Document:

<PAGE>

                                                                    Exhibit 10.1

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

                            ASSET PURCHASE AGREEMENT

                                      AMONG

                               MCC-QUICK PAK, LLC,

                                QUICK PAK, INC.,

                   ALEXANDER J. BUHAYAR AND DEBORAH R. BUHAYAR

                                       AND

                             MULTI-COLOR CORPORATION

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

                                  May 31, 2002

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                              Page
<S>                                                                                                  <C>
1. Definition of Certain Terms ....................................................................     1

2. Purchase and Sale of Assets ....................................................................     1
   2.1  Purchase and Sale .........................................................................     1
   2.2  Excluded Assets ...........................................................................     3
   2.3  Assumed Liabilities .......................................................................     3
   2.4  Retained Liabilities ......................................................................     4
   2.5  Purchase Price ............................................................................     5
   2.6  Purchase Price Adjustment .................................................................     5
   2.7  Determination of Working Capital and Purchase Price Adjustment Amount .....................     5
   2.8  Inventory .................................................................................     6
   2.9  Uncollected Receivables; Returned Inventories .............................................     6
   2.10 Allocation of Purchase Price ..............................................................     7

3. Closing ........................................................................................     7

4. Representations and Warranties of Seller and the Shareholders ..................................     7
   4.1  Organizational Status .....................................................................     7
   4.2  Financial Statements ......................................................................     7
   4.3  Absence of Undisclosed Liabilities ........................................................     8
   4.4  Absence of Certain Events .................................................................     8
   4.5  Accounts Receivable .......................................................................    10
   4.6  Assets Necessary To Business ..............................................................    10
   4.7  Authority; Consents; Enforcement: Noncontravention; Noncompetes ...........................    11
   4.8  Books and Records .........................................................................    12
   4.9  Compliance With Legal Requirements; Governmental Authorizations ...........................    12
   4.10 Computer Systems; Software ................................................................    14
   4.11 Condition and Sufficiency of Assets .......................................................    14
   4.12 Contracts .................................................................................    14
   4.13 Customers of Seller; Conditions Affecting Seller ..........................................    15
   4.14 Employee Benefits .........................................................................    15
   4.15 Employees and Compensation ................................................................    17
   4.16 Environmental Matters .....................................................................    18
   4.17 Insurance .................................................................................    19
   4.18 Intellectual Property .....................................................................    19
   4.19 Inventory .................................................................................    22
   4.20 Investment Intention ......................................................................    23
   4.21 Labor Relations; Compliance ...............................................................    23
   4.22 Litigation; Orders ........................................................................    23
   4.23 No Agent or Broker ........................................................................    24
   4.24 Notices of Violation ......................................................................    24
</TABLE>

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                              Page
<S>                                                                                                  <C>
   4.25 Personal Property .........................................................................    24
   4.26 Products ..................................................................................    24
   4.27 Real Property .............................................................................    25
   4.28 Similar Business Ownership ................................................................    25
   4.29 Solvency ..................................................................................    26
   4.30 Status of Contracts .......................................................................    26
   4.31 Studies ...................................................................................    26
   4.32 Subsidiaries and Investments ..............................................................    27
   4.33 Taxes; Tax Returns; Tax Elections .........................................................    27
   4.34 Title to Properties .......................................................................    28
   4.35 Completeness of Statement; Effect of Representations and Warranties .......................    28

5. Representations and Warranties of Buyer ........................................................    28
   5.1  Corporate Status ..........................................................................    28
   5.2  Authority; Consents; Enforcement; Noncontravention; Noncompetes ...........................    28
   5.3  No Agent or Broker ........................................................................    29
   5.4  Completeness of Statements; Effect of Representations and Warranties ......................    29
   5.5  Guarantor's Corporate Status ..............................................................    30
   5.6  Guarantor Authorities; Consents; Enforcement; Noncontravention ............................    30

6. Covenants of the Parties .......................................................................    31
   6.1  Transition of the Business ................................................................    31
   6.2  Employment of Business's Employees ........................................................    31
   6.3  Further Assurances ........................................................................    31
   6.4  Proration of Expenses and Other Charges of the Business ...................................    31
   6.5  Filing of Taxes; Payment ..................................................................    32
   6.6  Sales and Other State Taxes ...............................................................    32
   6.7  Use of Names ..............................................................................    32
   6.8  Guaranty ..................................................................................    32
   6.9  Jergens Sublease ..........................................................................    32

7. Conditions Precedent to Buyer's Obligation to Close ............................................    32
   7.1  Accuracy of Representations ...............................................................    33
   7.2  Seller and the Shareholders' Performance ..................................................    33
   7.3  Consents ..................................................................................    33
   7.4  Other Documents ...........................................................................    33
   7.5  No Proceedings ............................................................................    33
   7.6  No Prohibition ............................................................................    33

8. Conditions Precedent to Seller's Obligation to Close ...........................................    33
   8.1  Accuracy of Representations ...............................................................    34
   8.2  Buyer's Performance .......................................................................    34
</TABLE>

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                              Page
<S>                                                                                                  <C>
    8.3   Consents ................................................................................    34
    8.4   Other Documents .........................................................................    34
    8.5   No Proceedings ..........................................................................    34
    8.6   Assumption of Leases and Assumed Liabilities and Release ................................    34

9.  Termination ...................................................................................    34
    9.1   Termination Events ......................................................................    34
    9.2   Effect of Termination ...................................................................    35

10. Deliveries and Actions To Be Taken At Closing .................................................    35
    10.1  Deliveries by Seller and the Shareholders ...............................................    35
    10.2  Deliveries by Buyer .....................................................................    37
    10.3  Covenants and Agreements Not-To-Compete .................................................    37
    10.4  Leases ..................................................................................    37
    10.5  Assumption Agreement ....................................................................    37
    10.6  Shareholders' Consulting Agreements .....................................................    38

11. Indemnification; Remedies .....................................................................    38
    11.1  Survival; Right to Indemnification ......................................................    38
    11.2  Indemnification and Payment of Damages By Seller and the Shareholders ...................    38
    11.3  Remedies of Buyer Indemnities Not Exclusive .............................................    38
    11.4  Indemnification By Buyer ................................................................    38
    11.5  Remedies of Seller Indemnities Not Exclusive ............................................    39
    11.6  Time Limitations ........................................................................    39
    11.7  Indemnity Claims ........................................................................    39
    11.8  Right of Set-Off ........................................................................    40
    11.9  Limitations on Indemnification by Seller and the Shareholders ...........................    41
    11.10 Adjustments .............................................................................    41
    11.11 Sole and Exclusive Remedy ...............................................................    42

12. Miscellaneous Provisions ......................................................................    42
    12.1  Arbitration .............................................................................    42
    12.2  Amendment; Waiver .......................................................................    42
    12.3  Limited Assignment; Binding Effect ......................................................    43
    12.4  Confidentiality of Certain Information ..................................................    43
    12.5  Confidentiality of Agreement ............................................................    44
    12.6  Construction and Interpretation of Agreement ............................................    44
    12.7  Counterparts ............................................................................    44
    12.8  Cumulative Remedies; Specific Performance ...............................................    44
    12.9  Entire Agreement ........................................................................    45
    12.10 Exclusive Forum .........................................................................    45
    12.11 Exhibits and Schedules ..................................................................    45
</TABLE>

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                              Page
<S>                                                                                                  <C>
    12.12 Expenses ................................................................................    45
    12.13 Further Assurances ......................................................................    45
    12.14 Governing Law ...........................................................................    46
    12.15 Independent Contractor Relationship .....................................................    46
    12.16 No Public Announcement ..................................................................    46
    12.17 No Third Party Beneficiaries ............................................................    46
    12.18 Notices .................................................................................    46
    12.19 Recovery of Expenses by Prevailing Party ................................................    47
    12.20 Severability of Provisions ..............................................................    47
    12.21 Time of Essence .........................................................................    48
</TABLE>

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                                    EXHIBITS

Description                                                              Exhibit

Excluded Assets ......................................................         A
Assumption Agreement .................................................         B
Note .................................................................         C
Purchase Price Allocation ............................................         D
Sales and Other Taxes ................................................         E
Seller's Authority Certificate .......................................         F
Seller's Compliance Certificate ......................................         G
Bill of Sale and Assignment Agreement ................................         H
Seller's Opinion of Counsel ..........................................         I
Buyer's Authority Certificate ........................................         J
Buyer's Compliance Certificate .......................................         K
Shareholders' Noncompetition Agreement ...............................         L
Seller's Noncompetition Agreement ....................................         M
Assignment and Assumption of Leases ..................................         N
Shareholders' Consulting Agreement ...................................         O

                                    SCHEDULES

Description                                                             Schedule

Claims .............................................................      2.1(f)
Assumed Contracts ..................................................      2.1(g)
Prepaid Expenses ...................................................      2.1(n)
Purchase Order Liabilities .........................................      2.3(b)
Bids ...............................................................      2.3(c)
Product Liability Claims ...........................................      2.3(e)
Facility Leases ....................................................      2.3(h)
Other Liabilities ..................................................      2.3(i)
Acquisition Balance Sheet ..........................................         2.6
Accounting Standards ...............................................         2.7
Organizational Status and Ownership ................................         4.1
Absence of Undisclosed Liabilities .................................         4.3
Absence of Certain Events ..........................................         4.4
Accounts Receivable ................................................         4.5
Seller's Consents ..................................................      4.7(b)
Compliance with Legal Requirements .................................      4.9(a)
Governmental Authorizations ........................................      4.9(b)
Condition of Computers .............................................     4.10(a)
Condition of Software ..............................................     4.10(b)
Operation of Computers .............................................     4.10(d)
Condition and Sufficiency of Assets ................................        4.11
Contracts ..........................................................        4.12

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Customers of Seller ................................................        4.13
Benefit Plans ......................................................     4.14(a)
Employees and Compensation .........................................        4.15
Environmental Matters ..............................................     4.16(a)
Environmental Claims ...............................................     4.16(b)
Environmental Orders ...............................................     4.16(c)
Hazardous Materials ................................................     4.16(d)
Release ............................................................     4.16(e)
Other Intellectual Property ........................................  4.18(a)(1)
Intellectual Property Licenses .....................................     4.18(b)
Patents ............................................................     4.18(c)
Marks ..............................................................     4.18(d)
Copyrights .........................................................     4.18(e)
Royalties ..........................................................     4.18(g)
Inventory ..........................................................        4.19
Labor Relations ....................................................        4.21
Litigation .........................................................        4.22
Personal Property ..................................................        4.25
Owned Real Property ................................................     4.27(a)
Leased Real Property ...............................................     4.27(b)
Similar Business Ownership .........................................        4.28
Status of Contracts and Leases .....................................        4.30
Studies ............................................................        4.31
Tax Returns ........................................................     4.33(a)
Tax Clearance Certificate ..........................................     4.33(d)
Title to Properties ................................................        4.34
Buyer's Authority ..................................................      5.2(a)
Buyer's Consents ...................................................      5.2(b)
Guarantor Authority ................................................      5.6(a)
Guarantor Consents .................................................      5.6(b)

                                      -vi-

<PAGE>

                            ASSET PURCHASE AGREEMENT

         This Asset Purchase Agreement (the "Agreement") is entered into and
effective as of May 31, 2002, among (i) MCC-Quick Pak, LLC ("Buyer"), an Ohio
limited liability company, (ii) Quick Pak, Inc. ("Seller"), an Ohio corporation,
(iii) Alexander J. Buhayar and Deborah R. Buhayar (individually a "Shareholder",
collectively the "Shareholders"), and (iv) Multi-Color Corporation
("Guarantor"), an Ohio corporation.

     Recitals:

     A.  Seller, all of the outstanding capital stock of which is owned by the
Shareholders, is engaged in the contract packaging business (the "Business")
with its principal office located in Cincinnati, Ohio.

     B.  Buyer desires to purchase from Seller, and Seller desires to sell to
Buyer, all of the Business and all of the assets and properties owned or used by
Seller in the conduct of the Business, for the consideration and upon the other
terms and conditions set forth in this Agreement.

     Agreement:

     Now, Therefore, the parties hereby agree as follows:

1.   Definition of Certain Terms. In addition to the terms defined in this
Agreement, certain other terms used in this Agreement are defined in the
Appendix of Defined Terms, and, when used herein, shall have the meaning set
forth in the Appendix.

     2.  Purchase and Sale of Assets.

         2.1 Purchase and Sale. Upon the terms and subject to the conditions of
this Agreement, at the Closing on the Closing Date, Seller shall sell, transfer,
convey, assign and deliver to Buyer, and Buyer shall purchase and acquire from
Seller, free and clear of all Encumbrances, all of Seller's right, title and
interest in and to the Business and all of Seller's property and assets, real,
personal or mixed, tangible and intangible, of every kind and description,
wherever located, belonging to Seller as of the Closing Date or which relate to
the Business, as a going concern, other than the Excluded Assets, including the
following (the "Acquisition Assets"):

             (a) Acquisition Balance Sheet Assets. All of the assets and
properties reflected on the Acquisition Balance Sheet, except those disposed of
in the Ordinary Course of Business, and including those acquired in the Ordinary
Course of Business, since the date thereof.

<PAGE>

             (b) Real Property. All leasehold and other interests in and to all
real property, including the leasehold interests identified on Schedules 4.27(a)
and 4.27(b), together with all improvements, buildings and fixtures located
thereon or therein and all construction in progress ("Real Property").

             (c) Personal Property. All machinery, equipment, fixtures, computer
hardware and software (subject to any restrictions by the licensor on the
assignment thereof) tools, supplies, spare parts, furniture, vehicles and all
other tangible personal property and assets owned or leased by Seller,
including, without limitation those identified on Schedule 4.25 ("Personal
Property").

             (d) Inventories. All inventories of raw materials, work-in-process
and finished goods of Seller, wherever located, including inventories located in
or about Seller's facilities, in transit to Seller's facilities or in transit to
any customer of Seller, provided that title has not passed to such customer of
Seller ("Inventories").

             (e) Accounts Receivable. All accounts receivable, notes receivable,
premiums receivable, commissions receivable and other rights to receive payments
from customers of Seller or from others, including all trade accounts receivable
representing amounts payable to Seller in respect of goods shipped, products
sold or services rendered, to customers or clients of Seller on or prior to the
Closing Date, and the full benefit of all security for such accounts, and all
claims, remedies and other rights related to any thereof, including those
identified on Schedule 4.5 ("Receivables").

             (f) Claims. All claims of Seller against third parties relating to
the Business or the Acquisition Assets, whether choate or inchoate, known or
unknown, contingent or otherwise, including without limitation, all such claims
listed on Schedule 2.1(f);

             (g) Contracts. All the interest (including all rights, benefits,
duties and obligations) that Seller possesses and has the right to transfer in
all written or oral contracts, agreements, indentures, warranties, notes, bonds,
loans, instruments, leases, conditional sales contracts, mortgages, licenses,
franchises, insurance policies, commitments or other arrangements or agreements
and understandings, including, without limitation, those identified on Schedule
2.1(g), and all outstanding offers or solicitations to enter into any of the
foregoing ("Contracts").

             (h) Data and Records. All operating data and records of Seller,
including customer lists and records, supplier agreements, rebate details,
general commercial information, referral sources, research and development
reports and records, production reports and records, equipment logs, operating
guides and manuals, copies of financial, accounting and personnel records,
correspondence and other similar documents and records ("Data and Records").

             (i) Goodwill. The going concern value and goodwill of Seller.

             (j) Governmental Authorizations. All Governmental Authorizations
owned, held or utilized by Seller in connection with the ownership of the
Acquisition Assets and the operation of the

                                      -2-

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Business, and all pending applications therefor, in each case to the extent
transferrable to Buyer, including those listed on Schedule 4.9(b).

             (k) Insurance Proceeds. All insurance proceeds arising in
connection with damage or loss to any of the Acquisition Assets occurring prior
to the Closing Date, to the extent not expended for the repair or restoration of
the Acquisition Assets ("Insurance Proceeds");

             (l) Intellectual Property. All of the intangible and intellectual
property which Seller possesses and has the right to transfer, including all
Internet domain names, e-mail addresses, Marks, whether registered or
unregistered, Trade Secrets, Patents and Copyrights and all applications for
registration thereof, all post office box numbers, all telephone and facsimile
numbers and other listings and numbers used in connection with the Business.

             (m) Noncompetition Agreements. The following noncompetiton
agreements or confidentiality agreements with certain of Seller's key employees:
(i) Trade Secret/Non-Competition Agreement with Tim Grubbs, (ii) Trade
Secret/Non-Competition Agreement with Johan Pot, (iii) Confidentiality Agreement
with Lawrence M. Mullis, II.

             (n) Prepaid Expenses. All prepaid expenses relating to the
Acquisition Assets, including those listed on Schedule 2.1(n) ("Prepaid
Expenses").

             (o) Other Assets. All other properties and assets of every kind,
character or description, tangible or intangible, owned by Seller or used or
held for use in connection with the Business, whether or not similar to the
items or types specifically set forth above ("Other Assets").

     2.2  Excluded Assets. Notwithstanding the above description of the
Acquisition Assets, there shall be excluded from the Acquisition Assets all of
Seller's cash, the Sagamore Note and the Sagamore account receivable, two laptop
computers used by the Shareholders, and the two automobiles used by the
Shareholders and other assets described on Exhibit A ("Excluded Assets").

     2.3  Assumed Liabilities. At the Closing, Buyer shall deliver to Seller
an undertaking and assumption, in the form of Exhibit B (the "Assumption
Agreement"), pursuant to which Buyer shall assume and agree to discharge only
the following specifically enumerated obligations and Liabilities of Seller (the
"Assumed Liabilities"):

             (a) Trade Payables. All Liabilities for payment of trade accounts
payable, other than trade accounts payable to any Related Person, (1) reflected
on the Acquisition Balance Sheet remaining unpaid on the Closing Date; and/or
(2) incurred by Seller in the Ordinary Course of Business between the date of
the Acquisition Balance Sheet and the Closing Date.

                                      -3-

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             (b) Purchase Orders. All Liabilities to Seller's customers or
clients under purchase orders for products or services not delivered, purchased
or otherwise completed on the Closing Date, including those set forth on
Schedule 2.3(b) which lists all purchase orders through May 30, 2002.

             (c) Bids. All open or pending bids for orders set forth on Schedule
2.3(c) which Buyer will process in accordance with Buyer's ordinary business
practices.

             (d) Warranties. All Liabilities to Seller's customers under
express, written warranties with respect to Seller's products or services
customarily given by Seller to its customers in the Ordinary Course of Business,
as reflected on the Closing Balance Sheet.

             (e) Product Liabilities. All Liabilities arising out of or relating
to the product liability claims identified on Schedule 2.3(e), as reflected on
the Closing Balance Sheet.

             (f) Contract Liabilities. All Liabilities of Seller arising after
the Closing Date (other than any Liability for, or resulting from, any breach or
default thereunder which occurred prior to the Closing) under the Contracts
identified on Schedule 2.1(g), as reflected on the Closing Balance Sheet.

             (g) Accrued Liabilities. All of Seller's accrued liabilities as
shown on the Acquisition Balance Sheet (including workers compensation, personal
property tax, payroll and the receiving accrual) less accrued liabilities paid
by Seller since the date of the Acquisition Balance Sheet and plus accrued
liabilities incurred by Seller in the Ordinary Course of Business since the date
of the Acquisition Balance Sheet.

             (h) Leases. All liabilities of Seller arising out of or relating to
Seller's lease for 12110 Champion Way and Seller's sublease for the Best
Place/Jergens space at 12111 Best Place, Sharonville, Ohio, each of which is
more fully described on Schedule 2.3(h) (collectively the "Facility Leases") to
the extent such Liabilities accrue on or after the Effective Date.

             (i) Other Liabilities. The promissory note to Fifth Third Bank in
the principal amount of Sixty Thousand Dollars ($60,000), the forklift leases
described on Schedule 2.3(i) (including current and long term portions), all
other current liabilities incurred in the Ordinary Course of Business and
reflected on the Closing Balance Sheet, and the other Liabilities of Seller
described on Schedule 2.3(i) which shall be updated through May 30, 2002.

     2.4  Retained Liabilities. Except Assumed Liabilities, Buyer shall not
assume, and Seller shall remain solely responsible for and shall retain, pay,
perform and discharge, in full, any and all other Liabilities of Seller, whether
known, unknown, contingent, executory, fixed or otherwise (the "Retained
Liabilities").

     2.5  Purchase Price. The purchase price, exclusive of the Assumed
Liabilities, shall be Five Million Seven Hundred Thousand Dollars ($5,700,000),
plus the value of Working Capital, as

                                      -4-

<PAGE>

provided in Section 2.6 ("Purchase Price"). The Purchase Price shall be paid by
Buyer at the Closing by (a) delivery of immediately available funds in the
amount of Five Million Four Hundred Thousand Dollars ($5,400,000) to an account
designated by Seller; and (b) execution and delivery of Buyer's subordinated
unsecured promissory note payable to Seller in the principal amount of Three
Hundred Thousand Dollars ($300,000) in the form of Exhibit C (the "Note") and
guaranteed by Guarantor as provided in and in accordance with the terms of the
Note.

     2.6  Purchase Price Adjustment. The parties hereto negotiated the Purchase
Price based upon (i) the book value of the Acquisition Assets, the value of
which is estimated to be $3,702,439 on December 31, 2001 (which value includes
any value assigned to the laptop computers and automobiles used by and to be
transferred to the Shareholders); (ii) the amount of the Assumed Liabilities,
which was $964,770 on December 31, 2001 (which includes $37,904 of the current
portion of the capital forklift leases which is part of the current portion of
Long Term Debt); and (iii) Working Capital in the amount of $1,491,368 on
December 31, 2001. Set forth on Schedule 2.6 is the Acquisition Balance Sheet
(as defined in Section 4.2). The amount of Working Capital of the Business will
be determined as of the Effective Date, and the Purchase Price shall be
increased by the amount of Working Capital as of the Effective Date (the
"Purchase Price Adjustment"). An estimated Purchase Price Adjustment (the
"Estimated Purchase Price Adjustment") shall be calculated based on the
estimated Working Capital as of the Effective Date and the Purchase Price
payable on the Closing Date shall be increased accordingly. Upon final
determination of the Purchase Price Adjustment as provided in Section 2.7,
Seller or Buyer shall wire transfer or deliver to an account designated by the
other party immediately available funds equal to the Purchase Price Adjustment
plus interest thereon from the Closing Date through date of payment calculated
at the rate of Five Percent (5%) per annum. If such amount is not paid within
five days of such final determination the unpaid balance shall accrue interest
at the rate of twelve percent (12%) per annum until paid in full.

     2.7  Determination of Working Capital and Purchase Price Adjustment Amount.
Within 60 days of the Effective Date, Buyer shall (a) prepare a Closing Balance
Sheet and determine the Working Capital of the Business as of the Effective Date
and the amount of the Purchase Price Adjustment, if any, provided for in Section
2.6, in accordance with and consistent with the accounting standards applied in
determining Working Capital as of December 31, 2001 on the Acquisition Balance
Sheet (the "Accounting Standards"), and (b) shall give written notice of its
determination to Seller, including in such notice the computations made in
accordance with Accounting Standards on which its determination is based (the
"Purchase Price Adjustment Notice"). If Seller does not give written notice to
Buyer disputing Buyer's determinations within 15 days of the Purchase Price
Adjustment Notice, the determination in the Purchase Price Adjustment Notice
shall be final and the Purchase Price shall be adjusted in accordance with such
determination as provided in Section 2.6. If Seller disputes Buyer's
determination in the Purchase Price Adjustment Notice by written notice thereof
to Buyer within 15 days of the Purchase Price Adjustment Notice, Buyer and
Seller shall thereafter attempt to resolve such dispute within 15 days of
Seller's notice. If the parties cannot resolve the dispute within that 15 day
period, Deloitte & Touche LLP ("Deloitte &

                                      -5-

<PAGE>

Touche") shall be mutually appointed by Buyer and Seller as the accounting firm
and the decision of Deloitte & Touche shall be final and binding on the parties
hereto. Buyer and Seller shall each pay half of the costs and expenses of
Deloitte & Touche. The Accounting Standards shall be applied by all parties and
Deloitte & Touche in determining Working Capital and the Purchase Price
Adjustment hereunder. Neither the determination of Working Capital nor the
Purchase Price Adjustment pursuant to Sections 2.6 and 2.7 shall limit, reduce
or otherwise affect or alter the representations and warranties of the parties
contained herein. To the Knowledge of Seller and the Shareholders, without any
independent investigation, Schedule 2.7 lists the differences between the
Accounting Standards and Generally Accepted Accounting Principles.

     2.8  Inventory. For purposes of determining the Working Capital as
provided in Section 2.7 and the Purchase Price Adjustment pursuant to Section
2.6, Seller and Buyer shall conduct and complete a physical count and valuation
of the Business's Inventories on the Closing Date or such other mutually agreed
upon date. The Inventories reflected thereby shall be valued in accordance with
the Accounting Standards applied on a consistent basis, using FIFO/average cost
determining the value of Inventories.

     2.9  Uncollected Receivables; Returned Inventories. To the extent that any
Receivables acquired by Buyer shall not have been paid on the date that the
Purchase Price Adjustment is finally determined, or, if no Purchase Price
Adjustment is determined, by the 75/th/ day following the Closing Date, Buyer
shall assign those Receivables to Seller, which shall then be entitled to
collect them, and Seller, on the date of such assignment, shall deliver to an
account designated by Buyer, immediately available funds equal to the aggregate
face amount of the Receivables so assigned by Buyer to Seller and such funds
shall be counted and included in determining the Purchase Price Adjustment if
the Purchase Price Adjustment has not then been determined or if the aggregate
face amount of the Receivables so assigned was not included in the Purchase
Price Adjustment. Buyer shall render to Seller such assistance as Seller may
reasonably request with respect to the collection of any such Receivables
assigned to Seller, at no cost or expense to Buyer. If any customer of Seller
returns to Buyer any products sold such customer by Seller, Buyer shall (a)
cancel the Receivable for such products, (b) refund to such customer the
purchase price of the products or (c) give the customer credit for the purchase
price of such products against future purchases from Buyer. In any of such
cases, Seller shall pay Buyer the difference between the invoice price of such
item and its inventory value at the time of return by delivery of immediately
available funds to an account designated by Buyer, or if Buyer elects, by
certified check payable to Buyer. With respect to any such returned products,
Buyer shall make reasonable efforts to pursue any available remedy against the
manufacturer thereof if such products were not manufactured by Seller and to
credit Seller with any recovery received. Payments on Receivables by customers
following the Closing shall be credited against invoices on a "first out, first
in" basis (i.e., payments received to be credited to the invoice outstanding for
the longest period), except to the extent of directions by customers to apply
the payment on a different basis.

                                      -6-

<PAGE>

     2.10 Allocation of Purchase Price. The Purchase Price shall be allocated
among the Acquisition Assets as specified in Exhibit D. After the Closing, the
parties agree to make consistent use of the allocation, fair market values and
useful lives specified in Exhibit D for all Tax purposes and in any and all
filings, declarations and reports with the IRS in respect thereof, including
without limitation, the reports required to be filed under Section 1060 of the
IRC, if applicable, it being understood that Buyer shall prepare and deliver IRS
Form 8594 to Seller within 45 days after the Closing Date if such form is
required to be filed with the IRS. In any Proceeding related to the
determination of any Tax, no party hereto shall contend or represent that such
allocation is not correct.

3.   Closing. Consummation of the purchase and sale of the Acquisition Assets as
contemplated in this Agreement (the "Closing") shall take place at the offices
of Buyer's counsel, Greenebaum Doll & McDonald PLLC, 2800 Chemed Center, 255
East Fifth Street, Cincinnati, Ohio 45202 at 10:00 a.m. (local time), or at such
other place and time as the parties may mutually agree upon, on the "Closing
Date," which shall be the later of (a) May 31, 2002; or (b) such date as the
parties may mutually agree upon. The Closing shall be effective as of the close
of business on the Closing Date (the "Effective Date").

4.   Representations and Warranties of Seller and the Shareholders. Seller and
each Shareholder, jointly and severally, hereby represent and warrant to Buyer
as follows:

     4.1  Organizational Status. Seller is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Ohio.
Seller has, and at all times has had, full corporate or other applicable power
and authority to own and lease its properties as such properties are now owned
and leased and to conduct its business as and where such business has and is now
being conducted. Set forth on Schedule 4.1 are true and complete copies of the
Organizational Documents of Seller, as amended to the Closing Date. Seller has
not qualified to do business in any jurisdiction other than the State of Ohio.
Neither the nature of the business of Seller, nor the character and location of
the properties owned or leased by Seller, make its qualification to do business
in any other jurisdiction necessary. The Shareholders own all of the issued and
outstanding capital stock of Seller as set forth on Schedule 4.1.

     4.2  Financial Statements. Seller has delivered to Buyer the following
financial statements of Seller and the Business (the "Seller Financial
Statements"): (a) unaudited balance sheets of Seller and the Business for each
of the fiscal years ending December 31, 1999 and 2000 and the related unaudited
statements of income, changes in shareholder's equity and cash flow for each of
the periods then ended, including in each case the notes thereto; and (b) an
unaudited balance sheet of Seller and the Business as at December 31, 2001 (the
"Acquisition Balance Sheet") and the related unaudited statements of income,
changes in shareholders' equity and cash flow for the period then ended,
including in each case the notes thereto. The Seller Financial Statements fairly
present in all material respects the financial position and the results of
operations, changes in shareholders' equity and cash flow of Seller and the
Business, at the respective dates of, and for the periods referred to in,

                                      -7-

<PAGE>

Seller Financial Statements, all in accordance with the Accounting Standards,
subject, in the case of interim financial statements, to normal recurring
year-end adjustments (the effect of which will not, individually or in the
aggregate, have an Adverse Effect) and the absence of notes (that, if presented,
would not differ materially from those included in the Acquisition Balance
Sheet), consistently applied throughout the periods covered by the Seller
Financial Statements involved, except as disclosed in the notes thereto. No
financial statements of any Person other than Seller are required by GAAP to be
included in the Seller Financial Statements. The Seller Financial Statements
have been prepared from and are in accordance with the books and records of
Seller and the Business.

     4.3  Absence of Undisclosed Liabilities. As of the date of the Acquisition
Balance Sheet, to the best of Seller's Knowledge, Seller had no Liabilities
except as shown (and in the amounts shown) on the Acquisition Balance Sheet or
as shown on Schedule 4.3. Since the date of the Acquisition Balance Sheet,
except as shown on Schedule 4.3, to the best of Seller's Knowledge, Seller has
not incurred or become subject to any material Liability, other than Liabilities
incurred in the Ordinary Course of Business, all of which have been paid in full
in the Ordinary Course of Business or are reflected on Seller's regular books of
account on the Closing Date and none of which is inconsistent with (a) the
representations, warranties and covenants of Seller and the Shareholders
contained herein or (b) any other provisions of this Agreement.

     4.4  Absence of Certain Events. Since the date of the Acquisition Balance
Sheet, Seller and the Shareholders have not, with respect to Seller and the
Business, except as set forth on Schedule 4.4:

         (a) Adverse Effect. To the best of the Shareholders' and Seller's
Knowledge, suffered an Adverse Effect.

         (b) Agreement Termination or Amendment. Terminated or amended or
suffered the termination or amendment of any material contract, lease,
agreement, license or other instrument to which it is or was a party, other than
any of such actions which occur in the Ordinary Course of Business or which do
not have an Adverse Effect.

         (c) Bonuses and Compensation. Paid or obligated itself to pay any
bonuses or extraordinary compensation to, or made any increase (except increases
in the Ordinary Course of Business) in the compensation payable (or to become
payable by it) to, any of its directors, officers, employees, agents,
shareholders or other representatives of Seller.

         (d) Capital Expenditures. Made any capital expenditures or capital
commitments in excess of $5,000 for any single one or series of related
transactions or in excess of $25,000 in the aggregate.

         (e) Casualty Losses. Suffered any casualty, damage, destruction or loss
to any of its properties not covered by insurance in excess of $5,000 for any
one event or in excess of $25,000 in the aggregate.

                                      -8-

<PAGE>

         (f) Change in Accounting Principles. Made any change in accounting
principles, methods or practices.

         (g) Change in Business. Other than this Agreement with Buyer, made any
change in the Business or the manner of conducting the Business, other than
changes in the Ordinary Course of Business, none of which has, and which in the
aggregate have not had, an Adverse Effect.

         (h) Disposal of Assets. Disposed of any of its assets or properties
other than in the Ordinary Course of Business.

         (i) Employee Discipline. Terminated, placed on probation, disciplined,
warned or experienced any material dissatisfaction with, any officer,
supervisory employee or outside salesperson of Seller.

         (j) Encumbrances. Subjected any of its assets or properties to any
Encumbrances or to any other similar charge of any nature whatsoever.

         (k) Loans. Made any loan or advance in excess of One Thousand Dollars
($1,000.00) to any Person (except a normal travel or other reasonable expense
advance to its officers and employees).

         (l) Material Transactions. Entered into any material transactions other
than in the Ordinary Course of Business.

         (m) New Agreements. Entered into any agreement, contract, lease or
license (or series of related agreements, contracts, leases or licenses) other
than purchase orders entered into in the Ordinary Course of Business, which
either involve more than $10,000 or were made outside the Ordinary Course of
Business.

         (n) Payment of Accounts Payable Outside Ordinary Course of Business.
Delayed or postponed the payment of any material accounts payable and other
Liabilities outside the Ordinary Course of Business.

         (o) Payments to Officers, Directors or their Affiliates. Paid any funds
to any of its officers or directors, or to any family member of any of them, or
any Person in which any of the foregoing have any direct or indirect interest,
except for the payment of installments of annual salaries and the bonuses
accrued at the last day of Seller's fiscal year.

         (p) Plan Adoption, Modification or Amendment. Adopted, modified or
amended any plan or agreement listed on Schedule 4.14(a) so as to increase the
benefits due the employees of Seller under any such plan or agreement.

                                      -9-

<PAGE>

         (q) Resignations of or Disputes with Employees or Agents. Experienced
any resignations of, or had any disputes involving the employment or agency
relationship with, any employee or agent of Seller which to the Knowledge of
Seller could reasonably be expected to have an Adverse Effect and, concerning
any branch manager or outside salesperson, whether or not the same, to the
Knowledge of Seller, could reasonably be expected to have an Adverse Effect.

         (r) Waivers and Write-Offs. Waived or released any debts, claims or
rights of value or suffered any extraordinary loss or written down the value of
any inventories or other assets or written down or off any receivable in excess
of $5,000 for any one event or in excess of $25,000 in the aggregate.

         (s) Other Events. Been a party to any other occurrence, event,
incident, action, failure to act or transaction outside the Ordinary Course of
Business involving Seller other than entering into the letter of intent with
Buyer.

         (t) Other Agreements. Entered into any agreement or commitment (whether
or not in writing) to do any of the above.

and Seller and the Shareholders have:

         (u) used their Best Efforts to (1) preserve the Business and the
organization of Seller; (2) keep available, without entering into any binding
agreement, the services of Seller's employees; and (3) preserved the goodwill of
Seller's customers and others having business relationships with Seller; and

         (v) continued the Business and maintained its operations and equipment,
books of account, records and files in the Ordinary Course of Business.

     4.5 Accounts Receivable. All Receivables on the Closing Date represent (a)
valid and bona fide obligations arising from sales actually made or services
actually rendered by Seller in the Ordinary Course of Business; (b) are correct
as to amount and legally enforceable according to their terms; and (c) to the
Knowledge of Seller have no rights of defense, counterclaim or set-off against
them, including any relating to the amount or validity of such Receivable.
Schedule 4.5 contains a complete and accurate list of all such Receivables as of
11:59 p.m. on May 30, 2002, and sets forth an accurate aging of all such
Receivables.

     4.6 Assets Necessary To Business. Seller owns or leases the Acquisition
Assets, including all properties and assets, tangible and intangible, which are
necessary for Buyer to conduct the Business as heretofore conducted by Seller
and necessary or appropriate for the continued conduct of the Business after the
Closing Date in substantially the same manner as conducted prior to the Closing
Date. Seller has all required and proper permits and licenses, including
franchises, titles (including

                                      -10-

<PAGE>

motor vehicle titles and current registrations), fuel permits and any other
similar documents constituting a material entitlement or otherwise material to
the operation of the Business (collectively, the "Permits") and Seller is a
party to all other material contracts and agreements necessary to permit it to
carry on the Business as presently conducted.

     4.7  Authority; Consents; Enforcement: Noncontravention; Noncompetes.

          (a)  Authority. Seller has the corporate power and authority to
execute, deliver and perform this Agreement and all other agreements,
certificates or documents contemplated hereby ("Seller Ancillary Documents") and
has taken all actions required to authorize, execute, deliver and perform this
Agreement and the Seller Ancillary Documents, including approval by its board of
directors and the Shareholders. The Shareholders have full power, authority and
capacity to execute, deliver and perform this Agreement and the Seller Ancillary
Documents.

          (b)  Consents. Except as set forth on Schedule 4.7(b), no consent,
approval, action or authorization of any third party, including any Governmental
Authorization or application to, or other notice or filing with, any
Governmental Body, is required for the execution, delivery or performance of
this Agreement or the Seller Ancillary Documents by Seller or any Shareholder
("Seller's Consents").

          (c)  Enforcement. This Agreement and the Seller Ancillary Documents
have been duly executed and delivered by Seller and the Shareholders and
constitute the legal, valid and binding obligations of Seller and the
Shareholders, enforceable in accordance with their terms.

          (d)  Noncontravention. The execution and delivery of this Agreement
and the Seller Ancillary Documents by Seller and the Shareholders does not
violate any provision of the Organizational Documents of Seller and will not
result in a breach or violation or default under any Order which Seller or any
Shareholder is subject or result in a breach by Seller or any Shareholder under
any material contract or obligation to which it or they are bound except for,
and limited to the extent that, those contracts listed on Schedule 4.7(b)
require consent of a third party as disclosed on Schedule 4.7(b). Except for on
those contracts requiring consent of a third party as disclosed in Schedule
4.7(b), neither the execution and the delivery of this Agreement and the Seller
Ancillary Documents, nor compliance with, or fulfillment of, the terms,
conditions and provisions hereof or thereof, will (1) to the best of Seller's
and Shareholders' Knowledge, violate any Legal Requirement of Seller or any
Shareholder; (2) materially conflict with, result in a material breach of,
constitute a material default under, any Contract or Order to which Seller or
any Shareholder is a party; (3) create in any party the right to accelerate,
terminate, modify or cancel, any Contract to which Seller or any Shareholder is
a party; (4) accelerate any Liability of Seller, any Shareholder or the
Business; (5) result in the imposition of or creation of any Encumbrance upon or
with respect to any of the Acquisition Assets; (6) require any notice under any
Contract or Order to which Seller or any Shareholder is a party or by which it
or they are bound or to which any of its or their assets or

                                      -11-

<PAGE>

properties are subject; or (7) require the approval, consent, authorization or
act of, or the making by, Seller or any Shareholder of any declaration, filing
or registration with, any Person.

          (e) Restriction on Competition. Neither Seller nor any Shareholder is
a party to or subject to any contract, arrangement or commitment containing
covenants by Seller or any Shareholder prohibiting or restricting competition in
any line of business or activity or restricting the customers from whom, or the
area in which, Seller or any Shareholder may solicit or conduct business.

  4.8 Books and Records. Prior to the execution of this Agreement, Seller made
available to Buyer for its examination the books of account, records and minute
and stock books of Seller ("Books and Records"). The Books and Records are true
and complete in all material respects and have been prepared in the usual and
customary manner. No material changes or additions to the Books and Records of
Seller have been made from the date such Books and Records were first made
available to Buyer and nothing which should be set forth in said Books and
Records, if prepared in the usual and customary manner of Seller, has occurred
from the date such Books and Records were first made available to Buyer, except
for such changes, additions or events which have been made or have occurred, as
the case may be, in the Ordinary Course of Business.

     4.9  Compliance With Legal Requirements; Governmental Authorizations.

          (a)  Compliance With Legal Requirements. To the Knowledge of Seller,
and except as set forth on Schedule 4.9(a):

               (1) Seller is, and, at all times since its inception has been, in
     full compliance with each Legal Requirement that is or was applicable to it
     or to the conduct or operation of the Business or the ownership or use of
     any of the Acquisition Assets;

               (2) within the last two years, no event has occurred, nor does
     any circumstance exist, that (with or without notice or lapse of time) (A)
     may constitute or result in a violation by Seller of, or a failure on the
     part of Seller to comply with, any Legal Requirement; or (B) may give rise
     to any obligation on the part of Seller to undertake or to bear all or any
     portion of the cost of, any remedial action of any nature; and

               (3) Seller has not received, at any time within the last two
     years, any notice or other communication (whether oral or written) from any
     Governmental Body regarding (A) any actual, alleged, possible or potential
     violation of, or failure to comply with, any Legal Requirement; or (B) any
     actual, alleged, possible or potential obligation on the part of Seller to
     undertake, or to bear all or any portion of the cost of, any remedial
     action of any nature.

              (b) Governmental Authorizations. Schedule 4.9(b) contains a
complete and accurate list of each Governmental Authorization that is held by
Seller or that otherwise relates to the Business,

                                      -12-

<PAGE>

or to any of the assets owned or used by Seller, and is material to the
operation of the Business. Each Governmental Authorization listed or required to
be listed on Schedule 4.9(b) is valid and in full force and effect except where
the failure to do so would not have an Adverse Effect. Schedule 4.9(b) also sets
forth the name of any third party from whom consent must be obtained in order to
effect a transfer to Buyer of the Permits to be acquired as a result of the
transactions contemplated herein; and, except as set forth on Schedule 4.9(b),
Seller has obtained all such consents except where the failure to be so valid
and in force and effect would not have an Adverse Effect. To the Knowledge of
Seller, and except as set forth on Schedule 4.9(b):

               (1) Seller is in compliance with all of the terms and
     requirements of each Governmental Authorization identified or required to
     be identified on Schedule 4.9(b);

               (2) no event has occurred, nor does any circumstance exist, that
     may (with or without notice or lapse of time) (A) constitute or result
     directly or indirectly in a violation of or a failure to comply with any
     term or requirement of any Governmental Authorization listed or required to
     be listed on Schedule 4.9(b); or (B) result directly or indirectly in the
     revocation, withdrawal, suspension, cancellation or termination of, or any
     modification to, any Governmental Authorization listed or required to be
     listed on Schedule 4.9(b);

               (3) Seller has not received, within the last two years, any
     notice or other communication (whether oral or written) from any
     Governmental Body or any other Person regarding (A) any actual, alleged,
     possible or potential violation of or failure to comply with any term or
     requirement of any Governmental Authorization; or (B) any actual, proposed,
     possible or potential revocation, withdrawal, suspension, cancellation,
     termination of, or modification to any Governmental Authorization; and

               (4) all applications required to have been filed for the renewal
     of the Governmental Authorizations listed or required to be listed on
     Schedule 4.9(b) have been duly filed on a timely basis with the appropriate
     Governmental Bodies and all other filings required to have been made with
     respect to such Governmental Authorizations have been duly made on a timely
     basis with the appropriate Governmental Bodies.

The Governmental Authorizations listed on Schedule 4.9(b) collectively
constitute all of the Governmental Authorizations necessary to permit Seller to
lawfully conduct and operate the Business in the manner it is currently
conducted and operated and to permit Seller to own and use its assets in the
manner in which it currently owns and uses such assets, to the Knowledge of
Seller.

     4.10 Computer Systems; Software.

          (a)  Condition of Computers. Except as set forth on Schedule 4.10(a),
to the best of Seller's Knowledge, all computers and computer systems owned,
leased or used by Seller in

                                      -13-

<PAGE>

connection with the Business (including software, communication links and
storage media) (collectively, "Computers"):

               (1) are currently operating;

               (2) are in full operating order and fulfill the purposes for
     which they were acquired, established and are currently used;

               (3) have adequate capacity for the present needs of the Business.

          (b)  Condition of Software. Except as set forth on Schedule 4.10(b),
to the best of Seller's Knowledge, all software used on or stored or resident in
the Computers ("Software") is currently operating and is lawfully held and used
and, to the Knowledge of Seller, does not infringe the intellectual property
rights of any Person and all copies held have been lawfully made.

          (c)  Ownership of Software. No Software owned by or licensed to Seller
is used by or licensed or sublicensed by Seller to any other Person.

          (d)  Operation of Computers. All Data and Records stored by electronic
means are capable of ready access through the Computers. To Seller's Knowledge,
except as disclosed on Schedule 4.10(d), the transactions contemplated in this
Agreement will not cause any of Seller's license agreements as referred to in
this Section 4.10 to be terminated or the terms varied or any rates or royalties
payable to be materially increased.

   4.11  Condition and Sufficiency of Assets. Except as disclosed on Schedule
4.11, to the best of Seller's Knowledge, the tangible Acquisition Assets are
structurally sound, are free from material defects (patent and latent) and have
been maintained in accordance with the manufacturer's recommendations. To the
best of Seller's Knowledge, the tangible Acquisition Assets are (i) currently in
good operating condition and repair (subject to normal wear and tear); (ii)
suitable for the purposes for which they are presently used and presently
proposed to be used; and (iii) not in need of maintenance or repairs except for
ordinary, routine maintenance and repairs that are not material in nature or
cost.

   4.12  Contracts. Schedule 4.12 contains a list of each contract to
which Seller is a party, except for (a) sales or purchase orders entered into in
the Ordinary Course of Business; (b) contracts involving Seller's receipt or
payment of less than $25,000 in any 12-month period; and (c) contracts
cancelable without penalty or payment upon no more than 30 days notice. Seller
has furnished Buyer with a true and complete copy of each written contract
listed on Schedule 4.12. Each such Contract set forth on Schedule 2.1(g) is
legal, valid, binding, enforceable and in full force and effect and shall, as to
Buyer, continue to be legal, valid, binding, enforceable and in full force and
effect on identical terms following the Closing. No party to any such Contract
set forth on Schedule 2.1(g) is in breach or default and no event has occurred
which with notice or lapse of time would constitute a breach or

                                      -14-

<PAGE>

default, or permit termination, modification or acceleration, under the Contract
and no party has repudiated any provision of any Contract set forth on Schedule
2.1(g). All of the material Contracts which are set forth on Schedule 2.1(g) are
assignable by Seller to Buyer and such assignment may be made without the
consent of any other party to the Contract and will not result in a breach,
violation or default under any such Contract, except as set forth on Schedule
2.1(g).

   4.13  Customers of Seller; Conditions Affecting Seller. Schedule 4.13 sets
forth the 5 largest customers of Seller by dollar value of aggregate purchases
from Seller over the 24 months ended December 31, 2001. Except as set forth on
Schedule 4.13, none of the customers identified on Schedule 4.13 have terminated
their relationship with Seller or otherwise ceased doing business with Seller or
otherwise indicated to Seller that the amount of revenue accounted for by such
customer is likely to be materially less after the Closing Date than the amount
reflected for such customer on Schedule 4.13. Seller has disclosed to Buyer the
terms and conditions of any sale requested by Buyer and identified all customers
with annual purchases in excess of $20,000. Terms and conditions of sale with
customers are negotiable and vary from order to order.

   4.14  Employee Benefits.

         (a) Benefit Plans. Except as set forth on Schedule 4.14(a), Seller is
not a Plan Sponsor (as defined in section 3(16)(B) of ERISA) or an ERISA
Affiliate (which means, with respect to Seller, any other Person that, together
with Seller, would be treated as a single employer under section 414 of the
IRC), nor has Seller or an ERISA Affiliate contributed, and neither Seller nor
an ERISA Affiliate does now contribute, to any "employee pension benefit plans"
("Pension Plans") or "employee welfare benefit plans" ("Welfare Plans") (as
defined in section 3(2) and (1), respectively, of ERISA) or to any "multi
employer plan" ("Multiemployer Plans") (as defined in either section 3(37) of
ERISA or section 414(f) of the IRC). Except as set forth on Schedule 4.14(a),
neither Seller nor an ERISA Affiliate has any obligation, arrangement, practice,
plan or agreement to provide present or future benefits, other than salary and
bonuses awarded in the Ordinary Course of Business, as compensation for services
rendered, to any of its present or former employees, officers, directors, agents
or representatives, nor any voluntary employees' beneficiary association under
section 501(c)(9) of the IRC ("VEBA") whose members include employees of Seller
or an ERISA Affiliate, nor any obligation, arrangement, practice, plan or
agreement providing stock options, stock purchase, deferred compensation,
severance, "fringe benefits" (as described in section 132 of the IRC) or any
other employee benefits of any nature whatsoever ("Compensation Plans"). Welfare
Plans, Pension Plans and Compensation Plans are collectively referred to as
"Benefit Plans."

         (b) Compliance of Benefit Plans With ERISA and IRC. Seller has
performed all of its obligations under all Benefit Plans and has made
appropriate entries in its financial records and statements for all Liabilities
under all Benefit Plans that have accrued but are not due. All of the Benefit
Plans and any related trust agreements or annuity contracts (or any funding
instrument) comply currently, and have complied in the past, with the applicable
and material provisions of ERISA and the IRC, where required in order to be a
qualified plan under section 401(a) of the IRC

                                      -15-

<PAGE>

and tax exempt under section 501 of the IRC, and all other Legal Requirements.
To the Knowledge of Seller, no event has occurred or circumstance exists that
will or could give rise to disqualification or loss of tax exempt status of any
such Plan or trust. Neither Seller, nor any Person who is a fiduciary or
otherwise has a relationship to a Benefit Plan, has any liability to the IRS or
the Pension Benefit Guaranty Corporation with respect to a Benefit Plan or any
Liability under sections 502 or 4071 of ERISA. All filings required by ERISA and
the IRC as to each Benefit Plan have been timely filed and all notices and
disclosures to participants required by either ERISA or the IRC have been timely
provided. Other than routine claims for benefits submitted by participants or
beneficiaries in the ordinary course, no claim against, or Proceeding involving,
any Benefit Plan is pending or Threatened.

          (c) Post-Retirement Benefits. Except to the extent required under
section 4980B of the IRC or Part 6 of Subtitle B of Title I of ERISA, Seller
does not provide Welfare Benefits for any retired or former employee nor is it
obligated to provide any Welfare Benefits to any active employee following such
employee's retirement or other termination of service.

          (d) Administration and Cost of Plans. Each of the Welfare Plans and
Pension Plans has been administered in substantial compliance with the
requirements of the IRC and ERISA and all material reports required by any
governmental agency with respect to each such Plan have been timely filed.
Neither Seller nor an ERISA Affiliate has filed a notice of intent to terminate
any Plan or has adopted any amendment to treat a Plan as terminated.

          (e) No Prohibited Transactions. Neither Seller nor any of its
directors, managers, officers or employees who are fiduciaries, nor any other
fiduciary of any of the Pension Plans or Welfare Plans, has engaged in any
transaction in violation of section 406 of ERISA (for which no exemption exists
under section 408 of ERISA) or any "prohibited transaction" (as defined in
section 4975(c)(1) of the IRC) for which no exemption exists under sections
4975(c)(2) or 4975(d) of the IRC.

          (f) Compliance of Health Plans. Each "group health plan" (as defined
in section 4980B(g)(2) of the IRC) maintained by Seller has been administered in
compliance with the continuation coverage and notice requirements of section 601
et seq. of ERISA, section 4980B of the IRC (and the regulations thereunder) and
all other Legal Requirements.

          (g) Copies of Documents. Seller has furnished to Buyer a true and
complete copy of all documents that set forth the terms of each Benefit Plan
described on Schedule 4.14(a) and the summary plan description which Seller or
an ERISA Affiliate is obligated to prepare for such plans and all summaries and
descriptions furnished to participants and beneficiaries regarding Benefit Plans
for which a summary plan description is not required. In addition, Seller has
furnished to Buyer:

              (1) a written description of any Benefit Plan that is not
     otherwise in writing;

                                      -16-

<PAGE>

               (2) all Seller's personnel, payroll and employment manuals and
     policies currently in effect;

               (3) all insurance policies currently in effect purchased by or to
     provide benefits under any Benefit Plan;

               (4) all contracts with third party administrators, actuaries,
     investment managers, consultants and other independent contractors that
     relate to any Benefit Plan;

               (5) a true and correct copy of any favorable determination letter
     as to the qualification under the IRC of each of the Pension Plans and each
     amendment thereto that has been issued by the IRS; and

               (6) the annual return (Form 5500 or Form 990 series) filed in
     each of the most recent three plan years with respect to each Benefit Plan,
     including all schedules thereto and the opinions of independent
     accountants, if any.

       4.15 Employees and Compensation.

            (a) Listing of Employees. Schedule 4.15 identifies all officers and
employees of Seller as of the Closing Date, the amount of their current annual
salaries or hourly rates, their bonuses paid in the past year, their current job
titles, vacation accrued and a complete description of any commitments to such
employees and officers with respect to compensation payable hereafter. Seller
has not, because of past practices or previous commitments with respect to its
officers or employees, established any legally enforceable rights or reasonable
expectations on the part of such officers or employees to receive additional
compensation inconsistent with past practices with respect to any period after
the Closing Date. None of Seller's employees has given written notice to Seller
that such employee intends to leave Seller's employment. Except as set forth on
Schedule 4.15, Seller has no Knowledge of any employee presently intending to
leave employment with the Seller or to not accept employment with Buyer, should
Buyer choose to employ such employee upon purchasing the Acquisition Assets
hereunder. Set forth on Schedule 4.15 is a description of all claims made
against Seller by its officers, employees or former employees within the last 36
months, as well as all unresolved claims made against Seller by its officers,
employees or former employees. No officer or employee of Seller is employed by
Seller outside the United States of America.

            (b) Agreements With Employees. Except as described on Schedule 4.15,
Seller is not a party to or bound by any written or oral:

               (1) employment agreement (other than employment agreements under
     which the only monetary obligation of Seller is to make current wage or
     salary payments and provide current employee benefits and other employee
     benefits required by any Legal Requirement), consulting, advisory or
     service agreement, confidentiality agreement or covenant not to compete;

                                      -17-

<PAGE>

               (2) contract or agreement with any officer, employee or
     Shareholder (other than employment agreements disclosed in response to
     clause (1) or excluded from the scope of clause (1)), agent or
     attorney-in-fact of Seller; or

               (3) obligation to provide, presently or in the future, retiree
     medical insurance coverage, retiree life insurance coverage or other
     benefits for retired employees or directors of Seller, or their dependents,
     except as required by any Legal Requirement, and, to the extent of any such
     obligation, the name, pension benefit, pension option election, medical
     insurance coverage and life insurance coverage for such retirees is
     described on Schedule 4.15.

          (c)  Confidentiality and Noncompetition Agreements. Except as
described on Schedule 4.15, to the Knowledge of Seller, no officer or employee
of Seller is a party to, or is otherwise bound by, any written agreement or
arrangement with any Person, including any confidentiality, noncompetition or
proprietary rights agreement, that has, had or will have an Adverse Effect on:
(1) the performance of his or her duties as an officer or employee of Seller or
(2) the ability of Seller to conduct its Business.

          (d)  Additional Employee Matters. Set forth on Schedule 4.15 is a list
of each employee of Seller and each qualified beneficiary of an employee of
Seller who has incurred a qualifying event and has elected, or is eligible to
elect, continuation coverage under Seller's group health plan pursuant to
section 4980B of the IRC and section 601 et seq. of ERISA. Further set forth on
Schedule 4.15 is a list of each employee of Seller and each qualified
beneficiary of an employee of Seller who, as a result of the transactions
contemplated herein, will incur a qualifying event and will be eligible to elect
continuation coverage pursuant to section 4980B of the IRC and section 601 et
seq. of ERISA. Also set forth on Schedule 4.15 is a list of each employee of
Seller who has requested or is on a leave of absence pursuant to the provisions
of the Family and Medical Leave Act.

     4.16 Environmental Matters.

          (a) Compliance with Environmental Laws. Except as set forth on
Schedule 4.16(a), to the best of Seller's Knowledge, Seller is, and at all times
has been, in full compliance with, and has not been and is not in violation of
or liable under, any Environmental Law. Neither Seller nor any Shareholder, nor
any other Person for whose conduct they are held to be responsible, has received
any actual or, to the Knowledge of Seller, Threatened Order, notice or other
communication from any Governmental Body or private citizen acting in the public
interest or from the current or prior owner or operator of the Facilities, of
any actual or potential violation or failure to comply with any Environmental
Law, or of any actual or, to the Knowledge of Seller, Threatened obligation to
undertake or bear the cost of any Environmental, Health and Safety Liabilities
with respect to any of the Facilities.

                                      -18-

<PAGE>

               (b) No Environmental Claims. Except as set forth on Schedule
4.16(b) there are no pending or, to the Knowledge of Seller, Threatened claims,
Liens, Encumbrances or other restrictions of any nature, resulting from any
Environmental, Health and Safety Liabilities or arising under or pursuant to any
Environmental Law, with respect to or affecting any of the Facilities or the
Acquisition Assets.

               (c) No Environmental Orders. Except as set forth on Schedule
4.16(c), to the best Knowledge of Seller and Shareholders, neither Seller nor
any Shareholder has any basis to expect, nor have any of them, received any
written citation, directive, inquiry, notice, Order, summons, warning or other
communication that relates to Hazardous Activity, Hazardous Materials or any
alleged, actual or potential violation or failure to comply with any
Environmental Law, or of any alleged, actual or potential obligation to
undertake or bear the cost of any Environmental, Health and Safety Liabilities
with respect to any of the Facilities or any Acquisition Assets.

               (d) No Hazardous Materials. Except as set forth on Schedule
4.16(d), to the best of Seller's and Shareholders' Knowledge, there are no
Hazardous Materials present on or in the Environment at the Facilities,
including any Hazardous Materials contained in barrels, above or underground
storage tanks, landfills, land deposits, dumps, equipment (whether moveable or
fixed) or other containers, either temporary or permanent, and deposited or
located on or in land, water, sumps or any other part of the Facilities or such
adjoining property or incorporated into any structure therein or thereon.
Neither Seller, nor any Shareholder, is aware of, any Hazardous Activity
conducted at the Facilities except as disclosed on Schedule 4.16(d).

               (e) No Release. Except as set forth on Schedule 4.16(e), to the
best of Seller's or any Shareholder's Knowledge there has been no Release of any
Hazardous Materials at or from the Facilities, whether by Seller or any
Shareholder or any other Person.

               (f) Delivery of Reports, Etc. Seller has delivered to Buyer true
and complete copies and results of all reports, studies, analyses, tests or
monitoring possessed or initiated by Seller or any Shareholder pertaining to
Hazardous Materials or Hazardous Activities in, or under, the Facilities or
concerning compliance by Seller with Environmental Laws.

          4.17 Insurance. Seller has delivered to Buyer copies of each insurance
policy (including policies providing property, casualty, liability and workers'
compensation coverage and bond and surety arrangements) to which Seller is a
party, a named insured or otherwise the beneficiary of coverage.

          4.18 Intellectual Property.

               (a) Definition of Intellectual Property. The term "Intellectual
Property" as used in this Agreement means all of the intangible and intellectual
property of Seller, including, but not limited to the following:

                                      -19-

<PAGE>

               (1) all post office box numbers, Internet domain names
     (registered and unregistered), telephone and facsimile numbers, e-mail
     addresses and all other listings used in the Business, each of which is set
     forth on Schedule 4.18(a)(1);

               (2) the name "Quick Pak, Inc.," and all other Marks;

               (3) all Patents;

               (4) all Copyrights; and

               (5) all Trade Secrets.

          (b)  Ownership of Intellectual Property. Seller owns or has the right
to use all of the Intellectual Property material to the operation of the
Business as it is currently conducted. Except for the Intellectual Property
licensed by Seller as a licensee, a copy of each such license is attached to
Schedule 4.18(b) and, except as otherwise disclosed on Schedule 4.18(b), Seller
owns all right, title and interest in and to all of the Intellectual Property,
free and clear of all Liens, security interests, charges, Encumbrances, equities
and other adverse claims, and has the right to use all of such Intellectual
Property without payment to a third party. All Intellectual Property is either
assignable or licensable by Seller to Buyer and such assignment or license may
be made without the consent of any third party and will not result in any
breach, violation or default under any agreement involving Intellectual
Property.

          (c)  Patents. Set forth on Schedule 4.18(c) is a complete and accurate
list and summary description of all of Seller's patents ("Patents"). Except as
disclosed on Schedule 4.18(c):

               (1) all of the issued Patents are (A) currently in compliance in
     with all applicable Legal Requirements (including payment of filing,
     examination and maintenance fees and proofs of working or use); (B) valid
     and enforceable; and (C) not subject to any maintenance fees or taxes or
     actions falling due within 90 days after the Closing Date;

               (2) no Patent has been or is now involved in any interference,
     reissue, reexamination or opposition proceeding. To the Knowledge of
     Seller, there is no potentially interfering patent or patent application of
     any third party;

               (3) no Patent is infringed or, to the Knowledge of Seller, has
     been challenged or threatened in any way;

               (4) to the Knowledge of Seller, none of the products manufactured
     and sold, nor any process or know-how used, by Seller infringes or is
     alleged to infringe any patent or other proprietary right of any third
     party; and

                                      -20-

<PAGE>

         (5) all products made, used or sold under the Patents have been marked
   with the proper patent notice.

     (d) Marks. Set forth on Schedule 4.18(d) is a complete and accurate list
and summary description of all of Seller's marks ("Marks"). Except as disclosed
on Schedule 4.18(d):

         (1) Seller is the owner of all right, title and interest in and to each
   of the Marks, free and clear of all Liens, security interests, charges,
   Encumbrances, equities and other adverse claims;

         (2) all Marks that have been registered with the United States Patent
   and Trademark Office are (A) currently in compliance with all applicable
   Legal Requirements (including the timely post-registration filing of
   affidavits of use and incontestability and renewal applications); (B) valid
   and enforceable; and (C) not subject to actions falling due within 90 days
   after the date hereof, except for such noncompliance which would not be
   expected to have an Adverse Effect;

         (3) no Mark has been or is now involved in any opposition,
   invalidation, cancellation or infringement action and, to the Knowledge of
   Seller, no such action is Threatened against any of the Marks;

         (4) to the Knowledge of Seller, none of the Marks used by Seller
   infringes or is alleged to infringe any trade name, trademark or service mark
   of any third party, nor, to the Knowledge of Seller, is there any potentially
   interfering trademark or trademark application of any third party; and

         (5) all of Seller's products and materials containing a Mark bear the
   proper federal registration notice where permitted by law.

     (e) Copyrights. Set forth on Schedule 4.18(e) is a complete and accurate
list and summary description of all of Seller's Copyrights. Except as disclosed
on Schedule 4.18(e):

         (1) Seller is the owner of all right, title, and interest in and to
   each of the Copyrights, free and clear of all Liens, security interests,
   charges, Encumbrances, equities and other adverse claims;

         (2) all the material Copyrights have been registered and are (A)
   currently in compliance with all applicable Legal Requirements; (B) valid and
   enforceable; and (C) not subject to any taxes or actions falling due within
   90 days after the date hereof;

         (3) no Copyright is infringed or, to the Knowledge of Seller, has been
   challenged or threatened in any way; and

                                      -21-

<PAGE>

         (4) none of the subject matter of any of the Copyrights infringes or is
   alleged to infringe any copyright of any third party or is a derivative work
   based on the work of a third party.

     (f) Trade Secrets. Each trade secret of Seller ("Trade Secrets"), and the
documentation relating to such Trade Secret, is current, accurate and sufficient
in detail and content to identify and explain it and to allow its full and
proper use without reliance on the knowledge or memory of any individual. Seller
and the Shareholders have taken all reasonable precautions to protect the
secrecy, confidentiality and value of Seller's Trade Secrets. Seller has good
title and an absolute, exclusive right to use the Trade Secrets. The Trade
Secrets are not part of the public knowledge or literature and have not been
used, divulged or appropriated either for the benefit of any other Person or to
the detriment of Seller. No Trade Secret is subject to any adverse claim or has
been challenged or threatened in any way.

     (g) Royalties. Schedule 4.18(g) contains a complete and accurate list and
summary description, including any royalties paid or received by Seller, of all
agreements or contracts relating to any of the Intellectual Property to which
Seller is a party or by which it is bound, except for any license implied by the
sale of a product and perpetual, paid-up licenses for commonly available
software programs with a value of less than $500 under which Seller is the
licensee. There are no outstanding or threatened disputes or disagreements
relating to any such agreement.

     (h) Employee Agreements. No former or current employee of Seller has
executed a written agreement that assigns to a Person other than Seller any or
all rights to any inventions, improvements, discoveries or information relating
to and used in the Business. Any inventions, improvements, discoveries or
information relating to and used in the Business and developed by former or
current employees of Seller in the course of their employment with Seller are
owned by Seller. To the Knowledge of Seller, no employee of Seller has entered
into any agreement that restricts or limits in any way the scope or type of work
in which the employee may be engaged or requires the employee to transfer,
assign or disclose information concerning his work to anyone other than Seller.

  4.19 Inventory. All Inventories on the Closing Date consist of items of a
quality and quantity useable or saleable in the Ordinary Course of Business as
presently conducted, except for obsolete items and items of below-standard
quality, all of which have been written off or written down to net realizable
value in the Acquisition Balance Sheet or on the accounting records of Seller as
of the Closing Date, as the case may be. No items included in the Inventories
are pledged as collateral or held by Seller on consignment from another, except
as set forth on Schedule 4.19. The inventories are valued in accordance with the
Accounting Standards and FIFO/average cost, consistent with past practices, and
were so valued at the date of the Acquisition Balance Sheet. The quantities of
each item of Inventory (whether raw materials, work-in-process or finished
goods) are not excessive, but are reasonable in the present circumstances of
Seller and the Business. The inventory obsolescence policies of Seller are
appropriate for the nature of the products sold and the marketing methods used

                                      -22-

<PAGE>

by Seller and the reserve for inventory obsolescence contained in the
Acquisition Balance Sheet fairly reflects the amount of obsolete inventory as of
the date thereof. Seller shall conduct physical inventory on May 31, 2002, or on
such other mutually agreed date, and will make full and complete adjustments to
its perpetual records pursuant to such physical inventory.

  4.20 Investment Intention. Seller is acquiring the Note solely for its own
account and not with any view to or for resale, distribution or other
disposition.

  4.21 Labor Relations; Compliance. Seller has not been, nor is it, a party to
any collective bargaining or other labor contract. Except as set forth on
Schedule 4.21, there has not been within the past three (3) years, there is not
presently pending or existing and, to the Knowledge of Seller, there is not
Threatened (a) any strike, slowdown, picketing, work stoppage or employee
grievance process; (b) any Proceeding against or affecting Seller relating to
the alleged violation of any Legal Requirement pertaining to labor relations or
employment matters, including any charge or complaint filed by an employee,
former employee or union with the National Labor Relations Board, the Equal
Employment Opportunity Commission or any comparable Governmental Body,
organizational activity or other labor or employment dispute against or
affecting Seller or its premises; or (c) any application for certification of a
collective bargaining agent. To the Knowledge of Seller and the Shareholders, no
event has occurred or circumstance exists that could provide the basis for any
work stoppage or other labor dispute. There is no lockout of any employees by
Seller and no such action is contemplated by Seller. Seller is in substantial
compliance in all material respects with all Legal Requirements relating to
employment, equal employment opportunity, nondiscrimination, immigration, wages,
hours, collective bargaining, the payment of social security and similar taxes,
occupational safety and health and plant closing. Except as set forth on
Schedule 4.21, Seller is not liable for the payment of any compensation,
damages, taxes, fines, penalties or other amounts, however designated, for
failure to comply with any of the foregoing Legal Requirements.

        4.22 Litigation; Orders.

             (a) Proceedings. Except as set forth on Schedule 4.22, there is no
Proceeding pending or, to the Knowledge of Seller, Threatened against or
relating to Seller or its property or assets. Except as disclosed on Schedule
4.22, to the Knowledge of Seller: (i) there is no basis or alleged basis for any
such Proceeding or of any governmental investigation relative to Seller, its
property or assets, and (ii) no event has occurred, nor does any circumstance
exist, that may give rise to or serve as a basis for the commencement of any
such Proceedings which may have an Adverse Effect on Buyer.

             (b) Orders. Except as set forth on Schedule 4.22, (1) there is no
Order to which Seller, or any of the assets owned or used by Seller, is subject,
other than Orders generally affecting the industry in which Seller conducts the
Business; (2) nor is any Shareholder subject to any Order that relates to the
business of, or any of the assets owned or used by, Seller; and (3) no officer,
director, agent or

                                      -23-

<PAGE>

employee of Seller is subject to any Order that prohibits such officer,
director, agent or employee from engaging in or continuing any conduct, activity
or practice relating to the Business. Except as set forth on Schedule 4.22, (A)
Seller and each Shareholder are in full compliance with all of the material
terms and requirements of each Order to which they, or any of the assets owned
or used by them, are or have been subject; (B) no event has occurred, nor does
any circumstance exist that may constitute or result in (with or without notice
or lapse of time) a violation of or failure to comply with any term or
requirement of any Order to which Seller, or any of the assets owned or used by
Seller, is subject which may have an Adverse Effect on Buyer; and (C) neither
Seller nor any Shareholder has received, any notice or other communication
(whether oral or written) from any Governmental Body or any other Person
regarding any actual, alleged, possible or potential violation of, or failure to
comply with, any term or requirement of any Order to which Seller or any
Shareholder, or any of the assets owned or used by Seller, are or have been
subject, which may have an Adverse Effect on Buyer.

   4.23 No Agent or Broker. Except for Becker & Beggs, Ltd., no agent or broker
or other Person acting pursuant to authority given by Seller or any Shareholder
is entitled to any commission, finder's fee or other compensation from Buyer in
connection with the transactions contemplated by this Agreement.

   4.24 Notices of Violation. Seller has received no notice, and, to the
Knowledge of Seller, there is no pending notice, of violation of any Legal
Requirement, nor the pendency of any Proceeding, threatened or otherwise, which
could prohibit, impede, delay or adversely effect the ability of Seller to
effect the transactions contemplated in this Agreement.

   4.25 Personal Property. Schedule 4.25 contains a detailed list of all
machinery, equipment, fixtures, computer hardware and software, tools, supplies,
spare parts, furniture and vehicles purchased for or used in connection with the
Business and all other tangible personal property and assets owned or leased by
Seller which are used in or relate to the Business. Schedule 4.25 contains an
accurate and complete listing of all such assets as of 11:59 p.m. on May 30,
2002.

     4.26 Products.

          (a) Product Warranties. Each product manufactured, fabricated,
assembled, sold, leased or delivered by Seller has been in conformity in all
material respects with all applicable contractual commitments and all express
and implied warranties and Seller has no Liability (and, to the Knowledge of
Seller, there is no basis for any present or future Proceeding against it giving
rise to any Liability) for replacement or repair thereof or other damages in
connection therewith, subject only to the reserve for product warranty claims
set forth on the Acquisition Balance Sheet, as adjusted for the passage of time
through the Closing Date in the Ordinary Course of Business. No product
manufactured, fabricated, assembled, sold, leased or delivered by Seller is
subject to any guaranty, warranty or other indemnity beyond the applicable terms
and conditions of sale or lease for such product. Because of the nature of
Seller's Business, Seller does not have any standard terms and

                                      -24-

<PAGE>

conditions of sale. Each business relationship of the Seller requires a
customized terms and conditions of sale.

          (b) Product Liability. To the best of Seller's Knowledge, Seller has
no Liability (and, to the Knowledge of Seller, there is no basis for any present
or future Proceedings against it giving rise to any Liability) arising out of
any injury to individuals or property as a result of the ownership, possession
or use of any product manufactured, fabricated, assembled, sold, leased or
delivered by Seller prior to the Closing Date.

     4.27 Real Property.

          (a) Owned Real Property. Seller does not own any real property.

          (b) Leased Real Property. Schedule 4.27(b) lists and describes briefly
all real property leased or subleased to Seller. Seller has delivered to Buyer
correct and complete copies of the leases and subleases listed on Schedule
4.27(b), as amended. With respect to each lease and sublease listed on Schedule
4.27(b), and except as set forth on Schedule 4.27(b):

              (1) there are no disputes, oral agreements or forbearance programs
     in effect as to the lease or sublease;

              (2) Seller has not assigned, transferred, conveyed, mortgaged,
     deeded in trust or encumbered any interest in the leasehold or
     subleasehold;

              (3) all facilities leased or subleased thereunder have received
     all approvals of Governmental Authorities (including licenses and permits)
     required in connection with the operation thereof and have been operated
     and maintained in accordance with applicable Legal Requirements; and

              (4) all facilities leased or subleased thereunder are supplied
     with utilities and other services necessary for the operation of such
     facilities.

     4.28 Similar Business Ownership. Neither the Shareholders, nor any officer
or director of Seller, nor any family member of any of them, owns, directly or
indirectly, any interest in, or is an officer, director or principal of, any
corporation, partnership, proprietorship, association or other entity which is
engaged in a business similar to that of Seller, which has conducted any
business of any type whatsoever with Seller, or which is a party to any contract
or agreement to which Seller is a party or to which it may be bound, except as
set forth on Schedule 4.28. Neither the Shareholders, nor any officer or
director of Seller, nor any family member of any of them has, directly or
indirectly, engaged in any transaction with Seller, except transactions inherent
in the capacity of such person as an officer, director or employee of Seller,
and except as set forth on Schedule 4.28.

                                      -25-

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     4.29 Solvency. Seller is not now insolvent, and will not be rendered
insolvent by any of the transactions contemplated by this Agreement. Immediately
after giving effect to the consummation of the transactions contemplated by this
Agreement, (a) Seller will be able to pay its Liabilities as they become due;
(b) Seller's capital will not be impaired or inadequate; (c) Seller will not
have insufficient capital with which to conduct its present or proposed
business; and (d) Seller will be able to satisfy any judgments against it in
actions for money damages promptly in accordance with their terms (taking into
account litigation pending and Threatened, the maximum probable amount of such
judgments in any such actions and the earliest reasonable time at which such
judgments might be rendered) as well as all other Liabilities of Seller as they
become due. The cash available to Seller, after taking into account all other
anticipated uses of the cash of Seller, will be sufficient to pay all such
judgments promptly in accordance with their terms. As used in this Section,
"insolvent" means, for any Person, that the sum of the present fair saleable
value of its assets does not and will not exceed its Liabilities.

     4.30 Status of Contracts. Except as set forth on Schedule 4.30, to the
Knowledge of Seller, each of the Contracts listed on Schedules 2.1(g), 4.14(a)
and 4.27(b) (collectively, the "Seller Agreements") constitutes a legal, valid,
binding and enforceable obligation of the parties thereto and is in full force
and effect and the transactions contemplated herein shall not have an Adverse
Effect on the Seller Ancillary Agreements and they shall continue in full force
and effect immediately after the Closing with Buyer as a party thereto instead
of Seller, in each case without breaching the terms thereof or resulting in the
forfeiture or impairment of any rights thereunder and without the consent,
approval or act of, or the making of any filing with, any other party. Seller
has fulfilled and performed its obligations under each of the Seller Agreements,
and Seller is not in, or, to the Knowledge of Seller, alleged to be in, breach
or default under, nor to the knowledge of Seller is there or is there alleged to
be any basis for termination of, any of the Seller Agreements and, to the
Knowledge of Seller, no other party to any of the Seller Agreements has breached
or defaulted thereunder, and to the Knowledge of Seller no event has occurred
and no condition or state of facts exists which, with the passage of time or the
giving of notice or both, would constitute such a default or breach by Seller
or, to the Knowledge of Seller, by any such other party. Seller is not currently
renegotiating any of the Seller Agreements or paying liquidated damages in lieu
of performance thereunder. None of the Seller Agreements contains terms unduly
burdensome or harmful to Buyer, upon assignment to Buyer. True and complete
copies of each of the Seller Agreements have heretofore been delivered to Buyer
by Seller.

     4.31 Studies. Seller has delivered to Buyer copies of all engineering
studies, environmental impact reports or assessments and other reports and
studies that are material to the Business, and Schedule 4.31 contains a listing
thereof.

     4.32 Subsidiaries and Investments. Seller does not, directly or indirectly,
(a) own, of record or beneficially, any outstanding voting securities or other
equity interests in any corporation, partnership, joint venture or other entity;
or (b) control any corporation, partnership, joint venture or other entity which
is involved in or relates to Seller.

                                      -26-

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     4.33 Taxes; Tax Returns; Tax Elections.

          (a) Tax Returns. Seller has prepared, signed and filed all Tax Returns
required to be filed prior to the Closing Date. Attached to Schedule 4.33(a) are
copies of all income and sales Tax Returns filed by Seller since December 31,
1998. All Tax Returns were correct and complete in all material respects and
Seller has timely paid or accrued all Taxes or installments thereof of every
kind and nature whatsoever which were due and owing on Tax Returns or which were
or are otherwise due and owing under all applicable laws and regulations for any
periods for which Tax Returns were due, whether or not reflected on the Tax
Returns, and which may have an Adverse Effect on Buyer. The provision for Taxes
in the Acquisition Balance Sheet is sufficient for the payment of all Taxes
attributable to all periods ended on or before its date and reasonably adequate
accruals have been made by Seller for all liabilities for Taxes accruing since
its date. Seller has timely paid in full all ad valorem property taxes and other
assessments levied on its assets and properties which have heretofore become due
and payable. There are no Proceedings, investigations or claims now pending,
nor, to the Knowledge of Seller, proposed or Threatened against Seller, nor are
there any matters under discussion with the IRS or any other Governmental
Authority relating to any Taxes or assessments or any claims or deficiencies
with respect thereto. Seller has not undergone any income or sales Tax audits by
the IRS or relevant state authorities, except as set forth on Schedule 4.33(a).

          (b) Tax Elections. Seller made an election under section 1362 of the
IRC to be subject to income tax as an S corporation and has been an S
corporation since its inception. Seller is not a "foreign person" within the
meaning of section 1445 of the IRC.

          (c) Withholdings. Seller has withheld proper and accurate amounts from
its employees in full and complete compliance with the tax withholding
provisions of the IRC and other applicable Legal Requirements and has filed
proper and materially accurate federal, foreign, state and local Tax Returns and
reports for all years and periods (and portions thereof) for which any Tax
Returns were due with respect to employee income, income tax withholding,
withholding taxes, social security taxes and unemployment taxes. All payments
due from Seller on account of employee tax withholdings, including income tax
withholdings, social security taxes or unemployment taxes in respect to years
and periods (and portions thereof) ended on or prior to the Closing Date were
paid prior to such date on or before their due date.

          (d) Tax Clearance. Except as provided on Schedule 4.33(d) and in
Section 6.6, (1) Seller is not liable for any sales or use Tax, (2) no sales Tax
will be imposed on the sale of the Acquisition Assets to Buyer and (3) Buyer is
not required to withhold any portion of the Purchase Price on account of any
sales or use Tax.

     4.34 Title to Properties. Seller has good and marketable title to all of
the Acquisition Assets (excluding leased properties). Except as set forth on
Schedule 4.34, all Acquisition Assets are free and clear of all Encumbrances,
except the Lien for current ad valorem taxes not yet due and payable.

                                      -27-

<PAGE>

     4.35 Completeness of Statement; Effect of Representations and Warranties.
Seller and the Shareholders have disclosed to Buyer in separate writings or in
the Schedules attached hereto, all adverse facts known to them relating to the
representations and warranties. The representations and warranties of Seller and
the Shareholders in this Agreement, as qualified by the disclosures made on the
Schedules attached hereto, are true and complete in all respects. No
representation or warranty of Seller or the Shareholders in this Agreement, as
qualified by the disclosures made on the Schedules attached hereto, contains any
untrue statement of a material fact, omits any material fact necessary to make
such representation or warranty, under the circumstances which it was made, not
misleading, or contains any misstatement of a material fact. All of the
representations and warranties made by Seller and the Shareholders, as qualified
by the disclosures made on the Schedules attached hereto, are made with the
knowledge, expectation, understanding and desire that Buyer place complete
reliance thereon. Neither the representations and warranties of Seller or the
Shareholders, nor the indemnification obligations of Seller and the
Shareholders, shall be affected, qualified, modified or deemed waived by reason
of the fact that Buyer should have known that any representation or warranty of
Seller or the Shareholders is or might be inaccurate in any respect. The effect
of Buyer's Knowledge of an inaccuracy is provided for in Section 11.9(c).

5. Representations and Warranties of Buyer. Buyer hereby represents and warrants
to Seller and the Shareholders as follows:

   5.1 Corporate Status. Buyer is a limited liability company duly organized,
validly existing and in good standing under the laws of the State of Ohio and is
authorized to transact business therein. Buyer has, and at all times has had,
full corporate or other applicable power and authority to own and lease its
properties as such properties are now owned and leased and to conduct its
business as and where such businesses have and are now being conducted.

   5.2 Authority; Consents; Enforcement; Noncontravention; Noncompetes.

       (a) Authority. Buyer has the corporate or other applicable power and
authority to execute, deliver and perform this Agreement, the Note and all other
agreements, certificates or documents contemplated hereby to which it is a party
("Buyer Ancillary Documents") and except as set forth on Schedule 5.2(a) has
taken all actions required to authorize, execute, deliver and perform this
Agreement and the Buyer Ancillary Documents, including approval by the members
or manager of Buyer.

       (b) Consents. Except as set forth on Schedule 5.2(b), no consent, action,
approval or authorization of or registration, declaration or filing with any
Governmental Body, is required for the execution, delivery or performance of
this Agreement or the Buyer Ancillary Documents by Buyer ("Buyer's Consents").

                                      -28-

<PAGE>

       (c) Enforcement. This Agreement and the Buyer Ancillary Documents have
been duly executed and delivered by Buyer and constitute the legal, valid and
binding obligations of Buyer, as the case may be, enforceable in accordance with
their terms.

       (d) Noncontravention. The execution and delivery of this Agreement and
the Buyer Ancillary Documents by Buyer does not violate any provision of the
Organizational Documents of Buyer and will not result in a breach or violation
or default under any Order of any court or governmental authority to which Buyer
is subject or result in a breach by Buyer under any contract or obligation to
which it is bound. Neither the execution and the delivery of this Agreement and
the Buyer Ancillary Documents, nor the compliance with, or fulfillment of, the
terms, conditions and provisions hereof or thereof, will (1) violate any Legal
Requirement of Buyer or any provision of its organizational documents; (2)
conflict with, result in a breach of, constitute a default under, any contract,
agreement, lease, license, instrument or other arrangement or order to which
Buyer is a party or is bound by; (3) result in the acceleration of, create in
any party the right to accelerate, terminate, modify or cancel, or result in the
imposition of or creation of any Encumbrance upon or with respect to any of the
assets or properties owned or used by Buyer; (4) require any notice under any
agreement, contract, lease, license, instrument or other arrangement to which
Buyer is a party or by which it is bound or to which any of its assets or
properties are subject; or (5) require the approval, consent, authorization or
act of, or the making by Buyer of, any declaration, filing or registration with,
any Person.

   5.3 No Agent or Broker. No agent or broker or other Person acting pursuant to
authority given by Buyer or Guarantor is entitled to any commission or finder's
fee or other compensation, in connection with the transactions contemplated by
this Agreement.

   5.4 Completeness of Statements; Effect of Representations and Warranties.
Buyer has disclosed to Seller in other writings or in the Schedules attached
hereto, all adverse facts known to it relating to the representations and
warranties of Buyer. The representations and warranties of Buyer in this
Agreement, as qualified by the disclosures made on the Schedules attached
hereto, are true and complete in all respects. No representation or warranty of
Buyer in this Agreement, as qualified by the disclosures made on the Schedules
attached hereto, contains any untrue statement of a material fact, omits any
material fact necessary to make such representation or warranty, under the
circumstances which it was made, not misleading, or contains any misstatement of
a material fact. All of the representations and warranties made by Buyer (as
qualified by the disclosure made on the Schedules attached hereto) are made with
the knowledge, expectation, understanding and desire that Seller place complete
reliance thereon. Neither the representations and warranties of Buyer, nor the
indemnification obligations of Buyer, shall be affected, qualified, modified or
deemed waived by reason of the fact that Seller or the Shareholders knew or
should have known that any representation or warranty of Buyer is or might be
inaccurate in any respect.

   5.5 Guarantor's Corporate Status. Guarantor is a public corporation whose
shares are listed on a national stock exchange and is the most remote parent
corporation of Buyer; and is duly organized, validly existing and in good
standing under the laws of the State of Ohio and is authorized to transact

                                      -29-

<PAGE>

business therein. Guarantor has, and at all times has had, full corporate or
applicable power and authority to own and lease its properties as such
properties are now owned and leased and to conduct its business as and where
such businesses have and are now being conducted.

     5.6 Guarantor Authorities; Consents; Enforcement; Noncontravention.

         (a) Authority. Guarantor has the corporate or other applicable power
and authority to execute, deliver and perform this Agreement, the Guaranty and
all other agreements, certificates or documents contemplated hereby to which it
is a party ("Guarantor Ancillary Documents") and except as set forth on Schedule
5.6(a) has taken all actions required to authorize, execute, deliver and perform
this Agreement and the Guarantor Ancillary Documents, including approval by the
board of directors of Guarantor.

         (b) Consents. Except as set forth on Schedule 5.6(b), no consent,
action, approval or authorization of or registration, declaration or filing with
any Governmental Body, is required for the execution, delivery or performance of
this Agreement or the Guarantor Ancillary Documents by Guarantor ("Guarantor's
Consents").

         (c) Enforcement. This Agreement and the Guarantor Ancillary Documents
have been duly executed and delivered by Guarantor and constitute the legal,
valid and binding obligations of Guarantor, as the case may be, enforceable in
accordance with their terms.

         (d) Noncontravention. The execution and delivery of this Agreement and
the Guarantor Ancillary Documents by Guarantor does not violate any provision of
the organizational documents of Guarantor and will not result in a breach or
violation or default under any Order of any court or governmental authority to
which Guarantor is subject or result in a breach by Guarantor under any contract
or obligation to which it is bound. Neither the execution and the delivery of
this Agreement and the Guarantor Ancillary Documents, nor the compliance with,
or fulfillment of, the terms, conditions and provisions hereof or thereof, will
(1) violate any Legal Requirement of Guarantor or any provision of its
organizational documents; (2) conflict with, result in a breach of, constitute a
default under, any contract, agreement, lease, license, instrument or other
arrangement or order to which Guarantor is a party or is bound by; (3) result in
the acceleration of, create in any party the right to accelerate, terminate,
modify or cancel, or result in the imposition of or creation of any Encumbrance
upon or with respect to any of the assets or properties owned or used by
Guarantor; (4) require any notice under any agreement, contract, lease, license,
instrument or other arrangement to which Guarantor is a party or by which it is
bound or to which any of its assets or properties are subject; or (5) require
the approval, consent, authorization of or act of, and except for Guarantor's
post-closing filing with the Securities and Exchange Commission, the making by
Guarantor of, any declaration, filing or registration with, any Person.

  6. Covenants of the Parties.

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<PAGE>

          6.1 Transition of the Business. Seller and the Shareholders covenant
     with Buyer to cooperate with Buyer and introduce Buyer's representatives to
     Seller's customers and certain of Seller's employees prior to the Closing.
     The Shareholders shall enter into a Consulting Agreement in the form of
     Exhibit O in which each of the Shareholders agrees to render post-closing
     transaction services to Buyer. Seller and the Shareholders covenant to
     cooperate with Buyer in providing all information required hereunder and
     access thereto and whatever is reasonably required to carry out the
     purposes and intent of the transactions contemplated by this Agreement.

          6.2 Employment of Business's Employees. Prior to the Closing, Buyer
     will offer employment to those of the Business's employees who are active
     employees on the Closing Date and who execute Buyer's standard
     Confidentiality Agreement, provided that such offer shall be on a 30 day
     transitionary basis which shall commence on the Closing Date and, for those
     employees terminated during such 30 day period, Buyer shall have no
     obligations for severance or other benefits or other liability to such
     employees by reason of their employment or termination by Seller prior to
     the Closing Date or by Buyer on or thereafter.

          6.3 Further Assurances. Each of the parties agrees that it will at any
     time, and from time to time, after the Closing Date, upon the request and
     at the expense of the appropriate party, do, execute, acknowledge and
     deliver, or will cause to be done, executed, acknowledged and delivered,
     all such further acts, assignments, transfers, conveyances and such further
     acts, assignments, transfers, conveyances and assurances as may be required
     to complete the transactions contemplated herein. After the Closing Date,
     at the expense of Seller, Seller and the Shareholders shall, and shall use
     their Best Efforts to cause any necessary third party to, execute such
     documents and do such acts and things as Buyer may reasonably require for
     the purpose of giving to Buyer the full benefit of all the provisions of
     this Agreement and as may be reasonably required to complete the
     transactions contemplated herein, including without limitation obtaining
     the Consents set forth on Schedule 4.7(b) which were not obtained and
     delivered by Seller and the Shareholders at the Closing. After the Closing
     Date, at the expense of Buyer, Buyer shall, and shall use its Best Efforts
     to cause any necessary third party to, execute such documents and do such
     acts and things as Seller and/or the Shareholders may reasonably require
     for the purpose of giving to Seller or any Shareholder the full benefit of
     all the provisions of this Agreement and as may be reasonably required to
     complete the transactions contemplated herein.

          6.4 Proration of Expenses and Other Charges of the Business. On the
     Closing Date, the periodic charges of the Business, including rent, prepaid
     expenses, utility and license fees and all liabilities related to salaries,
     wages, vacation pay and other benefits, shall be apportioned on a time
     basis so that such part of the relevant charges attributable to the period
     prior to the Closing Date shall be borne by Seller and such part of the
     relevant charges attributable to the period after the Closing Date shall be
     borne by Buyer. All rents, royalties and other similar sums receivable in
     respect of the Business shall be apportioned between Buyer and Seller on
     like terms.

          6.5 Filing of Taxes; Payment. Seller shall, for all periods through
     the Closing Date:

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<PAGE>

               (a) prepare and timely file (including extensions) all Tax
     Returns that it is required to file under all applicable laws;

               (b) timely pay all Taxes it is required to pay;

               (c) withhold and timely pay over to the applicable authorities
     all Taxes that it is required to withhold and pay over; and

               (d) pay all Taxes on any sales and the income and gain, if any,
     that it realizes on the transactions contemplated by this Agreement,
     including the sale of the Assets.

          6.6 Sales and Other State Taxes. Exhibit E is a summary of the various
     obligations of Seller to file sales and/or use tax returns in the states
     where Seller does business. Seller has given notice to the taxing
     authorities which require notice prior to the completion of the
     transactions contemplated herein as shown on Exhibit E and on the Closing
     Date shall file the required notices with the other taxing authorities.

          6.7 Use of Names. From and after the Closing Date, Seller and the
     Shareholders shall not, in any manner whatsoever, use the name "Quick Pak,"
     or any derivative thereof or any other Marks of Seller included in the
     Acquisition Assets.

          6.8 Guaranty. Guarantor hereby covenants and agrees to guaranty
     payment and performance of all covenants and obligations of Buyer
     hereunder, including, but not limited to, Buyer's obligation to pay Seller
     the Purchase Price Adjustment and Buyer's indemnification obligations under
     Section 11 below.

          6.9 Jergens Sublease. Seller and the Shareholders agree to cooperate
     with and use its and their Best Efforts to obtain a consent of the landlord
     to assign the Jergens sublease to Buyer.

     7. Conditions Precedent to Buyer's Obligation to Close. Buyer's obligation
     to consummate the transactions contemplated herein, and to take the actions
     required to be taken by Buyer, at the Closing, is subject to the
     satisfaction, at or prior to the Closing, of each of the following
     conditions (any of which may be waived by Buyer, in whole or in part, and
     each of which shall be deemed fully satisfied or waived upon the occurrence
     of the Closing):

          7.1 Accuracy of Representations. All of the representations and
     warranties of Seller and the Shareholders in this Agreement (considered
     collectively), and each of such representations and warranties (considered
     individually), must be accurate in all material respects as of the Closing
     Date.

          7.2 Seller and the Shareholders' Performance. All of the covenants and
     obligations that Seller and the Shareholders are required to perform or to
     comply with pursuant to this Agreement at or

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<PAGE>

     prior to the Closing (considered collectively), and each of these covenants
     and obligations (considered individually), must have been duly performed
     and complied with in all material respects.

          7.3 Consents. Each of the Consents identified on Schedule4.7(b) must
     have been obtained and must be in full force and effect. Buyer acknowledges
     that Seller and the Shareholders may not have the Consents identified on
     Schedule 4.7(b) at the Closing and agree to waive this condition to Closing
     in exchange for the Shareholders' promise to use each of their Best Efforts
     to obtain the Consents as soon as possible after the Closing Date.

          7.4 Other Documents. Buyer must have received such other documents as
     it may reasonably request for the purposes of (a) evidencing the accuracy
     of any of the representations and warranties of Seller and the
     Shareholders; (b) evidencing the performance by either Seller or the
     Shareholders of, or the compliance by either Seller or the Shareholders
     with, any covenant or obligation required to be performed or complied with
     by them; (c) evidencing the satisfaction of any condition referred to in
     this Section 7; or (d) otherwise facilitating the consummation or
     performance of any of the transactions contemplated herein.

          7.5 No Proceedings. There must not have been commenced or Threatened
     against Buyer, or against any Person affiliated with Buyer, any Proceeding
     (a) involving any challenge to, or seeking damages or other relief in
     connection with, any of the transactions contemplated herein, or (b) that
     may have the effect of preventing, delaying, making illegal, or otherwise
     interfering with any of the transactions contemplated herein.

          7.6 No Prohibition. Neither the consummation nor the performance of
     any of the transactions contemplated herein will, directly or indirectly
     (with or without notice or lapse of time), materially contravene or
     conflict with, or result in a material violation of, or cause Buyer or any
     Person affiliated with Buyer to suffer any material adverse consequence
     under, (a) any applicable Legal Requirement or Order; or (b) any Legal
     Requirement or Order that has been published, introduced or otherwise
     proposed by or before any Governmental Body.

     8. Conditions Precedent to Seller's Obligation to Close. Seller's
     obligation to consummate the transactions contemplated herein and to take
     the other actions required to be taken by Seller at the Closing is subject
     to the satisfaction, at or prior to the Closing, of each of the following
     conditions (any of which may be waived by Seller, in whole or in part):

          8.1 Accuracy of Representations. All of Buyer's representations and
     warranties in this Agreement (considered collectively), and each of these
     representations and warranties (considered individually), must be accurate
     in all material respects as of the Closing Date.

          8.2 Buyer's Performance. All of the covenants and obligations that
     Buyer is required to perform or to comply with pursuant to this Agreement
     at or prior to the Closing (considered

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<PAGE>

     collectively), and each of these covenants and obligations (considered
     individually), must have been performed and complied with in all material
     respects.

          8.3 Consents. Each of the Consents identified on Schedule 5.2(b) must
     have been obtained and must be in full force and effect.

          8.4 Other Documents. Seller must have received such other documents as
     Seller may reasonably request for the purpose of (a) enabling its counsel
     to provide the opinion referred to in Section 10.1(g); (b) evidencing the
     accuracy of any representation or warranty of Buyer; (c) evidencing the
     performance by Buyer of, or the compliance by Buyer with, any covenant or
     obligation required to be performed or complied with by Buyer; (d)
     evidencing the satisfaction of any condition referred to in this Section 8;
     or (e) otherwise facilitating the consummation of any of the transactions
     contemplated herein.

          8.5 No Proceedings. There must not have been commenced or Threatened
     against Seller or the Shareholders, or against any Person affiliated with
     Seller or the Shareholders, any Proceeding (a) involving any challenge to,
     or seeking damages or other relief in connection with, any of the
     transactions contemplated herein; or (b) that may have the effect of
     preventing, delaying, making illegal or otherwise interfering with any of
     the transactions contemplated herein

          8.6 Assumption of Leases and Assumed Liabilities and Release. Buyer
     must have assumed in writing all of the Facility Leases and the Assumed
     Liabilities and obtained Seller's and each Shareholder's release from the
     Facility Leases and the Fifth Third note, or in lieu of any such release
     which cannot be obtained at Closing, provided Buyer's and Guarantor's
     indemnification of Seller and Shareholders from any liabilities accruing
     after the Closing Date.

     9. Termination.

          9.1 Termination Events. This Agreement, by notice given prior to or at
     the Closing, may be terminated:

               (a) by either Buyer or Seller if a breach of any provision of
     this Agreement has been committed by the other party and such breach has
     not been waived;

               (b) (1) by Buyer if any of the conditions in Section 7 has not
     been satisfied as of the Closing Date or if satisfaction of such a
     condition is or becomes impossible (other than through the failure of Buyer
     to comply with its obligations under this Agreement) and Buyer has not
     waived such condition on or before the Closing Date; or (2) by Seller, if
     any of the conditions in Section 8 has not been satisfied of the Closing
     Date or if satisfaction of such a condition is or becomes impossible (other
     than through the failure of Seller or the Shareholders to comply with their
     obligations under this Agreement) and Seller has not waived such condition
     on or before the Closing Date;

                                      -34-

<PAGE>

               (c) by mutual consent of Buyer and Seller; or

               (d) by either Buyer or Seller if the Closing has not occurred
     (other than through the failure of any party seeking to terminate this
     Agreement to comply fully with its obligations under this Agreement) on or
     before one (1) business day after the date of signing of this Agreement by
     all parties, or such later date as the parties may agree upon in writing.

          9.2 Effect of Termination. Each party's right of termination under
     Section 9 is in addition to any other rights it may have under this
     Agreement or otherwise, and the exercise of a right of termination will not
     be an election of remedies. If this Agreement is terminated pursuant to
     Section 9.1, all further obligations of the parties under this Agreement
     will terminate, except that the obligations in Sections 12.4 and 12.5 will
     survive; provided that, if this Agreement is terminated by a party because
     of the breach of the Agreement by the other party or because one or more of
     the conditions to the terminating party's obligations under this Agreement
     is not satisfied as a result of the other party's failure to comply with
     its obligations under this Agreement, the terminating party's right to
     pursue all legal remedies will survive such termination unimpaired.

     10. Deliveries and Actions to be Taken at Closing.

          10.1 Deliveries by Seller and the Shareholders. At the Closing, Seller
     and the Shareholders shall deliver to Buyer (duly executed where
     appropriate):

               (a) Seller's Authority Certificate. A certificate from Seller in
     the form of Exhibit F, dated as of the Closing Date, certified by the
     Secretary of Seller, attached to which are (1) a certified copy of the
     articles of incorporation of Seller; (2) a copy of the bylaws or other
     organizational documents of Seller; (3) copies of the resolutions of the
     Shareholders and the board of directors of Seller approving this Agreement
     and the transactions contemplated thereby; and (4) an incumbency
     certificate of the Persons executing this Agreement or any other document
     delivered at the Closing on behalf of Seller.

               (b) Seller's Compliance Certificate. A certificate in the form of
     Exhibit G executed by an authorized officer of Seller certifying that
     (1)(A) the representations and warranties made by Seller in this Agreement
     that are qualified as to materiality are true, complete and accurate as of
     the date hereof and (B) the representations and warranties that are not so
     qualified are true, complete and accurate in all material respects as of
     the date hereof; and (2) Seller has performed and complied, in all material
     respects, with all agreements, obligations, covenants and conditions
     required by the Agreement to be so performed or complied with by Seller on
     or prior to the date hereof.

               (c) Bill of Sale and Assignment. A Bill of Sale and Assignment
     for the Acquisition Assets in the form of Exhibit H.

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<PAGE>

               (d) Vehicle Registration, Ownership Documents. Registration,
     title and motor vehicle transfer forms and other required documentation to
     transfer to Buyer and enable Buyer to properly license each motor vehicle
     which is part of the Acquisition Assets.

               (e) Possession of Acquisition Assets. Possession of all the
     Acquisition Assets, free of the possession of all third parties.

               (f) Payment of Liens and Encumbrances. Confirmation that the
     Encumbrances set forth on Schedule 4.34 have been paid or are being paid
     simultaneously with the Closing.

               (g) Opinion of Counsel. An opinion from counsel for Seller and
     the Shareholders in the form of Exhibit I.

               (h) Consents; Terminations; Governmental Authorizations. Consents
     of Landlords for all leases assumed, except the Jergens sublease,
     Termination of Lease Agreements for all current leases that will be
     canceled and replaced and consents of all other parties to the Contracts
     and Governmental Authorizations being assigned to and assumed by Buyer
     hereunder, where such consent is required for the assumption of such
     Contracts and Governmental Authorizations, except where Buyer has waived
     delivery of such Consents or terminations as a condition of Closing.

               (i) Change of Name. On or prior to the Closing Date, Sellers have
     caused to be properly filed documents required to change Seller's name to a
     name which does not include "Quick Pak" or any name similar thereto
     including (i) an amendment to the certificate of incorporation or other
     organizational documents of Seller with the Secretary of State of the State
     of its jurisdiction; and (ii) any similar documents with the Secretaries of
     State of any other jurisdictions in which Seller is qualified to do
     business. Seller shall provide Buyer with duplicate originals of any such
     documents. Seller shall also properly file all other withdrawals of assumed
     names in all jurisdictions in which Seller had filed assumed name
     certificates or such comparable documents in recognition of the sale and
     assignment of Seller's name to Buyer and Seller's agreement not to
     hereafter use the name "Quick Pak," or any other Marks of Seller or any
     derivative thereof.

               (j) Modification of Bank Accounts. Seller shall execute and
     deliver the appropriate documents granting Buyer the right to endorse for
     deposit check made payable to Seller.

               (k) Contract Assignments. Seller shall deliver assignments for
     the following contracts with certain of Seller's key employees: (i) Trade
     Secret/Non-Competition Agreement with Tim Grubbs, (ii) Trade
     Secret/Non-Competition Agreement with Johan Pot, (iii) Confidentiality
     Agreement with Lawrence M. Mullis, II.

          10.2 Deliveries by Buyer. At the Closing, Buyer shall deliver to
     Seller and the Shareholders (duly executed where appropriate):

                                      -36-

<PAGE>

               (a) Buyer's Authority Certificate. A certificate from Buyer in
     the form of Exhibit J, dated as of the Closing Date, certified by either
     the Secretary, a Member or a Manager of Seller, attached to which are (1) a
     certified copy of the articles of organization of Buyer; (2) a copy of the
     bylaws or other organizational documents of Buyer; (3) copies of the
     resolutions of the Members and the board of directors of Buyer approving
     this Agreement and the transactions contemplated thereby; and (4) an
     incumbency certificate of the Persons executing this Agreement or any other
     document delivered at the Closing on behalf of Buyer.

               (b) Buyer's Compliance Certificate. A certificate in the form of
     Exhibit K executed by the member of Buyer certifying that (1)(A) the
     representations and warranties made by Buyer in this Agreement that are
     qualified as to materiality are true, complete and accurate as of the date
     hereof and (B) the representations and warranties that are not so qualified
     are true, complete and accurate in all material respects as of the date
     hereof; and (2) Buyer has performed and complied, in all material respects,
     with all agreements, obligations, covenants and conditions required by the
     Agreement to be so performed or complied with by Buyer on or prior to the
     date hereof.

               (c) Purchase Price. Payment of the Purchase Price in the form
     required by Section 2.5.

               (d) Consents. All Consents required pursuant to Section 5.2(b).

          10.3 Covenants and Agreements Not-To-Compete. At the Closing, Buyer,
     Seller and the Shareholders, as the case may be, shall execute and deliver
     the following:

               (a) Shareholders' Noncompetition Agreement. Noncompetition
     Agreement by the Shareholders in the form of Exhibit L.

               (b) Seller's Noncompetition Agreement. Noncompetition Agreement
     of Seller in the form of Exhibit M.

          10.4 Leases. At the Closing, Buyer, Seller and the Shareholders, as
     the case may be, shall execute and deliver the Assignment and Assumption of
     Leases in the form of Exhibit N.

          10.5 Assumption Agreement. At the Closing, Buyer, Seller and the
     Shareholders, as the case may be, shall execute and deliver the Assumption
     Agreement in the form of Exhibit B.

          10.6 Shareholders' Consulting Agreements. Consulting Agreement by the
     Shareholders in the form of Exhibit O.

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<PAGE>

     11. Indemnification; Remedies.

          11.1 Survival; Right to Indemnification. All representations,
     warranties, covenants and obligations in this Agreement, the Schedules and
     any other certificate or document delivered pursuant to this Agreement
     shall survive the Closing and continue in full force and effect for a
     period of two (2) years from the Closing Date except warranties as to
     Authority (4.7, 5.2, and 5.6), Title to Properties (4.34), and Taxes (4.33)
     shall survive for the relevant statute of limitations plus 60 days as set
     forth in Section 11.6.

          11.2 Indemnification and Payment of Damages By Seller and the
     Shareholders. Seller and each Shareholder, jointly and severally, shall
     indemnify and hold Buyer and its directors, officers, shareholders or
     managers, officers, members, Affiliates and successors and assigns ("Buyer
     Indemnitees") harmless from, and shall pay to the Buyer Indemnitees the
     amount of, all damages, costs and expenses, including attorney's fees,
     arising, directly or indirectly, from or in connection with:

               (a) any breach of any representation or warranty made by Seller
     or the Shareholders in this Agreement;

               (b) any breach by Seller or the Shareholders of any covenant,
     agreement or obligation of Seller or the Shareholders in this Agreement;
     and

               (c) any product shipped or fabricated by, or any services
     provided by, Seller prior to the Closing.

          11.3 Remedies of Buyer Indemnities Not Exclusive. The indemnification
     remedies provided in Sections 11.2 are the exclusive remedies available to
     Buyer Indemnitees with respect to the transactions contemplated by this
     Agreement except to the extent Buyer Indemnities have rights or other
     remedies under another written agreement or instrument with Seller and/or
     any Shareholder.

          11.4 Indemnification By Buyer. Buyer and Guarantor, jointly and
     severally, shall indemnify and hold Seller and the Shareholders and their
     directors, officers, shareholders, Affiliates, successors and assigns
     ("Seller Indemnitees") harmless from, and will pay to the Seller
     Indemnitees the amount of, all damages, costs and expensing, including
     attorney's fees, arising directly or indirectly from or in connection with:

               (a) any breach of any representation or warranty made by Buyer in
     this Agreement;

               (b) any breach by Buyer of any covenant, agreement or obligation
     of Buyer in this Agreement; and

                                      -38-

<PAGE>

               (c) any claim, demand or Proceeding made or brought against
     Seller or the Shareholders resulting from Buyer's operation of the
     Acquisition Assets after the Closing Date.

          11.5 Remedies of Seller Indemnities Not Exclusive. The remedies
     provided in Section 11.4 are the exclusive remedies which are available to
     Seller Indemnitees with respect to the transactions contemplated by this
     Agreement except to the extent Seller Indemnities have rights or other
     remedies under another written agreement or instrument with Buyer and/or
     Guarantor.

          11.6 Time Limitations. Buyer and Seller must assert any claims within
     24 months after Closing, except Buyer and Seller must assert claims with
     respect to Sections 4.7 (Authority, etc.), 4.33 (Taxes), 4.34 (Title to
     Properties), 5.2 (Authority, etc.), and 5.6 (Guarantor's Authority, etc.)
     within the applicable period of the relevant statute of limitation plus 60
     days, and except Seller may assert any claims under the Note and/or the
     Guaranty within the applicable period of the relevant statute of
     limitations plus 60 days.

          11.7 Indemnity Claims.

               (a) Notification of Claims. If any claim ("Claim") is hereafter
     asserted by a party hereto as to which such party may be entitled to
     indemnification hereunder, such party ("Indemnitee") shall, in writing,
     notify the party required by the terms of this Agreement to indemnify the
     Indemnitee ("Indemnifying Party") thereof ("Claims Notice") within 30 days
     after (1) receipt of written notice of commencement of any third-party
     litigation against such Indemnitee; (2) receipt by such Indemnitee of
     written notice of any third-party claim pursuant to an invoice, notice of
     claim or assessment against such Indemnitee; receipt of an Order or notice
     from any Governmental Body; or (3) such Indemnitee becomes aware of the
     existence of any other event in respect of which indemnification may be
     sought from the Indemnifying Party. The Claims Notice shall describe the
     Claim and the specific facts and circumstances in reasonable detail, shall
     include a copy of the notice referred to in (1) and (2), above, shall
     indicate the amount, if known, or an estimate, if possible, of damages that
     have been or may be incurred or suffered, and shall state the name of the
     executive who shall represent the Indemnitee in the mediation provided for
     in Section 12.1.

               (b) Defense of Third Party Claim by Indemnifying Party. The
     Indemnifying Party may, at any time, elect to defend or compromise any
     Claim by a third party ("Third Party Claim"), at its own expense and in its
     sole discretion and by its own counsel, who shall be reasonably acceptable
     to the Indemnitee. The election by the Indemnifying Party to defend or
     compromise a claim shall constitute an avowal by the Indemnifying Party
     that the Indemnifying Party is obligated to indemnify the Indemnitee with
     respect to such claim. The Indemnitee may participate, at its own expense,
     in the defense of any Claim assumed by the Indemnifying Party. Without the
     approval of the Indemnitee, which approval shall not be unreasonably
     withheld or delayed, the Indemnifying Party shall not agree to any
     compromise of a Claim defended by the Indemnifying Party which would impose
     upon the Indemnitee injunctive or other equitable relief.

                                      -39-

<PAGE>

               (c) Assumption of Defense by Indemnitee. Notwithstanding the
     foregoing, if an Indemnitee determines in good faith and reasonable
     judgment that there is a reasonable probability that a Proceeding may
     adversely and materially affect it or its Affiliates other than as a result
     of monetary damages for which it would be entitled to indemnification under
     this Agreement, the Indemnitee may, by notice to the Indemnifying Party,
     assume the exclusive right to defend, compromise or settle such Proceeding,
     but the Indemnifying Party will not be bound by any determination of a
     Proceeding so defended or any compromise or settlement effected without its
     prior written consent (which may not be unreasonably withheld or delayed).

               (d) Defense of Claim by Indemnitee. If, within 30 days of the
     Indemnifying Party's receipt of a Claim Notice involving a Third Party
     Claim, the Indemnifying Party shall not have notified the Indemnitee of its
     election to assume the defense, the Indemnitee shall have the right to
     assume control of the defense or compromise of such Claim and the
     reasonable costs and expenses of such defense, including costs of
     investigation and reasonable attorneys' fees, shall be added to the Claim.
     If the Indemnitee assumes control of the defense or compromise of a Claim
     under this Section 11.7(d), the Indemnitee shall have the right to
     compromise such Claim without the consent of the Indemnifying Party.

               (e) Cooperation of Parties. The party assuming the defense of any
     Claim shall keep the other party reasonably informed at all times of the
     progress and development of the party's defense of and compromise efforts
     with respect to such Claim and shall furnish the other party with copies of
     all relevant pleading, correspondence and other papers. In addition, the
     parties to this Agreement shall cooperate with each other and make
     available to each other and their representatives all available relevant
     records or other materials required by them for their use in defending,
     compromising or contesting any Claim. The failure to timely notify the
     Indemnifying Party of the commencement of such actions in accordance with
     Section 11.7(a) shall relieve the Indemnifying Party from the obligation to
     indemnify under Section 11.2 or 11.4, as the case may be, but only to the
     extent the Indemnifying Party establishes by competent evidence that it or
     he is or has been materially and adversely prejudiced thereby.

          11.8 Right of Set-Off. If any Buyer Indemnitee is entitled to
     indemnification as provided in Section 11.2 following Buyer Indemnitee's
     compliance with all notice and other procedures required hereunder, if
     Seller does not fully indemnify Buyer as required hereunder, Buyer shall
     have the right, subject to the provisions of Section 11.9 to set-off the
     entire amount thereof against the amounts, if any, which Buyer shall owe
     Seller under Section 2.6 of the Purchase Price Adjustment or the Note;
     provided that, Buyer shall give Seller notice specifying in reasonable
     detail the basis for such set-off. Neither the exercise of, nor the failure
     to exercise, such right of set-off will constitute an election of remedies
     or limit Buyer in any manner in the enforcement of any other remedies that
     may be available to it.

          11.9 Limitations on Indemnification by Seller and the Shareholders.
     Notwithstanding the provisions of Section 11.2 to the contrary:

                                      -40-

<PAGE>

          (a)  Seller's and the Shareholders' Maximum Liability. Seller's and
the Shareholders' aggregate obligation to indemnify Buyer under this Section 11
shall not exceed an amount equal to 100% of the Purchase Price.

          (b)  Basket Amount. No Indemnifying Party shall be liable to any
Indemnitee for indemnification of any amounts pursuant to this Section 11 unless
the aggregate amount of all indemnifiable losses exceeds Ten Thousand Dollars
($10,000) (the "Basket") and only to the extent such losses exceed the Basket.

          (c)  Certain Defenses

               (1) If Buyer makes any claim for indemnification against Seller
     or the Shareholders arising under Section 4.35, Seller and the Shareholders
     shall be entitled to assert all defenses that constitute a defense to any
     action brought under section 10 of the Securities Exchange Act of 1934,
     section 12(2) of the Securities Act of 1933 and common law fraud.

               (2) Seller and the Shareholders shall be entitled to assert the
     defense to any Indemnity Claim that Buyer had actual knowledge of the facts
     giving rise to such Indemnity claim prior to the Closing Date. Seller and
     the Shareholders shall bear the burden of proving Buyer's actual knowledge
     by clear and convincing evidence.

          (d)  Actual Out-of-Pocket Loss. Any Buyer Indemnitees and any Seller
Indemnitees shall be entitled to indemnification hereunder only for actual
out-of-pocket loss arising from the claim for which indemnification is otherwise
required hereunder and not for any theoretical loss in value.

    11.10 Adjustments.

          (a)  Insurance Proceeds. Any claim for indemnity pursuant to this
Section 11 shall be reduced by any insurance proceeds actually received or
receivable by the Indemnitee. Any claim for which insurance is available and
normally covered in the ordinary course of business shall be submitted to such
insurance company for coverage.

          (b)  Purchase Price Adjustment. Any Purchase Price Adjustment under
Section 2.6 shall not give rise to a claim for indemnification by Buyer
Indemnitees against Seller and the Shareholders under Section 11.2 or to a claim
for indemnification by Seller Indemnitees against Buyer.

    11.11 Sole and Exclusive Remedy. The indemnification provided under this
Section 11 shall constitute the sole and exclusive remedy of Buyer, Seller and
the Shareholders subsequent to the Closing for any damages sustained by Buyer,
Seller or the Shareholders under this Agreement or otherwise other than damages
based upon fraud or fraudulent misrepresentation.

    12.   Miscellaneous Provisions.

                                      -41-

<PAGE>

    12.1  Arbitration.

          (a) If any dispute under this Agreement arises and the parties are
unable to resolve such dispute, the unresolved matter shall be resolved by
arbitration if a party requests arbitration by making a written demand for
arbitration to the other parties. The arbitration proceedings shall be conducted
in accordance with the CPR Rules for Non-Administered Arbitration of Business
Disputes, or if the parties so agree, the relevant rules of another arbitration
organization. In any case, regardless of any rules of the selected arbitration
organization to the contrary, only one arbitrator shall be used to decide the
outcome of the arbitration. Such arbitration shall be held in Cincinnati, Ohio,
or if the parties agree upon another location, that other location. The
arbitration shall be governed by the United States Arbitration Act, 9 U.S.C.
(S)(S)1-16.

          (b) The parties shall have the right of discovery in accordance with
the Federal Rules of Civil Procedure except that discovery may commence
immediately upon the service of the demand for arbitration. A party's
unreasonable refusal to cooperate in discovery shall be deemed to be refusal to
proceed with arbitration and, until an arbitrator has been designated, the
parties may enforce their rights (including the right of discovery) in the
courts. Such enforcement in the courts shall not constitute a waiver of a
party's right to arbitration. Upon his or her appointment, the arbitrator shall
have the power to enforce the parties' discovery rights.

          (c) The parties shall be bound by the decision of the arbitrator and
accept his or her decision as the final determination of the matter in dispute.
The prevailing party shall be entitled to enter a judgment in any court upon any
arbitration award made pursuant to this Section 12.1. The arbitrator or
arbitrators shall award the costs and expenses of the arbitration, including
reasonable attorneys' fees, disbursements, arbitration expenses, arbitrators'
fees and the administrative fee of the arbitration organization, to the
prevailing party as shall be determined by the arbitrator.

    12.2  Amendment; Waiver. This Agreement, and the Exhibits and Schedules
hereto, may be amended, modified or superseded only by a written instrument
signed by all of the parties to this Agreement. No party shall be deemed to have
waived compliance by another party of any provision of this Agreement unless
such waiver is contained in a written instrument signed by the waiving party and
no waiver that may be given by a party will be applicable except in the specific
instance for which it is given. The failure of any party to enforce at any time
any of the provisions of this Agreement or to exercise any right or option
contained in this Agreement or to require at any time performance of any of the
provisions of this Agreement, by any of the other parties shall not be construed
to be a waiver of such provisions and shall not affect the validity of this
Agreement or any of its provisions or the right of such party thereafter to
enforce each provision of this Agreement. No course of dealing shall operate as
a waiver or modification of any provision of this Agreement or otherwise
prejudice such party's rights, powers and remedies.

                                      -42-

<PAGE>

     12.3 Limited Assignment; Binding Effect. No party shall assign any of its
rights or obligations under this Agreement without obtaining the prior consent
of the other parties to this Agreement, except that a party may assign any of
its rights and obligations under this Agreement without the prior consent of
other parties to any wholly-owned affiliate of the assigning party. No assigning
party or the Guarantor shall be relieved of its obligations arising under this
Agreement. Subject to the foregoing, all the provisions of this Agreement shall
be binding upon and shall inure to the benefit of and be enforceable by the
parties to this Agreement and their respective heirs, legal representatives,
successors and assigns.

     12.4 Confidentiality of Certain Information.

          (a)  Non-Disclosure. The parties and their respective agents and
employees shall hold and keep confidential all information which is proprietary
in nature and non-public or confidential, in whole or in part (the "Confidential
Information") which any of them may receive from any other party concerning such
other party. Failure to mark any of the Confidential Information as non-public,
proprietary or confidential shall not affect its status as Confidential
Information under the terms of this Agreement. Confidential Information shall
not include any information in the possession of the receiving party (1) that is
developed by the such party in the Ordinary Course of Business without reference
to and independent of any Confidential Information; (2) is learned from a third
party not under any duty of confidence to the disclosing party; or (3) becomes
part of the public domain through no fault of the receiving party or any of its
Affiliates, directors, officers, employees, agents, shareholders or other of its
representatives.

          (b)  Non-Use. None of the parties nor their respective directors,
officers, employees, counsel, agents or other representatives, without the prior
consent of the disclosing party, disclose or use any such Confidential
Information, in whole or in part, except in connection with the performance of
the transactions described in this Agreement. Unless otherwise required by law,
none of the parties shall disclose any Confidential Information acquired as a
result of this Agreement to any Person or entity, other than its respective
directors, officers, employees, counsel, agents and other representatives and
such other third parties (such as bankers and lessors) with whom it must
communicate to consummate the transactions described by this Agreement, all of
whom must agree to keep the Confidential Information confidential. If the
Closing does not occur, each party will destroy or return, as requested by the
disclosing party, to the disclosing party all copies of documents that contain
that party's Confidential Information.

     12.5 Confidentiality of Agreement. Unless otherwise required by law, no
party shall disclose either the terms or existence of this Agreement to any
Person other than a party's counsel and its other representatives or such other
third parties with whom it must communicate to consummate the transactions
described in this Agreement.

     12.6 Construction and Interpretation of Agreement.

                                      -43-

<PAGE>

         (a) Section titles or captions in this Agreement are included for
purposes of convenience only and shall not be considered a part of the Agreement
in construing or interpreting any of its provisions. All references in this
Agreement to Sections shall refer to Sections of this Agreement unless the
context clearly otherwise requires.

         (b) When used in this Agreement, the word "including" shall have its
normal common meaning and any list of items that may follow such word shall not
be deemed to represent a complete list of the contents of the referent of the
subject.

         (c) The parties have participated jointly in the negotiation and
drafting of this Agreement. If any ambiguity or question of intent or
interpretation arises, no presumption or burden of proof shall arise favoring or
disfavoring any party by virtue of the authorship of any of the provisions of
this Agreement.

         (d) Unless the context otherwise requires, when used in this Agreement,
the singular shall include the plural, the plural shall include the singular and
all nouns, pronouns and any variations thereof shall be deemed to refer to the
masculine, feminine or neuter, as the identity of the Person or Persons may
require.

         (e) The parties do not intend that this Agreement shall confer on any
third party any right, remedy or benefit or that any third party shall have any
right to enforce any provision of this Agreement.

   12.7  Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original copy of this
Agreement and all of which, when taken together, shall be deemed to constitute
one and the same agreement.

   12.8  Cumulative Remedies; Specific Performance. No right or remedy conferred
upon or reserved to any of the parties under the terms of this Agreement is
intended to be, nor shall it be deemed, exclusive of any other right or remedy
provided in this Agreement or by law or equity, but each shall be cumulative of
every other right or remedy. The parties understand and acknowledge that a party
may be damaged irreparably by reason of a failure of another party to perform
any obligation under this Agreement. Accordingly, if any party attempts to
enforce the provisions of this Agreement by specific performance (including
preliminary or permanent injunctive relief), the party against whom such action
or Proceeding is brought waives the claim or defense that the other party has an
adequate remedy at law.

   12.9  Entire Agreement. This Agreement, together with the Exhibits and
Schedules hereto, embodies the entire agreement and understanding of the parties
related to its subject matter and supersedes all prior proposals,
understandings, agreements, correspondence, arrangements and contemporaneous
oral agreements relating to subject matter of this Agreement. No representation,

                                      -44-

<PAGE>

promise, inducement or statement of intention has been made by any party which
has not been embodied in this Agreement.

    12.10 Exclusive Forum. Any action to enforce any provision of this Agreement
shall be instituted exclusively in the United States District Court for the
Southern District of Ohio or, if such Court does not have jurisdiction to
adjudicate such action, in the courts of the State of Ohio located in Hamilton
County, Ohio. The parties irrevocably and unconditionally waive, to the fullest
extent permitted by law, and shall not plead any objection that they may now or
hereafter have to the jurisdiction of such courts over the parties, the laying
of venue or the convenience of the forum of any action related to this Agreement
that is brought in the United States District Court for the Southern District of
Ohio or in the Courts of the State of Ohio located in Hamilton County, Ohio.

    12.11 Exhibits and Schedules. All Exhibits and Schedules to this Agreement,
if any, shall constitute part of this Agreement and shall be deemed to be
incorporated in this Agreement by reference and made a part of this Agreement as
if set out in full at the point where first mentioned. The parties intend that
each representation, warranty, covenant and obligation contained in this
Agreement shall have independent significance. If any party has breached any
representation, warranty, covenant or obligation contained in this Agreement in
any respect, merely because there exists another representation, warranty,
covenant or obligation relating to the same subject matter (regardless of the
relative levels of specificity) which the party has not breached shall not
detract from or mitigate the party's breach of the first representation,
warranty, covenant or obligation, except where the other party had actual
knowledge of the subject matter that was not disclosed as to a particular
representation or warranty. Nothing in the Exhibits or Schedules shall be deemed
adequate to disclose an exception to a representation, warranty or covenant made
in this Agreement unless there is a specific Schedule referenced for identifying
an exception to a particular representation, warranty or covenant, and such
Schedule identifies the exception with particularly and describes the relevant
facts in detail.

    12.12 Expenses. Except as otherwise expressly provided for in this
Agreement, each party will bear its own expenses incurred in connection with the
preparation, execution and performance of its obligations under this Agreement,
including all fees and expenses of agents, representatives, counsel and
accountants.

    12.13 Further Assurances. Each party shall execute and deliver such
additional documents or take such additional actions as may be requested by
another party to this Agreement if such requested document or action is
reasonably necessary to effect the transactions described in this Agreement.

    12.14 Governing Law. This Agreement shall be governed by, and shall be
construed and enforced in accordance with, the laws of the State of Ohio,
without giving effect to any conflict of law rule or principle of such state.

                                      -45-

<PAGE>

    12.15 Independent Contractor Relationship. Regarding all matters relating to
this Agreement, this Agreement creates an independent contractor relationship
among the parties. Nothing contained in this Agreement shall be construed to (a)
give any party the power to direct and control the day-today activities of the
other; (b) constitute the parties as partners, joint venturers, co-owners or
otherwise as participants in a joint or common undertaking; or (c) constitute
any party, its agents or employees as employees of any other party or grant any
of them the power or authority to act for, bind or otherwise create or assume
any obligation on behalf of any of the other parties for any purpose whatever.

    12.16 No Public Announcement. No party shall make any press release or other
public announcement regarding this Agreement or the transactions described in
this Agreement, unless such party is obligated by law or the rules of any stock
exchange upon which its shares are traded to make such a disclosure. When a
party determines that it is obligated by law or the rules of a stock exchange to
make such a disclosure, it shall notify all of the other parties prior to such
disclosure and all of the parties shall cooperate to cause a mutually agreeable
release or announcement to be issued.

    12.17 No Third Party Beneficiaries. This Agreement is not intended to, and
shall not be construed to, confer upon any third Person any right, remedy or
benefit nor is it intended to be enforceable by any third Person, and shall only
be enforceable by the parties hereto, and their respective successors, permitted
assigns, heirs and personal representatives.

    12.18 Notices. All notices, requests, consents, approvals, waivers, demands
and other communications required or permitted to be given or made under this
Agreement shall be in writing and shall be deemed delivered to the parties on
the (a) date of personal delivery or confirmed transmission by facsimile
transmission; (b) second Business Day following the date of delivery to a
nationally recognized overnight courier service; or (c) third Business Day
following the date of deposit in the United States Mail, postage prepaid, by
certified mail, in each case, addressed as follows, or to such other address,
Person or entity as any party may designate by notice to the others in
accordance herewith:

                         If to Buyer: MCC-Quick Pak, LLC
                                      425 Walnut Street
                                      Suite 1300 Cincinnati, OH 45202
                                      Attention: Dawn H. Bertsche

                                      -46-

<PAGE>

                               With a copy to: Greenebaum Doll & McDonald pllc
                                               2800 Chemed Center
                                               255 East Fifth Street
                                               Cincinnati, OH 45202
                                               Attention: C. Christopher Muth

                                 If to Seller: 3656 Fawnrun Drive
                                               Cincinnati, OH 45241
                                               Attention: Deborah R. Buhayar

                               With a copy to: Bradley G. Haas, Esq.
                                               Katz, Teller, Brant & Hild
                                               255 East Fifth Street, Suite 2400
                                               Cincinnati, OH 45202

                       If to the Shareholders: 3656 Fawnrun Drive
                                               Cincinnati, OH 45241
                                               Attention: Deboarah R. Buhayar

    12.19 Recovery of Expenses by Prevailing Party. The party prevailing in any
civil action, arbitration or other Proceeding shall be entitled to recover from
the nonprevailing party, in addition to any damages the prevailing party may
have been awarded, all reasonable expenses that the prevailing party may have
incurred in connection with such Proceeding, including accounting fees,
attorneys' fees and expert witnesses' fees.

    12.20 Severability of Provisions. If a court in any Proceeding holds any
provision of this Agreement or its application to any Person or circumstance
invalid, illegal or unenforceable, the remainder of this Agreement, or the
application of such provision to Persons or circumstances other than those to
which it was held to be invalid, illegal or unenforceable, shall not be affected
and shall be valid, legal and enforceable to the fullest extent permitted by
law, but only if and to the extent such enforcement would not materially and
adversely frustrate the parties' essential objectives as expressed in this
Agreement. Furthermore, in lieu of any such invalid or unenforceable term or
provision, the parties intend that the court add to this Agreement a provision
as similar in terms to such invalid or unenforceable provision as may be valid
and enforceable, so as to effect the original intent of the parties to the
greatest extent possible.

    12.21 Time of Essence. Time is of the essence to the performance of the
obligations set forth in this Agreement.

                            [SIGNATURE PAGES FOLLOW]

                                      -47-

<PAGE>

     IN WITNESS WHEREOF, the parties have entered into this Agreement as of the
date first written above.

                                      MCC-Quick Pak, LLC

                                      By: /s/ Dawn H. Bertsche
                                          --------------------
                                      Title:  Vice President-Finance, Chief
                                              Financial Officer and Secretary
                                                          ("Buyer")

                                      Quick Pak, Inc.

                                      By: /s/ Alexander J. Buhayar
                                          ------------------------
                                      Title:  Vice President
                                                         ("Seller")

                                      /s/ Alexander J. Buhayar
                                      ------------------------------------------
                                      Alexander J. Buhayar
                                                    ("Shareholder")

                                      /s/ Deborah R. Buhayar
                                      ------------------------------------------
                                      Deborah R. Buhayar
                                                    ("Shareholder")

                                      Multi-Color Corporation

                                      By: /s/ Dawn H. Bertsche
                                      Title:  Vice President-Finance, Chief
                                              Financial Officer and Secretary
                                                     ("Guarantor")

                   Signature Page of Asset Purchase Agreement

<PAGE>

                            Appendix of Defined Terms

"Acquisition Assets" has the meaning set forth in Section 2.1.

"Acquisition Balance Sheet" has the meaning set forth in Section 4.2.

"Adverse Effect" means any condition, change or event pertaining to the
customers, employees, or the business operations of the Seller (and excluding
general economic conditions in the United States generally) that would
materially and adversely affect the Business, operations, properties (including
intangible properties) or financial condition of Seller taken as a whole.

"Affiliate" means (1) a Person that, directly or indirectly, through one or more
intermediaries, controls or is controlled by, or is controlled by a Person that
controls, such Person; (2) any trust or estate in which such Person has a
beneficial interest or as to which such Person serves as a trustee or in another
fiduciary capacity; or (3) any spouse, parent or lineal descendent of such
Person. As used in this definition, "control" means possession, directly or
indirectly, of the power to direct or cause the direction of management or
policies, whether through ownership of securities, partnership or other
ownership interests, by contract or otherwise.

"Agreement" means this Agreement, the Exhibits and the Schedules.

"Assumed Liabilities" has the meaning set forth in Section 2.3.

"Assumption Agreement" has the meaning set forth in Section 2.3.

"Basket" has the meaning set forth in Section 11.9(b).

"Benefit Plans" has the meaning set forth in Section 4.14(a).

"Best Efforts" means taking or causing to be taken, any action, and to do, or
cause to be done, things necessary, proper or advisable under applicable laws
and regulations, each case in the exercise of commercially reasonable judgment
and diligence.

"Books and Records" has the meaning set forth in Section 4.8.

"Business" has the meaning set forth in the Recitals to this Agreement.

"Business Day" means a day of the year on which banks are not authorized to be
closed in the City of New York.

"Buyer" has the meaning set forth in the preamble to this Agreement.

"Buyer Ancillary Documents" has the meaning set forth in Section 5.2(a).

                                      -49-

<PAGE>

"Buyer Indemnitees" has the meaning set forth in Section 11.2.

"Buyer's Consents" has the meaning set forth in Section 5.2(b).

"CERCLA" means the Comprehensive Environmental Response, Compensation and
Liability Act of 1980.

"Claim" has the meaning set forth in Section 11.7.

"Claims Notice" has the meaning set forth in Section 11.7(a).

"Cleanup" has the meaning set forth in the definition of Environmental, Health
and Safety Liabilities.

"Closing" has the meaning set forth in Section 3.

"Closing Date" has the meaning set forth in Section 3.

"Closing Balance Sheet" has the meaning set forth in Section 2.7.

"Compensation Plans" has the meaning set forth in Section 4.14(a).

"Computers" has the meaning set forth in Section 4.10(a).

"Confidential Information" has the meaning set forth in Section 12.4(a).

"Contracts" has the meaning set forth in Section 2.1(g).

"Data and Records" has the meaning set forth in Section 2.1(h).

"Dollars"; "$"  means lawful currency of the United States of America.

"Effective Date" has the meaning set forth in Section 3.

"Encumbrance" means any charge, claim, community property, interest, condition,
equitable interest, Lien, option, pledge, right of refusal, security interest or
restriction of any kind, including any restriction on use, voting, transfer,
receipt of income or exercise of any other attribute of ownership.

"Environment" means soil, land surface or subsurface strata, surface waters
(including navigable waters, ocean waters, streams, ponds, drainage basins and
wetlands), groundwaters, drinking water

<PAGE>

supply, stream sediments, ambient air (including indoor air), plant and animal
life and any other environmental medium or natural resource.

"Environmental, Health and Safety Liabilities" means any cost, damages, expense,
liability, obligation or other responsibility arising from or under
Environmental Law or Occupational Safety and Health Law and consisting of or
relating to:

     (1) any environmental, health or safety matters or conditions (including
on-site or off-site contamination, occupational safety and health and regulation
of chemical substances or products);

     (2) fines, penalties, judgments, awards, settlements, legal or
administrative Proceedings, damages, losses, claims, demands and response and
investigative, remedial or inspection costs and expenses arising under
Environmental Law or Occupational Safety and Health Law;

     (3) financial responsibility under Environmental Law or Occupational Safety
and Health Law for Cleanup costs or corrective action, including any
investigation, Cleanup, removal, containment or other remediation or response
actions ("Cleanup") required by applicable Environmental Law or Occupational
Safety and Health Law (whether or not such Cleanup has been required or
requested by any Governmental Body or any other Person) and for any natural
resource damages; or

     (4) any other compliance, corrective, investigative or remedial measures
required under Environmental Law or Occupational Safety and Health Law.

     The terms "removal," "remedial" and "response action" include the types of
activities covered by CERCLA and any equivalent state law.

"Environmental Law" means any Legal Requirement that requires or relates to:

     (1) advising appropriate authorities, employees and the public of intended
or actual Releases of pollutants or hazardous substances or materials,
violations of discharge limits or other prohibitions and of the commencements of
activities, such as resource extraction or construction, that could have
significant impact on the Environment;

     (2) preventing or reducing to acceptable levels the Release of pollutants
or hazardous substances or materials into the Environment;

     (3) reducing the quantities, preventing the Release or minimizing the
hazardous characteristics of wastes that are generated;

     (4) assuring that products are designed, formulated, packaged and used so
that they do not present unreasonable risks to human health or the Environment
when used or disposed of;

     (5) protecting resources, species or ecological amenities;

<PAGE>

     (6) reducing to acceptable levels the risks inherent in the transportation
of hazardous substances, pollutants, oil or other potentially harmful
substances;

     (7) cleaning up pollutants that have been Released, preventing the threat
of Release or paying the costs of such Cleanup or prevention;

     (8) making responsible parties pay private parties, or groups of them, for
damages done to their health or the Environment or permitting self-appointed
representatives of the public interest to recover for injuries done to public
assets; or

     (9) Occupational Safety and Health Law.

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

"Estimated Purchase Price Adjustment" has the meaning set forth in Section 2.6.

"Excluded Assets" has the meaning set forth in Section 2.2.

"Facilities" means any real property, leaseholds or other real property
interests owned by Seller and any buildings, plants, structures or equipment,
that are owned or leased as of the Closing Date.

"GAAP" means Generally Accepted Accounting Principals.

"Governmental Authorizations" means any approval, consent, license, permit,
waiver or other authorization issued, granted, given or otherwise made available
by or under the authority of any Governmental Body or pursuant to any Legal
Requirement.

"Governmental Body" means any (1) nation, state, county, city, town, village,
district or other jurisdiction of any nature; (2) federal, state, local,
municipal, foreign or other governmental organization or body; (3) governmental
or quasi-governmental authority of any nature (including any governmental
agency, branch, department, official or entity and any court or other tribunal);
(4) multinational organization or body; or (5) body exercising, or entitled to
exercise, any administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power of any nature.

"Hazardous Activity" means the distribution, generation, handling, importing,
management, manufacturing, processing, production, refinement, Release, storage,
transfer, transportation, treatment or use (including any withdrawal or other
use of groundwater) of Hazardous Materials in, on, under, about or from the
Facilities or any part thereof into the Environment and any other act, business,
operation or thing that materially increases the danger, or risk of danger, or
poses an unreasonable risk of harm to Persons or property on or off the
Facilities, or that materially affects the value of the Facilities or Seller.

                                       A-2

<PAGE>

"Hazardous Materials" means any waste or other substance that is listed,
defined, designated or classified as, or otherwise determined to be, hazardous,
radioactive, toxic or a pollutant or a contaminant under or pursuant to any
Environmental Law, including any admixture or solution thereof and specifically
including petroleum and all derivatives thereof or synthetic substitutes
therefor and asbestos or asbestos-containing materials.

"Indemnitee" has the meaning set forth in Section 11.7(a).

"Indemnifying Party" has the meaning set forth in Section 11.7(a).

"Insurance Proceeds" has the meaning set forth in Section 2.1(k).

"Intellectual Property" has the meaning set forth in Section 4.18(a).

"Inventories" has the meaning set forth in Section 2.1(d).

"IRC" means the Internal Revenue Code of 1986, as amended.

"IRS" means the Internal Revenue Service.

"Knowledge" means, with respect to Buyer, the actual "Knowledge" (without any
duty of independent investigation) of those persons holding executive offices of
Buyer. With respect to the Shareholders and those persons holding executive
offices of Seller, the Shareholders and such persons holding executive offices
of Seller shall be deemed to have "Knowledge" of a particular fact or matter if
such individual is actually aware of such fact or other matter. With respect to
the Seller, the Seller shall be deemed to have "Knowledge" as to the "Knowledge"
of each Shareholder.

"Legal Requirement" means any applicable federal, state, local, municipal,
foreign, international, multinational or other administrative Order,
constitution, law, ordinance, principle of common law, regulation, statute or
treaty, the failure to comply with which would have an Adverse Effect.

"Liabilities" means any claim, obligation, expense or cost whether fixed,
contingent, matured, unmatured, known or unknown, accrued or unaccrued.

"Lien" means any lien, claim, Encumbrance, security interest, option, mortgage,
mortgage note, deed of trust, easement, license, leasehold interest, right of
way, title defect, charge, restriction or right of any third party of any kind
upon any properties or assets in which Seller has an interest.

"Long Term Debt" has the meaning set forth in Section 2.6.

"Marks" has the meaning set forth in Section 4.18(d).

                                       A-3

<PAGE>

"Multiemployer Plans" has the meaning set forth in Section 4.14(a).

"Note" has the meaning set forth in Section 2.5.

"Occupational Safety and Health Law" means any Legal Requirement designed to
provide safe and healthful working conditions and to reduce occupational safety
and health hazards and any program, whether governmental or private (including
those promulgated or sponsored by industry associations and insurance
companies), designed to provide safe and healthful working conditions.

"Order" means any award, decision, injunction, judgment, unit, decree, subpoena
or verdict entered, issued, as made or rendered by any court administration
agency or other Governmental Body or by any arbitrator.

"Ordinary Course of Business" means conduct occurring in the usual and customary
operation of the Business.

"Organizational Documents" for each party means a recent good standing
certificate issued by each Secretary of State where such party is qualified to
do business and (1) the charter, articles of incorporation and by laws; or (2)
the articles of organization and operating agreement.

"Other Assets" has the meaning set forth in Section 2.1(o).

"Patents" has the meaning set forth in Section 4.18(c).

"Pension Plans" has the meaning set forth in Section 4.14(a).

"Permits" has the meaning set forth in Section 4.6.

"Person" means any individual, corporation, partnership, firm, joint venture,
association, joint-stock company, trust, unincorporated organization,
governmental or regulatory body or other entity.

"Personal Property" has the meaning set forth in Section 2.1(c).

"Prepaid Expenses" has the meaning set forth in Section 2.1(n).

"Proceeding" means any action, arbitration, audit, hearing, investigation,
litigation or suit (whether civil, criminal, administrative, investigative or
informal) commenced, brought, conducted or heard by or before, or otherwise
involving, a Governmental Body or arbitrator.

"Purchase Price" has the meaning set forth in Section 2.5.

"Purchase Price Adjustment" has the meaning set forth in Section 2.6.

                                       A-4

<PAGE>

"Purchase Price Adjustment Notice" has the meaning set forth in Section 2.7.

"Real Property" has the meaning set forth in Section 2.1(b).

"Receivables" has the meaning set forth in Section 2.1(e).

"Related Person" has the meaning set forth in section 267(b) of the IRC.

"Release" means any spilling, leaking, emitting, discharging, depositing,
escaping, leaching, dumping or other releasing into the Environment, whether
intentional or unintentional.

"Retained Liabilities" has the meaning set forth in Section 2.4.

"Schedules" has the meaning set forth in Section 12.11.

"Seller" has the meaning set forth in the preamble to this Agreement.

"Seller Agreements" has the meaning set forth in Section 4.30.

"Seller Ancillary Documents" has the meaning set forth in Section 4.7(a).

"Seller Financial Statements" has the meaning set forth in Section 4.2.

"Seller Indemnitees" has the meaning set forth in Section 11.4.

"Seller's Consents" has the meaning set forth in Section 4.7(b).

"Shareholders" has the meaning set forth in the preamble to this Agreement.

"Shareholders' Agent" has the meaning set forth in the preamble to this
Agreement.

"Software" has the meaning set forth in Section 4.10(b).

"Tax" means any taxes, however denominated, including income tax, capital gains
tax, value-added tax, sales tax, property tax, gift tax, estate tax, capital
stock, franchise, profits, withholding, social security (or similar),
unemployment, disability, sales, use, transfer, registration, alternative or
add-on minimum, estimated or other tax of any kind whatsoever and any related
charge or amount (including any fine, penalty, interest or addition to tax),
imposed, assessed or collected by or under the authority of any Governmental
Body or payable pursuant to any tax-sharing agreement or any other arrangement
relating to the sharing or payment of any such tax, levy, assessment, tariff,
duty, deficiency or fee, including any interest, penalty or addition thereto,
whether disputed or not.

                                       A-5

<PAGE>

"Tax Returns" means any return (including any information return), report,
declaration of estimated Taxes, statement, schedule, notice, form or other
document or information filed with or submitted to, or required to be filed with
or submitted to, any Governmental Body in connection with the determination,
assessment, collection or payment of any Tax or in connection with the
administration, implementation or enforcement of or compliance with any Legal
Requirement relating to any Tax.

"Threatened" means any demand or statement made in writing or any notice given
in writing asserting a claim, Proceeding, dispute, action or other matter.

"Third Party Claim" has the meaning set forth in Section 11.7(b).

"Trade Secrets" has the meaning set forth in Section 4.18(f).

"VEBA" has the meaning set forth in Section 4.14(a).

"Welfare Plans" has the meaning set forth in Section 4.14(a).

"Working Capital" means the accounts comprising the following line items on the
Acquisition Balance Sheet: Accounts Receivable, Net; Inventory supplies, Prepaid
Expenses and Rent, Accounts Payable, Receiving Accrual and Accrued Workmen's
Compensation, Accrued Personal Property Tax, Accrued Payroll and all other
current liabilities incurred in the ordinary course of business as of the
Closing Date. Inventory Supplies ordered but not yet received shall be included
if the account payable for such Inventory Supplies has been included.

                                       A-6<PAGE>

                                                                   Exhibit 4.3.1

     FOURTEENTH SUPPLEMENTAL INDENTURE, dated as of June 17, 2002, between The
Kroger Co., a corporation duly organized and existing under the laws of the
State of Ohio (herein called the "Company"), having its principal office at 1014
Vine Street, Cincinnati, Ohio 45202, the Guarantors listed on the signature
pages and Schedule I hereto (each, a "Guarantor") and U.S. Bank, N.A. (formerly
known as Firstar Bank, N.A.), a banking corporation duly organized and existing
under the laws of the State of Ohio, as Trustee (herein called the "Trustee").

                             RECITALS OF THE COMPANY

     The Company has heretofore executed and delivered to the Trustee an
Indenture dated as of June 25, 1999 (the "Indenture"), providing for the
issuance from time to time of the Company's unsecured debentures, notes or other
evidences of indebtedness (herein and therein called the "Securities"), to be
issued in one or more series as in the Indenture provided.

     Section 201 of the Indenture permits the form of the Securities of any
series to be established pursuant to an indenture supplemental to the Indenture.

     Section 301 of the Indenture permits the terms of the Securities of any
series to be established in an indenture supplemental to the Indenture.

     Section 901(7) of the Indenture provides that, without the consent of any
Holders, the Company, when authorized by a Board Resolution, and the Trustee, at
any time and from time to time, may enter into one or more indentures
supplemental to the Indenture for the purpose of establishing the form or terms
of Securities of any series as permitted by Sections 201 and 301 of the
Indenture.

     Each of the Guarantors has duly authorized the issuance of a guarantee of
the Securities, as set forth herein, and to provide therefor, each of the
Guarantors has duly authorized the execution and delivery of this Fourteenth
Supplemental Indenture.

     The Company and the Guarantors, pursuant to the foregoing authority,
propose in and by this Fourteenth Supplemental Indenture to establish the terms
and form of the Securities of a new series and to amend and supplement the
Indenture in certain respects with respect to the Securities of such series.

<PAGE>

               All things necessary to make this Fourteenth Supplemental
Indenture a valid agreement of the Company and the Guarantors, and a valid
amendment of and supplement to the Indenture, have been done.

               NOW, THEREFORE, THIS FOURTEENTH SUPPLEMENTAL INDENTURE
WITNESSETH:

               For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually agreed, for the equal and
proportionate benefit of all Holders of the Securities of the series to be
created hereby, as follows:

                                   ARTICLE ONE

                                   DEFINITIONS

Section 101.   Definitions.

               (a) For all purposes of this Fourteenth Supplemental Indenture:

                       (1) Capitalized terms used herein without definition
               shall have the meanings specified in the Indenture;

                       (2) All references herein to Articles and Sections,
               unless otherwise specified, refer to the corresponding Articles
               and Sections of this Fourteenth Supplemental Indenture and, where
               so specified, to the Articles and Sections of the Indenture as
               supplemented by this Fourteenth Supplemental Indenture; and

                       (3) The terms "hereof", "herein", "hereby", "hereto",
               "hereunder" and "herewith" refer to this Fourteenth Supplemental
               Indenture.

                  (b) For all purposes of the Indenture and this Fourteenth
Supplemental Indenture, with respect to the Securities of the series created
hereby, except as otherwise expressly provided or unless the context otherwise
requires:

                       "Adjusted Treasury Rate" means, with respect to any
               Redemption Date, the rate per annum equal to the semi-annual
               equivalent yield to maturity of the Comparable Treasury Issue,
               assuming a price for the Comparable Treasury Issue (expressed as
               a percentage of its principal amount) equal to the Comparable
               Treasury Price for such Redemption Date.

                       "Attributable Debt" means, in connection with a Sale and
               Lease-Back Transaction, as of any particular time, the aggregate
               of present values (discounted at a rate per annum equal to the
               interest

                                      -2-

<PAGE>

               rate borne by the Securities of the series created by this
               Fourteenth Supplemental Indenture) of the obligations of the
               Company or any Restricted Subsidiary for net rental payments
               during the remaining primary term of the applicable lease,
               calculated in accordance with generally accepted accounting
               principles. The term "net rental payments" under any lease for
               any period shall mean the sum of the rental and other payments
               required to be paid in such period by the lessee thereunder, not
               including, however, any amounts required to be paid by such
               lessee (whether or not designated as rental or additional rental)
               on account of maintenance and repairs, reconstruction, insurance,
               taxes, assessments, water rates, operating and labor costs or
               similar charges required to be paid by such lessee thereunder or
               any amounts required to be paid by such lessee thereunder
               contingent upon the amount of sales, maintenance and repairs,
               reconstruction, insurance, taxes, assessments, water rates or
               similar charges.

                       "Business Day" means any day other than a Saturday or
               Sunday or a day on which banking institutions in New York City or
               Cincinnati, Ohio are authorized or obligated by law or executive
               order to close.

                       "Capital Lease" means any lease of property which, in
               accordance with generally accepted accounting principles, should
               be capitalized on the lessee's balance sheet or for which the
               amount of the asset and liability thereunder as if so capitalized
               should be disclosed in a note to such balance sheet; and
               "Capitalized Lease Obligation" means the amount of the liability
               which should be so capitalized or disclosed.

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

                       "Comparable Treasury Price" means, with respect to any
               Redemption Date, (i) the average of the Reference Treasury Dealer
               Quotations, after excluding the highest and lowest such Reference
               Treasury Dealer Quotations for such Redemption Date, or (ii) if
               the Trustee obtains fewer than three such Reference Treasury
               Dealer Quotations, the average of all such Quotations.

                                      -3-

<PAGE>

                       "Consolidated Net Tangible Assets" means, for the Company
               and its Subsidiaries on a consolidated basis determined in
               accordance with generally accepted accounting principles, the
               aggregate amounts of assets (less depreciation and valuation
               reserves and other reserves and items deductible from gross book
               value of specific asset accounts under generally accepted
               accounting principles) which under generally accepted accounting
               principles would be included on a balance sheet after deducting
               therefrom (a) all liability items except deferred income taxes,
               commercial paper, short-term bank Indebtedness, Funded
               Indebtedness, other long-term liabilities and shareholders'
               equity and (b) all goodwill, trade names, trademarks, patents,
               unamortized debt discount and expense and other like intangibles,
               which in each case would be so included on such balance sheet.

                       "Credit Facility" means any credit agreement, loan
               agreement or credit facility, whether syndicated or not,
               involving the extension of credit by banks or other credit
               institutions, entered into by the Company or Fred Meyer, Inc. and
               outstanding on the date of this Fourteenth Supplemental
               Indenture, and any refinancing or other restructuring of such
               agreement or facility.

                       "Funded Indebtedness" means any Indebtedness maturing by
               its terms more than one year from the date of the determination
               thereof, including (i) any Indebtedness having a maturity of 12
               months or less but by its terms renewable or extendible at the
               option of the obligor to a date later than 12 months from the
               date of the determination thereof and (ii) rental obligations
               payable more than 12 months from the date of determination
               thereof under Capital Leases (such rental obligations to be
               included as Funded Indebtedness at the amount so capitalized at
               the date of such computation and to be included for the purposes
               of the definition of Consolidated Net Tangible Assets both as an
               asset and as Funded Indebtedness at the amount so capitalized).

                       "Non-Restricted Subsidiary" means any Subsidiary that the
               Company's Board of Directors has in good faith declared pursuant
               to a written resolution not to be of material importance, either
               singly or together with all other Non-Restricted Subsidiaries, to
               the business of the Company and its consolidated Subsidiaries
               taken as a whole.

                       "Operating Assets" means all merchandise inventories,
               furniture, fixtures and equipment (including all transportation
               and

                                      -4-

<PAGE>

               warehousing equipment but excluding office equipment and data
               processing equipment) owned or leased pursuant to Capital Leases
               by the Company or a Restricted Subsidiary.

                       "Operating Property" means all real property and
               improvements thereon owned or leased pursuant to Capital Leases
               by the Company or a Restricted Subsidiary and constituting,
               without limitation, any store, warehouse, service center or
               distribution center wherever located, provided that such term
               shall not include any store, warehouse, service center or
               distribution center which the Company's Board of Directors
               declares by written resolution not to be of material importance
               to the business of the Company and its Restricted Subsidiaries.

                       "Quotation Agent" means the Reference Treasury Dealer
               appointed by the Company.

                       "Reference Treasury Dealer" means (i) Salomon Smith
               Barney Inc. and its successors; provided, however, that if the
               foregoing shall cease to be a primary U.S. Government securities
               dealer in New York City (a "Primary Treasury Dealer"), the
               Company shall substitute therefor another Primary Treasury
               Dealer, and (ii) any other Primary Treasury Dealer selected by
               the Company.

                       "Reference Treasury Dealer Quotations" means, with
               respect to each Reference Treasury Dealer and any Redemption
               Date, the average, as determined by the Company, of the bid and
               asked prices for the Comparable Treasury Issue (expressed in each
               case as a percentage of its principal amount) quoted in writing
               to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on
               the third Business Day preceding such Redemption Date.

                       "Restricted Subsidiaries" means all Subsidiaries other
               than Non-Restricted Subsidiaries.

                       "Sale and Lease-Back Transaction" has the meaning
               specified in Section 1010.

                       "Subsidiary" means (i) any corporation or other entity of
               which securities or other ownership interests having ordinary
               voting power to elect a majority of the board of directors or
               other persons performing similar functions are at the time
               directly or indirectly owned by the Company and/or one or more
               Subsidiaries

                                      -5-

<PAGE>

                  or (ii) any partnership of which more than 50% of the
                  partnership interest is owned by the Company or any
                  Subsidiary.

                                   ARTICLE TWO

                                 SECURITY FORMS

Section 201.      Form of Securities of this Series.

                  The Securities of this series shall be in the form set forth
in this Article.

Section 202.      Form of Face of Security.

               This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of a Depositary
or a nominee of a Depositary. This Security is not exchangeable for Securities
registered in the name of a Person other than the Depositary or its nominee
except in the limited circumstances described in the Indenture, and no transfer
of this Security (other than a transfer of this Security as a whole by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary to
the Depositary or another nominee of the Depositary) may be registered except in
the limited circumstances described in the Indenture.

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

                                 THE KROGER CO.

                           6.20% Senior Notes due 2012

CUSIP No. 501044 CD 1
No. ........                                                       $ ........

                  The Kroger Co., a corporation duly organized and existing
under the laws of the State of Ohio (herein called the "Company", which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to , or registered assigns, the principal
sum of $ on June 15, 2012 and to pay interest thereon from June 17, 2002, or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semi-annually on June 15 and December 15 in each year,
commencing December 15, 2002 at the rate of interest of 6.20% per annum until
the principal hereof is paid or made available for payment. The interest so
payable, and punctually paid or

                                      -6-

<PAGE>

duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the June 1 or December 1 (whether
or not a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture.

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

               In the case where any Interest Payment Date or the maturity date
of this Security does not fall on a Business Day, payment of interest or
principal otherwise payable on such day need not be made on such day, but may be
made on the next succeeding Business Day with the same force and effect as if
made on such Interest Payment Date or the maturity date of this Security.

               Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.

                                      -7-

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

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

Dated: June 17, 2002
                                             THE KROGER CO.

                                             By ________________________________

Attest:

______________________________

               This is one of the Securities of the series designated therein
referred to in the within mentioned Indenture.

                                             U.S. BANK, N.A.,
                                             as Trustee

                                             By_________________________________
                                                       Authorized Officer

Section 203.   Form of Reverse of Security.

               This Security is one of a duly authorized issue of Securities of
the Company (including the related Guarantees, the "Securities") issued and to
be issued under an Indenture dated as of June 25, 1999, as supplemented by the
First Supplemental Indenture dated as of June 25, 1999, the Second Supplemental
Indenture dated as of June 25, 1999, the Third Supplemental Indenture dated as
of June 25, 1999, the Fourth Supplemental Indenture dated as of September 22,
1999, the Fifth Supplemental Indenture dated as of September 22, 1999, the Sixth
Supplemental Indenture dated as of September 22, 1999, the Seventh Supplemental
Indenture dated as of February 11, 2000, the Eighth Supplemental Indenture dated
as of February 11, 2000, the Ninth Supplemental Indenture dated as of August 21,
2000, the Tenth Supplemental Indenture dated as of May 11, 2001, the Eleventh
Supplemental Indenture dated as of May 11, 2001, the Twelfth Supplemental
Indenture dated as of August 16, 2001, the Thirteenth Supplemental Indenture
dated as of April 3, 2002, and the Fourteenth Supplemental

                                      -8-

<PAGE>

Indenture dated as of June 17, 2002 (as so supplemented, herein called the
"Indenture"), each between the Company and the Guarantors named therein, and
Firstar Bank, N.A. (now known as U.S. Bank, N.A.), as Trustee (herein called the
"Trustee", which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Guarantors named therein, the Trustee
and the Holders of the Securities and of the terms upon which the Securities
are, and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof, initially limited in aggregate principal
amount to $350,000,000.

               The Company may from time to time, without notice to or consent
of the registered holders of the Securities issue further Securities
("Additional Securities"). The Additional Securities will rank equal with the
Securities in all respects (or in all respects other than the payment of
interest accruing prior to the issue date of the Additional Securities, or
except for the first payment of interest following the issue date of the
Additional Securities). The Additional Securities may be consolidated and form a
single series with the Securities and may have the same terms as to status,
redemption, or otherwise, as the Securities.

               The Securities of this series will be redeemable, in whole or in
part, at the option of the Company at any time at a redemption price equal to
the greater of (i) 100% of the principal amount of such Securities or (ii) as
determined by a Quotation Agent, the sum of the present values of the remaining
scheduled payments of principal and interest thereon (not including any portion
of such payments of interest accrued as of the date of redemption) discounted to
the date of redemption on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Adjusted Treasury Rate plus 25 basis
points, plus, in each case, accrued interest thereon to the date of redemption.

               Notice of any redemption will be mailed at least 30 days but not
more than 60 days before the Redemption Date to each holder of the Securities to
be redeemed. Unless the Company defaults in payment of the redemption price, on
and after the Redemption Date, interest will cease to accrue on the Securities
or portions thereof called for redemption.

               The Indenture contains provisions for defeasance at any time of
(i) the entire indebtedness of this Security or (ii) certain restrictive
covenants and Events of Default with respect to this Security, in each case upon
compliance with certain conditions set forth therein.

               If an Event of Default shall occur and be continuing, the
principal of all Securities of this series may be declared due and payable in
the manner and with the effect provided in the Indenture.

               The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of 50% in aggregate

                                      -9-

<PAGE>

principal amount of the Securities at the time Outstanding of each series to be
affected. The Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all the Securities of such
series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
therefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.

               As set forth in, and subject to, the provisions of the Indenture,
no Holder of any Security will have any right to institute any proceeding with
respect to the Indenture or for any remedy thereunder, unless such Holder shall
have previously given to the Trustee written notice of a continuing Event of
Default, the Holders of not less than 25% in principal amount of the Outstanding
Securities shall have made written request, and offered reasonable indemnity, to
the Trustee to institute such proceeding as trustee, and the Trustee shall not
have received from the Holders of a majority in principal amount of the
Outstanding Securities a direction inconsistent with such request and shall have
failed to institute such proceeding within 60 days; provided, however, that such
limitations do not apply to a suit instituted by the Holder hereof for the
enforcement of payment of the principal of (and premium, if any) or any interest
on this Security on or after the respective due dates expressed herein.

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

               As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registerable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
like tenor, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.

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

                                      -10-

<PAGE>

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

               Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

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

Section 204.   Form of Guarantee.

               The form of Guarantee shall be set forth on the Securities
substantially as follows:

                                    GUARANTEE

     For value received, each of the undersigned hereby absolutely, fully and
unconditionally and irrevocably guarantees, jointly and severally with each
other Guarantor, to the holder of this Security the payment of principal of,
premium, if any, and interest on this Security upon which this Guarantee is
endorsed in the amounts and at the time when due and payable whether by
declaration thereof, or otherwise, and interest on the overdue principal and
interest, if any, of this Security, if lawful, and the payment or performance of
all other obligations of the Company under the Indenture or the Securities, to
the holder of this Security and the Trustee, all in accordance with and subject
to the terms and limitations of this Security and Article Five of the Fourteenth
Supplemental Indenture to the Indenture. This Guarantee will not become
effective until the Trustee duly executes the certificate of authentication on
this Security. This Guarantee shall be governed by and construed in accordance
with the laws of the State of New York, without regard to conflict of law
principles thereof.

Dated: June 17, 2002

Attest:                              Each of the Guarantors Listed on Schedule I
                                     hereto, as Guarantor of the Securities

______________________________       By: _____________________________
Assistant Secretary/Secretary            Name:
                                         Title:

                                      -11-

<PAGE>

                                 QUEEN CITY ASSURANCE, INC.,
                                 as Guarantor of the Securities
                                 RJD ASSURANCE, INC.,
                                 as Guarantor of the Securities
                                 VINE COURT ASSURANCE INCORPORATED,
Attest:                          as Guarantor of the Securities

______________________           By: ________________________________
Scott M. Henderson                   Name:  Bruce M. Gack
Treasurer                            Title: Senior Vice President/Vice President

                                 RICHIE'S INC., as Guarantor of the Securities

                                 By: ________________________________
                                     Name:  Thomas P. O'Brien, Jr.
                                     Title: Vice President

                                 ROCKET NEWCO, INC.,
                                 as Guarantor of the Securities
                                 HENPIL, INC.,
                                 as Guarantor of the Securities

                                 By: ________________________________
                                     Name:  Paul Schweitzer
                                     Title: Vice President

                                      -12-

<PAGE>

This is one of the Guarantees referred to in the within mentioned Indenture.

                                            U.S. BANK, N.A.
                                            as Trustee

                                            By: ________________________________
                                                Name:
                                                Title:

                                      -13-

<PAGE>

                                   SCHEDULE I

                                   Guarantors

Name of Guarantor                              State of Organization
-----------------                              ---------------------

Alpha Beta Company                             California
Bay Area Warehouse Stores, Inc.                California
Bell Markets, Inc.                             California
Cala Co.                                       Delaware
Cala Foods, Inc.                               California
CB&S Advertising Agency, Inc.                  Oregon
Crawford Stores, Inc.                          California
Dillon Companies, Inc.                         Kansas
Dillon Real Estate Co., Inc.                   Kansas
Distribution Trucking Company                  Oregon
Drugs Distributors, Inc.                       Indiana
F4L L.P.                                       Ohio
FM, Inc.                                       Utah
Food 4 Less GM, Inc.                           California
Food 4 Less Holdings, Inc.                     Delaware
Food 4 Less Merchandising, Inc.                California
Food 4 Less of California, Inc.                California
Food 4 Less of Southern California, Inc.       Delaware
Fred Meyer, Inc.                               Delaware
Fred Meyer Jewelers, Inc.                      California
Fred Meyer of Alaska, Inc.                     Alaska
Fred Meyer of California, Inc.                 California
Fred Meyer Stores, Inc.                        Delaware
Hughes Markets, Inc.                           California
Hughes Realty, Inc.                            California
Inter-American Foods, Inc.                     Ohio
Junior Food Stores of West Florida, Inc.       Florida
J.V. Distributing, Inc.                        Michigan
KRGP Inc.                                      Ohio
KRLP Inc.                                      Ohio
The Kroger Co. of Michigan                     Michigan
Kroger Dedicated Logistics Co.                 Ohio
Kroger Group Cooperative, Inc.                 Ohio
Kroger Limited Partnership I                   Ohio
Kroger Limited Partnership II                  Ohio
Kroger Texas L.P.                              Ohio
KU Acquisition Corporation                     Washington
Kwik Shop, Inc.                                Kansas

                                      -14-

<PAGE>

Name of Guarantor                              State of Organization
-----------------                              ---------------------

Mini Mart, Inc.                                Wyoming
Peyton's-Southeastern, Inc.                    Tennessee
QFC Sub, Inc.                                  Washington
Quality Food Centers, Inc.                     Washington
Quality Food Holdings, Inc.                    Delaware
Quality Food, Inc.                             Delaware
Quik Stop Markets, Inc.                        California
Ralphs Grocery Company                         Delaware
Roundup Co.                                    Washington
Second Story, Inc.                             Washington
Smith's Beverage of Wyoming, Inc.              Wyoming
Smith's Food & Drug Centers, Inc.              Delaware
THGP Co., Inc.                                 Pennsylvania
THLP Co., Inc.                                 Pennsylvania
Topvalco, Inc.                                 Ohio
Turkey Hill, L.P.                              Pennsylvania
Wells Aircraft, Inc.                           Kansas

                                      -15-

<PAGE>

                                  ARTICLE THREE

                            THE SERIES OF SECURITIES

Section 301.   Title and Terms.

               There shall be a series of Securities designated as the "6.20%
Senior Notes due 2012" of the Company. Their Stated Maturity shall be June 15,
2012, and they shall bear interest at the rate of 6.20% per annum.

               Interest on the Securities of this series will be payable
semi-annually on June 15 and December 15 of each year, commencing December 15,
2002, until the principal thereof is made available for payment. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will be paid to the Person in whose name the Securities of this series (or one
or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the June 1 or December 1
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date.

               In the case where any Interest Payment Date or the maturity date
of the Securities of this series does not fall on a Business Day, payment of
interest or principal otherwise payable on such date need not be made on such
day, but may be made on the next succeeding Business Day with the same force and
effect as if made on such Interest Payment Date or the maturity date of the
Securities of this series.

               The aggregate principal amount of Securities of this series which
may be authenticated and delivered under this Fourteenth Supplemental Indenture
is initially limited to $350,000,000, except for Securities authenticated and
delivered upon registration or transfer of, or in exchange for, or in lieu of,
other Securities of this series pursuant to Section 304, 305 and 306 of the
Indenture and except for any Securities of this series which, pursuant to
Section 303 of the Indenture, are deemed never to have been authenticated and
delivered under the Indenture. Notwithstanding the foregoing, the Company may
from time to time, without notice to or consent of the registered holders of the
Securities issue further Securities ("Additional Securities"). The Additional
Securities will rank equal with the Securities in all respects (or in all
respects other than the payment of interest accruing prior to the issue date of
the Additional Securities, or except for the first payment of interest following
the issue date of the Additional Securities). The Additional Securities may be
consolidated and form a single series with the Securities and may have the same
terms as to status, redemption, or otherwise, as the Securities.

               The Securities of this series will be represented by two or more
Global Securities representing the entire $350,000,000 aggregate principal
amount of the Securities of this series (as such amount may be increased by the
Additional Securities), and the Depositary with respect to such Global Security
or Global Securities will be The Depository Trust Company.

                                      -16-

<PAGE>

               The Place of Payment for the principal of (and premium, if any)
and interest on the Securities of this series shall be the office or agency of
the Company in the City of Cincinnati, State of Ohio, maintained for such
purpose, which shall be the Corporate Trust Office of the Trustee and at any
other office or agency maintained by the Company for such purpose; provided,
however, that at the option of the Company payment of interest may be made by
check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register.

               The Securities of this series are redeemable prior to maturity at
the option of the Company as provided in this Fourteenth Supplemental Indenture.

               The Securities of this series are not subject to a sinking fund
and the provisions of Section 501(3) and Article Twelve of the Indenture shall
not be applicable to the Securities of this series.

               The Securities of this series are subject to defeasance at the
option of the Company as provided in this Fourteenth Supplemental Indenture.

                                  ARTICLE FOUR

                  MODIFICATIONS AND ADDITIONS TO THE INDENTURE

Section 401.   Modifications to the Consolidation, Merger,
               Conveyance, Transfer or Lease Provisions.

               With respect to the Securities of this series, Section 801 of the
Indenture shall be deleted in its entirety and the following shall be
substituted therefor:

               "Section 801. Covenant Not to Merge, Consolidate, Sell or Convey
     Property Except Under Certain Conditions.

               The Company covenants that it will not merge with or into or
     consolidate with any corporation, partnership, or other entity or sell,
     lease or convey all or substantially all of its assets to any other Person,
     unless (i) either the Company shall be the continuing corporation, or the
     successor entity or the Person which acquires by sale, lease or conveyance
     all or substantially all the assets of the Company (if other than the
     Company) shall be a corporation or partnership organized under the laws of
     the United States of America or any State thereof or the District of
     Columbia and shall expressly assume all obligations of the Company under
     this Indenture and the Securities of the series created by the Fourteenth
     Supplemental Indenture, including the due and punctual payment of the
     principal of and interest on all the Securities of the series created by
     the Fourteenth Supplemental Indenture according to their tenor, and the due
     and punctual performance and observance of all of the covenants and
     conditions of

                                      -17-

<PAGE>

     the Indenture to be performed or observed by the Company, by supplemental
     indenture in form satisfactory to the Trustee, executed and delivered to
     the Trustee by such entity, and (ii) the Company, such person or such
     successor entity, as the case may be, shall not, immediately after such
     merger or consolidation, or such sale, lease or conveyance, be in default
     in the performance of any such covenant or condition and, immediately after
     giving effect to such transaction, no Event of Default, and no event which,
     after notice or lapse of time or both, would become an Event of Default,
     shall have happened and be continuing.

               Section 802. Successor Substituted

               Upon any consolidation of the Company with, or merger of the
     Company into, any other Person or any sale, lease or conveyance of all or
     substantially all of the assets of the Company in accordance with Section
     801, the successor Person formed by such consolidation or into which the
     Company is merged or to which such sale, lease or conveyance is made shall
     succeed to, and be substituted for, 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, and thereafter,
     except in the case of a lease, the predecessor Person shall be relieved of
     all obligations and covenants under this Indenture and the Securities."

Section 402.   Other Modifications.
               -------------------

               With respect to the Securities of this series, the Indenture
shall be modified as follows:

               (a) The eighth paragraph of Section 305 of the Indenture shall be
modified by inserting ", and a successor Depositary is not appointed by the
Company within 90 days" at the end of clause (i) in such paragraph; and

               (b) Section 401 of the Indenture shall be modified by adding to
the end of such Section the following paragraph:

               "For the purpose of this Section 401, trust funds may consist of
     (A) money in an amount, or (B) U.S. Government Obligations (as defined in
     Section 1304) which through the scheduled payment of principal and interest
     in respect thereof in accordance with their terms will provide, not later
     than one day before the due date of any payment, money in an amount, or (C)
     a combination thereof, sufficient, in the opinion of a nationally
     recognized firm of independent public accountants expressed in a written
     certification thereof delivered to the Trustee, to pay and discharge, the
     principal of, premium, if any, and each installment of interest on the
     Securities of this series on the Stated Maturity of such principal or
     installment of interest on the day on which such payments are due and
     payable in accordance with the terms of this Indenture and of such
     Securities of this series."

                                      -18-

<PAGE>

Section 403.   Additional Covenants; Defeasance and Covenant Defeasance.

               (a) With respect to the Securities of this series, the following
provisions shall be added as Sections 1009 and 1010 and as Article Thirteen
(Section references contained in these additional provisions are to the
Indenture as supplemented by this Fourteenth Supplemental Indenture):

               "Section 1009. Limitations on Liens.

               After the date hereof and so long as any Securities of the series
     created by the Fourteenth Supplemental Indenture are Outstanding, the
     Company will not issue, assume or guarantee, and will not permit any
     Restricted Subsidiary to issue, assume or guarantee, any Indebtedness which
     is secured by a mortgage, pledge, security interest, lien or encumbrance of
     any kind (including any conditional sale or other title retention
     agreement, any lease in the nature thereof, and any agreement to give any
     of the foregoing) (each being hereinafter referred to as a "lien" or
     "liens") of or upon any Operating Property or Operating Asset, whether now
     owned or hereafter acquired, of the Company or any Restricted Subsidiary
     without effectively providing that the Securities of the series created by
     the Fourteenth Supplemental Indenture (together with, if the Company shall
     so determine, any other Indebtedness of the Company ranking equally with
     the Securities) shall be equally and ratably secured by a lien on such
     assets ranking ratably with and equal to (or at the Company's option prior
     to) such secured Indebtedness; provided that the foregoing restriction
     shall not apply to:

               (a) liens on any property or assets of any corporation existing
     at the time such corporation becomes a Restricted Subsidiary provided that
     such lien does not extend to any other property of the Company or any of
     its Restricted Subsidiaries;

               (b) liens on any property or assets (including stock) existing at
     the time of acquisition of such property or assets by the Company or a
     Restricted Subsidiary, or liens to secure the payment of all or any part of
     the purchase price of such property or assets (including stock) upon the
     acquisition of such property or assets by the Company or a Restricted
     Subsidiary or to secure any indebtedness incurred, assumed or guaranteed by
     the Company or a Restricted Subsidiary for the purpose of financing all or
     any part of the purchase price of such property or, in the case of real
     property, construction or improvements thereon or attaching to property
     substituted by the Company to obtain the release of a lien on other
     property of the Company on which a lien then exists, which indebtedness is
     incurred, assumed or guaranteed prior to, at the time of, or within 18
     months after such acquisition (or in the case of real property, the
     completion of construction (including any improvements on an existing
     asset) or commencement of full operation at such property, whichever is
     later (which in the case of a retail store is the opening of the store for
     business to the public)); provided that in the case of any such
     acquisition, construction or improvement, the lien shall not apply to

                                      -19-

<PAGE>

     any other property or assets theretofore owned by the Company or a
     Restricted Subsidiary;

               (c) liens on any property or assets to secure Indebtedness of a
     Restricted Subsidiary to the Company or to another Restricted Subsidiary;

               (d) liens on any property or assets of a corporation existing at
     the time such corporation is merged into or consolidated with the Company
     or a Restricted Subsidiary or at the time of a purchase, lease or other
     acquisition of the assets of a corporation or firm as an entirety or
     substantially as an entirety by the Company or a Restricted Subsidiary
     provided that such lien does not extend to any other property of the
     Company or any of its Restricted Subsidiaries;

               (e) liens on any property or assets of the Company or a
     Restricted Subsidiary in favor of the United States of America or any State
     thereof, or any department, agency or instrumentality or political
     subdivision of the United States of America or any State thereof, or in
     favor of any other country, or any political subdivision thereof, to secure
     partial, progress, advance or other payments pursuant to any contract or
     statute or to secure any Indebtedness incurred or guaranteed for the
     purpose of financing all or any part of the purchase price (or, in the case
     of real property, the cost of construction) of the property or assets
     subject to such liens (including, but not limited to, liens incurred in
     connection with pollution control, industrial revenue or similar
     financings);

               (f) liens existing on properties or assets of the Company or any
     Restricted Subsidiary existing on the date hereof; provided that such liens
     secure only those obligations which they secure on the date hereof or any
     extension, renewal or replacement thereof;

               (g) any extension, renewal or replacement (or successive
     extensions, renewals or replacements) in whole or in part, of any lien
     referred to in the foregoing clauses (a) through (f), inclusive; provided
     that such extension, renewal or replacement shall be limited to all or a
     part of the property or assets which secured the lien so extended, renewed
     or replaced (plus improvements and construction on real property);

               (h) liens imposed by law, such as mechanics', workmen's,
     repairmen's, materialmen's, carriers', warehouseman's, vendors', or other
     similar liens arising in the ordinary course of business of the Company or
     a Restricted Subsidiary, or governmental (federal, state or municipal)
     liens arising out of contracts for the sale of products or services by the
     Company or any Restricted Subsidiary, or deposits or pledges to obtain the
     release of any of the foregoing liens;

               (i) pledges, liens or deposits under worker's compensation laws
     or similar legislation and liens or judgments thereunder which are not
     currently dischargeable, or in connection with bids, tenders, contracts
     (other than for the payment of money) or leases to which the Company or any
     Restricted Subsidiary is a party, or to secure the

                                      -20-

<PAGE>

         public or statutory obligations of the Company or any Restricted
         Subsidiary, or in connection with obtaining or maintaining
         self-insurance or to obtain the benefits of any law, regulation or
         arrangement pertaining to unemployment insurance, old age pensions,
         social security or similar matters, or to secure surety, appeal or
         customs bonds to which the Company or any Restricted Subsidiary is a
         party, or in litigation or other proceedings such as, but not limited
         to, interpleader proceedings, and other similar pledges, liens or
         deposits made or incurred in the ordinary course of business;

                        (j) liens created by or resulting from any litigation or
         other proceeding which is being contested in good faith by appropriate
         proceedings, including liens arising out of judgments or awards against
         the Company or any Restricted Subsidiary with respect to which the
         Company or such Restricted Subsidiary is in good faith prosecuting an
         appeal or proceedings for review or for which the time to make an
         appeal has not yet expired; or final unappealable judgment liens which
         are satisfied within 30 days of the date of judgment; or liens incurred
         by the Company or any Restricted Subsidiary for the purpose of
         obtaining a stay or discharge in the course of any litigation or other
         proceeding to which the Company or such Restricted Subsidiary is a
         party;

                        (k) liens for taxes or assessments or governmental
         charges or levies not yet due or delinquent, or which can thereafter be
         paid without penalty, or which are being contested in good faith by
         appropriate proceedings; landlord's liens on property held under lease;
         and any other liens or charges incidental to the conduct of the
         business of the Company or any Restricted Subsidiary or the ownership
         of the property or assets of any of them which were not incurred in
         connection with the borrowing of money or the obtaining of advances or
         credit and which do not, in the opinion of the Company, materially
         impair the use of such property or assets in the operation of the
         business of the Company or such Restricted Subsidiary or the value of
         such property or assets for the purposes of such business; or

                        (l) liens not permitted by clauses (a) through (k) above
         if at the time of, and after giving effect to, the creation or
         assumption of any such lien, the aggregate amount of all Indebtedness
         of the Company and its Restricted Subsidiaries secured by all such
         liens not so permitted by clauses (a) through (k) above together with
         the Attributable Debt in respect of Sale and Lease-Back Transactions
         permitted by paragraph (a) of Section 1010 does not exceed 10% of
         Consolidated Net Tangible Assets.

                  Section 1010. Limitations on Sale and Lease-Back Transactions.

                  After the date hereof and so long as any Securities of the
         series created by the Fourteenth Supplemental Indenture are
         Outstanding, the Company agrees that it will not, and will not permit
         any Restricted Subsidiary to, enter into any arrangement with any
         Person providing for the leasing by the Company or a Restricted
         Subsidiary of any Operating Property or Operating Asset (other than any
         such arrangement involving a lease for a term, including renewal
         rights, for not more than 3 years and leases between

                                      -21-

<PAGE>

         the Company and a Restricted Subsidiary or between Restricted
         Subsidiaries), whereby such Operating Property or Operating Asset has
         been or is to be sold or transferred by the Company or any Restricted
         Subsidiary to such Person (herein referred to as a "Sale and Lease-Back
         Transaction"), unless:

                        (a) the Company or such Restricted Subsidiary would, at
         the time of entering into a Sale and Lease-Back transaction, be
         entitled to incur Indebtedness secured by a lien on the Operating
         Property or Operating Asset to be leased in an amount at least equal to
         the Attributable Debt in respect of such Sale and Lease-Back
         Transaction without equally and ratably securing the Securities of the
         series created by the Fourteenth Supplemental Indenture pursuant to
         Section 1009; or

                        (b) the proceeds of the sale of the Operating Property
         or Operating Asset to be leased are at least equal to the fair market
         value of such Operating Property or Operating Asset (as determined by
         the chief financial officer or chief accounting officer of the Company)
         and an amount in cash equal to the net proceeds from the sale of the
         Operating Property or Operating Asset so leased is applied, within 180
         days of the effective date of any such Sale and Lease-Back Transaction,
         to the purchase or acquisition (or, in the case of Operating Property,
         the construction) of Operating Property or Operating Assets or to the
         retirement, repurchase, redemption or repayment (other than at maturity
         or pursuant to a mandatory sinking fund or redemption provision and
         other than Indebtedness owned by the Company or any Restricted
         Subsidiary) of Securities of the series created by the Fourteenth
         Supplemental Indenture or of Funded Indebtedness of the Company ranking
         on a parity with or senior to the Securities of the series created by
         the Fourteenth Supplemental Indenture, or in the case of a Sale and
         Lease-Back Transaction by a Restricted Subsidiary, of Funded
         Indebtedness of such Restricted Subsidiary; provided that in connection
         with any such retirement, any related loan commitment or the like shall
         be reduced in an amount equal to the principal amount so retired.

                  The foregoing restriction shall not apply to, in the case of
         any Operating Property or Operating Asset acquired or constructed
         subsequent to the date eighteen months prior to the date of this
         Indenture, any Sale and Lease-Back Transaction with respect to such
         Operating Asset or Operating Property (including presently owned real
         property upon which such Operating Property is to be constructed) if a
         binding commitment is entered into with respect to such Sale and
         Lease-Back Transaction within 18 months after the later of the
         acquisition of the Operating Property or Operating Asset or the
         completion of improvements or construction thereon or commencement of
         full operations at such Operating Property (which in the case of a
         retail store is the opening of the store for business to the public).

                                ARTICLE THIRTEEN

                       DEFEASANCE AND COVENANT DEFEASANCE

                                      -22-

<PAGE>

                  Section 1301. Company's Option to Effect Defeasance or
         Covenant Defeasance.

                  The Company may at its option by Board Resolution, at any
         time, elect to have either Section 1302 or Section 1303 applied to the
         Outstanding Securities of this series upon compliance with the
         conditions set forth below in this Article Thirteen.

                  Section 1302. Defeasance and Discharge.

                  Upon the Company's exercise of the option provided in Section
         1301 applicable to this Section, the Company shall be deemed to have
         been discharged from its obligations with respect to the Outstanding
         Securities of the series created by the Fourteenth Supplemental
         Indenture on the date the conditions set forth below are satisfied
         (hereinafter, "Defeasance"). For this purpose, such Defeasance means
         that the Company shall be deemed to have paid and discharged the entire
         indebtedness represented by the Outstanding Securities of this series
         and to have satisfied all its other obligations under such Securities
         of this series and this Indenture insofar as such Securities of this
         series are concerned (and the Trustee, at the expense of the Company,
         shall execute proper instruments acknowledging the same), except for
         the following which shall survive until otherwise terminated or
         discharged hereunder: (A) the rights of Holders of Outstanding
         Securities of this series to receive, solely from the trust fund
         described in Section 1304 and as more fully set forth in such Section,
         payments in respect of the principal of (and premium, if any) and
         interest on such securities when such payments are due, (B) the
         Company's obligations with respect to such Securities of this series
         under Sections 304, 305, 306, 1002 and 1003, (C) the rights, powers,
         trusts, duties and immunities of the Trustee hereunder and (D) this
         Article Thirteen. Subject to compliance with this Article Thirteen, the
         Company may exercise its option under this Section 1302 notwithstanding
         the prior exercise of its option under Section 1303.

                  Section 1303. Covenant Defeasance.

                  Upon the Company's exercise of the option provided in Section
         1301 applicable to this Section, the Company shall be released from its
         obligations under Section 501(4) (in respect of the covenants in
         Sections 1008 through 1010), Section 801 and Sections 1008 through
         1010, the Securities of this series and the Holders of Securities of
         this series, on and after the date the conditions set forth below are
         satisfied (hereinafter, "covenant Defeasance"). For this purpose, such
         covenant Defeasance means that 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 Section, whether directly or indirectly, by
         reason of any reference elsewhere herein to any such Section or by
         reason of any reference in any such Section to any other provision
         herein or in any other document, but the remainder of this Indenture
         and such Securities of this series shall be unaffected thereby.

                  Section 1304. Conditions to Defeasance or Covenant Defeasance.

                                      -23-

<PAGE>

                  The following shall be the conditions to application of either
         Section 1302 or Section 1303 to the Outstanding Securities of this
         series:

                            (1) The Company shall irrevocably have deposited or
                  caused to be deposited with the Trustee (or another trustee
                  satisfying the requirements of Section 609 who shall agree to
                  comply with the provisions of this Article Thirteen applicable
                  to it) as trust funds in trust for the purpose of making the
                  following payments, specifically pledged as security for, and
                  dedicated solely to, the benefit of the Holders of such
                  Securities of this series, (A) money in an amount, or (B) U.S.
                  Government Obligations which through the scheduled payment of
                  principal and interest in respect thereof in accordance with
                  their terms will provide, not later than one day before the
                  due date of any payment, money in an amount, or (C) a
                  combination thereof, sufficient, in the opinion of a
                  nationally recognized firm of independent public accountants
                  expressed in a written certification thereof delivered to the
                  Trustee, to pay and discharge, and which shall be applied by
                  the Trustee (or other qualifying trustee) to pay and
                  discharge, the principal of, premium, if any, and each
                  installment of interest on the Securities of this series on
                  the Stated Maturity of such principal or installment of
                  interest on the day on which such payments are due and payable
                  in accordance with the terms of this Indenture and of such
                  Securities of this series. For this purpose, "U.S. Government
                  Obligations" means securities that are (x) direct obligations
                  of the United States of America for the payment of which its
                  full faith and credit is pledged or (y) obligations of a
                  Person controlled or supervised by and acting as an agency or
                  instrumentality of the United States of America the payment of
                  which is unconditionally guaranteed as a full faith and credit
                  obligation by the United States of America, which, in either
                  case, are not callable or redeemable at the option of the
                  Company thereof, and shall also include a depository receipt
                  issued by a bank (as defined in Section 3(a)(2) of the
                  Securities Act of 1933, as amended) as custodian with respect
                  to any such U.S. Government Obligation or a specific payment
                  of principal of or interest on any such U.S. Government
                  Obligation held by such custodian for the account of the
                  holder of such depository receipt, provided that (except as
                  required by law) such custodian is not authorized to make any
                  deduction from the amount payable to the holder of such
                  depositary receipt from any amount received by the custodian
                  in respect of the U.S. Government Obligation or the specific
                  payment of principal of or interest on the U.S. Government
                  Obligation evidenced by such depositary receipt.

                                      -24-

<PAGE>

                            (2) No Event of Default or event which with notice
                  or lapse of time or both would become an Event of Default
                  shall have occurred and be continuing on the date of such
                  deposit or, insofar as subsections 501(6) and (7) are
                  concerned, at any time during the period ending on the 121st
                  day after the date of such deposit (it being understood that
                  this condition shall not be deemed satisfied until the
                  expiration of such period).

                            (3) Such Defeasance or covenant Defeasance shall not
                  cause the Trustee to have a conflicting interest as defined in
                  Section 608 and for purposes of the Trust Indenture Act with
                  respect to any securities of the Company.

                            (4) Such Defeasance or covenant Defeasance shall not
                  result in a breach or violation of, or constitute a default
                  under, this Indenture or any other agreement or instrument to
                  which the Company is a party or by which it is bound.

                            (5) The Company shall have delivered to the Trustee
                  an Officers' Certificate and an Opinion of Counsel, each
                  stating that all conditions precedent provided for relating to
                  either the Defeasance under Section 1302 or the covenant
                  Defeasance under Section 1303 (as the case may be) have been
                  complied with.

                            (6) In the case of an election under Section 1302,
                  the Company shall have delivered to the Trustee an Opinion of
                  Counsel stating that (x) the Company has received from, or
                  there has been published by, the Internal Revenue Service a
                  ruling, or (y) since the date of this Fourteenth Supplemental
                  Indenture there has been a change in the applicable Federal
                  income tax law, in either case to the effect that and based
                  thereon such opinion shall confirm that, the Holders of the
                  Outstanding Securities of this series will not recognize
                  income, gain or loss for Federal income tax purposes as a
                  result of such Defeasance or 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 Defeasance or covenant Defeasance had not occurred.

                  Section 1305.  Deposited Money and U.S. Government Obligations
         to Be Held in Trust; Other Miscellaneous Provisions.

                  Subject to the provisions of the last paragraph of Section
         1003, all money and U.S. Government Obligations (including the proceeds
         thereof) deposited with the Trustee (or other qualifying
         trustee--collectively, for purposes of this Section 1305, the

                                      -25-

<PAGE>

         "Trustee") pursuant to Section 1304 in respect of the Securities of
         this series shall be held in trust and applied by the Trustee, in
         accordance with the provisions of such Securities of this series 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 Holders of such Securities of this
         series, of all sums due and to become due thereon in respect of
         principal (and 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 U.S.
         Government Obligations deposited pursuant to Section 1304 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 Securities of this series.

                  Anything in this Article Thirteen to the contrary
         notwithstanding, the Trustee shall deliver or pay to the Company from
         time to time upon Company Request any money or U.S. Government
         Obligations held by it as provided in Section 1304 which, in the
         opinion of a nationally recognized firm of independent public
         accountants expressed in a written certification thereof delivered to
         the Trustee, are in excess of the amount thereof which would then be
         required to be deposited to effect an equivalent Defeasance or covenant
         Defeasance.

                  Section 1306. Reinstatement.

                  If the Trustee or the Paying Agent is unable to apply any
         money in accordance with Section 1302 or 1303 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 Securities of this series
         shall be revived and reinstated as though no deposit had occurred
         pursuant to this Article Thirteen until such time as the Trustee or
         Paying Agent is permitted to apply all such money in accordance with
         Section 1302 or 1303; provided, however, that if the Company makes any
         payment of principal of (and premium, if any) or interest on any
         Security of this series following the reinstatement of its obligations,
         the Company shall be subjugated to the rights of the Holders of such
         Securities of this series to receive such payment from the money held
         by the Trustee or the Paying Agent."

Section 404.      Redemption of Securities.

                  With respect to Securities of this series, Section 1101 of the
Indenture shall be deleted in its entirety and the following shall be
substituted therefor:

                  "Section 1101. Optional Redemption.

                  The Securities will be redeemable, in whole or in part, at the
         option of the Company at any time at a redemption price equal to the
         greater of (i) 100% of the

                                      -26-

<PAGE>

         principal amount of such Securities or (ii) as determined by a
         Quotation Agent, the sum of the present values of the remaining
         scheduled payments of principal and interest thereon (not including any
         portion of such payments of interest accrued as of the date of
         redemption) discounted to the date of redemption on a semi-annual basis
         (assuming a 360-day year consisting of twelve 30-day months) at the
         Adjusted Treasury Rate plus 25 basis points plus, in each case, accrued
         interest thereon to the date of redemption."

                                  ARTICLE FIVE

                                    GUARANTEE

Section 501.      Guarantee.

                  Each Guarantor hereby jointly and severally fully and
unconditionally guarantees (each a "Guarantee") to each Holder of a Security
authenticated and delivered by the Trustee and to the Trustee and its successors
and assigns, irrespective of the validity and enforceability of the Indenture or
the Securities or the obligations of the Company or any other Guarantor to the
Holders or the Trustee hereunder or thereunder, that (a) the principal of,
premium, if any, and interest on the Securities will be duly and punctually paid
in full when due, whether at maturity, upon redemption, by acceleration or
otherwise, and interest on the overdue principal and (to the extent permitted by
law) interest, if any, on the Securities and all other obligations of the
Company or the Guarantor to the Holders of or the Trustee under the Indenture or
the Securities hereunder (including fees, expenses or others) (collectively, the
"Obligations") will be promptly paid in full or performed, all in accordance
with the terms of the Indenture and the Securities; and (b) in case of any
extension of time of payment or renewal of any Obligations, 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.
If the Company shall fail to pay when due, or to perform, any Obligations, for
whatever reason, each Guarantor shall be obligated to pay, or to perform or
cause the performance of, the same immediately. An Event of Default under the
Indenture or the Securities shall constitute an event of default under this
Guarantee, and shall entitle the Holders of Securities to accelerate the
Obligations of the Guarantor hereunder in the same manner and to the same extent
as the Obligations of the Company.

                  Each Guarantor hereby agrees that its obligations hereunder
shall be unconditional, irrespective of the validity, regularity or
enforceability of the Securities or the Indenture, the absence of any action to
enforce the same, any waiver or consent by any Holder of the Securities with
respect to any provisions of the Indenture or the Securities, any release of any
other Guarantor, the recovery of any judgment against the Company, any action to
enforce the same, whether or not a Guarantee is affixed to any particular
Security, or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a Guarantor.

                                      -27-

<PAGE>

                  Each Guarantor further agrees that, as between it, on the one
hand, and the Holders of Securities and the Trustee, on the other hand, (a) the
maturity of the Obligations may be accelerated as provided in Article Five of
the Indenture for the purposes of the Guarantee, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Obligations, and (b) in the event of any acceleration of such Obligations as
provided in Article Five of the Indenture, such Obligations (whether or not due
and payable) shall forthwith become due and payable by the Guarantor for the
purposes of its Guarantee.

Section 502.      Waiver of Demand.

                  To the fullest extent permitted by applicable law, each of the
Guarantors waives presentment to, demand of payment from and protest of any of
the Obligations, and also waives notice of acceptance of its Guarantee and
notice of protest for nonpayment.

Section 503.      Guarantee of Payment.

                  Each of the Guarantors further agrees that its Guarantee
constitutes a guarantee of payment when due and not of collection, and waives
any right to require that any resort be had by the Trustee or any Holder of the
Securities to the security, if any, held for payment of the Obligations.

Section 504.      No Discharge or Diminishment of Guarantee.

                  Subject to Section 510 of this Fourteenth Supplemental
Indenture, the obligations of each of the Guarantors hereunder shall not be
subject to any reduction, limitation, impairment or for any reason (other than
the indefeasible payment in full in cash of the Obligations), including any
claim of waiver, release, surrender, alteration or compromise of any of the
Obligations, and shall not be subject to any defense or setoff, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of each of the Guarantors hereunder
shall not be discharged or impaired or otherwise affected by the failure of the
Trustee or any Holder of the Securities to assert any claim or demand or to
enforce any remedy under the Indenture or the Securities, any other guarantee or
any other agreement, by any waiver or modification of any provision of any
thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Obligations, or by any other act or omission that may or
might in any manner or to any extent vary the risk of any Guarantor or that
would otherwise operate as a discharge of any Guarantor as a matter of law or
equity (other than the indefeasible payment in full in cash of all the
Obligations).

Section 505.      Defenses of Company Waived.

                  To the extent permitted by applicable law, each of the
Guarantors waives any defense based on or arising out of any defense of the
Company or any other Guarantor or the unenforceability of the Obligations or any
part thereof from any cause, or the cessation from

                                      -28-

<PAGE>

any cause of the liability of the Company, other than final and indefeasible
payment in full in cash of the Obligations. Each of the Guarantors waives any
defense arising out of any such election even though such election operates to
impair or to extinguish any right of reimbursement or subrogation or other right
or remedy of each of the Guarantors against the Company or any security.

Section 506.      Continued Effectiveness.

                  Subject to Section 510 of this Fourteenth Supplemental
Indenture, each of the Guarantors further agrees that its Guarantee hereunder
shall continue to be effective or be reinstated, as the case may be, if at any
time payment, or any part thereof, of principal of or interest on any Obligation
is rescinded or must otherwise be restored by the Trustee or any Holder of the
Securities upon the bankruptcy or reorganization of the Company.

Section 507.      Subrogation.

                  In furtherance of the foregoing and not in limitation of any
other right of each of the Guarantors by virtue hereof, upon the failure of the
Company to pay any Obligation when and as the same shall become due, whether at
maturity, by acceleration, after notice of prepayment or otherwise, each of the
Guarantors hereby promises to and will, upon receipt of written demand by the
Trustee or any Holder of the Securities, forthwith pay, or cause to be paid, to
the Holders in cash the amount of such unpaid Obligations, and thereupon the
Holders shall, assign (except to the extent that such assignment would render a
Guarantor a "creditor" of the Company within the meaning of Section 547 of Title
11 of the United States Code as now in effect or hereafter amended or any
comparable provision of any successor statute) the amount of the Obligations
owed to it and paid by such Guarantor pursuant to this Guarantee to such
Guarantor, such assignment to be pro rata to the extent the Obligations in
question were discharged by such Guarantor, or make such other disposition
thereof as such Guarantor shall direct (all without recourse to the Holders, and
without any representation or warranty by the Holders). If (a) a Guarantor shall
make payment to the Holders of all or any part of the Obligations and (b) all
the Obligations and all other amounts payable under this Fourteenth Supplemental
Indenture shall be indefeasibly paid in full, the Trustee will, at such
Guarantor's request, execute and deliver to such Guarantor appropriate
documents, without recourse and without representation or warranty, necessary to
evidence the transfer by subrogation to such Guarantor of an interest in the
Obligations resulting from such payment by such Guarantor.

Section 508.      Information.

                  Each of the Guarantors assumes all responsibility for being
and keeping itself informed of the Company's financial condition and assets, and
of all other circumstances bearing upon the risk of nonpayment of the
Obligations and the nature, scope and extent of the risks that each of the
Guarantors assumes and incurs hereunder, and agrees that the Trustee and the
Holders of the Securities will have no duty to advise the Guarantors of
information known to it or any of them regarding such circumstances or risks.

                                      -29-

<PAGE>

Section 509.      Subordination.

                  Upon payment by any Guarantor of any sums to the Holders, as
provided above, all rights of such Guarantor against the Company, arising as a
result thereof by way of right of subrogation or otherwise, shall in all
respects be subordinated and junior in right of payment to the prior
indefeasible payment in full in cash of all the Obligations to the Trustee;
provided, however, that any right of subrogation that such Guarantor may have
pursuant to this Fourteenth Supplemental Indenture is subject to Section 507
hereof.

Section 510.      Termination.

                  A Guarantor shall, upon the occurrence of either of the
following events, be automatically and unconditionally released and discharged
from all obligations under this Fourteenth Supplemental Indenture and its
Guarantee without any action required on the part of the Trustee or any Holder
if such release and discharge will not result in any downgrade in the rating
given to the Securities by Moody's Investors Service and Standard and Poor's
Rating Services:

                  (a) upon any sale, exchange, transfer or other disposition (by
merger or otherwise) of all of the Capital Stock of a Guarantor or all, or
substantially all, of the assets of such Guarantor, which sale or other
disposition is otherwise in compliance with the terms of the Indenture;
provided, however, that such Guarantor shall not be released and discharged from
its obligations under this Fourteenth Supplemental Indenture and its Guarantee
if, upon consummation of such sale, exchange, transfer or other disposition (by
merger or otherwise), such Guarantor remains or becomes a Guarantor under any
Credit Facility; or

                  (b) at the request of the Company, at any time that none of
the Credit Facilities are guaranteed by any Subsidiary of the Company.

The Trustee shall deliver an appropriate instrument evidencing such release upon
receipt of a request of the Company accompanied by an Officers' Certificate
certifying as to the compliance with this Section. Any Guarantor not so released
will remain liable for the full amount of the principal of, premium, if any, and
interest on the Notes provided in this Fourteenth Supplemental Indenture and its
Guarantee.

Section 511.      Guarantees of other Indebtedness.

                  As long as the Securities are guaranteed by the Guarantors,
the Company will cause each of its Subsidiaries that becomes a Guarantor in
respect of (i) any Indebtedness of the Company which is outstanding on the date
hereof and (ii) any Indebtedness incurred by the Company after the date hereof
(other than in respect of asset-backed securities), to include in any guarantee
given by any such Guarantor, provisions similar to those set forth in Section
510 hereof.

                                      -30-

<PAGE>

Section 512.      Additional Guarantors.

                  The Company will cause each of its Subsidiaries that becomes a
Guarantor in respect of any Indebtedness of the Company following the date
hereof to execute and deliver a supplemental indenture pursuant to which it will
become a Guarantor under this Fourteenth Supplemental Indenture, if it has not
already done so or unless the Guarantor is prohibited from doing so by
applicable law or a provision of a contract to which it is a party or by which
it is bound.

Section 513.      Limitation of Guarantor's Liability.

                  Each Guarantor, and by its acceptance hereof each Holder,
hereby confirms that it is the intention of all such parties that the Guarantee
by such Guarantor not constitute a fraudulent transfer or conveyance for
purposes of Title 11 of the United States Code, the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar Federal of
state law. To effectuate the foregoing intention, the Holders and such Guarantor
hereby irrevocably agree that the obligations of such Guarantor under this
Fourteenth Supplemental Indenture and its Guarantee shall be limited to the
maximum amount which, after giving effect to all other contingent and fixed
liabilities of such Guarantor, and after giving effect to any collections from
or payments made by or on behalf of, any other Guarantor in respect of the
obligations of such Guarantor under its Guarantee or pursuant to its
contribution obligations under this Fourteenth Supplemental Indenture, will
result in the obligations of such Guarantor under its Guarantee not constituting
such fraudulent transfer or conveyance.

Section 514.      Contribution from Other Guarantors.

                  Each Guarantor that makes a payment or distribution under its
Guarantee shall be entitled to a contribution from each other Guarantor in a pro
rata amount based on the net assets of each Guarantor, determined in accordance
with generally accepted accounting principles in effect in the United States of
America as of the date hereof.

Section 515.      No Obligation to Take Action Against the Company.

                  Neither the Trustee, any Holder nor any other Person shall
have any obligation to enforce or exhaust any rights or remedies or take any
other steps under any security for the Obligations or against the Company or any
other Person or any property of the Company or any other Person before the
Trustee, such Holder or such other Person is entitled to demand payment and
performance by any or all Guarantors of their liabilities and obligations under
their Guarantee.

                                      -31-

<PAGE>

Section 516.      Dealing with the Company and Others.

                  The Holders, without releasing, discharging, limiting or
otherwise affecting in whole or in part the obligations and liabilities of any
Guarantor hereunder and without the consent of or notice to any Guarantor, may:

                  (a) grant time, renewals, extensions, compromises,
concessions, waivers, releases, discharges and other indulgences to the Company
or any other Person;

                  (b) take or abstain from taking security or collateral from
the Company or from perfecting security or collateral from the Company;

                  (c) release, discharge, compromise, realize, enforce or
otherwise deal with or do any act or thing in respect of (with or without
consideration) any and all collateral, mortgages or other security given by the
Company or any third party with respect to the Obligations;

                  (d) accept compromises or arrangements from the Company;

                  (e) apply all monies at any time received from the Company or
from any security to such part of the Obligations as the Holders may see fit or
change any such application in whole or in part from time to time as the Holders
may see fit; and

                  (f) otherwise deal with, or waive or modify their right to
deal with, the Company and all other Persons and any security as the Holders or
the Trustee may see fit.

Section 517.      Execution and Delivery of the Guarantee.

                  (a) To further evidence the Guarantee set forth in this
Article Five, each Guarantor hereby agrees that a notation of such Guarantee
shall be endorsed on each Security authenticated and delivered by the Trustee
and executed by either manual or facsimile signature of an officer of each
Guarantor. The corporate seal of a Guarantor may be reproduced on the executed
Guarantee and the execution thereof may be attested to by any appropriate
officer of the Guarantor, but neither such reproduction nor such attestation is
or shall be required.

                  (b) Each of the Guarantors hereby agrees that its Guarantee
set forth in this Article Five shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation of such
Guarantee.

                  (c) If an officer of a Guarantor whose signature is on this
Fourteenth Supplemental Indenture or a Guarantee no longer holds that office at
the time the Trustee authenticates such Guarantee or at any time thereafter,
such Guarantor's Guarantee of such Security shall be valid nevertheless.

                                      -32-

<PAGE>

                   (d) The delivery of any Security by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of any Guarantee
set forth in this Fourteenth Supplemental Indenture on behalf of each Guarantor.

                                   ARTICLE SIX

                                  MISCELLANEOUS

Section 601.      Miscellaneous.

                  (a) The Trustee accepts the trusts created by the Indenture,
as supplemented by this Fourteenth Supplemental Indenture, and agrees to perform
the same upon the terms and conditions of the Indenture, as supplemented by this
Fourteenth Supplemental Indenture.

                  (b) The recitals contained herein shall be taken as statements
of the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this
Fourteenth Supplemental Indenture.

                  (c) All capitalized terms used and not defined herein shall
have the respective meanings assigned to them in the Indenture.

                  (d) Each of the Company and the Trustee makes and reaffirms as
of the date of execution of this Fourteenth Supplemental Indenture all of its
respective representations, covenants and agreements set forth in the Indenture.

                  (e) All covenants and agreements in this Fourteenth
Supplemental Indenture by the Company or the Trustee and each Guarantor shall
bind its respective successors and assigns, whether so expressed or not.

                  (f) In case any provisions in this Fourteenth Supplemental
Indenture 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.

                  (g) Nothing in this Fourteenth Supplemental Indenture, express
or implied, shall give to any Person, other than the parties hereto and their
successors under the Indenture and the Holders of the series of Securities
created hereby, any benefit or any legal or equitable right, remedy or claim
under the Indenture.

                  (h) If any provision hereof limits, qualifies or conflicts
with a provision of the Trust Indenture Act of 1939, as may be amended from time
to time, that is required under such Act to be a part of and govern this
Fourteenth Supplemental Indenture, the latter provision shall control. If any
provision hereof modifies or excludes any provision of such Act that may be so
modified or excluded, the latter provision shall be deemed to apply to this
Fourteenth Supplemental Indenture as so modified or excluded, as the case may
be.

                                      -33-

<PAGE>

                  (i) This Fourteenth Supplemental Indenture shall be governed
by and construed in accordance with the laws of the State of New York.

                  (j) All amendments to the Indenture made hereby shall have
effect only with respect to the series of Securities created hereby.

                  (k) All provisions of this Fourteenth Supplemental Indenture
shall be deemed to be incorporated in, and made a part of, the Indenture; and
the Indenture, as supplemented by this Fourteenth Supplemental Indenture, shall
be read, taken and construed as one and the same instrument.

                  This instrument 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 instrument.

                                      -34-

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.

Attest:                            THE KROGER CO.
                                   Each of the Guarantors Listed on Schedule I
                                   hereto, as Guarantor of the Securities

_______________________________    By: _____________________________________
Bruce M. Gack Assistant                Name:  Paul W. Heldman
Secretary/Secretary                    Title: Senior Vice President/President/
                                              Vice President

Attest:                            QUEEN CITY ASSURANCE, INC.,
                                   as Guarantor of the Securities
                                   RJD ASSURANCE, INC.,
                                   as Guarantor of the Securities
                                   VINE COURT ASSURANCE INCORPORATED,
                                   as Guarantor of the Securities

_______________________________    By:______________________________________
Scott M. Henderson Treasurer          Name:  Bruce M. Gack
                                      Title: Senior Vice President/Vice
                                      President

                                   RICHIE'S INC., as Guarantor of the Securities

                                   By: _____________________________________
                                       Name:  Thomas P. O'Brien, Jr.
                                       Title: Vice President

                                      -35-

<PAGE>

                                               ROCKET NEWCO, INC.,
                                               as Guarantor of the Securities
                                               HENPIL, INC.,
                                               as Guarantor of the Securities

                                               By: _____________________________
                                                   Name:  Paul Schweitzer
                                                   Title: Vice President

                                      -36-

<PAGE>

Attest:                                             U.S. BANK, N.A.,
                                                    as Trustee

                                                    By:_______________________
                                                       Name:
                                                       Title :

                                      -37-

<PAGE>

                                   SCHEDULE I
                                   Guarantors

Name of Guarantor                                      State of Organization

Alpha Beta Company                                     California
Bay Area Warehouse Stores, Inc.                        California
Bell Markets, Inc.                                     California
Cala Co.                                               Delaware
Cala Foods, Inc.                                       California
CB&S Advertising Agency, Inc.                          Oregon
Crawford Stores, Inc.                                  California
Dillon Companies, Inc.                                 Kansas
Dillon Real Estate Co., Inc.                           Kansas
Distribution Trucking Company                          Oregon
Drugs Distributors, Inc.                               Indiana
F4L L.P.                                               Ohio
FM, Inc.                                               Utah
Food 4 Less GM, Inc.                                   California
Food 4 Less Holdings, Inc.                             Delaware
Food 4 Less Merchandising, Inc.                        California
Food 4 Less of California, Inc.                        California
Food 4 Less of Southern California, Inc.               Delaware
Fred Meyer, Inc.                                       Delaware
Fred Meyer Jewelers, Inc.                              California
Fred Meyer of Alaska, Inc.                             Alaska
Fred Meyer of California, Inc.                         California
Fred Meyer Stores, Inc.                                Delaware
Hughes Markets, Inc.                                   California
Hughes Realty, Inc.                                    California
Inter-American Foods, Inc.                             Ohio
Junior Food Stores of West Florida, Inc.               Florida
J.V. Distributing, Inc.                                Michigan
KRGP Inc.                                              Ohio
KRLP Inc.                                              Ohio
The Kroger Co. of Michigan                             Michigan
Kroger Dedicated Logistics Co.                         Ohio
Kroger Group Cooperative, Inc.                         Ohio
Kroger Limited Partnership I                           Ohio
Kroger Limited Partnership II                          Ohio
Kroger Texas L.P.                                      Ohio
KU Acquisition Corporation                             Washington
Kwik Shop, Inc.                                        Kansas
Mini Mart, Inc.                                        Wyoming

                                      -38-

<PAGE>

Name of Guarantor                                      State of Organization

Peyton's-Southeastern, Inc.                            Tennessee
QFC Sub, Inc.                                          Washington
Quality Food Centers, Inc.                             Washington
Quality Food Holdings, Inc.                            Delaware
Quality Food, Inc.                                     Delaware
Quik Stop Markets, Inc.                                California
Ralphs Grocery Company                                 Delaware
Roundup Co.                                            Washington
Second Story, Inc.                                     Washington
Smith's Beverage of Wyoming, Inc.                      Wyoming
Smith's Food & Drug Centers, Inc.                      Delaware
THGP Co., Inc.                                         Pennsylvania
THLP Co., Inc.                                         Pennsylvania
Topvalco, Inc.                                         Ohio
Turkey Hill, L.P.                                      Pennsylvania
Wells Aircraft, Inc.                                   Kansas

                                      -39-

<PAGE>

STATE OF _________  )
                    ) ss.:
COUNTY OF ________  )

          On the 17/th/ day of June, 2002, before me personally came
_______________, to me known, who, being by me duly sworn, did depose and say
that he is __________________ of The Kroger Co., and ____________________ of
each of the Guarantors Listed on Schedule I hereto, corporations described in
and which executed the foregoing instrument; that he knows the seals of said
corporations; that the seals affixed to said instrument are such corporate
seals; that they were so affixed by authority of the Board of Directors of such
corporations, and that he signed his name thereto by like authority.

STATE OF _________  )
                    ) ss.:
COUNTY OF ________  )

          On the 17/th/ day of June, 2002, before me personally came
______________, to me known, who, being by me duly sworn, did depose and say
that he is ________________ of Rocket Newco, Inc. and Henpil, Inc., corporations
described in and which executed the foregoing instrument; that he knows the
seals of said corporations; that the seals affixed to said instrument are such
corporate seals; that they were so affixed by authority of the Board of
Directors of said corporations, and that he signed his name thereto by like
authority.

                                       -1-

<PAGE>

STATE OF _________  )
                    ) ss.:
COUNTY OF ________  )

          On the 17/th/ day of June, 2002, before me personally came
_______________, to me known, who, being by me duly sworn, did depose and say
that he is _________________ of Queen City Assurance, Inc., RJD Assurance, Inc.
and Vine Court Assurance Incorporated, one of the corporations described in and
which executed the foregoing instrument; that he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Boards of Directors of said
corporation, and that he signed his name thereto by like authority.

STATE OF _________  )
                    ) ss.:
COUNTY OF ________  )

          On the 17/th/ day of June, 2002, before me personally came
______________, to me known, who, being by me duly sworn, did depose and say
that he is ____________ of Richie's Inc., one of the corporations described in
and which executed the foregoing instrument; that he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Boards of Directors of said
corporation, and that he signed his name thereto by like authority.

                                      -2-

<PAGE>
STATE OF __________   )
                      )  ss.:
COUNTY OF _________   )

          On the 17/th/ day of June, 2002, before me personally came
_________________, to me known, who, being by me duly sworn, did depose and say
that he is a _____________ of U.S. Bank, N.A., one of the corporations described
in and which executed the foregoing instrument; that he knows the seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereto by like authority.

                                      -3-

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