or
      in any report, certificate, financial statement or other document
      furnished pursuant to or in connection with any Loan Document or any
      amendment or modification thereof or waiver thereunder, shall prove to
      have been incorrect in any material respect when made or deemed made;

            (d) the Company or any Subsidiary shall fail to observe or perform
      any covenant or agreement contained in Section 5.02, 5.04 (with respect to
      the existence of any Borrower) or 5.10 or in Article VI;

            (e) any Loan Party shall fail to observe or perform any covenant or
      agreement contained in any Loan Document (other than those specified in
      clause (a), (b) or (d) of this Article), and such failure shall continue
      unremedied for a period of 30 days after the earlier of (i) the Company's
      obtaining knowledge thereof or (ii) written notice thereof from the
      Administrative Agent to the Company (which notice will be given at the
      request of any Lender);

            (f) the Company or any Subsidiary shall fail to make any payment
      (whether of principal or interest and regardless of amount) in respect of
      any Material Indebtedness, when and as the same shall become due and
      payable;

            (g) any event or condition occurs that results in any Material
      Indebtedness becoming due prior to its scheduled maturity or that enables
      or permits (with or without the giving of notice, the lapse of time or
      both) the holder or holders of any Material Indebtedness or any trustee or
      agent on its or their behalf to cause any Material Indebtedness to become
      due, or to require the prepayment, repurchase, redemption or defeasance
      thereof, prior to its scheduled maturity; provided that this clause (g)
      shall not apply to secured Indebtedness that becomes due as a result of
      the voluntary sale or transfer of the property or assets securing such
      Indebtedness;

            (h) an involuntary proceeding shall be commenced or an involuntary
      petition shall be filed seeking (i) liquidation, reorganization or other
      relief in respect of the Company or any Subsidiary or its debts, or of a
      substantial part of its assets, under any Federal, state or foreign
      bankruptcy, insolvency, receivership or similar law now or hereafter in
      effect or (ii) the appointment of a receiver, trustee, custodian,
      sequestrator, conservator or similar official for the Company or any
      Subsidiary or for a substantial part of its assets, and, in any such case,
      such proceeding or petition shall continue undismissed for 60 days or an
      order or decree approving or ordering any of the foregoing shall be
      entered;

<PAGE>
                                                                              82

            (i) the Company or any Subsidiary shall (i) voluntarily commence any
      proceeding or file any petition seeking liquidation, reorganization or
      other relief under any Federal, state or foreign bankruptcy, insolvency,
      receivership or similar law now or hereafter in effect, (ii) consent to
      the institution of, or fail to contest in a timely and appropriate manner,
      any proceeding or petition described in clause (h) of this Article, (iii)
      apply for or consent to the appointment of a receiver, trustee, custodian,
      sequestrator, conservator or similar official for the Company or any
      Subsidiary or for a substantial part of its assets, (iv) file an answer
      admitting the material allegations of a petition filed against it in any
      such proceeding, (v) make a general assignment for the benefit of
      creditors or (vi) take any action for the purpose of effecting any of the
      foregoing;

            (j) the Company or any Subsidiary shall become unable, admit in
      writing its inability or fail generally to pay its debts as they become
      due;

            (k) one or more judgments for the payment of money in an aggregate
      amount in excess of $5,000,000 shall be rendered against the Company, any
      Subsidiary or any combination thereof and the same shall remain
      undischarged for a period of 30 consecutive days during which execution
      shall not be effectively stayed, or any action shall be legally taken by a
      judgment creditor to attach or levy upon any assets of the Company or any
      Subsidiary to enforce any such judgment;

            (l) an ERISA Event shall have occurred that, in the opinion of the
      Required Lenders, when taken together with all other ERISA Events that
      have occurred, could reasonably be expected to result in liability of the
      Company and its Subsidiaries in an aggregate amount exceeding (i)
      $5,000,000 in any year or (ii) $15,000,000 for all periods;

            (m) any Lien or guarantee purported to be created under any Security
      Document shall cease to be, or shall be asserted by any Loan Party not to
      be, a valid and perfected Lien on any material portion of the Collateral,
      with the priority required by the applicable Security Document, except (i)
      as a result of the sale or other disposition of the applicable Collateral
      in a transaction permitted under the Loan Documents or (ii) as a result of
      the Administrative Agent's failure to maintain possession of any stock
      certificates, promissory notes or other instruments delivered to it under
      any Pledge Agreement; or

            (n) a Change in Control shall occur;

then, and in every such event (other than an event with respect to the Company
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Company, take either or
both of the following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may thereafter
be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all
fees and other obligations of the Borrowers accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrowers; and in case of any
event with respect

<PAGE>
                                                                              83

to the Company described in clause (h) or (i) of this Article, the Commitments
shall automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and all fees and other obligations of the
Borrowers accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrowers.

                                  ARTICLE VIII

                            The Administrative Agent

            Each of the Lenders and the Issuing Banks hereby irrevocably
appoints the Administrative Agent as its agent and authorizes the Administrative
Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms of the Loan Documents,
together with such actions and powers as are reasonably incidental thereto.

            The bank serving as the Administrative Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and
may exercise the same as though it were not the Administrative Agent, and such
bank and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with the Company or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent hereunder.

            The Administrative Agent shall not have any duties or obligations
except those expressly set forth in the Loan Documents. Without limiting the
generality of the foregoing, (a) the Administrative Agent shall not be subject
to any fiduciary or other implied duties, regardless of whether a Default has
occurred and is continuing, (b) the Administrative Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Loan Documents
that the Administrative Agent is required to exercise in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 9.02), and (c) except as
expressly set forth in the Loan Documents, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Company or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 9.02) or in the
absence of its own gross negligence or wilful misconduct. The Administrative
Agent shall not be deemed not to have knowledge of any Default unless and until
written notice thereof is given to the Administrative Agent by the Company or a
Lender, and the Administrative Agent shall not be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty or representation
made in or in connection with any Loan Document, (ii) the contents of any
certificate, report or other document delivered thereunder or in connection
therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Loan Document, (iv) the
validity, enforceability, effectiveness or genuineness of any Loan Document or
any other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV

<PAGE>
                                                                              84

or elsewhere in any Loan Document, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent.

            The Administrative Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing believed by it to be
genuine and to have been signed or sent by the proper Person. The Administrative
Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any
liability for relying thereon. The Administrative Agent may consult with legal
counsel (who may be counsel for the Company), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not
taken by it in accordance with the advice of any such counsel, accountants or
experts.

            The Administrative Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of each Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

            Subject to the appointment and acceptance of a successor the
Administrative Agent as provided in this paragraph, the Administrative Agent may
resign at any time by notifying the Lenders, the Issuing Banks and the Company.
Upon any such resignation, the Required Lenders shall have the right, in
consultation with the Company, to appoint a successor. If no successor shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Banks, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York, or an Affiliate of any
such bank. Upon the acceptance of its appointment as Administrative Agent
hereunder by a successor, such successor shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder. The fees payable by the Company to a successor
Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Company and such successor. After the
Administrative Agent's resignation hereunder, the provisions of this Article and
Section 9.03 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties in
respect of any actions taken or omitted to be taken by any of them while it was
acting as Administrative Agent.

            Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not

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                                                                              85

taking action under or based upon this Agreement, any other Loan Document or
related agreement or any document furnished hereunder or thereunder.

            It is expressly understood that none of the Documentation Agent, the
Syndication Agent nor any Co-Agent shall have any duties or responsibilities
under this Agreement.

                                   ARTICLE IX

                                  Miscellaneous

            SECTION 9.01. Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

            (a) if to the Company or any Borrowing Subsidiary, to it, or to it
      in care of the Company, at 3000 Technology Drive, Angleton, TX, Attention
      of: Cary T. Fu (Telecopy No. (409) 848-5269);

            (b) if to the Administrative Agent, to it at Chase Bank of Texas,
      National Association, Loan and Agency Services Group, 712 Main Street,
      Houston, TX 77002, Attention of James Dolphin (Telecopy No. (713)
      216-6004), with a copy to The Chase Manhattan Bank, One Chase Manhattan
      Plaza, 8th Floor, New York, NY 10081, Attention of Muniram Appanna
      (Telecopy No. (212)-552-7490);

            (c) if to Chase in its capacity as an Issuing Bank, to it at Chase
      Bank of Texas, National Association., Loan and Agency Services Group, 712
      Main Street, Houston, TX 77002, Attention of James Dolphin (Telecopy No.
      (713) 216-6004), with a copy to The Chase Manhattan Bank, One Chase
      Manhattan Plaza, 8th Floor, New York, NY 10081, Attention of Muniram
      Appanna (Telecopy No. (212)-552-7490); and

            (d) if to any other Lender or Issuing Bank, to it at its address (or
      telecopy number) set forth in its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

            SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent, any Issuing Bank or any Lender in exercising any right or
power hereunder or under any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent, the Issuing
Banks and the Lenders hereunder and under the other Loan Documents are
cumulative and are not exclusive of

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                                                                              86

any rights or remedies that they would otherwise have. No waiver of any
provision of any Loan Document or consent to any departure by any Loan Party
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent, any Lender or any
Issuing Bank may have had notice or knowledge of such Default at the time.

            (b) Neither this Agreement nor any other Loan Document nor any
provision hereof or thereof may be waived, amended or modified except, in the
case of this Agreement, pursuant to an agreement or agreements in writing
entered into by the Company and the Required Lenders or, in the case of any
other Loan Document, pursuant to an agreement or agreements in writing entered
into by the Administrative Agent and the Loan Party or Loan Parties that are
parties thereto, in each case with the consent of the Required Lenders; provided
that no such agreement shall (i) increase the Commitment of any Lender without
the written consent of such Lender, (ii) reduce the principal amount of any Loan
or LC Disbursement or reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender affected thereby,
(iii) postpone the maturity of any Loan, or any scheduled payment of the
principal amount of any Term Loan under Section 2.09, or the required date of
reimbursement of any LC Disbursement, or any date for the payment of any
interest or fees payable hereunder, or reduce the amount of, waive or excuse any
such payment, or postpone the scheduled date of expiration of any Commitment,
without the written consent of each Lender affected thereby, (iv) change Section
2.17(b) or (c) in a manner that would alter the pro rata sharing of payments
required thereby, without the written consent of each Lender, (v) change any of
the provisions of this Section or the percentage set forth in the definition of
"Required Lenders" or any other provision of any Loan Document specifying the
number or percentage of Lenders (or Lenders of any Class) required to waive,
amend or modify any rights thereunder or make any determination or grant any
consent thereunder, without the written consent of each Lender (or each Lender
of such Class, as the case may be), (vi) release all or substantially all the
Guarantors from their Guarantees under the Guarantee Agreement except as
expressly provided in the Guarantee Agreement or Section 9.14, or limit the
liability of the Guarantors in respect of their Guarantee, without the written
consent of each Lender or (vii) release all or substantially all the Collateral
from the Liens of the Security Documents without the written consent of each
Lender; provided further that (A) no such agreement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent or any Issuing
Bank without the prior written consent of the Administrative Agent or such
Issuing Bank, as the case may be, and (B) any waiver, amendment or modification
of this Agreement that by its terms reduces or adversely affects the rights or
duties under this Agreement of the Lenders holding Loans or Commitments of one
or more Classes without affecting the rights or duties of the Lenders holding
Loans or Commitments of the other Class or Classes may be effected by an
agreement or agreements in writing entered into by the Company and the
percentage in interest of each adversely affected Class of Lenders that would be
required to consent thereto under this Section if such Class of Lenders were the
only Class of Lenders at such time. Notwithstanding the foregoing, any provision
of this Agreement may be amended by an agreement in writing entered into by the
Company, the Required Lenders and the Administrative Agent (and, if their rights
or obligations are affected thereby the Issuing Banks) if (i) by the terms of
such agreement the Commitment of each Lender not consenting to the

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                                                                              87

amendment provided for therein shall terminate upon the effectiveness of such
amendment and (ii) at the time such amendment becomes effective, each Lender not
consenting thereto receives payment in full of the principal of and interest
accrued on each Loan made by it and all other amounts owing to it or accrued for
its account under this Agreement.

            SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Company
shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable fees, charges
and disbursements of counsel for the Administrative Agent and such Affiliates,
in connection with the syndication of the credit facilities provided for herein,
the preparation and administration of the Loan Documents or any amendments,
modifications or waivers of the provisions thereof (whether or not the
transactions contemplated hereby or thereby shall be consummated), (ii) all
reasonable out-of-pocket expenses incurred by any Issuing Bank in connection
with the issuance, amendment, renewal or extension of any Letter of Credit or
any demand for payment thereunder and (iii) all out-of-pocket expenses incurred
by the Administrative Agent, any Issuing Bank or, after the occurrence and
during the continuance of any Default, any Lender, including the fees, charges
and disbursements of any counsel for the Administrative Agent, any Issuing Bank
or any Lender, in connection with the enforcement or protection of its rights in
connection with the Loan Documents, including its rights under this Section, or
in connection with the Loans made or Letters of Credit issued hereunder,
including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.

            (b) The Company shall indemnify the Administrative Agent, each
Issuing Bank and each Lender, and each Related Party of any of the foregoing
Persons (each such Person being called an "Indemnitee") against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses, including the fees, charges and disbursements of any counsel
for any Indemnitee, incurred by or asserted against any Indemnitee arising out
of, in connection with, or as a result of (i) the execution or delivery of any
Loan Document or any other agreement or instrument contemplated hereby, the
performance by the parties to the Loan Documents of their respective obligations
thereunder or the consummation of the Transactions or any other transactions
contemplated hereby, (ii) any Loan or Letter of Credit or the use of the
proceeds therefrom (including any refusal by an Issuing Bank to honor a demand
for payment under a Letter of Credit if the documents presented in connection
with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any actual or alleged presence or release of Hazardous Materials
on or from any Mortgaged Property or any other property currently or formerly
owned or operated by the Company or any of its Subsidiaries, or any
Environmental Liability related in any way to the Company or any of its
Subsidiaries or (iv) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort
or any other theory and regardless of whether any Indemnitee is a party thereto;
provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses
are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or wilful misconduct of such
Indemnitee.

            (c) To the extent that the Company fails to pay any amount required
to be paid by it to the Administrative Agent or any Issuing Bank under paragraph
(a) or (b) of this Section, each Lender severally agrees to pay to the
Administrative Agent or Issuing Bank, as the case may be,

<PAGE>
                                                                              88

such Lender's pro rata share (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent or Issuing Bank in its capacity as such. For
purposes hereof, a Lender's "pro rata share" shall be determined based upon its
share of the sum of the total Revolving Exposures, outstanding Term Loans and
unused Commitments at the time.

            (d) To the extent permitted by applicable law, the Company shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement or any agreement or instrument contemplated hereby, the
Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

            (e) All amounts due under this Section shall be payable promptly
after written demand therefor.

            SECTION 9.04. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby (including any
Affiliate of an Issuing Bank that issues any Letter of Credit), except that a
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender (and any attempted
assignment or transfer by a Borrower without such consent shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby (including any Affiliate of an Issuing
Bank that issues any Letter of Credit) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the Issuing
Banks and the Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

            (b) Any Lender may assign to one or more assignees all or a portion
of its rights and obligations under this Agreement (including all or a portion
of its Commitment and the Loans at the time owing to it); provided that (i)
except in the case of an assignment to a Lender or an Affiliate of a Lender,
each of the Company and the Administrative Agent (and, in the case of an
assignment of all or a portion of a Revolving Commitment or any Lender's
obligations in respect of its LC Exposure, such Issuing Bank) must give their
prior written consent to such assignment (which consent shall not be
unreasonably withheld), (ii) except in the case of an assignment to a Lender or
an Affiliate of a Lender or an assignment of the entire remaining amount of the
assigning Lender's Commitment or Loans, the amount of the Commitment or Loans of
the assigning Lender subject to each such assignment (determined as of the date
the Assignment and Acceptance with respect to such assignment is delivered to
the Administrative Agent) shall not be less than $5,000,000 unless each of the
Company and the Administrative Agent otherwise consent, (iii) each partial
assignment shall be made as an assignment of a proportionate part of all the
assigning Lender's rights and obligations under this Agreement, (iv) the parties
to each assignment shall execute and deliver to the Administrative Agent an
Assignment and Acceptance, together with a processing and recordation fee of
$3,500, and (v) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire; and provided further that
any consent of the Company otherwise required under this paragraph shall not be
required if an Event of Default under clause (h) or (i) of Article VII has
occurred and is continuing. Subject

<PAGE>
                                                                              89

to acceptance and recording thereof pursuant to paragraph (d) of this Section,
from and after the effective date specified in each Assignment and Acceptance
the assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Acceptance, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all of the assigning Lender's
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections 2.14,
2.15, 2.16 and 9.03). Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this paragraph shall
be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (e) of
this Section.

            (c) The Administrative Agent, acting for this purpose as an agent of
the Borrowers, shall maintain at one of its offices in The City of Houston a
copy of each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitment of,
and principal amount of the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time (the "Register"). The entries in
the Register shall be conclusive, and the Borrowers, the Administrative Agent,
the Issuing Banks and the Lenders may treat each Person whose name is recorded
in the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by any Borrower, any Issuing Bank and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

            (d) Upon its receipt of a duly completed Assignment and Acceptance
executed by an assigning Lender and an assignee, the assignee's completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

            (e) Any Lender may, without the consent of the Company, the
Administrative Agent or any Issuing Bank, sell participations to one or more
banks or other entities (a "Participant") in all or a portion of such Lender's
rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (i) such Lender's
obligations under this Agreement shall remain unchanged, (ii) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (iii) the Borrowers, the Administrative Agent, the Issuing
Banks and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce the Loan Documents and to approve any amendment, modification or waiver
of any provision of the Loan Documents; provided that (i) such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, modification or waiver described in the
first proviso to Section 9.02(b) that affects such Participant and (ii) in the
case of a Lender

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                                                                              90

selling a participation to a wholly owned subsidiary of such Lender, such
agreement or instrument may provide that such Participant shall also have the
right to approve any amendment, modification or waiver of any provision of the
Loan Documents . Subject to paragraph (f) of this Section, the Borrowers agree
that each Participant shall be entitled to the benefits of Sections 2.14, 2.15
and 2.16 to the same extent as if it were a Lender and had acquired its interest
by assignment pursuant to paragraph (b) of this Section. To the extent permitted
by law, each Participant also shall be entitled to the benefits of Section 9.08
as though it were a Lender, provided such Participant agrees to be subject to
Section 2.17(c) as though it were a Lender.

            (f) A Participant shall not be entitled to receive any greater
payment under Section 2.14 or 2.16 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Borrower's prior written consent. A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.16 unless
the Company is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Company, to comply with Section
2.16(e) as though it were a Lender.

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

            (h) Notwithstanding anything to the contrary contained herein, any
Lender (a "Granting Lender ") may grant to a special purpose funding vehicle (an
"SPC "), identified as such in writing from time to time by the Granting Lender
to the Administrative Agent and the Borrowers, the option to provide to a
Borrower all or any part of any Loan that such Granting Lender would otherwise
be obligated to make to a Borrower pursuant to this Agreement; provided that (i)
nothing herein shall constitute a commitment by any SPC to make any Loan and
(ii) if an SPC elects not to exercise such option or otherwise fails to provide
all or any part of such Loan, the Granting Lender shall be obligated to make
such Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Loan were made by such Granting Lender. Each party hereto hereby agrees
that no SPC shall be liable for any indemnity or similar payment obligation
under this Agreement (all liability for which shall remain with the Granting
Lender). In furtherance of the foregoing, each party hereto hereby agrees (which
agreement shall survive the termination of this Agreement) that, prior to the
date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPC, it will not institute
against, or join any other person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings
under the laws of the United States or any State thereof. In addition,
notwithstanding anything to the contrary contained in this Section 9.04, any SPC
may (i) with notice to, but without the prior written consent of, the Borrowers
and the Administrative Agent and without paying any processing fee therefore,
assign all or a portion of its interests in any Loans to the Granting Lender or
to any financial institutions (consented to by the Borrowers and Administrative
Agent) providing liquidity and/or credit support to or for the account of such
SPC to support the funding or maintenance of Loans and (ii) disclose on a

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                                                                              91

confidential basis any non-public information relating to its Loans to any
rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPC.

            SECTION 9.05. Survival. All covenants, agreements, representations
and warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, any Issuing
Bank or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated. The provisions of
Sections 2.14, 2.15, 2.16 and 9.03 and Article VIII shall survive and remain in
full force and effect regardless of the consummation of the transactions
contemplated hereby, the repayment of the Loans, the expiration or termination
of the Letters of Credit and the Commitments or the termination of this
Agreement or any provision hereof.

            SECTION 9.06. Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement,
the other Loan Documents and the Fee Letters dated July 21, 1999, and June 2,
2000, among Chase Securities Inc., Chase and the Company constitute the entire
contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating to
the subject matter hereof. Except as provided in Section 4.01, this Agreement
shall become effective when it shall have been executed by the Company, each
Borrowing Subsidiary and the Administrative Agent, and when the Administrative
Agent shall have received counterparts hereof which, when taken together, bear
the signatures of the Required Lenders, and thereafter shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement.

            SECTION 9.07. Severability. Any provision of this Agreement held to
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

            SECTION 9.08. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any time
owing by such Lender or Affiliate to or for the credit or the account of any
Borrower

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                                                                              92

against any of and all the obligations of any Borrower now or hereafter existing
under this Agreement held by such Lender, irrespective of whether or not such
Lender shall have made any demand under this Agreement and although such
obligations may be unmatured. The rights of each Lender under this Section are
in addition to other rights and remedies (including other rights of setoff)
which such Lender may have.

            SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of
Process. (a) This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

            (b) Each Borrower hereby irrevocably and unconditionally submits,
for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court of the State of New York sitting in New York County and of the United
States District Court of the Southern District of New York, and any appellate
court from any thereof, in any action or proceeding arising out of or relating
to any Loan Document, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement or any other Loan Document shall affect any right that
the Administrative Agent, any Issuing Bank or any Lender may otherwise have to
bring any action or proceeding relating to this Agreement or any other Loan
Document against any Borrower or its properties in the courts of any
jurisdiction.

            (c) Each Borrower hereby irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection which it
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any other Loan
Document in any court referred to in paragraph (b) of this Section. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

            (d) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

            SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY,

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                                                                              93

AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

            SECTION 9.11. Headings. Article and Section headings and the Table
of Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

            SECTION 9.12. Confidentiality. Each of the Administrative Agent, the
applicable Issuing Bank and the Lenders agrees to maintain the confidentiality
of the Information (as defined below), except that Information may be disclosed
(a) to its and its Affiliates' directors, officers, employees and agents,
including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to any
assignee of or Participant in, or any prospective assignee of or Participant in,
any of its rights or obligations under this Agreement, (g) with the consent of
the Company or (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes available to
the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential
basis from a source other than the Company. For the purposes of this Section,
"Information" means all information received from the Company relating to the
Company or its business, other than any such information that is available to
the Administrative Agent, any Issuing Bank or any Lender on a nonconfidential
basis prior to disclosure by the Company; provided that, in the case of
information received from the Company after the Effective Date, such information
is clearly identified at the time of delivery as confidential. Any Person
required to maintain the confidentiality of Information as provided in this
Section shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.

            SECTION 9.13. Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under applicable law (collectively the "Charges"), shall exceed the
maximum lawful rate (the "Maximum Rate") which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

<PAGE>
                                                                              94

            SECTION 9.14. Release of Liens and Guarantees. In the event that the
Company or any Subsidiary sells, transfers or otherwise disposes of all or any
portion of any of the Equity Interests, assets or property owned by the Company
or such Subsidiary in a transaction not prohibited by this Agreement, the
Administrative Agent and the Collateral Agent shall promptly (and the Lenders
hereby authorize and instruct the Administrative Agent and the Collateral Agent
to) take such action and execute any such documents as may be reasonably
requested by the Company and at the Borrower's expense to release any Liens
created by any Loan Document in respect of such Equity Interests, assets or
property, including the release and satisfaction of record of any mortgage or
deed of trust granted in connection herewith, and, in the case of a disposition
of all or substantially all the Equity Interests or assets of any Subsidiary
that is a Loan Party, terminate such Subsidiary's obligations under the
Guarantee Agreement and each other Loan Document. In addition, the
Administrative Agent and the Collateral Agent agree to take such actions as are
reasonably requested by the Company and at the Borrower's expense to terminate
the Liens and security interests created by the Loan Documents when all the
Obligations have been paid in full and all Letters of Credit and Commitments
terminated.

            SECTION 9.15. No Novation. The execution, delivery and effectiveness
of this Agreement shall not extinguish the obligations for the payment of money
outstanding under the Original Credit Agreement or discharge or release the Lien
or priority of any Collateral Document or any other security therefor. Nothing
herein contained shall be construed as a substitution or novation of the
obligations outstanding under the Original Credit Agreement or any agreements
securing the same, which shall remain in full force and effect, except as
modified hereby or by agreements executed concurrently herewith. Nothing
expressed or implied in this Agreement or any other document contemplated hereby
shall be construed as a release or other discharge of Company under the Original
Credit Agreement or any Guarantor under any Loan Document from any of its
obligations and liabilities thereunder. Each of the Original Credit Agreement
and the other Loan Documents shall remain in full force and effect until and
except as expressly modified hereby.

<PAGE>
                                                                              95

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

                                    BENCHMARK ELECTRONICS, INC.,

                                        by
                                           /s/ Gayla J. Delly
                                           -------------------------------------
                                           Name:  Gayla J. Delly
                                           Title: Treasurer

                                    CHASE BANK OF TEXAS, NATIONAL ASSOCIATION,
                                    individually and as Administrative Agent,

                                        by
                                           /s/ James R. Dolphin
                                           -------------------------------------
                                           Name:  James R. Dolphin
                                           Title: Senior Vice President

<PAGE>

                                  CITICORP NORTH AMERICA, INC.,

                                      by
                                         /s/ Paul J. Corona
                                        ----------------------------------------
                                        Name:  Paul J. Corona
                                        Title:  Vice President

<PAGE>

                                         BANK OF AMERICA, N.A., individually and
                                         as Co-Agent,

                                             by
                                                /s/ James Johnson
                                               ---------------------------------
                                               Name:  James Johnson
                                               Title:

<PAGE>

                                     BANK ONE, NA, individually and as Co-Agent,

                                         by
                                            /s/ Greg Smothers
                                           -------------------------------------
                                           Name:  Greg Smothers
                                           Title:   Vice President

<PAGE>

                                            SUNTRUST BANK individually and
                                             as Co-Agent,

                                                by
                                                   /s/ Steven J. Newby
                                                  ----------------------------
                                                  Name:  Steven J. Newby
                                                  Title:  Vice President

<PAGE>

                                            ABN AMRO BANK N.V.,

                                                by
                                                   /s/ Mathew Harvey
                                                  ----------------------------
                                                  Name:  Mathew Harvey
                                                  Title:  Group Vice President

                                                by
                                                   /s/ Corinna Fong
                                                  ----------------------------
                                                  Name:  Corinna Fong
                                                  Title:  Credit Officer

<PAGE>

                                  BANK OF TOKYO-MITSUBISHI, LTD.
                                  HOUSTON AGENCY,

                                      by
                                         /s/ J. Fort
                                         --------------------------------
                                         Name:  J. Fort
                                         Title:  Vice President

                                      by
                                         /s/ J. Mearns
                                         --------------------------------
                                         Name:  J. Mearns
                                         Title: VP & Manager

<PAGE>

                                      COMERICA BANK,

                                          by
                                            /s/ T. Bancroft Mattei
                                            --------------------------------
                                            Name:  T. Bancroft Mattei
                                            Title:  Account Officer

<PAGE>

                                       COMPASS BANK,

                                          by
                                            /s/ John D. Green
                                            --------------------------------
                                            Name:  John D. Green
                                            Title:  Vice President

<PAGE>

                                        GUARANTY FEDERAL BANK, F.S.B.,

                                            by
                                               /s/ Richard Menchaca
                                               -----------------------------
                                               Name: Richard Menchaca
                                               Title: Vice President

<PAGE>

                                     CREDIT SUISSE FIRST BOSTON,

                                         by
                                            /s/ William S. Lutkins
                                            ---------------------------------
                                            Name:  William S. Lutkins
                                            Title:  Vice President

                                         by
                                            /s/ Vitaly G. Butenko
                                            ---------------------------------
                                            Name:  Vitaly G. Butenko
                                            Title:  Asst. Vice President

<PAGE>

                                       FLEET NATIONAL BANK,

                                          by
                                            /s/ Sharon A. Stone
                                            ---------------------------------
                                            Name:  Sharon A. Stone
                                            Title:   Director

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