Document:

<PAGE>
                                                                    EXHIBIT 10.1

                                  $225,000,000

                                CREDIT AGREEMENT

                            Dated as of May 15, 2002

                                      among

                            ARKANSAS BEST CORPORATION

                                as the Borrower,

                  WELLS FARGO BANK TEXAS, NATIONAL ASSOCIATION

                   as Administrative Agent and Lead Arranger,

                                       and

                      FLEET NATIONAL BANK and SUNTRUST BANK

                            as Co-Syndication Agents,

                                       and

                       WACHOVIA BANK, NATIONAL ASSOCIATION

                             as Documentation Agent,

                                       and

                             THE BANKS NAMED HEREIN

                                 as the Lenders

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>

                                                                                                                Page
                                                                                                                ----
<S>                                                                                                             <C>
ARTICLE I DEFINITIONS AND ACCOUNTING TERMS........................................................................1
      Section 1.1          Certain Defined Terms..................................................................1
      Section 1.2          Computation of Time Periods...........................................................22
      Section 1.3          Accounting Terms; Changes in GAAP.....................................................22
      Section 1.4          Types of Advances.....................................................................23
      Section 1.5          Miscellaneous.........................................................................23

ARTICLE II THE ADVANCES AND THE LETTERS OF CREDIT................................................................23
      Section 2.1          The Advances..........................................................................23
      Section 2.2          Method of Borrowing...................................................................24
      Section 2.3          Fees..................................................................................28
      Section 2.4          Reduction of the Commitments..........................................................28
      Section 2.5          Repayment of Advances.................................................................29
      Section 2.6          Interest..............................................................................29
      Section 2.7          Prepayments...........................................................................31
      Section 2.8          Breakage Costs........................................................................32
      Section 2.9          Increased Costs.......................................................................33
      Section 2.10         Payments and Computations.............................................................35
      Section 2.11         Taxes.................................................................................36
      Section 2.12         Illegality............................................................................38
      Section 2.13         Letters of Credit.....................................................................38
      Section 2.14         Determination of Borrowing Base.......................................................41
      Section 2.15         Bank Replacement......................................................................42
      Section 2.16         Sharing of Payments, Etc..............................................................43
      Section 2.17         Increase of Commitments...............................................................43
      Section 2.18         Extensions of the Maturity Date.......................................................44
      Section 2.19         Agreements regarding Subsidiaries.....................................................44

ARTICLE III CONDITIONS OF LENDING................................................................................45
      Section 3.1          Conditions Precedent to Effectiveness of this Agreement...............................45
      Section 3.2          Conditions Precedent for each Borrowing or Letter of Credit...........................47

ARTICLE IV REPRESENTATIONS AND WARRANTIES........................................................................48
      Section 4.1          Corporate Existence; Subsidiaries.....................................................48
      Section 4.2          Corporate Power.......................................................................48
      Section 4.3          Authorization and Approvals...........................................................48
      Section 4.4          Enforceable Obligations...............................................................49
      Section 4.5          Financial Statements..................................................................49
      Section 4.6          True and Complete Disclosure..........................................................49
      Section 4.7          Litigation............................................................................49
      Section 4.8          Use of Proceeds.......................................................................50
      Section 4.9          Investment Company Act................................................................50
</Table>

                                      -i-
<PAGE>

<Table>
<S>                                                                                                              <C>
      Section 4.10         Taxes.................................................................................50
      Section 4.11         Pension Plans.........................................................................51
      Section 4.12         Condition of Property; Casualties.....................................................51
      Section 4.13         Insurance.............................................................................51
      Section 4.14         No Burdensome Restrictions; No Defaults...............................................51
      Section 4.15         Environmental Condition...............................................................52
      Section 4.16         Permits, Licenses, Etc................................................................53
      Section 4.17         Existing Mortgage Debt................................................................53
      Section 4.18         Property and Liens....................................................................53

ARTICLE V AFFIRMATIVE COVENANTS..................................................................................53
      Section 5.1          Compliance with Laws, Etc.............................................................53
      Section 5.2          Insurance.............................................................................53
      Section 5.3          Preservation of Corporate Existence, Etc..............................................54
      Section 5.4          Payment of Taxes, Etc.................................................................54
      Section 5.5          Visitation Rights.....................................................................54
      Section 5.6          Reporting Requirements................................................................54
      Section 5.7          Maintenance of Property...............................................................57
      Section 5.8          Ownership of ABF......................................................................57
      Section 5.9          Further Assurances....................................................................57

ARTICLE VI NEGATIVE COVENANTS....................................................................................57
      Section 6.1          Liens, Etc............................................................................57
      Section 6.2          Amendment of Material Documents.......................................................59
      Section 6.3          Agreements Restricting Distributions From Subsidiaries................................59
      Section 6.4          Merger or Consolidation; Asset Sales..................................................59
      Section 6.5          Restricted Payments...................................................................60
      Section 6.6          Investments, Loans, Advances..........................................................60
      Section 6.7          Affiliate Transactions................................................................61
      Section 6.8          Maintenance of Ownership of Subsidiaries..............................................61
      Section 6.9          No Further Negative Pledges...........................................................62
      Section 6.10         Other Businesses......................................................................62
      Section 6.11         Interest Coverage Ratio...............................................................62
      Section 6.12         Net Worth.............................................................................62
      Section 6.13         Maximum Leverage Ratio................................................................63
      Section 6.14         Capital Expenditures..................................................................63
      Section 6.15         Indebtedness..........................................................................64
      Section 6.16         Acquisition Expenditures..............................................................65

ARTICLE VII REMEDIES.............................................................................................66
      Section 7.1          Events of Default.....................................................................66
      Section 7.2          Optional Acceleration of Maturity.....................................................68
      Section 7.3          Automatic Acceleration of Maturity....................................................68
      Section 7.4          Cash Collateral Account...............................................................69
      Section 7.5          Non-exclusivity of Remedies...........................................................69
      Section 7.6          Right of Set-off......................................................................69
</Table>

                                      -ii-
<PAGE>
<Table>
<S>                                                                                                              <C>
ARTICLE VIII AGENCY AND ISSUING BANK PROVISIONS..................................................................70
      Section 8.1          Authorization and Action..............................................................70
      Section 8.2          Agent's Reliance, Etc.................................................................70
      Section 8.3          The Agent and Its Affiliates..........................................................71
      Section 8.4          Bank Credit Decision..................................................................71
      Section 8.5          Indemnification.......................................................................71
      Section 8.6          Successor Agent and Issuing Banks.....................................................71
      Section 8.7          Co-Syndication Agents.................................................................72
      Section 8.8          Documentation Agent...................................................................72

ARTICLE IX MISCELLANEOUS.........................................................................................72
      Section 9.1          Amendments, Etc.......................................................................72
      Section 9.2          Notices, Etc..........................................................................73
      Section 9.3          No Waiver; Remedies...................................................................73
      Section 9.4          Costs and Expenses....................................................................73
      Section 9.5          Binding Effect........................................................................73
      Section 9.6          Bank Assignments and Participations...................................................74
      Section 9.7          Indemnification.......................................................................76
      Section 9.8          Execution in Counterparts.............................................................77
      Section 9.9          Survival of Representations, Etc......................................................77
      Section 9.10         Severability..........................................................................77
      Section 9.11         Commercial Loans......................................................................77
      Section 9.12         Usury Not Intended....................................................................77
      Section 9.13         Governing Law.........................................................................78
      Section 9.14         Consent to Jurisdiction...............................................................78
      Section 9.15         Banks not in Control..................................................................78
      Section 9.16         Headings Descriptive..................................................................78
      Section 9.17         WAIVERS OF JURY TRIAL.................................................................78
      Section 9.18         Binding Arbitration...................................................................79
      Section 9.19         ENTIRE AGREEMENT......................................................................81
</Table>

                                     -iii-
<PAGE>

EXHIBITS:

Exhibit A      -       Form of Assignment and Acceptance
Exhibit B      -       Form of Borrowing Base Certificate
Exhibit C      -       Form of Compliance Certificate
Exhibit D      -       Form of Guaranty
Exhibit E      -       Form of Increased Commitment Agreement
Exhibit F      -       Form of Notice of Borrowing
Exhibit G      -       Form of Notice of Conversion or Continuation
Exhibit H      -       Form of Revolving Note
Exhibit I      -       Form of Swingline Note
Exhibit J      -       Form of Withholding Tax Certification
Exhibit K      -       Form of Borrower's/Guarantors' Counsel Opinion

SCHEDULES:

Schedule 1.1(a)        -    Commitments
Schedule 1.1(b)        -    Letters of Credit Outstanding
Schedule 1.1(c)        -    Certain Subsidiaries
Schedule 4.1           -    Subsidiaries
Schedule 4.7           -    Litigation
Schedule 4.10(a)       -    Tax Disclosure
Schedule 4.10(b)       -    Tax Returns; Waivers of Statute of Limitations
Schedule 6.1           -    Existing Liens and Secured Indebtedness
Schedule 6.7           -    Certain Intercompany Arrangements
Schedule 6.9           -    Certain Negative Pledges
Schedule 6.15          -    Outstanding Indebtedness
Schedule 6.16          -    Acquisition Expenditures
Schedule 9.2           -    Notice Information for Banks

                                      -iv-
<PAGE>

                                CREDIT AGREEMENT

         This Credit Agreement dated as of May 15, 2002 is among ARKANSAS BEST
         CORPORATION, a Delaware corporation, as the Borrower, WELLS FARGO BANK
         TEXAS, NATIONAL ASSOCIATION, as Agent and lead arranger, FLEET NATIONAL
         BANK and SUNTRUST BANK, as Co-Syndication Agents, WACHOVIA BANK,
         NATIONAL ASSOCIATION, as Documentation Agent, and the BANKS (as defined
         hereinbelow).

         The parties hereto do hereby agree as follows:

                                   ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

         Section 1.1 Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (unless otherwise indicated,
such meanings to be equally applicable to both the singular and plural forms of
the terms defined):

                  "Accession Agreement" means an Accession Agreement in the form
         attached to the Guaranty as Annex 2 thereto, which agreement causes the
         Person executing and delivering the same to the Agent to become a party
         to the Guaranty.

                  "Acquisition Expenditures" means, for any period, the
         aggregate of all expenditures and costs of the Borrower or any of its
         Subsidiaries paid in cash, debt securities, Property, other than common
         stock of the Borrower, or the assumption of Indebtedness during such
         period for (a) the purchase or acquisition of assets of a business of
         another Person other than the Borrower or any of its Subsidiaries or
         (b) the acquisition of stock, partnership, joint venture interests or
         other equity interests in any Person other than the Borrower or any of
         its Subsidiaries.

                  "Additional Permitted Indebtedness" has the meaning set forth
         in Section 6.15(d).

                  "Adjusted EBITDA" means EBITDA as adjusted, when applicable,
         to include (a) the historical financial results for the Calculation
         Period of a Subsidiary or a business acquired by the Borrower or any of
         its Subsidiaries pursuant to an acquisition consummated during the
         Calculation Period, in each case if, but only if, such Subsidiary or
         business acquired continues to be owned by the Borrower or its
         Subsidiaries as of the Calculation Day, and (b) any applicable
         adjustments pursuant to Article 11, Regulation S-X promulgated by the
         Securities and Exchange Commission.

                  "Adjustment Event" has the meaning set forth in Section
         2.14(b).

                  "Advance" means either a Revolving Advance or a Swingline
         Advance, any such Revolving Advance being either a Base Rate Advance or
         a Eurodollar Rate Advance.

                                      -1-
<PAGE>

                  "Affected Bank" has the meaning set forth in Section 2.15(a).

                  "Affiliate" means, as to any Person, any other Person that,
         directly or indirectly, through one or more intermediaries, controls,
         is controlled by or is under common control with such Person or any
         Subsidiary of such Person. The term "control" (including the terms
         "controlled by" or "under common control with") 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 ownership of
         a Control Percentage, by contract or otherwise.

                  "Agent" means Wells Fargo Bank Texas, National Association in
         its capacity as administrative agent for the Banks pursuant to Article
         VIII and any successor administrative agent appointed pursuant to
         Section 8.6.

                  "Agent's Fee Letter" means the letter agreement dated as of
         March 15, 2002 between the Borrower and Wells Fargo.

                  "Agreement" means this Credit Agreement, as it may be amended,
         restated, supplemented, renewed, extended or otherwise modified from
         time to time in accordance with its terms (including, without
         limitation, as it may be supplemented by any Increase Commitment
         Agreement).

                  "Applicable Lending Office" means, with respect to each Bank,
         such Bank's Domestic Lending Office in the case of a Base Rate Advance
         and such Bank's Eurodollar Lending Office in the case of a Eurodollar
         Rate Advance.

                  "Applicable Margin" means, subject to the terms and provisions
         of this definition, at any time with respect to any Revolving Advances,
         facility fees or letter of credit fees hereunder, the following
         percentages determined as a function of the ratings by S&P or Moody's,
         applicable on such date, of the Borrower's Senior Debt as set forth
         below:

<Table>
<Caption>
                                    Senior
                                  Debt Rating              Eurodollar                                       Letter of
                  Tier      -------------------------         Rate          Base Rate        Facility        Credit
                 Level         S&P           Moody's        Advances         Advances          Fees           Fees
               ---------    ----------    -----------      ----------       ---------        --------       ---------
<S>                         <C>           <C>              <C>              <C>              <C>            <C>
                    I            A-            A3            0.325%            0.000%         0.125%         0.325%
                             or higher      or higher

                   II          BBB+           Baa1           0.575%            0.000%         0.150%         0.575%

                  III          BBB            Baa2           0.825%            0.000%         0.175%         0.825%

                   IV          BBB-           Baa3           0.925%            0.000%         0.200%         0.925%

                    V          BB+            Ba1            1.075%            0.000%         0.300%         1.075%

                               BB             Ba2
                   VI          or             or             1.350%            0.000%         0.400%         1.350%
                              less           less
</Table>

                                      -2-
<PAGE>

         If (with respect to the table above) the ratings fall within different
         Tier Levels, the Applicable Margin shall be based on the numerically
         lower of the two Tier Levels (where Tier I is the numerically lowest
         such Tier and Tier VI is the numerically highest such Tier) unless the
         numerically higher Tier Level is two or more Tier Levels above the
         numerically lower Tier Level, in which case the Tier Level which is one
         level above the numerically lower Tier Level will apply. If the ratings
         established by Moody's or S&P for the Borrower's Senior Debt change
         (other than as a result of a change in the rating system of Moody's or
         S&P), such change shall be effective as of the date on which it is
         first announced by the applicable rating agency. If the rating system
         of Moody's and/or S&P shall change when a rating for the Borrower's
         Senior Debt exists from both Moody's and S&P, then the Moody's or S&P,
         respectively, "Senior Debt Rating" as referred to in the table above
         shall be, if and to the extent objectively determinable, changed to the
         equivalent new rating with the effect that such change in the rating
         system shall have no effect on the Applicable Margin that would have
         been determined under the table above if such rating change had not
         occurred or, if and to the extent the same is not objectively
         determinable, then the Applicable Margin shall be based on the rating
         of the agency that has not changed its rating system or, if both
         agencies have changed their rating system, the agency as to which the
         change is objectively determinable or, if the change is not objectively
         determinable as to either agency, then the Applicable Margin shall be
         determined as provided in the last sentence of this definition. If
         either such rating agency shall cease to rate corporate debt
         obligations of the Borrower, then the Applicable Margin shall be based
         on the rating of the agency that continues to rate the corporate debt
         obligations of the Borrower. If both Moody's and S&P shall change their
         rating system and the effect thereof is not objectively determinable as
         explained above, cease rating the Borrower's Senior Debt or cease to be
         in the business of rating corporate debt obligations, then the Borrower
         and the Agent shall select a substitute nationally recognized
         statistical rating agency or agencies, as the case may be; provided,
         however, that if the Borrower and the Agent cannot mutually agree on
         such a substitute rating agency, then a substitute nationally
         recognized statistical rating agency or agencies, as the case may be,
         shall be selected and approved by the Borrower, the Agent and the
         Majority Banks; provided, further, however, that if the Borrower, the
         Agent and the Majority Banks cannot mutually agree on such a substitute
         rating agency, then the Applicable Margin shall be the rate then most
         recently determined in accordance with this definition.

                  "Assignment and Acceptance" means an assignment and acceptance
         entered into by a Bank and an Eligible Assignee, and accepted by the
         Agent, in substantially the form of the attached Exhibit A.

                  "Banks" means each of the lenders party to this Agreement,
         including without limitation each Eligible Assignee that shall become a
         party to this Agreement pursuant to Section 9.6.

                  "Base Rate" means, on any date, the interest rate per annum
         equal to the greater of (a) the Federal Funds Rate in effect on such
         day plus one-half of one percent (0.5%) or (b) the Prime Rate in effect
         on such day. Any change in the Base Rate due to a change in the

                                      -3-
<PAGE>

         Federal Funds Rate or the Prime Rate shall be effective on the
         effective day of such change in the Federal Funds Rate or the Prime
         Rate, respectively.

                  "Base Rate Advance" means an Advance which bears interest as
         provided in Section 2.6(a).

                  "Borrower" means Arkansas Best Corporation, a Delaware
         corporation, and any successor, legal representative or permitted
         assignee thereof.

                  "Borrowing" means a Revolving Borrowing or the making of a
         Swingline Advance by Wells Fargo.

                  "Borrowing Base" means an amount (without duplication) equal
         to the remainder of (a) the sum of (i) 75% of the Net Depreciated Value
         of Eligible Revenue Equipment, plus (ii) 85% of the aggregate
         outstanding amount of Eligible Receivables, plus (iii) 50% of the Net
         Depreciated Value of Eligible Other Equipment, plus (iv) 65% of the
         Real Estate Value of Eligible Real Property, minus (b) the aggregate
         outstanding principal amount of all unsecured Total Funded Debt of the
         Borrower and/or any of its Subsidiaries other than such Total Funded
         Debt which constitutes a part of the Obligations.

                  "Borrowing Base Certificate" means a certificate of the
         Borrower in substantially the form of the attached Exhibit B,
         appropriately completed.

                  "Borrowing Base Determination Date" means any date the
         Borrowing Base is determined in accordance with Section 2.14.

                  "Business Day" means a day of the year on which banks are not
         required or authorized to close in New York City or Dallas, Texas and,
         if the applicable Business Day relates to any Eurodollar Rate Advances,
         on which dealings are carried on by banks in the London interbank
         market.

                  "Calculation Day" means the last day of each fiscal quarter.

                  "Calculation Period" means, with respect to any Calculation
         Day, the period of the four consecutive fiscal quarters ending on such
         day.

                  "Canadian Subsidiaries" means, collectively, ABF Freight
         System (B.C.) Ltd., a British Columbia corporation, ABF Freight System
         Canada, Ltd., a Canadian corporation, and CaroTrans Canada, Ltd., a
         Canadian corporation.

                  "Capital Expenditure" means any payment made directly or
         indirectly for the purpose of acquiring or constructing fixed assets,
         real property or equipment which in accordance with GAAP would be added
         as a debit to the fixed asset account of such Person making such
         expenditure, including, without limitation, amounts paid or payable for
         such purpose under any conditional sale or other title retention
         agreement or under any Capital Lease, but

                                      -4-
<PAGE>

         excluding repairs of Property made during such period in the normal and
         ordinary course of business in keeping with past practices; provided,
         however, that, for purposes of this Agreement, (a) Capital Expenditures
         of the Borrower and its Subsidiaries shall be determined on a
         Consolidated basis in accordance with GAAP (and, accordingly,
         intercompany Capital Expenditures between or among members of the
         consolidated group shall be excluded as and to the extent required by
         GAAP) and (b) Capital Expenditures of the Borrower and its Subsidiaries
         shall exclude payroll and benefit costs required to be capitalized in
         accordance with GAAP as internally developed software.

                  "Capital Lease" means, for any Person, any lease of any
         Property (whether real, personal or mixed) by that Person as lessee
         which, in accordance with GAAP, is or should be accounted for as a
         capital lease on the balance sheet of that Person.

                  "Capital Stock" means, for any Person, corporate stock and any
         and all securities, shares, partnership interests (whether general,
         limited, special or other partnership interests), limited liability
         company interests, membership interests, equity interests,
         participations, rights or other equivalents (however designated) of
         corporate stock or any of the foregoing issued by such Person and
         includes, without limitation, securities exchangeable for or
         convertible into Capital Stock and rights, warrants or options to
         acquire Capital Stock.

                  "Cash Collateral Account" means a special cash collateral
         account containing cash deposited pursuant to Section 2.7(c), 7.2(b) or
         7.3(b) to be maintained at the Agent's office in accordance with
         Section 7.4.

                  "CERCLA" means the Comprehensive Environmental Response,
         Compensation, and Liability Act of 1980, as amended, state and local
         analogs, and all rules and regulations and requirements thereunder in
         each case as now or hereafter in effect.

                  "Closing Date" means May 15, 2002.

                  "Code" means the Internal Revenue Code of 1986, as amended,
         and any successor statute.

                  "Collateral" shall mean any Property in which the Agent, for
         and on behalf of the Banks, has been granted, or is required to be
         granted, a Lien as security for the payment or performance of the
         Obligations.

                  "Commitment" means, with respect to any Bank, the amount set
         forth opposite such Bank's name on Schedule 1.1(a) as its Commitment,
         or if such Bank has entered into any Assignment and Acceptance, the
         amount set forth for such Bank as its Commitment in the Register
         maintained by the Agent pursuant to Section 9.6(c), as such amount may
         be reduced pursuant to Section 2.4 or increased pursuant to Section
         2.15(b) or 2.17.

                  "Commitment Supplement" has the meaning set forth in Section
         2.17.

                                      -5-
<PAGE>

                  "Compliance Certificate" means a certificate of the Borrower
         in substantially the form of the attached Exhibit C, appropriately
         completed.

                  "Consolidated" refers to the consolidation of the accounts of
         the Borrower and its Subsidiaries in accordance with GAAP, including,
         when used in reference to the Borrower, principles of consolidation
         consistent with those applied in the preparation of the Financial
         Statements.

                  "Control Percentage" means, with respect to any Person, the
         percentage of the outstanding Capital Stock of such Person having
         ordinary voting power which gives the direct or indirect holder of such
         stock the power to elect a majority of the board of directors (or
         individuals or body or group of individuals performing the same or
         substantially similar functions as the board of directors of a
         corporation) of such Person.

                  "Controlled Group" means all members of a controlled group of
         corporations and all trades or businesses (whether or not incorporated)
         under common control which, together with the Borrower, are treated as
         a single employer under Section 414 of the Code.

                  "Convert", "Conversion" and "Converted" each refers to a
         conversion of Advances of one Type into Advances of another Type
         pursuant to Section 2.2(b).

                  "Co-Syndication Agents" means Fleet National Bank and SunTrust
         Bank, in their capacities as co-syndication agents for the Banks.

                  "Credit Documents" means this Agreement, the Notes, the
         Guaranty, the Foreign Stock Pledge Agreements, if any are required
         hereunder, the Agent's Fee Letter and each other agreement, instrument
         or document executed by the Borrower or any of its Subsidiaries at any
         time in connection with this Agreement.

                  "Cumulative Net Income" has the meaning set forth in Section
         6.12.

                  "Default" means (a) an Event of Default or (b) any event or
         condition which with notice or lapse of time or both would, unless
         cured or waived, become an Event of Default.

                  "Documentation Agent" means Wachovia Bank, National
         Association, in its capacity as documentation agent for the Banks.

                  "Dollar Equivalent" means the equivalent in another currency
         of an amount in Dollars to be determined by reference to the rate of
         exchange quoted by the Agent, at 10:00 a.m. (Dallas, Texas time) on the
         date of determination, for the spot purchase in the foreign exchange
         market of such amount of Dollars with such other currency.

                  "Dollars" and "$" means lawful money of the U.S.

                                      -6-
<PAGE>

                  "Domestic Lending Office" means, with respect to any Bank, the
         office of such Bank specified as its "Domestic Lending Office" opposite
         its name on Schedule 9.2 or such other office of such Bank as such Bank
         may from time to time specify to the Borrower and the Agent.

                  "Domestic Subsidiary" means a Subsidiary of the Borrower
         formed under the laws of the U.S. or any state or territory thereof.

                  "EBITDA" means, as to any Person and its Consolidated
         Subsidiaries and for any period for which such amount is being
         determined, without duplication, the sum of the following for such
         Person for such period in accordance with GAAP (a) Consolidated Net
         Income plus (b) Consolidated Interest Expense, plus (c) income and
         franchise taxes to the extent deducted in determining Consolidated Net
         Income, plus (d) depreciation and amortization expense to the extent
         deducted in determining Consolidated Net Income.

                  "Effective Date" means the date all of the conditions
         precedent set forth in Section 3.1 have been satisfied or waived by the
         Agent and the Banks, and the Agent shall have confirmed the same in
         writing to the Borrower and the Banks.

                  "Eligible Assignee" means (a) a commercial bank organized
         under the laws of the U.S., or any State thereof, and having primary
         capital of not less than $250,000,000 and approved by the Agent, the
         Issuing Banks and (provided no Default has occurred and is continuing)
         the Borrower, which approvals will not be unreasonably withheld, (b) a
         commercial bank organized under the laws of any other country which is
         a member of the Organization for Economic Cooperation and Development
         and having primary capital (or its equivalent) of not less than
         $250,000,000 (or its Dollar Equivalent) that is approved by the Agent,
         the Issuing Banks and (provided no Default has occurred and is
         continuing) the Borrower, which approvals will not be unreasonably
         withheld, (c) a Bank that is approved by the Agent and the Borrower,
         which approvals will not be unreasonably withheld or (d) an Affiliate
         of the respective assigning Bank, without approval of any Person but
         otherwise meeting the eligibility requirements of clause (a) or (b)
         above.

                  "Eligible Other Equipment" means, as of any Borrowing Base
         Determination Date, all Other Equipment which is owned by the Borrower
         or any Guarantor other than a Canadian Subsidiary on such date and was
         so owned on the date of the most recent Borrowing Base Certificate
         delivered to the Banks.

                  "Eligible Real Property" means, as of any Borrowing Base
         Determination Date, any real property located in the U.S. which is
         owned by the Borrower or any Guarantor on such date and was so owned on
         the date of the most recent Borrowing Base Certificate delivered to the
         Banks.

                  "Eligible Receivables" means, as of any Borrowing Base
         Determination Date, all Receivables of the Borrower or any Guarantor
         other than a Canadian Subsidiary as of the date of the most recent
         Borrowing Base Certificate delivered to the Banks, except:

                                      -7-
<PAGE>

                       (a) any Receivable which remains unpaid more than 90 days
         after the date of the original invoice for such Receivable;

                       (b) any Receivable which is from an obligor which is to
         the Borrower's or any Guarantor's knowledge Insolvent;

                       (c) any Receivable which is not free and clear of all
         Liens except (i) Liens, if any, in favor of the Agent for the benefit
         of the Banks securing the Obligations, (ii) Permitted Liens on
         Receivables of a Intermodal Subsidiary pursuant to Section 6.1(l) to
         the extent the aggregate obligations secured by such Liens do not
         exceed $3,000,000 in the aggregate, or (iii) nonconsensual Liens which
         are permitted to exist in accordance with Section 6.1;

                       (d) any Receivable which does not arise under a contract
         representing the legal, valid and binding payment obligation of the
         obligor thereon, enforceable by the Borrower or such Guarantor in
         accordance with its terms;

                       (e) any Receivable which together with the related
         contract does not comply in all material respects with all Legal
         Requirements of the jurisdictions where it originated;

                       (f) any Receivable which does not provide, according to
         its original terms, that the amount payable thereunder will be due
         within 60 days following the date upon which the related obligor became
         obligated thereon;

                       (g) any Receivable which is payable by an obligor which
         is located in any jurisdiction outside of the U.S., Puerto Rico or
         Canada;

                       (h) any Receivable which is payable by an Affiliate, an
         officer, director or employee of the Borrower; and

                       (i) any Receivable to the extent such Receivable is
         subject to setoff, counterclaim, defense, allowance, dispute or
         adjustment other than allowances or discounts in the ordinary course of
         business consistent with past practices.

                  "Eligible Revenue Equipment" means, as of any Borrowing Base
         Determination Date, all Revenue Equipment which is owned by the
         Borrower or any Guarantor other than a Canadian Subsidiary as of such
         date and was so owned as of the date of the most recent Borrowing Base
         Certificate delivered to the Banks.

                  "Environment" or "Environmental" shall have the meanings set
         forth in 42 U.S.C. Section 9601(8) (1998).

                  "Environmental Claim" means any third party (including
         governmental agencies and employees) action, lawsuit, claim, demand,
         regulatory action or proceeding, order, decree,

                                      -8-
<PAGE>

         consent agreement or notice of potential or actual responsibility or
         violation (including claims or proceedings under the Occupational
         Safety and Health Acts or similar laws or requirements relating to
         health or safety of employees) which seeks to impose liability under
         any Environmental Law.

                  "Environmental Law" means all Legal Requirements arising from,
         relating to or in connection with the Environment, health or safety,
         including without limitation CERCLA, relating to (a) pollution,
         contamination, injury, destruction, loss, protection, cleanup,
         reclamation or restoration of the air, surface water, groundwater, land
         surface or subsurface strata, or other natural resources; (b) solid,
         gaseous or liquid waste generation, treatment, processing, recycling,
         reclamation, cleanup, storage, disposal or transportation; (c) exposure
         to pollutants, contaminants, hazardous, medical, infectious or toxic
         substances, materials or wastes; (d) the safety or health of employees;
         or (e) the manufacture, processing, handling, transportation,
         distribution in commerce, use, storage or disposal of hazardous,
         medical, infectious or toxic substances, materials or wastes.

                  "Environmental Permit" means any permit, license, order,
         approval or other authorization under Environmental Law.

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

                  "Eurocurrency Liabilities" has the meaning assigned to that
         term in Regulation D of the Federal Reserve Board (or any successor),
         as in effect from time to time.

                  "Eurodollar Lending Office" means, with respect to any Bank,
         the office of such Bank specified as its "Eurodollar Lending Office"
         opposite its name on Schedule 9.2 (or, if no such office is specified,
         its Domestic Lending Office) or such other office of such Bank as such
         Bank may from time to time specify to the Borrower and the Agent.

                  "Eurodollar Rate" means, for the Interest Period for each
         Eurodollar Rate Advance comprising part of the same Borrowing, the
         interest rate per annum (rounded upward to the nearest whole multiple
         of 1/100 of 1% per annum) equal to (a) the rate, set forth on the
         applicable Dow Jones Market Service (formerly known as the Telerate
         Page) as the London interbank offered rate, for deposits in Dollars at
         approximately 11:00 a.m. (London, England time) two Business Days
         before the first day of such Interest Period and for a period equal to
         such Interest Period, provided, that, if no such quotation appears on
         the applicable Dow Jones Market Service (formerly known as the Telerate
         Page), the Eurodollar Rate shall be an interest rate per annum equal to
         the rate per annum at which deposits in Dollars are offered by the
         principal office of Wells Fargo in London, England to prime banks in
         the London interbank market at approximately 11:00 a.m. (London,
         England time) two Business Days before the first day of such Interest
         Period, in the case of Advances made in Dollars, in each case in an
         amount substantially equal to Wells Fargo's Eurodollar Rate Advance
         comprising part of such Borrowing and for a period equal to such
         Interest Period divided by (b) one minus the applicable statutory
         reserve requirements of the Agent, expressed as a

                                      -9-
<PAGE>

         decimal (including without duplication or limitation, basic,
         supplemental, marginal and emergency reserves), from time to time in
         effect under regulations issued by the Federal Reserve Board
         (including, without limitation, Regulation D) or any other Governmental
         Authority during such Interest Period. It is agreed that for purposes
         of this definition, Eurodollar Rate Advances made hereunder shall be
         deemed to constitute Eurocurrency Liabilities as defined in Regulation
         D and to be subject to the reserve requirements of Regulation D. The
         determination and calculation of the Eurodollar Rate and each component
         thereof by the Agent shall be conclusive and binding, absent manifest
         error.

                  "Eurodollar Rate Advance" means an Advance which bears
         interest as provided in Section 2.6(b).

                  "Events of Default" has the meaning set forth in Section 7.1.

                  "Existing Bank" has the meaning set forth in Section 2.17.

                  "Existing Credit Agreement" means the Credit Agreement dated
         as of June 12, 1998, as amended, among the Borrower, the banks party
         thereto, Wells Fargo Bank (Texas), N.A., as administrative agent and
         co-documentation agent, and Bank of America National Trust and Savings
         Association, as co-documentation agent.

                  "Existing Lien" means a mortgage Lien on real Property which
         is existing on the Effective Date and which is identified on Schedule
         6.1.

                  "Expiration Date" means, with respect to any Letter of Credit,
         the date on which such Letter of Credit will expire or terminate in
         accordance with its terms.

                  "Federal Funds Rate" means, for any period, a fluctuating
         interest rate per annum (rounded upward, to the nearest whole multiple
         of 1/100 of 1% per annum) equal, for each day during such period, to
         the weighted average of the rates on overnight Federal funds
         transactions with members of the Federal Reserve System arranged by
         Federal funds brokers, as published for such day (or, if such day is
         not a Business Day, for the next preceding Business Day) by the Federal
         Reserve Bank of New York, or, if such rate is not so published for any
         day which is a Business Day, the average of the quotations for any such
         day on such transactions received by the Agent from three Federal funds
         brokers of recognized standing selected by it.

                  "Federal Reserve Board" means the Board of Governors of the
         Federal Reserve System or any of its successors.

                  "Financial Statements" means the financial statements
         described in Section 4.5.

                  "Foreign Stock Pledge Agreements" has the meaning set forth in
         Section 2.19(b).

                                      -10-
<PAGE>

                  "Foreign Subsidiary" means a Subsidiary of the Borrower other
         than a Domestic Subsidiary.

                  "GAAP" means U.S. generally accepted accounting principles as
         in effect from time to time, applied on a basis consistent with the
         requirements of Section 1.3.

                  "G.I. Leased Properties" means the three California terminal
         facilities that are owned by a Subsidiary of the Borrower and leased to
         G.I. Trucking Company ("G.I. Trucking") for a period of up to four
         years from August 1, 2001, the date the Borrower sold G.I. Trucking,
         and which terminal facilities G.I. Trucking has the option, at any time
         during the four-year lease term, to purchase for $19,500,000.

                  "Governmental Authority" means any foreign governmental
         authority, the U.S., any state of the U.S. and any subdivision of any
         of the foregoing, and any agency, department, commission, board,
         authority or instrumentality, bureau or court having jurisdiction over
         any Bank, the Borrower or the Borrower's Subsidiaries or any of their
         respective Properties.

                  "Governmental Proceedings" means any action or proceedings by
         or before any Governmental Authority, including, without limitation,
         the promulgation, enactment or entry of any Legal Requirement.

                  "Guarantor" means each Domestic Subsidiary that executes, or
         is required by this Agreement to execute, the Guaranty, and
         "Guarantors" means such Persons collectively. The Guarantors on the
         Effective Date are identified on Schedule 4.1.

                  "Guaranty" means the Subsidiary Guaranty and Contribution
         Agreement dated of even date herewith in substantially the form of the
         attached Exhibit D, appropriately completed, executed by the Domestic
         Subsidiaries, as it may be amended hereafter in accordance with its
         terms.

                  "Hazardous Substance" means the substances identified as such
         pursuant to CERCLA and those regulated under any other Environmental
         Law, including without limitation pollutants, contaminants, petroleum,
         petroleum products, radionuclides, radioactive materials, and medical
         and infectious waste.

                  "Hazardous Waste" means the substances regulated as such
         pursuant to any Environmental Law.

                  "Increase Amount" means the total amount by which the Borrower
         desires to increase the aggregate Commitments pursuant to Section 2.17,
         which amount shall be (a) an amount not less than the lesser of (i)
         $275,000,000 minus the then current amount of the aggregate Commitments
         or (ii) $10,000,000, and (b) an amount that is either (i) an integral
         multiple of $5,000,000 or (ii) if (but only if) the amount of the
         aggregate Commitments then in effect is $270,000,000 or more, an amount
         equal to the remainder of $275,000,000 minus the amount of the
         aggregate Commitments then in effect.

                                      -11-
<PAGE>

                  "Increase Notice" means a written notice sent by the Borrower
         to the Agent instructing the Agent that the Borrower wishes to increase
         the aggregate Commitments hereunder pursuant to the terms and
         conditions of Section 2.17, which notice shall include (a) the identity
         of the Supplementing Banks, (b) the Commitment Supplement of each
         Existing Bank, if any, (c) the New Commitment of each New Bank, if any,
         (d) the aggregate amount of the Commitment Supplements and the New
         Commitments, (e) the requested Commitment of each Existing Bank and New
         Bank, as the case may be, after giving effect to such requested
         increase, and (f) the Increase Amount.

                  "Increased Commitment Agreement" means an Increased Commitment
         Agreement in substantially the form of the attached Exhibit E,
         appropriately completed, executed by the Borrower, the Agent and the
         other lending institutions party thereto.

                  "Indebtedness" means (without duplication), at any time and
         with respect to any Person:

                        (a) indebtedness of such Person for borrowed money
         (whether by loan or the issuance and sale of debt securities) or for
         the deferred purchase price of property or services purchased and all
         other obligations of such Person evidenced by bonds, notes, debentures
         or other similar instruments, but excluding (i) amounts constituting
         trade payables or bank drafts payable within 120 days, (ii) accrued
         liabilities (including liability amounts for compensation, compensated
         absences, workers' compensation, property damage and liability claims
         and other similar liabilities) which are required to be accrued on the
         balance sheet of such Person in accordance with GAAP and (iii) other
         liabilities (including liability amounts for pensions, deferred
         compensation agreements, derivative instruments and other similar
         liabilities) which are required to appear as liabilities on the balance
         sheet of such Person in accordance with GAAP, in each case (i.e., as to
         each of clauses (i), (ii) and (iii) preceding) only if and to the
         extent the same arise in the ordinary course of business and are not
         evidenced by bonds, notes, debentures or other similar instruments;

                       (b) indebtedness of others which such Person has directly
         or indirectly assumed or guaranteed or otherwise provided credit
         support therefor;

                       (c) indebtedness of others secured by a Lien on assets of
         such Person, whether or not such Person shall have assumed such
         indebtedness;

                       (d) obligations of such Person in respect of letters of
         credit, surety bonds, acceptance facilities or drafts or similar
         instruments issued or accepted by banks and other financial
         institutions for the account of such Person, other than amounts
         constituting trade payables or bank drafts payable within 120 days and
         arising in the ordinary course of business (provided, however, that the
         foregoing shall not constitute "Indebtedness" if and to the extent they
         constitute only contingent obligations, such as the undrawn portion of
         outstanding letters of credit, surety bonds or other similar
         instruments which are not required to be recorded on a balance sheet
         prepared in accordance with GAAP);

                                      -12-
<PAGE>

                       (e) obligations of such Person under Capital Leases; and

                       (f) the outstanding amount of preferred trust securities
         or other similar arrangements.

                  "Insolvent" means, with respect to any Person, (a) the present
         fair saleable value of such Person's assets is less than the amount
         that will be required to pay its probable liability on its then
         existing legal liabilities, either matured or unmatured, liquidated or
         unliquidated, absolute, fixed or contingent, as they become absolute or
         matured, or (b) the property remaining in its hands is an unreasonably
         small capital for the business or transaction in which it is engaged or
         is about to engage.

                  "Interest Expense" means, as to any Person and for any period,
         and without duplication, all interest on debt or other Indebtedness of
         such Persons accrued during such period, including the interest portion
         of payments under Capital Leases, and the amortization of deferred
         financing costs and letter of credit fees with respect to such debt or
         other Indebtedness during such period, in each case in accordance with
         GAAP.

                  "Interest Period" means, for each Eurodollar Rate Advance
         comprising part of the same Borrowing, the period commencing on the
         date of such Advance or the date of the Conversion of any Base Rate
         Advance into such an Advance and ending on the last day of the period
         selected by the Borrower pursuant to the provisions below and Section
         2.2 and, thereafter, each subsequent period commencing on the last day
         of the immediately preceding Interest Period and ending on the last day
         of the period selected by the Borrower pursuant to the provisions below
         and Section 2.2. The duration of each such Interest Period shall be
         one, two or three weeks (with respect to the initial Advances only) or
         28 days or one, two, three or six months, in each case as the Borrower
         may, upon notice received by the Agent not later than 11:00 a.m.
         (Dallas, Texas time) on the third Business Day prior to the first day
         of such Interest Period (except as otherwise provided in Section
         2.2(a)), select; provided, however, that:

                       (a) Interest Periods commencing on the same date for
         Advances comprising part of the same Borrowing shall be of the same
         duration;

                       (b) whenever the last day of any Interest Period would
         otherwise occur on a day other than a Business Day, the last day of
         such Interest Period shall be extended to occur on the next succeeding
         Business Day, provided that if such extension would cause the last day
         of such Interest Period to occur in the next following calendar month,
         the last day of such Interest Period shall occur on the next preceding
         Business Day; and

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

                                      -13-
<PAGE>

         month in which it would have ended if there were a numerically
         corresponding day in such calendar month.

                  "Intermodal Subsidiary" means any Subsidiary of the Borrower
         which contracts for the benefit of its customers the railroad shipment
         of such customer's goods with any railroad company.

                  "Issuing Bank" means Wells Fargo or any Bank which agrees at
         the request of the Borrower to act as issuer of a Letter of Credit
         hereunder, in each case in its capacity as issuer of a Letter of
         Credit, or any Bank acting as a successor issuing bank pursuant to
         Section 8.6, and "Issuing Banks" means, collectively, all of such
         Banks.

                  "Legal Requirement" means any law, statute, ordinance, decree,
         requirement, order, judgment, rule or regulation (or official
         interpretation of any of the foregoing) of, or the terms of any license
         or permit issued by, any Governmental Authority.

                  "Letter of Credit" means, individually, any standby letter of
         credit issued by an Issuing Bank which is subject to this Agreement,
         including, without limitation, the letters of credit described on
         Schedule 1.1(b), and "Letters of Credit" means all such letters of
         credit collectively.

                  "Letter of Credit Documents" means, with respect to any Letter
         of Credit, such Letter of Credit and any agreements, documents and
         instruments entered into in connection with or relating to such Letter
         of Credit.

                  "Letter of Credit Exposure" means, at any time, the sum of (a)
         the aggregate undrawn maximum face amount of each Letter of Credit at
         such time and (b) the aggregate unpaid amount of all Reimbursement
         Obligations at such time.

                  "Letter of Credit Obligations" means any obligations of the
         Borrower under this Agreement in connection with the Letters of Credit.

                  "Leverage Ratio" means the ratio of the Borrower's Total
Funded Debt to its Adjusted EBITDA.

                  "Lien" means any mortgage, lien, pledge, charge, deed of
         trust, security interest, encumbrance or other type of preferential
         arrangement to secure or provide for the payment of any obligation of
         any Person, whether arising by contract, operation of law or otherwise
         (including, without limitation, the interest of a vendor or lessor
         under any conditional sale agreement, Capital Lease or other title
         retention agreement).

                  "Liquid Investments" means:

                       (a) direct obligations of, or obligations the principal
         of and interest on which are unconditionally guaranteed by, the U.S. or
         an agency of the U.S.;

                                      -14-
<PAGE>

                       (b) (i) negotiable or nonnegotiable certificates of
         deposit, time deposits or other similar banking arrangements maturing
         within 180 days from the date of acquisition thereof ("bank debt
         securities"), issued by (A) any Bank or (B) any other bank or trust
         company which has a combined capital surplus and undivided profit of
         not less than $250,000,000 or the Dollar Equivalent thereof, if at the
         time of deposit or purchase, such bank debt securities are rated not
         less than "A" (or the then equivalent) by the rating service of S&P or
         Moody's, and (ii) commercial paper issued by (A) any Bank or (B) any
         other Person if at the time of purchase such commercial paper is rated
         not less than "A-2" (or the then equivalent) by the rating service of
         S&P or not less than "P-2" (or the then equivalent) by the rating
         service of Moody's, or, upon the discontinuance of both of such
         services, such other nationally recognized rating service or services,
         as the case may be, as shall be selected by the Borrower with the
         consent of the Majority Banks;

                       (c) repurchase agreements relating to investments
         described in clauses (a) and (b) above with a market value at least
         equal to the consideration paid in connection therewith, with any
         Person who regularly engages in the business of entering into
         repurchase agreements and has a combined capital surplus and undivided
         profit of not less than $250,000,000 or the Dollar Equivalent thereof,
         if at the time of entering into such agreement the debt securities of
         such Person are rated not less than "A" (or the then equivalent) by the
         rating service of S&P or of Moody's;

                       (d) shares of any mutual fund registered under the
         Investment Company Act of 1940, as amended, which invests solely in
         underlying securities of the types described in clauses (a), (b) and
         (c) above and which do not constitute "margin stock" within the meaning
         of Regulation U of the Federal Reserve Board; and

                       (e) such other instruments (within the meaning of Article
         9 of the UCC) as the Borrower may request and the Majority Banks may
         approve in writing, which approval will not be unreasonably withheld.

                  "Majority Banks" means, at any time, two or more Banks holding
         (either directly in the case of the Revolving Advances or directly or
         indirectly through participation interests in the case of the Letter of
         Credit Exposure) at least 51% of the sum of (a) the then aggregate
         unpaid principal amount of the Revolving Advances and (b) the then
         aggregate amount of the Letter of Credit Exposure at such time, or, if
         no such principal amount or Letter of Credit Exposure is then
         outstanding, Banks having at least 51% of the aggregate amount of the
         Commitments at such time.

                  "Mandatory Revolving Borrowing" means a Revolving Borrowing
         comprised of Base Rate Advances made to repay a Swingline Advance which
         has not been repaid to Wells Fargo on the date due.

                  "Material Adverse Change" shall mean a material adverse change
         in (a) the business, assets, financial condition or results of
         operations of the Borrower and the Guarantors, taken

                                      -15-
<PAGE>

         as a whole, in each case since the date of the Borrower's latest
         quarterly financial statements provided to the Agent, (b) the ability
         of the Borrower to pay or perform the Obligations when due or (c) the
         validity or enforceability of any of the Credit Documents against the
         Borrower or any Subsidiary of the Borrower or any Guarantor then a
         party thereto..

                  "Maturity Date" means May 15, 2005, as such date may be
         extended from time to time pursuant to Section 2.18.

                  "Maximum Rate" means the maximum nonusurious interest rate
         under applicable law.

                  "Moody's" means Moody's Investors Service, Inc. and any
         successor thereto which is a nationally recognized statistical rating
         organization.

                  "Multiemployer Plan" means a "multiemployer plan" as defined
         in Section 4001(a)(3) of ERISA to which the Borrower or any member of
         the Controlled Group is making or accruing an obligation to make
         contributions.

                  "Net Cash Proceeds" means (a) the aggregate cash proceeds
         (including without limitation, insurance proceeds) received by the
         Borrower or any Subsidiary in connection with any sales, transfers or
         dispositions of assets, minus (b) the reasonable expenses of the
         Borrower or such Subsidiary in connection with any such sales,
         transfers or dispositions of assets, minus (c) the amount, if any, of
         all taxes paid by the Borrower or such Subsidiary directly resulting
         from such sales, transfers or other dispositions of assets.

                  "Net Depreciated Value" means, with respect to Revenue
         Equipment and Other Equipment, (a) the aggregate value of such Revenue
         Equipment and Other Equipment on the books of the Borrower or any
         Guarantor as of the date of acquisition thereof by the Borrower or such
         Guarantor or the actual cost of such Revenue Equipment or Other
         Equipment to the Borrower or such Guarantor, whichever is less (the
         "Cost"), minus (b) depreciation computed in accordance with GAAP.

                  "Net Income" means, for any Person for any period for which
         such amount is being determined, the net income of such Person after
         taxes, as determined in accordance with GAAP, excluding, however, any
         after-tax net gains or losses or costs during such period resulting
         from (a) extraordinary items as determined in accordance with GAAP,
         including but not limited to any net gain or loss arising from the
         sale, exchange or other disposition of capital assets (such term to
         include all fixed assets and all securities) other than in the ordinary
         course of business or any write-up or write-down of assets, (b) changes
         in accounting principles and other one time non cash charges and (c)
         the disposition of the Subsidiaries identified on Schedule 1.1(c).

                  "Net Losses" has the meaning set forth in Section 6.12.

                                      -16-
<PAGE>

                  "Net Purchase Price" means the aggregate cash consideration
         paid in connection with any Acquisition Expenditure plus any
         assumptions of Indebtedness in connection with such Acquisition
         Expenditure.

                  "Net Worth" means, for any Person, stockholders' equity of
         such Person determined in accordance with GAAP.

                  "New Bank" has the meaning set forth in Section 2.17.

                  "New Commitment" has the meaning set forth in Section 2.17.

                  "Non-U.S. Lender" has the meaning set forth in Section
         2.11(e).

                  "Note" means a Revolving Note or the Swingline Note.

                  "Notice of Borrowing" means a notice of borrowing in the form
         of the attached Exhibit F, appropriately completed, signed by a
         Responsible Officer of the Borrower.

                  "Notice of Conversion or Continuation" means a notice of
         conversion or continuation in the form of the attached Exhibit G,
         appropriately completed, signed by a Responsible Officer of the
         Borrower.

                  "Obligations" means all Advances, Reimbursement Obligations
         and all other amounts payable by the Borrower to the Agent or any Bank
         under the Credit Documents (including, without limitation, all fees,
         costs and expenses (including, without limitation, attorney's fees)
         provided for in the Credit Documents).

                  "Other Equipment" means, with respect to any Person, all
         equipment other than Revenue Equipment owned by such Person free and
         clear of all Liens.

                  "Other Taxes" has the meaning set forth in Section 2.11(b).

                  "PBGC" means the Pension Benefit Guaranty Corporation or any
         entity succeeding to any or all of its functions under ERISA.

                  "Permitted Liens" means the Liens permitted to exist pursuant
         to Section 6.1.

                  "Person" means an individual, partnership, corporation
         (including a business trust), joint stock company, trust,
         unincorporated association, limited liability company, joint venture or
         other entity, or a government or any political subdivision or agency
         thereof or any trustee, receiver, custodian or similar official.

                  "Plan" means an employee benefit plan (other than a
         Multiemployer Plan) maintained for employees of the Borrower or any
         member of the Controlled Group and covered by

                                      -17-
<PAGE>

         Title IV of ERISA or subject to the minimum funding standards under
         Section 412 of the Code.

                  "Prime Rate" means a fluctuating interest rate per annum as
         shall be in effect from time to time equal to the rate of interest then
         most recently publicly announced by or within Wells Fargo at its
         principal office in San Francisco, California, as its prime rate
         evidenced by the recording thereof after its announcement in such
         internal publication or publications as Wells Fargo may designate
         (which may not be the lowest rate offered to its customers), whether or
         not the Borrower has notice thereof. Each change in the Prime Rate will
         be effective on the day such change is announced within Wells Fargo.

                  "Property" of any Person means any and all property or assets
         (whether real, personal, or mixed, tangible or intangible) of such
         Person.

                  "Proposed Participant" has the meaning set forth in Section
         9.6(e).

                  "Pro Rata Share" means, at any time with respect to any Bank,
         either (a) the ratio (expressed as a percentage) of such Bank's
         Commitment at such time to the aggregate Commitments at such time or
         (b) if the Commitments have been terminated, the ratio (expressed as a
         percentage) of such Bank's aggregate outstanding Advances and direct
         interest (if such Bank is the Issuing Bank with respect to such Letter
         of Credit) or participation interest in the Letter of Credit Exposure
         at such time to the aggregate outstanding Advances and Letter of Credit
         Exposure of all the Banks at such time.

                  "Real Estate Value" means, with respect to any Eligible Real
         Property, the remainder of (a) the greater of (i) the net book value of
         such Eligible Real Property as of the date of the most recent Borrowing
         Base Certificate delivered to the Banks or (ii) at the sole election of
         the Borrower, the appraised value of such Eligible Real Property
         provided in an appraisal performed by an independent appraiser approved
         by the Agent (which approval shall not be unreasonably withheld) dated
         not more than one year prior to the date of the most recent Borrowing
         Base Certificate delivered to the Banks, minus (b) the aggregate amount
         of Indebtedness secured by Liens on such Property.

                  "Receivables" means all rights to receive payment for goods
         sold or for services rendered in the ordinary course of business.

                  "Recovery Period" has the meaning set forth in Section 6.12.

                  "Register" has the meaning set forth in Section 9.6(c).

                  "Regulation D" means Regulation D of the Board of Governors of
         the Federal Reserve System as the same may be amended, modified or
         supplemented from time to time or any successor regulation thereto.

                                      -18-
<PAGE>

                  "Reimbursement Obligations" means all of the obligations of
         the Borrower set forth in Section 2.13(c).

                  "Release" shall have the meaning set forth in CERCLA or under
         any other Environmental Law.

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

                  "Response" shall have the meaning set forth in CERCLA or under
         any other Environmental Law.

                  "Responsible Officer" means, with respect to any Person, the
         chief executive officer, the president, the chief financial officer,
         any vice president, the treasurer or the secretary of such Person.

                  "Restricted Payment" means (a) any direct or indirect payment,
         prepayment, redemption, purchase, or deposit of funds or Property for
         the payment (including any sinking fund or defeasance), prepayment,
         redemption or purchase of Subordinated Debt, and (b) the making by any
         Person of any dividends or other distributions (in cash, property or
         otherwise) on, or payment for the purchase, redemption or other
         acquisition of, any shares of any Capital Stock of such Person, other
         than dividends payable in the same class of such Person's Capital
         Stock.

                  "Revenue Equipment" means, with respect to any Person, all
         trucks, tractors, trailers, city tractors, converter gears and all
         accessories and parts attached thereto, owned by such Person as of the
         date of determination free and clear of all Liens.

                  "Revolving Advance" means any advance by a Bank to the
         Borrower pursuant to Section 2.1(a).

                  "Revolving Borrowing" means a borrowing consisting of
         simultaneous Revolving Advances of the same Type made by each Bank
         pursuant to Section 2.1(a) or Converted by each Bank to Revolving
         Advances of a different Type pursuant to Section 2.2(b).

                  "Revolving Note" means a promissory note of the Borrower
         payable to the order of any Bank, in substantially the form of the
         attached Exhibit H, appropriately completed, evidencing indebtedness of
         the Borrower to such Bank resulting from Revolving Advances owing to
         such Bank.

                  "S&P" means Standard & Poor's Ratings Service, a division of
         The McGraw-Hill Companies, Inc., or any successor thereof which is a
         nationally recognized statistical rating organization.

                  "Senior Debt" means the Senior Secured Debt or the Senior
         Unsecured Debt; provided, however, that if Moody's and/or S&P have
         different ratings for the Senior Secured

                                      -19-
<PAGE>

         Debt and the Senior Unsecured Debt, then "Senior Debt" shall mean the
         Senior Unsecured Debt.

                  "Senior Secured Debt" means the Borrower's senior, secured,
         non-credit enhanced, long-term indebtedness for borrowed money.

                  "Senior Unsecured Debt" means the Borrower's senior,
         unsecured, non-credit enhanced, long-term indebtedness for borrowed
         money; provided, however, that if either Moody's or S&P does not rate
         the Borrower's Senior Unsecured Debt, then all references in this
         Agreement to such rating agency's rating of "Senior Unsecured Debt"
         shall mean the Borrower's "corporate credit rating".

                  "Subordinated Debt" means any Indebtedness of the Borrower or
         any of its Subsidiaries which is subordinated to their respective
         obligations under the Credit Documents and which is on terms and
         conditions satisfactory to the Agent and the Majority Banks.

                  "Subordinated Debt Documents" means all documents, instruments
         and agreements now or hereafter executed by the Borrower or any of its
         Subsidiaries in respect of Subordinated Debt and any and all
         amendments, modifications, supplements, renewals or restatements
         thereof (if any) which may be permitted in accordance with this
         Agreement.

                  "Subsidiary" of a Person means any corporation, association,
         partnership or other business entity of which more than 50% of the
         outstanding shares of Capital Stock having by the terms thereof
         ordinary voting power under ordinary circumstances to elect a majority
         of the board of directors or Persons performing similar functions (or,
         if there are no such directors or Persons, having general voting power)
         of such entity (irrespective of whether at the time Capital Stock of
         any other class or classes of such entity shall or might have voting
         power upon the occurrence of any contingency) is at the time directly
         or indirectly owned or controlled by such Person, by such Person and
         one or more Subsidiaries of such Person or by one or more Subsidiaries
         of such Person.

                  "Supplementing Banks" has the meaning set forth in Section
         2.17.

                  "Swingline Advance" has the meaning set forth in Section
         2.1(b).

                  "Swingline Note" means a promissory note of the Borrower
         payable to the order of Wells Fargo in substantially the form of the
         attached Exhibit I, appropriately completed, evidencing the
         indebtedness of the Borrower to Wells Fargo from Swingline Advances
         owing to Wells Fargo.

                  "Synthetic Lease" means any synthetic lease, tax retention
         operation lease or similar financing transaction where such transaction
         is considered borrowed money indebtedness for tax purposes, but is
         classified as an operating lease in accordance with GAAP.

                                      -20-
<PAGE>

                  "Taxes" has the meaning set forth in Section 2.11(a).

                  "Termination Event" means (a) the occurrence of a Reportable
         Event with respect to a Plan, as described in Section 4043 of ERISA and
         the regulations issued thereunder (other than a Reportable Event not
         subject to the provision for 30-day notice to the PBGC under such
         regulations), (b) the withdrawal of the Borrower or any of its
         Affiliates from a Plan during a plan year in which it was a
         "substantial employer" as defined in Section 4001(a)(2) of ERISA, (c)
         the giving of a notice of intent to terminate a Plan under Section
         4041(c) of ERISA, (d) the institution of proceedings to terminate a
         Plan by the PBGC or (e) any other event or condition which constitutes
         grounds under Section 4042 of ERISA for the termination of, or the
         appointment of a trustee to administer, any Plan.

                  "Termination Notice" has the meaning set forth in Section
         2.4(b).

                  "Treadco Pension Plan" means the noncontributory defined
         benefit plan covering employees of Tread-Ark Corporation (formerly
         Treadco, Inc.) dated effective January 1, 1972.

                  "Total Funded Debt" means (without duplication), on a
         Consolidated basis and at any time, the sum of (a) all Indebtedness of
         the Borrower and/or any of its Subsidiaries, other than Indebtedness
         consisting of (i) indebtedness for which the Borrower and its
         Subsidiaries are obligated only by virtue of a guaranty of such
         indebtedness, (ii) obligations of the Borrower and its Subsidiaries in
         respect of standby letters of credit associated with the replacement of
         surety bonds not to exceed $45,000,000 in aggregate amount, (iii) trade
         payables or bank drafts and (iv) Indebtedness referred to in clause (d)
         of the definition of such term, plus (b) the present value of all lease
         payments at any time then or thereafter payable under all Synthetic
         Leases (discounted at the interest rate implicit in the Synthetic
         Leases or, if such implicit rate cannot be determined, at the Base
         Rate).

                  "Type" has the meaning set forth in Section 1.4.

                  "UCC" means the Uniform Commercial Code as in effect in the
         State of Texas and/or any other jurisdiction, the laws of which may be
         applicable to or in connection with the creation, perfection or
         priority of any Lien on any Property.

                  "U.S." means the United States of America.

                  "Wells Fargo" means Wells Fargo Bank Texas, National
         Association.

                  "Wingfoot" means Wingfoot Commercial Tire Systems L.L.C..

                  "Wingfoot Put and Call" means (a) the right a wholly-owned
         Subsidiary of the Borrower has, at any time after April 30, 2003 until
         April 30, 2004, to sell its interest in Wingfoot to The Goodyear Tire &
         Rubber Company ("Goodyear") for a cash "put price" equal to
         approximately $73,400,000 (the "Put Price") or (b) the right Goodyear
         has, at any

                                      -21-
<PAGE>

         time after April 30, 2003 until October 31, 2004, to purchase the
         Borrower's entire interest in Wingfoot, for cash, at a "call price"
         equal to the Put Price plus $5,000,000.

         Section 1.2 Computation of Time Periods. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
means "to but excluding".

         Section 1.3 Accounting Terms; Changes in GAAP.

                  (a) Subject to Section 1.3(c), all accounting terms not
         specifically defined in this Agreement shall be construed in accordance
         with GAAP applied on a consistent basis with those applied in the
         preparation of the Financial Statements.

                  (b) Unless otherwise indicated, all financial statements of
         the Borrower, all calculations for compliance with covenants in this
         Agreement and all calculations of any amounts to be calculated under
         the definitions in Section 1.1 shall be based upon the Consolidated
         accounts of the Borrower and its Subsidiaries in accordance with GAAP.

                  (c) If any changes in accounting principles after the
         Effective Date are (i) required by GAAP or the Financial Accounting
         Standards Board of the American Institute of Certified Public
         Accountants or similar agencies, or (ii) recommended by the Borrower or
         its certified public accountants and implemented by the Borrower and
         such change results in a change in the method of calculation of, or
         affects the results of such calculation of, any of the financial
         covenants, standards or terms found in this Agreement and the Borrower
         notifies the Agent that the Borrower requests an amendment to any
         provision of this Agreement to eliminate the effect of such change or
         (iii) if the Agent notifies the Borrower that the Agent or the Majority
         Banks request an amendment to any provision of this Agreement for such
         purpose, regardless of whether any such notice is given before or after
         such change in GAAP or in the application thereof, then the parties
         shall enter into and diligently pursue negotiations in order to amend
         such financial covenants, standards or terms so as to equitably reflect
         such change, with the desired result that the criteria for evaluating
         the Borrower's and its Consolidated Subsidiaries' financial condition
         shall be the same after such change as if such change had not been
         made. Notwithstanding anything to the contrary contained in this
         Agreement, from the date of any such request in accordance with this
         Section 1.3(c) and until such time (if ever) as such an amendment shall
         have been executed and delivered by the Borrower, the Agent and the
         Banks or the request for such an amendment has been withdrawn by the
         Person or Persons making such request, all financial covenants,
         standards and terms in this Agreement shall continue to be calculated
         or construed as if such changes in accounting principles required by
         GAAP or recommended by the Borrower or the Borrower's certified public
         accountants and implemented by the Borrower had not occurred.

                  (d) To enable the ready and consistent determination of
         compliance with the covenants set forth in this Agreement, neither the
         Borrower nor any of its Subsidiaries will change the last day of its
         fiscal year from December 31st or the last days of the first three
         fiscal quarters of the Borrower and its Subsidiaries in each of its
         fiscal years from that

                                      -22-
<PAGE>

         existing on the Closing Date unless the Borrower has given written
         notice to the Agent of the Borrower's intention to make such change at
         least 60 days prior to the effective date of such change.

         Section 1.4 Types of Advances. Advances are distinguished by "Type".
The "Type" of an Advance refers to the determination whether such Advance is a
Base Rate Advance or Eurodollar Rate Advance, each of which constitutes a Type.

         Section 1.5 Miscellaneous. Article, Section, Schedule and Exhibit
references are to Articles and Sections of and Schedules and Exhibits to this
Agreement, unless otherwise specified.

                                   ARTICLE II

                     THE ADVANCES AND THE LETTERS OF CREDIT

         Section 2.1 The Advances.

                  (a) Revolving Advances. Subject to the succeeding proviso,
         each Bank severally agrees, on the terms and conditions set forth in
         this Agreement, to make Revolving Advances to the Borrower from time to
         time on any Business Day prior to the Maturity Date in an aggregate
         amount not to exceed at any time outstanding an amount equal to the
         remainder of such Bank's Commitment minus such Bank's Pro Rata Share of
         the Letter of Credit Exposure at such time; provided, however, that the
         aggregate amount of all outstanding Revolving Advances, all outstanding
         Swingline Advances and the Letter of Credit Exposure at any time may
         not exceed the lesser of (i) the aggregate Commitments at such time or
         (ii) the Borrowing Base at such time. Within the limits of each Bank's
         Commitment and the Borrowing Base limitation set forth above, the
         Borrower may from time to time borrow, prepay (in whole or in part) and
         reborrow Revolving Advances.

                  (b) Swingline Advances. Subject to the succeeding proviso, on
         the terms and conditions set forth in this Agreement, Wells Fargo may,
         in its sole discretion from time to time on any Business Day during the
         period from the date of this Agreement until the Maturity Date, make
         advances ("Swingline Advances") under the Swingline Note to the
         Borrower in an aggregate principal amount not to exceed $15,000,000
         outstanding at any time; provided, however, that the aggregate amount
         of all outstanding Revolving Advances, all outstanding Swingline
         Advances and the Letter of Credit Exposure at any time may not exceed
         the lesser of (i) the aggregate Commitments at such time or (ii) the
         Borrowing Base at such time; and provided, further, than no Swingline
         Advance shall be made by Wells Fargo if, to its knowledge, the
         statements set forth in Section 3.2(a) are not true on the date of such
         Swingline Advance, it being agreed by the Borrower that the giving of
         the applicable Notice of Borrowing and the acceptance by the Borrower
         of the proceeds of such Swingline Advance shall constitute a
         representation and warranty by the Borrower that on the date of such
         Swingline Advance such statements are true. Subject to the other
         provisions hereof, the Borrower may from time to time borrow, prepay
         (in whole or in part) and reborrow Swingline Advances.

                                      -23-
<PAGE>

                       (A) Except as provided in the following clause (B) below,
         each request for a Swingline Advance shall be made pursuant to
         telephone notice to Wells Fargo given no later than 1:00 p.m. (Dallas,
         Texas time) on the date of the proposed Swingline Advance, promptly
         confirmed by a completed and executed Notice of Borrowing telecopied to
         the Agent. Wells Fargo will promptly make the Swingline Advance
         available to the Borrower at the Borrower's account designated in its
         written notice to the Agent.

                       (B) The Borrower and the Banks agree that in the event
         any Swingline Advance is not repaid on the date due to Wells Fargo,
         each Bank shall pay to the Agent its Pro Rata Share of such Swingline
         Advance and such payment shall be deemed to be a Base Rate Advance made
         pursuant to such Bank's Commitment, whether made before or after
         termination of the Commitments, acceleration of the Advances or
         otherwise, and whether or not a Default has then occurred or is
         continuing or any of the other conditions precedent set forth in
         Article III have been satisfied. The Agent shall give each Bank notice
         of such Mandatory Revolving Borrowing by 11:00 a.m. (Dallas, Texas
         time) on the date the Mandatory Revolving Borrowing is to be made. Each
         Bank shall make its Advance available to the Agent for the account of
         Wells Fargo in immediately available funds by 1:00 p.m. (Dallas, Texas
         time) on the date requested, and the Borrower hereby irrevocably
         instructs Wells Fargo to apply the proceeds of such Mandatory Revolving
         Borrowing to the payment of the outstanding Swingline Advances.

         Section 2.2 Method of Borrowing.

                  (a) Notice. Each Revolving Borrowing shall be made pursuant to
         a Notice of Borrowing given, not later than (i) 11:00 a.m. (Dallas,
         Texas time) on the third Business Day before the date of the proposed
         Borrowing, in the case of a Eurodollar Rate Advance or (ii) 11:00 a.m.
         (Dallas, Texas time) on the Business Day of the proposed Borrowing, in
         the case of a Base Rate Advance, by the Borrower to the Agent, and on
         the day of its receipt of a timely Notice of Borrowing, the Agent shall
         transmit a copy of such notice to each Bank by telecopier; provided,
         however, that the Agent and each of the Banks hereby waive the
         requirement in clause (i) of this Section 2.2(a) that the Borrower
         provide three Business Days advance written notice of the date of the
         initial Borrowing. Each Swingline Advance shall be made pursuant to a
         Notice of Borrowing given by the Borrower to each of the Agent and
         Wells Fargo not later than 1:00 p.m. (Dallas, Texas time) on the day of
         the proposed Borrowing. Each Notice of Borrowing shall be in writing or
         by telecopier specifying the requested (A) date of such Borrowing, (B)
         Type of Advances comprising such Borrowing, (C) aggregate amount of
         such Borrowing, and (D) if such Borrowing is to be comprised of
         Eurodollar Rate Advances, the Interest Period for each such Advance. In
         the case of a proposed Borrowing comprised of Eurodollar Rate Advances,
         the Agent shall promptly notify each Bank of the applicable interest
         rate under Section 2.6(b). Each Bank shall (1) in the case of all
         Revolving Borrowings other than Borrowings made on the same day as the
         day the Notice of Borrowing is received, before 1:00 p.m. (Dallas,
         Texas time) on the date of such Borrowing and (2) in the case of
         Revolving Borrowings made on the same day as the date of the Notice of
         Borrowing or Mandatory Revolving Borrowings, before 1:00 p.m. (Dallas,
         Texas time), make available for the account of its Applicable Lending
         Office to the Agent at the Agent's address referred to in Section 9.2,
         or such other location as the Agent

                                      -24-
<PAGE>

         may specify by notice to the Banks, in same day funds, such Bank's Pro
         Rata Share of such Borrowing. After the Agent's receipt of such funds
         and, except in the case of Mandatory Revolving Borrowings, upon
         fulfillment of the applicable conditions set forth in Article III, the
         Agent will make such funds available to the Borrower or, in the case of
         Mandatory Revolving Borrowings, to Wells Fargo, in each case at the
         Borrower's or Wells Fargo's (as applicable) account designated in its
         respective written notice to the Agent.

                  (b) Conversions and Continuations. In order to elect to
         Convert or continue Advances comprising part of the same Revolving
         Borrowing under this Section, the Borrower shall deliver an irrevocable
         Notice of Conversion or Continuation to the Agent at the Agent's office
         no later than 11:00 a.m. (Dallas, Texas time) (i) on the Business Day
         of the proposed conversion date in the case of a Conversion of such
         Advances to Base Rate Advances and (ii) at least three Business Days in
         advance of the proposed Conversion or continuation date in the case of
         a Conversion to, or a continuation of, Eurodollar Rate Advances. Each
         such Notice of Conversion or Continuation shall be in writing or by
         telecopier, specifying (A) the requested Conversion or continuation
         date (which shall be a Business Day), (B) the Borrowing amount and Type
         of the Advances to be Converted or continued, (C) whether a Conversion
         or continuation is requested and, if a Conversion, into what Type of
         Advances, and (D) in the case of a Conversion to, or a Continuation of,
         Eurodollar Rate Advances, the requested Interest Period. Revolving
         Advances may only be Converted or continued as Revolving Advances.
         Swingline Advances may not be Converted or continued. Promptly after
         receipt of a Notice of Conversion or Continuation under this Section
         2.2(b), the Agent shall provide each Bank with a copy thereof and, in
         the case of a Conversion to or a continuation of Eurodollar Rate
         Advances, notify each Bank of the applicable interest rate under
         Section 2.6(b). For purposes other than the conditions set forth in
         Section 3.2, the portion of Revolving Advances comprising part of the
         same Revolving Borrowing that are Converted to Revolving Advances of
         another Type shall constitute a new Revolving Borrowing.

                  (c) Certain Limitations. Notwithstanding anything in Sections
         2.2(a) and 2.2(b) above:

                           (i) each Borrowing (other than a Borrowing of
                  Swingline Advances) shall be in an aggregate amount not less
                  than (A) $1,000,000 or greater multiples of $500,000, in the
                  case of Eurodollar Rate Advances, or (B) $500,000 or greater
                  multiples of $100,000, in the case of Base Rate Advances, and
                  shall consist of Advances of the same Type made on the same
                  day by the Banks ratably according to their respective
                  Commitments;

                           (ii) at no time shall there be more than five
                  Interest Periods applicable to outstanding Eurodollar Rate
                  Advances;

                           (iii) the Borrower may not select Eurodollar Rate
                  Advances for any Borrowing to be made if (A) the aggregate
                  amount of such Borrowing is less than $1,000,000 or (B) a
                  Default has occurred and is continuing;

                                      -25-
<PAGE>

                           (iv) the Borrower may not select Eurodollar Rate
                  Advances for any Borrowing to be Converted or continued if (A)
                  the aggregate amount of such Borrowing is less than $1,000,000
                  or (B) an Event of Default has occurred and is continuing;

                           (v) (A) if any Bank shall, at any time prior to the
                  making of any requested Borrowing comprised of Eurodollar Rate
                  Advances, notify the Agent that the introduction of or any
                  change in or in the interpretation of any law or regulation
                  makes it unlawful, or that any central bank or other
                  Governmental Authority asserts that it is unlawful, for such
                  Bank or its Eurodollar Lending Office to perform its
                  obligations under this Agreement to make Eurodollar Rate
                  Advances or to fund or maintain Eurodollar Rate Advances, such
                  Bank's Pro Rata Share of such Borrowing shall be made as a
                  Base Rate Advance of such Bank, but otherwise shall be
                  considered part of the same Borrowing and interest on such
                  Base Rate Advance shall be due and payable at the same time
                  that interest on the Eurodollar Rate Advances comprising the
                  remainder of such Borrowing shall be due and payable; and (B)
                  such Bank agrees to use commercially reasonable efforts
                  (consistent with its internal policies and legal and
                  regulatory restrictions) to designate a different Applicable
                  Lending Office if the making of such designation would avoid
                  the effect of this clause (v) and would not, in the reasonable
                  judgment of such Bank, be otherwise disadvantageous to such
                  Bank;

                           (vi) if the Agent is unable to determine the
                  Eurodollar Rate for Eurodollar Rate Advances comprising any
                  requested Borrowing, the right of the Borrower to select
                  Eurodollar Rate Advances for such Borrowing or for any
                  subsequent Borrowing shall be suspended until the Agent shall
                  notify the Borrower and the Banks that the circumstances
                  causing such suspension no longer exist, and each Advance
                  comprising such Borrowing shall be a Base Rate Advance;

                           (vii) if the Majority Banks shall, at least one
                  Business Day before the date of any requested Borrowing,
                  notify the Agent that the Eurodollar Rate for Eurodollar Rate
                  Advances comprising such Borrowing will not adequately reflect
                  the cost to such Banks of making or funding their respective
                  Eurodollar Rate Advances, as the case may be, for such
                  Borrowing, the right of the Borrower to select Eurodollar Rate
                  Advances for such Borrowing or for any subsequent Borrowing
                  shall be suspended until the Agent shall notify the Borrower
                  and the Banks that the circumstances causing such suspension
                  no longer exist, and each Advance comprising such Borrowing
                  shall be a Base Rate Advance; and

                           (viii) if the Borrower shall fail to select the
                  duration or continuation of any Interest Period for any
                  Eurodollar Rate Advances in accordance with the provisions
                  contained in the definition of "Interest Period" in Section
                  1.1 and Section 2.2(a) or 2.2(b) above, the Agent will
                  forthwith so notify the Borrower and the Banks and such
                  Advances will be made available to the Borrower on the date of
                  such Borrowing as Base Rate Advances or, if an existing
                  Advance, Converted into Base Rate Advances.

                                      -26-
<PAGE>

                  (d) Notices Irrevocable. Each Notice of Borrowing and Notice
         of Conversion or Continuation shall be irrevocable and binding on the
         Borrower. In the case of any Borrowing which the related Notice of
         Borrowing specifies is to be comprised of Eurodollar Rate Advances, the
         Borrower shall indemnify each Bank against any loss or out-of-pocket
         cost or expense incurred by such Bank as a result of any condition
         precedent for Borrowing set forth in Article III not being satisfied or
         waived by the Agent and the Majority Banks for any reason, including,
         without limitation, any loss, cost or expense actually incurred by
         reason of the liquidation or reemployment of deposits or other funds
         acquired by such Bank to fund the Advance to be made by such Bank as
         part of such Borrowing when such Advance, as a result of such failure,
         is not made on such date.

                  (e) Agent Reliance. Unless the Agent shall have received
         notice from a Bank before the date of any Revolving Borrowing or
         Mandatory Revolving Borrowing that such Bank will not make available to
         the Agent such Bank's Pro Rata Share of the Borrowing, the Agent may
         assume that such Bank has made its Pro Rata Share of such Borrowing
         available to the Agent on the date of such Borrowing in accordance with
         Section 2.2(a) and the Agent may, in reliance upon such assumption,
         make available to the Borrower on such date a corresponding amount. If
         and to the extent that such Bank shall not have so made its Pro Rata
         Share of such Borrowing available to the Agent, such Bank and the
         Borrower severally agree to immediately repay to the Agent on demand
         such corresponding amount, together with interest on such amount, for
         each day from the date such amount is made available to the Borrower
         until the date such amount is repaid to the Agent, at (i) in the case
         of the Borrower, the interest rate applicable on such day to Advances
         comprising such Borrowing and (ii) in the case of such Bank, the
         Federal Funds Rate for such day. If such Bank shall repay to the Agent
         such corresponding amount and interest as provided above, such
         corresponding amount so repaid shall constitute such Bank's Advance as
         part of such Borrowing for purposes of this Agreement even though not
         made on the same day as the other Advances comprising such Borrowing.

                  (f) Bank Obligations Several. The failure of any Bank to make
         the Advance to be made by it as part of any Borrowing shall not relieve
         any other Bank of its obligation, if any, to make its Advance on the
         date of such Borrowing. No Bank shall be responsible for the failure of
         any other Bank to make the Advance to be made by such other Bank on the
         date of any Borrowing.

                  (g) Notes. The indebtedness of the Borrower to each Bank
         resulting from Revolving Advances owing to such Bank shall be evidenced
         by the Revolving Note of the Borrower payable to the order of such Bank
         in substantially the form of Exhibit H, appropriately completed. The
         indebtedness of the Borrower to Wells Fargo resulting from Swingline
         Advances owing to Wells Fargo shall be evidenced by the Swingline Note
         of the Borrower payable to the order of Wells Fargo in substantially
         the form of Exhibit I, appropriately completed.

                                      -27-
<PAGE>

         Section 2.3 Fees.

                  (a) Facility Fees. The Borrower agrees to pay to the Agent,
         for the pro rata benefit of the Banks, a facility fee on the average
         daily aggregate amount of the Commitments, irrespective of the
         Borrower's usage of such Commitments, at a rate per annum equal to the
         Applicable Margin for the period from the Effective Date until the
         Maturity Date, which fee shall be due and payable quarterly in arrears
         on the last Business Day of each March, June, September and December
         and on the Maturity Date.

                  (b) Letter of Credit Fees. The Borrower agrees to pay to the
         Agent, for the pro rata benefit of the Banks, a fee in respect of all
         Letters of Credit outstanding at a rate per annum equal to the
         Applicable Margin calculated on the average daily maximum amount
         available from time to time to be drawn under such outstanding Letters
         of Credit, which fee shall be due and payable quarterly in arrears on
         the last Business Day of each March, June, September and December and
         on the Maturity Date. In addition to the fees referred to in the
         preceding sentence, the Borrower agrees to pay to each Issuing Bank for
         its own account amendment, transfer and negotiation fees, in respect of
         all Letters of Credit outstanding and issued by such Issuing Bank,
         which fees shall be due and payable in such amounts, at such times and
         otherwise in accordance with such Issuing Bank's then current policy.

                  (c) Agent Fees. The Borrower agrees to pay to the Agent and/or
         Wells Fargo, for its benefit, the fees set forth in the Agent's Fee
         Letter.

         Section 2.4 Reduction of the Commitments.

                  (a) Voluntary Reduction. The Borrower shall have the right,
         upon at least three Business Days' irrevocable notice to the Agent, to
         terminate in whole or reduce ratably in part the unused portion of the
         Commitments; provided that each partial reduction shall be in the
         aggregate amount of $1,000,000 or greater multiples of $1,000,000.
         Subject to Section 2.17, any termination or reduction of the
         Commitments pursuant to this Section 2.4 shall be permanent, with no
         obligation of the Banks to reinstate such Commitments and the facility
         fees provided for in Section 2.3(a) shall thereafter be computed on the
         basis of the Commitments, as so reduced.

                  (b) Change of Control. Upon the occurrence of any of the
         following:

                           (i) a change in control is reported by the Borrower
                  in response to either Item 6(e) of Schedule 14A of Regulation
                  14A promulgated under the Securities Exchange Act of 1934, as
                  amended (the "Exchange Act"), or

                           (ii) any "person" (as such term is used in Section
                  13(d) and Section 14(d)(2) of the Exchange Act) is or becomes
                  the "beneficial owner" (as defined in Rule 13d-3 under the
                  Exchange Act), directly or indirectly, of voting Capital Stock
                  of the Borrower (or securities convertible into or
                  exchangeable for such Capital Stock) representing the Control
                  Percentage or more of the combined voting power of the
                  Borrower's then outstanding Capital Stock,

                                      -28-
<PAGE>

then, in such event the Majority Banks may, at their sole option upon written
notice to the Borrower (a "Termination Notice"), declare the obligation of each
Bank to make Advances and the obligation of each Issuing Bank to issue, increase
or extend Letters of Credit to be terminated, whereupon the same shall forthwith
terminate and the Commitments shall reduce to zero.

         Section 2.5 Repayment of Advances.

                  (a) Revolving Advances. The Borrower shall repay the
         outstanding principal amount of each Revolving Advance on the Maturity
         Date.

                  (b) Swingline Advances. The Borrower shall repay the
         outstanding principal amount of each Swingline Advance on the earlier
         of the Maturity Date or the date which is three Business Days after the
         date such Swingline Advance was made.

         Section 2.6 Interest. The Borrower shall pay interest on the unpaid
principal amount of each Advance from the date of such Advance until such
principal amount shall be paid in full, at the following rates per annum:

                  (a) Base Rate Advances. If such Advance is a Base Rate
         Advance, a rate per annum equal, at all times, to the lesser of (i) the
         Base Rate in effect from time to time plus the Applicable Margin and
         (ii) the Maximum Rate, payable in arrears on the last Business Day of
         each calendar quarter and on the date such Base Rate Advance is payable
         in full, provided that any amount of principal which is not paid when
         due (whether at stated maturity, by acceleration or otherwise) shall
         bear interest from the date on which such amount is due until such
         amount is paid in full, payable on demand, at a rate per annum equal at
         all times to the lesser of (A) the rate required to be paid on such
         Advance immediately prior to the date on which such amount becomes due
         plus two percent (2%) and (B) the Maximum Rate.

                  (b) Eurodollar Rate Advances. If such Advance is a Eurodollar
         Rate Advance, a rate per annum equal, at all times during the Interest
         Period for such Advance, to the lesser of (i) the Eurodollar Rate for
         such Interest Period plus the Applicable Margin and (ii) the Maximum
         Rate, payable in arrears on the last day of such Interest Period and on
         the date such Eurodollar Rate Advance is payable in full; provided,
         however, in the case of an Interest Period greater than three months,
         accrued interest shall also be payable on the date that is three months
         after the first day of such Interest Period; and provided, further,
         that any amount of principal which is not paid when due (whether at
         stated maturity, by acceleration or otherwise) shall bear interest from
         the date on which such amount is due until such amount is paid in full,
         payable on demand, at a rate per annum equal at all times to the lesser
         of (A) the greater of (1) the Base Rate in effect from time to time
         plus two percent (2%) and (2) the rate required to be paid on such
         Advance immediately prior to the date on which such amount became due
         plus two percent (2%) and (B) the Maximum Rate.

                  (c) Swingline Advances. If such Advance is a Swingline
         Advance, a rate per annum equal, at all times, to the lesser of (i) the
         rate agreed to pursuant to the the letter agreement between the
         Borrower and Wells Fargo dated May 15, 2002 and (ii) the Maximum

                                      -29-
<PAGE>

         Rate, payable in arrears on the earlier of the Maturity Date of this
         Agreement or the last Business Day of each calendar quarter and, if a
         Default has then occurred and is continuing, on the date such Swingline
         Advance is payable in full, provided that any amount of principal which
         is not paid when due (whether at stated maturity, by acceleration or
         otherwise) shall bear interest from the date on which such amount is
         due until such amount is paid in full, payable on demand, at a rate per
         annum equal at all times to the lesser of (1) the rate required to be
         paid on such Advance immediately prior to the date on which such amount
         becomes due plus two percent (2%) and (2) the Maximum Rate.

                  (d) Usury Recapture. In the event that, but for limitations
         regarding the Maximum Rate set forth in this Agreement, the rate of
         interest otherwise chargeable under this Agreement at any time is
         greater than the Maximum Rate, then the unpaid principal amount of the
         Advances shall bear interest at the Maximum Rate until the total amount
         of interest paid or accrued on the Advances equals the amount of
         interest which would have been paid or accrued on the Advances if the
         stated rates of interest set forth in this Agreement, without giving
         effect to limitations regarding the Maximum Rate set forth in this
         Agreement, had at all times been in effect. In the event, upon payment
         in full of the Advances, the total amount of interest paid or accrued
         under the terms of this Agreement on the Advances is less than the
         total amount of interest which would have been paid or accrued if the
         rates of interest set forth in this Agreement, without giving effect to
         limitations regarding the Maximum Rate set forth in this Agreement,
         had, at all times, been in effect, then the Borrower shall, to the
         extent permitted by applicable law, pay the Agent for the account of
         the Banks an amount equal to the difference between (i) the lesser of
         (A) the amount of interest which would have been charged on the
         Advances if the Maximum Rate had, at all times, been in effect and (B)
         the amount of interest which would have accrued on the Advances if the
         rates of interest set forth in this Agreement, without giving effect to
         limitations regarding the Maximum Rate set forth in this Agreement, had
         at all times been in effect and (ii) the amount of interest actually
         paid or accrued under this Agreement on the Advances. In the event the
         Banks ever receive, collect or apply as interest any sum in excess of
         the Maximum Rate, such excess amount shall, to the extent permitted by
         law, be applied to the reduction of the principal balance of the
         Advances, and if no such principal is then outstanding, such excess or
         part thereof remaining shall be paid to the Borrower.

                  (e) Default Interest. Notwithstanding anything to the contrary
         contained in this Agreement, (i) at all times during which an Event of
         Default has occurred and is continuing, interest shall accrue and be
         payable on the outstanding principal amount of each Advance, and (ii)
         to the fullest extent permitted by applicable law and whether or not an
         Event of Default has occurred and is continuing, interest shall accrue
         on any other amount of the Obligations which is not paid in full when
         due (whether at stated maturity, by acceleration or otherwise), in each
         case payable on demand at a rate per annum equal to the lesser of (A)
         the Base Rate plus two percent (2%) and (B) the Maximum Rate, which
         interest at such rate shall accrue from the initial date of the giving
         of notice by the Agent to the Borrower of the occurrence of such Event
         of Default (as to clause (i) preceding) or from the date such amount of
         the Obligations became due until the date such amount is paid in full
         (as to clause (ii) preceding).

                                      -30-
<PAGE>

         Section 2.7 Prepayments.

                  (a) Right to Prepay. The Borrower shall have no right to
         prepay any principal amount of any Advance except as provided in this
         Section 2.7.

                  (b) Optional Prepayments. The Borrower may elect to prepay any
         of the Advances, after giving notice thereof to the Agent (i) by 11:00
         a.m. (Dallas, Texas time) on the day of prepayment of any Swingline
         Advance, and (ii) by 11:00 a.m. (Dallas Texas time) at least three
         Business Days' prior to the day of prepayment of any Eurodollar Rate
         Advances and at least one Business Day prior to the day of prepayment
         of any Base Rate Advances. Such notice must state the proposed date and
         aggregate principal amount of such prepayment, whether such prepayment
         should be applied to reduce outstanding Revolving Advances or Swingline
         Advances, and if applicable, the relevant Interest Period for the
         Advances to be prepaid. If any such notice is given, the Borrower shall
         prepay Advances comprising part of the same Borrowing in whole or
         ratably in part in an aggregate principal amount equal to the amount
         specified in such notice, and shall also pay accrued interest to the
         date of such prepayment on the principal amount prepaid and amounts, if
         any, required to be paid pursuant to Section 2.8 as a result of such
         prepayment being made on such date; provided, however, that each
         partial prepayment of Eurodollar Rate Advances shall be in an aggregate
         principal amount not less than $1,000,000 or greater multiples of
         $500,000.

                  (c) Mandatory Prepayments.

                           (i) Change of Control. On the fifth Business Day
                  following the Borrower's receipt of a Termination Notice
                  pursuant to Section 2.4(b) hereof, the Borrower shall be
                  required to prepay all outstanding Advances and all other
                  unpaid Obligations in full and to deposit with the Agent into
                  the Cash Collateral Account an amount equal to the Letter of
                  Credit Exposure.

                           (ii) Borrowing Base Deficiency. On each Borrowing
                  Base Determination Date, the Borrower shall be required to
                  prepay the Advances in an aggregate amount equal to the
                  positive remainder, if any, of (A) the aggregate amount of all
                  outstanding Advances and the Letter of Credit Exposure on such
                  date minus (B) the Borrowing Base, as determined on such
                  Borrowing Base Determination Date (or, upon payment in full of
                  all outstanding Advances, to deposit with the Agent into the
                  Cash Collateral Account an amount equal to the amount by which
                  the Letter of Credit Exposure exceeds the Borrowing Base).

                           (iii) Reduction of Commitments. In the event the
                  Commitments are reduced in accordance with Section 2.4(a), the
                  Borrower shall prepay the Advances to the extent the aggregate
                  amount of all outstanding Advances and the Letter of Credit
                  Exposure exceeds the aggregate amount of the Commitments after
                  giving effect to such reduction (or, upon payment in full of
                  all outstanding Advances, to deposit with the Agent into the
                  Cash Collateral Account an amount equal to the amount by which
                  the Letter of Credit Exposure exceeds the Commitments as so
                  reduced).

                                      -31-
<PAGE>

                           (iv) Accrued Interest. Each prepayment pursuant to
                  this Section 2.7(c) shall be accompanied by accrued interest
                  on the amount prepaid to the date of such prepayment and
                  amounts, if any, required to be paid pursuant to Section 2.8
                  as a result of such prepayment being made on such date.

                           (v) Avoidance of Breakage Costs. In the event that
                  the amount of any mandatory prepayment of Advances under this
                  Section 2.7(c) exceeds the aggregate principal amount of
                  Advances which consist of Base Rate Advances (the amount of
                  such excess being the "Excess Amount"), the Borrower shall
                  have the right, in lieu of making such prepayment in full, to
                  prepay such outstanding Advances which are Base Rate Advances
                  and to deposit an amount equal to the Excess Amount with the
                  Agent in the Cash Collateral Account maintained by and in the
                  sole dominion and control of the Agent for the ratable benefit
                  of the Banks. Any amount so deposited shall be held by the
                  Agent as collateral for the Obligations and applied to the
                  prepayment of Advances which are Eurodollar Rate Advances at
                  the end of the current Interest Period(s) applicable thereto.
                  On any day on which amounts collected in the Cash Collateral
                  Account remain on deposit in or to the credit of the Cash
                  Collateral Account after giving effect to the payment made on
                  such day pursuant to this Section 2.7(c), and the Borrower
                  shall have delivered to the Agent a written request or a
                  telephonic request (which shall be promptly confirmed in
                  writing) prior to 10:00 am (Dallas, Texas time) that such
                  remaining collected amounts be invested in cash equivalents
                  specified in such request, the Agent shall invest such funds,
                  to the extent the Agent is reasonably able to do so, in such
                  cash equivalents as are acceptable to, and with no risk to,
                  the Agent on an overnight basis or with maturities such that
                  amounts will be available to pay the Obligations secured
                  thereby as they become due, whether at maturity, by
                  acceleration or otherwise; provided, however, that any loss
                  resulting from such investments shall be charged to and be
                  immediately payable by the Borrower on demand by the Agent.

                  (d) Ratable Payments. Each payment of any Advance pursuant to
         this Section 2.7 or any other provision of this Agreement shall be made
         in a manner such that all Advances comprising part of the same
         Borrowing are paid in whole or ratably in part.

                  (e) Effect of Notice. All notices given pursuant to this
         Section 2.7 shall be irrevocable and binding upon the Borrower.

         Section 2.8 Breakage Costs. If (a) any payment of principal of any
Eurodollar Rate Advance is made other than on the last day of the Interest
Period for such Advance as a result of any payment pursuant to Section 2.7 or
the acceleration of the maturity of the Advances pursuant to Article VII or
otherwise, (b) any Conversion of a Eurodollar Rate Advance is made other than on
the last day of the Interest Period for such Advance pursuant to Section 2.12 or
otherwise, or (c) the Borrower fails to make a principal or interest payment
with respect to any Eurodollar Rate Advance on the date such payment is due and
payable, the Borrower shall, within 10 days of any written demand sent by any
Bank to the Borrower through the Agent, pay to the Agent for the account of such
Bank any amounts (without duplication of any other amounts payable in respect of
breakage costs) required to compensate such Bank for any additional losses or
out-of-pocket costs or expenses

                                      -32-
<PAGE>

which it may reasonably incur as a result of such payment or nonpayment,
including, without limitation, any loss (including loss of anticipated profits),
cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by any Bank to fund or maintain such Advance.

         Section 2.9 Increased Costs.

                  (a) Eurodollar Rate Advances. If, after the date hereof, due
         to either (i) the introduction of or any change (other than any change
         by way of imposition or increase of reserve requirements included in
         the calculation of the Eurodollar Rate) in or in the interpretation of
         any law or regulation or (ii) the compliance with any guideline or
         request from any central bank or other Governmental Authority (whether
         or not having the force of law), there shall be any increase in the
         cost to any Bank of agreeing to make or making, funding or maintaining
         Eurodollar Rate Advances, then the Borrower shall from time to time,
         within 30 days of written demand by such Bank (with a copy of such
         demand to the Agent), immediately pay to the Agent for the account of
         such Bank additional amounts (without duplication of any other amounts
         payable in respect of increased costs) sufficient to compensate such
         Bank for such increased cost; provided, however, that, before making
         any such demand, each Bank agrees to use commercially reasonable
         efforts (consistent with its internal policy and legal and regulatory
         restrictions) to designate a different Applicable Lending Office if the
         making of such a designation would avoid the need for, or reduce the
         amount of, such increased cost and would not, in the reasonable
         judgment of such Bank, be otherwise disadvantageous to such Bank. In
         determining such increased costs, each Bank will act reasonably and in
         good faith and will use averaging and attribution methods which are
         reasonable, provided that such Bank's reasonable good faith
         determination (made in a manner generally consistent with the Bank's
         standard practices) of compensation owing under this Section 2.9(a)
         shall, absent manifest error, be conclusive and binding for all
         purposes. Each Bank, at the time such Bank demands payment under this
         Section 2.9(a), shall submit to the Borrower and the Agent a
         certificate (A) as to the amount of such increased cost, (B) detailing
         the calculation of such cost, and (C) certifying that such Bank is
         generally charging such costs to other similarly situated borrowers
         under similar credit facilities; provided that, unless such Bank is
         also demanding compensation generally from other similarly situated
         borrowers of such Bank under similar credit facilities, the Borrower
         shall not be required to compensate such Bank pursuant to this Section
         2.9(a) for any increased costs.

                  (b) Capital Adequacy. If any Bank or any Issuing Bank
         determines in good faith that compliance with any law or regulation or
         any guideline or request from any central bank or other Governmental
         Authority (whether or not having the force of law) implemented or
         effective after the date of this Agreement affects or would affect the
         amount of capital required or expected to be maintained by such Bank or
         such Issuing Bank and that the amount of such capital is increased by
         or based upon the existence of such Bank's commitment to lend or such
         Issuing Bank's commitment to issue Letters of Credit or any Bank's
         commitment to risk participate in Letters of Credit and other
         commitments of this type, then, upon 30 days prior written notice by
         such Bank or such Issuing Bank (with a copy of any such demand to the
         Agent), the Borrower shall pay to the Agent for the account of

                                      -33-
<PAGE>

         such Bank or to such Issuing Bank, as the case may be, from time to
         time as specified by such Bank or such Issuing Bank, additional amounts
         (without duplication of any other amounts payable in respect of
         increased costs) sufficient to compensate such Bank or such Issuing
         Bank, in light of such circumstances, (i) with respect to such Bank, to
         the extent that such Bank reasonably determines such increase in
         capital to be allocable to the existence of such Bank's commitment to
         lend under this Agreement or its commitment to risk participate in
         Letters of Credit and (ii) with respect to such Issuing Bank, to the
         extent that such Issuing Bank reasonably determines such increase in
         capital to be allocable to the issuance or maintenance of the Letters
         of Credit. In determining such additional amounts, each Bank will act
         reasonably and in good faith and will use averaging and attribution
         methods which are reasonable, provided that such Bank's reasonable good
         faith determination (made in a manner generally consistent with the
         Bank's standard practices) of compensation owing under this Section
         2.9(b) shall, absent manifest error, be conclusive and binding for all
         purposes. Each Bank, at the time such Bank demands payment under this
         Section 2.9(b), shall submit to the Borrower and the Agent a
         certificate (A) as to the amount of such additional amounts, (B)
         detailing the calculation of such additional amounts, and (C)
         certifying that such Bank is generally charging such additional amounts
         to other similarly situated borrowers under similar credit facilities;
         provided that, unless such Bank is also demanding compensation
         generally from other similarly situated borrowers of such Bank under
         similar credit facilities, the Borrower shall not be required to
         compensate such Bank pursuant to this Section 2.9(b) for any additional
         amounts.

                  (c) Letters of Credit. If, after the date hereof, any change
         in any law or regulation or in the interpretation thereof by any court
         or administrative or Governmental Authority charged with the
         administration thereof shall either (i) impose, modify or deem
         applicable any reserve, special deposit or similar requirement against
         letters of credit issued by, or assets held by, or deposits in or for
         the account of, any Issuing Bank or any Bank or (ii) impose on such
         Issuing Bank or any Bank any other condition regarding the provisions
         of this Agreement relating to the Letters of Credit or any Letter of
         Credit Obligations, and the result of any event referred to in the
         preceding clause (i) or (ii) shall be to increase the cost to such
         Issuing Bank of issuing or maintaining any Letter of Credit, or
         increase the cost to such Bank of its risk participation in any Letter
         of Credit (which increase in cost shall be determined by such Issuing
         Bank's or such Bank's reasonable allocation of the aggregate of such
         cost increases resulting from such event), then, within 30 days of
         written demand by such Issuing Bank or such Bank (with a copy sent to
         the Agent), as the case may be, the Borrower shall pay to the Agent for
         the account of such Issuing Bank or such Bank, as the case may be, from
         time to time as specified by such Issuing Bank or such Bank, additional
         amounts which shall be sufficient to compensate such Issuing Bank or
         such Bank for such increased cost. Each Issuing Bank and each Bank
         agrees to use commercially reasonable efforts (consistent with internal
         policy and legal and regulatory restrictions) to designate a different
         Applicable Lending Office for the booking of its Letters of Credit or
         risk participations if the making of such designation would avoid the
         effect of this Section 2.9(c) and would not, in the reasonable judgment
         of such Issuing Bank or such Bank, be otherwise disadvantageous to such
         Issuing Bank or such Bank, as the case may be. In determining such
         increased costs, each Bank will act reasonably and in good faith and
         will use averaging and attribution

                                      -34-
<PAGE>

         methods which are reasonable, provided that such Bank's reasonable good
         faith determination (made in a manner generally consistent with the
         Bank's standard practices) of compensation owing under this Section
         2.9(c) shall, absent manifest error, be conclusive and binding for all
         purposes. Each Bank, at the time such Bank demands payment under this
         Section 2.9(c), shall submit to the Borrower and the Agent a
         certificate (A) as to the amount of such increased cost, (B) detailing
         the calculation of such cost, and (C) certifying that such Bank is
         generally charging such costs to other similarly situated borrowers
         under similar credit facilities; provided that, unless such Bank is
         also demanding compensation generally from other similarly situated
         borrowers of such Bank under similar credit facilities, the Borrower
         shall not be required to compensate such Bank pursuant to this Section
         2.9(c) for any increased costs.

         Section 2.10 Payments and Computations.

                  (a) Payment Procedures. Except if otherwise set forth herein,
         the Borrower shall make each payment under this Agreement and under the
         Notes not later than 11:00 a.m. (Dallas, Texas time) on the day when
         due in Dollars to the Agent at the location referred to in the Notes
         (or such other location as the Agent shall designate in writing to the
         Borrower) in same day funds without set-off, counterclaims or other
         deduction. The Agent will promptly thereafter cause to be distributed
         like funds relating to the payment of principal, interest or fees
         ratably (other than amounts payable solely to the Agent, the Issuing
         Banks or a specific Bank pursuant to Section 2.1(b), 2.3(b), 2.3(c),
         2.6(c), 2.8, 2.9, 2.11, 2.12 or 2.13(c) but after taking into account
         payments effected pursuant to Section 9.4) to the Banks in accordance
         with each Bank's Pro Rata Share for the account of their respective
         Applicable Lending Offices, and like funds relating to the payment of
         any other amount payable to any Bank or any Issuing Bank to such Bank
         or such Issuing Bank for the account of its Applicable Lending Office,
         in each case to be applied in accordance with the terms of this
         Agreement.

                  (b) Computations. All computations of interest or fees based
         on the Base Rate, the Eurodollar Rate or the Federal Funds Rate shall
         be made by the Agent on the basis of a year of 360 days, in each case
         for the actual number of days (including the first day, but excluding
         the last day) occurring in the period for which such interest or fees
         are payable. Each determination by the Agent of an interest rate shall
         be conclusive and binding for all purposes, absent manifest error.

                  (c) Non-Business Day Payments. Whenever any payment shall be
         stated to be due on a day other than a Business Day, such payment shall
         be made on the next succeeding Business Day, and such extension of time
         shall in such case be included in the computation of payment of
         interest or fees, as the case may be; provided, however, that if such
         extension would cause payment of interest on or principal of Eurodollar
         Rate Advances to be made in the next following calendar month, such
         payment shall be made on the next preceding Business Day.

                  (d) Agent Reliance. Unless the Agent shall have received
         written notice from the Borrower prior to the date on which any payment
         is due to the Banks that the Borrower will

                                      -35-
<PAGE>

         not make such payment in full, the Agent may assume that the Borrower
         has made such payment in full to the Agent on such date and the Agent
         may, in reliance upon such assumption, cause to be distributed to each
         Bank on such date an amount equal to the amount then due to such Bank.
         If and to the extent the Borrower shall not have so made such payment
         in full to the Agent, each Bank shall repay to the Agent forthwith on
         demand such amount distributed to such Bank, together with interest,
         for each day from the date such amount is distributed to such Bank
         until the date such Bank repays such amount to the Agent, at the
         Federal Funds Rate for such day.

                  (e) Application of Payments. Unless otherwise specified in
         Section 2.7 hereof, whenever any payment received by the Agent under
         this Agreement is insufficient to pay in full all amounts then due and
         payable under this Agreement and the Notes, such payment shall be
         distributed and applied by the Agent and the Banks in the following
         order: first, to the payment of fees and expenses due and payable to
         the Agent or Wells Fargo under and in connection with this Agreement or
         any other Credit Document; second, to the payment of all expenses due
         and payable under Section 2.11(c), ratably among the Banks in
         accordance with the aggregate amount of such payments owed to each such
         Bank; third, to the payment of fees due and payable to the Issuing
         Banks pursuant to Section 2.3(b); fourth, to the payment of all other
         fees due and payable under Section 2.3 ratably among the Banks in
         accordance with their applicable Commitments; and fifth, to the payment
         of the interest accrued on and the principal amount of all of the
         Advances, Reimbursement Obligations and other Obligations, regardless
         of whether any such amount is then due and payable, ratably among the
         Banks in accordance with the aggregate accrued interest plus the
         aggregate principal amount owed to such Bank.

         Section 2.11 Taxes.

                  (a) No Deduction for Certain Taxes. Any and all payments by
         the Borrower shall be made, in accordance with Section 2.10, free and
         clear of and without deduction for any and all present or future taxes,
         levies, imposts, deductions, charges or withholdings, and all
         liabilities with respect thereto, excluding, in the case of each Bank,
         each Issuing Bank and the Agent, taxes imposed on its income, and
         franchise taxes imposed on it, by the jurisdiction under the laws of
         which such Bank, such Issuing Bank or the Agent (as the case may be) is
         organized or any political subdivision of such jurisdiction (all such
         non-excluded taxes, levies, imposts, deductions, charges, withholdings
         and liabilities being hereinafter referred to as "Taxes") and, in the
         case of each Bank and each Issuing Bank, Taxes by the jurisdiction of
         such Bank's Applicable Lending Office or any political subdivision of
         such jurisdiction. If the Borrower shall be required by law to deduct
         any Taxes from or in respect of any sum payable to any Bank, any
         Issuing Bank or the Agent, (i) the sum payable shall be increased as
         may be necessary so that, after making all required deductions
         (including deductions applicable to additional sums payable under this
         Section 2.11), such Bank, such Issuing Bank or the Agent (as the case
         may be) receives an amount equal to the sum it would have received had
         no such deductions been made; provided, however, that if the Borrower's
         obligation to deduct or withhold Taxes is caused solely by such Bank's,
         such Issuing Bank's or the Agent's failure to provide the forms
         described in Section 2.11(e) and such Bank, such Issuing Bank or the
         Agent could have provided such forms, no such increase shall be
         required; (ii) the

                                      -36-
<PAGE>

         Borrower shall make such deductions; and (iii) the Borrower shall pay
         the full amount deducted to the relevant taxation authority or other
         authority in accordance with applicable law.

                  (b) Other Taxes. In addition, the Borrower agrees to pay any
         present or future stamp or documentary taxes or any other excise or
         property taxes, charges or similar levies which arise from any payment
         made or from the execution, delivery or registration of, or otherwise
         with respect to, this Agreement, the Notes, or the other Credit
         Documents (hereinafter referred to as "Other Taxes").

                  (c) Indemnification. In addition, the Borrower agrees to
         indemnify each Bank, each Issuing Bank and the Agent for the full
         amount of Taxes or Other Taxes (including, without limitation, any
         Taxes or Other Taxes imposed by any jurisdiction on amounts payable
         under this Section 2.11) paid by such Bank, such Issuing Bank or the
         Agent (as the case may be) and any liability (including interest and
         expenses) arising therefrom or with respect thereto, whether or not
         such Taxes or Other Taxes were correctly or legally asserted. Each
         payment required to be made by the Borrower in respect of this
         indemnification shall be made to the Agent for the benefit of any party
         claiming such indemnification within 30 days from the date the Borrower
         receives written demand detailing the calculation of such amounts
         therefor from the Agent on behalf of such Bank, such Issuing Bank or
         the Agent. If any Bank, any Issuing Bank or the Agent receives a refund
         in respect of any taxes paid by the Borrower under this Section
         2.11(c), such Bank, such Issuing Bank or the Agent, as the case may be,
         shall promptly pay to the Borrower such refund.

                  (d) Evidence of Tax Payments. The Borrower will pay prior to
         delinquency all Taxes payable in respect of any payment. Within 30 days
         after the date of any payment of Taxes, the Borrower will furnish to
         the Agent, at its address referred to in Section 9.2, the original or a
         certified copy of a receipt evidencing payment of such Taxes.

                  (e) Foreign Bank Withholding Exemption. Each Bank and each
         Issuing Bank that is not incorporated under the laws of the U.S. or a
         state thereof (a "Non-U.S. Lender") agrees that it will deliver to the
         Borrower and the Agent on the date of this Agreement or upon the
         effectiveness of any Assignment and Acceptance (i) two duly completed
         copies of U.S. Internal Revenue Service Form W-8ECI or W-8BEN or, in
         the case of a Non-U.S. Lender claiming exemption from U.S. federal
         withholding tax under Section 871(h) or 881(c)of the Code, with respect
         to payments of "portfolio interest", a statement substantially in the
         form of Exhibit J hereto, appropriately completed, and a form W-8BEN,
         or other equivalent successor form, as appropriate, certifying in each
         case that such Bank is entitled to receive payments under this
         Agreement and the Notes payable to it, without deduction or withholding
         of any U.S. federal income taxes and (ii) any other governmental forms
         which are necessary or required under an applicable tax treaty or
         otherwise by law to reduce or eliminate any withholding tax, which have
         been reasonably requested by the Borrower. Each Bank which delivers to
         the Borrower and the Agent a Form W-8ECI or W-8BEN, or other equivalent
         successor form, as appropriate, further undertakes to deliver to the
         Borrower and the Agent two further copies of such form, or successor
         applicable forms, or other manner of certification, as the case may be,
         on or before the date that any such form expires or

                                      -37-
<PAGE>

         becomes obsolete or after the occurrence of any event requiring a
         change in the most recent form previously delivered by it to the
         Borrower and the Agent, and such extensions or renewals thereof as may
         reasonably be requested by the Borrower and the Agent certifying in the
         case of a Form W-8ECI or W-8BEN that such Bank is entitled to receive
         payments under this Agreement without deduction or withholding of any
         U.S. federal income taxes. If an event (including without limitation
         any change in treaty, law or regulation) has occurred prior to the date
         on which any delivery required by the preceding sentence would
         otherwise be required which renders all such forms inapplicable or
         which would prevent any Bank from duly completing and delivering any
         such letter or form with respect to it and such Bank advises the
         Borrower and the Agent that it is not capable of receiving payments
         without any deduction or withholding of U.S. federal income tax, such
         Bank shall not be required to deliver such forms. The Borrower shall
         withhold tax at the rate and in the manner required by the laws of the
         U.S. with respect to payments made to a Bank failing to timely provide
         the requisite Internal Revenue Service forms.

         Section 2.12 Illegality. If any Bank shall notify the Agent and the
Borrower that the introduction of or any change in or in the interpretation of
any law or regulation after the date hereof makes it unlawful, or that any
central bank or other Governmental Authority asserts that it is unlawful, for
such Bank or its Eurodollar Lending Office to perform its obligations under this
Agreement to maintain any Eurodollar Rate Advances of such Bank then outstanding
hereunder, then, notwithstanding anything herein to the contrary, the Borrower
shall, if demanded by such Bank in its notice, no later than 11:00 a.m. (Dallas,
Texas time), (a) if not prohibited by law or regulation to maintain such
Eurodollar Rate Advances for the duration of the Interest Period, on the last
day of the Interest Period for each outstanding Eurodollar Rate Advance of such
Bank or (b) if prohibited by law or regulation to maintain such Eurodollar Rate
Advances for the duration of the Interest Period, on the second Business Day
following its receipt of such notice from such Bank, Convert all Eurodollar Rate
Advances of such Bank then outstanding to Base Rate Advances and pay accrued
interest on the principal amount Converted to the date of such Conversion and
amounts, if any, required to be paid pursuant to Section 2.8 as a result of such
Conversion being made on such date. Each Bank agrees to use commercially
reasonable efforts (consistent with its internal policies and legal and
regulatory restrictions) to designate a different Applicable Lending Office if
the making of such designation would avoid the effect of this Section 2.12 and
would not, in the reasonable judgment of such Bank, be otherwise disadvantageous
to such Bank.

         Section 2.13 Letters of Credit.

                  (a) Issuance. From time to time from the date of this
         Agreement until three months before the Maturity Date, at the request
         of the Borrower, each Issuing Bank shall, on any Business Day and on
         the terms and conditions hereinafter set forth, issue, increase,
         decrease, amend or extend the expiration date of Letters of Credit for
         the account of the Borrower (for its own benefit or for the benefit of
         any of its Subsidiaries). No Letter of Credit will be issued, increased
         or extended (i) if such issuance, increase or extension would cause the
         Letter of Credit Exposure to exceed the lesser of (A) $100,000,000 or
         (B) an amount equal to the remainder of (1) the lesser of the Borrowing
         Base or the aggregate Commitments minus (2) the aggregate outstanding
         principal amount of the Revolving Advances and Swingline Advances at
         such time; (ii) unless such Letter of Credit has an

                                      -38-
<PAGE>

         Expiration Date not later than the earlier of (A) one year after the
         date of issuance thereof or (b) five days before the Maturity Date;
         (iii) unless such Letter of Credit is in form and substance acceptable
         to the respective Issuing Bank in its sole discretion; (iv) unless such
         Letter of Credit is a standby letter of credit not supporting the
         repayment of indebtedness for borrowed money of any Person, other than
         a Letter of Credit issued in substitution of any letter of credit
         outstanding on the Effective Date and listed on Schedule 1.1(b); (v)
         unless the Borrower has delivered to the respective Issuing Bank a
         completed and executed letter of credit application on such Issuing
         Bank's standard form, which shall contain terms no more restrictive
         than the terms of this Agreement; and (vi) unless such Letter of Credit
         is governed by the Uniform Customs and Practice for Documentary Credits
         (1993 Revision), International Chamber of Commerce Publication No. 500
         ("UCP") or any successor to the UCP. If the terms of any letter of
         credit application referred to in the foregoing clause (v) conflicts
         with the terms of this Agreement, the terms of this Agreement shall
         control.

                  (b) Participations. With respect to each letter of credit
         described on Schedule 1.1(b), the Borrower, the Agent, the Issuing Bank
         and the Banks agree that such letters of credit shall constitute
         Letters of Credit for all purposes of this Agreement and each Bank
         agrees that it has a participation in the related Letter of Credit
         Exposure equal to such Bank's Pro Rata Share on the Effective Date. On
         the date of the issuance or increase of any Letter of Credit on or
         after the Effective Date, each Issuing Bank shall be deemed to have
         sold to each other Bank and each other Bank shall have been deemed to
         have purchased from such Issuing Bank a participation in the Letter of
         Credit Exposure related to the Letters of Credit issued by such Issuing
         Bank equal to such Bank's Pro Rata Share at such date and such sale and
         purchase shall otherwise be in accordance with the terms of this
         Agreement. Each Issuing Bank shall promptly notify each such
         participant Bank by telex, telephone or telecopy of each Letter of
         Credit of such Issuing Bank issued, increased or decreased, and the
         actual dollar amount of such Bank's participation in such Letter of
         Credit. Each Bank's obligation to purchase participating interests
         pursuant to this Section 2.13(b) and to reimburse the respective
         Issuing Bank for such Bank's Pro Rata Share of any payment under a
         Letter of Credit issued by such Issuing Bank and not reimbursed in full
         by the Borrower shall be absolute and unconditional and shall not be
         affected by any circumstance, including, without limitation, (i) any of
         the circumstances described in Section 2.13(d) below, (ii) the
         occurrence and continuance of a Default, (iii) an adverse change in the
         financial condition of the Borrower or any Guarantor, or (iv) any other
         circumstance, happening or event whatsoever, whether or not similar to
         any of the foregoing, except for any such circumstance, happening or
         event constituting or arising from gross negligence or willful
         misconduct on the part of such Issuing Bank.

                  (c) Reimbursement. The Borrower hereby agrees to pay on demand
         to each Issuing Bank in respect of each Letter of Credit issued by such
         Issuing Bank an amount equal to any amount paid by such Issuing Bank
         under or in respect of such Letter of Credit. In the event any Issuing
         Bank makes a payment pursuant to a request for draw presented under a
         Letter of Credit and such payment is not promptly reimbursed by the
         Borrower upon demand, such Issuing Bank shall give notice of such
         payment to the Agent and the Banks, and each Bank shall promptly
         reimburse such Issuing Bank for such Bank's Pro Rata Share of such
         payment, and such reimbursement shall be deemed for all purposes of
         this Agreement to

                                      -39-
<PAGE>

         constitute a Base Rate Advance to the Borrower from such Bank. If such
         reimbursement is not made by any Bank to any Issuing Bank on the same
         day on which such Issuing Bank shall have made payment on any such
         draw, such Bank shall pay interest thereon to such Issuing Bank at a
         rate per annum equal to the Federal Funds Rate. The Borrower hereby
         unconditionally and irrevocably authorizes, empowers and directs the
         Agent and the Banks to record and otherwise treat each payment under a
         Letter of Credit not immediately reimbursed by the Borrower as a
         Borrowing comprised of Base Rate Advances to the Borrower.

                  (d) Obligations Unconditional. The obligations of the Borrower
         under this Agreement in respect of each Letter of Credit shall be
         unconditional and irrevocable, and shall be paid strictly in accordance
         with the terms of this Agreement under all circumstances,
         notwithstanding the following circumstances:

                           (i) any lack of validity or enforceability of any
                  Letter of Credit Documents;

                           (ii) any amendment or waiver of or any consent to
                  departure from any Letter of Credit Documents;

                           (iii) the existence of any claim, set-off, defense or
                  other right which the Borrower or any Bank or any other Person
                  may have at any time against any beneficiary or transferee of
                  such Letter of Credit (or any Persons for whom any such
                  beneficiary or any such transferee may be acting), the
                  respective Issuing Bank or any other Person or entity, whether
                  in connection with this Agreement, the transactions
                  contemplated in this Agreement or in any Letter of Credit
                  Documents or any unrelated transaction;

                           (iv) any statement or any other document presented
                  under such Letter of Credit proving to be forged, fraudulent,
                  invalid or insufficient in any respect or any statement
                  therein being untrue or inaccurate in any respect to the
                  extent the respective Issuing Bank would not be liable
                  therefor pursuant to the following Section 2.13(e);

                           (v) payment by the respective Issuing Bank under such
                  Letter of Credit against presentation of a draft or
                  certificate which does not comply with the terms of such
                  Letter of Credit; or

                           (vi) any other circumstance or happening whatsoever,
                  whether or not similar to any of the foregoing;

provided, however, that nothing contained in this Section 2.13(d) shall be
deemed to constitute a waiver of any remedies of the Borrower in connection with
the Letters of Credit.

                  (e) Liability of Issuing Banks. The Borrower assumes all risks
         of the acts or omissions of any beneficiary or transferee of any Letter
         of Credit with respect to its use of

                                      -40-
<PAGE>

         such Letter of Credit. No Issuing Bank nor any of its officers or
         directors shall be liable or responsible for:

                           (i) the use which may be made of any Letter of Credit
                  or any acts or omissions of any beneficiary or transferee in
                  connection therewith;

                           (ii) the validity, sufficiency or genuineness of
                  documents, or of any endorsement thereon, even if such
                  documents should prove to be in any or all respects invalid,
                  insufficient, fraudulent or forged;

                           (iii) payment by such Issuing Bank against
                  presentation of documents which do not comply with the terms
                  of a Letter of Credit, including failure of any documents to
                  bear any reference or adequate reference to the relevant
                  Letter of Credit; or

                           (iv) any other circumstances whatsoever in making or
                  failing to make payment under any Letter of Credit (including
                  such Issuing Bank's own negligence),

                  except that the Borrower shall have a claim against such
         Issuing Bank, and such Issuing Bank shall be liable to, and shall
         promptly pay to, the Borrower, to the extent of any direct, as opposed
         to consequential, damages suffered by the Borrower which the Borrower
         proves were caused by (A) such Issuing Bank's willful misconduct or
         gross negligence in determining whether documents presented under a
         Letter of Credit comply with the terms of such Letter of Credit or (B)
         such Issuing Bank's willful failure to make lawful payment under any
         Letter of Credit after the presentation to it of a draft and
         certificate strictly complying with the terms and conditions of such
         Letter of Credit. In furtherance and not in limitation of the
         foregoing, any Issuing Bank may accept documents that appear on their
         face to be in order, without responsibility for further investigation,
         regardless of any notice or information to the contrary.

         Section 2.14 Determination of Borrowing Base. The Borrowing Base shall
be determined by the Agent, as follows:

                  (a) Monthly. On the 25th day of each calendar month the Agent
         shall determine the Borrowing Base upon receipt of a Borrowing Base
         Certificate dated as of the last day of the immediately preceding
         calendar month.

                  (b) Property Adjustments. Following (i) any sale by the
         Borrower or any Guarantor of any Property included in the Borrowing
         Base with a sales value in excess of $25,000,000 individually or in the
         aggregate since the most recent month end, (ii) any loss or casualty
         not covered by insurance resulting in destruction of any Property
         included in the Borrowing Base if the loss or casualty exceeds
         $25,000,000 individually or in the aggregate since the most recent
         month end, or (iii) any permitted purchase by the Borrower or any
         Guarantor of any Property which can be included in the Borrowing Base
         with a purchase price in excess of $25,000,000 individually or in the
         aggregate since the most recent month end (each of such events
         hereinafter called an "Adjustment Event"), the Borrower shall (in

                                      -41-
<PAGE>

         the case of clauses (i) and (ii) above) or may (in the case of clause
         (iii) above) give the Agent notice of such Adjustment Event within five
         Business Days of the closing of such Adjustment Event, and the Agent
         may in its sole reasonable discretion (in the case of clauses (i) and
         (ii) above) or shall (in the case of clause (iii) above) further adjust
         the appropriate Borrowing Base components set forth in the most recent
         month end Borrowing Base Certificate delivered by the Borrower to the
         Banks to reflect the Adjustment Events occurring since the date of such
         Borrowing Base Certificate.

                  (c) Notice of Borrowing Base Change. Promptly following any
         date the Borrowing Base is redetermined in accordance with this Section
         2.14, the Agent shall give notice to the Banks and the Borrower of the
         new Borrowing Base.

         Section 2.15 Bank Replacement.

                  (a) Right to Replace. The Borrower shall have the right to
         replace each Bank affected by a condition under clause (v) of Section
         2.2(c), Section 2.9 or Section 2.12 for more than 90 days or each Bank
         which fails to consent to any extension of the Maturity Date pursuant
         to Section 2.18 (each such Bank, an "Affected Bank") in accordance with
         the procedures in this Section 2.15 and provided that no reduction of
         the total Commitments occurs as a result thereof.

                  (b) First Right of Refusal; Replacement.

                           (i) Upon the occurrence of any condition permitting
                  the replacement of a Bank, each Bank which is not an Affected
                  Bank shall have the right, but not the obligation, to elect to
                  increase its respective Commitment by an amount not to exceed
                  the amount of the Commitments of the Affected Banks, which
                  election shall be made by written notice from each such Bank
                  to the Agent and the Borrower given within 30 days after the
                  date such condition occurs specifying the amount of such
                  proposed increase in such Bank's Commitment.

                           (ii) If the aggregate amount of the proposed
                  increases in Commitments of all such Banks making such an
                  election is in excess of the Commitments of the Affected
                  Banks, (A) the Commitments of the Affected Banks shall be
                  allocated pro rata among such Banks based on the respective
                  amounts of the proposed increases to Commitments elected by
                  each of such Banks, and (B) the respective Commitments of such
                  Banks shall be increased by the respective amounts as so
                  allocated so that, after giving effect to such termination and
                  increases, the aggregate amount of the Commitments of all of
                  the Banks will be the same as prior to such termination.

                           (iii) If the aggregate amount of the proposed
                  increases in Commitments of all such Banks making such an
                  election equals the Commitments of the Affected Banks, the
                  respective Commitments of such Banks shall be increased by the
                  respective amounts of their proposed increases so that, after
                  giving effect to such termination and increases, the aggregate
                  amount of the Commitments of all of the Banks will be the same
                  as prior to such termination.

                                      -42-
<PAGE>

                           (iv) If the aggregate amount of the proposed
                  increases in Commitments of all such Banks making such an
                  election is less than the Commitments of the Affected Banks,
                  (A) the respective Commitments of such Banks shall be
                  increased by the respective amounts of their proposed
                  increases, and (B) the Borrower shall add additional Banks
                  which are Eligible Assignees to this Agreement to replace such
                  Affected Banks, which additional Banks would have aggregate
                  Commitments no greater than those of the Affected Banks minus
                  the amounts thereof assumed by the other Banks pursuant to
                  such increases.

                  (c) Procedure. Any assumptions of Commitments pursuant to this
         Section 2.15 shall be made by the purchasing Bank or Eligible Assignee
         and the selling Bank entering into an Assignment and Assumption and by
         following the procedures in Section 9.6 for adding a Bank. In
         connection with the increase of the Commitments of any Bank pursuant to
         the foregoing Section 2.15(b), each Bank with an increased Commitment
         shall purchase from the Affected Banks at par such Bank's ratable share
         of the outstanding Advances of the Affected Banks and assume such
         Bank's ratable share of the Affected Banks' Letter of Credit Exposure.

         Section 2.16 Sharing of Payments, Etc. If any Bank shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off or otherwise) on account of its Advances or its share of Letter of
Credit Obligations in excess of its Pro Rata Share of payments on account of the
Advances or Letter of Credit Obligations obtained by all the Banks, such Bank
shall notify the Agent and forthwith purchase from the other Banks such
participations in the Advances made by them or Letter of Credit Obligations held
by them as shall be necessary to cause such purchasing Bank to share the excess
payment ratably in accordance with the requirements of this Agreement with each
of them; provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Bank, such purchase from each Bank
shall be rescinded and such Bank shall repay to the purchasing Bank the purchase
price to the extent of such Bank's ratable share (according to the proportion of
(a) the amount of the participation sold by such Bank to the purchasing Bank as
a result of such excess payment to (b) the total amount of such excess payment)
of such recovery, together with an amount equal to such Bank's ratable share
(according to the proportion of (i) the amount of such Bank's required repayment
to the purchasing Bank to (ii) the total amount of all such required repayments
to the purchasing Bank) of any interest or other amount paid or payable by the
purchasing Bank in respect of the total amount so recovered. The Borrower agrees
that any Bank so purchasing a participation from another Bank pursuant to this
Section 2.16 may, to the fullest extent permitted by law, unless and until
rescinded as provided above, exercise all its rights of payment (including the
right of set-off) with respect to such participation as fully as if such Bank
were the direct creditor of the Borrower in the amount of such participation.

         Section 2.17 Increase of Commitments. By delivery of an effective
Increase Notice to the Agent (which the Agent shall promptly distribute to the
Banks), the Borrower may request an increase of the aggregate amount of the
Commitments; provided that (a) the aggregate amount of the Commitments both
before and after giving effect to such requested increase shall not exceed
$275,000,000, (b) no Default or Event of Default shall have occurred and be
continuing or would result therefrom and (c) the Borrower shall cause to be
delivered to the Agent a commitment (or

                                      -43-
<PAGE>

commitments) from (i) at least one Bank that commits to lending to the Borrower
more than its then current Commitment (such Bank to be referred to herein as an
"Existing Bank" and such amount of its commitment above its then current
Commitment to be referred to herein as a "Commitment Supplement") and/or (ii)
any other Person (including an Affiliate of a Bank) that meets the requirements
(other than the approval requirement) of clause (a) or (b) of the definition of
"Eligible Assignee" (as defined in Article I hereof) and that commits to lending
to the Borrower and becoming a Bank under this Agreement (such Person to be
referred to herein as a "New Bank" and the amount of its commitment to be
referred to herein as a "New Commitment") (each Existing Bank and each New Bank
to be referred to herein collectively as the "Supplementing Banks"). Upon
receipt of notice from the Agent to the Banks and the Borrower that the
Supplementing Banks have agreed to commit to increase the Commitments by an
aggregate amount equal to the Increase Amount (as defined below) and execution
and delivery by the Borrower, the Agent and the Supplementing Banks of an
Increased Commitment Agreement evidencing such agreement, then (A) the then
current aggregate Commitments shall be increased by the Increase Amount, (B) the
then current Commitment of each Existing Bank shall be increased by such
Existing Bank's Commitment Supplement and (C) each of the New Banks will be
added as a Bank under this Agreement and each such New Bank's Commitment shall
be such New Bank's New Commitment. On the effective date of the Increased
Commitment Agreement, the Borrower shall request a Revolving Advance hereunder,
which Revolving Advance shall be made by (and only by) the Supplementing Banks
in the appropriate amounts as provided below. The proceeds of such Revolving
Advance shall be utilized by the Borrower to repay the Banks that did not agree
to increase their Commitments, such Revolving Advance and repayment to be in
amounts sufficient so that, after giving effect to the Increased Commitment
Agreement, the Revolving Advances and the Letter of Credit Exposure shall be
held by the Banks according to their Pro Rata Share of the Commitments as
increased in accordance with the Increased Commitment Agreement.

         Section 2.18 Extensions of the Maturity Date. In the manner set forth
in this Section 2.18, the Borrower may request that the Maturity Date may be
extended (i) up to two times, in each case, for a period of one year measured
from the Maturity Date then in effect or (ii) once for a period no longer than
two years measured from the Maturity Date in effect as of the Effective Date. If
the Borrower wishes to request such an extension of the Maturity Date, it shall
give written notice to that effect to the Agent not less than 60 days prior to
the date that is one year prior to the Maturity Date then in effect. If the
Agent approves of the requested extension of the Maturity Date, the Agent shall
promptly notify each Bank of receipt of such request and of the new requested
Maturity Date. Each Bank shall endeavor to respond to such request, whether
affirmatively or negatively (such determination in the sole discretion of such
Bank), by notice to the Borrower and the Agent within 21 days of receipt of such
request. If (but only if) all Banks approve of the requested extension of the
Maturity Date, the Maturity Date for all purposes of this Agreement shall be the
extended Maturity Date specified in the notice from the Agent to the Banks that
was approved by all Banks, and the Agent shall give written notice of such
extended Maturity Date to the Borrower, the Issuing Bank and the Banks.

         Section 2.19 Agreements regarding Subsidiaries.

                  (a) Domestic Subsidiaries. The Borrower agrees that it shall
         cause each Domestic Subsidiary to guarantee the payment and performance
         of the Obligations pursuant

                                      -44-
<PAGE>

         to the Guaranty to be executed by such Subsidiary prior to or
         substantially concurrent with the Borrower's execution of this
         Agreement. Contemporaneously with the creation or acquisition of any
         Domestic Subsidiary after the Closing Date, the Borrower shall (i)
         cause such Domestic Subsidiary to guarantee the payment and performance
         of the Obligations by executing and delivering to the Agent an
         Accession Agreement, (ii) deliver a certificate covering the same
         matters described in clause (iii) of Section 3.1(a) with respect to
         such Domestic Subsidiary and (iii) deliver an opinion of Borrower's
         counsel with respect thereto covering the matters previously opined on
         with regard to each Guarantor.

                  (b) Foreign Subsidiaries. The Borrower agrees that it shall,
         and shall cause each Subsidiary that owns any Capital Stock of a
         Foreign Subsidiary to, pledge two-thirds of all issued and outstanding
         shares of each class of Capital Stock of each Foreign Subsidiary (or,
         in the event that the Borrower and its Subsidiaries own, in the
         aggregate, less than two-thirds of the issued and outstanding shares of
         any class of such Capital Stock, all of such issued and outstanding
         shares owned by the Borrower and its Subsidiaries) to the Agent as
         security for the payment and performance of the Obligations, each of
         which pledges shall be pursuant to a pledge and security agreement in
         form and substance satisfactory to the Agent (the "Foreign Stock Pledge
         Agreements"); provided, however, that neither the Borrower nor any of
         its Subsidiaries shall be required to pledge the Capital Stock of
         Foreign Subsidiaries which, in the aggregate, contribute less than
         12.5% of the EBITDA of the Borrower and its Subsidiaries on a
         consolidated basis determined as of the most recent Calculation Day
         based on the Calculation Period then ended; provided, further, however,
         that if, for any subsequent Calculation Period, EBITDA of the Foreign
         Stock Subsidiaries whose Capital Stock is not pledged pursuant to this
         Section 2.19(b) equals 12.5% or more of the EBITDA of the Borrower and
         its Subsidiaries on a consolidated basis, the Borrower and its
         Subsidiaries shall promptly (and in any event within ten Business Days
         after such determination is initially made) execute additional Foreign
         Stock Pledge Agreements which pledge the Capital Stock of additional
         Foreign Subsidiaries such that the EBITDA of the Foreign Stock
         Subsidiaries whose Capital Stock is not pledged is less than 12.5% of
         the EBITDA of the Borrower and its Subsidiaries on a consolidated
         basis. Each of such pledges shall constitute a perfected, first
         priority Lien in all such Capital Stock of each Foreign Subsidiary. In
         addition to the foregoing and in connection with the Foreign Stock
         Pledge Agreements, the Borrower and its applicable Subsidiaries shall
         deliver to the Agent the original certificates evidencing all of the
         Capital Stock so pledged, together with stock powers appropriately
         executed in blank or other instruments of transfer in form and
         substance satisfactory to the Agent.

                                  ARTICLE III

                              CONDITIONS OF LENDING

         Section 3.1 Conditions Precedent to Effectiveness of this Agreement.
This Agreement shall become effective upon the following conditions precedent
having been satisfied or, at the discretion of the Agent and the Banks, waived
by the Agent and the Banks:

                  (a) Documentation. The Agent shall have received counterparts
         of this Agreement executed by the Borrower and the Banks, and the
         following duly executed by all

                                      -45-
<PAGE>

         the parties thereto, in form and substance satisfactory to the Agent,
         and in sufficient copies for each Bank:

                           (i) the Guaranty and the Foreign Stock Pledge
                  Agreements, if any are required hereunder, together with the
                  original certificates evidencing all of the Capital Stock
                  pledged pursuant to such Foreign Stock Pledge Agreements and
                  stock powers appropriately executed in blank or other
                  instruments of transfer in form and substance satisfactory to
                  the Agent;

                           (ii) a certificate from the chief executive officer,
                  president or chief financial officer of the Borrower dated as
                  of the Effective Date stating that as of the Effective Date
                  (A) all representations and warranties of the Borrower set
                  forth in this Agreement and the other Credit Documents are
                  true and correct in all material respects, (B) no Default has
                  occurred and is continuing, and (C) all of the conditions in
                  this Section 3.1 have been met;

                           (iii) a certificate of the Secretary or an Assistant
                  Secretary of the Borrower and each Guarantor dated as of the
                  date of this Agreement certifying (as of the date of this
                  Agreement) to (A) the names and true signatures of officers of
                  the Borrower and such Guarantor authorized to sign the Credit
                  Documents to which such Person is a party, (B) resolutions of
                  the Board of Directors of such Person with respect to the
                  transactions herein contemplated, (C) copies of the articles
                  or certificate of incorporation and bylaws of such Person, and
                  (D) copies of certificates of existence, good standing and
                  foreign qualification (if applicable) with respect to such
                  Person issued by the appropriate Governmental Authorities of
                  its jurisdiction of incorporation and the jurisdictions in
                  which it has its principal executive offices;

                           (iv) a favorable opinion of Richard F. Cooper,
                  General Counsel to the Borrower and Guarantors, dated as of
                  the Effective Date and in substantially the form of Exhibit K,
                  appropriately completed;

                           (v) the audited Consolidated and unaudited
                  consolidating balance sheet of the Borrower and its
                  Subsidiaries as at December 31, 2001, and the related
                  Consolidated and consolidating statements of operations,
                  shareholders' equity and cash flows, of the Borrower and its
                  Subsidiaries for the fiscal year then ended, duly certified by
                  the chief financial officer or treasurer of the Borrower;

                           (vi) a Borrowing Base Certificate dated as of April
                  30, 2002 duly completed and executed by the chief financial
                  officer or treasurer of the Borrower; and

                           (vii) such other documents, governmental
                  certificates, agreements and lien searches as the Agent may
                  reasonably request.

                  (b) Representations and Warranties. The representations and
         warranties contained in Article IV hereof, in Section 7 of the Guaranty
         and in the Foreign Stock Pledge

                                      -46-
<PAGE>

         Agreements, if any are required hereunder, and the other Credit
         Documents shall be true and correct in all material respects.

                  (c) Certain Payments. The Borrower shall have paid the fees
         required to be paid as of the Effective Date pursuant to the Agent's
         Fee Letter.

                  (d) Termination of Existing Credit Agreement. The Agent and
         the Banks shall have received sufficient evidence indicating that,
         contemporaneously with the making of the initial Advances, the
         obligations of the Borrower under the Existing Credit Agreement will be
         repaid with the proceeds of such Advances and thereafter all
         obligations of the Borrower and the lenders under the Existing Credit
         Agreement shall be terminated (including, without limitation, any
         obligations of any Subsidiary of the Borrower in respect of guaranties,
         security agreements executed in connection with such Existing Credit
         Agreement but excluding any obligations which expressly survive the
         repayment of the amounts owing under the Existing Credit Agreement) and
         all the collateral securing the indebtedness, liabilities and/or
         obligations of the Borrower or any of its Subsidiaries under the
         Existing Credit Agreement shall be released.

         Section 3.2 Conditions Precedent for each Borrowing or Letter of
Credit. The obligation of each Bank to fund an Advance on the occasion of each
Borrowing (other than the Conversion or continuation of any existing Borrowing
and other than a Mandatory Revolving Borrowing) and of any Issuing Bank to issue
or increase or extend any Letter of Credit shall be subject to the further
conditions precedent that, on the date of such Borrowing or the issuance or
increase or extension of such Letter of Credit, the following statements shall
be true (and each of the giving of the applicable Notice of Borrowing and the
acceptance by the Borrower of the proceeds of such Borrowing or the issuance or
increase or extension of such Letter of Credit shall constitute a representation
and warranty by the Borrower that on the date of such Borrowing or the issuance
or increase or extension of such Letter of Credit such statements are true):

                  (a) the representations and warranties contained in Article IV
         hereof, in Section 7 of the Guaranty and in the Foreign Stock Pledge
         Agreements, if any are required hereunder, and the other Credit
         Documents are correct in all material respects on and as of the date of
         such Borrowing or the issuance or increase or extension of such Letter
         of Credit, before and after giving effect to such Borrowing or to the
         issuance or increase or extension of such Letter of Credit and to the
         application of the proceeds from such Borrowing, as though made on and
         as of such date;

                  (b) no Default has occurred and is continuing or would result
         from such Borrowing or issuance or increase or extension or from the
         application of the proceeds therefrom; and

                  (c) no Material Adverse Change shall have occurred.

                                      -47-
<PAGE>

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         The Borrower represents and warrants to the Agent and the Banks as
follows, in each case (unless otherwise expressly stated in this Article IV
below) as of the Closing Date, as of the Effective Date, as of the date of each
Borrowing and as of the date of each issuance, renewal, extension or increase of
a Letter of Credit:

         Section 4.1 Corporate Existence; Subsidiaries. The Borrower is a
corporation duly organized, validly existing and in good standing under the laws
of Delaware and in good standing and qualified to do business in each
jurisdiction where its ownership or lease of property or conduct of its business
requires such qualification and where a failure to be qualified could reasonably
be expected to cause a Material Adverse Change. Each Subsidiary of the Borrower
is a corporation or a limited liability company duly organized, validly existing
and in good standing under the laws of its jurisdiction of incorporation or
organization and in good standing and qualified to do business in each
jurisdiction where its ownership or lease of property or conduct of its business
requires such qualification and where a failure to be qualified could reasonably
be expected to cause a Material Adverse Change. The Borrower has no Subsidiaries
on the date of this Agreement other than the Subsidiaries listed on the attached
Schedule 4.1, and Schedule 4.1 lists the jurisdiction of incorporation and the
address of the principal office of each such Subsidiary existing on the date of
this Agreement.

         Section 4.2 Corporate Power. The execution, delivery and performance by
the Borrower and each Guarantor of the Credit Documents to which it is a party
and the consummation of the transactions contemplated hereby and thereby (a) are
within the Borrower's and the Guarantors' corporate or company (as applicable)
powers, (b) have been duly authorized by all necessary corporate or company (as
applicable) action, (c) do not contravene (i) the Borrower's or any Guarantor's
certificate or articles, as the case may be, of incorporation or by-laws or
other organizational documents or (ii) any law or any contractual restriction
binding on or affecting the Borrower or any Guarantor, the contravention of
which could reasonably be expected to cause a Material Adverse Change, and (d)
will not result in or require the creation or imposition of any Lien prohibited
by this Agreement. At the time of each Borrowing or the issuance, renewal,
extension or increase of each Letter of Credit, such Borrowing or issuance,
renewal, extension or increase (as applicable) and the use of the proceeds
thereof (A) will be within the Borrower's corporate or company (as applicable)
powers, (B) will have been duly authorized by all necessary corporate or company
(as applicable) action, (C) will not contravene (1) the Borrower's certificate
of incorporation or by-laws or other organizational documents or (2) any law or
any contractual restriction binding on or affecting the Borrower, the
contravention of which could reasonably be expected to cause a Material Adverse
Change, and (D) will not result in or require the creation or imposition of any
Lien prohibited by this Agreement.

         Section 4.3 Authorization and Approvals. No authorization or approval
or other action by, and no notice to or filing with, any Governmental Authority
is required for the due execution, delivery and performance by the Borrower or
any Guarantor of the Credit Documents to which it is a party or the consummation
of the transactions contemplated thereby. At the time of each

                                      -48-
<PAGE>

Borrowing or the issuance, renewal, extension or increase of each Letter of
Credit, no authorization or approval or other action by, and no notice to or
filing with, any Governmental Authority will be required therefor or for the use
of the proceeds thereof.

         Section 4.4 Enforceable Obligations. This Agreement, the Notes and the
other Credit Documents to which the Borrower is a party have been duly executed
and delivered by the Borrower and the Guaranty and the other Credit Documents to
which each Guarantor is a party have been duly executed and delivered by such
Guarantor. Each Credit Document is the legal, valid, and binding obligation of
the Borrower and each Guarantor which is a party to it enforceable against the
Borrower and each such Guarantor in accordance with its terms, except as such
enforceability may be limited by any applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors' rights generally
and by general principles of equity (whether considered in a proceeding at law
or in equity).

         Section 4.5 Financial Statements.

                  (a) The audited Consolidated and unaudited consolidating
         balance sheet of the Borrower and its Subsidiaries as at December 31,
         2001, and the related Consolidated and consolidating statements of
         operations, shareholders' equity and cash flows of the Borrower and its
         Subsidiaries for the fiscal year then ended, and the unaudited
         Consolidated and consolidating balance sheet of the Borrower and its
         Subsidiaries as at March 31, 2002 and the related Consolidated and
         consolidating statements of operations, shareholders' equity and cash
         flows of the Borrower and its Subsidiaries for the fiscal quarter then
         ended, copies of which have been furnished to each Bank duly certified
         by the chief financial officer or treasurer of the Borrower, fairly
         present the financial condition of the Borrower and its Subsidiaries as
         at such dates and the results of the operations of the Borrower and its
         Subsidiaries for the year or quarter (as applicable) ended on such
         dates, and such balance sheets and statements were prepared in
         accordance with GAAP.

                  (b) No Material Adverse Change has occurred.

         Section 4.6 True and Complete Disclosure. No representation, warranty
or other statement made by the Borrower (or on behalf of the Borrower) in this
Agreement or any other Credit Document contains any untrue statement of a
material fact or omits to state any material fact necessary to make the
statements contained therein not misleading in light of the circumstances in
which they were made as of the date of this Agreement. There is no fact known to
any Responsible Officer of the Borrower on the date of this Agreement and on the
Effective Date that has not been disclosed to the Agent which could reasonably
be expected to cause a Material Adverse Change. All projections, estimates and
pro forma financial information furnished by the Borrower or on behalf of the
Borrower were prepared on the basis of assumptions, data, information, tests or
conditions believed to be reasonable at the time such projections, estimates and
pro forma financial information were furnished.

         Section 4.7 Litigation. Except as set forth in the attached Schedule
4.7, there is no pending or, to the best knowledge of the Borrower, threatened
action or proceeding affecting the Borrower or any of its Subsidiaries before
any court, Governmental Authority or arbitrator, which

                                      -49-
<PAGE>

could reasonably be expected to cause a Material Adverse Change or which
purports to affect the legality, validity, binding effect or enforceability of
this Agreement, any Note or any other Credit Document.

         Section 4.8 Use of Proceeds.

                  (a) Revolving Advances. The proceeds of the Revolving Advances
         have been, and will be, used by the Borrower (i) to refinance existing
         indebtedness of the Borrower owed by it under the Existing Credit
         Agreement, (ii) to pay fees and expenses incurred in connection with
         the transactions contemplated by this Agreement and (iii) for working
         capital, general corporate purposes and other lawful purposes of the
         Borrower and its Subsidiaries.

                  (b) Swingline Line Advances. The proceeds of the Swingline
         Line Advances will be used by the Borrower for working capital, general
         corporate purposes and other lawful purposes of the Borrower and its
         Subsidiaries.

                  (c) Letter of Credit. The Letters of Credit will be used by
         the Borrower to support the general corporate purposes of the Borrower
         and its Subsidiaries.

                  (d) Regulations. No proceeds of Advances will be used to
         purchase or carry any margin stock in violation of Regulation T, U or X
         of the Federal Reserve Board, as the same is from time to time in
         effect, or any official ruling or interpretation thereunder or thereof.
         The Borrower is not engaged in the business of extending credit for the
         purpose of purchasing or carrying margin stock (within the meaning of
         Regulation U of the Federal Reserve Board).

         Section 4.9 Investment Company Act. Neither the Borrower nor any of its
Subsidiaries is an "investment company" or a company "controlled" by an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended.

         Section 4.10 Taxes. Except as set forth on Schedule 4.10(a), all
federal, state, local and foreign tax returns, reports and statements required
to be filed (after giving effect to any extension granted in the time for
filing) by the Borrower, its Subsidiaries or any member of the Controlled Group
(hereafter collectively called the "Tax Group") have been filed with the
appropriate governmental agencies in all jurisdictions in which such returns,
reports and statements are required to be filed, and where the failure to file
could reasonably be expected to cause a Material Adverse Change, except where
contested in good faith and by appropriate proceedings and where adequate
reserves therefor have been established to the extent required by GAAP; and all
material taxes and other material impositions due and payable have been timely
paid prior to the date on which any material fine, penalty, interest, late
charge or loss may be added thereto for non-payment thereof except where
contested in good faith and by appropriate proceedings and where adequate
reserves therefor have been established to the extent required by GAAP. Except
as set forth on Schedule 4.10(b), neither the Borrower nor any other member of
the Tax Group has given, or been requested to give, a waiver of the statute of
limitations relating to the payment of any federal, state, local or foreign
taxes or other impositions. None of the property owned by the Borrower or any
other

                                      -50-
<PAGE>

member of the Tax Group is property which the Borrower or any other member of
the Tax Group is required to treat as being owned by any other Person pursuant
to the provisions of Section 168(f)(8) of the Code. Proper and accurate amounts
have been withheld by the Borrower and all other members of the Tax Group from
their employees for all periods to comply in all material respects with the tax,
social security and unemployment withholding provisions of applicable federal,
state, local and foreign law. Timely payment of all material sales and use taxes
required by applicable law have been made by the Borrower and all other members
of the Tax Group, the failure to timely pay of which could reasonably be
expected to cause a Material Adverse Change. The amounts shown on all tax
returns to be due and payable have been paid in full or adequate provision
therefor is included on the books of the appropriate member of the Tax Group.

         Section 4.11 Pension Plans. All Plans are in compliance in all material
respects with all applicable provisions of ERISA. No Termination Event (other
than a Termination Event resulting from the termination, if any such termination
has occurred, of the Treadco Pension Plan) has occurred with respect to any
Plan, and each Plan has complied with and been administered in all material
respects in accordance with applicable provisions of ERISA and the Code. No
"accumulated funding deficiency" (as defined in Section 302 of ERISA) has
occurred and there has been no excise tax imposed under Section 4971 of the
Code. To the knowledge of any Responsible Officer of the Borrower, no Reportable
Event has occurred with respect to any Multiemployer Plan, and each
Multiemployer Plan has complied with and been administered in all material
respects with applicable provisions of ERISA and the Code. To the knowledge of
any Responsible Officer of the Borrower, neither the Borrower nor any other
member of the Controlled Group has had a complete or partial withdrawal from any
Multiemployer Plan for which there is any material withdrawal liability. As of
the most recent valuation date applicable thereto, neither the Borrower nor any
other member of the Controlled Group has received notice that any Multiemployer
Plan is insolvent or in reorganization.

         Section 4.12 Condition of Property; Casualties. The material Properties
used or to be used in the continuing operations of the Borrower and each of its
Subsidiaries, taken as a whole, are and will continue to be in good repair,
working order and condition, normal wear and tear excepted. Since the latest
quarterly financial statements provided by the Borrower to the Agent, neither
the business nor the material Properties of the Borrower and its Subsidiaries,
taken as a whole, has been materially and adversely affected as a result of any
fire, explosion, earthquake, flood, drought, windstorm, accident, strike or
other labor disturbance, embargo, requisition or taking of property or
cancellation of contracts, permits or concessions by a Governmental Authority,
riot, activities of armed forces or acts of God or of any public enemy.

         Section 4.13 Insurance. The Borrower and each of its Subsidiaries carry
insurance with reputable insurers in respect of such of their respective
Properties, in such amounts and against such risks as is customarily maintained
by other Persons of similar size engaged in similar businesses, or self-insure
to the extent that is customary for Persons of similar size engaged in similar
businesses.

         Section 4.14 No Burdensome Restrictions; No Defaults.

                  (a) Neither the Borrower nor any of its Subsidiaries is a
         party to any indenture, loan or credit agreement or any lease or other
         agreement, document or instrument or subject

                                      -51-
<PAGE>

         to any charter or corporate restriction or provision of applicable law
         or governmental regulation which could reasonably be expected to cause
         a Material Adverse Change. The Borrower and the Guarantors are not in
         default under or with respect to any contract, agreement, lease or
         other instrument to which the Borrower or any Guarantor is a party and
         which could reasonably be expected to cause a Material Adverse Change.
         As of the Effective Date, neither the Borrower nor any Guarantor has
         received any notice of default under any material contract, agreement,
         lease or other instrument to which the Borrower or such Guarantor is a
         party which is continuing and which, if not cured, could reasonably be
         expected to cause a Material Adverse Change.

                  (b) No Default has occurred and is continuing.

         Section 4.15 Environmental Condition.

                  (a) The Borrower and its Subsidiaries, taken as a whole, (i)
         have obtained all Environmental Permits necessary for the ownership and
         operation of their respective material Properties and the conduct of
         their respective businesses; (ii) have been and are in compliance with
         all terms and conditions of such Environmental Permits and with all
         other material requirements of applicable Environmental Laws of which
         the failure to comply could reasonably be expected to cause a Material
         Adverse Change; (iii) have not received notice of any violation or
         alleged violation of any Environmental Law or Environmental Permit,
         which violation could reasonably be expected to cause a Material
         Adverse Change; and (iv) are not subject to any actual or contingent
         material Environmental Claim, which Environmental Claim could
         reasonably be expected to cause a Material Adverse Change.

                  (b) None of the present or previously owned or operated
         Property of the Borrower or of any of its present or former
         Subsidiaries, wherever located, (i) has been placed on or proposed to
         be placed on the National Priorities List, the Comprehensive
         Environmental Response Compensation Liability Information System list,
         or their state or local analogs, or have been otherwise investigated,
         designated, listed or identified as a potential site for removal,
         remediation, cleanup, closure, restoration, reclamation or other
         response activity under any Environmental Laws which could reasonably
         be expected to cause a Material Adverse Change, (ii) is subject to a
         Lien, arising under or in connection with any Environmental Laws, that
         attaches to any revenues or to any Property owned or operated by the
         Borrower or any of its Subsidiaries, wherever located, which Lien could
         reasonably be expected to cause a Material Adverse Change, or (iii) has
         been the site of any Release of Hazardous Substances or Hazardous
         Wastes from present or past operations which has caused at the site or
         at any third-party site any condition that has resulted in or could
         reasonably be expected to result in the need for a Response that could
         cause a Material Adverse Change.

                  (c) Without limiting the foregoing, as of the Effective Date,
         the present and, to the best knowledge of any Responsible Officer of
         the Borrower, future liability, if any, of the Borrower and its
         Subsidiaries, taken as a whole, which could reasonably be expected to
         arise in connection with requirements under Environmental Laws will not
         result in a Material Adverse Change.

                                      -52-
<PAGE>

         Section 4.16 Permits, Licenses, Etc. Each of the Borrower and its
Subsidiaries possesses all certificates of public convenience, authorizations,
permits, licenses, patents, patent rights or licenses, trademarks, trademark
rights, trade names rights and copyrights which are material to the conduct of
its business. Each of the Borrower and its Subsidiaries manages and operates its
business in accordance with all applicable Legal Requirements which the failure
to so manage or operate could reasonably be expected to cause a Material Adverse
Change.

         Section 4.17 Existing Mortgage Debt. All outstanding Indebtedness
secured by a Lien on real property of the Borrower or any Guarantor existing as
of the Effective Date is described on Schedule 6.1, and the amount of such
Indebtedness shown on such Schedule is the aggregate outstanding amount as of
the Effective Date. No "default" or "event of default", however defined, has
occurred and is continuing under any documentation evidencing such Indebtedness
or the Lien securing such Indebtedness.

         Section 4.18 Property and Liens. As of the Effective Date, each of the
Borrower and its Subsidiaries has good title to or a valid leasehold interest in
its respective Property and none of such Property is subject to any Lien, except
as permitted by Section 6.1.

                                   ARTICLE V

                              AFFIRMATIVE COVENANTS

         So long as any Advance or any other Obligation or amount under any
Credit Document shall remain unpaid, any Letter of Credit shall remain
outstanding or any Bank shall have any Commitment, the Borrower agrees, unless
the Majority Banks shall otherwise consent in writing, to comply with each of
the following covenants:

         Section 5.1 Compliance with Laws, Etc. The Borrower will comply, and
cause each of its Subsidiaries to comply, with all Legal Requirements of which
the failure to comply could reasonably be expected to cause a Material Adverse
Change; provided, however, that this Section 5.1 shall not prevent the Borrower,
or any of its Subsidiaries from, in good faith and with reasonable diligence,
contesting the validity or application of any such laws or regulations by
appropriate legal proceedings.

         Section 5.2 Insurance. The Borrower will maintain, and cause each of
its Subsidiaries to maintain, insurance with responsible and reputable insurance
companies or associations in such amounts and covering such risks as are usually
carried by companies engaged in similar businesses and owning similar properties
in the same general areas in which the Borrower or such Subsidiary operates,
provided that the Borrower or such Subsidiary may self-insure to the extent and
in the manner normal for similarly situated companies of like size, type and
financial condition that are part of a group of companies under common control.
All policies shall expressly protect or recognize the Agent's interest (if any)
as required by the Agent. Upon request made by the Agent, the Borrower shall
deliver certificates evidencing such insurance and copies of the underlying
policies as they are available.

                                      -53-
<PAGE>

         Section 5.3 Preservation of Corporate Existence, Etc. The Borrower will
preserve and maintain, and cause each of the Guarantors to preserve and
maintain, its corporate existence, rights, franchises and privileges in the
jurisdiction of its incorporation or organization, and qualify and remain
qualified, and cause each such Guarantor to qualify and remain qualified, as a
foreign corporation in each jurisdiction in which qualification is necessary or
desirable in view of its business and operations or the ownership of its
properties, and, in each case, where failure to qualify or preserve and maintain
its existence, rights and franchises could reasonably be expected to cause a
Material Adverse Change or, in the case of preserving and maintaining the
existence of the Guarantors, where the net worth of such Guarantor would exceed
$50,000,000; provided, however, that (a) nothing contained in this Section 5.3
shall prevent any transaction permitted by Section 6.4, and (b) the Borrower
shall, in all events, preserve and maintain the existence of (i) ABF Freight
System, Inc. and (ii) all other Guarantors if, after giving effect to any
failure to do so, a Default would occur or the Borrower and its Subsidiaries
would not be in pro forma compliance with the covenants set forth in Sections
6.11, 6.12 and 6.13.

         Section 5.4 Payment of Taxes, Etc. The Borrower will pay and discharge,
and cause each of its Subsidiaries to pay and discharge, before the same shall
become delinquent and which the failure to timely pay or discharge could
reasonably be expected to cause a Material Adverse Change, (a) all taxes,
assessments and governmental charges or levies imposed upon it or upon its
income or profits or Property that are material in amount, prior to the date on
which penalties attach thereto and (b) all lawful claims that are material in
amount which, if unpaid, might by law become a Lien upon its Property; provided,
however, that neither the Borrower nor any such Subsidiary shall be required to
pay or discharge any such tax, assessment, charge, levy or claim which is being
contested in good faith and by appropriate proceedings, and with respect to
which reserves in conformity with GAAP have been provided.

         Section 5.5 Visitation Rights. At any reasonable time and from time to
time and so long as any visit or inspection will not unreasonably interfere with
the Borrower's or any of its Subsidiaries operations, upon reasonable notice,
the Borrower will, and will cause its Subsidiaries to, permit the Agent and any
Bank, and any of its agents or representatives thereof, to examine and make
copies of and abstracts from the records and books of account of, and visit and
inspect at its reasonable discretion the properties of, the Borrower and any
such Subsidiary and to discuss the affairs, finances and accounts of the
Borrower and any such Subsidiary with any of their respective officers or
directors.

         Section 5.6 Reporting Requirements. The Borrower will furnish to the
Agent and each Bank:

                  (a) Quarterly Financials. As soon as available and in any
         event not later than 45 days after the end of each of the first three
         fiscal quarters of each fiscal year of the Borrower and not later than
         60 days after the end of the fourth fiscal quarter of each fiscal year
         of the Borrower, the unaudited Consolidated and consolidating balance
         sheets of the Borrower and its Subsidiaries as of the end of such
         quarter and the related unaudited statements of income, shareholders'
         equity and cash flows of the Borrower and its Subsidiaries for the
         period commencing at the end of the previous year and ending with the
         end of such quarter, and the corresponding figures as at the end of,
         and for, the corresponding period in the preceding

                                      -54-
<PAGE>

         fiscal year, all in reasonable detail and duly certified with respect
         to such statements (subject to year-end audit adjustments) by an
         authorized financial officer of the Borrower as having been prepared in
         accordance with GAAP, together with a Compliance Certificate duly
         executed by a Responsible Officer;

                  (b) Annual Financials. As soon as available and in any event
         not later than 90 days after the end of each fiscal year of the
         Borrower, a copy of the annual audit report for such year for the
         Borrower and its Subsidiaries, including therein audited Consolidated
         balance sheets of the Borrower and its Consolidated Subsidiaries as of
         the end of such fiscal year and the related Consolidated statements of
         income, shareholders' equity and cash flows of the Borrower and its
         Consolidated Subsidiaries for such fiscal year, and the corresponding
         figures as at the end of, and for, the preceding fiscal year, in each
         case containing the unqualified certification of Ernst & Young L.L.P.
         or other independent certified public accountants of recognized
         standing acceptable to the Agent and including, if requested by the
         Agent, any management letters delivered by such accountants to the
         Borrower in connection with such audit together with a certificate of
         such accounting firm to the Banks stating that (i) no Default under
         Section 6.11, 6.12, 6.13 or 6.14 has occurred and is continuing and
         (ii) in the course of the regular audit of the business of the Borrower
         and its Subsidiaries, which audit was conducted by such accounting firm
         in accordance with generally accepted auditing standards, such
         accounting firm has obtained no knowledge that a Default has occurred
         and is continuing or, if, in the opinion of such accounting firm, any
         Default has occurred and is continuing, a statement as to the nature
         thereof, together with a Compliance Certificate;

                  (c) Annual Projections. As soon as available and in any event
         not later than 30 days after the end of each fiscal year of the
         Borrower, the Consolidated annual projections of the Borrower and its
         Subsidiaries, including, but not limited to, annual projections of
         condensed (consistent with past practices) Consolidated balance sheets
         of the Borrower and its Subsidiaries and the related condensed
         (consistent with past practices) Consolidated statements of income of
         the Borrower and its Subsidiaries, for such year in reasonable detail
         and duly certified by an authorized financial officer of the Borrower
         as the projections presented or to be presented to the Borrower's Board
         of Directors for their review;

                  (d) Securities Law Filings. Promptly and in any event within
         15 days after the sending or filing thereof, copies of all proxy
         material, reports and other information which the Borrower or any of
         its Subsidiaries sends to or files with the U.S. Securities and
         Exchange Commission or sends to the shareholders of the Borrower or of
         any of its Subsidiaries;

                  (e) Defaults. As soon as possible and in any event within five
         days after the occurrence of each Default known to a Responsible
         Officer of the Borrower or any of its Subsidiaries, a statement of an
         authorized financial officer of the Borrower setting forth the details
         of such Default and the actions which the Borrower has taken and
         proposes to take with respect thereto;

                                      -55-
<PAGE>

                  (f) ERISA Notices. Except as to any matter which could not
         reasonably be expected to cause a Material Adverse Change, as soon as
         possible and in any event (i) within 30 days after the Borrower or any
         of its Subsidiaries knows or has reason to know that any Termination
         Event described in clause (a) of the definition of Termination Event
         with respect to any Plan has occurred and within 10 days after the
         Borrower or any of its Subsidiaries knows or has reason to know that
         any other Termination Event with respect to any Plan has occurred, a
         statement of the chief financial officer of the Borrower describing
         such Termination Event and the action, if any, which the Borrower or
         such Subsidiary proposes to take with respect thereto, (ii) within 10
         days after receipt thereof by the Borrower or any of its Subsidiaries
         from the PBGC, copies of each notice received by the Borrower or any
         such Subsidiary of the PBGC's intention to terminate any Plan or to
         have a trustee appointed to administer any Plan, and (iii) within 10
         days after receipt thereof by the Borrower or any of its Subsidiaries
         from a Multiemployer Plan sponsor, a copy of each notice received by
         the Borrower or any of its Subsidiaries concerning the imposition or
         amount of withdrawal liability pursuant to Section 4202 of ERISA;

                  (g) Environmental Notices. Promptly upon the knowledge of any
         Responsible Officer of the Borrower of receipt thereof by the Borrower
         or any of its Subsidiaries, a copy of any form of notice, summons or
         citation received from the U.S. Environmental Protection Agency, or any
         other Governmental Authority directly engaged in protection of the
         Environment, concerning (i) material violations or alleged violations
         of Environmental Laws, which seeks to impose liability therefor and
         which, based upon information reasonably available to the Borrower at
         the time or after such violation, could reasonably be expected to cause
         a Material Adverse Change, (ii) any action or omission on the part of
         the Borrower or any of its present or former Subsidiaries in connection
         with Hazardous Waste or Hazardous Substances which, based upon
         information reasonably available to the Borrower at the time of such
         receipt, could reasonably be expected to cause a Material Adverse
         Change, (iii) any notice of potential responsibility under CERCLA which
         could reasonably be expected to cause a Material Adverse Change, or
         (iv) the filing of a Lien other than a Permitted Lien upon, against or
         in connection with the Borrower, its present or former Subsidiaries or
         any of their leased or owned Property, wherever located;

                  (h) Other Governmental Notices or Actions. Promptly and in any
         event within five Business Days after receipt thereof by the Borrower
         or any of its Subsidiaries, and the knowledge of such receipt by a
         Responsible Officer of the Borrower or any inside counsel of the
         Borrower, (i) a copy of any notice, summons, citation or proceeding
         seeking to adversely modify in any material respect, revoke or suspend
         any license, permit or other authorization from the U.S. Department of
         Transportation or any other Governmental Authority, which action could
         reasonably be expected to cause a Material Adverse Change, and (ii) a
         copy of any revocation or involuntary termination of any license,
         permit or other authorization from the U.S. Department of
         Transportation or any other Governmental Authority, which revocation or
         termination could reasonably be expected to cause a Material Adverse
         Change;

                                      -56-
<PAGE>

                  (i) Borrowing Base Certificate. On or prior to the 25th day of
         each calendar month, a completed Borrowing Base Certificate setting
         forth the components of the Borrowing Base as of the last day of the
         immediately preceding calendar month;

                  (j) Other Notices. Promptly following any merger or
         dissolution of any Subsidiary of the Borrower which is permitted
         hereunder, notice thereof;

                  (k) Material Litigation. As soon as possible and in any event
         within five days of any Responsible Officer of the Borrower or any of
         its Subsidiaries having knowledge thereof, notice of any litigation,
         claim or any other event which could reasonably be expected to cause a
         Material Adverse Change; and

                  (l) Other Information. Such other information respecting the
         business or Properties, or the condition or operations, financial or
         otherwise, of the Borrower or any of its Subsidiaries as any Bank
         through the Agent may from time to time reasonably request.

         Section 5.7 Maintenance of Property. The Borrower will, and will cause
each of its Subsidiaries to, (a) maintain their material owned, leased or
operated property, equipment, buildings and fixtures, taken as a whole in
substantially the same or better condition and repair as the condition and
repair thereof as of December 31, 2001, normal wear and tear excepted, and (b)
not knowingly or willfully permit the commission of waste or other injury, or
the occurrence of pollution, contamination or any other condition in, on or
about the owned or operated property involving the Environment that could
reasonably be expected to cause a Material Adverse Change.

         Section 5.8 Ownership of ABF. The Borrower will maintain its ownership
of 100% of the common stock of ABF Freight System, Inc., a Delaware corporation
and wholly-owned Subsidiary of the Borrower.

         Section 5.9 Further Assurances. The Borrower shall, and shall cause
each of its Subsidiaries to, execute and deliver pursuant to this Section 5.9
such further documentation and take such further actions as may be reasonably
requested by the Agent to carry out the provisions and purposes of the Credit
Documents. Without limiting the generality of the foregoing, the Borrower shall,
and shall cause each of it Subsidiaries (now or hereafter owned) to, at all
times, comply with Section 2.19.

                                   ARTICLE VI

                               NEGATIVE COVENANTS

         So long as any Advance or any other Obligation or amount under any
Credit Document shall remain unpaid, any Letter of Credit shall remain
outstanding or any Bank shall have any Commitment, the Borrower agrees, unless
the Majority Banks otherwise consent in writing, to comply with each of the
following covenants:

         Section 6.1 Liens, Etc. The Borrower will not create, assume, incur or
suffer to exist, or permit any of its Subsidiaries to create, assume, incur or
suffer to exist, any Lien on or in respect of

                                      -57-
<PAGE>

any of its Property whether now owned or hereafter acquired, or assign any right
to receive income, except that the Borrower and its Subsidiaries may create,
incur, assume or suffer to exist Liens:

                  (a) in favor of the Agent for the benefit of the Banks
         securing the Obligations;

                  (b) for taxes, assessments or governmental charges or levies
         on Property of the Borrower or any Guarantor to the extent not required
         to be paid pursuant to Sections 5.1 and 5.4;

                  (c) imposed by law, such as landlords', carriers',
         warehousemen's and mechanics' liens and other similar Liens arising in
         the ordinary course of business securing obligations which are not
         overdue for a period of more than 30 days or which are being contested
         in good faith and by appropriate proceedings if adequate reserves with
         respect thereto are maintained on the books of the Borrower and its
         Subsidiaries in accordance with GAAP;

                  (d) arising in the ordinary course of business out of pledges
         or deposits (i) under workers' compensation laws, unemployment
         insurance, old age pensions or other social security or retirement
         benefits, or similar legislation, bonds or letters of credit or (ii) to
         secure public or statutory obligations of the Borrower or any of its
         Subsidiaries;

                  (e) existing on Property acquired by the Borrower or any of
         its Subsidiaries in the ordinary course of business, each of which
         Liens (i) attached prior to the Borrower's or such Subsidiary's
         acquisition of such Property, (ii) was not created in contemplation of
         or in connection with such acquisition, and (iii) secures only the
         Indebtedness of the owner of such Property at the time of the
         attachment of such Lien, the aggregate of which Indebtedness at any
         time outstanding secured by all such Liens, when aggregated with all
         other Indebtedness referred to in Section 6.1(k) at any time
         outstanding secured by the Liens referred to therein, shall not exceed
         $40,000,000 at any time outstanding, exclusive of Liens affecting
         Property which secure only Indebtedness which has remained outstanding
         less than 180 days after the date of the acquisition of such Property
         by the Borrower or any of its Subsidiaries;

                  (f) securing Indebtedness existing on the Effective Date and
         listed on the attached Schedule 6.1; provided that the Indebtedness
         secured by such Liens shall not be renewed, refinanced or extended if
         the amount of such Indebtedness so renewed, refinanced or extended is
         greater than the outstanding amount of such Indebtedness on the Closing
         Date;

                  (g) constituting easements, rights-of-way, restrictions and
         other similar encumbrances incurred in the ordinary course of business
         and encumbrances consisting of zoning restrictions, easements,
         licenses, restrictions on the use of Property or minor imperfections in
         title thereto which, in the aggregate, are not material in amount, and
         which do not in any case materially detract from the value of the
         Property subject thereto or materially interfere with the ordinary
         conduct of the business of the Borrower or any of its Subsidiaries;

                  (h) arising from litigation and which are effectively stayed
         from execution and would not otherwise cause a Default to occur;

                                      -58-
<PAGE>

                  (i) on real Property securing surety bonds in an amount not to
         exceed $20,000,000;

                  (j) constituting purchase money Liens securing purchase money
         Indebtedness (including, without limitation, Capital Leases) permitted
         by Section 6.15(d), provided that (i) any Property subject to such
         purchase money Lien is acquired by the Borrower or any of its
         Subsidiaries, (ii) such Lien on such Property attaches concurrently
         with or within 120 days after the acquisition of such Property and
         (iii) such Lien shall attach solely to such Property so acquired and
         the proceeds thereof;

                  (k) permitted by Section 6.15(c) existing on Property acquired
         by the Borrower or any of its Subsidiaries in connection with an
         Acquisition Expenditure permitted pursuant to Section 6.16, each of
         which Liens (i) attached prior to the Borrower's or such Subsidiary's
         acquisition of such Property, (ii) was not created in contemplation of
         or in connection with such Person becoming a Subsidiary, and (iii)
         secures only Indebtedness permitted by Section 6.15(c), the aggregate
         of which Indebtedness at any time outstanding secured by all such
         Liens, when aggregated with all other Indebtedness referred to in
         Section 6.1(e) at any time outstanding secured by the Liens referred to
         therein, shall not exceed $40,000,000 at any time outstanding,
         exclusive of Liens affecting Property which secure only Indebtedness
         which has remained outstanding less than 180 days after the date of the
         acquisition of such Property by the Borrower or any of its
         Subsidiaries; and

                  (l) on certain Receivables of any Intermodal Subsidiary, in
         favor of any railroad company which secures the obligations of such
         Intermodal Subsidiary to such railroad company in connection with rail
         shipments with such railroad company contracted for by such Intermodal
         Subsidiary for the benefit of the obligors of such Receivables which
         Liens secure only Indebtedness described in this Section 6.1(l), the
         aggregate of which Indebtedness at any time outstanding secured by all
         such Liens shall not exceed $3,000,000.

         Section 6.2 Amendment of Material Documents. The Borrower will not, and
will not permit any of its Subsidiaries to, enter into any amendment of the
Subordinated Debt Documents without the approval of the Agent and the Majority
Banks.

         Section 6.3 Agreements Restricting Distributions From Subsidiaries. The
Borrower will not, and will not permit any of its Subsidiaries to, enter into
any agreement (other than a Credit Document) which limits any dividends,
advances or other distributions by any of the Borrower's Subsidiaries to the
Borrower.

         Section 6.4 Merger or Consolidation; Asset Sales. The Borrower will
not, and will not permit any of its Subsidiaries to:

                  (a) merge or consolidate with or into any other Person, unless
         (i) the Borrower (in the case of any transaction involving the
         Borrower) or such Subsidiary (unless such Subsidiary is merged into the
         Borrower or another Subsidiary) is the surviving corporation, and (ii)
         immediately before and after giving effect to any such proposed
         transaction, no Default existed or would exist;

                                      -59-
<PAGE>

                  (b) sell, transfer or otherwise dispose of any of the
         Borrower's or such Subsidiary's Property (unless, in the case of a
         Subsidiary, such assets are sold, leased, transferred or otherwise
         conveyed to another Subsidiary which is a Guarantor) except for (i)
         sales, transfers and dispositions in the ordinary course of business
         for a fair consideration, (ii) sales, transfers or dispositions of
         assets which are obsolete or are no longer in use and which are not
         significant to the continuation of the Borrower's or any of its
         Subsidiaries business; (iii) sales, transfers or dispositions of
         assets, other than sales, transfer or dispositions otherwise permitted
         by (i) or (ii) above, the Net Cash Proceeds of which do not exceed
         $40,000,000 in the aggregate for all such sales, transfers or
         dispositions of assets during any fiscal year; or (iv) sales, transfers
         or other dispositions of (1) the Capital Stock or assets and
         liabilities of Wingfoot pursuant to the Wingfoot Put and Call, (2) the
         G.I. Leased Properties and/or (3) the Capital Stock or assets and
         liabilities of the Subsidiaries identified on Schedule 1.1(c).

         Section 6.5 Restricted Payments. The Borrower will not, and will not
permit any of its Subsidiaries to, make any Restricted Payment, except that

                  (a) a wholly-owned Subsidiary of the Borrower may make a
         Restricted Payment to the Borrower or another wholly-owned Subsidiary
         of the Borrower;

                  (b) provided no Default has occurred and is continuing or
         would result therefrom, the Borrower may pay cash dividends to its
         shareholders in an aggregate amount not to exceed, during any fiscal
         year, the greater of (i) 25% of the Net Income of the Borrower and its
         Consolidated Subsidiaries during the fiscal year immediately preceding
         the date of payment of such dividends or (ii) $15,000,000; and

                  (c) provided no Default has occurred and is continuing or
         would result therefrom and if the Leverage Ratio on a pro forma basis,
         as then most recently determined based upon the Leverage Ratio
         calculated as of the most recent Calculation Day for the applicable
         Calculation Period in accordance with Section 6.13 but giving effect to
         each contemplated stock repurchase, redemption or other reacquisition
         under this Section 6.5(c), is less than 2.50 to 1.00, then the Borrower
         may repurchase, redeem or otherwise reacquire shares of its Capital
         Stock issued and outstanding in an aggregate amount from and after the
         Closing Date not to exceed $50,000,000.

         Section 6.6 Investments, Loans, Advances. The Borrower will not, and
will not permit any of its Subsidiaries to, make any loans, advances or capital
contributions to, or make any investment in, or purchase or commit to purchase
any stock or other securities or evidences of indebtedness of or interests in,
any Person, except the following (provided that before and after giving effect
thereto there shall exist no Default):

                  (a) the purchase of Liquid Investments;

                  (b) trade and customer accounts receivable which are for goods
         furnished or services rendered in the ordinary course of business and
         are payable in accordance with customary trade terms;

                                      -60-
<PAGE>

                  (c) ordinary course of business contributions, loans or
         advances to, or investments in, (i) a direct or indirect Subsidiary of
         the Borrower or (ii) the Borrower;

                  (d) contributions to, or capital investments in a Person
         which, prior to such contribution or investment, is not a Subsidiary
         but which becomes a Subsidiary as a result of such contribution or
         investment, provided that, the Borrower shall have caused such Person
         to have executed and delivered to the Agent an Accession Agreement and
         a certificate covering the same matters described in clause (iii) of
         Section 3.1(a) with respect to such Person, and the Borrower's counsel
         shall deliver an opinion with respect thereto covering the matters
         previously opined on with regard to each Guarantor;

                  (e) loans and advances to officers, directors and employees of
         the Borrower and its Subsidiaries so long as the aggregate principal
         amount thereof outstanding at any time shall not exceed $2,000,000; and

                  (f) other capital investments not otherwise permitted by this
         Section 6.6 in any Person which is not, and will not become, a
         Subsidiary of the Borrower as a result of such capital investment,
         provided that (i) the aggregate amount of such investments outstanding
         at any time shall not exceed $10,000,000; (ii) such Person shall be in
         the same or substantially similar line or lines of business as the
         Borrower and its Subsidiaries or a line of business directly related to
         providing services of the nature the Borrower and its Subsidiaries
         provide on the date this Agreement is executed; and (iii) the
         liabilities of such other Person shall be nonrecourse to the Borrower
         and its Subsidiaries.

         Section 6.7 Affiliate Transactions. Except as expressly permitted
elsewhere in this Agreement, the Borrower will not, and will not permit any of
its Subsidiaries to, make, directly or indirectly: (a) any transfer, sale,
lease, assignment or other disposal of any Property to any Affiliate of the
Borrower or any purchase or acquisition of Property from any such Affiliate; or
(b) any arrangement or other transaction directly or indirectly with or for the
benefit of any such Affiliate (including without limitation, guaranties and
assumptions of obligations of an Affiliate); provided, however, that the
Borrower and its Subsidiaries may (i) enter into any arrangement or other
transaction with any such Affiliate providing for the leasing of property, the
rendering or receipt of services or the purchase or sale of inventory and other
assets in the ordinary course of business if the monetary or business
consideration arising therefrom would be substantially as advantageous to the
Borrower and its Subsidiaries as the monetary or business consideration which it
would obtain in a comparable arm's length transaction with a Person not such an
Affiliate, (ii) guaranty or otherwise assume obligations of an Affiliate in
connection with an Acquisition Expenditure to the extent permitted under Section
6.16 if the monetary or business consideration arising therefrom would be
substantially as advantageous to the Borrower and its Subsidiaries as the
monetary or business consideration which it would obtain in a comparable arm's
length transaction with a Person not such an Affiliate, and (iii) maintain the
arrangements listed on the attached Schedule 6.7.

         Section 6.8 Maintenance of Ownership of Subsidiaries. The Borrower will
not, and will not permit any of its Subsidiaries to, sell or otherwise dispose
of any shares of Capital Stock of any Foreign Subsidiary whose Capital Stock is
pledged to secure the Obligations in accordance with Section 2.19(b) or any
shares of Capital Stock of any Guarantor, in each case except as otherwise

                                      -61-
<PAGE>

permitted by Section 6.4. Upon the sale or disposition of the Capital Stock of
any Guarantor to any Person other than the Borrower or any other Guarantor, the
Agent will, if such sale or disposition is permitted by clause (b) of Section
6.4 and at the Borrower's expense, execute and deliver to such Guarantor such
documents as such Guarantor shall reasonably require and take any other actions
reasonably required to evidence or effect the release of such Guarantor's
Guaranty.

         Section 6.9 No Further Negative Pledges. Except as set forth in the
agreements and documentation governing Indebtedness of the Borrower or any of
its Subsidiaries existing on the Effective Date and described on the attached
Schedule 6.9, or with respect to prohibitions against other encumbrances on
specific Property encumbered to secure payment of particular Indebtedness (which
encumbrances and Indebtedness relate solely to such specific Property, and
improvements and accretions thereto, and are otherwise permitted by this
Agreement), the Borrower will not, and will not permit any of its Subsidiaries
to, enter into or suffer to exist any agreement (other than this Agreement and
the Credit Documents):

                  (a) prohibiting the creation or assumption of any Lien or
         otherwise affecting its power, authority, right or ability to grant or
         permit any Lien upon the Properties of the Borrower or any of its
         Subsidiaries, whether now owned or hereafter acquired; or

                  (b) requiring an obligation to be secured if some other
         obligation is or becomes secured;

provided, however, that the restrictions contained in this Section 6.9 shall not
apply to any agreements governing credit facilities which constitute senior,
unsecured Indebtedness which is permitted by this Agreement to be incurred,
which is publicly placed or sold to institutional investors and which is not
Indebtedness consisting of Subordinated Debt, Capital Leases or purchase money
Indebtedness.

         Section 6.10 Other Businesses. The Borrower will not, and will not
permit any of the Guarantors to, substantially alter the character of their
respective businesses, taken as a whole, from that conducted as of the Closing
Date.

         Section 6.11 Interest Coverage Ratio. The Borrower will not permit its
ratio, calculated as of each Calculation Day, commencing June 30, 2002 and
continuing thereafter through and including the Maturity Date, for the
Calculation Period then ended, of (a) Adjusted EBITDA for such Calculation
Period to (b) the positive remainder of (i) Consolidated Interest Expense for
such Calculation Period minus (ii) interest income for such Calculation Period,
to be less than 4.5 to 1.0.

         Section 6.12 Net Worth. The Borrower will not permit its Consolidated
Net Worth, as of each Calculation Day, commencing June 30, 2002 and continuing
thereafter through and including the Maturity Date, to be less than an amount
equal to the sum of (a) $272,000,000, plus (b) 50% of the Cumulative Net Income
(as defined below), plus (c) 50% of the net cash proceeds of any issuance of
equity by the Borrower after the Closing Date. For purposes of determining the
Borrower's compliance with this Section 6.12, an amount equal to the lesser of
(i) the aggregate amount of cash then previously paid during the period from the
Closing Date to the earlier to occur of such

                                      -62-
<PAGE>

Calculation Day or the date that is 18 months after the Closing Date by the
Borrower to its shareholders for repurchases or redemptions of its Capital
Stock, which payments have reduced the Borrower's Consolidated Net Worth by the
amount of such payments, permitted in accordance with Section 6.5 or (ii)
$25,000,000, shall be added as an adjustment to the Borrower's Consolidated Net
Worth.

         For purposes of this Section 6.12, the following terms shall have the
following meanings:

                  "Cumulative Net Income" means the cumulative Consolidated Net
         Income of the Borrower and its Subsidiaries for the period from April
         1, 2002 through the applicable Calculation Day (the "subject period"),
         exclusive of (i) any Net Losses (as defined below) during any completed
         fiscal quarter during such subject period and (ii) positive
         Consolidated Net Income of the Borrower and its Subsidiaries during any
         completed fiscal quarter during the Recovery Period not to exceed, in
         the aggregate, the aggregate amount of the Net Losses excluded pursuant
         to clause (i) preceding.

                  "Net Losses" means, with respect to any fiscal quarter during
         the subject period, the amount by which Consolidated Net Income of the
         Borrower and its Subsidiaries during such fiscal quarter is negative.

                  "Recovery Period" means, with respect to each fiscal quarter
         during the subject period in which there were Net Losses, the period of
         up to four consecutive fiscal quarters which occur during the subject
         period and which immediately succeed the fiscal quarter during which
         such Net Losses occurred. In the case that there have been two or more
         different fiscal quarters in which there have been Net Losses during
         the subject period (resulting in two or more different Recovery
         Periods) and positive Consolidated Net Income has occurred within each
         Recovery Period, the positive Consolidated Net Income shall be first
         applied to recovering the Net Losses that occurred first.

         Section 6.13 Maximum Leverage Ratio. The Borrower will not permit its
Leverage Ratio, calculated as of each Calculation Day, commencing June 30, 2002
and continuing thereafter through and including the Maturity Date, for the
Calculation Period then ended, to be greater than 2.75 to 1.00.

         Section 6.14 Capital Expenditures. The Borrower may make or permit any
of its Subsidiaries to make or commit to make any Capital Expenditure; provided,
however, if the Borrower's Senior Debt is not rated either BBB- or higher by S&P
or Baa3 or higher by Moody's (or, if either such rating agency shall cease to
rate the corporate debt obligations of the Borrower and the rating of the rating
agency that continues to rate the corporate debt obligations of the Borrower
falls below the applicable rating specified in this sentence), then Capital
Expenditures of the Borrower and its Subsidiaries may not exceed $100,000,000,
net of any Net Cash Proceeds received from the sale of any capital asset during
such period if such sale is permitted pursuant to Section 6.4, in an aggregate
amount during any fiscal year during which such circumstance has occurred. For
purposes of calculating "Capital Expenditures" pursuant to this Section 6.14,
all Acquisition Expenditures permitted pursuant to Section 6.16 shall be
excluded.

                                      -63-
<PAGE>

         Section 6.15 Indebtedness. The Borrower will not incur or permit to
exist, or permit any of its Subsidiaries to incur or permit to exist, any
Indebtedness other than the Obligations and the following:

                  (a) Indebtedness of the Borrower to any Subsidiary and of any
         Subsidiary to the Borrower or another Subsidiary;

                  (b) Indebtedness outstanding on the Effective Date and listed
         on Schedule 6.15;

                  (c) Indebtedness assumed by the Borrower or a Subsidiary of
         the Borrower of an entity which becomes a Subsidiary after the Closing
         Date pursuant to an acquisition of an entity not prohibited by Section
         6.16, provided that (i) such Indebtedness existed prior to such
         acquisition and was not created in anticipation thereof and (ii)
         immediately after giving effect to such acquisition, no Default shall
         have occurred and be continuing; provided, however, that such
         Indebtedness referred to in this clause (c) above may not be secured by
         any Property of the Borrower or any of its Subsidiaries other than the
         Property acquired in connection with such acquisition in which a Lien
         was granted prior to and not in anticipation of such acquisition and,
         in the event that such Indebtedness is so secured, all Liens securing
         such Indebtedness must be released within 180 days after the
         consummation of such acquisition other than Liens securing such
         Indebtedness in an aggregate amount not to exceed $40,000,000 (which
         may continue in existence after such 180 day period);

                  (d) Subordinated Debt, other unsecured senior Indebtedness,
         Capital Leases or purchase money Indebtedness, in each case incurred
         after the Effective Date (other than Indebtedness permitted pursuant to
         Sections 6.15(a), 6.15(b) and/or 6.15(c)) (such Indebtedness incurred
         after the Effective Date pursuant to this Section 6.15(d) to be
         referred to collectively herein as "Additional Permitted
         Indebtedness"); provided, however, that:

                           (i) no Additional Permitted Indebtedness may be
                  incurred at any time if, after giving effect to such
                  incurrence, the aggregate outstanding principal amount of all
                  Additional Permitted Indebtedness (including, without
                  limitation, Additional Permitted Indebtedness previously
                  incurred) would then exceed the Adjusted EBITDA of the
                  Borrower and its Consolidated Subsidiaries as of the then most
                  recent Calculation Day based upon the Calculation Period then
                  ended;

                           (ii) no Additional Permitted Indebtedness may be
                  incurred at any time if a Default has then occurred and is
                  continuing or would result from such incurrence;

                           (iii) none of the financial covenants or similar
                  covenants contained in the agreements, documents and
                  instruments evidencing or governing such Additional Permitted
                  Indebtedness (the "Additional Permitted Indebtedness
                  Documents") may be more restrictive than those contained in
                  this Agreement or any other Credit Document;

                           (iv) no Additional Permitted Indebtedness Document
                  may be executed by the Borrower or any of its Subsidiaries,
                  and no Additional Permitted Indebtedness

                                      -64-
<PAGE>

                  may be incurred thereunder, if (A) the execution, delivery and
                  performance of such Additional Permitted Indebtedness Document
                  conflicts with, or constitutes a violation of, this Agreement
                  or any other Credit Document or (B) the execution, delivery
                  and performance of this Agreement and the other Credit
                  Documents by the Borrower and its Subsidiaries conflicts with,
                  or constitutes a violation of, such Additional Permitted
                  Indebtedness Document;

                           (v) except for Capital Leases, the due date for the
                  payment or prepayment of all principal of the Additional
                  Permitted Indebtedness shall be at least 60 days after the
                  Maturity Date (exclusive of the effect of any acceleration of
                  the maturity thereof upon the occurrence of an event of
                  default thereunder);

                           (vi) all Additional Permitted Indebtedness must be
                  pari passu or subordinate in right of payment to the
                  Obligations; and

                           (vii) the aggregate principal amount of Additional
                  Permitted Indebtedness that constitutes purchase money
                  Indebtedness or Capital Leases shall not exceed $30,000,000 at
                  any time outstanding.

         Notwithstanding any of the foregoing provisions, if the Borrower's
Senior Debt is not rated either BBB- or higher by S&P or Baa3 or higher by
Moody's (or, if either such rating agency shall cease to rate the corporate debt
obligations of the Borrower and the rating of the rating agency that continues
to rate the corporate debt obligations of the Borrower falls below the
applicable rating specified in this sentence), then the Borrower shall not, and
shall not permit any of its Subsidiaries to, incur any Additional Permitted
Indebtedness without the prior written consent of the Majority Banks; and

                  (e) extensions, renewals and refinancing of any of the
         Indebtedness specified in Sections 6.15(a), 6.15(b), 6.15(c) and/or
         6.15(d) so long as the principal amount of such Indebtedness is not
         thereby increased.

         Section 6.16 Acquisition Expenditures. The Borrower shall not, and
shall not permit any of its Subsidiaries to, make any Acquisition Expenditure
unless each of the following requirements is satisfied:

                  (a) such Acquisition Expenditure is made in substantially the
         same or complementary lines of business of the Borrower and does not
         violate any other provision of this Agreement;

                  (b) at the time of such Acquisition Expenditure, no Default
         has occurred and is continuing or would occur upon the consummation of
         such acquisition and the Agent shall have received a Compliance
         Certificate demonstrating pro forma compliance with Sections 6.11,
         6.12, 6.13, 6.14 and 6.15 based on combined pro forma operating results
         of the Person to be acquired and the Borrower and its Subsidiaries,
         provided, however, the Agent shall also have received, in the case of a
         particular Acquisition Expenditure, or series of related Acquisition
         Expenditures aggregating, in excess of $50,000,000, audited financial

                                      -65-
<PAGE>

         statements, including, but not limited to, the balance sheet and the
         related statements of income, of the Person to be acquired that have
         been prepared as of a date or for a period ended (as applicable) within
         the 12 month period prior to such Acquisition Expenditure or series of
         related Acquisition Expenditures or, to the extent that such audited
         financial statements are not otherwise available, the Borrower shall
         either cause such audited financial statements to be prepared or cause
         the EBITDA of the Person to be acquired to be calculated and confirmed
         by independent certified public accountants and deliver such
         calculation and confirmation to the Agent; and

                  (c) at the time of such Acquisition Expenditure, the
         Borrower's Senior Debt is rated BBB- or higher by S&P or Baa3 or higher
         by Moody's. Notwithstanding this clause (c) preceding, if the
         Borrower's Senior Debt is not rated either BBB- or higher by S&P or
         Baa3 or higher by Moody's (or, if either such rating agency shall cease
         to rate the corporate debt obligations of the Borrower and the rating
         of the rating agency that continues to rate the corporate debt
         obligations of the Borrower falls below the applicable rating specified
         in this sentence), then the Borrower may make an Acquisition
         Expenditure if (and only if) such Acquisition Expenditure is identified
         on Schedule 6.16 and is not in excess of $50,000,000 in the aggregate.

                                  ARTICLE VII

                                    REMEDIES

         Section 7.1 Events of Default. The occurrence of any of the following
events shall constitute an "Event of Default" under this Agreement and the other
Credit Documents:

                  (a) Payment. The Borrower shall fail to pay any principal of
         any Advance or any Reimbursement Obligation when the same becomes due
         and payable as set forth in this Agreement, or the Borrower shall fail
         to pay any interest on any Advance or any fee or other amount or
         Obligation payable hereunder or under any other Credit Document within
         five days after due and payable as set forth in this Agreement or any
         other Credit Document;

                  (b) Representation and Warranties. Any representation or
         warranty made or deemed to be made (i) by the Borrower in this
         Agreement or in any other Credit Document, (ii) by the Borrower (or any
         of its officers) in connection with this Agreement or any other Credit
         Document, or (iii) by any Subsidiary in any Credit Document shall prove
         to have been incorrect in any material respect when made or deemed to
         be made;

                  (c) Covenant Breaches. (i) The Borrower shall fail to perform
         or observe any covenant contained in Section 5.3, 5.4 or 5.6(e),
         5.6(f), 5.6(g), 5.6(h) or 5.6(i) or Article VI of this Agreement or
         (ii) the Borrower, any Subsidiary of the Borrower or any Guarantor
         shall fail to perform or observe any term or covenant set forth in any
         Credit Document which is not covered by clause (i) preceding or any
         other provision of this Section 7.1, if such failure shall remain
         unremedied for 30 days after the earlier of the date written notice of
         such default shall have been given to the Borrower or such Guarantor by
         the Agent or any Bank or the date a Responsible Officer of the Borrower
         has actual knowledge of such default;

                                      -66-
<PAGE>

                  (d) Cross-Defaults. (i) The Borrower or any its Subsidiaries
         shall fail to pay any principal of or premium or interest on its
         Indebtedness which is outstanding in a principal amount of at least
         $15,000,000 individually or when aggregated with all such Indebtedness
         of the Borrower or its Subsidiaries so in default (but excluding
         Indebtedness evidenced by the Notes) when the same becomes due and
         payable (whether by scheduled maturity, required prepayment,
         acceleration, demand or otherwise), and such failure shall continue
         after the applicable grace period, if any, specified in the agreement,
         document or instrument relating to such Indebtedness; (ii) any other
         event shall occur or condition shall exist under any agreement,
         document or instrument relating to Indebtedness which is outstanding in
         a principal amount of at least $15,000,000 individually or when
         aggregated with all such Indebtedness of the Borrower or its
         Subsidiaries so in default, and shall continue after the applicable
         grace period, if any, specified in such agreement, document or
         instrument, if the effect of such event or condition is to accelerate,
         or to permit the acceleration of, the maturity of such Indebtedness; or
         (iii) any such Indebtedness shall be declared to be due and payable, or
         required to be prepaid (other than by a regularly scheduled required
         prepayment), prior to the stated maturity thereof;

                  (e) Insolvency. The Borrower or any of its Subsidiaries shall
         generally not pay its debts as such debts become due, or shall admit in
         writing its inability to pay its debts generally, or shall make a
         general assignment for the benefit of creditors; or any proceeding
         shall be instituted by or against the Borrower or any of its
         Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or
         seeking liquidation, winding up, reorganization, arrangement,
         adjustment, protection, relief or composition of it or its debts under
         any law relating to bankruptcy, insolvency or reorganization or relief
         of debtors, or seeking the entry of an order for relief or the
         appointment of a receiver, trustee or other similar official for it or
         for any substantial part of its Property and, in the case of any such
         proceeding instituted against the Borrower or any such Subsidiary,
         either such proceeding shall remain undismissed for a period of 30 days
         or any of the actions sought in such proceeding shall occur; or the
         Borrower or any of its Subsidiaries shall take any corporate action to
         authorize any of the actions set forth above in this Section 7.1(e);

                  (f) Judgments. Any judgment or order for the payment of money
         in excess of $15,000,000 (reduced for purposes of this Section 7.1(f)
         by the amount in respect of such judgment or order that a reputable
         insurer has acknowledged is payable under any valid and enforceable
         insurance policy) shall be rendered against the Borrower or any of its
         Subsidiaries which, within 30 days from the date such judgment is
         entered, shall not have been discharged or execution thereof stayed
         pending appeal;

                  (g) ERISA. (i) Any Person shall engage in any "prohibited
         transaction" (as defined in Section 406 of ERISA or Section 4975 of the
         Code) involving any Plan, (ii) any "accumulated funding deficiency" (as
         defined in Section 302 of ERISA), whether or not waived, shall exist
         with respect to any Plan, (iii) a Reportable Event shall occur with
         respect to, or proceedings shall commence to have a trustee appointed,
         or a trustee shall be appointed, to administer or to terminate, any
         Plan, which Reportable Event or commencement of proceedings or
         appointment of a trustee is likely to result in the termination of such
         Plan for purposes of Title IV of ERISA, unless such Reportable Event,

                                      -67-
<PAGE>

         proceedings or appointment are being contested by the Borrower in good
         faith and by appropriate proceedings, (iv) any Plan shall terminate for
         purposes of Title IV of ERISA, (v) the Borrower or any member of the
         Controlled Group shall incur any liability in connection with a
         withdrawal from a Multiemployer Plan or the insolvency (within the
         meaning of Section 4245 of ERISA) or reorganization (within the meaning
         of Section 4241 of ERISA) of a Multiemployer Plan, unless such
         liability is being contested by the Borrower in good faith and by
         appropriate proceedings, or (vi) any other event or condition shall
         occur or exist, with respect to a Plan; and in each case in clauses (i)
         through (vi) above, such event or condition, together with all other
         such events or conditions, if any, could subject the Borrower or any
         Guarantor to any tax, penalty or other liabilities in the aggregate
         exceeding $15,000,000; or

                  (h) Guaranty. Any provision of the Guaranty requiring the
         payment of the Guaranteed Obligations (as defined in the Guaranty)
         shall for any reason cease to be valid and binding on any Guarantor or
         any Guarantor shall so state in writing.

         Section 7.2 Optional Acceleration of Maturity. If any Event of Default
(other than an Event of Default pursuant to Section 7.1(e)) shall have occurred
and be continuing, then, and in any such event,

                  (a) the Agent (i) shall at the request, or may with the
         consent, of the Majority Banks, by notice to the Borrower, declare the
         obligation of each Bank to make Advances and the obligation of each
         Issuing Bank to issue, increase or extend Letters of Credit to be
         terminated, whereupon the same shall forthwith terminate, and (ii)
         shall at the request, or may with the consent, of the Majority Banks,
         by notice to the Borrower, declare the Advances, all interest thereon,
         the Letter of Credit Obligations and all other amounts and Obligations
         payable under this Agreement or any other Credit Document to be
         forthwith due and payable, whereupon the Advances, all such interest,
         all such Letter of Credit Obligations and all such amounts and
         Obligations shall become and be forthwith due and payable in full,
         without presentment, demand, protest or any notice of any kind
         (including, without limitation, any notice of intent to accelerate or
         notice of acceleration), all of which are hereby expressly waived by
         the Borrower, and

                  (b) the Borrower shall, on demand of the Agent at the request
         or with the consent of the Majority Banks, deposit with the Agent into
         the Cash Collateral Account an amount of cash equal to the Letter of
         Credit Exposure as security for the Obligations to the extent the
         Letter of Credit Obligations are not otherwise paid at such time.

         Section 7.3 Automatic Acceleration of Maturity. If any Event of Default
pursuant to Section 7.1(e) shall occur:

                  (a) the obligation of each Bank to make Advances and the
         obligation of each Issuing Bank to issue, increase or extend Letters of
         Credit shall immediately and automatically be terminated and the
         Advances, all interest thereon, all Letter of Credit Obligations and
         all other amounts and Obligations payable under this Agreement or any
         other Credit Document shall immediately and automatically become and be
         due and payable in

                                      -68-
<PAGE>

         full, without presentment, demand, protest or any notice of any kind
         (including, without limitation, any notice of intent to accelerate or
         notice of acceleration), all of which are hereby expressly waived by
         the Borrower; and

                  (b) to the extent permitted by law or court order, the
         Borrower shall deposit with the Agent into the Cash Collateral Account
         an amount of cash equal to the outstanding Letter of Credit Exposure as
         security for the Obligations to the extent the Letter of Credit
         Obligations are not otherwise paid at such time.

         Section 7.4 Cash Collateral Account.

                   (a) Pledge. The Borrower hereby pledges, and grants to the
         Agent for the benefit of the Banks a Lien and security interest in, all
         funds held in the Cash Collateral Account from time to time and all
         proceeds thereof, as security for the payment of the Obligations,
         including without limitation all Letter of Credit Obligations owing to
         any Issuing Bank or any other Bank due and to become due from the
         Borrower to any Issuing Bank or any other Bank under this Agreement in
         connection with the Letters of Credit.

                  (b) Application against Letter of Credit Obligations. The
         Agent may, at any time or from time to time, apply funds then held in
         the Cash Collateral Account to the payment of any Letter of Credit
         Obligations owing to any Issuing Bank, in such order as the Agent may
         elect, as shall have become or shall become due and payable by the
         Borrower to any Issuing Bank under this Agreement in connection with
         the Letters of Credit.

                  (c) Duty of Care. The Agent shall exercise reasonable care in
         the custody and preservation of any funds held in the Cash Collateral
         Account and shall be deemed to have exercised such care if such funds
         are accorded treatment substantially equivalent to that which the Agent
         accords its own property, it being understood that the Agent shall not
         have any responsibility for taking any necessary steps to preserve
         rights against any parties with respect to any such funds.

         Section 7.5 Non-exclusivity of Remedies. No remedy conferred upon the
Agent or the Banks is intended to be exclusive of any other remedy, and each
remedy shall be cumulative of all other remedies existing by contract, at law,
in equity, by statute or otherwise.

         Section 7.6 Right of Set-off. Upon (a) the occurrence and during the
continuance of any Event of Default and (b) the making of the request or the
granting of the consent, if any, specified by Section 7.2 to authorize the Agent
to declare the Advances or any other amount or Obligation payable hereunder or
under the other Credit Documents due and payable pursuant to the provisions of
Section 7.2 or the automatic acceleration of the Advances or any such other
amounts or Obligations pursuant to Section 7.3, each Bank 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 indebtedness at any time owing
by such Bank to or for the credit or the account of the Borrower against any and
all of the indebtedness, liabilities or obligations of the Borrower now or
hereafter existing under this Agreement, the Note held by such Bank and the
other Credit Documents, irrespective of whether or

                                      -69-
<PAGE>

not such Bank shall have made any demand under this Agreement, such Note or such
other Credit Documents, and although such obligations may be unmatured. Each
Bank agrees to promptly notify the Borrower after any such set-off and
application made by such Bank, provided that the failure to give such notice
shall not affect the validity of such set-off and application. The rights of
each Bank under this Section 7.6 are in addition to any other rights and
remedies (including, without limitation, other rights of set-off) which such
Bank may have.

                                  ARTICLE VIII

                       AGENCY AND ISSUING BANK PROVISIONS

         Section 8.1 Authorization and Action. Each Bank hereby appoints and
authorizes the Agent to take such action as administrative agent under this
Agreement and the other Credit Documents on behalf of such Bank and to exercise
such powers under this Agreement and the other Credit Documents as are delegated
to the Agent by the terms hereof and of the other Credit Documents, together
with such powers as are reasonably incidental thereto. As to any matters not
expressly provided for by this Agreement or any other Credit Document
(including, without limitation, enforcement or collection of the Notes), the
Agent shall not be required to exercise any discretion or take any action, but
shall be required to act or to refrain from acting (and shall be fully protected
in so acting or refraining from acting) upon the instructions of the Majority
Banks, and such instructions shall be binding upon all Banks and all holders of
Notes; provided, however, that the Agent shall not be required to take any
action which exposes the Agent to personal liability or which is contrary to
this Agreement, any other Credit Document or applicable law.

         Section 8.2 Agent's Reliance, Etc. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken (including the Agent's own negligence) by it or them under
or in connection with this Agreement or the other Credit Documents, except for
its or their own gross negligence or willful misconduct. Without limitation of
the generality of the foregoing, the Agent: (a) may treat the payee of any Note
as the holder thereof until the Agent receives written notice of the assignment
or transfer thereof signed by such payee and in form satisfactory to the Agent;
(b) may consult with legal counsel (including counsel for the Borrower),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (c) makes no
warranty or representation to any Bank and shall not be responsible to any Bank
for any statements, warranties or representations made in or in connection with
this Agreement or the other Credit Documents; (d) shall not have any duty to
ascertain or to inquire as to the performance or observance of any of the terms,
covenants or conditions of this Agreement or any other Credit Document on the
part of the Borrower or its Subsidiaries or to inspect the property (including
the books and records) of the Borrower or its Subsidiaries; (e) shall not be
responsible to any Bank for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any other
Credit Document; and (f) shall incur no liability under or in respect of this
Agreement or any other Credit Document by acting upon any notice, consent,
certificate or other instrument or writing (which may be by telecopier,
telegram, cable or telex) believed by it to be genuine and signed or sent by the
proper party or parties.

                                      -70-
<PAGE>

         Section 8.3 The Agent and Its Affiliates. With respect to its
Commitment, the Advances made by it and the Notes issued to it, the Agent shall
have the same rights and powers under this Agreement as any other Bank and may
exercise the same as though it were not the Agent. The term "Bank" or "Banks"
shall, unless otherwise expressly indicated, include the Agent in its individual
capacity. The Agent and its Affiliates may accept deposits from, lend money to,
act as trustee under indentures of, and generally engage in any kind of business
with, the Borrower or any of its Subsidiaries, and any Person who may do
business with or own securities of the Borrower or any such Subsidiary, all as
if the Agent were not an agent hereunder and without any duty to account
therefor to the Banks.

         Section 8.4 Bank Credit Decision. Each Bank acknowledges that it has,
independently and without reliance upon the Agent or any other Bank and based on
the financial statements referred to in Section 4.5 and such other documents and
information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Bank also acknowledges that it will,
independently and without reliance upon the Agent or any other Bank and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
this Agreement.

         Section 8.5 Indemnification. The Banks severally agree to indemnify the
Agent and each Issuing Bank (to the extent not reimbursed by the Borrower),
according to their respective Pro Rata Shares from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever which may be
imposed on, incurred by or asserted against the Agent or such Issuing Bank in
any way relating to or arising out of this Agreement or any other Credit
Document or any action taken or omitted by the Agent or such Issuing Bank under
this Agreement or any other Credit Document (including the Agent's or such
Issuing Bank's own negligence), provided that no Bank shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from the Agent's
and such Issuing Bank's gross negligence or willful misconduct. Without
limitation of the foregoing, each Bank agrees to reimburse the Agent promptly
upon demand for its ratable share of any out-of-pocket expenses (including
counsel fees) incurred by the Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement or any
other Credit Document, to the extent that the Agent is not reimbursed for such
expenses by the Borrower.

         Section 8.6 Successor Agent and Issuing Banks. The Agent or any Issuing
Bank may resign at any time by giving written notice thereof to the Banks and
the Borrower and may be removed at any time with or without cause by the
Majority Banks upon receipt of written notice from the Majority Banks to such
effect. Upon receipt of notice of any such resignation or removal, the Majority
Banks shall have the right to appoint a successor Agent or Issuing Bank with, if
an Event of Default has not occurred and is not continuing, the consent of the
Borrower, which consent shall not be unreasonably withheld. If no successor
Agent or Issuing Bank shall have been so appointed, and shall have accepted such
appointment, within 30 days after the retiring Agent's or Issuing Bank's giving
of notice of resignation or the Majority Banks' removal of the retiring Agent or
Issuing Bank, then the retiring Agent or Issuing Bank may, on behalf of the
Banks and the Borrower, appoint a successor Agent or Issuing Bank, which shall
be a commercial bank meeting the financial

                                      -71-
<PAGE>

requirements of an Eligible Assignee and, in the case of an Issuing Bank, a
Bank. Upon the acceptance of any appointment as Agent or Issuing Bank by a
successor Agent or Issuing Bank, such successor Agent or Issuing Bank shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Agent or Issuing Bank, and the retiring Agent or
Issuing Bank shall be discharged from its duties and obligations under this
Agreement and the other Credit Documents, except that the retiring Issuing Bank
shall remain an Issuing Bank with respect to any Letters of Credit issued by
such Issuing Bank and outstanding on the effective date of its resignation or
removal and the provisions affecting such Issuing Bank with respect to such
Letters of Credit shall inure to the benefit of the retiring Issuing Bank until
the termination of all such Letters of Credit. After any retiring Agent's or
Issuing Bank's resignation or removal hereunder as Agent or Issuing Bank, the
provisions of this Article VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent or Issuing Bank under this
Agreement and the other Credit Documents.

         Section 8.7 Co-Syndication Agents. The Co-Syndication Agents shall not
have any duties, obligations or liabilities in their capacities as
Co-Syndication Agents.

         Section 8.8 Documentation Agent. The Documentation Agent shall not have
any duties, obligations or liabilities in its capacities as Documentation Agent.

                                   ARTICLE IX

                                  MISCELLANEOUS

         Section 9.1 Amendments, Etc. No amendment or waiver of any provision of
this Agreement, the Notes or any other Credit Document, nor consent to any
departure by the Borrower or any Guarantor therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Majority Banks
(or, if specifically provided for in any Credit Document, the Agent with the
consent of the Majority Banks) and the Borrower, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no amendment shall increase the
Commitment of any Bank without the written consent of such Bank, and no
amendment, waiver or consent shall, unless in writing and signed by all the
Banks, do any of the following: (a) increase the aggregate Commitments of the
Banks, except as permitted by Section 2.17, (b) reduce the principal of, or
interest on, the Advances or any fees or other amounts or Obligations payable
hereunder or under any other Credit Document, (c) postpone any date fixed for
any payment of principal of, or interest on, the Advances or any fees or other
amounts or Obligations payable hereunder or under any other Credit Document, (d)
amend Section 2.16 or this Section 9.1, (e) release any Guarantor from its
obligations under the Guaranty, other than the release of any Guarantor's
obligations under the Guaranty in accordance with Section 6.8, or (f) amend the
definition of "Majority Banks"; and provided, further, that (i) no amendment,
waiver or consent shall, unless in writing and signed by the Agent or any
Issuing Bank in addition to the Banks required above to take such action, affect
the rights or duties of the Agent or such Issuing Bank, as the case may be,
under this Agreement or any other Credit Document, and (ii) no waiver or consent
to departure from any of the conditions specified in Section 3.1 or 3.2 shall be
effective unless in writing and signed by the Majority Banks and the Agent.

                                      -72-
<PAGE>

         Section 9.2 Notices, Etc. All notices and other communications shall be
in writing (including telecopy or telex) and mailed, telecopied, telexed, hand
delivered or delivered by a nationally recognized overnight courier, if to the
Borrower, at its address at 3801 Old Greenwood Road, Fort Smith, Arkansas 72903,
Attention: Chief Financial Officer, with a copy to the General Counsel
(telecopy: (501) 785-6124; telephone: (501) 785-6000); if to any Bank at its
address for notices specified opposite its name on Schedule 9.2; if to the Agent
or to Wells Fargo in its capacity as Agent or as an Issuing Bank, at its address
at 1445 Ross Avenue, 3rd Floor, Dallas, Texas 75201, Attention: Preston L.
Massey, Assistant Vice President (telecopy: (214) 969-0368; telephone: (214)
740-1515); and if a Notice of Borrowing or a Notice of Conversion or
Continuation to the Agent, at the address for notices for the Agent specified
opposite its name on Schedule 9.2 or, as to each party, at such other address or
teletransmission number as shall be designated by such party in a written notice
to the other parties. All such notices and communications shall, when mailed,
telecopied, telexed or hand delivered or delivered by overnight courier, be
effective three days after deposited in the mails, when telecopy transmission is
completed, when confirmed by telex answer-back or when delivered, respectively,
except that notices and communications to the Agent pursuant to Article II or
VIII shall not be effective until received by the Agent.

         Section 9.3 No Waiver; Remedies. No failure on the part of any Bank,
the Agent or any Issuing Bank to exercise, and no delay in exercising, any right
or remedy hereunder or under any Note shall operate as a waiver thereof; nor
shall any single or partial exercise of any such right or remedy preclude any
other or further exercise thereof or the exercise of any other right or remedy.
The rights and remedies provided in this Agreement and the other Credit
Documents are cumulative and not exclusive of any rights or remedies provided by
law.

         Section 9.4 Costs and Expenses. The Borrower agrees to pay on demand
all reasonable out-of-pocket costs and expenses of the Agent in connection with
the preparation, execution, delivery, administration, modification, amendment
and enforcement of this Agreement, the Notes and the other Credit Documents,
including, without limitation, (a) the fees set forth in the Agent's Fee Letter,
and (b) all reasonable out-of-pocket costs and expenses, if any, of the Agent,
each Issuing Bank and each Bank (including, without limitation, reasonable
counsel fees and expenses of the Agent, such Issuing Bank and each Bank) in
connection with the enforcement (whether through negotiations, legal proceedings
or otherwise) of this Agreement and the other Credit Documents after a Default
or an Event of Default has occurred and is continuing, and (c) to the extent not
included in the foregoing, the costs of any Uniform Commercial Code financing
statement or continuation statement, and any related Uniform Commercial Code
search conducted subsequent to such recordation.

         Section 9.5 Binding Effect. This Agreement shall become effective when
it shall have been executed by the Borrower and the Agent, and when the Agent
shall have, as to each Bank, received a counterpart hereof executed by such
Bank, except that the Borrower shall not have the right to assign its rights or
delegate its duties under this Agreement or any interest in this Agreement
without the prior written consent of each Bank.

                                      -73-
<PAGE>

         Section 9.6 Bank Assignments and Participations.

                  (a) Assignments. Any Bank may assign to one or more banks or
         other entities all or any portion of its rights and obligations under
         this Agreement and the other Credit Documents (including, without
         limitation, all or a portion of its Commitment, the Advances owing to
         it, the Notes held by it and the participation interest in the Letter
         of Credit Obligations held by it); provided, however, that (i) each
         such assignment shall be of a constant, and not a varying, percentage
         of all of such Bank's rights and obligations under this Agreement and
         the other Credit Documents and shall involve a ratable assignment of
         such Bank's Commitment and such Bank's Revolving Advances, (ii) the
         amount of the resulting Commitment and Revolving Advances of the
         assigning Bank (unless it is assigning all its Commitment) and the
         assignee Bank pursuant to each such assignment (determined as of the
         date of the Assignment and Acceptance with respect to such assignment)
         shall in no event be less than $5,000,000 and shall be an integral
         multiple of $1,000,000, (iii) each such assignment shall be to an
         Eligible Assignee, (iv) the parties to each such assignment shall
         execute and deliver to the Agent, for its acceptance and recording in
         the Register, an Assignment and Acceptance, together with the Revolving
         Note subject to such assignment, and (v) each Eligible Assignee (other
         than the Eligible Assignee of the Agent or an Eligible Assignee which
         is an Affiliate of the assigning Bank) shall pay to the Agent a $3,000
         administrative fee. Upon such execution, delivery, acceptance and
         recording, from and after the effective date specified in each
         Assignment and Acceptance, which effective date shall be at least three
         Business Days after the execution thereof unless otherwise agreed by
         the parties to such Assignment and Acceptance and the Agent, (A) the
         assignee thereunder shall be a party hereto for all purposes and, to
         the extent that rights and obligations hereunder have been assigned to
         it pursuant to such Assignment and Acceptance, have the rights and
         obligations of a Bank hereunder and (B) such Bank thereunder shall, to
         the extent that rights and obligations hereunder have been assigned by
         it pursuant to such Assignment and Acceptance, relinquish its rights
         and be released from its obligations under this Agreement (and, in the
         case of an Assignment and Acceptance covering all or the remaining
         portion of such Bank's rights and obligations under this Agreement,
         such Bank shall cease to be a party hereto). Notwithstanding anything
         herein to the contrary, any Bank may assign, as collateral or
         otherwise, any of its rights under the Credit Documents to any Federal
         Reserve Bank.

                  (b) Term of Assignments. By executing and delivering an
         Assignment and Acceptance, the Bank thereunder and the assignee
         thereunder confirm to and agree with each other and the other parties
         hereto as follows: (i) other than as provided in such Assignment and
         Acceptance, such Bank makes no representation or warranty and assumes
         no responsibility with respect to any statements, warranties or
         representations made in or in connection with this Agreement or any
         other Credit Document or the execution, legality, validity,
         enforceability, genuineness, sufficiency or value of this Agreement or
         any other Credit Document or any other instrument or document furnished
         pursuant hereto; (ii) such Bank makes no representation or warranty and
         assumes no responsibility with respect to the financial condition of
         the Borrower or its Subsidiaries or the Guarantors or the performance
         or observance by the Borrower or the Guarantors of any of their
         obligations under this Agreement or any other Credit Document or any
         other instrument or document furnished pursuant hereto; (iii) such
         assignee confirms that it has received a copy of this Agreement,

                                      -74-
<PAGE>

         together with copies of the financial statements referred to in Section
         4.5 and such other documents and information as it has deemed
         appropriate to make its own credit analysis and decision to enter into
         such Assignment and Acceptance; (iv) such assignee will, independently
         and without reliance upon the Agent, such Bank or any other Bank and
         based on such documents and information as it shall deem appropriate at
         the time, continue to make its own credit decisions in taking or not
         taking action under this Agreement; (v) such assignee appoints and
         authorizes the Agent to take such action as agent on its behalf and to
         exercise such powers under this Agreement and the other Credit
         Documents as are delegated to the Agent by the terms hereof or thereof,
         together with such powers as are reasonably incidental thereto; and
         (vi) such assignee agrees that it will perform in accordance with their
         terms all of the obligations which by the terms of this Agreement are
         required to be performed by it as a Bank.

                  (c) The Register. The Agent shall maintain at its address
         referred to in Section 9.2 a copy of each Assignment and Acceptance
         delivered to and accepted by it and a register for the recordation of
         the names and addresses of the Banks and the Commitments of, and
         principal amount of the Advances owing to, each Bank from time to time
         (the "Register"). The entries in the Register shall be conclusive and
         binding for all purposes, absent manifest error, and the Borrower, the
         Agent, the Issuing Banks and the Banks may treat each Person whose name
         is recorded in the Register as a Bank hereunder for all purposes of
         this Agreement. The Register shall be available for inspection by the
         Borrower or any Bank at any reasonable time and from time to time upon
         reasonable prior notice.

                  (d) Procedures. Upon its receipt of an Assignment and
         Acceptance executed by a Bank and an Eligible Assignee, together with
         the Revolving Note or, in the case of an assignment to another Bank,
         Revolving Notes subject to such assignment, the Agent shall, if such
         Assignment and Acceptance has been completed and is in substantially
         the form of the attached Exhibit A, (i) accept such Assignment and
         Acceptance, (ii) record the information contained therein in the
         Register, and (iii) give prompt notice thereof to the Borrower. Within
         five Business Days after its receipt of such notice, the Borrower, at
         its own expense, shall execute and deliver to the Agent in exchange for
         such Note or Notes, a new Revolving Note payable to the order of such
         Eligible Assignee in amount equal to the Commitment assumed by it
         pursuant to such Assignment and Acceptance, and if the assigning Bank
         has retained any Commitment hereunder, a new Revolving Note payable to
         the order of such Bank in an amount equal to, respectively, the
         Commitment retained by it hereunder. Such new Notes shall be dated the
         effective date of such Assignment and Acceptance and shall otherwise be
         in substantially the form of the attached Exhibit H.

                  (e) Participations. Each Bank may sell participations to one
         or more banks or other entities in or to all or a portion of its rights
         and obligations under this Agreement (including, without limitation,
         all or a portion of its Commitment, the Advances owing to it, its
         participation interest in the Letter of Credit Obligations and the
         Revolving Note held by it); provided, however, that (i) such Bank's
         obligations under this Agreement (including, without limitation, its
         Commitment to the Borrower hereunder) shall remain unchanged, (ii) such
         Bank shall remain solely responsible to the other parties hereto for
         the performance of such obligations, (iii) such Bank shall remain the
         holder of any such Note for all purposes

                                      -75-
<PAGE>

         of this Agreement, (iv) the Borrower, the Agent, the Issuing Banks and
         the other Banks shall continue to deal solely and directly with such
         Bank in connection with such Bank's rights and obligations under this
         Agreement, (v) such Bank shall not require the participant's consent to
         any matter under this Agreement, except for change in the principal
         amount of any Note in which the participant has an interest, reductions
         in fees or interest or extending the Maturity Date, and (vi) such Bank
         shall give prompt prior notice to the Borrower of each such
         participation to be sold by such Bank. The Borrower hereby agrees that
         participants shall have the same rights under Sections 2.8, 2.9,
         2.11(c) and 9.7 hereof as the Bank to the extent of their respective
         participations. Notwithstanding the foregoing, upon the receipt of
         notice by the Borrower of the sale of a participation by any Bank to
         one or more banks or other entities (other than an Affiliate of such
         Bank) in or to all or a portion of its rights and obligations under
         this Agreement (each such bank or other entity, a "Proposed
         Participant"), the Borrower shall have the right, but not the
         obligation, to select additional banks to replace such Proposed
         Participant on the same terms and conditions as the Proposed
         Participant upon prompt written notice from the Borrower to the Agent
         and the Bank selling such participation. The Borrower shall have ten
         days from the date of its receipt of notice of the proposed sale of
         such participation to the Proposed Participant to select replacement
         banks to replace such Proposed Participant. If the Borrower does not
         select any replacement banks or does not elect to select any
         replacement banks the applicable Bank may sell such participation to
         the Proposed Participant.

                  (f) Confidentiality. Each Bank may furnish any information
         concerning the Borrower and its Subsidiaries in the possession of such
         Bank from time to time to assignees and participants (including
         prospective assignees and participants); provided that, prior to any
         such disclosure, the assignee or participant or proposed assignee or
         participant shall agree in writing to preserve the confidentiality of
         any confidential information relating to the Borrower and its
         Subsidiaries received by it from such Bank. Such Bank shall promptly
         deliver a signed copy of any such confidentiality agreement to the
         Borrower.

         Section 9.7 Indemnification. The Borrower shall indemnify the Agent,
the Banks (including any lender which was a Bank hereunder prior to any full
assignment of its Commitment), the Issuing Banks and each affiliate thereof and
their respective directors, officers, employees and agents from, and discharge,
release and hold each of them harmless against, any and all losses, liabilities,
claims or damages to which any of them may become subject, insofar as such
losses, liabilities, claims or damages arise out of or result from (a) any
actual or proposed use by the Borrower or any Affiliate of the Borrower of the
proceeds of any Advance, (b) any breach by the Borrower, any Subsidiary of the
Borrower or any Guarantor of any provision of this Agreement or any other Credit
Document, (c) any investigation, litigation or other proceeding (including any
threatened investigation or proceeding) relating to the foregoing, or (d) any
Environmental Claim or requirement of Environmental Laws concerning or relating
to the present or previously-owned or operated properties, or the operations or
business, of the Borrower or any of its Subsidiaries, and the Borrower shall
reimburse the Agent, each Issuing Bank, each Bank and each affiliate thereof and
their respective directors, officers, employees and agents, upon demand, for any
reasonable out-of-pocket expenses (including reasonable legal fees) incurred in
connection with any such investigation, litigation or other proceeding; and
EXPRESSLY INCLUDING ANY SUCH LOSSES, LIABILITIES, CLAIMS, DAMAGES OR EXPENSE
INCURRED BY REASON OF THE

                                      -76-
<PAGE>

PERSON BEING INDEMNIFIED'S OWN NEGLIGENCE, BUT EXCLUDING ANY SUCH LOSSES,
LIABILITIES, CLAIMS, DAMAGES OR EXPENSES INCURRED BY REASON OF THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF THE PERSON TO BE INDEMNIFIED.

         Section 9.8 Execution in Counterparts. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

         Section 9.9 Survival of Representations, Etc. All representations and
warranties contained in this Agreement or made in writing by or on behalf of the
Borrower in connection herewith shall survive the execution and delivery of this
Agreement and the Credit Documents, the making of the Advances and any
investigation made by or on behalf of the Banks, none of which investigations
shall diminish any Bank's right to rely on such representations and warranties.
All obligations of the Borrower provided for in Sections 2.8, 2.9, 2.11(c) and
9.7 shall survive any termination of this Agreement and repayment in full of the
Obligations.

         Section 9.10 Severability. In case one or more provisions of this
Agreement or the other Credit Documents shall be invalid, illegal or
unenforceable in any respect under any applicable law, the validity, legality
and enforceability of the remaining provisions contained herein or therein shall
not be affected or impaired thereby.

         Section 9.11 Commercial Loans. The Borrower represents and warrants
that the Advances are and shall be "Commercial Loans" as such term is used in
Chapter 306 of the Texas Finance Code. In the event that applicable law provides
for an interest ceiling under Chapter 303 of the Texas Finance Code, the ceiling
shall be the indicated (weekly) ceiling and shall be used when appropriate in
determining the Maximum Rate.

         Section 9.12 Usury Not Intended. It is the intent of the Borrower and
each Bank in the execution and performance of this Agreement and the other
Credit Documents to contract in strict compliance with applicable usury laws,
including conflicts of law concepts, governing the Advances of each Bank
including such applicable laws of the State of Texas and the U.S. from time to
time in effect. In furtherance thereof, the Banks and the Borrower stipulate and
agree that none of the terms and provisions contained in this Agreement or the
other Credit Documents shall ever be construed to create a contract to pay, as
consideration for the use, forbearance or detention of money, interest at a rate
in excess of the Maximum Rate and that for purposes hereof "interest" shall
include the aggregate of all charges which constitute interest under such laws
that are contracted for, charged or received under this Agreement; and in the
event that, notwithstanding the foregoing, under any circumstances the aggregate
amounts taken, reserved, charged, received or paid on the Advances include
amounts which, by applicable law, are deemed interest which would exceed the
Maximum Rate, then such excess shall be deemed to be a mistake and each Bank
receiving same shall credit the same on the principal of its Advances (or if
such Advances shall have been paid in full, refund said excess to the Borrower).
In the event that the maturity of the Advances is accelerated by reason of any
election of the holder thereof resulting from any Event of Default under this
Agreement or otherwise, or in the event of any required or permitted prepayment,
then such consideration that

                                      -77-
<PAGE>

constitutes interest may never include more than the Maximum Rate and excess
interest, if any, provided for in this Agreement or otherwise shall be canceled
automatically as of the date of such acceleration or prepayment and, if
theretofore paid, shall be credited on the applicable Advances (or, if the
applicable Advances shall have been paid in full, refunded to the Borrower). The
provisions of this Section 9.12 shall control over all other provisions of this
Agreement or the other Credit Documents which may be in apparent conflict
herewith.

         Section 9.13 Governing Law. This Agreement, the Notes and the other
Credit Documents shall be governed by, and construed and enforced in accordance
with, the laws of the State of Texas.

         Section 9.14 Consent to Jurisdiction. The Borrower hereby irrevocably
submits to the jurisdiction of any Texas state or federal court sitting in
Dallas, Texas in any action or proceeding arising out of or relating to this
Agreement, the Notes and the other Credit Documents, and the Borrower hereby
irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in such court. The Borrower hereby irrevocably waives,
to the fullest extent it may effectively do so, any right it may have to the
defense of an inconvenient forum to the maintenance of such action or
proceeding. The Borrower hereby agrees that service of copies of the summons and
complaint and any other process which may be served in any such action or
proceeding may be made by mailing or delivering a copy of such process to the
Borrower at its address specified in Section 9.2. The Borrower 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 Section 9.14 shall affect the rights of the
Agent, the Issuing Bank or any Bank to serve legal process in any other manner
permitted by law or affect the right of the Agent, the Issuing Bank or any Bank
to bring any action or proceeding against the Borrower or its Property in the
courts of any other jurisdiction.

         Section 9.15 Banks not in Control. None of the covenants or other
provisions contained in the Credit Documents shall, or shall be deemed to, give
the Banks the right or power to exercise control over the affairs and/or
management of the Borrower, any of its Subsidiaries or any Guarantor, the power
of the Banks being limited to the right to exercise the rights and remedies
provided in the Credit Documents; provided, however, that if any Bank becomes
the owner of any stock, or other equity interest in, any Person whether through
foreclosure or otherwise, such Bank shall be entitled (subject to requirements
of law) to exercise such legal rights as it may have by being owner of such
stock, or other equity interest in, such Person.

         Section 9.16 Headings Descriptive. The headings of the several
sections, clauses and paragraphs of the Agreement are inserted for convenience
only and shall not in any way affect the meaning or construction of any
provision of this Agreement.

         Section 9.17 WAIVERS OF JURY TRIAL. THE BORROWER, THE AGENT AND THE
BANKS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL
PROCEEDING RELATING TO THIS AGREEMENT OR THE NOTES OR ANY OTHER CREDIT DOCUMENT
OR TO ANY COUNTERCLAIM THEREIN.

                                      -78-
<PAGE>

         Section 9.18 Binding Arbitration.

                  (a) Arbitration. The Borrower, the Agent, the Issuing Bank and
         the Banks agree, upon demand, to submit to binding arbitration all
         claims, disputes and controversies between or among them (and their
         respective employees, officers, directors, attorneys, and other
         agents), whether in tort, contract or otherwise arising out of or
         relating to in any way (i) this Agreement or the Credit Documents and
         their negotiation, execution, collateralization, administration,
         repayment, modification, extension, substitution, formation,
         inducement, enforcement, default or termination; or (ii) requests for
         additional credit.

                  (b) Governing Rules. Any arbitration proceeding will (i)
         proceed in a location in Texas selected by the American Arbitration
         Association ("AAA"); (ii) be governed by the Federal Arbitration Act
         (Title 9 of the United States Code), notwithstanding any conflicting
         choice of law provision in any of the documents between the parties;
         and (iii) be conducted by the AAA, or such other administrator as the
         parties shall mutually agree upon, in accordance with the AAA's
         commercial dispute resolution procedures, unless the claim or
         counterclaim is at least $1,000,000.00 exclusive of claimed interest,
         arbitration fees and costs in which case the arbitration shall be
         conducted in accordance with the AAA's optional procedures for large,
         complex commercial disputes (the commercial dispute resolution
         procedures or the optional procedures for large, complex commercial
         disputes to be referred to, as applicable, as the "Rules"). If there is
         any inconsistency between the terms hereof and the Rules, the terms and
         procedures set forth herein shall control. Any Person who fails or
         refuses to submit to arbitration following a demand by any other Person
         shall bear all costs and expenses incurred by such other Person in
         compelling arbitration of any dispute. Nothing contained herein shall
         be deemed to be a waiver by any Person that is a bank of the
         protections afforded to it under 12 U.S.C. Section 91 or any similar
         applicable state law.

                  (c) No Waiver of Provisional Remedies, Self-Help and
         Foreclosure. The arbitration requirement does not limit the right of
         any Person to (i) foreclose against real or personal property
         collateral; (ii) exercise self-help remedies relating to collateral or
         proceeds of collateral such as setoff or repossession; or (iii) obtain
         provisional or ancillary remedies such as replevin, injunctive relief,
         attachment or the appointment of a receiver, before during or after the
         pendency of any arbitration proceeding. This exclusion does not
         constitute a waiver of the right or obligation of any Person to submit
         any dispute to arbitration or reference hereunder, including those
         arising from the exercise of the actions detailed in clauses (i), (ii)
         and (iii) of this Section 9.18(c).

                  (d) Arbitrator Qualifications and Powers. Any arbitration
         proceeding in which the amount in controversy is $5,000,000.00 or less
         will be decided by a single arbitrator selected according to the Rules,
         and who shall not render an award of greater than $5,000,000.00. Any
         dispute in which the amount in controversy exceeds $5,000,000.00 shall
         be decided by majority vote of a panel of three arbitrators; provided
         however, that all three arbitrators must actively participate in all
         hearings and deliberations. The arbitrator will be a neutral attorney
         licensed in the State of Texas with a minimum of ten years experience
         in the substantive law applicable to the subject matter of the dispute
         to be arbitrated. The

                                      -79-
<PAGE>

         arbitrator will determine whether or not an issue is arbitratable and
         will give effect to the statutes of limitation in determining any
         claim. In any arbitration proceeding the arbitrator will decide (by
         documents only or with a hearing at the arbitrator's discretion) any
         pre-hearing motions which are similar to motions to dismiss for failure
         to state a claim or motions for summary adjudication. The arbitrator
         shall resolve all disputes in accordance with the substantive law of
         Texas and may grant any remedy or relief that a court of such state
         could order or grant within the scope hereof and such ancillary relief
         as is necessary to make effective any award. The arbitrator shall also
         have the power to award recovery of all costs and fees, to impose
         sanctions and to take such other action as the arbitrator deems
         necessary to the same extent a judge could pursuant to the Federal
         Rules of Civil Procedure, the Texas Rules of Civil Procedure or other
         applicable law. Judgment upon the award rendered by the arbitrator may
         be entered in any court having jurisdiction. The institution and
         maintenance of an action for judicial relief or pursuit of a
         provisional or ancillary remedy shall not constitute a waiver of the
         right of any Person, including the plaintiff, to submit the controversy
         or claim to arbitration if any other Person contests such action for
         judicial relief.

                  (e) Discovery. In any arbitration proceeding discovery will be
         permitted in accordance with the Rules. All discovery shall be
         expressly limited to matters directly relevant to the dispute being
         arbitrated and must be completed no later than 20 days before the
         hearing date and within 180 days of the filing of the dispute with the
         AAA. Any requests for an extension of the discovery periods, or any
         discovery disputes, will be subject to final determination by the
         arbitrator upon a showing that the request for discovery is essential
         for the such Person's presentation and that no alternative means for
         obtaining information is available.

                  (f) Class Proceedings and Consolidations. The resolution of
         any dispute arising pursuant to the terms of this Agreement shall be
         determined by a separate arbitration proceeding and such dispute shall
         not be consolidated with other disputes or included in any class
         proceeding.

                  (g) Payment Of Arbitration Costs And Fees. The arbitrator
         shall award all costs and expenses of the arbitration proceeding.

                  (h) Miscellaneous. To the maximum extent practicable, the AAA,
         the arbitrators, the Borrower, the Agent, the Issuing Bank and the
         Banks shall take all action required to conclude any arbitration
         proceeding within 180 days of the filing of the dispute with the AAA.
         No arbitrator or other Person that is a party to an arbitration
         proceeding may disclose the existence, content or results thereof,
         except for disclosures of information by a Person required in the
         ordinary course of its business or by applicable law or regulation. If
         more than one agreement for arbitration by or between the Borrower, the
         Agent, the Issuing Bank and the Banks potentially applies to a dispute,
         the arbitration provision most directly related to the Credit Documents
         or the subject matter of the dispute shall control. This arbitration
         provision shall survive termination, amendment or expiration of any of
         the Credit Documents or any relationship between or among the Borrower,
         the Agent, the Issuing Bank and the Banks.

                                      -80-
<PAGE>

         Section 9.19 ENTIRE AGREEMENT. PURSUANT TO SECTION 26.02 OF THE TEXAS
BUSINESS AND COMMERCE CODE, A LOAN AGREEMENT IN WHICH THE AMOUNT INVOLVED IN THE
LOAN AGREEMENT EXCEEDS $50,000 IN VALUE IS NOT ENFORCEABLE UNLESS THE LOAN
AGREEMENT IS IN WRITING AND SIGNED BY THE PARTY TO BE BOUND OR THAT PARTY'S
AUTHORIZED REPRESENTATIVE.

         THE RIGHTS AND OBLIGATIONS OF THE PARTIES TO AN AGREEMENT SUBJECT TO
THE PRECEDING PARAGRAPH SHALL BE DETERMINED SOLELY FROM THE WRITTEN LOAN
AGREEMENT, AND ANY PRIOR ORAL AGREEMENTS BETWEEN THE PARTIES ARE SUPERSEDED BY
AND MERGED INTO THE LOAN AGREEMENT. THIS WRITTEN AGREEMENT AND THE CREDIT
DOCUMENTS, AS DEFINED IN THIS AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES.

                  [Remainder of page left intentionally blank]

                                      -81-
<PAGE>

         EXECUTED as of the date first referenced above.

                                             BORROWER:

                                             ARKANSAS BEST CORPORATION

                                             By: /s/ DAVID E. LOEFFLER
                                                 -------------------------------
                                             Name:  David E. Loeffler
                                                   -----------------------------
                                             Title: Vice President
                                                    ----------------------------
                                                    Chief Financial Officer
                                                    and Treasurer

                                      -82-
<PAGE>

                                               AGENT:

                                               WELLS FARGO BANK TEXAS, NATIONAL
                                               ASSOCIATION, as Agent

                                               By: /s/ PRESTON L. MASSEY
                                                   -----------------------------
                                                   Preston L. Massey
                                                   Assistant Vice President

                                      -83-
<PAGE>

                                          CO-SYNDICATION AGENTS:

                                          FLEET NATIONAL BANK, as Co-Syndication
                                          Agent

                                          By: /s/ ROBERT L. WALLACE, JR.
                                              ----------------------------------
                                              Robert L. Wallace, Jr.
                                              Managing Director

                                          SUNTRUST BANK, as Co-Syndication Agent

                                          By: /s/ JAMES L. MOSBY
                                              ----------------------------------
                                              James L. Mosby
                                              Vice President

                                          DOCUMENTATION AGENT:

                                          WACHOVIA BANK, NATIONAL ASSOCIATION,
                                          as Documentation Agent

                                          By:  /s/ JIM CONVILLE
                                              ----------------------------------
                                              Jim Conville
                                              Assistant Vice President

                                      -84-
<PAGE>

                                       BANKS:

                                       WELLS FARGO BANK TEXAS, NATIONAL
                                       ASSOCIATION, as a Bank

                                       By: /s/ PRESTON L. MASSEY
                                           -------------------------------------
                                           Preston L. Massey
                                           Assistant Vice President

                                      -85-
<PAGE>

                                            FLEET NATIONAL BANK, as a Bank

                                            By:  /s/ ROBERT L. WALLACE, JR.
                                                 -------------------------------
                                                 Robert L. Wallace, Jr.
                                                 Managing Director

                                      -86-
<PAGE>

                                             SUNTRUST BANK, as a Bank

                                             By: /s/ JAMES L. MOSBY
                                                 -------------------------------
                                                 James L. Mosby
                                                 Vice President

                                      -87-
<PAGE>

                                              WACHOVIA BANK, NATIONAL
                                              ASSOCIATION, as a Bank

                                              By: /s/ JIM CONVILLE
                                                  ------------------------------
                                                  Jim Conville
                                                  Assistant Vice President

                                      -88-
<PAGE>

                                              THE BANK OF TOKYO-MITSUBISHI, LTD.

                                              By: /s/ DOUGLAS M. BARNELL
                                                  ------------------------------
                                                  Douglas M. Barnell
                                                  Vice President

                                              By: /s/ J. MEARNS
                                                  ------------------------------
                                                  J. MEARNS
                                                  VP AND MANAGER

                                      -89-
<PAGE>

                                               U.S. BANK NATIONAL ASSOCIATION

                                               By: /s/ DAVID HIGBEE
                                                   -----------------------------
                                                   David Higbee
                                                   Vice President

                                      -90-
<PAGE>

                                              COMERICA BANK

                                              By:  /s/ CAROL GERAGHTY
                                                   -----------------------------
                                                   Carol Geraghty
                                                   Vice President

                                      -91-
<PAGE>

                                    FIRST NATIONAL BANK OF FORT SMITH

                                    By:  /s/ JAMES C. FOURMY, JR. By [Illegible]
                                         ---------------------------------------
                                         James C. Fourmy, Jr.
                                         Senior Vice President

                                      -92-

<PAGE>

                                    EXHIBIT A

                            ASSIGNMENT AND ACCEPTANCE

                          Dated ________________, _____

         Reference is made to that certain Credit Agreement dated as of May 15,
2002 (as the same may be amended, restated, supplemented, renewed, extended or
otherwise modified from time to time, the "Credit Agreement") among Arkansas
Best Corporation (the "Borrower"), the lenders parties thereto, Fleet National
Bank and SunTrust Bank, as Co-Syndication Agents, Wachovia Corporation, as
Documentation Agent, and Wells Fargo Bank Texas, National Association, as
Administrative Agent (the "Agent"). Unless otherwise defined in this Assignment
and Acceptance, capitalized terms used herein shall have the same meanings
herein as defined in the Credit Agreement. This Assignment and Acceptance is
being executed pursuant to Section 9.6 of the Credit Agreement.

         ______________________ ( the "Assignor") and _____________________ (the
"Assignee") agree as follows:

         1. As of the Effective Date (as defined below), the Assignor hereby
sells and assigns and delegates to the Assignee, and the Assignee hereby
purchases and assumes from the Assignor, without recourse to the Assignor and
without representation or warranty except for the representations and warranties
specifically set forth in clauses (i), (ii), and (iii) of Section 2, a ___%(1)
interest in and to all of the Assignor's rights and obligations under the Credit
Agreement in connection with its Commitment, including, without limitation, such
percentage interest in the Assignor's Commitment and the Revolving Advances
owing to the Assignor, the participation interest in the Letter of Credit
Obligations held by the Assignor and the Revolving Note held by the Assignor.

         2. The Assignor (a) represents and warrants that, as of the date hereof
but immediately prior to giving effect to this Assignment and Acceptance, its
total Commitment is $__________, the aggregate outstanding principal amount of
Revolving Advances owed to it by the Borrower is $_____________, and its Pro
Rata Share of the Letter of Credit Exposure is $___________; (b) represents and
warrants that it is the legal and beneficial owner of the interest being
assigned by it hereunder and that such interest is free and clear of any Lien or
other adverse claim; (c) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Credit Agreement or any other Credit Document
or the execution, legality, validity, enforceability, genuineness, sufficiency
or value of the Credit Agreement or any other Credit Document or any other
instrument or document furnished pursuant thereto; (d) makes no representation
or warranty and

--------

(1) Specify percentage in no more than 5 decimal points.

Exhibit A to Credit Agreement - Page 1

<PAGE>

assumes no responsibility with respect to the financial condition or results of
operation of the Borrower, any Subsidiary of the Borrower or any Guarantor or
the performance or observance by the Borrower, any Subsidiary of the Borrower or
any Guarantor of any of its obligations under the Credit Agreement or any other
Credit Document or any other instrument or document furnished pursuant thereto;
and (e) attaches the Revolving Note referred to in paragraph 1 above and
requests that the Agent exchange such Revolving Note for a new Revolving Note
dated ____________, 200_ in the principal amount of $______________ payable to
the order of the Assignee [, and a new Revolving Note dated ___________, 200_ in
the principal amount of $__________, payable to the order of Assignor].

         3. The Assignee (a) confirms that it has received a copy of the Credit
Agreement, together with, (i) in the event that the date of this Assignment and
Acceptance is prior to the date of delivery of the initial financial statements
required to be delivered pursuant to Section 5.6(b) of the Credit Agreement,
copies of the financial statements referred to in Section 4.5 of the Credit
Agreement or (ii) in the event that the date of this Assignment and Acceptance
is after the date of delivery of the initial financial statements required to be
delivered pursuant to Section 5.6(b) of the Credit Agreement, copies of the most
recent financial statements delivered pursuant to Section 5.6(b) of the Credit
Agreement, and such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this Assignment and
Acceptance; (b) agrees that it has, independently and without reliance upon the
Agent, the Co-Syndication Agents, the Assignor or any other Bank, and based on
such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement; (c) agrees that it will,
independently and without reliance upon the Agent, the Co-Syndication Agents,
the Assignor or any other Bank and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Credit Agreement or any other Credit
Document; (d) appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers under the Credit Agreement and any other
Credit Document as are delegated to the Agent by the terms thereof, together
with such powers as are reasonably incidental thereto; (e) agrees that it will
perform in accordance with their terms all of the obligations which by the terms
of the Credit Agreement or any other Credit Document are required to be
performed by it as a Bank; (f) specifies as its Domestic Lending Office (and
address for notices) and Eurodollar Lending Office the offices set forth beneath
its name on the signature pages hereof; (g) attaches the forms prescribed by the
Internal Revenue Service of the United States certifying as to the Assignee's
status for purposes of determining exemption from United States withholding
taxes with respect to all payments to be made to the Assignee under the Credit
Agreement and its Notes or such other documents as are necessary to indicate
that all such payments are subject to such rates at a rate reduced by an
applicable tax treaty(2) , and (h) represents that it is an Eligible Assignee.

         4. Each party to this Assignment and Acceptance represents and warrants
to the other party hereto that it has full power and authority to enter into
this Assignment and Acceptance and to perform its obligations hereunder in
accordance with the provisions hereof,

----------

(2) If the Assignee is organized under the laws of a jurisdiction outside the
United States.

Exhibit A to Credit Agreement - Page 2

<PAGE>

that this Assignment and Acceptance has been duly authorized, executed and
delivered by such party and that this Assignment and Acceptance constitutes a
legal, valid and binding obligation of such party, enforceable against such
party in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting creditors' rights generally and by general principles of equity.

         5. The effective date for this Assignment and Acceptance shall be
________________ (the "Effective Date")(3) and following the execution of this
Assignment and Acceptance, the Agent will record it.

         6. Upon such recording, and as of the Effective Date, (i) the Assignee
shall be a party to the Credit Agreement for all purposes, and, to the extent
provided in this Assignment and Acceptance, have the rights and obligations of a
Bank thereunder and (ii) the Assignor shall, to the extent provided in this
Assignment and Acceptance, relinquish its rights (other than rights against the
Borrower pursuant to Sections 2.8, 2.9, 2.11(c) and 9.7 of the Credit Agreement,
which shall survive this assignment) and be released from its obligations under
the Credit Agreement.

         7. Upon such recording, from and after the Effective Date, the Agent
shall make all payments under the Credit Agreement and the Revolving Notes in
respect of the interest assigned hereby (including, without limitation, all
payments of principal, interest and facility fees) to the Assignee. The Assignor
and the Assignee shall make all appropriate adjustments in payments under the
Credit Agreement and the Revolving Notes for periods prior to the Effective Date
directly between themselves.

         8. This Assignment and Acceptance shall be governed by, and construed
and enforced in accordance with, the laws of the State of Texas.

----------

(3) See Section 9.6 of the Credit Agreement. Such date shall be at least three
Business Days after the execution of this Assignment and Acceptance unless
otherwise agreed by the parties hereto and the Agent.

Exhibit A to Credit Agreement - Page 3

<PAGE>

     The parties hereto have caused this Assignment and Acceptance to be duly
executed as of the date first above written.

                                          [ASSIGNOR]

                                          By:
                                              ----------------------------------
                                             Name:
                                                   -----------------------------
                                             Title:
                                                    ----------------------------

                                          Address:
                                                   -----------------------------

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

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

                                          Attention:
                                                     ---------------------------
                                          Telecopy:
                                                    ----------------------------
                                          Telephone:
                                                     ---------------------------

                                          [ASSIGNEE]

                                          By:
                                              ----------------------------------
                                             Name:
                                                   -----------------------------
                                             Title:
                                                    ----------------------------

                                          Domestic Lending Office:

                                          Address:
                                                   -----------------------------

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

                                          Attention:
                                                     ---------------------------
                                          Telecopy:
                                                    ----------------------------
                                          Telephone:
                                                     ---------------------------

                                          Eurodollar Lending Office:

                                          Address:
                                                   -----------------------------

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

                                          Attention:
                                                     ---------------------------
                                          Telecopy:
                                                    ----------------------------
                                          Telephone:
                                                     ---------------------------

Exhibit A to Credit Agreement - Page 4
<PAGE>

[APPROVED(4) AND] ACCEPTED BY:

WELLS FARGO BANK TEXAS, NATIONAL
ASSOCIATION, as Administrative Agent

By:
    ----------------------
Name:
      --------------------
Title:
      --------------------

Date:
      --------------------

[APPROVED(4) BY:]

                          ,
--------------------------
as Issuing Bank

By:
    ----------------------
Name:
      --------------------
Title:
       -------------------

Date:
      --------------------

[APPROVED(4) BY:]

ARKANSAS BEST CORPORATION

By:
    ----------------------
Name:
      --------------------
Title:
       -------------------

Date:
      --------------------

----------

(4) Approval by the Administrative Agent, the Issuing Bank and/or the Borrower
may be required under the definition of "Eligible Assignee" contained in the
Credit Agreement.

Exhibit A to Credit Agreement - Page 5

<PAGE>

                                    EXHIBIT B

                           BORROWING BASE CERTIFICATE

         Reference is made to that certain Credit Agreement dated as of May 15,
2002 (as the same may be amended, restated, supplemented, renewed, extended or
otherwise modified from time to time, the "Credit Agreement"), among Arkansas
Best Corporation (the "Borrower"), the lenders parties thereto, Fleet National
Bank and SunTrust Bank, as Co-Syndication Agents, Wachovia Corporation, as
Documentation Agent, and Wells Fargo Bank Texas, National Association, as
Administrative Agent. Unless otherwise defined in this Borrowing Base
Certificate, capitalized terms used herein shall have the same meanings herein
as defined in the Credit Agreement.

         Pursuant to Section 5.6(i) of the Credit Agreement, the Borrower does
hereby certify to the Agent and the Banks the following as of __________, ____
[last day of immediately preceding calendar month]:

<Table>
<S>                                                                                              <C>
1.       Net Depreciated Value of Eligible Revenue Equipment                                     $
                                                                                                   -------------

2.       Borrowing Base value of Eligible Revenue Equipment (75%)                                $
                                                                                                   -------------

3.       Aggregate outstanding Eligible Receivables                                              $
                                                                                                   -------------

4.       Borrowing Base value of Eligible Receivables (85%)                                      $
                                                                                                   -------------

5.       Net Depreciated Value of Eligible Other Equipment                                       $
                                                                                                   -------------

6.       Borrowing Base value of Eligible Other Equipment (50%)                                  $
                                                                                                   -------------

7.       Real Estate Value of Eligible Real Property                                             $
                                                                                                   -------------

8.       Borrowing Base value of Eligible Real Property (65%)                                    $
                                                                                                   -------------

9.       Aggregate outstanding principal amount of all unsecured Total Funded Debt
         other than such Total Funded Debt which constitutes a part of the Obligations
                                                                                                 $
                                                                                                   -------------

10.      TOTAL BORROWING BASE VALUE
         (Remainder of (a) the sum of Lines 2, 4, 6 and 8 minus (b) Line 9)                      $
                                                                                                   -------------
</Table>

Exhibit B to Credit Agreement - Page 1

<PAGE>

<Table>
<S>                                                                                              <C>
11.      Total aggregate Commitments                                                             $
                                                                                                   -------------

12.      LESSER OF BORROWING BASE VALUE OR AGGREGATE COMMITMENTS
         (Lesser of Line 10 or Line 11)
                                                                                                 $
                                                                                                   -------------

13.      Aggregate amount of all outstanding Revolving Advances                                  $
                                                                                                   -------------

14.      Aggregate outstanding amount of all outstanding Swingline Advances
                                                                                                 $
                                                                                                   -------------

15.      Aggregate amount of Letter of Credit Exposure                                           $
                                                                                                   -------------

16.      BORROWING BASE AVAILABILITY
         (Remainder of (a) Line 12 minus (b) the sum of Lines 13,14 and 15)(1)                   $
                                                                                                   -------------
</Table>

----------

(1) If the Borrowing Base Availability calculated as shown in Line 16 above is
negative, the Borrower shall be required to prepay the Advances in accordance
with clause (ii) of Section 2.7(c) of the Credit Agreement.

Exhibit B to Credit Agreement - Page 2
<PAGE>

         The Borrower has caused this Borrowing Base Certificate to be executed
this ____ day of ______________, ____.

                                                  ARKANSAS BEST CORPORATION

                                                  By:
                                                     ---------------------------
                                                  Name:
                                                       -------------------------
                                                  Title:
                                                        ------------------------

Exhibit B to Credit Agreement - Page 3
<PAGE>

                                    EXHIBIT C

                             COMPLIANCE CERTIFICATE

FOR FISCAL QUARTER OR FISCAL YEAR ENDED ___________ (the "Subject Period")

         This certificate dated as of __________, ____ is prepared pursuant to
Section 5.6(a) and Section 5.6(b) of the Credit Agreement dated as of May 15,
2002 (as the same may be amended, restated, supplemented, renewed, extended or
otherwise modified from time to time, the "Credit Agreement") among Arkansas
Best Corporation (the "Borrower"), the lenders parties thereto, Fleet National
Bank and SunTrust Bank, as Co-Syndication Agents, Wachovia Corporation, as
Documentation Agent, and Wells Fargo Bank Texas, National Association, as
Administrative Agent. Unless otherwise defined in this certificate, capitalized
terms used herein shall have the same meanings herein as defined in the Credit
Agreement.

         The Borrower hereby certifies (a) that no Default currently exists or
has occurred or is continuing, (b) that all of the representations and
warranties made by the Borrower and its Subsidiaries in the Credit Agreement, in
Section 7 of the Guaranty and in the other Credit Documents are true and correct
in all material respects as if made on this date and (c) that as of the last day
of the Subject Period the amounts and calculations attached hereto as Attachment
"A" are true and correct(1).

         Executed this _____ day of __________, ____.

                                            ARKANSAS BEST CORPORATION

                                            By:
                                               ---------------------------------
                                            Name:
                                                  ------------------------------
                                            Title: Chief Financial Officer

----------

(1) Attachment "A" is to contain amounts and calculations, in reasonable detail,
with respect to the Borrower's compliance with the following Sections of the
Credit Agreement: Section 6.11, Section 6.12 and Section 6.13.

Exhibit C to Credit Agreement - Page 1
<PAGE>

                                  ATTACHMENT A
                                       to
                             COMPLIANCE CERTIFICATE

<Table>
<Caption>

                                                                                              In Compliance as of
                                                                                             End of Subject Period
                                                                                               (Please Indicate)
<S>                                                                              <C>                  <C>
1.       Interest Coverage Ratio (Section 6.11 of the Credit Agreement)

         (a)    Adjusted EBITDA                                                  =
                                                                                   ---------------

         (b)    Consolidated Interest Expense for Subject Period                 =
                                                                                   ---------------

         (c)    Interest income for Subject Period                               =
                                                                                   ---------------

         (d)    The amount entered on line (b) minus the amount
                entered on line (c)                                              =
                                                                                   ---------------

         (e)    The ratio of the amount entered on line (a) to the
                amount, if positive, entered on line (d)                         =       to
                                                                                   ------  -------

         Is the ratio entered on line (e) greater than or equal to 4.5 to 1.0?                        Yes        No

2.       Consolidated Net Worth (Section 6.12 of the Credit Agreement)

         (a)    $272,000,000

         (b)    Cumulative Net Income from April 1, 2002 multiplied
                by 50%                                                           =
                                                                                   ---------------

         (c)    Net cash proceeds of any issuance of equity since
                May 15, 2002 multiplied by 50%                                   =
                                                                                   ---------------

         (d)    The sum of the amounts entered on lines (a), (b) and (c)         =
                                                                                   ---------------

         (e)    The aggregate amount of cash paid, from the Closing Date to the
                earlier of the date that is (i) the last day of the Subject
                Period or (ii) November 15, 2003, by the Borrower to its
                shareholders for repurchases or redemptions of Capital Stock     =
                                                                                   ---------------

         (f)    The lesser of the amount entered on line (e) or
                $25,000,000 (the "Adjustment Amount")                            =
                                                                                   ---------------

         Is Consolidated Net Worth plus the Adjustment Amount greater than or                         Yes        No
         equal to the amount entered on line (d)?

3.       Leverage Ratio. (Section 6.13 of the Credit Agreement)

         (a)    Total Funded Debt                                                =
                                                                                   ---------------

         (b)    Adjusted EBITDA                                                  =
                                                                                   ---------------

         (c)    The ratio of the amount entered on line (a) to the
                amount entered on line (b)                                       =        to
                                                                                   -------  ------
         Is the ratio entered on line (c) less than or equal to 2.75 to 1.00?                         Yes        No
</Table>

Exhibit C to Credit Agreement - Page 2
<PAGE>

                                    EXHIBIT D

                 SUBSIDIARY GUARANTY AND CONTRIBUTION AGREEMENT

         This Subsidiary Guaranty and Contribution Agreement dated as of May 15,
2002 (this "Agreement") is executed by the parties signatory hereto or to an
Accession Agreement in favor of the Agent and the Banks party to the Credit
Agreement herein described.

                                  INTRODUCTION

         A. This Agreement is given in connection with the Credit Agreement
dated as of May 15, 2002 (as the same may be amended, restated, supplemented,
renewed, extended or otherwise modified from time to time, the "Credit
Agreement") among Arkansas Best Corporation, a Delaware corporation (the
"Borrower"), Wells Fargo Bank Texas, National Association, as Administrative
Agent (the "Agent"), Fleet National Bank and SunTrust Bank, as Co-Syndication
Agents, Wachovia Corporation, as Documentation Agent, and the lenders parties
thereto.

         B. The Borrower is the principal financing entity for all capital
requirements of its Subsidiaries, and from time to time the Borrower has made
and will continue to make capital contributions and advances to its
Subsidiaries, including each of the parties hereto (such parties herein called
individually a "Guarantor" and collectively the "Guarantors"). Each Guarantor is
a direct or indirect subsidiary of the Borrower and will derive substantial
direct and indirect benefit from the transactions contemplated by the Credit
Agreement.

         C. Under the Credit Agreement, it is a condition to the making of the
Advances by the Banks and the issuance of the Letters of Credit by the Issuing
Bank that each Guarantor shall have executed and delivered this Agreement.

         Therefore, in order to induce the Banks to make the Advances and the
Issuing Bank to issue the Letters of Credit, each Guarantor hereby agrees as
follows:

         Section 1. Definitions. Unless otherwise defined in this Agreement,
capitalized terms used herein shall have the same meanings herein as defined in
the Credit Agreement.

         Section 2. Guaranty. Each Guarantor hereby unconditionally guarantees
the punctual payment when due, whether at stated maturity, by acceleration or
otherwise, of all indebtedness, liabilities and/or obligations of the Borrower
now or hereafter existing under the Credit Agreement, the Notes and any other
Credit Document, whether for principal, Reimbursement Obligations, interest,
fees, expenses or otherwise (such indebtedness, liabilities and/or obligations
being hereinafter referred to as the "Guaranteed Obligations"), and any and all
expenses (including reasonable counsel fees and expenses) incurred by the Agent
or any Bank in enforcing any rights under this Agreement. Each Guarantor agrees
that its guaranty obligation under this Agreement is a guarantee of payment, not
of collection, and that such Guarantor is primarily liable for the payment of
the Guaranteed Obligations.

Exhibit D to Credit Agreement - Page 1
<PAGE>

         Section 3. Limit of Liability. Each Guarantor shall be liable under
this Agreement with respect to the Guaranteed Obligations only for amounts
aggregating up to the largest amount that would not render its guaranty
obligation hereunder subject to avoidance under Section 548 of the United States
Bankruptcy Code or any comparable provisions of any state law.

         Section 4. Guaranty Absolute. Each Guarantor guarantees that the
Guaranteed Obligations will be paid strictly in accordance with the terms of the
Credit Agreement and the other Credit Documents, regardless of any law,
regulation or order now or hereafter in effect in any jurisdiction affecting any
of such terms or the rights of the Agent or the Banks with respect thereto. The
liability of each Guarantor under this Agreement shall be absolute and
unconditional irrespective of:

         (a) any lack of validity or enforceability of the Credit Agreement, any
other Credit Document or any other agreement or instrument relating thereto;

         (b) any change in the time, manner or place of payment of, or in any
other term of, any of the Guaranteed Obligations, or any other amendment or
waiver of or any consent to departure from the Credit Agreement or any Credit
Document;

         (c) any release or amendment or waiver of or consent to departure from
the Credit Agreement, this Agreement or any other agreement or guaranty, for any
of the Guaranteed Obligations; or

         (d) any other circumstances which might otherwise constitute a defense
available to, or a discharge of, the Borrower or a Guarantor.

         Section 5. Continuation and Reinstatement, Etc. Each Guarantor agrees
that, to the extent that the Borrower makes payments to the Agent or any Bank
and such payments or any part thereof are subsequently invalidated, declared to
be fraudulent or preferential, set aside or otherwise required to be repaid,
then to the extent of such repayment the Guaranteed Obligations shall be
reinstated and continued in full force and effect as of the date such initial
payment occurred. The Guarantor shall defend and indemnify the Agent and each
Bank from and against any claim or loss under this Section 5 (including
reasonable attorneys' fees and expenses) in the defense of any such action or
suit.

         Section 6. Certain Waivers.

         6.01. Notice. Each Guarantor hereby waives promptness, diligence,
notice of acceptance, notice of acceleration, notice of intent to accelerate and
any other notice with respect to any of the Guaranteed Obligations and this
Agreement.

         6.02. Other Remedies. Each Guarantor hereby waives any requirement that
the Agent or any Bank exhaust any right or take any action against the Borrower
or any other Person, including any action required by Chapter 34 of the Texas
Business and Commerce Code.

Exhibit D to Credit Agreement - Page 2
<PAGE>

         6.03. Waiver of Subrogation. (a) Each Guarantor hereby irrevocably
waives, until payment in full of all Guaranteed Obligations and termination of
all Commitments, any claim or other rights which it may acquire against the
Borrower that arise from such Guarantor's obligations under this Agreement or
any other Credit Document, including, without limitation, any right of
subrogation (including, without limitation, any statutory rights of subrogation
under Section 509 of the Bankruptcy Code, 11 U.S.C. 509, or otherwise),
reimbursement, exoneration, contribution, indemnification or any right to
participate in any claim or remedy of the Agent or any Bank against the Borrower
which the Agent or any Bank now has or acquires. If any amount shall be paid to
any Guarantor in violation of the preceding sentence and the Guaranteed
Obligations shall not have been paid in full and all of the Commitments
terminated, such amount shall be held in trust for the benefit of the Agent and
the Banks, and shall promptly be paid to the Agent for the benefit of the Agent
and the Banks to be applied to the Guaranteed Obligations, whether matured or
unmatured, as the Agent may elect. Each Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated by the Credit Agreement and that the waiver set forth in this
Section 6.03(a) is knowingly made in contemplation of such benefits.

         (b) Each Guarantor further agrees that it will not enter into any
agreement providing, directly or indirectly, for any contribution,
reimbursement, repayment or indemnity by the Borrower or any other Person on
account of any payment by such Guarantor to the Agent or the Banks under this
Agreement.

         Section 7. Representations and Warranties. Each Guarantor hereby
represents and warrants as follows:

         7.01. Corporate Authority. Such Guarantor is a corporation or a limited
liability company duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization, which is set forth on Schedule
4.1 to the Credit Agreement. The execution, delivery and performance by such
Guarantor of this Agreement are within such Guarantor's corporate powers, have
been duly authorized by all necessary corporate action, and do not contravene or
violate (a) such Guarantor's charter or bylaws or (b) any law or material
contractual restriction affecting such Guarantor or its Property.

         7.02. Government Approval. No authorization or approval or other action
by, and no notice to or filing with, any Governmental Authority is required for
the due execution, delivery and performance by such Guarantor of this Agreement.

         7.03. Binding Obligations. This Agreement is the legal, valid and
binding obligation of such Guarantor enforceable against such Guarantor in
accordance with its terms, subject to the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar law affecting creditors'
rights (whether considered in a proceeding at law or in equity).

         Section 8. Covenants. Each Guarantor will comply with all covenant
provisions of Article V and Article VI of the Credit Agreement to the extent
such provisions are applicable to a Subsidiary of the Borrower.

Exhibit D to Credit Agreement - Page 3
<PAGE>

         Section 9. Contribution. As a result of the transactions contemplated
by the Credit Agreement, each of the Guarantors will benefit, directly and
indirectly, from the Obligations and in consideration thereof desire to enter
into a contribution agreement among themselves as set forth in this Section 9 to
allocate such benefits among themselves and to provide a fair and equitable
arrangement to make contributions in the event any payment is made by any
Guarantor hereunder to the Agent or the Banks (such payment being referred to
herein as a "Contribution"). The Guarantors hereby agree as follows:

         9.01. Calculation of Contribution. In order to provide for just and
equitable contribution among the Guarantors in the event any Contribution is
made by a Guarantor (a "Funding Guarantor"), such Funding Guarantor shall be
entitled to a contribution from certain other Guarantors for all payments,
damages and expenses incurred by that Funding Guarantor in discharging any of
the Obligations, in the manner and to the extent set forth in this Section 9.01.
The amount of any Contribution under this Agreement shall be equal to the
payment made by the Funding Guarantor to the Agent or any other beneficiary
pursuant to this Agreement and shall be determined as of the date on which such
payment is made.

         9.02. Benefit Amount Defined. For purposes of this Agreement, the
"Benefit Amount" of any Guarantor as of any date of determination shall be the
net value of the benefits to such Guarantor and all of its Subsidiaries
(including any Subsidiaries which may be Guarantors) from extensions of credit
made by the Banks to the Borrower under the Credit Agreement; provided, that in
determining the contribution liability of any Guarantor which is a Subsidiary to
its direct or indirect parent corporation or of any Guarantor to its direct or
indirect Subsidiary, the Benefit Amount of such Subsidiary and its Subsidiaries,
if any, shall be subtracted in determining the Benefit Amount of the parent
corporation. Such benefits shall include benefits of funds constituting proceeds
of Advances made to the Borrower by the Banks which are in turn advanced or
contributed by the Borrower to such Guarantor or its Subsidiaries and benefits
of Letters of Credit issued pursuant to the Credit Agreement on behalf of, or
the proceeds of which are advanced or contributed or otherwise benefit, directly
or indirectly, such Guarantor and its Subsidiaries (collectively, the
"Benefits"). In the case of any proceeds of Advances or Benefits advanced or
contributed to a Person of which any of the equity interests are owned directly
or indirectly by a Guarantor (an "Owned Entity"), the Benefit Amount of a
Guarantor with respect thereto shall be that portion of the net value of the
benefits attributable to Advances or Benefits equal to the direct or indirect
percentage ownership of such Guarantor in its Owned Entity.

         9.03. Contribution Obligation. Each Guarantor shall be liable to a
Funding Guarantor in an amount equal to the greater of (a) (i) the ratio of the
Benefit Amount of such Guarantor to the total amount of Obligations, multiplied
by (ii) the amount of Obligations paid by such Funding Guarantor and (b) 95% of
the excess of the fair saleable value of the property of such Guarantor over the
total liabilities of such Guarantor (including the maximum amount reasonably
expected to become due in respect of contingent liabilities) determined as of
the date on which the payment made by a Funding Guarantor is deemed made for
purposes of this Agreement (giving effect to all payments made by other Funding
Guarantors as of such date in a manner to maximize the amount of such
contributions).

Exhibit D to Credit Agreement - Page 4
<PAGE>

         9.04. Allocation. In the event that at any time there exists more than
one Funding Guarantor with respect to any Contribution (in any such case, the
"Applicable Contribution"), then payment from other Guarantors pursuant to this
Agreement shall be allocated among such Funding Guarantors in proportion to the
total amount of the Contribution made for or on account of the Borrower by each
such Funding Guarantor pursuant to the Applicable Contribution. In the event
that at any time any Guarantor pays an amount under this Agreement in excess of
the amount calculated pursuant to clause (a) of Section 9.03, that Guarantor
shall be deemed to be a Funding Guarantor to the extent of such excess and shall
be entitled to contribution from the other Guarantors in accordance with the
provisions of this Section 9.04.

         9.05. Subsidiary Payment. The amount of contribution payable under this
Section 9.05 by any Guarantor shall be reduced by the amount of any contribution
paid hereunder by a Subsidiary of such Guarantor.

         9.06. Equitable Allocation. If as a result of any reorganization,
recapitalization or other corporate change in the Borrower or any of its
Subsidiaries, or as a result of any amendment, waiver or modification of the
terms and conditions of other Sections of this Agreement or the Obligations, or
for any other reason, the contributions under this Section 9.06 become
inequitable as among the Guarantors, the Guarantors shall promptly modify and
amend this Section 9.06 to provide for an equitable allocation of contributions.
Any of the foregoing modifications and amendments shall be in writing and signed
by all Guarantors.

         9.07. Asset of Party to Which Contribution is Owing. The Guarantors
acknowledge that the right to contribution hereunder shall constitute an asset
in favor of the Guarantor to which such contribution is owing.

         9.08. Subordination. No payments payable by a Guarantor pursuant to the
terms of this Section 9 shall be paid until all amounts then due and payable by
the Borrower to any Bank, pursuant to the terms of the Credit Documents, are
paid in full in cash. Nothing contained in this Section 9 shall affect the
indebtedness, liabilities or obligations of any Guarantor to the Agent or any
Bank under this Agreement, the Credit Agreement or any other Credit Documents.

         Section 10. Miscellaneous.

         10.01. Addresses for Notices. All notices and other communications
provided for hereunder shall be in writing, including telegraphic communication,
and delivered or teletransmitted to the Agent, as set forth in the Credit
Agreement, and to each Guarantor, at the address set forth beside such
Guarantor's name on Annex 1 hereto or in the Accession Agreement executed by
such Guarantor, or to such other address as shall be designated by any Guarantor
or the Agent in written notice to the other parties. All such notices and other
communications shall be effective when delivered or teletransmitted to the above
addresses.

         10.02. Amendments, Etc. No waiver of any provision of this Agreement
nor consent to any departure by any Guarantor therefrom shall be effective
unless the same shall be in writing and signed by the Agent, the Majority Banks
and the Borrower, and no amendment of this Agreement shall be effective unless
the same shall be in writing and signed by each Guarantor and the Agent, with
the consent of the Majority Banks; provided, however, that any amendment

Exhibit D to Credit Agreement - Page 5
<PAGE>

or waiver releasing any Guarantor from any liability hereunder shall be signed
by all the Banks; provided, further, however, that any waiver or consent shall
be effective only in the specific instance and for the specific purpose for
which given. Notwithstanding the foregoing, in the event that any Subsidiary of
the Borrower hereafter is required in a accordance with the terms of the Credit
Agreement or otherwise agrees to become a guarantor of the Borrower's
obligations under the Credit Documents, then such Subsidiary may become a party
to this Agreement by executing an Accession Agreement ("Accession Agreement") in
the form attached hereto as Annex 2, and each Guarantor and the Agent hereby
agrees that, upon such Subsidiary's execution of such Accession Agreement, this
Agreement shall be deemed to have been amended to make such Person a Guarantor
hereunder for all purposes and a party hereto and no signature is required on
behalf of the other Guarantors or the Agent to make such an amendment to this
Agreement effective.

         10.03. No Waiver; Remedies. No failure on the part of the Agent or any
Bank to exercise, and no delay in exercising, any right hereunder shall operate
as a waiver thereof; nor shall any single or partial exercise of any right
hereunder preclude any other or further exercise thereof or the exercise of any
other right. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

         10.04. Right of Set-Off. Upon the occurrence and during the continuance
of any Event of Default, the Agent and the Banks are hereby authorized at any
time, to the fullest extent permitted by law, to set off and apply any deposits
(general or special, time or demand, provisional or final) and other
indebtedness owing by the Agent or the Banks to the account of any Guarantor
against any and all of the obligations of such Guarantor under this Agreement,
irrespective of whether or not the Agent or the Banks shall have made any demand
under this Agreement and although such obligations may be contingent and
unmatured. The Agent and the Banks agree promptly to notify each Guarantor
affected by any such set-off after any such set-off and application made by the
Agent or the Banks provided that the failure to give such notice shall not
affect the validity of such set-off and application. The rights of the Agent and
the Banks under this Section 10.04 are in addition to other rights and remedies
(including, without limitation, other rights of set-off) which the Agent and the
Banks may have.

         10.05. Continuing Guaranty; Transfer of Interest. This Agreement shall
create a continuing guaranty and shall (a) remain in full force and effect until
payment in full and termination of the Guaranteed Obligations, (b) be binding
upon each Guarantor, its successors, and assigns, and (c) inure, together with
the rights and remedies of the Agent hereunder, to the benefit of the Agent, the
Banks and their respective successors, transferees and assigns. Without limiting
the generality of the foregoing clause, when any Bank assigns or otherwise
transfers any interest held by it under the Credit Agreement or other Credit
Document to any other Person pursuant to the terms of the Credit Agreement or
other Credit Document, that other Person shall thereupon become vested with all
the benefits held by such Bank under this Agreement. Subject to Section 5, upon
the payment in full and termination of the Guaranteed Obligations, the
guaranties granted hereby shall terminate and all rights hereunder shall revert
to each Guarantor to the extent such rights have not been applied pursuant to
the terms hereof. Subject to Section 5, upon any such termination, the Agent
will, at each Guarantor's expense, execute and deliver to such Guarantor such
documents as such Guarantor shall reasonably request and take any other actions
reasonably requested to evidence or effect such termination.

Exhibit D to Credit Agreement - Page 6
<PAGE>

         10.06. Governing Law. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Texas. Each
Guarantor hereby irrevocably submits to the jurisdiction of any Texas state or
federal court sitting in Dallas, Texas in any action or proceeding arising out
of or relating to this Agreement and the other Credit Documents, and such
Guarantor hereby irrevocably agrees that all claims in respect of such action or
proceeding may be heard and determined in such court. Each Guarantor hereby
irrevocably waives, to the fullest extent it may effectively do so, any right it
may have to the defense of an inconvenient forum to the maintenance of such
action or proceeding. Each Guarantor hereby agrees that service of copies of the
summons and complaint and any other process which may be served in any such
action or proceeding may be made by mailing or delivering a copy of such process
to such Guarantor at its address specified below. Each Guarantor 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 Section 10.06 shall affect the rights of any
Bank or the Agent to serve legal process in any other manner permitted by the
law or affect the right of any Bank or the Agent to bring any action or
proceeding against any Guarantor or its Property in the courts of any other
jurisdiction.

         10.07. WAIVERS OF JURY TRIAL. EACH GUARANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL PROCEEDING RELATING TO THIS
AGREEMENT OR ANY OTHER CREDIT DOCUMENT TO WHICH IT IS A PARTY OR TO ANY
COUNTERCLAIM THEREIN.

         10.08. Binding Arbitration.

                  (a) Arbitration. The Guarantors and the Agent agree, upon
         demand, to submit to binding arbitration all claims, disputes and
         controversies between or among them (and their respective employees,
         officers, directors, attorneys and other agents), whether in tort,
         contract or otherwise arising out of or relating to in any way this
         Agreement or the Credit Documents and their negotiation, execution,
         collateralization, administration, repayment, modification, extension,
         substitution, formation, inducement, enforcement, default or
         termination.

                  (b) Governing Rules. Any arbitration proceeding will (i)
         proceed in a location in Texas selected by the American Arbitration
         Association ("AAA"); (ii) be governed by the Federal Arbitration Act
         (Title 9 of the United States Code), notwithstanding any conflicting
         choice of law provision in any of the documents between the parties;
         and (iii) be conducted by the AAA, or such other administrator as the
         parties shall mutually agree upon, in accordance with the AAA's
         commercial dispute resolution procedures, unless the claim or
         counterclaim is at least $1,000,000.00 exclusive of claimed interest,
         arbitration fees and costs in which case the arbitration shall be
         conducted in accordance with the AAA's optional procedures for large,
         complex commercial disputes (the commercial dispute resolution
         procedures or the optional procedures for large, complex commercial
         disputes to be referred to, as applicable, as the "Rules"). If there is
         any

Exhibit D to Credit Agreement - Page 7
<PAGE>

         inconsistency between the terms hereof and the Rules, the terms and
         procedures set forth herein shall control. Any Person who fails or
         refuses to submit to arbitration following a demand by any other Person
         shall bear all costs and expenses incurred by such other Person in
         compelling arbitration of any dispute. Nothing contained herein shall
         be deemed to be a waiver by any Person that is a bank of the
         protections afforded to it under 12 U.S.C. Section 91 or any similar
         applicable state law.

                  (c) No Waiver of Provisional Remedies, Self-Help and
         Foreclosure. The arbitration requirement does not limit the right of
         any Person to (i) foreclose against real or personal property
         collateral; (ii) exercise self-help remedies relating to collateral or
         proceeds of collateral such as setoff or repossession; or (iii) obtain
         provisional or ancillary remedies such as replevin, injunctive relief,
         attachment or the appointment of a receiver, before during or after the
         pendency of any arbitration proceeding. This exclusion does not
         constitute a waiver of the right or obligation of any Person to submit
         any dispute to arbitration or reference hereunder, including those
         arising from the exercise of the actions detailed in clauses (i), (ii)
         and (iii) of this Section 10.08(c) .

                  (d) Arbitrator Qualifications and Powers. Any arbitration
         proceeding in which the amount in controversy is $5,000,000.00 or less
         will be decided by a single arbitrator selected according to the Rules,
         and who shall not render an award of greater than $5,000,000.00. Any
         dispute in which the amount in controversy exceeds $5,000,000.00 shall
         be decided by majority vote of a panel of three arbitrators; provided
         however, that all three arbitrators must actively participate in all
         hearings and deliberations. The arbitrator will be a neutral attorney
         licensed in the State of Texas with a minimum of ten years experience
         in the substantive law applicable to the subject matter of the dispute
         to be arbitrated. The arbitrator will determine whether or not an issue
         is arbitratable and will give effect to the statutes of limitation in
         determining any claim. In any arbitration proceeding the arbitrator
         will decide (by documents only or with a hearing at the arbitrator's
         discretion) any pre-hearing motions which are similar to motions to
         dismiss for failure to state a claim or motions for summary
         adjudication. The arbitrator shall resolve all disputes in accordance
         with the substantive law of Texas and may grant any remedy or relief
         that a court of such state could order or grant within the scope hereof
         and such ancillary relief as is necessary to make effective any award.
         The arbitrator shall also have the power to award recovery of all costs
         and fees, to impose sanctions and to take such other action as the
         arbitrator deems necessary to the same extent a judge could pursuant to
         the Federal Rules of Civil Procedure, the Texas Rules of Civil
         Procedure or other applicable law. Judgment upon the award rendered by
         the arbitrator may be entered in any court having jurisdiction. The
         institution and maintenance of an action for judicial relief or pursuit
         of a provisional or ancillary remedy shall not constitute a waiver of
         the right of any Person, including the plaintiff, to submit the
         controversy or claim to arbitration if any other Person contests such
         action for judicial relief.

                  (e) Discovery. In any arbitration proceeding discovery will be
         permitted in accordance with the Rules. All discovery shall be
         expressly limited to matters directly relevant to the dispute being
         arbitrated and must be completed no later than 20 days before the
         hearing date and within 180 days of the filing of the dispute with the
         AAA.

Exhibit D to Credit Agreement - Page 8
<PAGE>

         Any requests for an extension of the discovery periods, or any
         discovery disputes, will be subject to final determination by the
         arbitrator upon a showing that the request for discovery is essential
         for the such Person's presentation and that no alternative means for
         obtaining information is available.

                  (f) Class Proceedings and Consolidations. The resolution of
         any dispute arising pursuant to the terms of this Agreement shall be
         determined by a separate arbitration proceeding and such dispute shall
         not be consolidated with other disputes or included in any class
         proceeding.

                  (g) Payment Of Arbitration Costs And Fees. The arbitrator
         shall award all costs and expenses of the arbitration proceeding.

                  (h) Miscellaneous. To the maximum extent practicable, the AAA,
         the arbitrators, the Guarantors and the Agent shall take all action
         required to conclude any arbitration proceeding within 180 days of the
         filing of the dispute with the AAA. No arbitrator or other Person that
         is a party to an arbitration proceeding may disclose the existence,
         content or results thereof, except for disclosures of information by a
         Person required in the ordinary course of its business or by applicable
         law or regulation. If more than one agreement for arbitration by or
         between the Guarantors and the Agent potentially applies to a dispute,
         the arbitration provision most directly related to this Agreement or
         the Credit Documents or the subject matter of the dispute shall
         control. This arbitration provision shall survive termination,
         amendment or expiration of any of the Credit Documents or any
         relationship between or among the Borrower, the Guarantors, the Agent,
         the Issuing Bank and/or the Banks.

         10.09 ENTIRE AGREEMENT. PURSUANT TO SECTION 26.02 OF THE TEXAS BUSINESS
AND COMMERCE CODE, A LOAN AGREEMENT IN WHICH THE AMOUNT INVOLVED IN THE LOAN
AGREEMENT EXCEEDS $50,000 IN VALUE IS NOT ENFORCEABLE UNLESS THE LOAN AGREEMENT
IS IN WRITING AND SIGNED BY THE PARTY TO BE BOUND OR THAT PARTY'S AUTHORIZED
REPRESENTATIVE.

         THE RIGHTS AND OBLIGATIONS OF THE PARTIES TO AN AGREEMENT SUBJECT TO
THE PRECEDING PARAGRAPH SHALL BE DETERMINED SOLELY FROM THE WRITTEN LOAN
AGREEMENT, AND ANY PRIOR ORAL AGREEMENTS BETWEEN THE PARTIES ARE SUPERSEDED BY
AND MERGED INTO THE LOAN AGREEMENT. THIS WRITTEN AGREEMENT AND THE CREDIT
DOCUMENTS, AS DEFINED IN THIS AGREEMENT, REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

         10.10 Subordination of Indebtedness and Liens. In connection with this
Agreement, each Guarantor hereby agrees as follows:

Exhibit D to Credit Agreement - Page 9
<PAGE>

         (a) The payment of any and all principal of and interest on the
Subordinated Indebtedness (as defined below) shall in all respects be
subordinate and junior in right of payment and enforcement to the prior payment
and enforcement in full of all Guaranteed Obligations as provided in this
Section 10.10. The Subordinated Indebtedness shall not be payable, and no
payment of principal, interest or other amounts on account thereof, and no
property or guaranty of any nature to secure, guarantee or pay the Subordinated
Indebtedness shall be made or given, directly or indirectly by or on behalf of
any Debtor (hereafter defined) or received, accepted, retained or applied by any
Guarantor unless and until the Guaranteed Obligations shall have been
irrevocably paid and performed in full. If any sums shall be paid to any
Guarantor or any Affiliate of a Guarantor by any Debtor or any other Person on
account of the Subordinated Indebtedness when such payment is not permitted
hereunder, such sums shall be held in trust by such Guarantor or such Affiliate
of a Guarantor for the benefit of the Agent and the Banks and shall forthwith be
delivered to the Agent without affecting the liability of such Guarantor or such
Affiliate of a Guarantor under this Agreement and may be applied by the Agent
against the Guaranteed Obligations in accordance with the Credit Agreement. Upon
the request of the Agent, each Guarantor shall execute, deliver and endorse to
the Agent such documentation as the Agent may request to perfect, preserve and
enforce its rights hereunder. For purposes of this Agreement and with respect to
each Guarantor, the term "Subordinated Indebtedness" means all indebtedness,
liabilities and obligations of the Borrower or any Subsidiary of the Borrower
other than such Guarantor (the Borrower and such Subsidiaries of the Borrower
hereinafter called the "Debtors") to such Guarantor, whether such indebtedness,
liabilities and obligations now exist or are hereafter incurred or arise, or are
primary, absolute, secondary, direct, indirect, fixed, contingent, liquidated,
unliquidated, secured or unsecured, matured or unmatured, joint, several, joint
and several, or otherwise, and irrespective of whether such indebtedness,
liabilities or obligations are evidenced by a note, contract, open account or
otherwise, and irrespective of the Person or Persons in whose favor such
indebtedness, obligations or liabilities may, at their inception, have been, or
may hereafter be created, or the manner in which they have been or may hereafter
be acquired by such Guarantor;

         (b) Any and all Liens (including any judgment Liens) upon any Debtor's
property or assets securing payment of any Subordinated Indebtedness (the
"Subordinated Liens") shall be and remain inferior and subordinate to any and
all Liens, if any exist, upon any Debtor's assets securing payment of the
Guaranteed Obligations or any part thereof, regardless of whether such
Subordinated Liens presently exist or are hereafter created or when such
Subordinated Liens were created, perfected, filed or recorded. Each Guarantor
shall not exercise or enforce any creditors' rights or remedies that it may have
against any Debtor or foreclose, repossess, sequester or otherwise institute any
action or proceeding (whether judicial or otherwise, including, without
limitation, the commencement of, or joinder in, any bankruptcy, insolvency,
reorganization, liquidation, receivership or other debtor relief law) to enforce
any Subordinated Lien on any property or assets of any Debtor unless and until
the Guaranteed Obligations shall have been irrevocably paid and performed in
full;

         (c) In the event of any receivership, bankruptcy, reorganization,
rearrangement, debtor's relief or other insolvency proceeding involving any
Debtor as debtor, the Agent shall have the right to prove and vote any claim
under the Subordinated Indebtedness and to receive directly from the receiver,
trustee or other court custodian all dividends, distributions and

Exhibit D to Credit Agreement - Page 10
<PAGE>

payments made in respect of the Subordinated Indebtedness until the Guaranteed
Obligations have been irrevocably paid and performed in full. The Agent may
apply any such dividends, distributions and payments against the Guaranteed
Obligations in accordance with the Credit Agreement;

         (d) All promissory notes, accounts receivable, ledgers, records or any
other evidence of Subordinated Indebtedness, and all mortgages, deeds of trust,
security agreements, assignments and other security documents evidencing the
Subordinated Liens, shall contain a specific written notice thereon that the
indebtedness and Liens evidenced thereby are subordinated under the terms of
this Agreement; and

         (e) The terms and provisions of this Section 10.10 are given by each
Guarantor as additional rights, remedies and benefits to any and all other
subordination agreements heretofore, concurrently herewith or hereafter executed
by such Guarantor to or in favor of the Agent or any Bank, and nothing in this
Agreement shall ever be deemed to in any way negate or replace any other such
previous, concurrent or subsequent subordination agreements.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

Exhibit D to Credit Agreement - Page 11
<PAGE>

         Each Guarantor has caused this Agreement to be duly executed as of the
date first above written.

                                    GUARANTORS:

                                    ABF CARTAGE, INC.
                                    ABF FARMS, INC.
                                    ABF FREIGHT SYSTEM, INC.
                                    ABF FREIGHT SYSTEM DE MEXICO, INC.
                                    ADVERTISING COUNSELORS, INC.
                                    AGRICULTURAL EXPRESS OF AMERICA, INC.
                                    ARKANSAS UNDERWRITERS CORPORATION
                                    BEST SERVICE CORP.
                                    CLIPPER EXXPRESS COMPANY
                                    CLIPPER FREIGHT MANAGEMENT, INC.
                                    CLIPPER GLOBAL AIR, INC.
                                    DATA-TRONICS CORP.
                                    FLEETNET AMERICA LLC
                                    LAND-MARINE CARGO, INC.
                                    TRANSPORT REALTY, INC.
                                    TREAD-ARK CORPORATION
                                    FREIGHTVALUE, INC.

                                    By:
                                        ----------------------------------------
                                    Name:
                                          --------------------------------------
                                    Title:
                                           -------------------------------------

Exhibit D to Credit Agreement - Page 12
<PAGE>

                                     ANNEX 1
                to Subsidiary Guaranty and Contribution Agreement

                       ADDRESSES OF GUARANTORS FOR NOTICES

<Table>
<Caption>

           Name of                                   Jurisdiction                 Address of
          Subsidiary                               of Incorporation             Principal Office
          ----------                               ----------------             ----------------
<S>                                                <C>                     <C>
ABF Cartage, Inc.                                       Delaware           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

ABF Farms, Inc.                                         Arkansas           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

ABF Freight System, Inc.                                Delaware           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

ABF Freight System De Mexico, Inc.                      Delaware           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

Advertising Counselors, Inc.                            Arkansas           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

Agricultural Express of America, Inc.                   Delaware           15700 West 103rd Street
                                                                           Lemont, IL 60539

Arkansas Underwriters Corporation                       Arkansas           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

Best Service Corp.                                      Delaware           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

Clipper Exxpress Company                                Delaware           15700 West 103rd Street
                                                                           Lemont, IL 60539

Clipper Freight Management, Inc.                        Arkansas           15700 West 103rd Street
                                                                           Lemont, IL 60539

Clipper Global Air, Inc.                                Arkansas           15700 West 103rd Street
                                                                           Lemont, IL 60539

Data-Tronics Corp.                                      Arkansas           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

FleetNet America LLC                                    Delaware           P.O. Box 970
                                                                           Cherryville, NC 28021

Land-Marine Cargo, Inc.                               Puerto Rico          3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

Transport Realty, Inc.                                  Arkansas           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

Tread-Ark Corporation                                   Delaware           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903

Freightvalue, Inc.                                      Arkansas           3801 Old Greenwood Road
                                                                           Fort Smith, AR 72903
</Table>

Exhibit D to Credit Agreement - Page 13
<PAGE>

                                     ANNEX 2
                to Subsidiary Guaranty and Contribution Agreement

                               ACCESSION AGREEMENT

         ___________[NAME OF SUBSIDIARY], a ________________ [corporation]
[limited liability company] (the "Company"), hereby agrees with (i) Wells Fargo
Bank Texas, National Association, as Administrative Agent (the "Agent") under
the Credit Agreement dated as of _______ __, 2002 among Arkansas Best
Corporation, a Delaware corporation which is the direct or indirect shareholder
of the Company, the lenders party thereto (as the same may be amended, restated
or otherwise modified from time to time, the "Credit Agreement"; unless
otherwise defined in this Accession Agreement, capitalized terms used herein
shall have the same meanings herein as defined in the Credit Agreement), and
(ii) the parties to the Subsidiary Guaranty and Contribution Agreement dated as
of _______ __, 2002 (as the same may be amended, restated or otherwise modified
from time to time, the "Guaranty Agreement") executed in connection with the
Credit Agreement, as follows:

         The Company hereby agrees and confirms that, as of the date hereof, it
(a) intends to be a party to the Guaranty Agreement and undertakes to guaranty
payment of the Guaranteed Obligations in accordance with the Guaranty Agreement
and to pay and perform all the indebtedness, liabilities and obligations
expressed therein of a Guarantor (as defined in the Guaranty Agreement), (b)
agrees to be bound by all of the provisions of the Guaranty as if it had been an
original party to such Guaranty, and (c) confirms that the representations and
warranties set forth in the Guaranty with respect to the Company, a party
thereto, are true and correct in all material respects as of the date of this
Accession Agreement.

         For purposes of notices under the Guaranty, the address for the Company
is as follows:

                           Attention:
                                     ------------------------
                           Telephone:
                                     ------------------------
                           Telecopy:
                                    -------------------------

         This Accession Agreement shall be governed by and construed in
accordance with the laws of the State of Texas.

         IN WITNESS WHEREOF this Accession Agreement was executed and delivered
as of the ___ day of _________, ____.

                                                [NAME OF SUBSIDIARY]

                                                By:
                                                    ----------------------------
                                                Name:
                                                      --------------------------
                                                Title:
                                                       -------------------------

Exhibit D to Credit Agreement - Page 14
<PAGE>

                                    EXHIBIT E

                     FORM OF INCREASED COMMITMENT AGREEMENT

        This INCREASED COMMITMENT AGREEMENT (this "Agreement") is dated as of
____________, ___ and entered into by and among Arkansas Best Corporation, a
Delaware corporation (the "Borrower"), each of the banks or other lending
institutions which is a signatory hereto (individually a "Supplementing Bank"
and collectively the "Supplementing Banks"), and Wells Fargo Bank Texas,
National Association, as Administrative Agent for itself and the Banks (in such
capacity, together with its successors in such capacity, the "Agent"); and is
made with reference to that certain Credit Agreement dated as of May 15, 2002
(as the same may be amended, restated, supplemented, renewed, extended or
otherwise modified, the "Credit Agreement"), by and among the Borrower, the
lenders parties thereto, Fleet National Bank and SunTrust Bank, as
Co-Syndication Agents, Wachovia Corporation, as Documentation Agent, and the
Agent, as Administrative Agent. Unless otherwise defined in this Agreement,
capitalized terms used herein shall have the same meanings herein as defined in
the Credit Agreement.

                                    RECITALS

        WHEREAS, pursuant to Section 2.17 of the Credit Agreement, the Borrower
and the Supplementing Banks are entering into this Increased Commitment
Agreement to provide for the increase of the aggregate Commitments;

        WHEREAS, the Borrower desires to increase the aggregate Commitments and
the Supplementing Banks agree to provide such increase as set forth in this
Agreement;

        NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, the parties hereto hereby agree as
follows:

         Section 1. Increase in Commitments. Subject to the terms and conditions
hereof, each Supplementing Bank severally agrees (a) to increase it Commitment
by the amount set forth opposite its name on its signature page hereto under the
heading "Increase in Commitment" and (b) that, after giving effect to this
Agreement, its total Commitment shall be the amount set forth opposite its name
on its signature page hereto under the heading "Total Commitment."

         Section 2. Conditions to Effectiveness. Section 1 of this Agreement
shall become effective only upon the satisfaction of the following conditions
precedent:

                  (i) receipt by the Agent of an opinion of counsel to the
         Borrower as to such of the matters referred to in Exhibit K to the
         Credit Agreement as such matters relate to this Agreement or are
         otherwise relevant hereto in the judgment of the Agent, dated the date
         hereof and satisfactory in form and substance to the Agent;

                  (ii) receipt by the Agent of certified copies of all corporate
         action taken by the Borrower to authorize the execution, delivery and
         performance of this Agreement; and

Exhibit E to Credit Agreement - Page 1
<PAGE>

                  (iii) receipt by the Agent of a certificate of the Secretary
         or an Assistant Secretary of the Borrower certifying the names and true
         signatures of the officers of the Borrower authorized to sign this
         Agreement and the other documents to be delivered hereunder.

         Section 3. Supplementing Banks Representations and Warranties. Each
Supplementing Bank that is not currently a Bank party to the Credit Agreement
hereby (a) confirms that it has received a copy of the Credit Agreement,
together with, (i) in the event that the date of this Agreement is prior to the
date of delivery of the initial financial statements required to be delivered
pursuant to Section 5.6(b) of the Credit Agreement, copies of the financial
statements referred to in Section 4.5 of the Credit Agreement or (ii) in the
event that the date of this Agreement is after the date of delivery of the
initial financial statements required to be delivered pursuant to Section 5.6(b)
of the Credit Agreement, copies of the most recent financial statements
delivered pursuant to Section 5.6(b) of the Credit Agreement, and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Agreement; (b) agrees that it has,
independently and without reliance upon the Agent, the Co-Syndication Agents or
any other Bank and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement; (c) agrees that it will, independently and without reliance upon the
Agent, the Co-Syndication Agents or any other Bank and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit decisions in taking or not taking action under the Credit Agreement
or any other Credit Document; (d) appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers and discretion under
the Credit Agreement as are delegated to the Agent by the terms thereof,
together with such powers and discretion as are reasonably incidental thereto;
(e) agrees that it will perform in accordance with their terms all of the
obligations which by the terms of the Credit Agreement or any other Credit
Document are required to be performed by it as a Bank; (f) specifies as its
Domestic Lending Office (and address for notices) and Eurodollar Lending Office
the offices set forth beneath its name on the signature pages hereof; (g)
attaches the forms prescribed by the Internal Revenue Service of the United
States certifying as to such Supplementing Bank's status for purposes of
determining exemption from United States withholding taxes with respect to all
payments to be made to such Supplementing Bank under the Credit Agreement and
its Notes or such other documents as are necessary to indicate that all such
payments are subject to such rates at a rate reduced by an applicable tax
treaty(1); and (h) represents that it is an Eligible Assignee.

         Section 4. Borrower Representations and Warranties. In order to induce
the Supplementing Banks to enter into this Agreement and to supplement the
Credit Agreement in the manner provided herein, the Borrower represents and
warrants to Agent and each Supplementing Bank that (a) the representations and
warranties contained in Article IV of the Credit Agreement are and will be true,
correct and complete in all material respects on and as of the date hereof and
(b) no Default or Event of Default has occurred and is continuing or will result
from the consummation of the transactions contemplated by this Agreement.

----------

(1) If such Supplementing Bank is organized under the laws of a jurisdiction
outside the United States.

Exhibit E to Credit Agreement - Page 2

<PAGE>

         Section 5. Effect of Supplement. The terms and provisions set forth in
this Agreement shall modify and supersede all inconsistent terms and provisions
set forth in the Credit Agreement and except, as expressly modified and
superseded by this Agreement, the terms and provisions of the Credit Agreement
are ratified and confirmed and shall continue in full force and effect. The
Borrower, the Agent and the Supplementing Banks hereby agree that the Credit
Agreement, as supplemented hereby, shall continue to be legal, valid, binding
and enforceable in accordance with its terms. Any and all agreements, documents
or instruments now or hereafter executed and delivered pursuant to the terms
hereof or pursuant to the terms of the Credit Agreement, as supplemented hereby,
are hereby amended so that any reference therein to the Credit Agreement shall
mean a reference to the Credit Agreement as supplemented hereby.

         Section 6. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Texas.

         Section 7. Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed an original and all
of which taken together shall constitute one and the same agreement.

         Section 8. ENTIRE AGREEMENT. THIS WRITTEN AGREEMENT AND THE CREDIT
DOCUMENTS, AS DEFINED IN THE CREDIT AGREEMENT, REPRESENT THE FINAL AGREEMENT
AMONG THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES.

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Exhibit E to Credit Agreement - Page 3
<PAGE>

                                            BORROWER:

                                            ARKANSAS BEST CORPORATION

                                            By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

                                            SUPPLEMENTING BANKS:

Increase in Commitment:                     -----------------------------

$
 ----------------------

Total Commitment:                           By
                                               ---------------------------------
$                                           Name:
 ----------------------                          -------------------------------
                                            Title:
                                                  ------------------------------

                                            Domestic Lending Office:

                                            Address:
                                                     ---------------------------

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

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

                                            Attention:
                                                      --------------------------
                                            Telecopy:
                                                     ---------------------------
                                            Telephone:
                                                      --------------------------

                                            Eurodollar Lending Office:

                                            Address:
                                                     ---------------------------

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

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

                                            Attention:
                                                      --------------------------
                                            Telecopy:
                                                     ---------------------------
                                            Telephone:
                                                      --------------------------

Exhibit E to Credit Agreement - Page 4
<PAGE>

Increase in Commitment:                     ------------------------------------

$
 ----------------------

Total Commitment:                           By
                                               ---------------------------------
$                                           Name:
 ----------------------                          -------------------------------
                                            Title:
                                                  ------------------------------

                                            Domestic Lending Office:

                                            Address:
                                                     ---------------------------

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

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

                                            Attention:
                                                      --------------------------
                                            Telecopy:
                                                     ---------------------------
                                            Telephone:
                                                      --------------------------

                                            Eurodollar Lending Office:

                                            Address:
                                                     ---------------------------

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

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

                                            Attention:
                                                      --------------------------
                                            Telecopy:
                                                     ---------------------------
                                            Telephone:
                                                      --------------------------

Exhibit E to Credit Agreement - Page 5
<PAGE>

Increase in Commitment:                     ------------------------------------

$
 ---------------------

Total Commitment:                           By
                                               ---------------------------------
$                                           Name:
 ----------------------                          -------------------------------
                                            Title:
                                                  ------------------------------

                                            Domestic Lending Office:

                                            Address:
                                                     ---------------------------

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

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

                                            Attention:
                                                      --------------------------
                                            Telecopy:
                                                     ---------------------------
                                            Telephone:
                                                      --------------------------

                                            Eurodollar Lending Office:

                                            Address:
                                                     ---------------------------

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

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

                                            Attention:
                                                      --------------------------
                                            Telecopy:
                                                     ---------------------------
                                            Telephone:
                                                      --------------------------

Exhibit E to Credit Agreement - Page 6
<PAGE>

                                            AGENT:

                                            WELLS FARGO BANK TEXAS,
                                            NATIONAL ASSOCIATION, AS THE AGENT

                                            By:
                                               ---------------------------------
                                            Name:
                                                 -------------------------------
                                            Title:
                                                  ------------------------------

Exhibit E to Credit Agreement - Page 7
<PAGE>

                                 ACKNOWLEDGEMENT

         Each Guarantor hereby: (a) consents and agrees to this Agreement; (b)
agrees that the Subsidiary Guaranty and Contribution Agreement (i.e., the
"Guaranty" as such term is defined in the Credit Agreement referred to in this
Agreement) previously executed by the undersigned is in full force and effect
and continues to be its legal, valid and binding obligation enforceable in
accordance with its terms; and (c) agrees that the indebtedness, liabilities and
obligations of the Borrower arising as a result of the increase in the aggregate
Commitments contemplated by this Agreement are "Guaranteed Obligations" as
defined in such Subsidiary Guaranty and Contribution Agreement.

                                              GUARANTORS:

                                              [LIST ALL GUARANTORS]

                                              By:
                                                 -------------------------------
                                              Name:
                                                   -----------------------------
                                              Title:
                                                    ----------------------------

Exhibit E to Credit Agreement - Page 8
<PAGE>

                                    EXHIBIT F

                               NOTICE OF BORROWING

                            As of _________ __, ____

Wells Fargo Bank Texas, National Association,
as Administrative Agent under the Credit Agreement herein described
1445 Ross Avenue, 3rd Floor
Dallas, Texas 75201

Attention: Mr. Preston L. Massey

Ladies and Gentlemen:

         Reference is made to that certain Credit Agreement dated as of May 15,
2002 (as the same may be amended, restated, supplemented, renewed, extended or
otherwise modified from time to time, the "Credit Agreement"), among Arkansas
Best Corporation (the "Borrower"), the lenders parties thereto, Fleet National
Bank and SunTrust Bank, as Co-Syndication Agents, Wachovia Corporation, as
Documentation Agent, and Wells Fargo Bank Texas, National Association, as
Administrative Agent. Unless otherwise defined in this Notice of Borrowing,
capitalized terms used herein shall have the same meanings herein as defined in
the Credit Agreement.

         The Borrower hereby gives you this Notice of Borrowing irrevocably,
pursuant to Section 2.2(a) of the Credit Agreement. The Borrower hereby requests
a Borrowing, and in connection with that request sets forth below the
information relating to such Borrowing (the "Proposed Borrowing") as required by
Section 2.2(a) of the Credit Agreement:

                  (a) The Business Day of the Proposed Borrowing is
         _____________, 200__.

                  (b) The Proposed Borrowing will be a [Revolving Borrowing]
         [Swingline Advance]. If such Proposed Borrowing is a Revolving
         Borrowing, such Borrowing will be composed of [Base Rate Advances]
         [Eurodollar Rate Advances].

                  (c) The aggregate amount of the Proposed Borrowing is
         $____________.

                  (d) The Interest Period for each Eurodollar Rate Advance made
         as part of the Proposed Borrowing is [28 days] [_____ month[s]].

Exhibit F to Credit Agreement - Page 1
<PAGE>

                  (e) The Proposed Borrowing will be made available to the
         Borrower in the following bank account:

                           Bank Name:
                                              -----------------------
                           ABA or Routing #:
                                              -----------------------
                           Account Name:
                                              -----------------------
                           Account Number:
                                              -----------------------

         The undersigned hereby certifies that the following statements are true
and correct on the date hereof, and will be true on the date of the Proposed
Borrowing:

                  (i) in the representations and warranties contained in the
         Credit Agreement, in Section 7 of the Guaranty, in the Foreign Stock
         Pledge Agreement, if any have been previously executed, and in the
         other Credit Documents are correct in all material respects, before and
         after giving effect to the Proposed Borrowing and the application of
         the proceeds therefrom, as though made on the date of the Proposed
         Borrowing;

                  (ii) no Default has occurred and is continuing or would result
         from such Proposed Borrowing or from the application of the proceeds
         therefrom; and

                  (iii) no Material Adverse Change has occurred.

                                          Very truly yours,

                                          ARKANSAS BEST CORPORATION

                                          By:
                                             -----------------------------------
                                          Name:
                                               ---------------------------------
                                          Title:  Chief Financial Officer

Exhibit F to Credit Agreement - Page 2
<PAGE>

                                    EXHIBIT G

                      NOTICE OF CONVERSION OR CONTINUATION

                           As of ___________ __, 200_

Wells Fargo Bank Texas, National Association,
as Administrative Agent under the Credit Agreement herein described
1445 Ross Avenue, 3rd Floor
Dallas, Texas 75201

Attention:  Mr. Preston L. Massey

Ladies and Gentlemen:

         Reference is made to that certain Credit Agreement dated as of May 15,
2002 (as the same may be amended, restated, supplemented, renewed, extended or
otherwise modified from time to time, the "Credit Agreement"), among the
Arkansas Best Corporation (the "Borrower"), the lenders parties thereto, Fleet
National Bank and SunTrust Bank, as Co-Syndication Agents, Wachovia Corporation,
as Documentation Agent, and Wells Fargo Bank Texas, National Association, as
Administrative Agent. Unless otherwise defined in this notice, capitalized terms
used herein shall have the same meanings herein as defined in the Credit
Agreement.

         The Borrower hereby gives you this Notice of Conversion or Continuation
(the "Notice") irrevocably, pursuant to Section 2.2(b) of the Credit Agreement.
The Borrower hereby requests a Conversion or continuation of an outstanding
Borrowing, and in connection with that request sets forth below the information
relating to such Conversion or continuation (the "Proposed Action") as required
by Section 2.2(b) of the Credit Agreement:

                  (a) The Business Day of the Proposed Action is ___________,
         ____.

                  (b) After giving effect to the Proposed Action, the
         outstanding Borrowing will be a composed of [Base Rate Advances]
         [Eurodollar Rate Advances].

                  (c) The aggregate amount of the outstanding Borrowing to be
         Converted or continued is $ _______ and presently consists of [Base
         Rate Advances] [Eurodollar Rate Advances].

Exhibit G to Credit Agreement - Page 1
<PAGE>

                  (d) The Proposed Action consists of [a Conversion to [Base
         Rate Advances] [Eurodollar Rate Advances]] [a continuation of [Base
         Rate Advances] [Eurodollar Rate Advances]].

                  (e) The Interest Period for each Eurodollar Rate Advance made
         as part of the Proposed Action is [28 days][____ month[s]].

                                                  Very truly yours,

                                                  ARKANSAS BEST CORPORATION

                                                  By:
                                                      --------------------------
                                                  Name:
                                                       -------------------------
                                                  Title: Chief Financial Officer

Exhibit G to Credit Agreement - Page 2
<PAGE>

                                    EXHIBIT H

                             FORM OF REVOLVING NOTE

$                                                                   May 15, 2002
  ------------------------

         For value received, the undersigned Arkansas Best Corporation, a
Delaware corporation (the "Borrower"), hereby promises to pay to the order of
_________________________ (the "Bank") the principal amount of _______________
and ____/100 Dollars ($       ) or, if less, the aggregate outstanding principal
amount of each Revolving Advance (as defined in the Credit Agreement referred to
below) made or deemed to be made by the Bank to the Borrower, together with
interest on the unpaid principal amount of each such Revolving Advance from the
date of such Revolving Advance until such principal amount is paid in full, at
such interest rates, and at such times, as are specified in the Credit
Agreement.

         This Note is one of the Revolving Notes referred to in, and is entitled
to the benefits of, and is subject to the terms of, the Credit Agreement dated
as of May 15, 2002 (as the same may be amended, restated, supplemented, renewed,
extended or otherwise modified from time to time, the "Credit Agreement"), among
the Borrower, the lenders parties thereto, Fleet National Bank and SunTrust
Bank, as Co-Syndication Agents, Wachovia Corporation, as Documentation Agent,
and Wells Fargo Bank Texas, National Association, as Administrative Agent.
Unless otherwise defined in this Note, capitalized terms used herein shall have
the same meanings herein as defined in the Credit Agreement. The holder of this
Note shall be entitled to, without limitation, the benefits provided in the
Credit Agreement as set forth herein. The Credit Agreement, among other things,
(a) provides for the making of Revolving Advances by the Bank to the Borrower
from time to time in an aggregate amount not to exceed at any time outstanding
the Dollar amount first above mentioned, the indebtedness of the Borrower
resulting from each such Revolving Advance being evidenced by this Note, and (b)
contains provisions for acceleration of the maturity of this Note upon the
happening of certain events stated in the Credit Agreement and for prepayments
of principal prior to the maturity of this Note upon the terms and conditions
specified in the Credit Agreement.

         Both principal and interest are payable in lawful money of the United
States of America to the Agent at 1445 Ross Avenue, 3rd Floor, Dallas, Texas
75201 (or at such other location or address as may be specified by the Agent to
the Borrower) in same day funds. The Agent and/or the Bank shall record all
Revolving Advances and payments of principal made under this Note, but no
failure of the Agent and/or the Bank to make such recordings shall affect the
Borrower's repayment obligations under this Note.

         Except as specifically provided in the Credit Agreement, the Borrower
and each surety, guarantor, endorser and other party liable for payment of any
sums of money payable on this Note hereby jointly and severally waive notice,
presentment, demand for payment, protest, notice of protest and non-payment or
dishonor, notice of intent to accelerate, notice of acceleration,

Exhibit H to Credit Agreement - Page 1

<PAGE>

notice of intent to demand, any other notice of any kind, diligence in
collecting, grace and all other formalities of any kind, and consent to all
extensions without notice for any period or periods of time and partial
payments, before or after maturity, and any impairment of any collateral
securing this Note, all without prejudice to the holder of this Note. No failure
to exercise, and no delay in exercising, any rights hereunder on the part of the
holder of this Note shall operate as a waiver of such rights.

                  THIS NOTE, TOGETHER WITH THE OTHER CREDIT DOCUMENTS, REPRESENT
THE FINAL AGREEMENT OF THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND
THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES.

         This Note shall be governed by, and construed and enforced in
accordance with, the laws of the state of Texas (except that Tex. Finance Code,
Chapter 346, which regulates certain revolving credit loan accounts shall not
apply to this Note).

                                                  ARKANSAS BEST CORPORATION

                                                  By:
                                                     ---------------------------
                                                  Name:
                                                       -------------------------
                                                  Title:
                                                        ------------------------

Exhibit H to Credit Agreement - Page 2
<PAGE>

                                    EXHIBIT I

                             FORM OF SWINGLINE NOTE

$15,000,000                                                         May 15, 2002

         For value received, the undersigned Arkansas Best Corporation, a
Delaware corporation (the "Borrower"), hereby promises to pay to the order of
Wells Fargo Bank Texas, National Association (the "Bank") the principal amount
of Fifteen Million and No/100 Dollars ($15,000,000) or, if less, the aggregate
outstanding principal amount of each Swingline Advance (as defined in the Credit
Agreement referred to below) made by the Bank to the Borrower, together with
interest on the unpaid principal amount of each such Swingline Advance from the
date of such Swingline Advance until such principal amount is paid in full, at
such interest rates, and at such times, as are specified in the Credit
Agreement.

         This Note is the Swingline Note referred to in, and is entitled to the
benefits of, and is subject to the terms of, the Credit Agreement dated as of
May 15, 2002 (as the same may be amended, restated, supplemented, renewed,
extended or otherwise modified from time to time, the "Credit Agreement"), among
the Borrower, the lenders parties thereto, Fleet National Bank and SunTrust
Bank, as Co-Syndication Agents, Wachovia Corporation, as Documentation Agent,
and Wells Fargo Bank Texas, National Association, as Administrative Agent.
Unless otherwise defined in this Note, capitalized terms used herein shall have
the same meanings herein as defined in the Credit Agreement. The holder of this
Note shall be entitled to, without limitation, the benefits provided in the
Credit Agreement as set forth herein. The Credit Agreement, among other things,
(a) provides for the making of Swingline Advances by the Bank to the Borrower
from time to time at the discretion of the Bank in an aggregate amount not to
exceed at any time outstanding the Dollar amount first above mentioned, the
indebtedness of the Borrower resulting from each such Swingline Advance being
evidenced by this Note, and (b) contains provisions for acceleration of the
maturity of this Note upon the happening of certain events stated in the Credit
Agreement and for prepayments of principal prior to the maturity of this Note
upon the terms and conditions specified in the Credit Agreement.

         Both principal and interest are payable in lawful money of the United
States of America to the Bank at 1445 Ross Avenue, 3rd Floor, Dallas, Texas
75201 (or at such other location or address as may be specified by the Agent to
the Borrower) in same day funds. The Bank shall record all Swingline Advances
and payments of principal made under this Note, but no failure of the Bank to
make such recordings shall affect the Borrower's repayment obligations under
this Note.

Exhibit I to Credit Agreement - Page 1

<PAGE>

         Except as specifically provided in the Credit Agreement, the Borrower
and each surety, guarantor, endorser and other party liable for payment of any
sums of money payable on this Note hereby jointly and severally waive notice,
presentment, demand for payment, protest, notice of protest and non-payment or
dishonor, notice of intent to accelerate, notice of acceleration, notice of
intent to demand, any other notice of any kind, diligence in collecting, grace
and all other formalities of any kind, and consent to all extensions without
notice for any period or periods of time and partial payments, before or after
maturity, and any impairment of any collateral securing this Note, all without
prejudice to the holder of this Note. No failure to exercise, and no delay in
exercising, any rights hereunder on the part of the holder of this Note shall
operate as a waiver of such rights.

         THIS NOTE, TOGETHER WITH THE OTHER CREDIT DOCUMENTS, REPRESENT THE
FINAL AGREEMENT OF THE PARTIES RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE
PARTIES.

         This Note shall be governed by, and construed and enforced in
accordance with, the laws of the state of Texas (except that Tex. Finance Code,
Chapter 346, which regulates certain revolving credit loan accounts shall not
apply to this Note).

                                              ARKANSAS BEST CORPORATION

                                              By:
                                                 -------------------------------
                                              Name:
                                                   -----------------------------
                                              Title:
                                                    ----------------------------

Exhibit I to Credit Agreement - Page 2
<PAGE>
                                    EXHIBIT J

                           WITHHOLDING TAX CERTIFICATE

         Reference is made to that certain Credit Agreement dated as of May 15,
2002, among Arkansas Best Corporation (the "Borrower"), the lenders parties
thereto (the "Banks"), Fleet National Bank and SunTrust Bank, as Co-Syndication
Agents, Wachovia Corporation, as Documentation Agent, and Wells Fargo Bank
Texas, National Association, as administrative agent for the Banks (the "Agent")
(as the same may be amended, restated, supplemented, renewed, extended or
otherwise modified from time to time, the "Credit Agreement"). Unless otherwise
defined herein, capitalized terms used herein shall have the meanings herein as
defined in the Credit Agreement. ______________________ (the "Non-U.S. Bank") is
providing this certificate pursuant to Section 2.11(e) of the Credit Agreement.
The Non-U.S. Bank hereby represents and warrants that:

         1. The Non-U.S. Bank is the sole record and beneficial owner of the
Commitment and Advances in respect of which it is providing this certificate.

         2. The Non-U.S. Bank is not a "bank" for purposes of Section
881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the "Code"). In
this regard, the Non-U.S. Bank further represents and warrants that:

                  (a) the Non-U.S. Bank is not subject to regulatory or other
         legal requirements as a bank in any jurisdiction; and

                  (b) the Non-U.S. Bank has not been treated as a bank for
         purposes of any tax, securities law or other filing or submission made
         to any Governmental Authority, any application made to a rating agency
         or qualification for any exemption from tax, securities law or other
         legal requirements.

         3. The Non-U.S. Bank is not a 10-percent shareholder of the Borrower
within the meaning of Section 881(c)(3)(B) of the Code.

         4. The Non-U.S. Bank is not a controlled foreign corporation receiving
interest from a related person within the meaning of Section 881(c)(3)(C) of the
Code.

         IN WITNESS WHEREOF, the undersigned has duly executed this certificate.

                                      [NAME OF NON-U.S. BANK]

                                      By:
                                               ---------------------------------
                                      Name:
                                               ---------------------------------
                                      Title:
                                               ---------------------------------

                                      Date:
                                             --------------------

EXHIBIT J to Credit Agreement
<PAGE>
                                    EXHIBIT K

                FORM OF BORROWER'S/GUARANTORS' COUNSEL OPINION

May 15, 2002

To Each of the Banks Party to the Credit
Agreement and Wells Fargo Bank Texas,
National Association, as administrative
agent for the Banks

Ladies and Gentlemen:

         I have acted as counsel to Arkansas Best Corporation, a Delaware
corporation (the "Borrower"), and the Guarantors in connection with the Credit
Agreement dated as of May 15, 2002 (the "Credit Agreement"), among the Borrower,
the lending institutions party thereto (the "Banks"), Fleet National Bank and
SunTrust Bank, as Co-Syndication Agents, Wachovia Corporation, as Documentation
Agent, and Wells Fargo Bank Texas, National Association, as administrative agent
for the Banks (the "Agent"). I have been requested to render this opinion
pursuant to Section 3.1(a)(iv) of the Credit Agreement. Unless otherwise defined
herein, capitalized terms used herein shall have the same meanings herein as
defined in the Credit Agreement. For purposes of this opinion, the Borrower and
the Guarantors are collectively referred to as the "Loan Parties".

         In connection with this opinion, I have examined and relied upon the
originals, or copies certified or otherwise identified to my satisfaction, of
such corporate documents and records of the Loan Parties and have received such
information from officers and representatives of the Loan Parties as I have
deemed necessary or appropriate to enable me to express the opinions expressed
below. I have also relied on certificates of officers of the Loan Parties and
certificates of public officials as to certain factual matters. For purposes of
this opinion, I have also examined each of the Credit Documents.

         In rendering my opinion, I have assumed (a) the genuineness of all
signatures, (b) the authenticity of all documents submitted to me as originals,
(c) the conformity to authentic original documents of all documents submitted to
me as certified, conformed or photostatic copies, and (d) the due authorization,
execution and delivery of all documents referred to herein by the parties
thereto other than the Loan Parties.

<PAGE>

         Based on the foregoing and subject to the further assumptions,
qualifications and limitations set forth below, and as may be disclosed in the
Credit Documents, I am of the opinion that:

1.       Each of the Loan Parties is a corporation duly incorporated or limited
         liability company duly organized, validly existing and in good standing
         under the laws of the jurisdictions of its incorporation or
         organization (as applicable).

2.       Each of the Loan Parties has the requisite power to own or hold under
         lease its assets and to carry on its businesses as now being conducted
         and as proposed to be conducted.

3.       Each of the Loan Parties is duly qualified as a foreign entity and is
         authorized to do business in each jurisdiction where the character of
         the properties owned or held under lease by it or the nature of the
         business transacted by it makes such qualification necessary and where
         failure to so qualify would have a material adverse effect on the
         business, operations or financial condition of any of the Loan Parties.

4.       To my knowledge after due inquiry, there are no legal or arbitral
         proceedings or any proceedings by or before any governmental or
         regulatory authority or agency, now pending or threatened against or
         affecting any of the Loan Parties or the rights of any of the Loan
         Parties which could reasonably be expected to have a material adverse
         effect on the financial condition, operations or business of any of the
         Loan Parties or the ability of any of the Loan Parties to perform its
         respective obligations under the Credit Documents.

5.       None of (a) the execution and delivery of the Credit Documents, (b) the
         consummation of the transactions therein contemplated, or (c)
         compliance with the terms and provisions thereof will (i) violate or
         result in a breach of, or require any consent under, the certificate or
         articles, as the case may be, of incorporation or organization or
         bylaws or other constitutional document of any of the Loan Parties, or
         any law or regulation applicable to any of the Loan Parties, or any of
         their respective properties, or any order, writ, injunction or decree
         of any court or Governmental Authority or agency known to us after due
         inquiry, (ii) violate or result in a breach of or a default under any
         material agreement, document or instrument to which any of the Loan
         Parties is a party or by which any of the Loan Parties or their
         respective properties are bound, known to us after due inquiry (a
         "Material Contract"), or (iii) except for the Liens permitted by the
         Agreement, result in the creation or imposition of any Lien upon any of
         the revenues or assets of any of the Loan Parties pursuant to the terms
         of any such Material Contract.

6.       Each of the Loan Parties has all necessary power and authority to
         execute, deliver and perform its respective obligations under the
         Credit Documents to which it is a party, and the execution, delivery
         and performance by each of the Loan Parties of the Credit

<PAGE>

         Documents to which it is a party and the obligations thereunder have
         been duly authorized by all necessary action.

7.       Each of the Credit Documents to which any Loan Party is a party have
         been duly and validly executed and delivered by such Loan Party and
         constitutes the legal, valid and binding obligations of such Loan Party
         enforceable against it in accordance with their respective terms,
         except that the enforceability thereof may be limited (a) by
         bankruptcy, insolvency, reorganization, fraudulent conveyance or
         moratorium or other similar laws relating to the enforcement of
         creditors' rights generally and (b) by general principles of equity
         (regardless of whether such enforceability is considered in a
         proceeding in equity or at law).

8.       No authorizations, approvals or consents of, or filings or
         registrations with, any governmental or regulatory authority or agency
         are necessary for the execution, delivery or performance by any of the
         Loan Parties of the Credit Documents to which it is a party, except for
         authorizations, consents and approvals that have already been obtained
         and filings which have already been made.

9.       Neither the Borrower nor any of its Subsidiaries is engaged
         principally, or as one of its important activities, in the business of
         extending credit for the purpose of purchasing or carrying margin stock
         (within the meaning of Regulation U or X of the Board of Governors of
         the Federal Reserve System).

10.      Neither the Borrower nor any of its Subsidiaries is an "investment
         company" or a company "controlled" by an "investment company" within
         the meaning of the Investment Company Act of 1940, as amended.

11.      Neither the Borrower nor any of its Subsidiaries is a "holding company"
         or a "subsidiary of a holding company" or an "affiliate" of a "holding
         company" or a "public utility" within the meaning of the Public Utility
         Holding Company Act of 1935, as amended.

         The opinions expressed herein are as of the date hereof only, and I
assume no obligation to update or supplement such opinions to reflect any fact
or circumstance that may hereafter come to my attention or any change in law
that may occur or become effective.

         The foregoing opinion is, with your concurrence, predicated upon and
qualified in its entirety by the following:

         I am a member of the Bar of the State of Arkansas, and I express no
         opinion as to the laws of any jurisdiction, other than the Federal Laws
         of the United States of America, the Laws of the State of Arkansas, and
         the Delaware General Corporation Law. Insofar as the foregoing opinion

<PAGE>

         involves agreements that purport to be governed by Texas or other
         states' laws, I have assumed that such law is the same as the Law of
         the State of Arkansas.

         This opinion is solely for your benefit and may not be relied upon by
any person other than you and your counsel and any of your assignees and
participants.

Very truly yours,

Richard F. Cooper<PAGE>

                                                                    EXHIBIT 4.20

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

                             FLEMING COMPANIES, INC.

                    9 7/8% SENIOR SUBORDINATED NOTES DUE 2012

                                   ----------

                                    INDENTURE

                           Dated as of April 15, 2002

                                   ----------

                     MANUFACTURERS AND TRADERS TRUST COMPANY

                                     Trustee

                                   ----------

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

<PAGE>

                             CROSS-REFERENCE TABLE*

<Table>
<Caption>
Trust Indenture
Act Section                                                                               Indenture Section
<S>                                                                                       <C>
310(a)(1)........................................................................                7.10
   (a)(2)........................................................................                7.10
   (a)(3)........................................................................                N.A.
   (a)(4)........................................................................                N.A.
   (a)(5)........................................................................                7.10
   (b)...........................................................................                7.10
   (c)...........................................................................                N.A.
311(a)...........................................................................                7.11
   (b)...........................................................................                7.11
   (c)...........................................................................                N.A.
312(a)...........................................................................                2.05
   (b)...........................................................................               13.03
   (c)...........................................................................               13.03
313(a)...........................................................................                7.06
   (b)(2)........................................................................                7.07
   (c)...........................................................................            7.06; 13.02
   (d)...........................................................................                7.06
314(a)...........................................................................            4.03; 13.02
   (c)(1)........................................................................               13.04
   (c)(2)........................................................................               13.04
   (c)(3)........................................................................                N.A.
   (e)...........................................................................               13.05
   (f)...........................................................................                N.A.
315(a)...........................................................................                7.01
   (b)...........................................................................            7.05; 13.02
   (c)...........................................................................                7.01
   (d)...........................................................................                7.01
   (e)...........................................................................                6.11
316(a) (last sentence)...........................................................                2.09
   (a)(1)(A).....................................................................                6.05
   (a)(1)(B).....................................................................                6.04
   (a)(2)........................................................................                N.A.
   (b)...........................................................................                6.07
   (c)...........................................................................                2.13
317(a)(1)........................................................................                6.08
   (a)(2)........................................................................                6.09
   (b)...........................................................................                2.04
318(a)...........................................................................               13.01
   (b)...........................................................................                N.A.
   (c)...........................................................................               13.01
</Table>

N.A. means not applicable.

* This Cross Reference Table is not part of the Indenture.

<PAGE>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                            Page
<S>                                                                                                         <C>
                                                   ARTICLE 1.
                                   DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.     Definitions.................................................................................1
Section 1.02.     Other Definitions..........................................................................26
Section 1.03.     Incorporation by Reference of Trust Indenture Act..........................................27
Section 1.04.     Rules of Construction......................................................................27

                                                   ARTICLE 2.
                                                    THE NOTES

Section 2.01.     Form and Dating............................................................................28
Section 2.02.     Execution and Authentication...............................................................29
Section 2.03.     Registrar and Paying Agent.................................................................29
Section 2.04.     Paying Agent to Hold Money in Trust........................................................29
Section 2.05.     Holder Lists...............................................................................30
Section 2.06.     Transfer and Exchange......................................................................30
Section 2.07.     Replacement Notes..........................................................................42
Section 2.08.     Outstanding Notes..........................................................................43
Section 2.09.     Treasury Notes.............................................................................43
Section 2.10.     Temporary Notes............................................................................43
Section 2.11.     Cancellation...............................................................................43
Section 2.12.     Defaulted Interest.........................................................................44
Section 2.13.     Record Date................................................................................44
Section 2.14.     CUSIP Numbers..............................................................................44

                                                   ARTICLE 3.
                                            REDEMPTION AND PREPAYMENT

Section 3.01.     Notices to Trustee.........................................................................44
Section 3.02.     Selection of Notes to Be Redeemed..........................................................44
Section 3.03.     Notice of Redemption.......................................................................45
Section 3.04.     Effect of Notice of Redemption.............................................................46
Section 3.05.     Deposit of Redemption Price................................................................46
Section 3.06.     Notes Redeemed in Part.....................................................................46
Section 3.07.     Optional Redemption........................................................................46
Section 3.08.     Mandatory Redemption.......................................................................47
Section 3.09.     Offer to Purchase by Application of Excess Proceeds........................................47
</Table>

                                       -i-
<PAGE>

<Table>
<Caption>
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<S>                                                                                                         <C>
                                                   ARTICLE 4.
                                                    COVENANTS

Section 4.01.     Payment of Notes...........................................................................49
Section 4.02.     Maintenance of Office or Agency............................................................49
Section 4.03.     Reports....................................................................................49
Section 4.04.     Compliance Certificate.....................................................................50
Section 4.05.     Taxes......................................................................................51
Section 4.06.     Stay, Extension and Usury Laws.............................................................51
Section 4.07.     Restricted Payments........................................................................51
Section 4.08.     Dividend and Other Payment Restrictions Affecting Subsidiaries.............................54
Section 4.09.     Incurrence of Indebtedness.................................................................55
Section 4.10.     Asset Sales................................................................................56
Section 4.11.     Transactions with Affiliates...............................................................57
Section 4.12.     Liens......................................................................................57
Section 4.13.     Corporate Existence........................................................................58
Section 4.14.     Offer to Repurchase Upon Change of Control.................................................58
Section 4.15.     Limitation on Issuances and Sales of Capital Stock of Subsidiaries.........................60
Section 4.16.     Payments for Consent.......................................................................60
Section 4.17.     Additional Guarantees......................................................................61
Section 4.18.     Termination of Certain Covenants In Event of Investment Grade Rating.......................61
Section 4.19.     Registration Rights........................................................................61
Section 4.20.     Additional Interest........................................................................62
Section 4.21.     Limitation on Layering Indebtedness........................................................62

                                                   ARTICLE 5.
                                                   SUCCESSORS

Section 5.01.     Merger, Consolidation, or Sale of Assets...................................................62
Section 5.02.     Successor Corporation Substituted..........................................................63

                                                   ARTICLE 6.
                                              DEFAULTS AND REMEDIES

Section 6.01.     Events of Default..........................................................................64
Section 6.02.     Acceleration...............................................................................66
Section 6.03.     Other Remedies.............................................................................67
Section 6.04.     Waiver of Past Defaults....................................................................67
Section 6.05.     Control by Majority........................................................................67
Section 6.06.     Limitation on Suits........................................................................67
Section 6.07.     Rights of Holders of Notes to Receive Payment..............................................68
Section 6.08.     Collection Suit by Trustee.................................................................68
Section 6.09.     Trustee May File Proofs of Claim...........................................................68
Section 6.10.     Priorities.................................................................................68
Section 6.11.     Undertaking for Costs......................................................................69
</Table>

                                      -ii-
<PAGE>

<Table>
<Caption>
                                                                                                            Page
<S>                                                                                                         <C>
                                                   ARTICLE 7.
                                                     TRUSTEE

Section 7.01.     Duties of Trustee..........................................................................69
Section 7.02.     Rights of Trustee..........................................................................70
Section 7.03.     Individual Rights of Trustee...............................................................71
Section 7.04.     Trustee's Disclaimer.......................................................................71
Section 7.05.     Notice of Defaults.........................................................................71
Section 7.06.     Reports by Trustee to Holders of the Notes.................................................71
Section 7.07.     Compensation and Indemnity.................................................................71
Section 7.08.     Replacement of Trustee.....................................................................72
Section 7.09.     Successor Trustee by Merger, etc...........................................................73
Section 7.10.     Eligibility; Disqualification..............................................................73
Section 7.11.     Preferential Collection of Claims Against Company..........................................74

                                                   ARTICLE 8.
                                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01.     Option to Effect Legal Defeasance or Covenant Defeasance...................................74
Section 8.02.     Legal Defeasance and Discharge.............................................................74
Section 8.03.     Covenant Defeasance........................................................................74
Section 8.04.     Conditions to Legal or Covenant Defeasance.................................................75
Section 8.05.     Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous
                     Provisions..............................................................................76
Section 8.06.     Repayment to Company.......................................................................76
Section 8.07.     Reinstatement..............................................................................77

                                                   ARTICLE 9.
                                        AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01.     Without Consent of Holders of Notes........................................................77
Section 9.02.     With Consent of Holders of Notes...........................................................78
Section 9.03.     Compliance with Trust Indenture Act........................................................79
Section 9.04.     Revocation and Effect of Consents..........................................................79
Section 9.05.     Notation on or Exchange of Notes...........................................................80
Section 9.06.     Trustee to Sign Amendments, etc............................................................80

                                                   ARTICLE 10.
                                             SUBORDINATION OF NOTES

Section 10.01.    Notes Subordinate to Senior Indebtedness...................................................80
Section 10.02.    Payment Over of Proceeds Upon Dissolution, etc.............................................80
Section 10.03.    Suspension of Payment When Senior Indebtedness in Default..................................81
</Table>

                                      -iii-
<PAGE>

<Table>
<Caption>
                                                                                                            Page
<S>                                                                                                         <C>
Section 10.04.    Payment Permitted if No Default............................................................82
Section 10.05.    Subrogation to Rights of Holders of Senior Indebtedness....................................82
Section 10.06.    Provisions Solely to Define Relative Rights................................................82
Section 10.07.    Trustee to Effectuate Subordination........................................................82
Section 10.08.    No Waiver of Subordination Provisions......................................................83
Section 10.09.    Notice to Trustee..........................................................................83
Section 10.10.    Reliance on Judicial Order or Certificate of Liquidating Agent.............................84
Section 10.11.    Rights of Trustee As a Holder of Senior Indebtedness; Preservation of Trustee's Rights.....84
Section 10.12.    Article Applicable to Paying Agents........................................................84
Section 10.13.    No Suspension of Remedies..................................................................84
Section 10.14.    Trustee Not Fiduciary for Holders of Senior Indebtedness...................................84
Section 10.15.    Notices to Holders of Senior Indebtedness..................................................85

                                                   ARTICLE 11.
                                                 NOTE GUARANTEES

Section 11.01.    Guarantee..................................................................................85
Section 11.02.    Limitation on Guarantor Liability..........................................................86
Section 11.03.    Execution and Delivery of Note Guarantee...................................................86
Section 11.04.    Guarantors May Consolidate, etc., on Certain Terms.........................................87
Section 11.05.    Releases of Note Guarantees................................................................87
Section 11.06.    Ranking of Note Guarantees.................................................................88

                                                   ARTICLE 12.
                                           SATISFACTION AND DISCHARGE

Section 12.01.    Satisfaction and Discharge.................................................................88
Section 12.02.    Application of Trust Money.................................................................89

                                                   ARTICLE 13.
                                                  MISCELLANEOUS

Section 13.01.    Trust Indenture Act Controls...............................................................89
Section 13.02.    Notices....................................................................................90
Section 13.03.    Communication by Holders of Notes with Other Holders of Notes..............................91
Section 13.04.    Certificate and Opinion as to Conditions Precedent.........................................91
Section 13.05.    Statements Required in Certificate or Opinion..............................................91
Section 13.06.    Rules by Trustee and Agents................................................................91
Section 13.07.    No Personal Liability of Directors, Officers, Employees and Stockholders...................92
Section 13.08.    Governing Law..............................................................................92
Section 13.09.    No Adverse Interpretation of Other Agreements..............................................92
Section 13.10.    Successors.................................................................................92
Section 13.11.    Severability...............................................................................92
Section 13.12.    Counterpart Originals......................................................................92
Section 13.13.    Table of Contents, Headings, etc...........................................................92
</Table>

                                      -iv-
<PAGE>

EXHIBITS

Exhibit A         FORM OF NOTE
Exhibit B         FORM OF CERTIFICATE OF TRANSFER
Exhibit C         FORM OF CERTIFICATE OF EXCHANGE
Exhibit D         FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL ACCREDITED
                  INVESTOR
Exhibit E         FORM OF NOTE GUARANTEE
Exhibit F         FORM OF SUPPLEMENTAL INDENTURE

                                       -v-
<PAGE>

         INDENTURE dated as of April 15, 2002 among Fleming Companies, Inc., an
Oklahoma corporation (the "Company"), the Guarantors and Manufacturers and
Traders Trust Company, as trustee (the "Trustee").

         The Company, the Guarantors and the Trustee agree as follows for the
benefit of each other and for the equal and ratable benefit of the Holders of
the Notes:

                                   ARTICLE 1.
                   DEFINITIONS AND INCORPORATION BY REFERENCE

         Section 1.01. Definitions.

         "Acquired Indebtedness" means Indebtedness of a Person:

                  (a) existing at the time such Person becomes a Restricted
         Subsidiary of the Company; or

                  (b) assumed in connection with the acquisition of assets from
         such Person;

in each case, other than Indebtedness incurred in connection with, or in
contemplation of, such Person becoming a Restricted Subsidiary of the Company or
such acquisition.

         "Additional Interest" has the meaning given such term in the
Registration Rights Agreement.

         "Additional Notes" means any 9 7/8% Senior Subordinated Notes due 2012
issued under this Indenture after the Issue Date in accordance with Section 2.02
and 4.09.

         "Affiliate" means, with respect to any specified Person, any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For the purposes of this
definition, "control," when used with respect to any specified Person, means the
power to direct the management and policies of such Person, directly or
indirectly, whether through ownership of Voting Stock, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.

         "Agent" means any Registrar, Paying Agent or co-registrar.

         "Applicable Procedures" means, with respect to any transfer or exchange
of or for beneficial interests in any Global Note, the rules and procedures of
the Depositary, Euroclear and Clearstream that apply to such transfer or
exchange.

         "Asset Sale" means:

                  (a) the sale, lease, conveyance or other disposition of any
         assets (including, without limitation, by way of a sale and leaseback),
         other than sales of inventory in the ordinary course of business
         consistent with past practices (provided that the sale, lease,
         conveyance or other disposition of all or substantially all of the
         assets of the Company and its Restricted Subsidiaries taken as a whole
         will be governed by Section 4.14 and/or Article 5 and not by the
         provisions of Section 4.10); and

<PAGE>

                  (b) the issue or sale by the Company or any of its Restricted
         Subsidiaries of Equity Interests of any of the Company's Restricted
         Subsidiaries, whether in a single transaction or a series of related
         transactions, in either case:

                           (i) that have a fair market value in excess of $2.5
                  million; or

                           (ii) for net proceeds in excess of $2.5 million.

Notwithstanding the foregoing, a transfer of assets by the Company to a Wholly
Owned Restricted Subsidiary or by a Wholly Owned Restricted Subsidiary to the
Company or to another Wholly Owned Restricted Subsidiary, or by a non-Wholly
Owned Restricted Subsidiary to any other Restricted Subsidiary will not be
deemed to be an Asset Sale.

         "Average Life to Stated Maturity" means, as of the date of
determination with respect to any Indebtedness, the quotient obtained by
dividing:

                  (a) the sum of the products of:

                           (i) the number of years from the date of
                  determination to the date or dates of each successive
                  scheduled principal payment of such Indebtedness; multiplied
                  by

                           (ii) the amount of each such principal payment; by

                  (b) the sum of all such principal payments.

         "Bankruptcy Law" means Title 11, United States Bankruptcy Code of 1978,
as amended, or any similar United States federal or state law relating to
bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or
relief of debtors or any amendment to, succession to or change in any such law.

         "Banks" means the banks and other financial institutions from time to
time that are lenders under the Credit Agreement.

         "Board of Directors" means, as to any Person, the board of directors of
such Person or any duly authorized committee thereof.

         "Board Resolution" means, with respect to any Person, a copy of a
resolution certified by the Secretary or an Assistant Secretary of such Person
to have been duly adopted by the Board of Directors of such Person and to be in
full force and effect on the date of such certification, and delivered to the
Trustee.

         "Borrowing Base Amount" means, as of any date, an amount equal to the
sum of:

                  (a) 85% of the aggregate book value of all accounts receivable
         of the Company and its Restricted Subsidiaries; and

                                      -2-
<PAGE>

                  (b) 60% of the aggregate book value of all inventory owned by
         the Company and its Restricted Subsidiaries,

all calculated on a consolidated basis and in accordance with GAAP. To the
extent the information is not available as to the amount of accounts receivable
or inventory as of a specific date, the Company shall use the most recent
available information for purposes of calculating the Borrowing Base.

         "Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in The City of New York
are authorized or obligated by law or executive order to close.

         "Capital Lease Obligation" of any Person means any obligation of such
Person and its Subsidiaries on a Consolidated basis under any capital lease of
real or personal property which, in accordance with GAAP, has been recorded as a
capitalized lease obligation.

         "Capital Stock" of any Person means any and all shares, interests,
partnership interests, participations or other equivalents (however designated)
of such Person's capital stock whether now outstanding or issued after the Issue
Date, including, without limitation, all common stock and Preferred Stock.

         "Change of Control" means the occurrence of any of the following
events:

                  (a) any "person" or "group" (as such terms are used in
         Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial
         owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
         except that a Person shall be deemed to have beneficial ownership of
         all shares that such Person has the right to acquire, whether such
         right is exercisable immediately or only after the passage of time),
         directly or indirectly, of more than 50% of the total outstanding
         Voting Stock of the Company;

                  (b) during any period of two consecutive years, individuals
         who at the beginning of such period constituted the Board of Directors
         of the Company (together with any new directors whose election to such
         Board of Directors, or whose nomination for election by the
         stockholders of the Company, was approved by a vote of 66 2/3% of the
         directors then still in office who were either directors at the
         beginning of such period or whose election or nomination for election
         was previously so approved) cease for any reason to constitute a
         majority of such Board of Directors then in office;

                  (c) the Company consolidates with or merges with or into any
         Person or conveys, transfers, leases or otherwise disposes of all or
         substantially all of its assets to any Person, or any Person
         consolidates with or merges into or with the Company, in any such event
         pursuant to a transaction in which the outstanding Voting Stock of the
         Company is changed into or exchanged for cash, securities or other
         property, other than any such transaction where the outstanding Voting
         Stock of the Company is not changed or exchanged at all (except to the
         extent necessary to reflect a change in the jurisdiction of
         incorporation of the Company) or where:

                                      -3-
<PAGE>

                           (i) the outstanding Voting Stock of the Company is
                  changed into or exchanged for:

                                    (A) Voting Stock of the surviving
                           corporation which is not Redeemable Capital Stock; or

                                    (B) cash, securities or other property
                           (other than Capital Stock of the surviving
                           corporation) in an amount which could be paid by the
                           Company as a Restricted Payment as described under
                           Section 4.07 (and such amount shall be treated as a
                           Restricted Payment pursuant to Section 4.07); and

                           (ii) immediately after such transaction, no "person"
                  or "group" (as such terms are used in Sections 13(d) and 14(d)
                  of the Exchange Act) is the "beneficial owner" (as defined in
                  Rules 13d-3 and 13d-5 under the Exchange Act, except that a
                  Person shall be deemed to have beneficial ownership of all
                  shares that such Person has the right to acquire, whether such
                  right is exercisable immediately or only after the passage of
                  time), directly or indirectly, of more than 50% of the total
                  outstanding Voting Stock of the surviving corporation; or

                  (d) the Company is liquidated or dissolved or adopts a plan of
         liquidation or dissolution other than in a transaction which complies
         with the provisions of Article 5.

         "Clearstream" means Clearstream Banking, S.A.

         "Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Exchange Act, or if at any time after the
execution of this Indenture such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

         "Company" means Fleming Companies, Inc. and any and all successors
thereto that become a party to this Indenture in accordance with its terms.

         "Consolidated" means, with respect to any Person, the consolidation of
the accounts of such Person and each of its subsidiaries if and to the extent
the accounts of such Person and each of its subsidiaries would normally be
consolidated with those of such Person, all in accordance with GAAP consistently
applied.

         "Consolidated EBITDA" means, with respect to the Company and its
Restricted Subsidiaries on a Consolidated basis for any period all determined in
accordance with GAAP, the sum of, without duplication:

                  (1) Consolidated Net Income, plus

                  (2) Consolidated Interest Expense, to the extent deducted in
         computing such Consolidated Net Income, plus;

                                      -4-
<PAGE>

                  (3) Consolidated Income Tax Expense, to the extent deducted in
         computing such Consolidated Net Income, plus;

                  (4) Consolidated Non-Cash Charges, to the extent deducted in
         computing such Consolidated Net Income, minus;

                  (5) non-cash items increasing such Consolidated Net Income
         (other than such non-cash items in the ordinary course of business).

         "Consolidated Fixed Charge Coverage Ratio" of the Company means, for
any period, the ratio of:

                  (a) Consolidated EBITDA for such period to:

                  (b) Consolidated Interest Expense for such period; provided
         that:

                           (i) in making such computation, the Consolidated
                  Interest Expense attributable to interest on any Indebtedness
                  computed on a pro forma basis; and

                                    (A) bearing a floating interest rate shall
                           be computed as if the rate in effect on the date of
                           computation had been the applicable rate for the
                           entire period; and

                                    (B) which was not outstanding during the
                           period for which the computation is being made but
                           which bears, at the option of the Company, a fixed or
                           floating rate of interest, shall be computed by
                           applying, at the option of the Company, either the
                           fixed or floating rate; and

                           (ii) in making such computation, Consolidated
                  Interest Expense attributable to interest on any Indebtedness
                  under a revolving credit facility computed on a pro forma
                  basis shall be computed based upon the average daily balance
                  of such Indebtedness during the applicable period.

         "Consolidated Income Tax Expense" means for any period the provision
for federal, state, local and foreign income taxes of the Company and its
Restricted Subsidiaries for such period as determined on a Consolidated basis in
accordance with GAAP.

         "Consolidated Interest Expense" means, without duplication, for any
period, the sum of:

                  (a) the interest expense of the Company and its Restricted
         Subsidiaries for such period, as determined on a Consolidated basis in
         accordance with GAAP including, without limitation;

                           (i) amortization of debt discount;

                                      -5-
<PAGE>

                           (ii) the net cost under Interest Rate Agreements
                  (including amortization of discount);

                           (iii) the interest portion of any deferred payment
                  obligation; and

                           (iv) accrued interest; plus

                  (b) the aggregate amount for such period of dividends on any
         Redeemable Capital Stock or Preferred Stock of the Company and its
         Restricted Subsidiaries;

                  (c) the interest component of the Capital Lease Obligations
         paid, accrued and/or scheduled to be paid, or accrued by such Person
         during such period; and

                  (d) all capitalized interest of the Company and its Restricted
         Subsidiaries in each case under each of (a) through (d) determined on a
         Consolidated basis in accordance with GAAP.

         "Consolidated Net Income" means, for any period, the Consolidated net
income (or loss) of the Company and its Restricted Subsidiaries for such period
as determined on a Consolidated basis in accordance with GAAP, adjusted, to the
extent included in calculating such net income (loss), by excluding, without
duplication:

                  (a) any net after-tax extraordinary gains or losses (less all
         fees and expenses relating thereto);

                  (b) the portion of net income (or loss) of the Company and its
         Restricted Subsidiaries determined on a Consolidated basis allocable to
         minority interests in unconsolidated Persons to the extent that cash
         dividends or distributions have not actually been received by the
         Company or any Restricted Subsidiary;

                  (c) net income (or loss) of any Person combined with the
         Company or any Restricted Subsidiary on a "pooling of interests" basis
         attributable to any period prior to the date of combination;

                  (d) net gains or losses (less all fees and expenses relating
         thereto) in respect of dispositions of assets other than in the
         ordinary course of business; and

                  (e) the net income of any Restricted Subsidiary to the extent
         that the declaration of dividends or similar distributions by that
         Restricted Subsidiary of that income is not at the time permitted,
         directly or indirectly, by operation of the terms of its charter or any
         agreement, instrument, judgment, decree, order, statute, rule or
         governmental regulation applicable to that Restricted Subsidiary or its
         shareholders.

         "Consolidated Net Worth" means, with respect to any Person as of any
date, the sum of:

                                      -6-
<PAGE>

                  (a) the consolidated equity of the common equity holders of
         such Person and its Restricted Subsidiaries as of such date; plus

                  (b) the respective amounts reported on such Person's balance
         sheet as of such date with respect to any series of preferred stock
         (other than Redeemable Capital Stock) that by its terms is not entitled
         to the payment of dividends unless such dividends may be declared and
         paid only out of net earnings in respect of the year of such
         declaration and payment, but only to the extent of any cash received by
         such Person upon issuance of such preferred stock; less

                           (i) all write-ups (other than write-ups resulting
                  from foreign currency translations and write-ups of tangible
                  assets of a going concern business made within 12 months after
                  the acquisition of such business) subsequent to the Issue Date
                  in the book value of any asset owned by such Person or a
                  consolidated Restricted Subsidiary of such Person;

                           (ii) all investments as of such date in
                  unconsolidated Restricted Subsidiaries and in Persons that are
                  not Subsidiaries (except, in each case, Permitted
                  Investments); and

                           (iii) all unamortized debt discount and expense and
                  unamortized deferred charges as of such date, all of the
                  foregoing determined in accordance with GAAP.

         "Consolidated Non-Cash Charges" means, for any period, the aggregate
depreciation, amortization and other non-cash charges of the Company and its
Restricted Subsidiaries for such period, as determined on a Consolidated basis
in accordance with GAAP (excluding any non-cash charges which require an accrual
or reserve for any future period).

         "Consolidated Tangible Assets" means the total of all the assets
appearing on the Consolidated balance sheet of the Company and its
majority-owned or Wholly Owned Restricted Subsidiaries less:

                  (a) intangible assets including, without limitation, items
         such as goodwill, trademarks, trade names, patents and unamortized debt
         discount; and

                  (b) appropriate adjustments on account of minority interests
         of other persons holding stock in any majority-owned Restricted
         Subsidiary of the Company.

         "Consolidated Total Assets" means, with respect to the Company, the
total of all assets appearing on the Consolidated balance sheet of the Company
and its majority-owned or Wholly Owned Restricted Subsidiaries, as determined on
a Consolidated basis in accordance with GAAP.

         "Convertible Senior Subordinated Notes" means the 5.25% Convertible
Senior Subordinated Notes due 2009 of the Company.

         "Corporate Trust Office of the Trustee" shall be at the address of the
Trustee specified in Section 13.02 or such other address as to which the Trustee
may give notice to the Company.

                                      -7-
<PAGE>

         "Credit Agreement" means the credit agreement dated as of July 25, 1997
among the Company, the Banks, the agents listed therein and The Chase Manhattan
Bank, as administrative agent, as such agreement may be amended, renewed,
extended, substituted, refinanced, restructured, replaced, supplemented or
otherwise modified from time to time (including, without limitation, any
successive renewals, extensions, substitutions, refinancings, restructurings,
replacements, supplementations or other modifications of the foregoing).

         "Currency Agreements" means any spot or forward foreign exchange
agreements and currency swap, currency option or other similar financial
agreements or arrangements entered into by the Company or any of its Restricted
Subsidiaries.

         "Custodian" means any custodian, receiver, trustee, assignee,
liquidator, sequestrator or similar official under any Bankruptcy Law.

         "Default" means any event which is, or after notice or passage of any
time or both would be, an Event of Default.

         "Definitive Note" means a certificated Note registered in the name of
the Holder thereof and issued in accordance with Section 2.06, in the form of
Exhibit A except that such Note shall not bear the Global Note Legend and shall
not have the "Schedule of Exchanges of Interests in the Global Note" attached
thereto.

         "Depositary" means, with respect to the Notes issuable or issued in
whole or in part in global form, the Person specified in Section 2.03 as the
Depositary with respect to the Notes, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

         "Designated Senior Indebtedness" means:

                  (1) any Senior Indebtedness outstanding under the Credit
         Agreement;

                  (2) any Senior Indebtedness in respect of the Senior Notes;
         and

                  (3) any other Senior Indebtedness, the principal amount of
         which is $50 million or more and that has been designated by the
         Company as "Designated Senior Indebtedness."

         "Disinterested Director" means, with respect to any transaction or
series of transactions in respect of which the Board of Directors is required to
deliver a resolution of the Board of Directors under this Indenture, a member of
the Board of Directors who does not have any material direct or indirect
financial interest in or with respect to such transaction or series of
transactions.

         "Equity Interest" of any Person means any shares, interests,
participations or other equivalents (however designated) in such Person's
equity, and shall in any event include any Capital Stock issued by, or
partnership or membership interests in, such Person.

                                      -8-
<PAGE>

         "Equity Offering" means a public or private offering of Qualified
Capital Stock of the Company generating gross proceeds to the Company of at
least $50.0 million.

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

         "Exchange Notes" means the 9 7/8% Senior Subordinated Notes due 2012 to
be issued in exchange for (1) the Initial Notes pursuant to the Registration
Rights Agreement and (2) the Additional Notes, if any, issued under Section 2.02
pursuant to a registration rights agreement substantially similar to the
Registration Rights Agreement.

         "Exchange Offer" means the Exchange Offer as defined in the
Registration Rights Agreement.

         "Exchange Offer Registration Statement" means the Exchange Offer
Registration Statement as defined in the Registration Rights Agreement.

         "Existing Senior Subordinated Notes" means:

                  (1) the 10 1/2% Senior Subordinated Notes due 2004 of the
         Company; and

                  (2) the 10 5/8% Senior Subordinated Notes due 2007 of the
         Company.

         "Euroclear" means the Euroclear System.

         "Fair Market Value" means, with respect to any asset or property, a
price which could be negotiated in an arm's length transaction, for cash,
between a willing seller and a willing buyer, neither of whom is under undue
pressure to complete the transaction. Fair Market Value shall be determined by
officers of the Company acting in good faith; provided, that any transaction
that results in a price in excess of $10.0 million shall be determined by the
Board of Directors of the Company acting in good faith and shall be evidenced by
a Board Resolution attached to an Officers' Certificate delivered to the
Trustee.

         "Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles in the United States, as in effect on the Issue
Date.

         "Global Note Legend" means the legend set forth in Section 2.06(g)(ii)
which is required to be placed on all Global Notes issued under this Indenture.

         "Global Notes" means, individually and collectively, each of the
Restricted Global Notes and the Unrestricted Global Notes, in the form of
Exhibit A, issued in accordance with Section 2.01 or 2.06.

         "Government Securities" means direct obligations of, or obligations
guaranteed by, the United States of America, and for the payment of which the
United States pledges its full faith and credit.

         "Guaranteed Debt" means, with respect to any Person, without
duplication, all Indebtedness of any other Person referred to in the definition
of Indebtedness contained herein guaranteed directly or

                                      -9-
<PAGE>

indirectly in any manner by such Person, or in effect guaranteed directly or
indirectly by such Person through an agreement:

                  (a) to pay or purchase such Indebtedness or to advance or
         supply funds for the payment or purchase of such Indebtedness;

                  (b) to purchase, sell or lease (as lessee or lessor) property,
         or to purchase or sell services, primarily for the purpose of enabling
         the debtor to make payment of such Indebtedness or to assure the holder
         of such Indebtedness against loss;

                  (c) to supply funds to, or in any other manner invest in, the
         debtor (including any agreement to pay for property or services without
         requiring that such property be received or such services be rendered);

                  (d) to maintain working capital of the debtor, or otherwise to
         maintain the net worth, solvency or other financial condition of the
         debtor; or

                  (e) otherwise to assure a creditor against loss;

provided that the term "guarantee" shall not include endorsements for collection
or deposit, in either case in the ordinary course of business.

         "Guarantor" means each Wholly Owned Restricted Subsidiary of the
Company and each such subsidiary's Wholly Owned Restricted Subsidiaries as of
the Issue Date and any Restricted Subsidiary that is required pursuant to
Section 4.17, on or after the Issue Date, to execute a Note Guarantee pursuant
to this Indenture until a successor replaces any such party pursuant to the
applicable provisions of this Indenture and, thereafter, shall mean such
successor.

         "Holder" or "Noteholder" means a Person in whose name a Note is
registered.

         "IAI Global Note" means a global note in the form of Exhibit A hereto
bearing the Global Note Legend and the Private Placement Legend and deposited
with or on behalf of, and registered in the name of, the Depositary or its
nominee that will be issued in a denomination equal to the outstanding principal
amount of the Notes sold to an Institutional Accredited Investor.

         "Indebtedness" means, with respect to any Person, without duplication:

                  (a) all liabilities of such Person for borrowed money
         (including overdrafts) or for the deferred purchase price of property
         or services, excluding any trade payables and other accrued current
         liabilities arising in the ordinary course of business, but including,
         without limitation, all obligations, contingent or otherwise, of such
         Person in connection with any letters of credit and acceptances issued
         under letter of credit facilities, acceptance facilities or other
         similar facilities;

                  (b) all obligations of such Person evidenced by bonds, notes,
         debentures or other similar instruments;

                                      -10-
<PAGE>

                  (c) all indebtedness of such Person created or arising under
         any conditional sale or other title retention agreement with respect to
         property acquired by such Person (even if the rights and remedies of
         the seller or lender under such agreement in the event of default are
         limited to repossession or sale of such property), but excluding trade
         payables arising in the ordinary course of business;

                  (d) all Capital Lease Obligations of such Person;

                  (e) all obligations under Interest Rate Agreements or Currency
         Agreements of such Person;

                  (f) indebtedness referred to in clauses (a) through (e) above
         of other Persons, the payment of which is secured by (or for which the
         holder of such indebtedness has an existing right, contingent or
         otherwise, to be secured by) any Lien, upon or with respect to property
         (including, without limitation, accounts and contract rights) owned by
         such Person, even though such Person has not assumed or become liable
         for the payment of such indebtedness;

                  (g) all Guaranteed Debt of such Person;

                  (h) all Redeemable Capital Stock valued at the greater of its
         voluntary or involuntary maximum fixed repurchase price plus accrued
         and unpaid dividends; and

                  (i) any amendment, supplement, modification, deferral,
         renewal, extension, refunding or refinancing of any liability of the
         types referred to in clauses (a) through (h) above.

For purposes hereof, the "maximum fixed repurchase price" of any Redeemable
Capital Stock which does not have a fixed repurchase price shall be calculated
in accordance with the terms of such Redeemable Capital Stock as if such
Redeemable Capital Stock were purchased on any date on which Indebtedness shall
be required to be determined pursuant to this Indenture, and if such price is
based upon, or measured by, the Fair Market Value of such Redeemable Capital
Stock, such Fair Market Value is to be determined in good faith by the Board of
Directors of the issuer of such Redeemable Capital Stock.

         "Indenture" means this Indenture as amended or supplemented from time
to time.

         "Indirect Participant" means a Person who holds a beneficial interest
in a Global Note through a Participant.

         "Initial Notes" means the $260 million principal amount of 9 7/8%
Senior Subordinated Notes due 2012 of the Company issued on the Issue Date.

         "Institutional Accredited Investor" means an institution that is an
"accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act that is not also a QIB.

         "Interest Payment Date" means May 1 and November 1 of each year
commencing November 1, 2002.

                                      -11-
<PAGE>

         "Interest Rate Agreements" means any interest rate protection
agreements and other types of interest rate hedging agreements (including,
without limitation, interest rate swaps, caps, floors, collars and similar
agreements).

         "Investee Store" means a Person in which the Company or any of its
Restricted Subsidiaries has invested equity capital, to which it has made loans
or for which it has guaranteed loans, in accordance with the business practice
of the Company and its Restricted Subsidiaries of making equity investments in,
making loans to or guaranteeing loans made to Persons for the purpose of
assisting any such Person in acquiring, remodeling, refurbishing, expanding or
operating one or more retail grocery stores.

         "Investment" means, with respect to any Person, directly or indirectly:

                  (a) any advance (other than advances to customers in the
         ordinary course of business, which are recorded as accounts receivable
         on the balance sheet of the Company and its Restricted Subsidiaries),
         loan or other extension of credit (including by way of guarantee); or

                  (b) capital contribution to (by means of any transfer of cash
         or other property to others or any payment for property or services for
         the account or use of others); or

                  (c) any purchase, acquisition or ownership by such Person of
         any Capital Stock, bonds, notes, debentures or other securities or
         assets issued or owned by any other Person.

The Company shall be deemed to make an Investment in an amount equal to the
greater of the book value (as determined in accordance with GAAP) and Fair
Market Value of the net assets of any Restricted Subsidiary (or, if neither the
Company nor any of its Restricted Subsidiaries has theretofore made an
Investment in such Restricted Subsidiary, in an amount equal to the Investments
being made) at the time such Restricted Subsidiary is designated an Unrestricted
Subsidiary, and any property transferred to an Unrestricted Subsidiary from the
Company or any Restricted Subsidiary shall be deemed an Investment valued at the
greater of its book value (as determined in accordance with GAAP) and its Fair
Market Value at the time of such transfer.

         "Investment Grade" means BBB- or higher by S&P or Baa3 or higher by
Moody's or the equivalent of such ratings by S&P or Moody's or in the event S&P
or Moody's shall cease rating the Notes and the Company shall select any other
Rating Agency, the equivalent of such ratings by such other Rating Agency.

         "Issue Date" means April 15, 2002, the date of original issuance of the
Initial Notes.

         "Joint Venture" means any Person in which the Company or any of its
Restricted Subsidiaries owns 30% or more of the Voting Stock (other than as a
result of a Public Equity Offering).

         "Letter of Transmittal" means the letter of transmittal to be prepared
by the Company and sent to all Holders of the Notes for use by such Holders in
connection with the Exchange Offer.

                                      -12-
<PAGE>

         "Lien" means any mortgage, charge, pledge, lien (statutory or
otherwise), privilege, security interest, hypothecation or other encumbrance
upon or with respect to any property of any kind, real or personal, movable or
immovable, now owned or hereafter acquired.

         "Maturity" when used with respect to the Notes means the date on which
the principal of the Notes becomes due and payable as therein provided or as
provided in this Indenture, whether at Stated Maturity or on a redemption date
or pursuant to a Change of Control Purchase Offer or an Asset Sale Offer, and
whether by declaration of acceleration, call for redemption, purchase or
otherwise.

         "Moody's" means Moody's Investors Service, Inc. or any successor rating
agency.

         "Net Proceeds" means the aggregate cash proceeds received by the
Company or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of
the direct costs relating to such Asset Sale (including, without limitation,
legal, accounting and investment banking fees, and sales commissions), any
relocation expenses incurred as a result thereof, any taxes paid or payable by
the Company or any of its Restricted Subsidiaries as a result thereof (after
taking into account any available tax credits or deductions and any tax sharing
arrangements), amounts required to be applied to the permanent repayment of
Indebtedness secured by a Lien on the assets or assets that were the subject of
such Asset Sale and any reserve for adjustment or indemnity in respect of the
sale price of such asset or assets in each case established in accordance with
GAAP.

         "Non-Recourse Debt" means Indebtedness:

                  (a) as to which neither the Company nor any of its Restricted
         Subsidiaries:

                           (i) provides credit support of any kind (including
                  any undertaking, agreement or instrument that would constitute
                  indebtedness);

                           (ii) is directly or indirectly liable (as a guarantor
                  or otherwise); or

                           (iii) constitutes the lender;

                  (b) no default with respect to which (including any rights
         that the holders thereof may have to take enforcement action against an
         Unrestricted Subsidiary) would permit (upon notice, lapse of time or
         both) any holder of any other Indebtedness (other than the Notes being
         offered hereby) of the Company or any of its Restricted Subsidiaries to
         declare a default on such other Indebtedness or cause the payment
         thereof to be accelerated or payable prior to its stated maturity; and

                  (c) as to which the lenders have been notified in writing that
         they will not have any recourse to the stock or assets of the Company
         or any of its Restricted Subsidiaries.

         "Note Guarantee" means any guarantee by a Guarantor of the Company's
obligations under this Indenture.

                                      -13-
<PAGE>

         "Notes" means, collectively, the Initial Notes, the Additional Notes,
if any, and the Exchange Notes, treated as a single class of securities, as
amended or supplemented from time to time in accordance with the terms hereof,
that are issued pursuant to this Indenture.

         "Obligations" means any principal, premium, interest (including
post-petition interest), penalties, fees, indemnifications, reimbursements,
damages and other liabilities payable under the documentation governing any
Indebtedness.

         "Officer" means, with respect to any Person, the President, Chief
Executive Officer, any Vice President, Chief Operating Officer, Treasurer,
Secretary or the Chief Financial Officer of such Person.

         "Officers' Certificate" means, with respect to any Person, a
certificate signed by two Officers of such Person; provided, however, that every
Officers' Certificate with respect to compliance with a covenant or condition
provided for in this Indenture shall include (i) a statement that the Officers
making or giving such Officers' Certificate have read such condition and any
definitions or other provisions contained in this Indenture relating thereto and
(ii) a statement at to whether, in the opinion of the signers, such conditions
has been complied with.

         "144A Global Note" means a global note in the form of Exhibit A hereto
bearing the Global Note Legend and the Private Placement Legend and deposited
with or on behalf of, and registered in the name of, the Depositary or its
nominee that will be issued in a denomination equal to the outstanding principal
amount of the Notes sold in reliance on Rule 144A.

         "Opinion of Counsel" means an opinion from legal counsel who is
reasonably acceptable to the Trustee that meets the requirements of Section
13.05. The counsel may be an employee of or counsel to the Company, any
Subsidiary of the Company or the Trustee.

         "Pari Passu Indebtedness" means (a) with respect to the Notes,
Indebtedness which ranks pari passu in right of payment to the Notes, and (b)
with respect to any Note Guarantee, Indebtedness which ranks pari passu in right
of payment to such Note Guarantee.

         "Participant" means, with respect to the Depositary, Euroclear or
Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and
Clearstream).

         "Participating Broker-Dealer" means any broker-dealer that is the
"beneficial owner" (as defined in Rule 13d-3 under the Exchange Act) of Exchange
Notes received by such broker-dealer in the Exchange Offer.

         "Permitted Consideration" means consideration consisting of any
combination of the following:

                  (a) cash or Temporary Cash Investments;

                  (b) assets used or intended for use in the Company's business
         as conducted on the Issue Date;

                                      -14-
<PAGE>

                  (c) any liabilities (as shown on the Company's or such
         Restricted Subsidiary's most recent balance sheet), of the Company or
         any Restricted Subsidiary (other than contingent liabilities and
         liabilities that are by their terms subordinated to the Notes or any
         guarantee thereof) that are assumed by the transferee of any such
         assets pursuant to a customary novation agreement that releases the
         Company or such Restricted Subsidiary from further liability; and

                  (d) any securities, notes or other obligations received by the
         Company or any such Restricted Subsidiary; provided that the aggregate
         amount of such securities, notes or other obligations received by the
         Company and its Restricted Subsidiaries pursuant to this clause (d)
         after the Issue Date and held or carried at any date of determination
         shall not exceed $75.0 million.

         "Permitted Indebtedness" means any of the following Indebtedness of the
Company or any Restricted Subsidiary, as the case may be:

                  (a) Indebtedness of the Company and guarantees of the
         Guarantors under the Credit Agreement in an aggregate principal amount
         at any one time outstanding not to exceed the greater of:

                           (i) $1.0 billion, less

                                    (A) the amount of mandatory repayments
                           actually made by the Company or any such Restricted
                           Subsidiary since the Issue Date with Net Proceeds of
                           an Asset Sale in respect of term Indebtedness under
                           the Credit Agreement; and

                                    (B) further reduced by the amount of
                           mandatory repayments of revolving credit Indebtedness
                           thereunder (accompanied by a corresponding commitment
                           reduction thereunder) actually made by the Company or
                           any such Restricted Subsidiary since the Issue Date
                           with Net Proceeds of an Asset Sale; or

                           (ii) the Borrowing Base Amount;

                  (b) Indebtedness of the Company and guarantees of the
         Guarantors under uncommitted bank lines of credit (including any
         refinancings of such Indebtedness); provided, however, that the
         aggregate principal amount of Indebtedness incurred pursuant to clauses
         (a), (b) and (j) of this definition does not exceed the maximum amount
         of Indebtedness permitted under clause (a) of this definition;

                  (c) Indebtedness of the Company and the Guarantors evidenced
         by the Notes and the Note Guarantees with respect thereto under this
         Indenture in an aggregate principal amount not to exceed $260.0
         million;

                  (d) Indebtedness of the Company or any Restricted Subsidiary
         outstanding on the Issue Date;

                                      -15-
<PAGE>

                  (e) obligations of the Company or any Restricted Subsidiary
         entered into in the ordinary course of business

                           (i) pursuant to Interest Rate Agreements designed to
                  protect against or manage exposure to fluctuations in interest
                  rates in respect of Indebtedness or retailer notes
                  receivables, which, if related to Indebtedness or such
                  retailer notes receivables, do not exceed the aggregate
                  notional principal amount of such Indebtedness to which such
                  Interest Rate Agreements relate, or

                           (ii) under any Currency Agreements in the ordinary
                  course of business and designed to protect against or manage
                  exposure to fluctuations in foreign currency exchange rates
                  which, if related to Indebtedness, do not increase the amount
                  of such Indebtedness other than as a result of foreign
                  exchange fluctuations;

                  (f) Indebtedness of the Company owing to a Wholly Owned
         Restricted Subsidiary or of any Restricted Subsidiary owing to the
         Company or any Wholly Owned Restricted Subsidiary; provided that any
         disposition, pledge or transfer of any such Indebtedness to a Person
         (other than the Company or another Wholly Owned Restricted Subsidiary)
         shall be deemed to be an incurrence of such Indebtedness by the Company
         or Restricted Subsidiary, as the case may be, not permitted by this
         clause (f);

                  (g) Indebtedness in respect of letters of credit, surety bonds
         and performance bonds provided in the ordinary course of business;

                  (h) Indebtedness arising from the honoring by a bank or other
         financial institution of a check, draft or similar instrument
         inadvertently drawn against insufficient funds in the ordinary course
         of business; provided that such Indebtedness is extinguished within ten
         business days of its incurrence;

                  (i) Indebtedness of the Company or any Restricted Subsidiary
         consisting of guarantees, indemnities or obligations in respect of
         purchase price adjustments in connection with the acquisition or
         disposition of assets;

                  (j) Indebtedness of the Company evidenced by commercial paper
         issued by the Company (including any refinancings of such
         Indebtedness); provided, however, that the aggregate principal amount
         of Indebtedness incurred pursuant to clauses (a), (b) and (j) of this
         definition does not exceed the maximum amount of Indebtedness permitted
         under clause (a) of this definition;

                  (k) Indebtedness of the Company pursuant to guarantees by the
         Company or any Guarantor in connection with any Permitted Receivables
         Financing; provided, however, that such Indebtedness shall not exceed
         20% of the book value of the Transferred Receivables at the time such
         Transferred Receivables are sold or in the case of receivables arising
         from direct financing leases, 30% of the book value thereof;

                                      -16-
<PAGE>

                  (l) Indebtedness constituting Capital Lease Obligations of the
         Company and its Restricted Subsidiaries (including any refinancings of
         such Indebtedness) not to exceed $100.0 million at any time outstanding
         in the aggregate;

                  (m) Indebtedness of the Company and its Restricted
         Subsidiaries in addition to that described in clauses (a) through (l)
         of this definition of "Permitted Indebtedness," together with any other
         outstanding Indebtedness incurred pursuant to this clause (m)
         (including any refinancings of such Indebtedness), not to exceed $100.0
         million at any time outstanding in the aggregate; and

                  (n) any renewals, extensions, substitutions, refunding,
         refinancings or replacements (each, a "refinancing") of any
         Indebtedness described in clauses (c) and (d) of this definition of
         "Permitted Indebtedness," including any successive refinancings, so
         long as:

                           (i) the aggregate principal amount of Indebtedness
                  represented thereby is not increased by such refinancing to an
                  amount greater than such principal amount plus the lesser of
                  (A) the stated amount of any premium or other payment required
                  to be paid in connection with such a refinancing pursuant to
                  the terms of the Indebtedness being refinanced or (B) the
                  amount of premium or other payment actually paid at such time
                  to refinance the Indebtedness, plus, in either case, the
                  amount of reasonable expenses of the Company or any Restricted
                  Subsidiary, as the case may be, incurred in connection with
                  such refinancing;

                           (ii) in the case of any refinancing of Subordinated
                  Indebtedness, such new Indebtedness is subordinated to the
                  Notes or the applicable Note Guarantee, as the case may be, to
                  the same extent as the Indebtedness being refinanced; and

                           (iii) such refinancing does not reduce the Average
                  Life to Stated Maturity or the Stated Maturity of such
                  Indebtedness.

         For purposes of determining compliance with Section 4.09, in the event
that an item of Indebtedness meets the criteria of more than one of the
categories of Permitted Indebtedness described in clauses (a) through (n) above
or is permitted to be incurred pursuant to the Consolidated Fixed Charge
Coverage Ratio provisions of such covenant, the Company shall, in its sole
discretion, classify (or later reclassify) such item of Indebtedness in any
manner that complies with Section 4.09. Accrual of interest, accretion or
amortization of original issue discount and the payment of interest on any
Indebtedness in the form of additional Indebtedness with the same terms will not
be deemed to be an incurrence of Indebtedness for purposes of Section 4.09.

         "Permitted Investment" means

                  (a) Investments in any Wholly Owned Restricted Subsidiary or
         any Restricted Subsidiary that is a Guarantor or any Investment in any
         Person by the Company or any Restricted Subsidiary as a result of which
         such Person becomes a Wholly Owned Restricted Subsidiary or a
         Restricted Subsidiary that is a Guarantor or any Investment in the
         Company by a Restricted Subsidiary;

                                      -17-
<PAGE>

                  (b) intercompany Indebtedness to the extent permitted under
         clause (f) of the definition of "Permitted Indebtedness" and
         Indebtedness in connection with a Permitted Receivables Financing
         permitted under clause (k) of the definition of "Permitted
         Indebtedness";

                  (c) Temporary Cash Investments;

                  (d) sales of goods and services on trade credit terms
         consistent with the Company's past practices or otherwise consistent
         with trade credit terms in common use in the industry;

                  (e) Investments in direct financing leases for equipment and
         real estate owned or leased by the Company and leased to its customers
         in the ordinary course of business consistent with past practice;

                  (f) Investments in Joint Ventures related to the Company's
         operations, not to exceed $50.0 million at any one time outstanding;

                  (g) Investments in Investee Stores either in the form of
         equity, loans or other extensions of credit; provided that any such
         Investment may only be made if the amount thereof, when added to the
         aggregate outstanding amount of Permitted Investments in Investee
         Stores (excluding for purposes of this clause (g) any Investments made
         pursuant to clause (e)), after giving effect to any loan repayments or
         returns of capital in respect of any Permitted Investment in Investee
         Stores, does not exceed 12.5% of Consolidated Total Assets at the time
         of determination;

                  (h) Investments as a result of non-cash consideration received
         by the Company or a Restricted Subsidiary in connection with an Asset
         Sale made in compliance with Section 4.10;

                  (i) other Investments, in addition to those permitted under
         (a) through (h) above, in an aggregate amount not to exceed $25.0
         million; and

                  (j) any substitutions or replacements of any Investment so
         long as the aggregate amount of such Investment is not increased by
         such substitution or replacement.

         "Permitted Junior Securities" means Equity Interests in the Company or
debt securities that are subordinated to all Senior Indebtedness (and any debt
securities issued in exchange for Senior Indebtedness) to substantially the same
extent as, or to a greater extent than, the Notes are subordinated to Senior
Indebtedness under the Indenture.

         "Permitted Liens" means, with respect to any Person:

                  (a) Liens existing as of the Issue Date;

                  (b) Liens securing the Notes and the Note Guarantees;

                  (c) any Lien arising by reason of:

                                      -18-
<PAGE>

                           (i) any judgment, decree or order of any court, so
                  long as such Lien is adequately bonded and any appropriate
                  legal proceedings which may have been duly initiated for the
                  review of such judgment, decree or order shall not have been
                  finally terminated or the period within which such proceedings
                  may be initiated shall not have expired;

                           (ii) deposits to secure public or statutory
                  obligations;

                           (iii) operation of law in favor of growers, dealers
                  and suppliers of fresh fruits and vegetables, carriers,
                  mechanics, materialmen, laborers, employees or suppliers,
                  incurred in the ordinary course of business for sums which are
                  not yet delinquent or are being contested in good faith by
                  negotiations or by appropriate proceedings which suspend the
                  collection thereof;

                           (iv) the grant by the Company to licensees, pursuant
                  to security agreements, of security interests in trademarks
                  and goodwill, patents and trade secrets of the Company to
                  secure the damages, if any, of such licensees, resulting from
                  the rejection of the license of such licensees in a
                  bankruptcy, reorganization or similar proceeding with respect
                  to the Company; or

                           (v) security for surety or appeal bonds;

                  (d) any Lien on any property or assets of a Restricted
         Subsidiary in favor of the Company or any Wholly Owned Restricted
         Subsidiary;

                  (e) any Lien securing Acquired Indebtedness created prior to
         (and not created in connection with, or in contemplation of) the
         incurrence of such Indebtedness by the Company or any Restricted
         Subsidiary; provided that such Lien does not extend to any assets of
         the Company or any Restricted Subsidiary other than the assets acquired
         in the transaction resulting in such Acquired Indebtedness being
         incurred by the Company or Restricted Subsidiary, as the case may be;

                  (f) any Lien to secure the performance of bids, trade
         contracts, letters of credit and other obligations of a like nature and
         incurred in the ordinary course of business of the Company or any
         Restricted Subsidiary;

                  (g) any Lien securing any Interest Rate Agreements or Currency
         Agreements permitted to be incurred pursuant to clause (e) of the
         definition of "Permitted Indebtedness" or any collateral for the
         Indebtedness to which such Interest Rate Agreements or Currency
         Agreements relate;

                  (h) any Lien on an asset securing Indebtedness (including
         Capital Lease Obligations) incurred or assumed for the purpose of
         financing all or any part of the cost of acquiring or constructing such
         asset; provided that such Lien covers only such asset and attaches
         concurrently or within 180 days after the acquisition or completion of
         construction thereof;

                                      -19-
<PAGE>

                  (i) any Lien on real or personal property securing Capital
         Lease Obligations of the Company or any Restricted Subsidiary as lessee
         with respect to such real or personal property to the extent such
         Indebtedness can be incurred pursuant to Section 4.09 hereof;

                  (j) any Lien on a Transferred Receivable or other receivable
         that is transferred in a Permitted Receivables Financing;

                  (k) any Lien consisting of any pledge to any Person of
         Indebtedness owed by any Restricted Subsidiary to the Company or to any
         Wholly Owned Restricted Subsidiary; provided that:

                           (i) such Restricted Subsidiary is a Guarantor; and

                           (ii) the principal amount pledged does not exceed the
                  Indebtedness secured by such pledge;

                  (l) Liens securing Indebtedness which is incurred to refinance
         any Indebtedness which has been secured by a Lien permitted under this
         Indenture and which has been incurred in accordance with the provisions
         of this Indenture; provided, however, that such Liens:

                           (i) are no less favorable to the Holders and are not
                  more favorable to the lienholders with respect to such Liens
                  than the Liens in respect of the Indebtedness being
                  refinanced; and

                           (ii) do not extend to or cover any property or assets
                  of the Company or any of the Restricted Subsidiaries not
                  securing the Indebtedness so refinanced; and

                  (m) any extension, renewal, substitution or replacement, in
         whole or in part, of any Lien described in the foregoing clauses (d)
         through (l); provided, that the Lien so extended, renewed, substituted
         or replaced does not extend to any additional property or assets.

         "Permitted Receivables Financing" means any transaction involving the
transfer (by way of sale, pledge or otherwise) by the Company or any of its
Restricted Subsidiaries of receivables to any other Person; provided that after
giving effect to such transaction the sum of:

                  (a) the aggregate uncollected balances of the receivables so
         transferred ("Transferred Receivables"); plus

                  (b) the aggregate amount of all collections on Transferred
         Receivables theretofore received by the seller but not yet remitted to
         the purchaser, in each case at the date of determination, would not
         exceed $600.0 million.

         "Person" means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

                                      -20-
<PAGE>

         "Preferred Stock" means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated) of
such Person's preferred stock whether now outstanding, or issued after the Issue
Date, and including, without limitation, all classes and series of preferred or
preference stock of such Person.

         "Private Placement Legend" means the legend set forth in Section
2.06(g)(i) to be placed on all Notes issued under this Indenture except where
otherwise permitted by the provisions of this Indenture.

         "Public Equity Offering" means with respect to the last sentence of
Section 4.15, a primary or secondary public offering of equity securities of any
Restricted Subsidiary of the Company pursuant to an effective registration
statement under the Securities Act.

         "QIB" means a "qualified institutional buyer" as defined in Rule 144A.

         "Qualified Capital Stock" of any Person means any and all Capital Stock
of such Person other than Redeemable Capital Stock.

         "Rating Agency" means any of:

                  (a) S&P;

                  (b) Moody's; or

                  (c) if S&P or Moody's or both shall not make a rating of the
         Notes publicly available, a security rating agency or agencies, as the
         case may be, nationally recognized in the United States, selected by
         the Company, which shall be substituted for S&P or Moody's or both, as
         the case may be, and, in each case, any successors thereto.

         "Rating Category" means:

                  (a) with respect to S&P, any of the following categories: AAA,
         AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor
         categories);

                  (b) with respect to Moody's, any of the following categories:
         Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C and D (or equivalent successor
         categories); and

                  (c) the equivalent of any such category of S&P or Moody's used
         by another Rating Agency.

In determining whether the rating of the Notes has decreased by one or more
gradation, gradations within Rating Categories (+ and -- for S&P; 1, 2 and 3 for
Moody's; or the equivalent gradations for another Rating Agency) shall be taken
into account (e.g., with respect to S&P, a decline in rating from BB+ to BB, as
well as from BB-- to B+, will constitute a decrease of one gradation).

         "Redeemable Capital Stock" means any Capital Stock that, either by its
terms or by the terms of any security into which it is convertible or
exchangeable or otherwise, is, or upon the happening of an

                                      -21-
<PAGE>

event or passage of time would be, required to be redeemed prior to any Stated
Maturity of the principal of the Notes or is redeemable at the option of the
holder thereof at any time prior to any such Stated Maturity, or is convertible
into or exchangeable for debt securities at any time prior to any such Stated
Maturity at the option of the holder thereof.

         "refinancing" has the meaning specified in the definition of "Permitted
Indebtedness" set forth herein.

         "Registrable Notes" has the meaning given such term in the Registration
Rights Agreement.

         "Registration Rights Agreement" means the Registration Rights Agreement
dated as of the date hereof by and among the Company, the Guarantors and the
initial purchasers named therein as the same may be amended or supplemented from
time to time.

         "Regulation S" means Regulation S promulgated under the Securities Act.

         "Regulation S Global Note" means a permanent global Note in the form of
Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend
and deposited with or on behalf of and registered in the name of the Depositary
or its nominee and sold in reliance on Rule 903 of Regulation S.

         "Responsible Officer" means, when used with respect to the Trustee, any
managing director, director, principal, vice president, assistant vice
president, assistant treasurer, associate or any other officer within the
corporate trust department of the Trustee customarily performing functions
similar to those performed by any of the above designated officers and also
shall mean, with respect to a particular corporate trust matter, any other
officer to whom such matter is referred because of his knowledge and familiarity
with the particular subject.

         "Restricted Definitive Note" means a Definitive Note bearing the
Private Placement Legend.

         "Restricted Global Note" means a Global Note bearing the Private
Placement Legend.

         "Restricted Period" means the applicable distribution compliance period
under Rule 903.

          "Restricted Subsidiary" means any Subsidiary of the Company that is
not an Unrestricted Subsidiary.

         "Rule 144" means Rule 144 promulgated under the Securities Act.

         "Rule 144A" means Rule 144A promulgated under the Securities Act.

         "Rule 903" means Rule 903 promulgated under the Securities Act.

         "Rule 904" means Rule 904 promulgated under the Securities Act.

         "Securities Act" means the Securities Act of 1933, as amended.

                                      -22-
<PAGE>

         "Senior Indebtedness" of the Company or any Subsidiary Guarantor means:

                  (1) all Indebtedness of the Company or such Subsidiary
         Guarantor under the Credit Agreement or any related loan documentation,
         including, without limitation, obligations to pay principal and
         interest (including any interest accruing subsequent to the filing of a
         petition of bankruptcy at the rate provided for in the documentation
         with respect thereto, whether or not such interest is an allowed claim
         under applicable law), premium, if any, reimbursement obligations under
         letters of credit, fees, expenses and indemnities, and all obligations
         under Interest Rate Agreements or Currency Agreements with respect
         thereto, whether outstanding on the date of the Indenture or thereafter
         incurred;

                  (2) the principal of, premium, if any, and interest (including
         any interest accruing subsequent to the filing of a petition of
         bankruptcy at the rate provided for in the documentation with respect
         thereto, whether or not such interest is an allowed claim under
         applicable law) on, and all other Obligations with respect to, any
         other Indebtedness of the Company or such Subsidiary Guarantor
         permitted to be incurred by the Company or such Subsidiary Guarantor
         under the terms of the Indenture (including, without limitation, the
         Senior Notes), whether outstanding on the date of the Indenture or
         thereafter incurred, unless the instrument under which such
         Indebtedness is incurred expressly provides that it is on a parity with
         or subordinated in right of payment to the Notes; and

                  (3) all Obligations of the Company or such Subsidiary
         Guarantor with respect to the foregoing.

Notwithstanding anything to the contrary in the foregoing, Senior Indebtedness
will not include (a) the Existing Senior Subordinated Notes or the Convertible
Senior Subordinated Notes, (b) any liability for federal, state, local or other
taxes owed or owing by the Company or any Subsidiary Guarantor, (c) any
Indebtedness of the Company or any Subsidiary Guarantor to any of its Restricted
Subsidiaries or other Affiliates, (d) any trade payables or (e) any Indebtedness
that is incurred in violation of the Indenture.

         "Senior Notes" means the 10 1/8% Senior Notes due April 2008 of the
Company.

         "Shelf Registration Statement" means the Shelf Registration Statement
as defined in the Registration Rights Agreement.

         "Significant Subsidiary" of the Company means any Subsidiary of the
Company that is a "significant subsidiary" as defined in Regulation S-X under
the Exchange Act.

         "S&P" means Standard & Poor's Ratings Group, a division of McGraw Hill
Inc., a New York corporation, or any successor rating agency.

         "Stated Maturity" when used with respect to any Indebtedness or any
installment of interest thereon means the dates specified in such Indebtedness
as the fixed date on which the principal of or premiums on such Indebtedness or
such installment of interest is due and payable.

                                      -23-
<PAGE>

         "Subordinated Indebtedness" means Indebtedness of the Company or the
Guarantors that is subordinate or junior in right of payment to the Notes or the
Note Guarantees, as the case may be.

         "Subsidiary" means any Person a majority of the equity ownership or the
Voting Stock of which is at the time owned, directly or indirectly, by the
Company or by one or more other Restricted Subsidiaries, or by the Company and
one or more other Restricted Subsidiaries.

         "Tangible Assets" means the total of all the assets appearing on the
Consolidated balance sheet of a majority-owned or Wholly Owned Restricted
Subsidiary of the Company less the following:

                  (a) intangible assets including, without limitation, items
         such as goodwill, trademarks, trade names, patents and unamortized debt
         discount and expense; and

                  (b) appropriate adjustments on account of minority interests
         of other Persons holding stock in any such majority-owned Restricted
         Subsidiary of the Company.

         "Temporary Cash Investments" means:

                  (a) any evidence of Indebtedness issued by the United States,
         or an instrumentality or agency thereof, and guaranteed fully as to
         principal, premium, if any, and interest by the United States;

                  (b) any certificate of deposit issued by, or time deposit of,
         a financial institution that is a member of the Federal Reserve System
         having combined capital and surplus and undivided profits of not less
         than $500.0 million, whose debt has a rating, at the time of which any
         investment therein is made, of "A" (or higher) according to Moody's or
         "A" (or higher) according to S&P;

                  (c) commercial paper issued by a corporation (other than an
         Affiliate or Restricted Subsidiary of the Company) organized and
         existing under the laws of the United States with a rating, at the time
         as of which any investment therein is made, of "P-1" (or higher)
         according to Moody's or "A-1 (or higher) according to S&P;

                  (d) any money market deposit accounts issued or offered by a
         financial institution that is a member of the Federal Reserve System
         having capital and surplus in excess of $500.0 million;

                  (e) short term tax-exempt bonds with a rating, at the time as
         of which any investment is made therein, of "Aa3" (or higher) according
         to Moody's or "AA--" (or higher) according to S&P;

                  (f) shares in a mutual fund, the investment objectives and
         policies of which require it to invest substantially in the investments
         of the type described in clause (a) through (e); and

                  (g) repurchase and reverse repurchase obligations with the
         term of not more than seven days for underlying securities of the types
         described in clauses (a) and (b) entered into

                                      -24-
<PAGE>

         with any financial institution meeting the qualifications specified in
         clause (b); provided that in the case of clauses (a), (b), (c) and (e),
         such investment matures within one year from the date of acquisition
         thereof.

         "Transferred Receivables" has the meaning specified in the definition
of "Permitted Receivables Financing" set forth herein.

         "Trustee" means the party named as such above until a successor
replaces it in accordance with the applicable provisions of this Indenture and
thereafter means the successor serving hereunder.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended.

         "Unrestricted Definitive Note" means one or more Definitive Notes that
do not bear and are not required to bear the Private Placement Legend.

         "Unrestricted Global Note" means a permanent global Note in the form of
Exhibit A attached hereto that bears the Global Note Legend and that has the
"Schedule of Exchanges of Interests in the Global Note" attached thereto and
that is deposited with or on behalf of and registered in the name of the
Depositary, representing a series of Notes that do not bear the Private
Placement Legend.

         "Unrestricted Subsidiary" means any Subsidiary that is designated by
the Board of Directors as an Unrestricted Subsidiary pursuant to a Board
Resolution, but only to the extent that such Subsidiary:

                  (a) has no Indebtedness other than Non-Recourse Debt;

                  (b) is not party to any agreement, contract, arrangement or
         understanding with the Company or any of its Restricted Subsidiaries
         unless the terms of any such agreement, contract, arrangement or
         understanding are no less favorable to the Company or such Restricted
         Subsidiary than those that might be obtained at the time from Persons
         who are not Affiliates of the Company;

                  (c) is a Person with respect to which neither the Company nor
         any of its Restricted Subsidiaries has any direct or indirect
         obligation (i) to subscribe for additional Equity Interests or (ii) to
         maintain or preserve such Person's financial condition or to cause such
         Person to achieve any specified levels of operating results;

                  (d) has not guaranteed or otherwise directly or indirectly
         provided credit support for any Indebtedness of the Company or any of
         its Restricted Subsidiaries; and

                  (e) does not directly or through any of its Subsidiaries own
         any Capital Stock of, or own or hold any Lien on any property of, the
         Company or any of its Restricted Subsidiaries.

Any such designation by the Board of Directors shall be evidenced to the Trustee
by filing with the Trustee a Board Resolution giving effect to such designation
and an Officers' Certificate certifying that such designation complied with the
foregoing conditions and was permitted by Section 4.07. If, at any

                                      -25-
<PAGE>

time, any Unrestricted Subsidiary would fail to meet the foregoing requirements
as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
Subsidiary for purposes of this Indenture and any Indebtedness of such
Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of the
Company as of such date (and, if such Indebtedness is not permitted to be
incurred as of such date under Section 4.09, the Company shall be in default of
Section 4.09). The Board of Directors may at any time designate any Unrestricted
Subsidiary to be a Restricted Subsidiary; provided that such designation shall
be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the
Company of any outstanding Indebtedness of such Unrestricted Subsidiary and such
designation shall only be permitted if:

                  (a) such Indebtedness is permitted under the covenant
         described under Section 4.09; and

                  (b) no Default or Event of Default would be in existence
         following such designation.

         "U.S. Person" means a U.S. person as defined in Rule 902(o) under the
Securities Act.

         "Voting Stock" means stock or securities of the class or classes
pursuant to which the holders thereof have the general voting power under
ordinary circumstances to elect at least a majority of the board of directors,
managers or trustees of a Person (irrespective of whether or not at the time
stock of any other class or classes shall have or might have voting power by
reason of the happening of any contingency).

         "Wholly Owned Restricted Subsidiary" means a Restricted Subsidiary all
the Capital Stock (other than directors qualifying shares) of which is owned by
the Company or another Wholly Owned Restricted Subsidiary.

         Section 1.02. Other Definitions.

<Table>
<Caption>
                                                                                                Defined in
        Term                                                                                      Section
        ----                                                                                    ----------
<S>                                                                                             <C>
        "Affiliate Transaction"............................................................        4.11
        "Asset Sale Offer".................................................................        3.09
        "Authentication Order".............................................................        2.02
        "Bankruptcy Law"...................................................................        4.01
        "Change of Control Date"...........................................................        4.14
        "Change of Control Purchase Date"..................................................        4.14
        "Change of Control Purchase Offer".................................................        4.14
        "Change of Control Purchase Price".................................................        4.14
        "Covenant Defeasance"..............................................................        8.03
        "DTC"..............................................................................        2.03
        "Defeasance Redemption Date".......................................................        8.04
        "Event of Default".................................................................        6.01
</Table>

                                      -26-
<PAGE>

<Table>
<Caption>
                                                                                                Defined in
        Term                                                                                      Section
        ----                                                                                    ----------
<S>                                                                                             <C>
        "Excess Proceeds"..................................................................        4.10
        "incur"............................................................................        4.09
        "Legal Defeasance".................................................................        8.02
        "Non-Payment Default"..............................................................        10.03
        "Payment Default"..................................................................        10.03
        "Payment Blockage Notice"..........................................................        10.03
        "Offer Amount".....................................................................        3.09
        "Offer Payment Date"...............................................................        4.14
        "Offer Period".....................................................................        3.09
        "Paying Agent".....................................................................        2.03
        "Purchase Date"....................................................................        3.09
        "Registrar"........................................................................        2.03
        "Restricted Payment"...............................................................        4.07
        "Surviving Entity".................................................................        5.01
        </Table>

         Section 1.03. Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture.

         The following TIA terms used in this Indenture have the following
meanings:

         "indenture securities" means the Notes;

         "indenture security Holder" means a Holder of a Note;

         "indenture to be qualified" means this Indenture;

         "indenture trustee" or "institutional trustee" means the Trustee; and

         "obligor" on the Notes and the Note Guarantees means the Company and
the Guarantors, respectively, and any successor obligor upon the Notes and the
Note Guarantees, respectively.

         All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
have the meanings so assigned to them.

         Section 1.04. Rules of Construction. Unless the context otherwise
requires:

                  (a) a term has the meaning assigned to it;

                  (b) an accounting term not otherwise defined has the meaning
         assigned to it in accordance with GAAP;

                                      -27-
<PAGE>

                  (c) "or" is not exclusive;

                  (d) words in the singular include the plural, and in the
         plural include the singular;

                  (e) provisions apply to successive events and transactions;
         and

                  (f) references to sections of or rules under the Securities
         Act shall be deemed to include substitute, replacement of successor
         sections or rules adopted by the SEC from time to time.

                                   ARTICLE 2.
                                   THE NOTES

         Section 2.01. Form and Dating.

         (a) General. The Notes and the Trustee's certificate of authentication
shall be substantially in the form of Exhibit A hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note shall be dated the date of its authentication. The Notes shall
be in denominations of $1,000 and integral multiples thereof.

         The terms and provisions contained in the Notes shall constitute, and
are hereby expressly made, a part of this Indenture and the Company, the
Guarantors and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. However,
to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be
controlling.

         (b) Global Notes. Notes issued in global form shall be substantially in
the form of Exhibit A attached hereto (including the Global Note Legend thereon
and the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Notes issued in definitive form shall be substantially in the form of
Exhibit A attached hereto (but without the Global Note Legend thereon and
without the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Each Global Note shall represent such of the outstanding Notes as
shall be specified therein and each shall provide that it shall represent the
aggregate principal amount of outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented
thereby may from time to time be reduced or increased, as appropriate, to
reflect exchanges and redemptions. Any endorsement of a Global Note to reflect
the amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with written
instructions given by the Holder thereof as required by Section 2.06 hereof.

         (c) Euroclear and Clearstream Procedures Applicable. The provisions of
the "Operating Procedures of the Euroclear System" and "Terms and Conditions
Governing Use of Euroclear" and the "General Terms and Conditions of
Clearstream" and "Customer Handbook" of Cedel Bank (as adopted by Clearstream)
and any alternative or additional procedures from time to time adopted by
Euroclear or Clearstream shall be applicable to transfers of beneficial
interests in the Regulation S Global Notes that are held by Participants through
Euroclear or Clearstream.

                                      -28-
<PAGE>

         Section 2.02. Execution and Authentication. One or more Officers shall
sign the Notes for the Company by manual or facsimile signature. The Company's
seal shall be reproduced on the Notes and may be in facsimile form.

         If an Officer whose signature is on a Note no longer holds that office
at the time a Note is authenticated, the Note shall nevertheless be valid.

         A Note shall not be valid until authenticated by the manual signature
of the Trustee. The signature shall be conclusive evidence that the Note has
been authenticated under this Indenture.

         The Trustee shall, upon a written order of the Company signed by one or
more Officers (an "Authentication Order"), authenticate Notes for original issue
on the Issue Date in aggregate principal amount not to exceed $260,000,000
(other than as provided in Section 2.07). The Trustee shall authenticate
Additional Notes thereafter in an unlimited amount (so long as permitted by the
terms of this Indenture) for original issue upon one or more Authentication
Orders in aggregate principal amount as specified in such order (other than as
provided in Section 2.07). Each such Authentication Order shall specify the
amount of Notes to be authenticated, whether the Notes are to be Initial Notes,
Additional Notes or Exchange Notes and whether the Notes are to be issued as
Definitive Notes or Global Notes or such other information as the Trustee shall
reasonably request.

         The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Notes. An authenticating agent may authenticate Notes
whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with Holders or an
Affiliate of the Company.

         Section 2.03. Registrar and Paying Agent. The Company shall maintain an
office or agency where Notes may be presented for registration of transfer or
for exchange ("Registrar") and an office or agency where Notes may be presented
for payment ("Paying Agent"). The Registrar shall keep a register of the Notes
and of their transfer and exchange. The Company may appoint one or more
co-registrars and one or more additional paying agents. The term "Registrar"
includes any co-registrar and the term "Paying Agent" includes any additional
paying agent. The Company may change any Paying Agent or Registrar without
notice to any Holder. The Company shall notify the Trustee in writing of the
name and address of any Agent not a party to this Indenture. If the Company
fails to appoint or maintain another entity as Registrar or Paying Agent, the
Trustee shall act as such. The Company or any of its Subsidiaries may act as
Paying Agent or Registrar.

         The Company initially appoints The Depository Trust Company ("DTC") to
act as Depositary with respect to the Global Notes.

         The Company initially appoints the Trustee to act as the Registrar and
Paying Agent and to act as Custodian with respect to the Global Notes.

         Section 2.04. Paying Agent to Hold Money in Trust. The Company shall
require each Paying Agent other than the Trustee to agree in writing that the
Paying Agent will hold in trust for the benefit of Holders or the Trustee all
money held by the Paying Agent for the payment of principal, premium,

                                      -29-
<PAGE>

if any, or interest on the Notes, and will notify the Trustee in writing of any
default by the Company in making any such payment. While any such default
continues, the Trustee may require a Paying Agent to pay all money held by it to
the Trustee. The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent
(if other than the Company or a Subsidiary) shall have no further liability for
the money. If the Company or a Subsidiary acts as Paying Agent, it shall
segregate and hold in a separate trust fund for the benefit of the Holders all
money held by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to the Company, the Trustee shall serve as Paying Agent for
the Notes.

         Section 2.05. Holder Lists. The Trustee shall preserve in as current a
form as is reasonably practicable the most recent list available to it of the
names and addresses of all Holders and shall otherwise comply with TIA Section
312(a). If the Trustee is not the Registrar, the Company shall furnish to the
Trustee at least seven Business Days before each interest payment date and at
such other times as the Trustee may request in writing, a list in such form and
as of such date as the Trustee may reasonably require of the names and addresses
of the Holders and the Company shall otherwise comply with TIA Section 312(a).

         Section 2.06. Transfer and Exchange.

         (a) Transfer and Exchange of Global Notes. A Global Note may not be
transferred as a whole except by the Depositary to a nominee of the Depositary,
by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. All Global Notes will be exchanged by
the Company for Definitive Notes if (i) the Company delivers to the Trustee
written notice from the Depositary that it is unwilling or unable to continue to
act as Depositary or that it is no longer a clearing agency registered under the
Exchange Act and, in either case, a successor Depositary is not appointed by the
Company within 120 days after the date of such notice from the Depositary or
(ii) the Company in its sole discretion determines that the Global Notes (in
whole but not in part) should be exchanged for Definitive Notes and delivers a
written notice to such effect to the Trustee. Upon the occurrence of either of
the preceding events in (i) or (ii) above, Definitive Notes shall be issued in
such names as the Depositary shall instruct the Trustee in writing. Global Notes
also may be exchanged or replaced, in whole or in part, as provided in Sections
2.07 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or
in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.06
or Section 2.07 or 2.10 hereof, shall be authenticated and delivered in the form
of, and shall be, a Global Note. A Global Note may not be exchanged for another
Note other than as provided in this Section 2.06(a), however, beneficial
interests in a Global Note may be transferred and exchanged as provided in
Section 2.06(b), (c) or (f) hereof.

         (b) Transfer and Exchange of Beneficial Interests in the Global Notes.
The transfer and exchange of beneficial interests in the Global Notes shall be
effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to the extent required by the Securities Act. Transfers of
beneficial interests in the Global Notes also shall require compliance with
either subparagraph (i) or (ii) below, as applicable, as well as one or more of
the other following subparagraphs, as applicable:

                                      -30-
<PAGE>

                  (i) Transfer of Beneficial Interests in the Same Global Note.
         Beneficial interests in any Restricted Global Note may be transferred
         to Persons who take delivery thereof in the form of a beneficial
         interest in the same Restricted Global Note in accordance with the
         transfer restrictions set forth in the Private Placement Legend;
         provided, however, that prior to the expiration of the Restricted
         Period, transfers of beneficial interests in the Regulation S Global
         Note may not be made to a U.S. Person or for the account or benefit of
         a U.S. Person (other than an Initial Purchaser). Beneficial interests
         in any Unrestricted Global Note may be transferred to Persons who take
         delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note. No written orders or instructions shall be
         required to be delivered to the Registrar to effect the transfers
         described in this Section 2.06(b)(i).

                 (ii) All Other Transfers and Exchanges of Beneficial Interests
         in Global Notes. In connection with all transfers and exchanges of
         beneficial interests that are not subject to Section 2.06(b)(i) above,
         the transferor of such beneficial interest must deliver to the
         Registrar either (A) (1) a written order from a Participant or an
         Indirect Participant given to the Depositary in accordance with the
         Applicable Procedures directing the Depositary to credit or cause to be
         credited a beneficial interest in another Global Note in an amount
         equal to the beneficial interest to be transferred or exchanged and (2)
         instructions given in accordance with the Applicable Procedures
         containing information regarding the Participant account to be credited
         with such increase or (B) (1) a written order from a Participant or an
         Indirect Participant given to the Depositary in accordance with the
         Applicable Procedures directing the Depositary to cause to be issued a
         Definitive Note in an amount equal to the beneficial interest to be
         transferred or exchanged and (2) instructions given by the Depositary
         to the Registrar containing information regarding the Person in whose
         name such Definitive Note shall be registered to effect the transfer or
         exchange referred to in (1) above. Upon consummation of an Exchange
         Offer by the Company in accordance with Section 2.06(f) hereof, the
         requirements of this Section 2.06(b)(ii) shall be deemed to have been
         satisfied upon receipt by the Registrar of the instructions contained
         in the Letter of Transmittal delivered by the holder of such beneficial
         interests in the Restricted Global Notes. Upon satisfaction of all of
         the requirements for transfer or exchange of beneficial interests in
         Global Notes contained in this Indenture and the Notes or otherwise
         applicable under the Securities Act, the Trustee shall adjust the
         principal amount of the relevant Global Note(s) pursuant to Section
         2.06(h) hereof.

                (iii) Transfer of Beneficial Interests to Another Restricted
         Global Note. A beneficial interest in any Restricted Global Note may be
         transferred to a Person who takes delivery thereof in the form of a
         beneficial interest in another Restricted Global Note if the transfer
         complies with the requirements of Section 2.06(b)(ii) above and the
         Registrar receives the following:

                           (A) if the transferee will take delivery in the form
                  of a beneficial interest in the 144A Global Note, then the
                  transferor must deliver a certificate in the form of Exhibit B
                  hereto, including the certifications in item (1) thereof;

                                      -31-
<PAGE>

                           (B) if the transferee will take delivery in the form
                  of a beneficial interest in the Regulation S Global Note, then
                  the transferor must deliver a certificate in the form of
                  Exhibit B hereto, including the certifications in item (2)
                  thereof; and

                           (C) if the transferee will take delivery in the form
                  of a beneficial interest in the IAI Global Note, then the
                  transferor must deliver a certificate in the form of Exhibit B
                  hereto, including the certifications and certificates and
                  Opinion of Counsel required by item (3) thereof, if
                  applicable.

                 (iv) Transfer and Exchange of Beneficial Interests in a
         Restricted Global Note for Beneficial Interests in an Unrestricted
         Global Note. A beneficial interest in any Restricted Global Note may be
         exchanged by any holder thereof for a beneficial interest in an
         Unrestricted Global Note or transferred to a Person who takes delivery
         thereof in the form of a beneficial interest in an Unrestricted Global
         Note if the exchange or transfer complies with the requirements of
         Section 2.06(b)(ii) above and:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the holder of the beneficial interest to be
                  transferred, in the case of an exchange, or the transferee, in
                  the case of a transfer, certifies in the applicable Letter of
                  Transmittal that it is not (1) a broker-dealer, (2) a Person
                  participating in the distribution of the Exchange Notes or (3)
                  a Person who is an affiliate (as defined in Rule 144) of the
                  Company;

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Participating
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                           (D) the Registrar receives the following:

                                    (1) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for a beneficial
                           interest in an Unrestricted Global Note, a
                           certificate from such holder in the form of Exhibit C
                           hereto, including the certifications in item (1)(a)
                           thereof; or

                                    (2) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           beneficial interest in an Unrestricted Global Note, a
                           certificate from such holder in the form of Exhibit B
                           hereto, including the certifications in item (4)
                           thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance

                                      -32-
<PAGE>

                  with the Securities Act and that the restrictions on transfer
                  contained herein and in the Private Placement Legend are no
                  longer required in order to maintain compliance with the
                  Securities Act.

         If any such transfer is effected pursuant to subparagraph (B) or (D)
above at a time when an Unrestricted Global Note has not yet been issued, the
Company shall issue and, upon receipt of an Authentication Order in accordance
with Section 2.02 hereof, the Trustee shall authenticate one or more
Unrestricted Global Notes in an aggregate principal amount equal to the
aggregate principal amount of beneficial interests transferred pursuant to
subparagraph (B) or (D) above.

         Beneficial interests in an Unrestricted Global Note cannot be exchanged
for, or transferred to Persons who take delivery thereof in the form of, a
beneficial interest in a Restricted Global Note.

         (c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

                  (i) Beneficial Interests in Restricted Global Notes to
         Restricted Definitive Notes. If any holder of a beneficial interest in
         a Restricted Global Note proposes to exchange such beneficial interest
         for a Restricted Definitive Note or to transfer such beneficial
         interest to a Person who takes delivery thereof in the form of a
         Restricted Definitive Note, then, upon receipt by the Registrar of the
         following documentation:

                           (A) if the holder of such beneficial interest in a
                  Restricted Global Note proposes to exchange such beneficial
                  interest for a Restricted Definitive Note, a certificate from
                  such holder in the form of Exhibit C hereto, including the
                  certifications in item (2)(a) thereof;

                           (B) if such beneficial interest is being transferred
                  to a QIB in accordance with Rule 144A under the Securities
                  Act, a certificate to the effect set forth in Exhibit B
                  hereto, including the certifications in item (1) thereof;

                           (C) if such beneficial interest is being transferred
                  to a Non-U.S. Person in an offshore transaction in accordance
                  with Rule 903 or Rule 904 under the Securities Act, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (2) thereof;

                           (D) if such beneficial interest is being transferred
                  pursuant to an exemption from the registration requirements of
                  the Securities Act in accordance with Rule 144 under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(a)
                  thereof;

                           (E) if such beneficial interest is being transferred
                  to an Institutional Accredited Investor in reliance on an
                  exemption from the registration requirements of the Securities
                  Act other than those listed in subparagraphs (B) through (D)
                  above, a certificate to the effect set forth in Exhibit B
                  hereto, including the certifications, certificates and Opinion
                  of Counsel required by item (3) thereof, if applicable;

                                      -33-
<PAGE>

                           (F) if such beneficial interest is being transferred
                  to the Company or any of its Subsidiaries, a certificate to
                  the effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(b) thereof; or

                           (G) if such beneficial interest is being transferred
                  pursuant to an effective registration statement under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (3)(c)
                  thereof,

         the Trustee shall cause the aggregate principal amount of the
         applicable Global Note to be reduced accordingly pursuant to Section
         2.06(h) hereof, and the Company shall execute and the Trustee shall
         authenticate and deliver to the Person designated in the instructions a
         Definitive Note in the appropriate principal amount. Any Definitive
         Note issued in exchange for a beneficial interest in a Restricted
         Global Note pursuant to this Section 2.06(c) shall be registered in
         such name or names and in such authorized denomination or denominations
         as the holder of such beneficial interest shall instruct the Registrar
         through instructions from the Depositary and the Participant or
         Indirect Participant. The Trustee shall deliver such Definitive Notes
         to the Persons in whose names such Notes are so registered. Any
         Definitive Note issued in exchange for a beneficial interest in a
         Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear
         the Private Placement Legend and shall be subject to all restrictions
         on transfer contained therein.

                 (ii) Beneficial Interests in Restricted Global Notes to
         Unrestricted Definitive Notes. A holder of a beneficial interest in a
         Restricted Global Note may exchange such beneficial interest for an
         Unrestricted Definitive Note or may transfer such beneficial interest
         to a Person who takes delivery thereof in the form of an Unrestricted
         Definitive Note only if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the holder of such beneficial interest, in the
                  case of an exchange, or the transferee, in the case of a
                  transfer, certifies in the applicable Letter of Transmittal
                  that it is not (1) a broker-dealer, (2) a Person participating
                  in the distribution of the Exchange Notes or (3) a Person who
                  is an affiliate (as defined in Rule 144) of the Company;

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Participating
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                           (D) the Registrar receives the following:

                                    (1) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for a Definitive
                           Note that does not bear the Private Placement Legend,
                           a certificate from such holder in

                                      -34-
<PAGE>

                           the form of Exhibit C hereto, including the
                           certifications in item (1)(b) thereof; or

                                    (2) if the holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           Definitive Note that does not bear the Private
                           Placement Legend, a certificate from such holder in
                           the form of Exhibit B hereto, including the
                           certifications in item (4) thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                  (iii) Beneficial Interests in Unrestricted Global Notes to
         Unrestricted Definitive Notes. If any holder of a beneficial interest
         in an Unrestricted Global Note proposes to exchange such beneficial
         interest for a Definitive Note or to transfer such beneficial interest
         to a Person who takes delivery thereof in the form of a Definitive
         Note, then, upon satisfaction of the conditions set forth in Section
         2.06(b)(ii) hereof, the Trustee shall cause the aggregate principal
         amount of the applicable Global Note to be reduced accordingly pursuant
         to Section 2.06(h) hereof, and the Company shall execute and the
         Trustee shall authenticate and deliver to the Person designated in the
         instructions a Definitive Note in the appropriate principal amount. Any
         Definitive Note issued in exchange for a beneficial interest pursuant
         to this Section 2.06(c)(iii) shall be registered in such name or names
         and in such authorized denomination or denominations as the holder of
         such beneficial interest shall instruct the Registrar through
         instructions from the Depositary and the Participant or Indirect
         Participant. The Trustee shall deliver such Definitive Notes to the
         Persons in whose names such Notes are so registered. Any Definitive
         Note issued in exchange for a beneficial interest pursuant to this
         Section 2.06(c)(iii) shall not bear the Private Placement Legend.

         (d) Transfer and Exchange of Definitive Notes for Beneficial Interests.

                  (i) Restricted Definitive Notes to Beneficial Interests in
         Restricted Global Notes. If any Holder of a Restricted Definitive Note
         proposes to exchange such Note for a beneficial interest in a
         Restricted Global Note or to transfer such Restricted Definitive Notes
         to a Person who takes delivery thereof in the form of a beneficial
         interest in a Restricted Global Note, then, upon receipt by the
         Registrar of the following documentation:

                           (A) if the Holder of such Restricted Definitive Note
                  proposes to exchange such Note for a beneficial interest in a
                  Restricted Global Note, a certificate from such Holder in the
                  form of Exhibit C hereto, including the certifications in item
                  (2)(b) thereof;

                                      -35-
<PAGE>

                           (B) if such Restricted Definitive Note is being
                  transferred to a QIB in accordance with Rule 144A under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (1)
                  thereof;

                           (C) if such Restricted Definitive Note is being
                  transferred to a Non-U.S. Person in an offshore transaction in
                  accordance with Rule 903 or Rule 904 under the Securities Act,
                  a certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (2) thereof;

                           (D) if such Restricted Definitive Note is being
                  transferred pursuant to an exemption from the registration
                  requirements of the Securities Act in accordance with Rule 144
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(a) thereof;

                           (E) if such Restricted Definitive Note is being
                  transferred to an Institutional Accredited Investor in
                  reliance on an exemption from the registration requirements of
                  the Securities Act other than those listed in subparagraphs
                  (B) through (D) above, a certificate to the effect set forth
                  in Exhibit B hereto, including the certifications,
                  certificates and Opinion of Counsel required by item (3)
                  thereof, if applicable;

                           (F) if such Restricted Definitive Note is being
                  transferred to the Company or any of its Subsidiaries, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (3)(b) thereof; or

                           (G) if such Restricted Definitive Note is being
                  transferred pursuant to an effective registration statement
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(c) thereof,

         the Trustee shall cancel the Restricted Definitive Note, increase or
         cause to be increased the aggregate principal amount of, in the case of
         clause (A) above, the appropriate Restricted Global Note, in the case
         of clause (B) above, the 144A Global Note, in the case of clause (C)
         above, the Regulation S Global Note, and in all other cases, the IAI
         Global Note.

                 (ii) Restricted Definitive Notes to Beneficial Interests in
         Unrestricted Global Notes. A Holder of a Restricted Definitive Note may
         exchange such Note for a beneficial interest in an Unrestricted Global
         Note or transfer such Restricted Definitive Note to a Person who takes
         delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note only if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the Holder, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                                      -36-
<PAGE>

                           (B) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement;

                           (C) such transfer is effected by a Participating
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                           (D) the Registrar receives the following:

                                    (1) if the Holder of such Definitive Notes
                           proposes to exchange such Notes for a beneficial
                           interest in the Unrestricted Global Note, a
                           certificate from such Holder in the form of Exhibit C
                           hereto, including the certifications in item (1)(c)
                           thereof; or

                                    (2) if the Holder of such Definitive Notes
                           proposes to transfer such Notes to a Person who shall
                           take delivery thereof in the form of a beneficial
                           interest in the Unrestricted Global Note, a
                           certificate from such Holder in the form of Exhibit B
                           hereto, including the certifications in item (4)
                           thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                  Upon satisfaction of the conditions of any of the
         subparagraphs in this Section 2.06(d)(ii), the Trustee shall cancel the
         Definitive Notes and increase or cause to be increased the aggregate
         principal amount of the Unrestricted Global Note.

                (iii) Unrestricted Definitive Notes to Beneficial Interests in
         Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note
         may exchange such Note for a beneficial interest in an Unrestricted
         Global Note or transfer such Definitive Notes to a Person who takes
         delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Note at any time. Upon receipt of a request for
         such an exchange or transfer, the Trustee shall cancel the applicable
         Unrestricted Definitive Note and increase or cause to be increased the
         aggregate principal amount of one of the Unrestricted Global Notes.

                  If any such exchange or transfer from a Definitive Note to a
         beneficial interest is effected pursuant to subparagraphs (ii)(B),
         (ii)(D) or (iii) above at a time when an Unrestricted Global Note has
         not yet been issued, the Company shall issue and, upon receipt of an
         Authentication Order in accordance with Section 2.02 hereof, the
         Trustee shall authenticate one or more Unrestricted Global Notes in an
         aggregate principal amount equal to the principal amount of Definitive
         Notes so transferred.

                                      -37-
<PAGE>

         (e) Transfer and Exchange of Definitive Notes for Definitive Notes.
Upon written request by a Holder of Definitive Notes and such Holder's
compliance with the provisions of this Section 2.06(e), the Registrar shall
register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder shall present or
surrender to the Registrar the Definitive Notes duly endorsed or accompanied by
a written instruction of transfer in form satisfactory to the Registrar duly
executed by such Holder or by its attorney, duly authorized in writing. In
addition, the requesting Holder shall provide any additional certifications,
documents and information, as applicable, required pursuant to the following
provisions of this Section 2.06(e).

                  (i) Restricted Definitive Notes to Restricted Definitive
         Notes. Any Restricted Definitive Note may be transferred to and
         registered in the name of Persons who take delivery thereof in the form
         of a Restricted Definitive Note if the Registrar receives the
         following:

                           (A) if the transfer will be made pursuant to Rule
                  144A under the Securities Act, then the transferor must
                  deliver a certificate in the form of Exhibit B hereto,
                  including the certifications in item (1) thereof;

                           (B) if the transfer will be made pursuant to Rule 903
                  or Rule 904, then the transferor must deliver a certificate in
                  the form of Exhibit B hereto, including the certifications in
                  item (2) thereof; and

                           (C) if the transfer will be made pursuant to any
                  other exemption from the registration requirements of the
                  Securities Act, then the transferor must deliver a certificate
                  in the form of Exhibit B hereto, including the certifications,
                  certificates and Opinion of Counsel required by item (3)
                  thereof, if applicable.

                 (ii) Restricted Definitive Notes to Unrestricted Definitive
         Notes. Any Restricted Definitive Note may be exchanged by the Holder
         thereof for an Unrestricted Definitive Note or transferred to a Person
         or Persons who take delivery thereof in the form of an Unrestricted
         Definitive Note if:

                           (A) such exchange or transfer is effected pursuant to
                  the Exchange Offer in accordance with the Registration Rights
                  Agreement and the Holder, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (1) a
                  broker-dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

                           (B) any such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement;

                           (C) any such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D) the Registrar receives the following:

                                      -38-
<PAGE>

                                    (1) if the Holder of such Restricted
                           Definitive Notes proposes to exchange such Notes for
                           an Unrestricted Definitive Note, a certificate from
                           such Holder in the form of Exhibit C hereto,
                           including the certifications in item (1)(d) thereof;
                           or

                                    (2) if the Holder of such Restricted
                           Definitive Notes proposes to transfer such Notes to a
                           Person who shall take delivery thereof in the form of
                           an Unrestricted Definitive Note, a certificate from
                           such Holder in the form of Exhibit B hereto,
                           including the certifications in item (4) thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests, an Opinion of Counsel in form
                  reasonably acceptable to the Company to the effect that such
                  exchange or transfer is in compliance with the Securities Act
                  and that the restrictions on transfer contained herein and in
                  the Private Placement Legend are no longer required in order
                  to maintain compliance with the Securities Act.

                  (iii) Unrestricted Definitive Notes to Unrestricted Definitive
         Notes. A Holder of Unrestricted Definitive Notes may transfer such
         Notes to a Person who takes delivery thereof in the form of an
         Unrestricted Definitive Note. Upon receipt of a written request to
         register such a transfer, the Registrar shall register the Unrestricted
         Definitive Notes pursuant to the instructions from the Holder thereof.

         (f) Exchange Offer. Upon the occurrence of the Exchange Offer in
accordance with the Registration Rights Agreement, the Company shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.02, the
Trustee shall authenticate (i) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not
broker-dealers, (y) they are not participating in a distribution of the Exchange
Notes and (z) they are not affiliates (as defined in Rule 144) of the Company,
and accepted for exchange in the Exchange Offer and (ii) Definitive Notes in an
aggregate principal amount equal to the principal amount of the Restricted
Definitive Notes accepted for exchange in the Exchange Offer. Concurrently with
the issuance of such Notes, the Trustee shall cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Company shall execute and the Trustee shall authenticate and deliver to the
Persons designated by the Holders of Definitive Notes so accepted Definitive
Notes in the appropriate principal amount.

         (g) Legends. The following legends shall appear on the face of all
Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

                  (i) Private Placement Legend.

                           (A) Except as permitted by subparagraph (B) below,
                  each Global Note and each Definitive Note (and all Notes
                  issued in exchange therefor or substitution thereof) shall
                  bear the legend in substantially the following form:

                                      -39-
<PAGE>

                           "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S.
                  SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
                  AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED
                  STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS
                  EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE
                  HOLDER (1) REPRESENTS THAT (A) IT IS A "QUALIFIED
                  INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
                  SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
                  THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
                  RULE 904 UNDER THE SECURITIES ACT OR (C) IT IS AN ACCREDITED
                  INVESTOR (AS DEFINED IN RULE 501(a)(1), (2), (3), OR (7) UNDER
                  THE SECURITIES ACT (AN "ACCREDITED INVESTOR"), (2) AGREES THAT
                  IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF
                  THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY
                  EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B)
                  INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN
                  COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE
                  THE UNITED STATES TO AN ACCREDITED INVESTOR THAT, PRIOR TO
                  SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A
                  U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING
                  CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE
                  RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM OF WHICH
                  LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS SECURITY),
                  (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
                  COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT (IF
                  AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION
                  PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE),
                  (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION
                  REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION
                  OF COUNSEL IF THE COMPANY SO REQUESTS), OR (G) PURSUANT TO AN
                  EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
                  (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS
                  SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
                  OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS
                  SECURITY WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS
                  SECURITY, IF THE PROPOSED TRANSFEREE IS AN ACCREDITED
                  INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO
                  THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL
                  OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY
                  REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT
                  TO AN EXEMPTION FROM, OR IN A TRANSACTION

                                      -40-
<PAGE>

                  NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
                  SECURITIES ACT. AS USED HEREIN, THE TERMS "OFFSHORE
                  TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE
                  MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES
                  ACT."

                           (B) Notwithstanding the foregoing, any Global Note or
                  Definitive Note issued pursuant to subparagraphs (b)(iv),
                  (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f)
                  to this Section 2.06 (and all Notes issued in exchange
                  therefor or substitution thereof) shall not bear the Private
                  Placement Legend.

                  (ii) Global Note Legend. Each Global Note shall bear a legend
         in substantially the following form:

                           "THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS
                  DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE
                  IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF,
                  AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
                  EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
                  MAY BE REQUIRED PURSUANT TO SECTION 2.07 OF THE INDENTURE,
                  (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN
                  PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS
                  GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
                  PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL
                  NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE
                  PRIOR WRITTEN CONSENT OF THE COMPANY."

         (h) Cancellation and/or Adjustment of Global Notes. At such time as all
beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note shall be returned to or
retained and canceled by the Trustee in accordance with Section 2.11 hereof. At
any time prior to such cancellation, if any beneficial interest in a Global Note
is exchanged for or transferred to a Person who will take delivery thereof in
the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Note, such other Global Note shall be increased accordingly
and an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

         (i) General Provisions Relating to Transfers and Exchanges.

                                      -41-
<PAGE>

                  (i) To permit registrations of transfers and exchanges, the
         Company shall execute and the Trustee shall authenticate Global Notes
         and Definitive Notes upon the Company's order or at the Registrar's
         request.

                  (ii) No service charge shall be made to a holder of a
         beneficial interest in a Global Note or to a Holder of a Definitive
         Note for any registration of transfer or exchange, but the Company and
         the Trustee may require payment of a sum sufficient to cover any
         transfer tax or similar governmental charge payable in connection
         therewith (other than any such transfer taxes or similar governmental
         charge payable upon exchange or transfer pursuant to Sections 2.10,
         3.06, 3.09, 4.10, 4.14 and 9.05 hereof).

                  (iii) The Registrar shall not be required to register the
         transfer of or exchange any Note selected for redemption in whole or in
         part, except the unredeemed portion of any Note being redeemed in part.

                  (iv) All Global Notes and Definitive Notes issued upon any
         registration of transfer or exchange of Global Notes or Definitive
         Notes shall be the valid obligations of the Company, evidencing the
         same debt, and entitled to the same benefits under this Indenture, as
         the Global Notes or Definitive Notes surrendered upon such registration
         of transfer or exchange.

                  (v) The Company shall not be required (A) to issue, to
         register the transfer of or to exchange any Notes during a period
         beginning at the opening of business 15 days before the day of any
         selection of Notes for redemption under Section 3.02 hereof and ending
         at the close of business on the day of selection, (B) to register the
         transfer of or to exchange any Note so selected for redemption in whole
         or in part, except the unredeemed portion of any Note being redeemed in
         part or (C) to register the transfer of or to exchange a Note between a
         record date and the next succeeding Interest Payment Date.

                  (vi) Prior to due presentment for the registration of a
         transfer of any Note, the Trustee, any Agent and the Company may deem
         and treat the Person in whose name any Note is registered as the
         absolute owner of such Note for the purpose of receiving payment of
         principal of and interest on such Notes and for all other purposes, and
         none of the Trustee, any Agent or the Company shall be affected by
         notice to the contrary.

                  (vii) The Trustee shall authenticate Global Notes and
         Definitive Notes in accordance with the provisions of Section 2.02
         hereof.

                  (viii) All certifications, certificates and Opinions of
         Counsel required to be submitted to the Registrar pursuant to this
         Section 2.06 to effect a registration of transfer or exchange may be
         submitted by facsimile.

         Section 2.07. Replacement Notes. If any mutilated Note is surrendered
to the Trustee or the Company and the Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Note, the Company shall
issue and the Trustee, upon receipt of an Authentication Order, shall
authenticate a replacement Note if the Trustee's requirements are met. If
required by the Trustee or the Company, an indemnity bond must be supplied by
the Holder that is sufficient in the judgment of the Trustee

                                      -42-
<PAGE>

and the Company to protect the Company, the Trustee, any Agent and any
authenticating agent from any loss that any of them may suffer if a Note is
replaced. The Company may charge for its expenses in replacing a Note.

         Every replacement Note is an additional obligation of the Company and
shall be entitled to all of the benefits of this Indenture equally and
proportionately with all other Notes duly issued hereunder.

         Section 2.08. Outstanding Notes. The Notes outstanding at any time are
all the Notes authenticated by the Trustee except for those canceled by it,
those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions hereof,
and those described in this Section as not outstanding. Except as set forth in
Section 2.09 hereof, a Note does not cease to be outstanding because the Company
or an Affiliate of the Company holds the Note.

         If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a bona fide purchaser.

         If the principal amount of any Note is considered paid under Section
4.01 hereof, it ceases to be outstanding and interest on it ceases to accrue.

         If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds, on a redemption date or maturity date, money
sufficient to pay Notes payable on that date, then on and after that date such
Notes shall be deemed to be no longer outstanding and shall cease to accrue
interest.

         Section 2.09. Treasury Notes. In determining whether the Holders of the
required principal amount of Notes have concurred in any direction, waiver or
consent, Notes owned by the Company, or by any Affiliate of the Company, shall
be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes that the Trustee actually knows are so
owned shall be so disregarded.

         Section 2.10. Temporary Notes. Until certificates representing Notes
are ready for delivery, the Company may prepare and the Trustee, upon receipt of
an Authentication Order, shall authenticate temporary Notes. Temporary Notes
shall be substantially in the form of certificated Notes but may have variations
that the Company considers appropriate for temporary Notes and as shall be
reasonably acceptable to the Trustee. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate definitive Notes in exchange
for temporary Notes.

         Holders of temporary Notes shall be entitled to all of the benefits of
this Indenture.

         Section 2.11. Cancellation. The Company at any time may deliver Notes
to the Trustee for cancellation. The Registrar and Paying Agent shall forward to
the Trustee any Notes surrendered to them for registration of transfer, exchange
or payment. The Trustee and no one else shall cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and
shall destroy canceled Notes (subject to the record retention requirement of the
Exchange Act). The Company may not issue new Notes to replace Notes that it has
paid or that have been delivered to the Trustee for cancellation.

                                      -43-
<PAGE>

         Section 2.12. Defaulted Interest. If the Company defaults in a payment
of interest on the Notes, it shall pay the defaulted interest in any lawful
manner plus, to the extent lawful, interest payable on the defaulted interest,
to the Persons who are Holders on a subsequent special record date, in each case
at the rate provided in the Notes and in Section 4.01 hereof. The Company shall
notify the Trustee in writing of the amount of defaulted interest proposed to be
paid on each Note and the date of the proposed payment. The Company shall fix or
cause to be fixed each such special record date and payment date; provided that
no such special record date shall be less than 10 days prior to the related
payment date for such defaulted interest. At least 15 days before the special
record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) shall mail or cause to be
mailed to Holders a notice that states the special record date, the related
payment date and the amount of such interest to be paid.

         Section 2.13. Record Date. The Company may set a record date for
purposes of determining the identity of Holders entitled to vote or to consent
to any action by vote or consent authorized or permitted by Sections 6.04 and
6.05.

         Section 2.14. CUSIP Numbers. The Company in issuing the Notes may use
"CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use
CUSIP numbers in notices of redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in
any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not
be affected by any defect in or the omission of such numbers. The Company will
promptly notify the Trustee in writing of any change in the CUSIP numbers.

                                   ARTICLE 3.
                            REDEMPTION AND PREPAYMENT

         Section 3.01. Notices to Trustee. If the Company elects to redeem Notes
pursuant to the optional redemption provisions of Section 3.07 hereof, it shall
furnish to the Trustee, at least 30 days but not more than 60 days before a
redemption date, an Officers' Certificate setting forth (i) the clause of this
Indenture pursuant to which the redemption shall occur, (ii) the redemption
date, (iii) the principal amount of Notes to be redeemed, (iv) the redemption
price and (v) the CUSIP numbers of the Notes to be redeemed.

         Section 3.02. Selection of Notes to Be Redeemed. If less than all of
the Notes are to be redeemed or purchased in an offer to purchase at any time,
the Trustee shall select the Notes to be redeemed or purchased among the Holders
in compliance with the requirements of the principal national securities
exchange, if any, on which the Notes are listed or, if the Notes are not so
listed, on a pro rata basis, by lot or in accordance with any other method the
Trustee in its sole discretion considers fair and appropriate. In the event of
partial redemption by lot, the particular Notes to be redeemed shall be
selected, unless otherwise provided herein, not less than 30 nor more than 60
days prior to the redemption date by the Trustee from the outstanding Notes not
previously called for redemption.

                                      -44-
<PAGE>

         The Trustee shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial
redemption, the principal amount thereof to be redeemed. Notes and portions of
Notes selected shall be in amounts of $1,000 or whole multiples of $1,000;
except that if all of the Notes of a Holder are to be redeemed, the entire
outstanding amount of Notes held by such Holder, even if not a multiple of
$1,000, shall be redeemed. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption also
apply to portions of Notes called for redemption.

         Section 3.03. Notice of Redemption. Subject to the provisions of
Section 3.09 hereof, at least 30 days but not more than 60 days before a
redemption date, the Company shall mail or cause to be mailed, by first class
mail (at its own expense), a notice of redemption to each Holder whose Notes are
to be redeemed at its registered address.

         The notice shall identify the Notes to be redeemed, including the CUSIP
numbers, and shall state:

                  (a) the redemption date;

                  (b) the redemption price and the amount of accrued and unpaid
         interest, if any, to be paid;

                  (c) if any Note is being redeemed in part, the portion of the
         principal amount of such Note to be redeemed and that, after the
         redemption date upon surrender of such Note, a new Note or Notes in
         principal amount equal to the unredeemed portion shall be issued upon
         cancellation of the original Note;

                  (d) the name and address of the Paying Agent;

                  (e) that Notes called for redemption must be surrendered to
         the Paying Agent to collect the redemption price;

                  (f) that, unless the Company defaults in making such
         redemption payment, interest on Notes called for redemption ceases to
         accrue on and after the redemption date;

                  (g) the paragraph of the Notes and/or Section of this
         Indenture pursuant to which the Notes called for redemption are being
         redeemed; and

                  (h) that no representation is made as to the correctness or
         accuracy of the CUSIP number, if any, listed in such notice or printed
         on the Notes.

         At the Company's written request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; provided, however, that the
Company shall have delivered to the Trustee, at least 45 days prior to the
redemption date (unless a shorter notice shall be satisfactory to the Trustee),
an Officers' Certificate requesting that the Trustee give such notice and
setting forth the information to be stated in such notice as provided in the
preceding paragraph.

                                      -45-
<PAGE>

         Section 3.04. Effect of Notice of Redemption. Once notice of redemption
is mailed in accordance with Section 3.03 hereof, Notes called for redemption
become irrevocably due and payable on the redemption date at the redemption
price. A notice of redemption may not be conditional.

         Section 3.05. Deposit of Redemption Price. One Business Day prior to
the redemption date, the Company shall deposit with the Trustee or with the
Paying Agent money sufficient to pay the redemption price of and accrued
interest on all Notes to be redeemed on that date and any amounts owed the
Trustee. The Trustee or the Paying Agent shall promptly return to the Company
any money deposited with the Trustee or the Paying Agent by the Company in
excess of the amounts necessary to pay the redemption price of, and accrued
interest on, all Notes to be redeemed and any amounts owed the Trustee.

         If the Company complies with the provisions of the preceding paragraph,
on and after the redemption date, interest shall cease to accrue on the Notes or
the portions of Notes called for redemption. If a Note is redeemed on or after
an interest record date but on or prior to the related interest payment date,
then any accrued and unpaid interest shall be paid to the Person in whose name
such Note was registered at the close of business on such record date. If any
Note called for redemption shall not be so paid upon surrender for redemption
because of the failure of the Company to comply with the preceding paragraph,
interest shall be paid on the unpaid principal, from the redemption date until
such principal is paid, and to the extent lawful on any interest not paid on
such unpaid principal, in each case at the rate provided in the Notes and in
Section 4.01 hereof.

         Section 3.06. Notes Redeemed in Part. Upon surrender of a Note that is
redeemed in part, the Company shall issue and, upon the Company's written
request, the Trustee shall authenticate for the Holder at the expense of the
Company a new Note equal in principal amount to the unredeemed portion of the
Note surrendered.

         Section 3.07. Optional Redemption. (a) Except as set forth in paragraph
(b) below, the Notes are not redeemable before May 1, 2007. Thereafter, the
Company may redeem the Notes at its option, in whole or in part, upon not less
than 30 nor more than 60 days' notice, at the following redemption prices
(expressed as percentages of the principal amount thereof) if redeemed during
the twelve month period commencing on May 1 of the year set forth below.

<Table>
<Caption>
                                     YEAR                              PERCENTAGE
                                     ----                              ----------
<S>                                                                    <C>
                     2007................................                104.938%
                     2008................................                103.292%
                     2009................................                101.646%
                     2010 and thereafter.................                100.000%
</Table>

         In addition, the Company must pay all accrued and unpaid interest on
the Notes redeemed.

         (b) Notwithstanding the foregoing, up to 35% of the initial aggregate
principal amount of the Notes may be redeemed on or prior to May 1, 2005, at the
option of the Company, within 90 days of an Equity Offering with the net
proceeds of such offering at a redemption price equal to 109.875% of

                                      -46-
<PAGE>

the principal amount thereof, together with accrued and unpaid interest, if any,
to the date of redemption (subject to the right of Holders on relevant Record
Dates to receive interest due on relevant Interest Payment Dates); provided,
that after giving effect to such redemption at least 65% of the Notes originally
issued under this Indenture remains outstanding.

         Other than as specifically provided in this Section 3.07, any
redemption pursuant to this Section 3.07 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 hereof.

         Section 3.08. Mandatory Redemption. The Company shall not be required
to make mandatory redemption payments with respect to the Notes prior to
Maturity.

         Section 3.09. Offer to Purchase by Application of Excess Proceeds. In
the event that, pursuant to Section 4.10 hereof, the Company shall be required
to commence an offer to all Holders and holders of other Pari Passu Indebtedness
containing provisions similar to those set forth in this Indenture with respect
to offers to purchase or redeem with the proceeds of sales of assets to purchase
Notes (an "Asset Sale Offer"), it shall follow the procedures specified below.

         The Asset Sale Offer shall remain open for a period of 20 Business Days
following its commencement and no longer, except to the extent that a longer
period is required by applicable law (the "Offer Period"). No later than five
Business Days after the termination of the Offer Period (the "Purchase Date"),
the Company shall purchase the principal amount of Notes required to be
purchased pursuant to Section 4.10 hereof (the "Offer Amount") or, if less than
the Offer Amount has been tendered, all Notes tendered in response to the Asset
Sale Offer. Payment for any Notes so purchased shall be made in the same manner
as interest payments are made.

         If the Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest shall
be paid to the Person in whose name a Note is registered at the close of
business on such record date, and no additional interest shall be payable to
Holders who tender Notes pursuant to the Asset Sale Offer.

         Upon the commencement of an Asset Sale Offer, the Company shall send,
by first class mail, a notice to the Trustee and each of the Holders. The notice
shall contain all instructions and materials necessary to enable such Holders to
tender Notes pursuant to the Asset Sale Offer. The Asset Sale Offer shall be
made to all Holders. The notice, which shall govern the terms of the Asset Sale
Offer, shall state:

                  (a) that the Asset Sale Offer is being made pursuant to this
         Section 3.09 and Section 4.10 hereof and the length of time the Asset
         Sale Offer shall remain open;

                  (b) the Offer Amount, the purchase price and the Purchase
         Date;

                  (c) that any Note not tendered or accepted for payment shall
         continue to accrue interest;

                                      -47-
<PAGE>

                  (d) that, unless the Company defaults in making such payment,
         any Note accepted for payment pursuant to the Asset Sale Offer shall
         cease to accrue interest after the Purchase Date;

                  (e) that Holders electing to have a Note purchased pursuant to
         an Asset Sale Offer may elect to have Notes purchased in integral
         multiples of $1,000 only;

                  (f) that Holders electing to have a Note purchased pursuant to
         any Asset Sale Offer shall be required to surrender the Note, with the
         form entitled "Option of Holder to Elect Purchase" on the reverse of
         the Note completed, or transfer by book-entry transfer, to the Company,
         a depositary, if appointed by the Company, or a Paying Agent at the
         address specified in the notice at least three days before the Purchase
         Date;

                  (g) that Holders shall be entitled to withdraw their election
         if the Company, the depositary or the Paying Agent, as the case may be,
         receives, not later than the expiration of the Offer Period, a
         telegram, telex, facsimile transmission or letter setting forth the
         name of the Holder, the principal amount of the Note the Holder
         delivered for purchase and a statement that such Holder is withdrawing
         his election to have such Note purchased;

                  (h) that, if the aggregate principal amount of Notes
         surrendered by Holders exceeds the Offer Amount, the Company shall
         select the Notes to be purchased on a pro rata basis (with such
         adjustments as may be deemed appropriate by the Company so that only
         Notes in denominations of $1,000, or integral multiples thereof, shall
         be purchased); and

                  (i) that Holders whose Notes were purchased only in part shall
         be issued new Notes equal in principal amount to the unpurchased
         portion of the Notes surrendered (or transferred by book-entry
         transfer).

         On or before the Purchase Date, the Company shall, to the extent
lawful, accept for payment, on a pro rata basis to the extent necessary, the
Offer Amount of Notes or portions thereof tendered pursuant to the Asset Sale
Offer, or if less than the Offer Amount has been tendered, all Notes tendered,
and shall deliver to the Trustee an Officers' Certificate stating that such
Notes or portions thereof were accepted for payment by the Company in accordance
with the terms of this Section 3.09. The Company, the Depositary or the Paying
Agent at the expense of the Company, as the case may be, shall promptly (but in
any case not later than five days after the Purchase Date) mail or deliver to
each tendering Holder an amount equal to the purchase price of the Notes
tendered by such Holder and accepted by the Company for purchase, and the
Company shall promptly issue a new Note, and the Trustee, upon written request
from the Company shall authenticate and mail or deliver at the expense of the
Company, such new Note to such Holder, in a principal amount equal to any
unpurchased portion of the Note surrendered. Any Note not so accepted shall be
promptly mailed or delivered by the Company to the Holder thereof.

         Other than as specifically provided in this Section 3.09, any purchase
pursuant to this Section 3.09 shall be made pursuant to the provisions of
Sections 3.01 through 3.06 hereof.

                                      -48-
<PAGE>

                                   ARTICLE 4.
                                   COVENANTS

         Section 4.01. Payment of Notes. The Company shall pay or cause to be
paid the principal of, premium, if any, and interest on the Notes on the dates
and in the manner provided in the Notes. Principal, premium, if any, and
interest shall be considered paid on the date due if the Paying Agent, if other
than the Company or a Subsidiary, holds as of 10:00 a.m. Eastern Time on the due
date money deposited by the Company in immediately available funds and
designated for and sufficient to pay all principal, premium, if any, and
interest then due.

         The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate equal to
the then applicable interest rate on the Notes to the extent lawful; it shall
pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

         Section 4.02. Maintenance of Office or Agency. The Company shall
maintain in the Borough of Manhattan, the City of New York, an office or agency
(which may be an office of the Trustee or an affiliate of the Trustee, Registrar
or co-registrar) where Notes may be surrendered for registration of transfer or
for exchange and where notices and demands to or upon the Company in respect of
the Notes and this Indenture may be served. The Company shall give prompt
written notice to the Trustee of the location, and any change in the location,
of such office or agency. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office of the Trustee.

         The Company may also from time to time designate one or more other
offices or agencies where the Notes may be presented or surrendered for any or
all such purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in the Borough of
Manhattan, the City of New York for such purposes. The Company shall give prompt
written notice to the Trustee of any such designation or rescission and of any
change in the location of any such other office or agency.

         The Company hereby designates the Corporate Trust Office of the Trustee
as one such office or agency of the Company in accordance with Section 2.03.

         Section 4.03. Reports. (a) Whether or not required by the rules and
regulations of the Commission, including the reporting requirements of Section
13 or 15(d) of the Exchange Act, so long as any Notes are outstanding, the
Company will furnish to the Holders:

                           (i) all quarterly and annual financial information
                  that would be required to be contained in a filing with the
                  Commission on Forms 10-Q and 10-K if the Company were required
                  to file such forms, including a "Management's Discussion and
                  Analysis of Financial Condition and Results of Operations"
                  that describes the financial condition and results of
                  operations of the Company and its Subsidiaries and, with
                  respect to the

                                      -49-
<PAGE>

                  annual information only, a report on the consolidated
                  financial statements required by Form 10-K by the Company's
                  independent certified public accountants; and

                           (ii) all reports that would be required to be filed
                  with the Commission on Form 8-K if the Company were required
                  to file such reports. In addition, whether or not required by
                  the rules and regulations of the Commission, the Company will
                  file a copy of all such information with the Commission for
                  public availability (unless the Commission will not accept
                  such a filing) and make such information available to
                  investors or prospective investors who request it in writing.

         (b) The Company will furnish to the Holders or beneficial holders of
Notes and prospective purchasers of Notes designated by the Holders, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act until such time as the Company either exchanges all of
the Notes for the Exchange Notes or has registered all of the Notes for resale
under the Securities Act.

         Section 4.04. Compliance Certificate. (a) The Company and each
Guarantor (to the extent that such Guarantor is so required under the TIA) shall
deliver to the Trustee, within 90 days after the end of each fiscal year, an
Officers' Certificate stating that a review of the activities of the Company and
its Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Company and the Guarantors (as applicable) have kept, observed, performed and
fulfilled their obligations under this Indenture, and further stating, as to
each such Officer signing such certificate, that to the best of his or her
knowledge the Company and the Guarantors (as applicable) have kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and
are not in default in the performance or observance of any of the terms,
provisions and conditions of this Indenture (or, if a Default or Event of
Default shall have occurred, describing all such Defaults or Events of Default
of which he or she may have knowledge and what action the Company or the
Guarantors (as applicable) is taking or proposes to take with respect thereto)
and that to the best of his or her knowledge no event has occurred and remains
in existence by reason of which payments on account of the principal of or
interest, if any, on the Notes is prohibited or if such event has occurred, a
description of the event and what action the Company or the Guarantors (as
applicable) is taking or proposes to take with respect thereto.

         (b) So long as not contrary to the then current recommendations of the
American Institute of Certified Public Accountants, the year-end financial
statements delivered pursuant to Section 4.03(a) above shall be accompanied by a
written statement of the Company's independent public accountants (who shall be
a firm of established national reputation) that in making the examination
necessary for certification of such financial statements, nothing has come to
their attention that would lead them to believe that the Company has violated
any provisions of Article 4 or Article 5 hereof or, if any such violation has
occurred, specifying the nature and period of existence thereof, it being
understood that such accountants shall not be liable directly or indirectly to
any Person for any failure to obtain knowledge of any such violation.

         (c) The Company shall, so long as any of the Notes are outstanding,
deliver to the Trustee, forthwith upon any Officer becoming aware of any Default
or Event of Default (but in any event, within

                                      -50-
<PAGE>

ten days after the occurrence of such Default or Event of Default), an Officers'
Certificate specifying such Default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

         Section 4.05. Taxes. The Company shall pay, and shall cause each of its
Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and
governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders.

         Section 4.06. Stay, Extension and Usury Laws. The Company and each of
the Guarantors covenants (to the extent that it may lawfully do so) that it
shall not at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, that may affect the covenants or
the performance of this Indenture; and the Company and each of the Guarantors
(to the extent that it may lawfully do so) hereby expressly waives all benefit
or advantage of any such law, and covenants that it shall not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to
the Trustee, but shall suffer and permit the execution of every such power as
though no such law has been enacted.

         Section 4.07. Restricted Payments. (a) The Company will not, and will
not permit any Restricted Subsidiary of the Company to, directly or indirectly:

                           (i) declare or pay any dividend on, or make any
                  distribution to, the holders of, any Capital Stock of the
                  Company or of any Restricted Subsidiary (other than dividends
                  or distributions payable (A) solely in shares of Qualified
                  Capital Stock of the Company or such Restricted Subsidiary or
                  in options, warrants or other rights to purchase such
                  Qualified Capital Stock or (B) by a Restricted Subsidiary to
                  the Company or any Wholly Owned Restricted Subsidiary);

                           (ii) purchase, redeem or otherwise acquire or retire
                  for value, directly or indirectly, any Capital Stock of the
                  Company or any Restricted Subsidiary or any options, warrants
                  or other rights to acquire such Capital Stock held by any
                  Person (other than the Company or any Wholly Owned Restricted
                  Subsidiary of the Company);

                           (iii) make any principal payment on, or redeem,
                  repurchase, defease or otherwise acquire or retire for value,
                  prior to any scheduled repayment, sinking fund payment or
                  maturity, any Subordinated Indebtedness; or

                           (iv) make any Investment (other than any Permitted
                  Investment) in any Person (such payments described in clauses
                  (i) through (iv) and not excepted thereby are collectively
                  referred to herein as "Restricted Payments");

unless at the time of and immediately after giving effect to the proposed
Restricted Payment (the amount of any such Restricted Payment, if other than
cash, being the Fair Market Value thereof as determined by the Board of
Directors of the Company, whose determination shall be conclusive and evidenced
by a Board Resolution):

                                      -51-
<PAGE>

                  (1) no Default or Event of Default shall have occurred and be
         continuing;

                  (2) the Company could incur $1.00 of additional Indebtedness
         (other than Permitted Indebtedness) in accordance with Section 4.09
         hereof; and

                  (3) such Restricted Payment, together with the aggregate of
         all other Restricted Payments made by the Company and its Restricted
         Subsidiaries on or after the Issue Date, is less than the sum of,
         without duplication:

                           (w) 50% of the aggregate cumulative Consolidated Net
                  Income of the Company for the period (taken as one accounting
                  period) from the first day of the quarter beginning after the
                  Issue Date to the end of the Company's most recently ended
                  fiscal quarter for which financial statements are available at
                  the time of such Restricted Payment (or, if such Consolidated
                  Net Income for such period is a deficit, less 100% of such
                  deficit); plus

                           (x) 100% of the aggregate net cash proceeds received
                  by the Company as capital contributions or from the issue or
                  sale after the Issue Date of Equity Interests of the Company
                  or of debt securities of the Company that have been converted
                  into such Equity Interests (other than Equity Interests (or
                  convertible debt securities) sold to a Restricted Subsidiary
                  of the Company and other than Redeemable Capital Stock or debt
                  securities that have been converted into Redeemable Capital
                  Stock); plus

                           (y) any cash received by the Company after the date
                  of initial issuance of the Notes as a dividend or distribution
                  from any of its Unrestricted Subsidiaries less the cost of
                  disposition and taxes, if any (but in each case excluding any
                  such amounts included in Consolidated Net Income); plus

                           (z) $62.0 million.

         (b) Notwithstanding paragraph (a) above, the Company and its Restricted
Subsidiaries may take the following actions so long as (with respect to clauses
(ii), (iii), (iv) and (vi) below) at the time of and immediately after giving
effect thereto no Default or Event of Default shall have occurred and be
continuing:

                           (i) the payment of any dividend within 60 days after
                  the date of declaration thereof, if such dividend would have
                  been permitted on the date of declaration;

                           (ii) the purchase, redemption or other acquisition or
                  retirement for value of any shares of Capital Stock of the
                  Company, in exchange for, or out of the net cash proceeds of,
                  a substantially concurrent issuance and sale (other than to a
                  Restricted Subsidiary) of shares of Capital Stock of the
                  Company (other than Redeemable Capital Stock, unless the
                  redemption provisions of such Redeemable Capital Stock
                  prohibit the redemption thereof prior to the date on which the
                  Capital Stock to be acquired or retired was, by its terms,
                  required to be redeemed);

                                      -52-
<PAGE>

                           (iii) the purchase, redemption, defeasance or other
                  acquisition or retirement for value of any Subordinated
                  Indebtedness (other than Redeemable Capital Stock) in exchange
                  for or out of the net cash proceeds of a substantially
                  concurrent issuance and sale (other than to a Restricted
                  Subsidiary) of shares of Capital Stock of the Company (other
                  than Redeemable Capital Stock, unless the redemption
                  provisions of such Redeemable Capital Stock prohibit the
                  redemption thereof prior to the Stated Maturity of the
                  Subordinated Indebtedness to be acquired or retired);

                           (iv) the purchase, redemption, defeasance or other
                  acquisition or retirement for value of any Subordinated
                  Indebtedness (other than Redeemable Capital Stock) in exchange
                  for, or out of the net cash proceeds of a substantially
                  concurrent incurrence or sale (other than to a Restricted
                  Subsidiary) of, new Subordinated Indebtedness of the Company
                  or a Guarantor, as the case may be, so long as:

                                    (A) the principal amount of such new
                           Subordinated Indebtedness does not exceed the
                           principal amount (or, if such Subordinated
                           Indebtedness being refinanced provides for an amount
                           less than the principal amount thereof to be due and
                           payable upon a declaration of acceleration thereof,
                           such lesser amount as of the date of determination)
                           of the Subordinated Indebtedness being so purchased,
                           redeemed, defeased, acquired or retired, plus the
                           amount of any premium required to be paid in
                           connection with such refinancing pursuant to the
                           terms of the Subordinated Indebtedness refinanced or
                           the amount of any premium reasonably determined by
                           the Company as necessary to accomplish such
                           refinancing, plus the amount of reasonable expenses
                           of the Company or such Guarantor, as the case may be,
                           incurred in connection with such refinancing;

                                    (B) such new Subordinated Indebtedness is
                           subordinated to the Notes or the Note Guarantee of
                           such Guarantor, as the case may be, at least to the
                           same extent as such Subordinated Indebtedness so
                           purchased, redeemed, defeased, acquired or retired;
                           and

                                    (C) such new Subordinated Indebtedness has
                           an Average Life longer than the Average Life of the
                           Notes and a final Stated Maturity of principal later
                           than the final Stated Maturity of principal of the
                           Notes;

                           (v) the payment of a dividend on the Company's
                  Capital Stock (other than Redeemable Capital Stock) of up to
                  $0.08 per quarter per share (or up to $0.32 per annum per
                  share; provided that dividend payments may not be cumulated
                  for more than four consecutive quarters);

                           (vi) the purchase, redemption or other acquisition or
                  retirement for value of shares of Capital Stock of the Company
                  issued pursuant to options granted under stock option plans of
                  the Company, in order to pay withholding taxes due as a result
                  of income recognized upon the exercise of such options;
                  provided that:

                                      -53-
<PAGE>

                                    (A) the Company is permitted, by the terms
                           of such plans, to effect such purchase, redemption or
                           other acquisition or retirement for value of such
                           shares; and

                                    (B) the aggregate consideration paid by the
                           Company for such shares so purchased, redeemed or
                           otherwise acquired or retired for value does not
                           exceed $2 million during any fiscal year of the
                           Company; and

                           (vii) the repurchase of Capital Stock of the Company
                  deemed to occur upon the exercise of stock options if such
                  Capital Stock represents a portion of the exercise price
                  thereof.

         (c) The actions described in clauses (ii), (iii), (v) and (vi) of
paragraph (b) above shall be Restricted Payments that shall be permitted to be
taken in accordance with paragraph (b) above but shall reduce the amount that
would otherwise be available for Restricted Payments under clause (3) of
paragraph (a) above.

         Section 4.08. Dividend and Other Payment Restrictions Affecting
Subsidiaries. The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to
exist or become effective any encumbrance or restriction on the ability of any
Restricted Subsidiary to:

                  (a) (i) pay dividends or make any other distributions to the
         Company or any of its Restricted Subsidiaries (A) on its Capital Stock
         or (B) with respect to any other interest or participation in, or
         measured by, its profits, or (ii) pay any indebtedness owed to the
         Company or any of its Restricted Subsidiaries;

                  (b) make loans or advances to the Company or any of its
         Restricted Subsidiaries;

                  (c) transfer any of its properties or assets to the Company or
         any of its Restricted Subsidiaries;

                  (d) grant Liens in favor of Holders; or

                  (e) guarantee the Notes;

         except in each case for such encumbrances or restrictions existing
         under or by reason of:

                           (i) Indebtedness of the Company or any Restricted
                  Subsidiary outstanding on the Issue Date;

                           (ii) the Credit Agreement as in effect as of the
                  Issue Date, and any amendments, modifications, restatements,
                  renewals, increase, supplements, refunding, replacements or
                  refinancings thereof; provided that such amendments,
                  modifications, restatements, renewals, increase, supplements,
                  refundings, replacements or refinancings

                                      -54-
<PAGE>

                  are no more restrictive with respect to such dividend and
                  other payment restrictions than those contained in the Credit
                  Agreement in effect on the Issue Date;

                           (iii) this Indenture and the Notes;

                           (iv) applicable law;

                           (v) any instrument governing Indebtedness or Capital
                  Stock of a Person acquired by the Company or any of its
                  Restricted Subsidiaries as in effect at the time of such
                  acquisition (except to the extent such Indebtedness was
                  incurred in connection with or in contemplation of such
                  acquisition), which encumbrance or restriction is not
                  applicable to any Person, or the property or assets of any
                  Person, other than the Person, or the property or assets of
                  the Person, so acquired;

                           (vi) by reason of customary non-assignment provisions
                  in existing and future leases entered into in the ordinary
                  course of business and consistent with past practices;

                           (vii) purchase money obligations for property
                  acquired in the ordinary course of business that impose
                  restrictions of the nature described in clause (c) above on
                  the property so acquired; and

                           (viii) restrictions incurred by the Company or any
                  Restricted Subsidiary in connection with any Permitted
                  Receivables Financing.

         Section 4.09. Incurrence of Indebtedness. The Company will not, and
will not permit any of its Restricted Subsidiaries to, create, assume, or
directly or indirectly guarantee or in any other manner become directly or
indirectly liable for the payment of, or otherwise incur (collectively,
"incur"), any Indebtedness (including any Acquired Indebtedness) other than
Permitted Indebtedness. Notwithstanding the foregoing, the Company and the
Guarantors may incur Indebtedness if, at the time of such event (and after
giving effect on a pro forma basis to:

                           (i) the incurrence of such Indebtedness and (if
                  applicable) the application of the proceeds therefrom,
                  including to refinance other Indebtedness;

                           (ii) the incurrence, repayment or retirement of any
                  other Indebtedness by the Company or its Restricted
                  Subsidiaries since the first day of such four-quarter period
                  as if such Indebtedness was incurred, repaid or retired at the
                  beginning of such four-quarter period; and

                           (iii) the acquisition (whether by purchase, merger or
                  otherwise) or disposition (whether by sale, merger or
                  otherwise) of any company, entity or business acquired or
                  disposed of by the Company or its Restricted Subsidiaries, as
                  the case may be, since the first day of such four-quarter
                  period as if such acquisition or disposition had occurred at
                  the beginning of such four-quarter period),

                                      -55-
<PAGE>

the Consolidated Fixed Charge Coverage Ratio of the Company for the four full
fiscal quarters immediately preceding such event, taken as one period and
calculated on the assumption that such Indebtedness had been incurred on the
first day of such four-quarter period and, in the case of Acquired Indebtedness,
on the assumption that the related acquisition (whether by means of purchase,
merger or otherwise) also had occurred on such date, with such pro forma
adjustments as may be determined in accordance with GAAP and the rules,
regulations and guidelines of the Commission (including without limitation
Article 11 of Regulation S-X under the Exchange Act), would have been at least
equal to 2.25 to 1.

         Section 4.10. Asset Sales. (a) The Company will not, and will not
permit any of its Restricted Subsidiaries to, engage in an Asset Sale unless the
Company or such Restricted Subsidiary, as the case may be, receives Permitted
Consideration at the time of such Asset Sale at least equal to the Fair Market
Value of the assets or Equity Interests issued or sold or otherwise disposed of.

         (b) Within 360 days after the receipt of any Net Proceeds from an Asset
Sale, the Company or such Restricted Subsidiary must apply such Net Proceeds:

                           (i) to permanently reduce Senior Indebtedness of the
                  Company or one or more Restricted Subsidiaries (and to
                  correspondingly reduce commitments with respect thereto);

                           (ii) to offer to repurchase and repurchase the
                  Existing Senior Subordinated Notes to the extent required by
                  the Indentures governing such Existing Senior Subordinated
                  Notes; or

                           (iii) to make capital expenditures or acquire
                  long-term assets used or useful in its businesses or in
                  businesses similar or related to the businesses of the Company
                  immediately prior to the Issue Date.

         (c) Pending the final application of any such Net Proceeds, the Company
may temporarily reduce Senior Indebtedness or otherwise invest such Net Proceeds
in any manner that is not prohibited by this Indenture. Any Net Proceeds from
Asset Sales that are not applied or invested as provided in the first sentence
of this paragraph will be deemed to constitute "Excess Proceeds." When the
aggregate amount of Excess Proceeds exceeds $15.0 million, the Company will be
required to make an Asset Sale Offer to all Holders of Notes and to holders of
other Pari Passu Indebtedness containing provisions similar to those set forth
in this Indenture with respect to offers to purchase or redeem with the proceeds
of sales of assets to purchase the maximum principal amount of Notes that may be
purchased out of the Excess Proceeds (on a pro rata basis if the amount
available for such repayment, purchase or redemption is less than the aggregate
amount of (x) the principal amount of the Notes tendered in such Asset Sale
Offer and (y) the principal amount of such Pari Passu Indebtedness), at an offer
price in cash in an amount equal to 100% of the principal amount thereof, plus
accrued and unpaid interest, if any, thereon to the date of purchase, in
accordance with Section 3.09 hereof. To the extent that any Excess Proceeds
remain after consummation of an Asset Sale Offer, the Company may use any
remaining Excess Proceeds for general corporate purposes (subject to the
restrictions of this Indenture). Upon completion of such offer to purchase, the
amount of Excess Proceeds shall be reset at zero.

                                      -56-
<PAGE>

         (d) Notwithstanding the foregoing provisions of paragraph (c) of this
Section 4.10, the Company and its Restricted Subsidiaries may sell or dispose of
property, whether in the form of assets or capital stock of a Restricted
Subsidiary, in the aggregate amount not exceeding $15.0 million in any year, and
any notes received by the Company or its Restricted Subsidiaries as
consideration in any disposition made pursuant to such $15.0 million exclusion
from the provisions of this covenant shall not be taken into account in
determining whether the $75.0 million limitation set forth in the definition of
"Permitted Consideration" has been met.

         Section 4.11. Transactions with Affiliates. The Company will not, and
will not permit any of its Restricted Subsidiaries to, directly or indirectly,
make any payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into
or make or amend any contract, agreement, understanding, loan, advance or
guarantee with, or for the benefit of, any Affiliate (other than the Company, a
Wholly Owned Restricted Subsidiary or a Restricted Subsidiary that is a
Guarantor) (each of the foregoing, an "Affiliate Transaction"), unless:

         (a) such Affiliate Transaction is on terms that are no less favorable
to the Company or the relevant Restricted Subsidiary than those that could have
been obtained in a comparable transaction with an unrelated Person; and

         (b) the Company delivers to the Trustee:

                           (i) with respect to any Affiliate Transaction or
                  series of related Affiliate Transactions involving aggregate
                  consideration in excess of $5.0 million, an Officers'
                  Certificate certifying that such Affiliate Transaction
                  complies with clause (a) above and that such Affiliate
                  Transaction has been approved by a majority of the
                  Disinterested Directors; and

                           (ii) with respect to any Affiliate Transaction or
                  series of related Affiliate Transactions involving aggregate
                  consideration in excess of $10.0 million, both an Officers'
                  Certificate referred to in clause (i) and an opinion as to the
                  fairness of such Affiliate Transaction to the Company or the
                  relevant Restricted Subsidiary from a financial point of view
                  issued by an investment banking firm of national standing with
                  total assets in excess of $1.0 billion;

provided, however, that this Section 4.11 shall not apply to (A) fees,
compensation and employee benefits, including bonuses, retirement plans and
stock options, paid to or established for directors and officers of the Company
or any Restricted Subsidiary in the ordinary course of business and approved by
a majority of the Disinterested Directors and (B) transactions in the ordinary
course of business with customers, vendors and suppliers, the terms of which
have been approved in good faith by an officer of the Company.

         Section 4.12. Liens. The Company will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, create, incur, assume or
permit or suffer to exist any Lien securing Indebtedness (other than Senior
Indebtedness) against any asset of the Company or any Restricted Subsidiary
(including Capital Stock of a Restricted Subsidiary), whether owned at the Issue
Date or thereafter

                                      -57-
<PAGE>

acquired, or any proceeds therefrom, or assign or otherwise convey any right to
receive income or profits therefrom, except for Permitted Liens, unless
contemporaneously therewith:

                  (a) in the case of any Lien securing Pari Passu Indebtedness,
         effective provision is made to secure the Notes or such Note Guarantee,
         as the case may be, with a Lien on the same collateral that is senior
         in priority to, or pari passu with, the Lien securing such Pari Passu
         Indebtedness; and

                  (b) in the case of any Lien securing Subordinated
         Indebtedness, effective provision is made to secure the Notes or such
         Note Guarantee, as the case may be, with a Lien on the same collateral
         that is senior in priority to the Lien securing such Subordinated
         Indebtedness.

         Section 4.13. Corporate Existence. Subject to Article 5 hereof, the
Company shall do or cause to be done all things necessary to preserve and keep
in full force and effect (i) its corporate existence, and the corporate,
partnership or other existence of each of its Subsidiaries, in accordance with
the respective organizational documents (as the same may be amended from time to
time) of the Company or any such Subsidiary and (ii) the rights (charter and
statutory), licenses and franchises of the Company and its Subsidiaries;
provided, however, that the Company shall not be required to preserve any such
right, license or franchise, or the corporate, partnership or other existence of
any of its Subsidiaries, if the Board of Directors shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries, taken as a whole, and that the loss thereof is
not adverse in any material respect to the Holders of the Notes.

         Section 4.14. Offer to Repurchase Upon Change of Control. (a) If a
Change of Control shall occur at any time (the date of such occurrence, the
"Change of Control Date"), then each Holder of Notes shall have the right, to
the extent not inconsistent with the Company's bylaws as in effect on the Issue
Date, to require the Company to purchase such Holder's Notes in whole or in part
in integral multiples of $1,000 at a purchase price (the "Change of Control
Purchase Price") in cash in an amount equal to 101% of the principal amount of
such Notes, plus accrued and unpaid interest, if any, at the date of purchase
(the "Change of Control Purchase Date"), pursuant to and in accordance with the
offer described in this Section 4.14 (the "Change of Control Purchase Offer").

         (b) Upon the occurrence of a Change of Control and prior to the mailing
of the notice to Holders provided for in the Indenture, the Company covenants to
either (x) repay in full all Indebtedness under the Credit Agreement and the
Senior Notes or offer to repay in full all such Indebtedness and to repay the
Indebtedness of each of the banks or holders thereunder, as the case may be,
that has accepted such offer or (y) obtain any requisite consent under the
Credit Agreement and the indenture governing the Senior Notes to permit the
purchase of the Notes pursuant to a Change of Control Purchase Offer as provided
for in this Indenture or take any other action as may be required under the
Credit Agreement and the indenture governing the Senior Notes to permit such
purchase.

         (c) Within 30 days following the Change of Control Date the Company
shall send, by first class mail, a notice to the Holders and the Trustee
stating:

                                      -58-
<PAGE>

                           (i) that the Change of Control Offer is being made
                  pursuant to this Section 4.14 and that all Notes validly
                  tendered will be accepted for payment;

                           (ii) the Change of Control Purchase Price and the
                  Change of Control Purchase Date, which shall be a Business Day
                  that is no earlier than 30 days nor later than 60 days from
                  the date such notice is mailed (the "Offer Payment Date")
                  other than as may be required by law;

                           (iii) that any Note not tendered will continue to
                  accrue interest;

                           (iv) that any Note accepted for payment pursuant to
                  the Change of Control Purchase Offer shall cease to accrue
                  interest after the Offer Payment Date unless the Company shall
                  default in the payment of the Change of Control Purchase Price
                  of the Notes and the only remaining right of the Holder is to
                  receive payment of the Change of Control Purchase Price upon
                  surrender of the applicable Note to the Paying Agent;

                           (v) that Holders electing to have a portion of a Note
                  purchased pursuant to a Change of Control Purchase Offer may
                  only elect to have such Note purchased in integral multiples
                  of $1,000;

                           (vi) that if a Holder elects to have a Note purchased
                  pursuant to the Change of Control Purchase Offer it will be
                  required to surrender the Note, with the form entitled "Option
                  of Holder to Elect Purchase" on the reverse of the Note
                  completed, or transfer by book-entry transfer, to the Paying
                  Agent at the address specified in the notice prior to the
                  close of business on the third Business Day prior to the Offer
                  Payment Date;

                           (vii) that a Holder will be entitled to withdraw its
                  election if the Company receives, not later than the third
                  Business Day preceding the Offer Payment Date, a telegram,
                  telex, facsimile transmission or letter setting forth the name
                  of such Holder, the principal amount of Notes such Holder
                  delivered for purchase, and a statement that such Holder is
                  withdrawing its election to have such Note purchased; and

                           (viii) that if Notes are purchased only in part a new
                  Note of the same type will be issued in principal amount equal
                  to the unpurchased portion of the Notes surrendered.

         (d) On or before the Offer Payment Date, the Company shall, to the
extent lawful, accept for payment, all Notes or portions thereof validly
tendered pursuant to the Change of Control Purchase Offer, and shall deliver to
the Trustee an Officers' Certificate stating that such Notes or portions thereof
were accepted for payment by the Company in accordance with the terms of this
Section 4.14. The Company, the Depositary or the Paying Agent, as the case may
be, shall promptly (but in any case not later than five days after the Offer
Payment Date) mail or deliver to each tendering Holder an amount equal to the
purchase price of the Notes tendered by such Holder and accepted by the Company
for purchase, and the Company shall promptly issue a new Note, and the Trustee,
upon written request from the Company shall authenticate and mail or deliver
such new Note to such Holder, in a principal amount

                                      -59-
<PAGE>

equal to any unpurchased portion of the Note surrendered. Any Note not so
accepted shall be promptly mailed or delivered by the Company to the Holder
thereof.

         (e) The Company shall comply with the requirements of Rule 14e-1 under
the Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the purchase
of Notes pursuant to an offer hereunder. To the extent the provisions of any
securities laws or regulations conflict with the provisions under this Section
4.14, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under this
Section 4.14 by virtue thereof.

         (f) The Company is not required to make a Change of Control Purchase
Offer upon a Change of Control if a third party (i) makes the Change of Control
Purchase Offer in the manner and at the time and otherwise in compliance with
the terms of this Section 4.14, and (ii) purchases all Notes validly tendered
and not withdrawn under the Change of Control Purchase Offer.

         Section 4.15. Limitation on Issuances and Sales of Capital Stock of
Subsidiaries. (a) The Company will not, and will not permit any of its
Restricted Subsidiaries to, transfer, convey, sell or otherwise dispose of any
Capital Stock of any Restricted Subsidiary of the Company to any Person (other
than the Company or a Wholly Owned Restricted Subsidiary of the Company),
unless:

                           (i) such transfer, conveyance, sale or other
                  disposition is of all of the Capital Stock of such Restricted
                  Subsidiary owned by the Company and its Restricted
                  Subsidiaries; and

                           (ii) such transaction is made in accordance with
                  Section 4.10 hereof provided that 85% of the proceeds from
                  such a sale of Capital Stock of any Restricted Subsidiary that
                  is a Significant Subsidiary shall consist of cash or Temporary
                  Cash Investments.

         (b) Notwithstanding the foregoing or the provisions of any other
covenant, the Company or any Restricted Subsidiary may sell Qualified Capital
Stock of any Restricted Subsidiary in a Public Equity Offering; provided that:

                           (i) 100% of the Net Proceeds from such Public Equity
                  Offering shall be in cash and shall be applied as provided in
                  Section 4.10 hereof; and

                           (ii) the Tangible Assets of such Restricted
                  Subsidiary do not exceed 10% of the Consolidated Tangible
                  Assets of the Company, determined as of the last day of the
                  quarter ending immediately before the commencement of such
                  Public Equity Offering.

         Section 4.16. Payments for Consent. The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, pay or
cause to be paid any consideration, whether by way of interest, fee or
otherwise, to any Holder for or as an inducement to any consent, waiver or
amendment of any terms or provisions of the Notes unless such consideration is
offered to be paid or agreed to be paid to all Holders which so consent, waive
or agree to amend in the time frame set forth in solicitation documents relating
to such consent, waiver or agreement.

                                      -60-
<PAGE>

         Section 4.17. Additional Guarantees. If the Company or any of its
Restricted Subsidiaries shall acquire or form a Wholly Owned Restricted
Subsidiary or any existing or future majority-owned Restricted Subsidiary shall,
after the Issue Date, guarantee any Indebtedness of the Company or any
Guarantor, the Company will cause any such Restricted Subsidiary (other than an
Investee Store or Joint Venture, provided that such Investee Store or Joint
Venture does not guarantee such Indebtedness of any other Person) to:

                  (a) execute and deliver to the Trustee a supplemental
         indenture in form and substance reasonably satisfactory to the Trustee
         pursuant to which such Restricted Subsidiary shall guarantee all of the
         obligations of the Company with respect to the Notes on a senior
         subordinated basis; and

                  (b) deliver to the Trustee an Opinion of Counsel reasonably
         satisfactory to the Trustee to the effect that a supplemental indenture
         has been duly executed and delivered by such Restricted Subsidiary and
         is in compliance with the terms of this Indenture.

         Section 4.18. Termination of Certain Covenants In Event of Investment
Grade Rating. In the event that each of the Rating Categories assigned to the
Notes by the Rating Agencies is Investment Grade, the obligations under the
covenants contained in Sections 4.07, 4.09, 4.10, 4.11, 4.15 and clause (iii) of
Section 5.01(a) hereof shall cease to apply to the Company and its Restricted
Subsidiaries from and after the date on which the second of the Rating Agencies
notifies the Company of the assignment of such Rating Category. Notwithstanding
the foregoing, if the Rating Category assigned by either Rating Agency to the
Notes should subsequently decline below Investment Grade, the foregoing
covenants and such Consolidated Net Worth requirement shall be reinstituted as
and from the date of such rating decline.

         Section 4.19. Registration Rights. (a) The Company agrees that the
Holders (and any Person that has a beneficial interest in a Note) from time to
time of Registrable Notes are entitled to the benefits of the Registration
Rights Agreement. Pursuant to the Registration Rights Agreement, the Company has
agreed for the benefit of the Holders from time to time of Registrable Notes, at
the Company's expense, to file an Exchange Offer Registration Statement with
respect to an Exchange Offer to exchange the Notes for Exchange Notes of the
Company, guaranteed on a senior basis by the Subsidiary Guarantors, which
Exchange Notes will have terms substantially identical in all material respects
to the Notes. In certain circumstance, the Company may be required by the terms
of the Registration Rights Agreement to file a Shelf Registration Statement
covering resales of the Notes.

         (b) Any amounts of Additional Interest due pursuant to the Registration
Rights Agreement shall be payable in cash on the regular Interest Payment Dates.

         Whenever in this Indenture there is mentioned, in any context, the
payment of the principal of, premium, if any, or interest on, or in respect of,
any Note, such mention shall be deemed to include mention of the payment of
Additional Interest provided for in this Section 4.19.

                                      -61-
<PAGE>

         Section 4.20. Additional Interest. If Additional Interest is payable
pursuant to the Registration Rights Agreement, the Company shall deliver to the
Trustee a certificate to that effect stating the amount of such Additional
Interest that is payable.

         Section 4.21. Limitation on Layering Indebtedness. The Company will
not, and will not permit any of the Guarantors to, incur, create, issue, assume,
guarantee or otherwise become liable for any Indebtedness that is subordinate or
junior in right of payment to any Senior Indebtedness of the Company or such
Guarantor, as the case may be, and senior in any respect in right of payment to
the Notes or such Guarantor's Note Guarantee, as the case may be.

                                   ARTICLE 5.
                                   SUCCESSORS

         Section 5.01. Merger, Consolidation, or Sale of Assets. (a) The Company
shall not, in a single transaction or a series of related transactions,
consolidate with or merge with or into any other Person or sell, assign, convey,
transfer or lease or otherwise dispose of all or substantially all of its
properties and assets to any Person or group of affiliated Persons, or permit
any of its Restricted Subsidiaries to enter into any such transaction or
transactions if such transaction or transactions, in the aggregate, would result
in a sale, assignment, transfer, lease or disposal of all or substantially all
of the properties and assets of the Company and its Restricted Subsidiaries on a
Consolidated basis to any other Person or group of affiliated Persons, unless at
the time and after giving effect thereto:

                           (i) either:

                                    (A) the Company shall be the surviving or
                           continuing corporation; or

                                    (B) the Person (if other than the Company)
                           formed by such consolidation or into which the
                           Company is merged or the Person which acquires by
                           sale, assignment, conveyance, transfer, lease or
                           disposition the properties and assets of the Company
                           substantially as an entirety (the "Surviving Entity")
                           shall be a corporation duly organized and validly
                           existing under the laws of the United States, any
                           state thereof or the District of Columbia and shall,
                           in any case, expressly assume, by a supplemental
                           indenture, executed and delivered to the Trustee, in
                           form satisfactory to the Trustee, all the obligations
                           of the Company, under the Notes and this Indenture,
                           and this Indenture shall remain in full force and
                           effect;

                           (ii) immediately before and immediately after giving
                  effect to such transaction on a pro forma basis (and treating
                  any Indebtedness not previously an obligation of the Company
                  or any of its Restricted Subsidiaries which becomes an
                  obligation of the Company or any of its Restricted
                  Subsidiaries in connection with or as a result of such
                  transaction as having been incurred at the time of such
                  transaction), no Default or Event of Default shall have
                  occurred and be continuing;

                                      -62-
<PAGE>

                           (iii) immediately after giving effect to such
                  transaction, except in the case of a merger of the Company
                  with or into a Wholly Owned Restricted Subsidiary, the Company
                  (or the Surviving Entity if the Company is not the continuing
                  obligor under this Indenture) will have a Consolidated Net
                  Worth equal to or greater than the Consolidated Net Worth of
                  the Company immediately preceding the transaction;

                           (iv) immediately after giving effect to such
                  transaction on a pro forma basis (on the assumption that the
                  transaction occurred on the first day of the four-quarter
                  period immediately prior to the consummation of such
                  transaction with the appropriate adjustments with respect to
                  the transaction being included in such pro forma calculation),
                  the Company (or the Surviving Entity if the Company is not the
                  continuing obligor under this Indenture) could incur $1.00 of
                  additional Indebtedness (other than Permitted Indebtedness)
                  under Section 4.09 above;

                           (v) each Guarantor, unless it is the other party to
                  the transactions described above, shall have confirmed, by
                  supplemental indenture to this Indenture, that its respective
                  Note Guarantee with respect to the Notes shall apply to such
                  Person's obligations under this Indenture and the Notes;

                           (vi) if any of the property or assets of the Company
                  or any of its Restricted Subsidiaries would thereupon become
                  subject to any Lien, the provisions of Section 4.12 hereof are
                  complied with; and

                           (vii) the Company shall have delivered, or caused to
                  be delivered, to the Trustee, in form and substance
                  satisfactory to the Trustee, an Officers' Certificate and an
                  opinion of counsel, each to the effect that such
                  consolidation, merger, sale, assignment, conveyance, transfer,
                  lease or other transaction and the supplemental indenture in
                  respect thereto, if required, comply with the provisions in
                  clauses (i) through (vi) of this paragraph (a) and that all
                  conditions precedent herein provided for relating to such
                  transaction have been complied with.

         (b) The foregoing paragraph (a) shall not prohibit a merger of any
Restricted Subsidiary of the Company with and into the Company or a merger
effected solely for the purpose of reincorporating the Company in another
jurisdiction.

         Section 5.02. Successor Corporation Substituted. Upon any consolidation
or merger, or any sale, assignment, transfer, lease, conveyance or other
disposition of all or substantially all of the assets of the Company in
accordance with Section 5.01 hereof, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such sale,
assignment, transfer, lease, conveyance or other disposition is made shall
succeed to, and be substituted for (so that from and after the date of such
consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the "Company" shall refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; provided, however,

                                      -63-
<PAGE>

that, in the case of a transfer by lease, the predecessor Company shall not be
relieved from the obligation to pay the principal of and interest on the Notes.

                                   ARTICLE 6.
                              DEFAULTS AND REMEDIES

         Section 6.01. Events of Default. An "Event of Default" occurs if:

                  (a) there shall be a default in the payment of any interest on
         the Notes when such interest becomes due and payable, and continuance
         of such default for a period of 30 days;

                  (b) there shall be a default in the payment of the principal
         of (or premium, if any, on) any Notes at Maturity;

                  (c) (i) there shall be a default in the performance, or
         breach, of any covenant or agreement of the Company or any Guarantor
         under this Indenture (other than a default in the performance, or
         breach, of a covenant or agreement which is specifically dealt with in
         the immediately preceding clauses (a) or (b) or in clauses (ii) or
         (iii) of this clause (c)), and such default or breach shall continue
         for a period of 60 days after written notice has been given, by
         certified mail:

                                    (A) to the Company by the Trustee; or

                                    (B) to the Company and the Trustee by the
                           Holders of at least 25% in aggregate principal amount
                           of the outstanding Notes;

                  (ii) there shall be a default in the performance or breach of
         the provisions described in Article 5 or Section 4.10; or

                  (iii) the Company shall have failed to comply with the
         provisions of Section 4.14 for any reason, including the inconsistency
         of such covenant with the Company's Bylaws as in effect on the Issue
         Date;

                  (d) (i) any default in the payment of the principal of any
         Indebtedness shall have occurred under any agreements, indentures or
         instruments under which the Company or any Restricted Subsidiary of the
         Company then has outstanding Indebtedness in excess of $50.0 million
         when the same shall become due and payable in full and such default
         shall have continued after any applicable grace period and shall not
         have been cured or waived; or

                  (ii) an event of default as defined in any of the agreements,
         indentures or instruments described in clause (i) of this clause (d)
         shall have occurred and the Indebtedness thereunder, if not already
         matured at its final maturity in accordance with its terms, shall have
         been accelerated;

                  (e) any Note Guarantee of any Significant Subsidiary
         individually or any other Subsidiaries if such Restricted Subsidiaries
         in the aggregate represent 15% or more of

                                      -64-
<PAGE>

         Consolidated Total Assets with respect to the Notes shall for any
         reason cease to be, or be asserted in writing by the Company, any
         Guarantor or any other Restricted Subsidiary of the Company, as
         applicable, not to be, in full force and effect, enforceable in
         accordance with its terms, except pursuant to the release of any such
         Note Guarantee in accordance with this Indenture;

                  (f) one or more judgments, orders or decrees for the payment
         of money in excess of $50.0 million (net of amounts covered by
         insurance, bond or similar instrument), either individually or in the
         aggregate, shall be entered against the Company or any Restricted
         Subsidiary of the Company or any of their respective properties and
         shall not be discharged and either:

                           (i) any creditor shall have commenced an enforcement
                  proceeding upon such judgment, order or decree; or

                           (ii) there shall have been a period of 60 consecutive
                  days during which a stay of enforcement of such judgment or
                  order, by reason of an appeal or otherwise, shall not be in
                  effect;

                  (g) there shall have been the entry by a court of competent
         jurisdiction of:

                           (i) a decree or order for relief in respect of the
                  Company or any Significant Subsidiary in an involuntary case
                  or proceeding under any applicable Bankruptcy Law; or

                           (ii) a decree or order adjudging the Company or any
                  Significant Subsidiary bankrupt or insolvent, or seeking
                  reorganization, arrangement, adjustment or composition of or
                  in respect of the Company or any Significant Subsidiary under
                  any applicable federal or state law, or appointing a
                  custodian, receiver, liquidator, assignee, trustee,
                  sequestrator or other similar official of the Company or any
                  Significant Subsidiary or of any substantial part of its
                  property, or ordering the winding up or liquidation of its
                  affairs, and any such decree or order for relief shall
                  continue to be in effect, or any such other decree or order
                  shall be unstayed and in effect, for a period of 60
                  consecutive days; or

                  (h) (i) the Company or any Significant Subsidiary commences a
         voluntary case or proceeding under any applicable Bankruptcy Law or any
         other case or proceeding to be adjudicated bankrupt or insolvent;

                  (ii) the Company or any Significant Subsidiary consents to the
         entry of a decree or order for relief in respect of the Company or such
         Significant Subsidiary in an involuntary case or proceeding under any
         applicable Bankruptcy Law or to the commencement of any bankruptcy or
         insolvency case or proceeding against it;

                  (iii) the Company or any Significant Subsidiary files a
         petition or answer or consent seeking reorganization or relief under
         any applicable federal or state law;

                  (iv) the Company or any Significant Subsidiary:

                                      -65-
<PAGE>

                           (A) consents to the filing of such petition or the
                  appointment of, or taking possession by, a custodian,
                  receiver, liquidator, assignee, trustee, sequestrator or
                  similar official of the Company or such Significant Subsidiary
                  or of any substantial part of its property;

                           (B) makes an assignment for the benefit of creditors;
                  or

                           (C) admits in writing its inability to pay its debts
                  generally as they become due; or

                  (v) the Company or any Significant Subsidiary takes any
         corporate action in furtherance of any such actions in this clause (h).

         Section 6.02. Acceleration. (a) If an Event of Default (other than as
specified in clause (g) or (h) of Section 6.01 hereof), shall occur and be
continuing with respect to the Notes, the Trustee, by notice to the Company, or
the Holders of at least 25% in aggregate principal amount then outstanding of
such Notes, by notice in writing to the Trustee and to the Company, may declare
such Notes due and payable immediately. Upon such declaration, all amounts
payable in respect of such Notes shall be immediately due and payable. If an
Event of Default specified in clause (g) or (h) of Section 6.01 hereof occurs
and is continuing, then all of the outstanding Notes under this Indenture shall
ipso facto become and be immediately due and payable without any declaration or
other act on the part of the Trustee thereunder or any Holder.

         (b) After a declaration of acceleration, but before a judgment or
decree for payment of the money due has been obtained by the Trustee, the
Holders of a majority in aggregate principal amount outstanding of Notes, by
written notice to the Company and the Trustee, may annul such declaration if:

                           (i) the Company has paid or deposited with the
                  Trustee a sum sufficient to pay:

                                    (A) all sums paid or advanced by the Trustee
                           under the Notes and the reasonable compensation,
                           expenses, disbursements, and advances of the Trustee,
                           its agents and counsel;

                                    (B) all overdue interest on all of the
                           Notes; and

                                    (C) to the extent that payment of such
                           interest is lawful, interest upon overdue interest at
                           the rate borne by the Notes; and

                           (ii) all Events of Default, other than the
                  non-payment of principal of such Notes which have become due
                  solely by such declaration of acceleration, have been cured or
                  waived in writing.

         (c) The Holders of a majority in aggregate principal amount of the
Notes outstanding may, on behalf of the Holders of all of such Notes, waive any
past defaults under this Indenture except a default in the payment of the
principal of, premium, if any, or interest on any such Note, or in respect of a

                                      -66-
<PAGE>

covenant or provision which under this Indenture cannot be modified or amended
without the consent of the Holder of each such outstanding Note.

         Section 6.03. Other Remedies. If an Event of Default occurs and is
continuing, the Trustee may pursue any available remedy to collect the payment
of principal, premium, if any, and interest on the Notes or to enforce the
performance of any provision of the Notes or this Indenture.

         The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder of a Note in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.

         Section 6.04. Waiver of Past Defaults. Holders of not less than a
majority in aggregate principal amount of the then outstanding Notes by notice
in writing to the Trustee may on behalf of the Holders of all of the Notes waive
an existing Default or Event of Default and its consequences hereunder, except a
continuing Default or Event of Default in the payment of the principal of,
premium, if any, or interest on, the Notes (including in connection with an
offer to purchase) (provided, however, that the Holders of a majority in
aggregate principal amount of the then outstanding Notes may rescind an
acceleration and its consequences, including any related payment default that
resulted from such acceleration). Upon any such waiver, such Default shall cease
to exist, and any Event of Default arising therefrom shall be deemed to have
been cured for every purpose of this Indenture; but no such waiver shall extend
to any subsequent or other Default or impair any right consequent thereon.

         Section 6.05. Control by Majority. Holders of a majority in principal
amount of the then outstanding Notes may, by written notice, direct the time,
method and place of conducting any proceeding for exercising any remedy
available to the Trustee or exercising any trust or power conferred on it.
However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture that the Trustee determines may be unduly prejudicial to the
rights of other Holders of Notes or that may involve the Trustee in any personal
liability.

         Section 6.06. Limitation on Suits. A Holder of a Note may pursue a
remedy with respect to this Indenture or the Notes only if:

                  (a) a Holder gives to the Trustee written notice of a
         continuing Event of Default;

                  (b) the Holders of at least 25% in principal amount of the
         then outstanding Notes make a written request to the Trustee to pursue
         the remedy;

                  (c) such Holder or Holders offer and, if requested, provide to
         the Trustee indemnity satisfactory to the Trustee against any loss,
         liability or expense;

                  (d) the Trustee does not comply with the request within 60
         days after receipt of the request and the offer and, if requested, the
         provision of indemnity; and

                                      -67-
<PAGE>

                  (e) during such 60-day period the Holders of a majority in
         principal amount of the then outstanding Notes do not give the Trustee
         a written direction inconsistent with the request.

         A Holder may not use this Indenture to prejudice the rights of another
Holder or to obtain a preference or priority over another Holder.

         Section 6.07. Rights of Holders of Notes to Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of principal, premium, if any, and interest on the Note so
held, on or after the respective due dates expressed in the Note (including in
connection with an offer to purchase), or to bring suit for the enforcement of
any such payment on or after such respective dates, shall not be impaired or
affected without the consent of such Holder.

         Section 6.08. Collection Suit by Trustee. If an Event of Default
specified in Section 6.01(a) or (b) occurs and is continuing, the Trustee is
authorized to recover judgment in its own name and as trustee of an express
trust against the Company for the whole amount of principal of, premium, if any,
and interest remaining unpaid on the Notes and interest on overdue principal
and, to the extent lawful, interest and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel and any amounts due the Trustee under Section 7.07
hereof.

         Section 6.09. Trustee May File Proofs of Claim. The Trustee is
authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any
claim for the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company (or any other obligor upon the Notes), its
creditors or its property and shall be entitled and empowered to collect,
receive and distribute any money or other property payable or deliverable on any
such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the event
that the Trustee shall consent in writing to the making of such payments
directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 7.07
hereof. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07 hereof out of the estate in any such
proceeding, shall be denied for any reason, payment of the same shall be secured
by a Lien on, and shall be paid out of, any and all distributions, dividends,
money, securities and other properties that the Holders may be entitled to
receive in such proceeding whether in liquidation or under any plan of
reorganization or arrangement or otherwise. Nothing herein contained shall be
deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

         Section 6.10. Priorities. If the Trustee collects any money pursuant to
this Article, it shall pay out the money in the following order:

                                      -68-
<PAGE>

                  First: to the Trustee, its agents and attorneys for amounts
         due under Section 7.07 hereof, including payment of all compensation,
         expense and liabilities incurred, and all advances made, by the Trustee
         and the costs and expenses of collection;

                  Second: to Holders of Notes for amounts due and unpaid on the
         Notes for principal, premium, if any, and interest, ratably, without
         preference or priority of any kind, according to the amounts due and
         payable on the Notes for principal, premium, if any and interest,
         respectively; and

                  Third: to the Company or to such party as a court of competent
         jurisdiction shall direct.

         The Trustee may fix a record date and payment date for any payment to
Holders of Notes pursuant to this Section 6.10.

         Section 6.11. Undertaking for Costs. In any suit for the enforcement of
any right or remedy under this Indenture or in any suit against the Trustee for
any action taken or omitted by it as a Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys' fees, against any party litigant in the
suit, having due regard to the merits and good faith of the claims or defenses
made by the party litigant. This Section does not apply to a suit by the
Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof, or a suit
by Holders of more than 10% in principal amount of the then outstanding Notes.

                                   ARTICLE 7.
                                    TRUSTEE

         Section 7.01. Duties of Trustee. (a) If an Event of Default has
occurred and is continuing, the Trustee shall exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and skill
in its exercise, as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs.

         (b) Except during the continuance of an Event of Default:

                  (i) the duties of the Trustee shall be determined solely by
         the express provisions of this Indenture and the Trustee need perform
         only those duties that are specifically set forth in this Indenture and
         no others, and no implied covenants or obligations shall be read into
         this Indenture against the Trustee; and

                 (ii) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, the Trustee shall examine the certificates and
         opinions to determine whether or not they conform to the requirements
         of this Indenture.

                                      -69-
<PAGE>

         (c) The Trustee may not be relieved from liabilities for its own
grossly negligent action, its own grossly negligent failure to act, or its own
willful misconduct, except that:

                  (i) this paragraph does not limit the effect of paragraph (b)
         of this Section;

                 (ii) the Trustee shall not be liable for any error of judgment
         made in good faith by a Responsible Officer, unless it is conclusively
         determined in a court of competent jurisdiction that the Trustee was
         grossly negligent in ascertaining the pertinent facts; and

                (iii) the Trustee shall not be liable with respect to any action
         it takes or omits to take in good faith in accordance with a written
         direction received by it pursuant to Section 6.05 hereof.

         (d) Whether or not therein expressly so provided, every provision of
this Indenture that in any way relates to the Trustee is subject to paragraphs
(a), (b), and (c) of this Section.

         (e) No provision of this Indenture shall require the Trustee to expend
or risk its own funds or incur any liability, financial or otherwise. The
Trustee shall be under no obligation to exercise any of its rights and powers
under this Indenture at the request of any Holders, unless such Holder shall
have offered to the Trustee security and indemnity satisfactory to it against
any loss, liability or expense.

         (f) The Trustee shall not be liable for interest on any money received
by it except as the Trustee may agree in writing with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.

         Section 7.02. Rights of Trustee. (a) The Trustee may conclusively rely
upon any document believed by it to be genuine and to have been signed or
presented by the proper Person. The Trustee need not investigate any fact or
matter stated in the document.

         (b) Before the Trustee acts or refrains from acting, it may require an
Officers' Certificate or an Opinion of Counsel or both. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on
such Officers' Certificate or Opinion of Counsel. The Trustee may consult with
counsel of its own choosing and, the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection from liability
in respect of any action taken, suffered or omitted by it hereunder in good
faith and in reliance thereon.

         (c) The Trustee may act through its attorneys and agents and shall not
be responsible for the misconduct or negligence of any agent appointed with due
care.

         (d) The Trustee shall not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the rights or
powers conferred upon it by this Indenture.

         (e) Unless otherwise specifically provided in this Indenture, any
demand, request, direction or notice from the Company shall be sufficient if
signed by an Officer of the Company.

                                      -70-
<PAGE>

         (f) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Holders unless such Holders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that might be incurred by it in compliance with such request or direction.

         Section 7.03. Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and
may otherwise deal with the Company or any Affiliate of the Company with the
same rights it would have if it were not Trustee. However, in the event that the
Trustee acquires any conflicting interest it must eliminate such conflict within
90 days, apply to the SEC for permission to continue as trustee or resign. Any
Agent may do the same with like rights and duties. The Trustee is also subject
to Sections 7.10 and 7.11 hereof.

         Section 7.04. Trustee's Disclaimer. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Notes, it shall not be accountable for the Company's use
of the proceeds from the Notes or any money paid to the Company or upon the
Company's direction under any provision of this Indenture, it shall not be
responsible for the use or application of any money received by any Paying Agent
other than the Trustee, and it shall not be responsible for any statement or
recital herein or any statement in the Notes or any other document in connection
with the sale of the Notes or pursuant to this Indenture other than its
certificate of authentication.

         Section 7.05. Notice of Defaults. If a Default or Event of Default
occurs and is continuing and if it is actually known to the Trustee, the Trustee
shall mail to Holders of Notes, at the expense of the Company, a notice of the
Default or Event of Default within 90 days after it occurs. Except in the case
of a Default or Event of Default in payment of principal of, premium, if any, or
interest on any Note, the Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of the Holders of the Notes. In no event shall
the Trustee be charged with the knowledge of any Default or Event of Default
unless it has actual notice thereof.

         Section 7.06. Reports by Trustee to Holders of the Notes. Within 60
days after each May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee shall mail
at the expense of the Company to the Holders of the Notes a brief report dated
as of such reporting date that complies with TIA Section 313(a) (but if no event
described in TIA Section 313(a) has occurred within the twelve months preceding
the reporting date, no report need be transmitted). The Trustee also shall
comply with TIA Section 313(b)(2). The Trustee shall also transmit by mail all
reports as required by TIA Section 313(c).

         A copy of each report at the time of its mailing to the Holders of
Notes shall be mailed to the Company and filed with the SEC and each stock
exchange on which the Notes are listed in accordance with TIA Section 313(d).
The Company shall promptly notify the Trustee in writing when the Notes are
listed on any stock exchange.

         Section 7.07. Compensation and Indemnity. The Company and the
Guarantors shall pay to the Trustee from time to time reasonable compensation
for its acceptance of this Indenture and services hereunder. The Trustee's
compensation shall not be limited by any law on compensation of a trustee of

                                      -71-
<PAGE>

an express trust. The Company and the Guarantors shall reimburse the Trustee
promptly upon request for all reasonable disbursements, advances and expenses
incurred or made by it in addition to the compensation for its services. Such
expenses shall include the reasonable compensation, disbursements and expenses
of the Trustee's agents and counsel.

         The Company and the Guarantors shall indemnify the Trustee against any
and all losses, liabilities or expenses incurred by it arising out of or in
connection with the acceptance or administration of its duties under this
Indenture, including the costs and expenses of enforcing this Indenture against
the Company and the Guarantors (including this Section 7.07) and defending
itself against any claim (whether asserted by the Company or any Holder or any
other person) or liability in connection with the exercise or performance of any
of its powers or duties hereunder, except to the extent any such loss, liability
or expense may be attributable to its gross negligence or bad faith as
conclusively determined in a court of competent jurisdiction. The Trustee shall
notify the Company and the Guarantors promptly of any claim for which it may
seek indemnity. Failure by the Trustee to so notify the Company and the
Guarantors shall not relieve the Company of its obligations hereunder. The
Company shall defend the claim and the Trustee shall cooperate in the defense.
The Trustee may have separate counsel and the Company shall pay the reasonable
fees and expenses of such counsel. The Company and the Guarantors need not pay
for any settlement made without its consent, which consent shall not be
unreasonably withheld.

         The obligations of the Company and the Guarantors under this Section
7.07 shall survive the satisfaction and discharge of this Indenture.

         To secure the Company's payment obligations under this Section 7.07,
the Trustee shall have a Lien prior to the Notes on all money or property held
or collected by the Trustee., except that held in trust to pay principal and
interest on particular Notes. Such Lien shall survive the satisfaction and
discharge of this Indenture.

         When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(g) or (h) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

         The Trustee shall comply with the provisions of TIA Section 313(b)(2)
to the extent applicable.

         Section 7.08. Replacement of Trustee. A resignation or removal of the
Trustee and appointment of a successor Trustee shall become effective only upon
the successor Trustee's acceptance of appointment as provided in this Section.

         The Trustee may resign in writing at any time and be discharged from
the trust hereby created by so notifying the Company. The Holders of a majority
in principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and the Company in writing. The Company may remove the
Trustee if:

                  (a) the Trustee fails to comply with Section 7.10 hereof;

                                      -72-
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                  (b) the Trustee is adjudged a bankrupt or an insolvent or an
         order for relief is entered with respect to the Trustee under any
         Bankruptcy Law;

                  (c) a custodian or public officer takes charge of the Trustee
         or its property; or

                  (d) the Trustee becomes incapable of acting.

         If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.

         If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee, at the Company's
expense, the Company, or the Holders of at least 10% in principal amount of the
then outstanding Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

         If the Trustee, after written request by any Holder who has been a
Holder for at least six months, fails to comply with Section 7.10, such Holder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

         A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee, at the Company's expense, shall
promptly transfer all property held by it as Trustee to the successor Trustee;
provided all sums owing to the Trustee hereunder have been paid and subject to
the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the
Trustee pursuant to this Section 7.08, the Company's obligations under Section
7.07 hereof shall continue for the benefit of the retiring Trustee.

         Section 7.09. Successor Trustee by Merger, etc. If the Trustee
consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation
without any further act shall be the successor Trustee.

         Section 7.10. Eligibility; Disqualification. There shall at all times
be a Trustee hereunder that is a corporation organized and doing business under
the laws of the United States of America or of any state thereof that is
authorized under such laws to exercise corporate trustee power, that is subject
to supervision or examination by federal or state authorities and that has a
combined capital and surplus of at least $100 million as set forth in its most
recent published annual report of condition.

         This Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1), (2) and (5). The Trustee is subject to
TIA Section 310(b).

                                      -73-
<PAGE>

         Section 7.11. Preferential Collection of Claims Against Company. The
Trustee is subject to TIA Section 311(a), excluding any creditor relationship
listed in TIA Section 311(b). A Trustee who has resigned or been removed shall
be subject to TIA Section 311(a) to the extent indicated therein.

                                   ARTICLE 8.
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

         Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance.
The Company may, at the option of its Board of Directors evidenced by a
resolution set forth in an Officers' Certificate, at any time, elect to have
either Section 8.02 or 8.03 hereof be applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article 8.

         Section 8.02. Legal Defeasance and Discharge. Upon the Company's
exercise under Section 8.01 hereof of the option applicable to this Section
8.02, the Company shall, subject to the satisfaction of the conditions set forth
in Section 8.04 hereof, be deemed to have been discharged from its obligations
with respect to all outstanding Notes on the date the conditions set forth below
are satisfied (hereinafter, "Legal Defeasance"). For this purpose, Legal
Defeasance means that the Company shall be deemed to have paid and discharged
the entire Indebtedness represented by the outstanding Notes, which shall
thereafter be deemed to be "outstanding" only for the purposes of Section 8.05
hereof and the other Sections of this Indenture referred to in (a) and (b)
below, and to have satisfied all its other obligations under such Notes and this
Indenture (and the Trustee, on written demand of and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of outstanding Notes to receive
solely from the trust fund described in Section 8.04 hereof, and as more fully
set forth in such Section, payments in respect of the principal of, premium, if
any, and interest on such Notes when such payments are due, (b) the Company's
obligations with respect to such Notes under Article 2 and Section 4.02 hereof,
(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder
and the Company's obligations in connection therewith and (d) this Article 8.
Subject to compliance with this Article 8, the Company may exercise its option
under this Section 8.02 notwithstanding the prior exercise of its option under
Section 8.03 hereof.

         Section 8.03. Covenant Defeasance. Upon the Company's exercise under
Section 8.01 hereof of the option applicable to this Section 8.03, the Company
shall, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, be released from its obligations under the covenants contained in
Sections 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.18
and 4.21 hereof and clauses (iii), (iv) and (vi) of Section 5.01 hereof with
respect to the outstanding Notes on and after the date the conditions set forth
in Section 8.04 are satisfied (hereinafter, "Covenant Defeasance"), and the
Notes shall thereafter be deemed not "outstanding" for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "outstanding" for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any

                                      -74-
<PAGE>

other document and such omission to comply shall not constitute a Default or an
Event of Default under Section 6.01 hereof, but, except as specified above, the
remainder of this Indenture and such Notes shall be unaffected thereby. In
addition, upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03 hereof, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, Sections 6.01(c), (d), (e) and (g)
hereof shall not constitute Events of Default.

         Section 8.04. Conditions to Legal or Covenant Defeasance. The following
shall be the conditions to the application of either Section 8.02 or 8.03 hereof
to the outstanding Notes:

                  (a) the Company must irrevocably deposit with the Trustee, in
         trust, for the benefit of the Holders of such Notes, cash in United
         States dollars, non callable Government Securities, or a combination
         thereof, in such amounts as will be sufficient, in the opinion of a
         nationally recognized firm of independent public accountants, to pay
         and discharge the principal of, premium, if any, and interest on the
         outstanding Notes on the Stated Maturity thereof or on the applicable
         redemption date (such date being referred to as the "Defeasance
         Redemption Date"), as the case may be, and any other amounts owing
         under this Indenture, if in the case of a Defeasance Redemption Date
         prior to electing to exercise either Legal Defeasance or Covenant
         Defeasance, the Company has delivered to the Trustee an irrevocable
         notice to redeem all of the outstanding Notes on such Defeasance
         Redemption Date;

                  (b) in the case of an election under Section 8.02 hereof, the
         Company shall have delivered to the Trustee an opinion of independent
         counsel in the United States stating that (i) the Company has received
         from, or there has been published by, the Internal Revenue Service a
         ruling or (ii) since the Issue Date, there has been a change in the
         applicable federal income tax law, in either case to the effect that,
         and based thereon such opinion of independent counsel shall confirm
         that, the Holders of the outstanding Notes will not recognize income,
         gain or loss for federal income tax purposes as a result of such Legal
         Defeasance and will be subject to federal income tax on the same
         amounts, in the same manner and at the same times as would have been
         the case if such Legal Defeasance had not occurred; provided, that the
         foregoing opinion of independent counsel required by this clause (b)
         with respect to a Legal Defeasance need not be delivered if all Notes
         not theretofore delivered to the Trustee for cancellation (A) have
         become due and payable or (B) will become due and payable at Maturity
         within one year under arrangements satisfactory to the Trustee for the
         giving of notice of redemption by the Trustee in the name, and at the
         expense, of the Company;

                  (c) in the case of an election under Section 8.03 hereof, the
         Company shall have delivered to the Trustee an opinion of independent
         counsel in the United States to the effect that the Holders of the
         outstanding Notes will not recognize income, gain or loss for federal
         income tax purposes as a result of such Covenant Defeasance and will be
         subject to federal income tax on the same amounts, in the same manner
         and at the same times as would have been the case if such Covenant
         Defeasance had not occurred;

                  (d) no Default or Event of Default shall have occurred and be
         continuing on the date of such deposit (other than a Default or Event
         of Default resulting from the incurrence of

                                      -75-
<PAGE>

         Indebtedness all or a portion of the proceeds of which will be used to
         defease the Notes pursuant to this Article 8 concurrently with such
         incurrence);

                  (e) such Legal Defeasance or Covenant Defeasance shall not
         result in a breach or violation of, or constitute a default under this
         Indenture or any material agreement or instrument to which the Company
         or any of the Guarantors is a party or by which the Company or any of
         the Guarantors is bound;

                  (f) the Company shall have delivered to the Trustee an
         Officers' Certificate stating that the deposit was not made by the
         Company with the intent of preferring the Holders of the Notes or any
         Guarantor over any other creditors of the Company or any Guarantor or
         with the intent of defeating, hindering, delaying or defrauding any
         other creditors of the Company, any Guarantor or others; and

                  (g) the Company shall have delivered to the Trustee an
         Officers' Certificate stating that all conditions precedent relating to
         the Legal Defeasance or the Covenant Defeasance, as the case may be,
         have been complied with.

         Section 8.05. Deposited Money and Government Securities to be Held in
Trust; Other Miscellaneous Provisions. Subject to Section 8.06 hereof, all money
and non-callable Government Securities (including the proceeds thereof)
deposited with the Trustee pursuant to Section 8.04 hereof in respect of the
outstanding Notes shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
Paying Agent) as the Trustee may determine, to the Holders of such Notes of all
sums due and to become due thereon in respect of principal, premium, if any, and
interest, but such money need not be segregated from other funds except to the
extent required by law.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.04 hereof or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.

         Anything in this Article 8 to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon the written request
of the Company any money or non-callable Government Securities held by it as
provided in Section 8.04 hereof which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee (which may be the opinion delivered under
Section 8.04(a) hereof), are in excess of the amount thereof that would then be
required to be deposited to effect an equivalent Legal Defeasance or Covenant
Defeasance.

         Section 8.06. Repayment to Company. Any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of, premium, if any, or interest on any Note and
remaining unclaimed for two years after such principal, and premium, if any, or
interest has become due and payable shall be paid to the Company on its written
request or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Note shall thereafter

                                      -76-
<PAGE>

look only to the Company for payment thereof, and all liability of the Trustee
or such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however, that the
Trustee or such Paying Agent, before being required to make any such repayment,
may at the expense of the Company cause to be published once, in the New York
Times and The Wall Street Journal (national edition), notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such notification or publication, any
unclaimed balance of such money then remaining will be repaid to the Company.

         Section 8.07. Reinstatement. If the Trustee or Paying Agent is unable
to apply any United States dollars or non-callable Government Securities in
accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason of
any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the Company's
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until
such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 8.02 or 8.03 hereof, as the case may be; provided,
however, that, if the Company makes any payment of principal of, premium, if
any, or interest on any Note following the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

                                   ARTICLE 9.
                        AMENDMENT, SUPPLEMENT AND WAIVER

         Section 9.01. Without Consent of Holders of Notes. Notwithstanding
Section 9.02 of this Indenture, the Company, the Guarantors and the Trustee may
amend or supplement this Indenture, the Note Guarantees or the Notes without the
consent of any Holder of a Note:

                  (a) to cure any ambiguity, defect or inconsistency;

                  (b) to provide for uncertificated Notes in addition to or in
         place of certificated Notes or to alter the provisions of Article 2
         hereof (including the related definitions) in a manner that does not
         materially adversely affect any Holder;

                  (c) to provide for the assumption of the Company's or a
         Guarantor's obligations to the Holders by a successor to the Company or
         a Guarantor pursuant to Article 5 or Article 11 hereof, as the case may
         be;

                  (d) to make any change that would provide any additional
         rights or benefits to the Holders of the Notes or that does not
         adversely affect in any material respect the rights hereunder of any
         Holder of the Note;

                  (e) to comply with requirements of the SEC in order to effect
         or maintain the qualification of this Indenture under the TIA;

                  (f) to allow any Guarantor to execute a supplemental indenture
         and/or a Note Guarantee with respect to the Notes; or

                                      -77-
<PAGE>

                  (g) to evidence and provide for the acceptance of appointment
         under this Indenture of a successor Trustee.

         Upon the written request of the Company accompanied by a Board
Resolution authorizing the execution of any such amended or supplemental
Indenture, and upon receipt by the Trustee of the documents described in Section
7.02 hereof, the Trustee shall join with the Company and the Guarantors in the
execution of any amended or supplemental Indenture authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations that may be therein contained, but the Trustee shall not be
obligated to enter into such amended or supplemental Indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

         Section 9.02. With Consent of Holders of Notes. Except as provided
below in this Section 9.02, the Company, the Guarantors and the Trustee may
amend or supplement this Indenture (including Section 3.09, 4.10 and 4.14
hereof), the Note Guarantees and the Notes with the written consent of the
Holders of at least a majority in principal amount of the Notes then outstanding
voting as a single class (including consents obtained in connection with a
tender offer or exchange offer for, or purchase of, the Notes), and, subject to
Sections 6.04 and 6.07 hereof, any existing Default or Event of Default (other
than a Default or Event of Default in the payment of the principal of, premium,
if any, or interest on the Notes, except a payment default resulting from an
acceleration that has been rescinded) or compliance with any provision of this
Indenture, the Note Guarantees or the Notes may be waived with the written
consent of the Holders of a majority in principal amount of the then outstanding
Notes voting as a single class (including consents obtained in connection with a
tender offer or exchange offer for, or purchase of, the Notes).

         Upon the written request of the Company accompanied by a Board
Resolution authorizing the execution of any such amended or supplemental
Indenture, and upon the filing with the Trustee of evidence satisfactory to the
Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by
the Trustee of the documents described in Section 7.02 hereof, the Trustee shall
join with the Company in the execution of such amended or supplemental Indenture
unless such amended or supplemental Indenture directly affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise, in which case
the Trustee may in its discretion, but shall not be obligated to, enter into
such amended or supplemental Indenture.

         It shall not be necessary for the consent of the Holders of Notes under
this Section 9.02 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof.

         After an amendment, supplement or waiver under this Section becomes
effective, the Company shall mail to the Holders affected thereby a notice
briefly describing the amendment, supplement or waiver. Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such amended or supplemental Indenture
or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority
in aggregate principal amount of the Notes then outstanding voting as a single
class may waive in writing compliance in a particular instance by the Company
with any provision of this Indenture or the Notes. However, without the written

                                      -78-
<PAGE>

consent of each Holder affected, an amendment or waiver under this Section 9.02
may not (with respect to any Notes held by a non-consenting Holder):

                  (a) change the Stated Maturity or the principal of, or any
         installment of interest on, any Note or reduce the principal amount
         thereof or the rate of interest thereon or any premium payable upon the
         redemption thereof, or change the coin or currency in which any Note or
         any premium or the interest thereon is payable, or impair the right to
         institute suit for the enforcement of any such payment after the Stated
         Maturity thereof;

                  (b) after a Change of Control has occurred, amend, change or
         modify the obligation of the Company to make and consummate a Change of
         Control Purchase Offer with respect to such Change of Control or modify
         any of the provisions or definitions with respect thereto;

                  (c) reduce the percentage in principal amount of outstanding
         Notes whose Holders must consent to a modification, amendment,
         supplement or waiver;

                  (d) modify any of the provisions relating to supplemental
         indentures requiring the consent of Holders or relating to the waiver
         of past defaults or relating to the waiver of certain covenants, except
         to increase the percentage of outstanding Notes required for such
         actions or to provide that certain other provisions of this Indenture
         cannot be modified or waived without the consent of each Holder;

                  (e) make any change in Section 6.04 or 6.07 hereof or in the
         foregoing amendment and waiver provisions;

                  (f) except as otherwise permitted under Article 5 consent to
         the assignment or transfer by the Company or any Guarantor of any of
         its rights and obligations under this Indenture; or

                  (g) amend or modify any of the provisions of this Indenture in
         any manner which subordinates the Notes in right of payment to other
         Indebtedness of the Company or which subordinates any Note Guarantee in
         right of payment to other Indebtedness of the Subsidiary Guarantor
         issuing such Note Guarantee.

         Section 9.03. Compliance with Trust Indenture Act. Every amendment or
supplement to this Indenture or the Notes shall be set forth in a amended or
supplemental Indenture that complies with the TIA as then in effect.

         Section 9.04. Revocation and Effect of Consents. Until an amendment,
supplement or waiver becomes effective, a consent to it by a Holder is a
continuing consent by the Holder of a Note and every subsequent Holder of a Note
or portion of a Note that evidences the same debt as the consenting Holder's
Note, even if notation of the consent is not made on any Note. However, any such
Holder or subsequent Holder may revoke the consent as to its Note if the Trustee
receives written notice of revocation before the date the waiver, supplement or
amendment becomes effective. An amendment, supplement or waiver becomes
effective in accordance with its terms and thereafter binds every Holder.

                                      -79-
<PAGE>

         Section 9.05. Notation on or Exchange of Notes. The Trustee may place
an appropriate notation about an amendment, supplement or waiver on any Note
thereafter authenticated. The Company in exchange for all Notes may issue and
the Trustee shall, upon receipt of an Authentication Order, authenticate new
Notes that reflect the amendment, supplement or waiver.

         Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.

         Section 9.06. Trustee to Sign Amendments, etc. The Trustee shall sign
any amended or supplemental Indenture authorized pursuant to this Article 9 if
the amendment or supplement does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. The Company may not sign an amendment
or supplemental Indenture until the Board of Directors approves it. In executing
any amended or supplemental indenture, the Trustee shall be entitled to receive
and (subject to Section 7.01 hereof) shall be fully protected in relying
conclusively upon, in addition to the documents required by Section 13.04
hereof, an Officer's Certificate and an Opinion of Counsel stating that the
execution of such amended or supplemental indenture is authorized or permitted
by this Indenture.

                                   ARTICLE 10.
                             SUBORDINATION OF NOTES

         Section 10.01. Notes Subordinate to Senior Indebtedness. The Company
and Guarantors covenant and agree, and each Holder accepting a Note, likewise
covenants and agrees, that, to the extent and in the manner hereinafter set
forth in this Article 10, the indebtedness represented by the Notes and the
Guarantees and the payment (by set-off or otherwise) of principal of, premium,
if any, interest and Additional Interest, if any, on the Notes (including with
respect to any repurchases of the Notes) will be subordinated in right of
payment to the prior payment in full in cash or, at the option of the holders of
Senior Indebtedness, in Temporary Cash Investments, of all Obligations in
respect of Senior Indebtedness, whether outstanding on the date of this
Indenture or thereafter incurred; provided, however, that the Notes and
Guarantees, the indebtedness represented thereby and the payment of the
principal of (and premium, if any), interest on and Additional Interest, if any,
on the Notes, in all respects shall rank equally with, or prior to, all existing
and future Indebtedness of the Company and the Guarantors that is expressly
subordinated to any Senior Indebtedness.

         Section 10.02. Payment Over of Proceeds Upon Dissolution, etc. Upon any
distribution to creditors of the Company or any Guarantor upon any total or
partial liquidation, dissolution or winding up of the Company or such Guarantor
or in a bankruptcy, reorganization, insolvency, receivership or similar
proceeding relating to the Company or such Guarantor or its property, whether
voluntary or involuntary, an assignment for the benefit of creditors or any
marshalling of the Company's or such Guarantor's assets and liabilities,

                  (1) the holders of Senior Indebtedness of the Company or such
         Guarantor will be entitled to receive payment in full in cash or, at
         the option of the holders of such Senior Indebtedness, in Temporary
         Cash Investments, of all Obligations due or to become due in respect of
         such Senior Indebtedness (including interest after the commencement of
         any such proceeding at

                                      -80-
<PAGE>

         the rate specified in the applicable Senior Indebtedness) before the
         Holders will be entitled to receive any payment of any kind or
         character with respect to the Notes; and

                  (2) until all Obligations with respect to such Senior
         Indebtedness are paid in full in cash or, at the option of the holders
         of such Senior Indebtedness, in Temporary Cash Investments, any
         distribution of any kind or character to which the Holders of Notes
         would be entitled shall be made to the holders of such Senior
         Indebtedness (except that Holders of Notes may receive Permitted Junior
         Securities and payments made from the trust described in Article 8
         hereof).

         The consolidation of the Company with, or the merger of the Company
into, another Person or the liquidation or dissolution of the Company following
the conveyance, transfer or lease of its properties and assets substantially as
an entirety to another Person upon the terms and conditions set forth in Article
5 hereof shall not be deemed a dissolution, winding up, liquidation,
reorganization, assignment for the benefit of creditors or marshalling of assets
and liabilities of the Company for the purposes of this Section 10.02 if the
Person formed by such consolidation or into which the Company is merged or the
Person which acquires by conveyance, transfer or lease such properties and
assets substantially as an entirety, as the case may be, shall, as a part of
such consolidation, merger, conveyance, transfer or lease, comply with the
conditions set forth in Article 5 hereof.

         Section 10.03. Suspension of Payment When Senior Indebtedness in
Default. Neither the Company nor any Guarantor shall make, directly or
indirectly, (x) any payment upon or in respect of the Notes (except in Permitted
Junior Securities or from the trust described in Article 8 hereof) or (y)
acquire any of the Notes for cash or property or otherwise or make any other
distribution with respect to the Notes if (i) any default occurs and is
continuing in the payment when due, whether at maturity, upon any redemption, by
declaration or otherwise, of any amount of any Designated Senior Indebtedness (a
"Payment Default") or (ii) any other default occurs and is continuing with
respect to Designated Senior Indebtedness (a "Non-Payment Default") that permits
holders of, or the trustee or agent on behalf of the holders of, the Designated
Senior Indebtedness as to which such default relates to accelerate its maturity
and the Trustee receives a notice of such default (a "Payment Blockage Notice")
from the trustee or agent on behalf of holders of any Designated Senior
Indebtedness. Payments on the Notes may and shall be resumed (a) in the case of
a Payment Default, upon the date on which such default is cured or waived and
(b) in case of a Non-Payment Default, the earlier of the date on which such
Non-Payment Default is cured or waived or 179 days after the date on which the
applicable Payment Blockage Notice is received, unless a Payment Default has
occurred and is continuing, including as a result of the acceleration of the
maturity of any Designated Senior Indebtedness. After a Payment Blockage Notice
is given for a Non-Payment Default, no new period of payment blockage for a
Non-Payment Default may be commenced unless and until (i) 360 days have elapsed
since the effectiveness of the immediately prior Payment Blockage Notice and
(ii) all scheduled payments of principal, premium, if any, and interest and
Additional Interest, if any, on the Notes that have come due have been paid in
full in cash. No Non-Payment Default that existed or was continuing on the date
of delivery of any Payment Blockage Notice to the Trustee shall be, or be made,
the basis for a subsequent Payment Blockage Notice unless such Non-Payment
Default shall have been cured or waived for a period of not less than 90 days
(it being acknowledged that any subsequent action, or any breach of any
financial covenants for a period commencing after the date of delivery of any
Payment Blockage Notice which, in either case, would give

                                      -81-
<PAGE>

rise to a default pursuant to any provision under which a default previously
existed or was continuing shall constitute a new default for this purpose). Each
Holder by its acceptance of a Note irrevocably agrees that if any payment or
payments shall be made pursuant to this Indenture by the Company or a Guarantor
and the amount or total amount of such payment or payments exceeds the amount,
if any, that such Holder would be entitled to receive upon the proper
application of the subordination provisions of this Indenture, the payment of
such excess amount shall be deemed null and void, and the Holder agrees that it
will be obligated to return the amount of the excess payment to the Trustee, as
instructed in a written notice of such excess payment, within ten days of
receiving such notice.

         Section 10.04. Payment Permitted if No Default. Nothing contained in
this Article or elsewhere in this Indenture or in any of the Notes shall prevent
the Company, at any time except during the pendency of any case, proceeding,
dissolution, liquidation or other winding up, assignment for the benefit of
creditors or other marshalling of assets and liabilities of the Company referred
to in Section 10.02 or under the conditions described in Section 10.03, from
making payments at any time of principal of (and premium, if any) or interest or
Additional Interest, if any, on the Notes.

         Section 10.05. Subrogation to Rights of Holders of Senior Indebtedness.
Subject to the prior payment in full in cash of all Senior Indebtedness, the
Holders shall be subrogated to the rights of the holders of such Senior
Indebtedness to receive payments and distributions of cash, property and
securities applicable to the Senior Indebtedness until the principal of (and
premium, if any) and interest on the Notes shall be paid in full. For purposes
of such subrogation, no payments or distributions to the holders of Senior
Indebtedness of any cash, property or securities to which the Holders of the
Notes or the Trustee would be entitled except for the provisions of this
Article, and no payments over pursuant to the provisions of this Article to the
holders of Senior Indebtedness by Holders of the Notes or the Trustee, shall, as
among the Company, its creditors other than holders of Senior Indebtedness, and
the Holders of the Notes, be deemed to be a payment or distribution by the
Company to or on account of the Senior Indebtedness.

         Section 10.06. Provisions Solely to Define Relative Rights. The
provisions of this Article are and are intended solely for the purpose of
defining the relative rights of the Holders of the Notes on the one hand and the
holders of Senior Indebtedness on the other hand. Nothing contained in this
Article or elsewhere in this Indenture or in the Notes is intended to or shall
(a) impair, as between the Company and the Holders of the Notes, the obligation
of the Company, which is absolute and unconditional, to pay to the Holders of
the Notes the principal of (and premium, if any) and interest on the Notes as
and when the same shall become due and payable in accordance with their terms;
or (b) affect the relative rights against the Company of the Holders of the
Notes and creditors of the Company other than the holders of Senior
Indebtedness; or (c) prevent the Trustee or the Holder of any Note from
exercising all remedies otherwise permitted by applicable law upon default under
this Indenture, subject to the rights, if any, under this Article 10 of the
holders of Senior Indebtedness in respect of cash, property or securities of the
Company received upon the exercise of any such remedy.

         Section 10.07. Trustee to Effectuate Subordination. Each Holder of a
Note by his acceptance thereof authorizes and directs the Trustee on his behalf
to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article and appoints the Trustee his
attorney-in-fact for any and all such purposes. If upon any dissolution, winding
up or reorganization of the

                                      -82-
<PAGE>

Company, whether in bankruptcy, insolvency, receivership proceedings or
otherwise, the Trustee does not file a claim in such proceedings prior to 30
days before the expiration of the time to file such claim, the holders of Senior
Indebtedness or the Agents may file such a claim on behalf of the holders of the
Notes.

         Section 10.08. No Waiver of Subordination Provisions. (a) No right of
any present or future holder of any Senior Indebtedness to enforce subordination
as herein provided shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of the Company or by any act or failure to
act, in good faith, by any such holder, or by any non-compliance by the Company
with the terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof any such holder may have or be otherwise charged with.

         (b) Without in any way limiting the generality of Subsection (a) of
this Section, the holders of Senior Indebtedness may, at any time and from time
to time, without the consent of or notice to the Trustee or the Holders of the
Notes, without incurring responsibility to the Holders of the Notes and without
impairing or releasing the subordination provided in this Article or the
obligations hereunder of the Holders of the Notes to the holders of Senior
Indebtedness, do any one or more of the following: (1) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, Senior
Indebtedness or any instrument evidencing the same or any agreement under which
Senior Indebtedness is outstanding; (2) sell, exchange, release or otherwise
deal with any property pledged, mortgaged or otherwise securing Senior
Indebtedness; (3) release any Person liable in any manner for the collection or
payment of Senior Indebtedness; and (4) exercise or refrain from exercising any
rights against the Company or any other Person.

         Section 10.09. Notice to Trustee. (a) The Company shall give prompt
written notice to the Trustee of any fact known to the Company which would
prohibit the making of any payment to or by the Trustee in respect of the Notes.
Notwithstanding the provisions of this Article or any other provision of this
Indenture, the Trustee shall not be charged with knowledge of the existence of
any facts which would prohibit the making of any payment to or by the Trustee in
respect of the Notes, unless and until the Trustee shall have received written
notice thereof from the Company, the Agent or a holder of Senior Indebtedness or
from any trustee, fiduciary or agent therefor; and, prior to the receipt of any
such written notice, the Trustee, subject to the provisions of Section 7.05
hereof, shall be entitled in all respects to assume that no such facts exist;
provided, however, that, if the Trustee shall not have received the notice
provided for in this Section at least three Business Days prior to the date upon
which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of (and premium, if
any) or interest on any Note), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such
money and to apply the same to the purpose for which such money was received and
shall not be affected by any notice to the contrary which may be received by it
within three Business Days prior to such date.

         (b) Subject to the provisions of Section 7.05 hereof, the Trustee shall
be entitled to rely on the delivery to it of a written notice by a Person
representing himself to be a holder of Senior Indebtedness (or a trustee,
fiduciary or agent therefor) to establish that such notice has been given by a
holder of Senior Indebtedness (or a trustee, fiduciary or agent therefor). In
the event that the Trustee determines

                                      -83-
<PAGE>

in good faith that further evidence is required with respect to the right of any
Person as a holder of Senior Indebtedness to participate in any payment or
distribution pursuant to this Article, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amount
of Senior Indebtedness held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article and, if such evidence
is not furnished, the Trustee may defer any payment to such Person pending
judicial determination as to the right of such Person to receive such payment.

         Section 10.10. Reliance on Judicial Order or Certificate of Liquidating
Agent. Upon any payment or distribution of assets of the Company referred to in
this Article, the Trustee, subject to the provisions of Section 7.05 hereof, and
the Holders of the Notes shall be entitled to rely upon any order or decree
entered by any court of competent jurisdiction in which such insolvency,
bankruptcy, receivership, liquidation, reorganization, dissolution, winding up
or similar case or proceeding is pending, or a certificate of the trustee in
bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit
of creditors, agent or other Person making such payment or distribution,
delivered to the Trustee or to the Holders of Notes, for the purpose of
ascertaining the Persons entitled to participate in such payment or
distribution, the holders of Senior Indebtedness and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article.

         Section 10.11. Rights of Trustee As a Holder of Senior Indebtedness;
Preservation of Trustee's Rights. The Trustee in its individual capacity shall
be entitled to all the rights set forth in this Article with respect to any
Senior Indebtedness which may at any time be held by it, to the same extent as
any other holder of Senior Indebtedness, and nothing in this Indenture shall
deprive the Trustee of any of its rights as such holder. Nothing in this Article
shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 7.07 hereof.

         Section 10.12. Article Applicable to Paying Agents. In case at any time
any Paying Agent other than the Trustee shall have been appointed by the Company
and be then acting hereunder, the term "Trustee" as used in this Article shall
in such case (unless the context otherwise requires) be construed as extending
to and including such Paying Agent within its meaning as fully for all intents
and purposes as if such Paying Agent were named in this Article in addition to
or in place of the Trustee; provided, however, that Section 10.11 shall not
apply to the Company or any Affiliate of the Company if it or such Affiliate
acts as Paying Agent.

         Section 10.13. No Suspension of Remedies. Nothing contained in this
Article shall limit the right of the Trustee or the Holders of Notes to take any
action to accelerate the maturity of the Notes pursuant to Article 6 hereof or
to pursue any rights or remedies hereunder or under applicable law. This
Indenture may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same Indenture.

         Section 10.14. Trustee Not Fiduciary for Holders of Senior
Indebtedness. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness and shall not be liable to any such holders if
the Trustee shall mistakenly, in the absence of gross negligence or willful
misconduct, pay over or distribute to Holders of Notes or to the Company or to
any other person cash, property

                                      -84-
<PAGE>

or securities to which any holders of Senior Indebtedness shall be entitled by
virtue of this Article or otherwise. With respect to the holders of Senior
Indebtedness, the Trustee undertakes to perform or to observe only such of its
covenants or obligations as are specifically set forth in this Article and no
implied covenants or obligations with respect to holders of Senior Indebtedness
shall be read into this Indenture against the Trustee.

         Section 10.15. Notices to Holders of Senior Indebtedness. Upon the
occurrence of any acceleration of the Notes pursuant to Section 6.02 hereof, the
Company shall promptly notify the holders of Senior Indebtedness of such
acceleration.

                                   ARTICLE 11.
                                 NOTE GUARANTEES

         Section 11.01. Guarantee. Subject to this Article 11, each of the
Guarantors hereby, jointly and severally, unconditionally guarantees to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee
and its successors and assigns, irrespective of the validity and enforceability
of this Indenture, the Notes or the obligations of the Company hereunder or
thereunder, that: (a) the principal of and interest on the Notes will be
promptly paid in full when due, whether at maturity, by acceleration, redemption
or otherwise, and interest on the overdue principal of and interest on the
Notes, if any, if lawful, and all other obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or any of such other
obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise. Failing payment when due of any amount
so guaranteed or any performance so guaranteed for whatever reason, the
Guarantors shall be jointly and severally obligated to pay the same immediately.
Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

         The Guarantors hereby agree that their obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the
Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder with respect to any provisions hereof or
thereof, the recovery of any judgment against the Company, any action to enforce
the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. Each Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands whatsoever
and covenant that this Note Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes and this Indenture.

         If any Holder or the Trustee is required by any court or otherwise to
return to the Company, the Guarantors or any custodian, trustee, liquidator or
other similar official acting in relation to either the Company or the
Guarantors, any amount paid by either to the Trustee or such Holder, this Note
Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect.

                                      -85-
<PAGE>

         Each Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. Each
Guarantor further agrees that, as between the Guarantors, on the one hand, and
the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof
for the purposes of this Note Guarantee, notwithstanding any stay, injunction or
other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any declaration of acceleration of
such obligations as provided in Article 6 hereof, such obligations (whether or
not due and payable) shall forthwith become due and payable by the Guarantors
for the purpose of this Note Guarantee. The Guarantors shall have the right to
seek contribution from any non-paying Guarantor so long as the exercise of such
right does not impair the rights of the Holders under the Guarantee.

         Section 11.02. Limitation on Guarantor Liability. Each Guarantor, and
by its acceptance of Notes, each Holder, hereby confirms that it is the
intention of all such parties that the Note Guarantee of such Guarantor not
constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law,
the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or
any similar federal or state law to the extent applicable to any Note Guarantee.
To effectuate the foregoing intention, the Holders and the Guarantors hereby
irrevocably agree that the obligations of such Guarantor will, after giving
effect to such maximum amount and all other contingent and fixed liabilities of
such Guarantor that are relevant under such laws, and after giving effect to any
collections from, rights to receive contribution from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such other
Guarantor under this Article 11, result in the obligations of such Guarantor
under its Note Guarantee not constituting a fraudulent transfer or conveyance.

         Section 11.03. Execution and Delivery of Note Guarantee. To evidence
its Note Guarantee set forth in Section 11.01, each Guarantor hereby agrees that
a notation of such Note Guarantee substantially in the form included in Exhibit
E shall be endorsed by an Officer of such Guarantor on each Note authenticated
and delivered by the Trustee and that this Indenture shall be executed on behalf
of such Guarantor by its President or one of its Vice Presidents.

         Each Guarantor hereby agrees that its Note Guarantee set forth in
Section 11.01 shall remain in full force and effect notwithstanding any failure
to endorse on each Note a notation of such Note Guarantee.

         If an Officer whose signature is on this Indenture or on the Note
Guarantee no longer holds that office at the time the Trustee authenticates the
Note on which a Note Guarantee is endorsed, the Note Guarantee shall be valid
nevertheless.

         The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Note Guarantee set forth
in this Indenture on behalf of the Guarantors.

         In the event that the Company creates or acquires any new Wholly Owned
Restricted Subsidiaries subsequent to the Issue Date or in case any existing or
future majority-owned Restricted Subsidiary shall, after the Issue Date,
guarantee any Indebtedness of the Company or any Guarantor, in each case if
required by Section 4.17 hereof, the Company shall cause such Restricted
Subsidiaries to

                                      -86-
<PAGE>

execute supplemental indentures to this Indenture and Note Guarantees in
accordance with Section 4.17 hereof and this Article 11, to the extent
applicable.

         Section 11.04. Guarantors May Consolidate, etc., on Certain Terms.
Except as otherwise provided in Section 11.05, no Guarantor may consolidate with
or merge with or into (whether or not such Guarantor is the surviving Person)
another Person whether or not affiliated with such Guarantor unless:

                  (a) subject to Section 11.05 hereof, the Person formed by or
         surviving any such consolidation or merger (if other than a Guarantor
         or the Company) unconditionally assumes all the obligations of such
         Guarantor, pursuant to a supplemental indenture in form and substance
         reasonably satisfactory to the Trustee, under the Notes, this Indenture
         and the Note Guarantee on the terms set forth herein or therein; and

                  (b) immediately after giving effect to such transaction, no
         Default or Event of Default exists.

         In case of any such consolidation, merger, sale or conveyance and upon
the assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the Note
Guarantee endorsed upon the Notes and the due and punctual performance of all of
the covenants and conditions of this Indenture to be performed by the Guarantor,
such successor Person shall succeed to and be substituted for the Guarantor with
the same effect as if it had been named herein as a Guarantor. Such successor
Person thereupon may cause to be signed any or all of the Note Guarantees to be
endorsed upon all of the Notes issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Trustee. All the Note
Guarantees so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Note Guarantees theretofore and thereafter issued in
accordance with the terms of this Indenture as though all of such Note
Guarantees had been issued at the date of the execution hereof.

         Except as set forth in Articles 4 and 5 hereof, and notwithstanding
clauses (a) and (b) above, nothing contained in this Indenture or in any of the
Notes shall prevent any consolidation or merger of a Guarantor with or into the
Company or another Guarantor, or shall prevent any sale or conveyance of the
property of a Guarantor as an entirety or substantially as an entirety to the
Company or another Guarantor.

         Section 11.05. Releases of Note Guarantees. (a) In the event of a sale
or other disposition of all of the assets of any Guarantor, by way of merger,
consolidation, liquidation, dissolution or otherwise, or a sale or other
disposition of all to the capital stock of any Guarantor otherwise in compliance
with this Indenture (including, without limitation, Sections 4.10 and 4.15
hereof), in each case to a Person that is not (either before or after giving
effect to such transactions) a Restricted Subsidiary of the Company, then such
Guarantor (in the event of a sale or other disposition, by way of merger,
consolidation or otherwise, of all of the capital stock of such Guarantor) or
the corporation acquiring the property (in the event of a sale or other
disposition of all or substantially all of the assets of such Guarantor) will be
released and relieved of any obligations under its Note Guarantee; provided that
the Net Proceeds of such sale or other disposition are applied in accordance
with the applicable provisions of this

                                      -87-
<PAGE>

Indenture, including without limitation Section 4.10 hereof. Upon delivery by
the Company to the Trustee of an Officers' Certificate and an Opinion of Counsel
to the effect that such sale or other disposition was made by the Company in
accordance with the provisions of this Indenture, including without limitation
Section 4.10 hereof, the Trustee shall execute any documents reasonably required
and requested of it in writing in order to evidence the release of any Guarantor
from its obligations under its Note Guarantee.

         (b) Upon the designation of a Restricted Subsidiary to become an
Unrestricted Subsidiary otherwise in compliance with this Indenture, such
Guarantor will be deemed released from its obligations under its Note Guarantee;
provided, however, that any such termination shall occur only to the extent that
all obligations of such Guarantor under all of its guarantees of, and under all
of its pledges of assets or other security interests which secure, any
Indebtedness of the Company or any other Restricted Subsidiary shall also
terminate upon such release, sale or transfer.

         (c) Any Guarantor not released from its obligations under its Note
Guarantee shall remain liable for the full amount of principal of and interest
on the Notes and for the other obligations of any Guarantor under this Indenture
as provided in this Article 11.

         Section 11.06. Ranking of Note Guarantees. Each Subsidiary Guarantor
covenants and agrees, and each Holder by accepting a Note, likewise covenants
and agrees, that each Note Guarantee will be an unsecured senior subordinated
obligation of the Subsidiary Guarantor issuing such Note Guarantee, subordinated
in right of payment to all existing and future Senior Indebtedness of the
Subsidiary Guarantors to the extent set forth in Article Ten hereof, and ranking
senior to or pari passu in right of payment with all other existing and future
Indebtedness of such Subsidiary Guarantor that is expressly subordinated to any
senior subordinated indebtedness of such Subsidiary Guarantor.

                                   ARTICLE 12.
                           satisfaction and discharge

         Section 12.01. Satisfaction and Discharge. This Indenture will be
discharged and will cease to be of further effect as to all Notes issued
hereunder, when:

         (a) either:

                           (i) all Notes issued under the Indenture and
                  theretofore authenticated and delivered (except lost, stolen
                  or destroyed Notes which have been replaced or paid and Notes
                  for whose payment funds have been deposited in trust by the
                  Company and thereafter repaid to the Company or discharged
                  from such trust) have been delivered to the Trustee for
                  cancellation; or

                           (ii) all Notes issued under the Indenture and not
                  theretofore delivered to the Trustee for cancellation;

                                    (A) have become due and payable; or

                                      -88-
<PAGE>

                                    (B) will become due and payable at their
                           Stated Maturity or pursuant to an optional redemption
                           within one year, and either the Company or any
                           Guarantor has irrevocably deposited or caused to be
                           deposited with the Trustee funds in an amount
                           sufficient to pay and discharge the entire
                           Indebtedness in respect of the Notes, for principal
                           of, premium and interest to the date of redemption or
                           Stated Maturity, as the case may be;

         (b) the Company or any Guarantor has paid all other sums payable by the
Company and any Guarantor under the Indenture;

         (c) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel each stating that all conditions precedent to the
satisfaction and discharge of the Indenture, as specified therein, have been
complied with and that such satisfaction and discharge will not result in a
breach or violation of, or constitute a default under, this Indenture or any
other material agreement or instrument to which the Company or any Guarantor is
a party or by which it is bound; and

         (d) the Company has delivered irrevocable instructions to the Trustee
under this Indenture to apply the deposited money toward the payment of the
Notes at Stated Maturity or the redemption date, as the case may be.

         Notwithstanding the satisfaction and discharge of this Indenture, if
money shall have been deposited with the Trustee pursuant to subclause (ii)(B)
of clause (a) of this Section, the provisions of Section 7.07, Section 11.02 and
Section 8.06 shall survive.

         Section 12.02. Application of Trust Money. Subject to the provisions of
Section 8.06, all money deposited with the Trustee pursuant to Section 12.01
shall be held in trust and applied by it, in accordance with the provisions of
the Notes and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any) and interest for whose payment such money has been deposited
with the Trustee; but such money need not be segregated from other funds except
to the extent required by law.

         If the Trustee or Paying Agent is unable to apply any money or
Government Securities in accordance with Section 12.01 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company's and any Guarantor's obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 12.01; provided that if the Company has made any payment of principal
of, premium, if any, or interest on any Notes because of the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money or Government Securities held
by the Trustee or Paying Agent.

                                   ARTICLE 13.
                                  MISCELLANEOUS

         Section 13.01. Trust Indenture Act Controls. If any provision of this
Indenture limits, qualifies or conflicts with the duties imposed by TIA Section
318(c), the imposed duties shall control.

                                      -89-
<PAGE>

         Section 13.02. Notices. Any notice or communication by the Company, any
Guarantor or the Trustee to the others is duly given if in writing and delivered
in Person or mailed by first class mail (registered or certified, return receipt
requested), telex, telecopier or overnight air courier guaranteeing next day
delivery, to the others' address:

         If to the Company and/or any Guarantor:

                  Fleming Companies, Inc.
                  1945 Lakepointe Drive
                  Lewisville, Texas 75029
                  Telecopier No.: (972) 906-1555
                  Attention: Chief Financial Officer

         With a copy to:

                  Latham & Watkins
                  505 Montgomery Street, 19th Floor
                  San Francisco, CA 94111
                  Telecopier No.: (415) 395-8095
                  Attention: Tracy Edmonson, Esq.

                  If to the Trustee:

                  Manufacturers and Traders Trust Company
                  One M & T Plaza
                  7th Floor, Corporate Trust Department
                  Buffalo, New York 14203

         The Company, any Guarantor or the Trustee, by notice to the others may
designate additional or different addresses for subsequent notices or
communications.

         All notices and communications (other than those sent to Holders) shall
be deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when answered back, if telexed; when receipt acknowledged,
if telecopied; and the next Business Day after timely delivery to the courier,
if sent by overnight air courier guaranteeing next day delivery.

         Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. Any notice or communication shall also be so mailed to any
Person described in TIA Section 313(c), to the extent required by the TIA.
Failure to mail a notice or communication to a Holder or any defect in it shall
not affect its sufficiency with respect to other Holders.

                                      -90-
<PAGE>

         If a notice or communication is mailed in the manner provided above
within the time prescribed, it is duly given, whether or not the addressee
receives it.

         If the Company mails a notice or communication to Holders, it shall
mail a copy to the Trustee and each Agent at the same time.

         Section 13.03. Communication by Holders of Notes with Other Holders of
Notes. Holders may communicate pursuant to TIA Section 312(b) with other Holders
with respect to their rights under this Indenture or the Notes. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA Section
312(c).

         Section 13.04. Certificate and Opinion as to Conditions Precedent. Upon
any request or application by the Company to the Trustee to take any action
under this Indenture, the Company shall furnish to the Trustee:

                  (a) an Officers' Certificate in form and substance reasonably
         satisfactory to the Trustee (which shall include the statements set
         forth in Section 13.05 hereof) stating that, in the opinion of the
         signers, all conditions precedent and covenants, if any, provided for
         in this Indenture relating to the proposed action have been satisfied;
         and

                  (b) an Opinion of Counsel in form and substance reasonably
         satisfactory to the Trustee (which shall include the statements set
         forth in Section 13.05 hereof) stating that, in the opinion of such
         counsel, all such conditions precedent and covenants have been
         satisfied.

         Section 13.05. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than a certificate provided pursuant to
TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e)
and shall include:

                  (a) a statement that the Person making such certificate or
         opinion has read such covenant or condition;

                  (b) a brief statement as to the nature and scope of the
         examination or investigation upon which the statements or opinions
         contained in such certificate or opinion are based;

                  (c) a statement that, in the opinion of such Person, he or she
         has made such examination or investigation as is necessary to enable
         him to express an informed opinion as to whether or not such covenant
         or condition has been satisfied; and

                  (d) a statement as to whether or not, in the opinion of such
         Person, such condition or covenant has been satisfied.

         Section 13.06. Rules by Trustee and Agents. The Trustee may make
reasonable rules for action by or at a meeting of Holders. The Registrar or
Paying Agent may make reasonable rules and set reasonable requirements for its
functions.

                                      -91-
<PAGE>

         Section 13.07. No Personal Liability of Directors, Officers, Employees
and Stockholders. No past, present or future director, officer, employee,
incorporator or stockholder of the Company or any Guarantor, as such, shall have
any liability for any obligations of the Company or such Guarantor under the
Notes, the Note Guarantees, this Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Notes.

         Section 13.08. Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE
GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

         Section 13.09. No Adverse Interpretation of Other Agreements. This
Indenture may not be used to interpret any other indenture, loan or debt
agreement of the Company or its Subsidiaries or of any other Person. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

         Section 13.10. Successors. All agreements of the Company in this
Indenture and the Notes shall bind its successors. All agreements of the Trustee
in this Indenture shall bind its successors. All agreements of each Guarantor in
this Indenture shall bind its successors, except as otherwise provided in
Section 11.05.

         Section 13.11. Severability. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         Section 13.12. Counterpart Originals. The parties may sign any number
of copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement.

         Section 13.13. Table of Contents, Headings, etc. The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be
considered a part of this Indenture and shall in no way modify or restrict any
of the terms or provisions hereof.

                         [Signatures on following page]

                                      -92-
<PAGE>

                                   SIGNATURES

Dated as of April 15, 2002

                                       FLEMING COMPANIES, INC.

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       ABCO FOOD GROUP, INC., as Guarantor

                                       By:   /s/ James R. Vaughan
                                          --------------------------------------
                                          Name:  James R. Vaughan
                                          Title: President

                                       ABCO MARKETS, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       ABCO REALTY CORP., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       AG, L.L.C., as Guarantor, by Fleming
                                       Companies, Inc. as its sole member

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                      -93-
<PAGE>

                                       AMERICAN LOGISTICS GROUP, INC., as
                                       Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       ARIZONA PRICE IMPACT, L.L.C., as
                                       Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       BAKER'S FOOD GROUP, INC., as Guarantor

                                       By:   /s/ James R. Vaughan
                                          --------------------------------------
                                          Name:  James R. Vaughan
                                          Title: President

                                       CARDINAL WHOLESALE, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       DUNIGAN FUELS, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                      -94-
<PAGE>

                                       FAVAR CONCEPTS, LTD., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       FLEMING FOODS MANAGEMENT CO., L.L.C., as
                                       Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       FLEMING FOODS OF TEXAS, L.P., as
                                       Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       FLEMING INTERNATIONAL LTD., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       FLEMING SUPERMARKETS OF FLORIDA, INC.

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                      -95-
<PAGE>

                                       FLEMING TRANSPORTATION SERVICE, INC., as
                                       Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       FLEMING WHOLESALE, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       FOOD 4 LESS BEVERAGE COMPANY, INC., as
                                       Guarantor

                                       By:   /s/ Charles L. Hall
                                          --------------------------------------
                                          Name:  Charles L. Hall
                                          Title: President

                                       FUELSERV, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       GATEWAY INSURANCE AGENCY, INC., as
                                       Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                      -96-
<PAGE>

                                       LAS, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       MINTER-WEISMAN CO., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       PIGGLY WIGGLY COMPANY, as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       PROGRESSIVE REALTY, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       RAINBOW FOOD GROUP, INC., as Guarantor

                                       By:   /s/ James R. Vaughan
                                          --------------------------------------
                                          Name:  James R. Vaughan
                                          Title: President

                                       RETAIL INVESTMENTS, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                      -97-
<PAGE>

                                       RETAIL SUPERMARKETS, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       RFS MARKETING SERVICES, INC., as
                                       Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       RICHMAR FOODS, INC., as Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                       SCRIVNER TRANSPORTATION, INC., as
                                       Guarantor

                                       By:   /s/ Carlos M. Hernandez
                                          --------------------------------------
                                          Name:  Carlos M. Hernandez
                                          Title: Senior Vice President, General
                                                 Counsel and Secretary

                                      -98-
<PAGE>
                                       MANUFACTURERS AND TRADERS TRUST
                                       COMPANY, not in its individual capacity,
                                       but solely as Trustee

                                       By: /s/ Russell T. Whitley
                                           ------------------------------------
                                           Name:  Russell T. Whitley
                                           Title: Assistant Vice President

<PAGE>

                                                                       EXHIBIT A

                                 [Face of Note]
================================================================================

                                                         CUSIP/CINS ____________

                o   9 7/8% Senior Subordinated Notes due 2012

No. ___                                                             $___________

                             FLEMING COMPANIES, INC.

promises to pay to Cede & Co.

or registered assigns,

the principal sum of
                     -----------------------------------------------------------

Dollars on May 1, 2012.

Interest Payment Dates: May 1 and November 1

Record Dates: April 15 and October 15

Dated:

                                       FLEMING COMPANIES, INC.

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

This is one of the Notes referred to
in the within-mentioned Indenture:

MANUFACTURERS AND TRADERS TRUST COMPANY,
  as Trustee

By:
   -------------------------------
         Authorized Signatory

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

                                      A-1
<PAGE>

                                 [Back of Note]
                    9 7/8% Senior Subordinated Notes due 2012

[Insert the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]

[Insert the Private Placement Legend, if applicable pursuant to the provisions
of the Indenture]

         Capitalized terms used herein shall have the meanings assigned to them
in the Indenture referred to below unless otherwise indicated.

         1. INTEREST. Fleming Companies, Inc., an Oklahoma corporation (the
"Company"), promises to pay interest on the principal amount of this Note at
9 7/8% per annum from [ ] until maturity. The Company will pay interest
semi-annually in arrears on May 1 and November 1 of each year, or if any such
day is not a Business Day, on the next succeeding Business Day (each an
"Interest Payment Date"). Interest on the Notes will accrue from the date of
issuance thereof or from the most recent date to which interest has been paid;
provided that if there is no existing Default in the payment of interest, and if
this Note is authenticated between a record date referred to on the face hereof
and the next succeeding Interest Payment Date, interest shall accrue from such
next succeeding Interest Payment Date; provided, further, that the first
Interest Payment Date shall be [ ]. The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand at the rate then in
effect; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

         2. METHOD OF PAYMENT. The Company will pay interest on the Notes
(except defaulted interest) to the Persons who are registered Holders of Notes
at the close of business on the April 15 or October 15 next preceding the
Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.12
of the Indenture with respect to defaulted interest. The Notes will be payable
as to principal, premium, if any, and interest at the office or agency of the
Company maintained for such purpose within or without the City and State of New
York, or, at the option of the Company, payment of interest may be made by check
mailed to the Holders at their addresses set forth in the register of Holders;
provided that payment by wire transfer of immediately available funds will be
required with respect to principal of and interest, and premium, if any, on, all
Global Notes and all other Notes the Holders of which shall have provided wire
transfer instructions to the Company or the Paying Agent. Such payment shall be
in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts. The Company
reserves the right to pay interest to Holders of Notes by check mailed to such
Holders at their registered addresses or by wire transfer to Holders of at least
$5.0 million aggregate principal amount of Notes.

         3. PAYING AGENT AND REGISTRAR. Initially, Manufacturers and Traders
Trust Company, the Trustee under the Indenture, will act as Paying Agent and
Registrar. The Company may change any Paying Agent or Registrar without notice
to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.

                                      A-2
<PAGE>

         4. INDENTURE. The Company issued the Notes under an Indenture dated as
of April 15, 2002 ("Indenture") among the Company, the Guarantors named therein
and the Trustee. The terms of the Notes include those stated in the Indenture
and those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). The Notes are subject to
all such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms. To the extent any provision of this Note conflicts with
the express provisions of the Indenture, the provisions of the Indenture shall
govern and be controlling. The Notes are obligations of the Company which may be
issued in unlimited amounts from time to time subject to compliance with Section
4.09 of the Indenture. The Company is issuing $260.0 million in aggregate
principal amount of Notes on the Issue Date.

         5. OPTIONAL REDEMPTION.

         Optional Redemption. (a) Except as described below, the Notes are not
redeemable before May 1, 2007. Thereafter, the Company may redeem the Notes at
its option, in whole or in part, upon not less than 30 nor more than 60 days'
notice, at the following redemption prices (expressed as percentages of the
principal amount thereof) if redeemed during the twelve month period commencing
on May 1 of the year set forth below.

<Table>
<Caption>
                                     YEAR                              PERCENTAGE
                                     ----                              ----------
<S>                                                                    <C>
                     2007................................               104.938%
                     2008................................               103.292%
                     2009................................               101.646%
                     2010 and thereafter.................               100.000%
</Table>

         In addition, the Company must pay all accrued and unpaid interest on
the Notes redeemed.

         (b) Notwithstanding the foregoing, up to 35% of the initial aggregate
principal amount of the Notes may be redeemed on or prior to May 1, 2005, at the
option of the Company, within 90 days of an Equity Offering with the net
proceeds of such offering at a redemption price equal to 109.875% of the
principal amount thereof, together with accrued and unpaid interest, if any, to
the date of redemption (subject to the right of holders of record on relevant
record dates to receive interest due on relevant interest payment dates);
provided, that after giving effect to such redemption at least 65% of the Notes
originally issued under the Indenture remains outstanding.

         6. MANDATORY REDEMPTION.

         Except as set forth in paragraph 7 below, the Company shall not be
required to make mandatory redemption payments with respect to the Notes.

                                      A-3
<PAGE>

         7. REPURCHASE AT OPTION OF HOLDER.

         (a) Upon the occurrence of a Change of Control, the Company will be
required to offer to purchase all of the outstanding Notes at a purchase price
equal to 101% of the principal amount thereof, plus accrued and unpaid interest,
if any, thereon to the date of repurchase.

         (b) The Company is, subject to certain conditions, obligated to make an
offer to purchase the Notes at 100% of their principal amount, plus accrued and
unpaid interest, if any, thereon to the date of repurchase with certain net cash
proceeds of certain sales or other dispositions of assets in accordance with the
Indenture.

         8. NOTICE OF REDEMPTION. Notice of redemption will be mailed at least
30 days but not more than 60 days before the redemption date to each Holder
whose Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof
called for redemption.

         9. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes may be registered and Notes may be exchanged as provided in
the Indenture. The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the
Company and the Trustee may require a Holder to pay any taxes and fees required
by law or permitted by the Indenture. The Company need not exchange or register
the transfer of any Note or portion of a Note selected for redemption, except
for the unredeemed portion of any Note being redeemed in part. Also, the Company
need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record
date and the corresponding Interest Payment Date.

         10. PERSONS DEEMED OWNERS. The registered Holder of a Note may be
treated as its owner for all purposes.

         11. AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions,
the Indenture, the Note Guarantees or the Notes may be amended or supplemented
with the written consent of the Holders of at least a majority in principal
amount of the then outstanding Notes voting as a single class, and any existing
default or compliance with any provision of the Indenture, the Note Guarantees
or the Notes may be waived with the written consent of the Holders of a majority
in principal amount of the then outstanding Notes voting as a single class.
Without the consent of any Holder of a Note, the Indenture, the Note Guarantees
or the Notes may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place of
certificated Notes, to provide for the assumption of the Company's or
Guarantor's obligations to Holders of the Notes in case of a merger or
consolidation, to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect in any
material respects the rights under the Indenture of any such Holder, to comply
with the requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the Trust Indenture Act, or to allow any
Guarantor to execute a

                                      A-4
<PAGE>

supplemental indenture to the Indenture and/or a Note Guarantee with respect to
the Notes, or to evidence and provide for the acceptance of appointment under
the Indenture of a successor Trustee.

         12. DEFAULTS AND REMEDIES. Events of Default are set forth in the
Indenture. If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable. Notwithstanding the foregoing, in
the case of an Event of Default arising from certain events of bankruptcy or
insolvency, all outstanding Notes will become due and payable without further
action or notice. Holders may not enforce the Indenture or the Notes except as
provided in the Indenture. Subject to certain limitations, Holders of a majority
in principal amount of the then outstanding Notes may direct the Trustee in
writing in its exercise of any trust or power. The Trustee may withhold from
Holders of the Notes notice of any continuing Default or Event of Default
(except a Default or Event of Default relating to the payment of principal or
interest) if it determines that withholding notice is in their interest. The
Holders of a majority in aggregate principal amount of the Notes then
outstanding by written notice to the Trustee may on behalf of the Holders of all
of the Notes waive any existing Default or Event of Default and its consequences
under the Indenture except a continuing Default or Event of Default in the
payment of interest on, or the principal of, the Notes. The Company is required
to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

         13. SUBORDINATION. The Notes will be subordinated in right of payment
to all existing and future Senior Indebtedness of the Company to the extent set
forth in the Indenture.

         14. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or
any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee.

         15. NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or stockholder, of the Company, as such, shall not have any
liability for any obligations of the Company under the Notes or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of the Notes.

         16. AUTHENTICATION. This Note shall not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

         17. ABBREVIATIONS. Customary abbreviations may be used in the name of a
Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A
(= Uniform Gifts to Minors Act).

         18. ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND
RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to Holders of
Notes under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes shall have all the rights set forth in the

                                      A-5
<PAGE>

Registration Rights Agreement dated as of April 15, 2002, between the Company
and the parties named on the signature pages thereof (the "Registration Rights
Agreement").

         19. CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers
in notices of redemption as a convenience to Holders. No representation is made
as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

                                      A-6
<PAGE>

         The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture and/or the Registration Rights Agreement.
Requests may be made to:

Fleming Companies, Inc.
1945 Lakepointe Drive
Lewisville, Texas 75029
Attention: Investor Relations

                                      A-7
<PAGE>

                                 ASSIGNMENT FORM

         To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:
                                             -----------------------------------
                                               (Insert assignee's legal name)

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint ________________________________________________________
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

Date:  _______________
                                       Your Signature:
                                                      --------------------------
                                       (Sign exactly as your name appears on the
                                       face of this Note)

Signature Guarantee*:
                      -------------------------

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A-8
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

         If you want to elect to have this Note purchased by the Company
pursuant to Section 4.10 or 4.14 of the Indenture, check the appropriate box
below:

                        [ ] Section 4.10        [ ] Section 4.14

         If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.14 of the Indenture, state the
amount you elect to have purchased:

                                   $_______________

Date: _______________

                                       Your Signature:
                                                      --------------------------
                                       (Sign exactly as your name appears on the
                                       face of this Note)

                                       Tax Identification No.:
                                                              ------------------

Signature Guarantee*:
                     -----------------------

* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).

                                      A-9
<PAGE>

              SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

         The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of
another Global Note or Definitive Note for an interest in this Global Note, have
been made:

<Table>
<Caption>

                                                                          Principal Amount of
                                Amount of              Amount of           this Global Note         Signature of
                               decrease in            increase in           following such       authorized officer
                            Principal Amount        Principal Amount           decrease          of Trustee or Note
    Date of Exchange       of this Global Note    of this Global Note        (or increase)            Custodian
    ----------------       -------------------    -------------------     -------------------    ------------------
<S>                        <C>                    <C>                     <C>                    <C>

</Table>

                                      A-10
<PAGE>

                                                                       EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

Fleming Companies, Inc.
1945 Lakepointe Drive
Lewisville, Texas 75029

[Registrar address block]

         Re: 9 7/8% Senior Subordinated Notes due 2012

         Reference is hereby made to the Indenture, dated as of April 15, 2002
(the "Indenture"), among Fleming Companies, Inc., an Oklahoma corporation, as
issuer (the "Company"), the Guarantors named therein and Manufacturers and
Traders Trust Company, as trustee. Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

         ___________________, (the "Transferor") owns and proposes to transfer
the Note[s] or interest in such Note[s] specified in Annex A hereto, in the
principal amount of $___________ in such Note[s] or interests (the "Transfer"),
to ___________________________ (the "Transferee"), as further specified in Annex
A hereto. In connection with the Transfer, the Transferor hereby certifies that:

                             [CHECK ALL THAT APPLY]

         1. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST
IN THE 144A GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO RULE 144A. The Transfer
is being effected pursuant to and in accordance with Rule 144A under the United
States Securities Act of 1933, as amended (the "Securities Act"), and,
accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believed and believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect to
which such Person exercises sole investment discretion, and such Person and each
such account is a "qualified institutional buyer" within the meaning of Rule
144A in a transaction meeting the requirements of Rule 144A and such Transfer is
in compliance with any applicable blue sky securities laws of any state of the
United States. Upon consummation of the proposed Transfer in accordance with the
terms of the Indenture, the transferred beneficial interest or Definitive Note
will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the 144A Global Note and/or the Definitive Note and
in the Indenture and the Securities Act.

         2. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST
IN THE REGULATION S GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO REGULATION S.
The Transfer is being effected pursuant to and in accordance with Rule 903 or
Rule 904 under the Securities Act and, accordingly, the Transferor hereby
further certifies that (i) the Transfer is not being made to a person in the
United States and (x) at the time the buy order was originated, the Transferee
was

                                      B-1
<PAGE>

outside the United States or such Transferor and any Person acting on its
behalf reasonably believed and believes that the Transferee was outside the
United States or (y) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither such
Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling efforts
have been made in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S under the Securities Act, (iii) the transaction is not
part of a plan or scheme to evade the registration requirements of the
Securities Act and (iv) if the proposed transfer is being made prior to the
expiration of the Restricted Period, the transfer is not being made to a U.S.
Person or for the account or benefit of a U.S. Person (other than an Initial
Purchaser). Upon consummation of the proposed transfer in accordance with the
terms of the Indenture, the transferred beneficial interest or Definitive Note
will be subject to the restrictions on Transfer enumerated in the Private
Placement Legend printed on the Regulation S Global Note and/or the Definitive
Note and in the Indenture and the Securities Act.

         3. [ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A
BENEFICIAL INTEREST IN THE IAI GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO ANY
PROVISION OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and
any applicable blue sky securities laws of any state of the United States, and
accordingly the Transferor hereby further certifies that (check one):

                  (a) [ ] such Transfer is being effected pursuant to and in
         accordance with Rule 144 under the Securities Act;

                                       or

                  (b) [ ] such Transfer is being effected to the Company or a
         subsidiary thereof;

                                       or

                  (c) [ ] such Transfer is being effected pursuant to an
         effective registration statement under the Securities Act and in
         compliance with the prospectus delivery requirements of the Securities
         Act;

                                       or

                  (d) [ ] such Transfer is being effected to an Institutional
         Accredited Investor and pursuant to an exemption from the registration
         requirements of the Securities Act other than Rule 144A, Rule 144 or
         Rule 904, and the Transferor hereby further certifies that it has not
         engaged in any general solicitation within the meaning of Regulation D
         under the Securities Act and the Transfer complies with the transfer
         restrictions applicable to beneficial interests in a Restricted Global
         Note or Restricted Definitive Notes and the requirements of the
         exemption claimed, which certification is supported by (1) a
         certificate executed by the Transferee in the form of Exhibit D to the
         Indenture and (2) if such Transfer is in respect of a principal amount
         of Notes at the time of transfer of less than $250,000, an Opinion of
         Counsel provided by the Transferor or the Transferee (a copy of which
         the Transferor has attached to this certification), to the effect that
         such Transfer is in compliance with the Securities Act. Upon
         consummation

                                      B-2
<PAGE>

         of the proposed transfer in accordance with the terms of the Indenture,
         the transferred beneficial interest or Definitive Note will be subject
         to the restrictions on transfer enumerated in the Private Placement
         Legend printed on the IAI Global Note and/or the Definitive Notes and
         in the Indenture and the Securities Act.

         4. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST
IN AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.

                  (a) [ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The
         Transfer is being effected pursuant to and in accordance with Rule 144
         under the Securities Act and in compliance with the transfer
         restrictions contained in the Indenture and any applicable blue sky
         securities laws of any state of the United States and (ii) the
         restrictions on transfer contained in the Indenture and the Private
         Placement Legend are not required in order to maintain compliance with
         the Securities Act. Upon consummation of the proposed Transfer in
         accordance with the terms of the Indenture, the transferred beneficial
         interest or Definitive Note will no longer be subject to the
         restrictions on transfer enumerated in the Private Placement Legend
         printed on the Restricted Global Notes, on Restricted Definitive Notes
         and in the Indenture.

                  (b) [ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The
         Transfer is being effected pursuant to and in accordance with Rule 903
         or Rule 904 under the Securities Act and in compliance with the
         transfer restrictions contained in the Indenture and any applicable
         blue sky securities laws of any state of the United States and (ii) the
         restrictions on transfer contained in the Indenture and the Private
         Placement Legend are not required in order to maintain compliance with
         the Securities Act. Upon consummation of the proposed Transfer in
         accordance with the terms of the Indenture, the transferred beneficial
         interest or Definitive Note will no longer be subject to the
         restrictions on transfer enumerated in the Private Placement Legend
         printed on the Restricted Global Notes, on Restricted Definitive Notes
         and in the Indenture.

                  (c) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i)
         The Transfer is being effected pursuant to and in compliance with an
         exemption from the registration requirements of the Securities Act
         other than Rule 144, Rule 903 or Rule 904 and in compliance with the
         transfer restrictions contained in the Indenture and any applicable
         blue sky securities laws of any State of the United States and (ii) the
         restrictions on transfer contained in the Indenture and the Private
         Placement Legend are not required in order to maintain compliance with
         the Securities Act. Upon consummation of the proposed Transfer in
         accordance with the terms of the Indenture, the transferred beneficial
         interest or Definitive Note will not be subject to the restrictions on
         transfer enumerated in the Private Placement Legend printed on the
         Restricted Global Notes or Restricted Definitive Notes and in the
         Indenture.

         This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                       [Insert Name of Transferor]

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

Dated:
      -----------------------

                                      B-3
<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

         1.       The Transferor owns and proposes to transfer the following:

                            [CHECK ONE OF (a) OR (b)]

                  (a) [ ] a beneficial interest in the:

                           (i)   [ ]  144A Global Note (CUSIP _________), or

                           (ii)  [ ]  Regulation S Global Note (CUSIP
                                      _________), or

                           (iii) [ ]  IAI Global Note (CUSIP _________); or

                  (b) [ ]  a Restricted Definitive Note.

         2.       After the Transfer the Transferee will hold:

                                   [CHECK ONE]

                  (a) [ ]  a beneficial interest in the:

                           (i)   [ ]  144A Global Note (CUSIP _________), or

                           (ii)  [ ]  Regulation S Global Note (CUSIP
                                      _________), or

                           (iii) [ ]  IAI Global Note (CUSIP _________); or

                           (iv)  [ ]  Unrestricted Global Note (CUSIP
                                      _________); or

                  (b) [ ]  a Restricted Definitive Note; or

                  (c) [ ]  an Unrestricted Definitive Note,

                  in accordance with the terms of the Indenture.

                                      B-4
<PAGE>

                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

Fleming Companies, Inc.
1945 Lakepointe Drive
Lewisville, Texas 75029

[Registrar address block]

         Re: 9 7/8% Senior Subordinated Notes due 2012

                              (CUSIP ____________)

         Reference is hereby made to the Indenture, dated as of April 15, 2002
(the "Indenture"), among Fleming Companies, Inc., an Oklahoma corporation, as
issuer (the "Company"), the Guarantors named therein and Manufacturers and
Traders Trust Company, as trustee. Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

         __________________________, (the "Owner") owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $____________ in such Note[s] or interests (the "Exchange"). In
connection with the Exchange, the Owner hereby certifies that:

         1. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN A
RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN AN UNRESTRICTED GLOBAL NOTE

                  (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
         RESTRICTED GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL
         NOTE. In connection with the Exchange of the Owner's beneficial
         interest in a Restricted Global Note for a beneficial interest in an
         Unrestricted Global Note in an equal principal amount, the Owner hereby
         certifies (i) the beneficial interest is being acquired for the Owner's
         own account without transfer, (ii) such Exchange has been effected in
         compliance with the transfer restrictions applicable to the Global
         Notes and pursuant to and in accordance with the United States
         Securities Act of 1933, as amended (the "Securities Act"), (iii) the
         restrictions on transfer contained in the Indenture and the Private
         Placement Legend are not required in order to maintain compliance with
         the Securities Act and (iv) the beneficial interest in an Unrestricted
         Global Note is being acquired in compliance with any applicable blue
         sky securities laws of any state of the United States.

                  (b) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
         RESTRICTED GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection
         with the Exchange of the Owner's beneficial interest in a Restricted
         Global Note for an Unrestricted Definitive Note, the Owner hereby
         certifies (i) the Definitive Note is being acquired for the Owner's own
         account without transfer, (ii) such Exchange has been effected in
         compliance with the transfer restrictions applicable to the

                                      C-1
<PAGE>

         Restricted Global Notes and pursuant to and in accordance with the
         Securities Act, (iii) the restrictions on transfer contained in the
         Indenture and the Private Placement Legend are not required in order to
         maintain compliance with the Securities Act and (iv) the Definitive
         Note is being acquired in compliance with any applicable blue sky
         securities laws of any state of the United States.

                  (c) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE
         TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection
         with the Owner's Exchange of a Restricted Definitive Note for a
         beneficial interest in an Unrestricted Global Note, the Owner hereby
         certifies (i) the beneficial interest is being acquired for the Owner's
         own account without transfer, (ii) such Exchange has been effected in
         compliance with the transfer restrictions applicable to Restricted
         Definitive Notes and pursuant to and in accordance with the Securities
         Act, (iii) the restrictions on transfer contained in the Indenture and
         the Private Placement Legend are not required in order to maintain
         compliance with the Securities Act and (iv) the beneficial interest is
         being acquired in compliance with any applicable blue sky securities
         laws of any state of the United States.

                  (d) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE
         TO UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner's
         Exchange of a Restricted Definitive Note for an Unrestricted Definitive
         Note, the Owner hereby certifies (i) the Unrestricted Definitive Note
         is being acquired for the Owner's own account without transfer, (ii)
         such Exchange has been effected in compliance with the transfer
         restrictions applicable to Restricted Definitive Notes and pursuant to
         and in accordance with the Securities Act, (iii) the restrictions on
         transfer contained in the Indenture and the Private Placement Legend
         are not required in order to maintain compliance with the Securities
         Act and (iv) the Unrestricted Definitive Note is being acquired in
         compliance with any applicable blue sky securities laws of any state of
         the United States.

         2. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS IN
RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN RESTRICTED GLOBAL NOTES

                  (a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
         RESTRICTED GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection
         with the Exchange of the Owner's beneficial interest in a Restricted
         Global Note for a Restricted Definitive Note with an equal principal
         amount, the Owner hereby certifies that the Restricted Definitive Note
         is being acquired for the Owner's own account without transfer. Upon
         consummation of the proposed Exchange in accordance with the terms of
         the Indenture, the Restricted Definitive Note issued will continue to
         be subject to the restrictions on transfer enumerated in the Private
         Placement Legend printed on the Restricted Definitive Note and in the
         Indenture and the Securities Act.

                  (b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE
         TO BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with
         the Exchange of the Owner's Restricted Definitive Note for a beneficial
         interest in the [CHECK ONE] "144A Global Note, "Regulation S Global
         Note, "IAI Global Note with an equal principal amount, the Owner hereby
         certifies (i) the beneficial interest is being acquired for the Owner's
         own account without transfer and (ii) such Exchange has been effected
         in compliance with the transfer restrictions applicable to the

                                      C-2
<PAGE>

         Restricted Global Notes and pursuant to and in accordance with the
         Securities Act, and in compliance with any applicable blue sky
         securities laws of any state of the United States. Upon consummation of
         the proposed Exchange in accordance with the terms of the Indenture,
         the beneficial interest issued will be subject to the restrictions on
         transfer enumerated in the Private Placement Legend printed on the
         relevant Restricted Global Note and in the Indenture and the Securities
         Act.

                                      C-3
<PAGE>

         This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                       -----------------------------------------
                                                [Insert Name of Transferor]

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

Dated:
      -----------------------

                                      C-4
<PAGE>

                                                                       EXHIBIT D

                            FORM OF CERTIFICATE FROM
                   ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

Fleming Companies, Inc.
1945 Lakepointe Drive
Lewisville, Texas 75029

[Registrar address block]

         Re: 9 7/8% Senior Subordinated Notes due 2012

         Reference is hereby made to the Indenture, dated as of April 15, 2002
(the "Indenture"), among Fleming Companies, Inc., an Oklahoma corporation, as
issuer (the "Company"), the Guarantors named therein and Manufacturers and
Traders Trust Company, as trustee. Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

         In connection with our proposed purchase of $____________ aggregate
principal amount of:

         (a) [ ] a beneficial interest in a Global Note, or

         (b) [ ] a Definitive Note,

         we confirm that:

         1. We understand that any subsequent transfer of the Notes or any
interest therein is subject to certain restrictions and conditions set forth in
the Indenture and the undersigned agrees to be bound by, and not to resell,
pledge or otherwise transfer the Notes or any interest therein except in
compliance with, such restrictions and conditions and the United States
Securities Act of 1933, as amended (the "Securities Act").

         2. We understand that the offer and sale of the Notes have not been
registered under the Securities Act, and that the Notes and any interest therein
may not be offered or sold except as permitted in the following sentence. We
agree, on our own behalf and on behalf of any accounts for which we are acting
as hereinafter stated, that if we should sell the Notes or any interest therein,
we will do so only (A) to the Company or any subsidiary thereof, (B) in
accordance with Rule 144A under the Securities Act to a "qualified institutional
buyer" (as defined therein), (C) to an institutional "accredited investor" (as
defined below) that, prior to such transfer, furnishes (or has furnished on its
behalf by a U.S. broker-dealer) to you and to the Company a signed letter
substantially in the form of this letter and, if such transfer is in respect of
a principal amount of Notes, at the time of transfer of less than $250,000, an
Opinion of Counsel in form reasonably acceptable to the Company to the effect
that such transfer is in compliance with the Securities Act, (D) outside the
United States in accordance with Rule 904 of Regulation S under the Securities
Act, (E) pursuant to the provisions of Rule 144(k) under the

                                      D-1
<PAGE>

Securities Act or (F) pursuant to an effective registration statement under the
Securities Act, and we further agree to provide to any person purchasing the
Definitive Note or beneficial interest in a Global Note from us in a transaction
meeting the requirements of clauses (A) through (E) of this paragraph a notice
advising such purchaser that resales thereof are restricted as stated herein.

         3. We understand that, on any proposed resale of the Notes or
beneficial interest therein, we will be required to furnish to you and the
Company such certifications, legal opinions and other information as you and the
Company may reasonably require to confirm that the proposed sale complies with
the foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

         4. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of our investment in the Notes, and we and
any accounts for which we are acting are each able to bear the economic risk of
our or its investment.

         5. We are acquiring the Notes or beneficial interest therein purchased
by us for our own account or for one or more accounts (each of which is an
institutional "accredited investor") as to each of which we exercise sole
investment discretion.

         You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                                       -----------------------------------------
                                          [Insert Name of Accredited Investor]

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

Dated:
      -----------------------

                                      D-2
<PAGE>

                                                                       EXHIBIT E

                          FORM OF NOTATION OF GUARANTEE

         For value received, each Guarantor (which term includes any successor
Person under the Indenture) has, jointly and severally, unconditionally
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture dated as of April 15, 2002 (the "Indenture") among
Fleming Companies, Inc., an Oklahoma corporation (the "Company"), the Guarantors
listed on the signature pages thereto and Manufacturers and Traders Trust
Company, as trustee (the "Trustee"), (a) the due and punctual payment of the
principal of, premium, if any, and interest on the Notes (as defined in the
Indenture), whether at maturity, by acceleration, redemption or otherwise, the
due and punctual payment of interest on overdue principal and premium, and, to
the extent permitted by law, interest, and the due and punctual performance of
all other obligations of the Company to the Holders or the Trustee all in
accordance with the terms of the Indenture and (b) in case of any extension of
time of payment or renewal of any Notes or any of such other obligations, that
the same will be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. The obligations of the Guarantors to the Holders of
Notes and to the Trustee pursuant to the Note Guarantee and the Indenture are
expressly set forth in Article 11 of the Indenture and reference is hereby made
to the Indenture for the precise terms of the Note Guarantee.

                                       [NAME OF GUARANTOR(S)]

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                      E-1
<PAGE>

                                                                       EXHIBIT F

                         FORM OF SUPPLEMENTAL INDENTURE
                    TO BE DELIVERED BY SUBSEQUENT GUARANTORS

         SUPPLEMENTAL INDENTURE (this "Supplemental Indenture"), dated as of
________________, among __________________ (the "Guaranteeing Subsidiary"), a
subsidiary of Fleming Companies, Inc. (or its permitted successor), an Oklahoma
corporation (the "Company"), the Company, the other Guarantors (as defined in
the Indenture referred to herein) and Manufacturers and Traders Trust Company,
as trustee under the indenture referred to below (the "Trustee").

                                   WITNESSETH

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee an indenture (the "Indenture"), dated as of April 15, 2002 providing for
the issuance from time to time of the Company's 9 7/8% Senior Subordinated Notes
due 2012 (the "Notes");

         WHEREAS, the Indenture provides that under certain circumstances the
Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally
guarantee all of the Company's Obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "Note Guarantee"); and

         WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

         NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

         1. CAPITALIZED TERMS. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.

         2. AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees as
follows:

                  (a) Along with all Guarantors named in the Indenture, to
         jointly and severally Guarantee to each Holder of a Note authenticated
         and delivered by the Trustee and to the Trustee and its successors and
         assigns, the Notes or the obligations of the Company hereunder or
         thereunder, that:

                           (i) the principal of and interest on the Notes will
                  be promptly paid in full when due, whether at maturity, by
                  acceleration, redemption or otherwise, and interest on the
                  overdue principal of and interest on the Notes, if any, if
                  lawful, and all other obligations of the Company to the
                  Holders or the Trustee hereunder or thereunder will be
                  promptly paid in full or performed, all in accordance with the
                  terms hereof and thereof; and

                                      F-1
<PAGE>

                           (ii) in case of any extension of time of payment or
                  renewal of any Notes or any of such other obligations, that
                  same will be promptly paid in full when due or performed in
                  accordance with the terms of the extension or renewal, whether
                  at stated maturity, by acceleration or otherwise. Failing
                  payment when due of any amount so guaranteed or any
                  performance so guaranteed for whatever reason, the Guarantors
                  shall be jointly and severally obligated to pay the same
                  immediately.

                  (b) The obligations hereunder shall be unconditional,
         irrespective of the validity, regularity or enforceability of the Notes
         or the Indenture, the absence of any action to enforce the same, any
         waiver or consent by any Holder of the Notes with respect to any
         provisions hereof or thereof, the recovery of any judgment against the
         Company, any action to enforce the same or any other circumstance which
         might otherwise constitute a legal or equitable discharge or defense of
         a guarantor.

                  (c) The following is hereby waived: diligence presentment,
         demand of payment, filing of claims with a court in the event of
         insolvency or bankruptcy of the Company, any right to require a
         proceeding first against the Company, protest, notice and all demands
         whatsoever.

                  (d) This Note Guarantee shall not be discharged except by
         complete performance of the obligations contained in the Notes and the
         Indenture, and the Guaranteeing Subsidiary accepts all obligations of a
         Guarantor under the Indenture.

                  (e) If any Holder or the Trustee is required by any court or
         otherwise to return to the Company, the Guarantors, or any Custodian,
         Trustee, liquidator or other similar official acting in relation to
         either the Company or the Guarantors, any amount paid by either to the
         Trustee or such Holder, this Note Guarantee, to the extent theretofore
         discharged, shall be reinstated in full force and effect.

                  (f) The Guaranteeing Subsidiary shall not be entitled to any
         right of subrogation in relation to the Holders in respect of any
         obligations guaranteed hereby until payment in full of all obligations
         guaranteed hereby.

                  (g) As between the Guarantors, on the one hand, and the
         Holders and the Trustee, on the other hand, (x) the maturity of the
         obligations guaranteed hereby may be accelerated as provided in Article
         6 of the Indenture for the purposes of this Note Guarantee,
         notwithstanding any stay, injunction or other prohibition preventing
         such acceleration in respect of the obligations guaranteed hereby, and
         (y) in the event of any declaration of acceleration of such obligations
         as provided in Article 6 of the Indenture, such obligations (whether or
         not due and payable) shall forthwith become due and payable by the
         Guarantors for the purpose of this Note Guarantee.

                  (h) The Guarantors shall have the right to seek contribution
         from any non-paying Guarantor so long as the exercise of such right
         does not impair the rights of the Holders under the Guarantee.

                                      F-2
<PAGE>

                  (i) Pursuant to Section 11.02 of the Indenture, after giving
         effect to any maximum amount and any other contingent and fixed
         liabilities that are relevant under any applicable Bankruptcy or
         fraudulent conveyance laws, and after giving effect to any collections
         from, rights to receive contribution from or payments made by or on
         behalf of any other Guarantor in respect of the obligations of such
         other Guarantor under Article 11 of the Indenture, this new Note
         Guarantee shall be limited to the maximum amount permissible such that
         the obligations of such Guarantor under this Note Guarantee will not
         constitute a fraudulent transfer or conveyance.

         3. EXECUTION AND DELIVERY. Each Guaranteeing Subsidiary agrees that the
Note Guarantees shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Note Guarantee.

         4. GUARANTEEING SUBSIDIARY mAY CONSOLIDATE, eTC. ON CERTAIN TERMS.

                  (a) The Guaranteeing Subsidiary may not consolidate with or
         merge with or into (whether or not such Guarantor is the surviving
         Person) another corporation, Person or entity whether or not affiliated
         with such Guarantor unless:

                           (i) subject to Sections 11.04 and 11.05 of the
                  Indenture, the Person formed by or surviving any such
                  consolidation or merger (if other than a Guarantor or the
                  Company) unconditionally assumes all the obligations of such
                  Guarantor, pursuant to a supplemental indenture in form and
                  substance reasonably satisfactory to the Trustee, under the
                  Notes, the Indenture and the Note Guarantee on the terms set
                  forth herein or therein; and

                           (ii) immediately after giving effect to such
                  transaction, no Default or Event of Default exists.

                  (b) In case of any such consolidation, merger, sale or
         conveyance and upon the assumption by the successor corporation, by
         supplemental indenture, executed and delivered to the Trustee and
         satisfactory in form to the Trustee, of the Note Guarantee endorsed
         upon the Notes and the due and punctual performance of all of the
         covenants and conditions of the Indenture to be performed by the
         Guarantor, such successor corporation shall succeed to and be
         substituted for the Guarantor with the same effect as if it had been
         named herein as a Guarantor. Such successor corporation thereupon may
         cause to be signed any or all of the Note Guarantees to be endorsed
         upon all of the Notes issuable hereunder which theretofore shall not
         have been signed by the Company and delivered to the Trustee. All the
         Note Guarantees so issued shall in all respects have the same legal
         rank and benefit under the Indenture as the Note Guarantees theretofore
         and thereafter issued in accordance with the terms of the Indenture as
         though all of such Note Guarantees had been issued at the date of the
         execution hereof.

                  (c) Except as set forth in Articles 4 and 5 and Section 11.05
         of Article 11 of the Indenture, and notwithstanding clauses (a) and (b)
         above, nothing contained in the Indenture or in any of the Notes shall
         prevent any consolidation or merger of a Guarantor with or into the

                                      F-3
<PAGE>

         Company or another Guarantor, or shall prevent any sale or conveyance
         of the property of a Guarantor as an entirety or substantially as an
         entirety to the Company or another Guarantor.

         5. RELEASES.

                  (a) In the event of a sale or other disposition of all of the
         assets of any Guarantor, by way of merger, consolidation, liquidation,
         dissolution or otherwise, or a sale or other disposition of all to the
         capital stock of any Guarantor, in each case to a Person that is not
         (either before or after giving effect to such transaction) a Restricted
         Subsidiary of the Company, then such Guarantor (in the event of a sale
         or other disposition, by way of merger, consolidation, liquidation,
         dissolution or otherwise, of all of the capital stock of such
         Guarantor) or the corporation acquiring the property (in the event of a
         sale or other disposition of all or substantially all of the assets of
         such Guarantor) will be released and relieved of any obligations under
         its Note Guarantee; provided that the Net Proceeds of such sale or
         other disposition are applied in accordance with the applicable
         provisions of the Indenture, including without limitation Section 4.10
         of the Indenture. Upon delivery by the Company to the Trustee of an
         Officers' Certificate and an Opinion of Counsel to the effect that such
         sale or other disposition was made by the Company in accordance with
         the provisions of the Indenture, including without limitation Section
         4.10 of the Indenture, the Trustee shall execute any documents
         reasonably required in order to evidence the release of any Guarantor
         from its obligations under its Note Guarantee.

                  (b) Any Guarantor not released from its obligations under its
         Note Guarantee shall remain liable for the full amount of principal of
         and interest on the Notes and for the other obligations of any
         Guarantor under the Indenture as provided in Article 11 of the
         Indenture.

         6. NO RECOURSE AGAINST OTHERS. No past, present or future director,
officer, employee, incorporator, stockholder or agent of the Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Company
or any Guaranteeing Subsidiary under the Notes, any Note Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. Such waiver may
not be effective to waive liabilities under the federal securities laws and it
is the view of the SEC that such a waiver is against public policy.

         7. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

         8. COUNTERPARTS. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.

         9. EFFECT OF HEADINGS. The Section headings herein are for convenience
only and shall not affect the construction hereof.

                                      F-4
<PAGE>

         10. THE TRUSTEE. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Guaranteeing Subsidiary and the Company.

                                      F-5
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed and attested, all as of the date first above
written.

Dated:               ,
      ---------------  ----

                                       [GUARANTEEING SUBSIDIARY]

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       FLEMING COMPANIES, INC.

                                       By:
                                          --------------------------------------
                                          Name:
                                          Title:

                                       MANUFACTURERS AND TRADERS TRUST COMPANY,
                                         not in its individual capacity but
                                         solely as Trustee

                                       By:
                                          --------------------------------------
                                          Authorized Signatory

                                      F-6

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