Document:

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                               CREDIT AGREEMENT

                                     among

                         THE MANITOWOC COMPANY, INC.,

                               VARIOUS LENDERS,

                                      and

                            BANKERS TRUST COMPANY,
                            as ADMINISTRATIVE AGENT

                       ________________________________

                           Dated as of May 9, 2001

                       ________________________________

                        DEUTSCHE BANC ALEX. BROWN INC.,
                       as LEAD ARRANGER and BOOK MANAGER

                        BANC ONE CAPITAL MARKETS, INC.,
                             as SYNDICATION AGENT

                               FLEET BANK, N.A.,
                            as DOCUMENTATION AGENT

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                               TABLE OF CONTENTS
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SECTION 1.  Amount and Terms of Credit...............................    1

     1.01  The Commitments...........................................    1
     1.02  Minimum Amount of Each Borrowing..........................    4
     1.03  Notice of Borrowing.......................................    5
     1.04  Disbursement of Funds.....................................    6
     1.05  Notes.....................................................    7
     1.06  Conversions...............................................    8
     1.07  Pro Rata Borrowings.......................................    9
     1.08  Interest..................................................    9
     1.09  Interest Periods..........................................   10
     1.10  Increased Costs, Illegality, etc..........................   12
     1.11  Compensation..............................................   14
     1.12  Change of Lending Office; etc.............................   15
     1.13  Replacement of Lenders....................................   15
     1.14  Incremental B Term Loan Commitments.......................   17
     1.15  Incremental Revolving Loan Commitments....................   19
     1.16  Limitation on Additional Amounts..........................   21
     1.17  Special Provisions Regarding Revolving Loan Commitments
              and Indemnifying Lenders...............................   21

SECTION 2.  Letters of Credit........................................   25

     2.01  Letters of Credit.........................................   25
     2.02  Maximum Letter of Credit Outstandings; Final Maturities...   26
     2.03  Letter of Credit Requests; Minimum Stated Amount..........   26
     2.04  Letter of Credit Participations...........................   27
     2.05  Agreement to Repay Letter of Credit Drawings..............   29
     2.06  Increased Costs...........................................   30

SECTION 3.  Commitment Commission; Fees; Reductions of Commitment....   31

     3.01  Fees......................................................   31
     3.02  Voluntary Termination of Unutilized Revolving Loan
              Commitments............................................   32
     3.03  Mandatory Reduction of Commitments........................   33

SECTION 4.  Prepayments; Payments; Taxes.............................   33

     4.01  Voluntary Prepayments.....................................   33
     4.02  Mandatory Repayments......................................   36
     4.03  Method and Place of Payment...............................   42
     4.04  Net Payments..............................................   42
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                                      (i)
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SECTION 5.  Conditions Precedent to Credit Events on the Initial
            Borrowing Date...........................................    44

     5.01  Effective Date; Notes.....................................    45
     5.02  Officer's Certificate.....................................    45
     5.03  Opinions of Counsel.......................................    45
     5.04  Corporate Documents; Proceedings; etc.....................    45
     5.05  Shareholders' Agreements; Tax Sharing Agreements;
              Existing Indebtedness Agreements.......................    46
     5.06  Consummation of the Transaction...........................    46
     5.07  Adverse Change, Approvals.................................    47
     5.08  Litigation................................................    48
     5.09  Pledge Agreement..........................................    48
     5.10  Security Agreement........................................    48
     5.11  Subsidiaries Guaranty.....................................    49
     5.12  Mortgages; Title Insurance; Surveys; Landlord Waivers.....    49
     5.13  Financial Statements; Pro Forma Balance Sheet; Projections    50
     5.14  Solvency Certificate; Insurance Certificates..............    50
     5.15  Environmental and Hazardous Substance Analyses; etc.......    50
     5.16  Fees, etc.................................................    51

SECTION 6.  Conditions Precedent to All Credit Events................    51

     6.01  No Default; Representations and Warranties................    51
     6.02  Notice of Borrowing; Letter of Credit Request.............    51
     6.03  Regulation U..............................................    51

SECTION 7.  Representations, Warranties and Agreements...............    52

     7.01  Organizational Status.....................................    52
     7.02  Power and Authority.......................................    52
     7.03  No Violation..............................................    52
     7.04  Approvals.................................................    53
     7.05  Financial Statements; Financial Condition; Undisclosed
              Liabilities; Projections...............................    53
     7.06  Litigation................................................    54
     7.07  True and Complete Disclosure..............................    55
     7.08  Use of Proceeds; Margin Regulations.......................    55
     7.09  Tax Returns and Payments..................................    55
     7.10  Compliance with ERISA.....................................    56
     7.11  The Security Documents....................................    57
     7.12  Properties................................................    58
     7.13  Capitalization............................................    58
     7.14  Subsidiaries..............................................    58
     7.15  Compliance with Statutes, etc.............................    58
     7.16  Investment Company Act....................................    59
     7.17  Public Utility Holdings Company Act.......................    59
     7.18  Environmental Matters.....................................    59
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                                     (ii)
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     7.19  Labor Relations.....................................................      60
     7.20  Intellectual Property, etc..........................................      60
     7.21  Indebtedness........................................................      60
     7.22  Insurance...........................................................      60
     7.23  Representations and Warranties in Other Documents...................      60
     7.24  Subordination.......................................................      61

SECTION 8.  Affirmative Covenants..............................................      61

     8.01  Information Covenants...............................................      61
            (a)   Quarterly Financial Statements...............................      61
            (b)   Annual Financial Statements..................................      61
            (c)   Management Letters...........................................      62
            (d)   Budgets......................................................      62
            (e)   Officer's Certificates.......................................      62
            (f)   Notice of Default, Litigation and Material Adverse Effect....      63
            (g)   Other Reports and Filings....................................      63
            (h)   Environmental Matters........................................      63
            (i)   Bank Debt Ratings............................................      64
            (j)   Other Information............................................      64
     8.02  Books, Records and Inspection; Annual Meetings......................      64
     8.03  Maintenance of Property; Insurance..................................      64
     8.04  Existence; Franchises...............................................      65
     8.05  Compliance with Statutes, etc.......................................      65
     8.06  Compliance with Environmental Laws..................................      65
     8.07  ERISA...............................................................      66
     8.08  End of Fiscal Years; Fiscal Quarters................................      67
     8.09  Performance of Obligations..........................................      68
     8.10  Payment of Taxes....................................................      68
     8.11  Use of Proceeds.....................................................      68
     8.12  Additional Security; Further Assurances; etc........................      68
     8.13  Foreign Subsidiaries Security.......................................      69
     8.14  Permitted Acquisitions..............................................      70
     8.15  Ownership of Subsidiaries; etc......................................      71
     8.16  Interest Rate Protection............................................      72
     8.17  Margin Regulations..................................................      72

SECTION 9.  Negative Covenants.................................................      72

     9.01  Liens...............................................................      72
     9.02  Consolidation, Merger, Purchase or Sale of Assets, etc..............      75
     9.03  Dividends...........................................................      78
     9.04  Indebtedness........................................................      79
     9.05  Advances, Investments and Loans.....................................      81
     9.06  Transactions with Affiliates........................................      83
     9.07  Capital Expenditures................................................      84
     9.08  Minimum Consolidated Interest Coverage Ratio........................      85
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                                     (iii)
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     9.09  Minimum Consolidated EBITDA...............................   85
     9.10  Maximum Consolidated Senior Leverage Ratio................   86
     9.11  Maximum Consolidated Total Leverage Ratio.................   86
     9.12  Minimum Consolidated Fixed Charge Coverage Ratio..........   87
     9.13  Limitations on Prepayments of Certain Indebtedness;
               Modifications of Certain Indebtedness; Modifications
               of Certificate of Incorporation, By-Laws and Certain
               Other Agreements, etc.................................   87
     9.14  Limitation on Certain Restrictions on Subsidiaries........   88
     9.15  Limitation on Issuance of Capital Stock...................   88
     9.16  Business..................................................   88
     9.17  Limitation on Creation of Subsidiaries....................   89
     9.18  Rental Fleet..............................................   89

SECTION 10.  Events of Default.......................................   89

     10.01  Payments.................................................   89
     10.02  Representations, etc.....................................   89
     10.03  Covenants................................................   89
     10.04  Default Under Other Agreements...........................   90
     10.05  Bankruptcy, etc..........................................   90
     10.06  ERISA....................................................   90
     10.07  Security Documents.......................................   91
     10.08  Subsidiaries Guaranties..................................   91
     10.09  Judgments................................................   91
     10.10  Change of Control........................................   92

SECTION 11.  Definitions and Accounting Terms........................   92

     11.01  Defined Terms............................................   92

SECTION 12.  Administrative Agent....................................  124

     12.01  Appointment..............................................  124
     12.02  Nature of Duties.........................................  124
     12.03  Lack of Reliance on the Administrative Agent.............  124
     12.04  Certain Rights of the Administrative Agent...............  125
     12.05  Reliance.................................................  125
     12.06  Indemnification..........................................  125
     12.07  The Administrative Agent in its Individual Capacity......  125
     12.08  Holders..................................................  126
     12.09  Resignation by the Administrative Agent..................  126

SECTION 13.  Miscellaneous...........................................  127

     13.01  Payment of Expenses, etc.................................  127
     13.02  Right of Setoff..........................................  128
     13.03  Notices..................................................  129
     13.04  Benefit of Agreement; Assignments; Participations........  129
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                                     (iv)
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     13.05  No Waiver; Remedies Cumulative...........................    133
     13.06  Payments Pro Rata........................................    133
     13.07  Calculations; Computations...............................    134
     13.08  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER
               OF JURY TRIAL. .......................................    135
     13.09  Counterparts.............................................    136
     13.10  Effectiveness............................................    136
     13.11  Headings Descriptive.....................................    136
     13.12  Amendment or Waiver; etc.................................    136
     13.13  Survival.................................................    138
     13.14  Domicile of Loans........................................    139
     13.15  Register.................................................    139
     13.16  Confidentiality..........................................    139
     13.17  Judgment Currency........................................    140
     13.18  Euro.....................................................    141
     13.19  Post-Closing Actions.....................................    141
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                                      (v)
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SCHEDULE I     Commitments
SCHEDULE II    Lender Addresses
SCHEDULE III   Real Property
SCHEDULE IV    Plans
SCHEDULE V     Subsidiaries
SCHEDULE VI    Existing Indebtedness
SCHEDULE VII   Insurance
SCHEDULE VIII  Existing Liens
SCHEDULE IX    Existing Investments
SCHEDULE X     Associated Costs
SCHEDULE XI    Buy-Back Arrangements
SCHEDULE XII   Indebtedness to be Refinanced
SCHEDULE XIII  Post-Closing Matters

EXHIBIT A-1    Notice of Borrowing
EXHIBIT A-2    Notice of Conversion/Continuation
EXHIBIT B-1    A Term Note
EXHIBIT B-2    B Term Note
EXHIBIT B-3    Revolving Note
EXHIBIT B-4    Swingline Note
EXHIBIT C      Incremental B Term Loan Commitment Agreement
EXHIBIT D      Incremental Revolving Loan Commitment Agreement
EXHIBIT E      Letter of Credit Request
EXHIBIT F      Section 4.04(b)(ii) Certificate
EXHIBIT G      Opinion of Foley & Lardner
EXHIBIT H      Officers' Certificate
EXHIBIT I      Pledge Agreement
EXHIBIT J      Security Agreement
EXHIBIT K      Subsidiaries Guaranty
EXHIBIT L      Solvency Certificate
EXHIBIT M      Compliance Certificate
EXHIBIT N      Assignment and Assumption Agreement
EXHIBIT O      Intercompany Note

                                     (vi)
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          CREDIT AGREEMENT, dated as of May 9, 2001, among THE MANITOWOC
COMPANY, INC., a Wisconsin corporation (the "Borrower"), the Lenders party
hereto from time to time and BANKERS TRUST COMPANY, as Administrative Agent (in
such capacity, the "Administrative Agent") (all capitalized terms used herein
and defined in Section 11 are used herein as therein defined).

                             W I T N E S S E T H:
                             - - - - - - - - - -

          WHEREAS, subject to and upon the terms and conditions set forth
herein, the Lenders are willing to make available to the Borrower the respective
credit facilities provided for herein;

          NOW, THEREFORE, IT IS AGREED:

          SECTION 1. Amount and Terms of Credit.
                     --------------------------

          1.01  The Commitments. (a) Subject to and upon the terms and
                ---------------
conditions set forth herein, each Lender with an A Term Loan Commitment
severally agrees to make a term loan or term loans (each an "A Term Loan" and,
collectively, the "A Term Loans") to the Borrower, which A Term Loans (i) shall
be incurred pursuant to a single drawing on the Initial Borrowing Date, (ii)
shall be denominated in Dollars, (iii) except as hereinafter provided, shall, at
the option of the Borrower, be incurred and maintained as, and/or converted
into, Base Rate Loans or Eurodollar Loans, provided that, (A) except as
                                           --------
otherwise specifically provided in Section 1.10(b), all A Term Loans comprising
the same Borrowing shall at all times be of the same Type, and (B) unless either
the Administrative Agent has otherwise determined in its sole discretion or has
determined that the Syndication Date has occurred (at which time this clause (B)
shall no longer be applicable), prior to the 90th day following the Initial
Borrowing Date, A Term Loans may only be incurred and maintained as, and/or
converted into, Eurodollar Loans so long as all such outstanding Eurodollar
Loans, together with all outstanding B Term Loans that are maintained as
Eurodollar Loans and all outstanding Revolving Loans that are maintained as Euro
Rate Loans, are subject to an Interest Period of one month which begins and ends
on the same day, and (iv) shall be made by each such Lender in that aggregate
principal amount which does not exceed the A Term Loan Commitment of such Lender
on the Initial Borrowing Date. Once repaid, A Term Loans incurred hereunder may
not be reborrowed.

          (b)    Subject to and upon the terms and conditions set forth herein,
each Lender with an Initial B Term Loan Commitment severally agrees to make a
term loan or term loans (each an "Initial B Term Loan" and, collectively, the
"Initial B Term Loans") to the Borrower, which Initial B Term Loans (i) shall be
incurred pursuant to a single drawing on the Initial Borrowing Date, (ii) shall
be denominated in Dollars, (iii) except as hereinafter provided, shall, at the
option of the Borrower, be incurred and maintained as, and/or converted into,
Base Rate Loans or Eurodollar Loans, provided that, (A) except as otherwise
                                     --------
specifically provided in Section 1.10(b), all Initial B Term Loans comprising
the same Borrowing shall at all times be of the same Type, and (B) unless either
the Administrative Agent has otherwise determined in its sole discretion or has
determined that the Syndication Date has occurred (at which time this clause
<PAGE>

(B) shall no longer be applicable), prior to the 90th day following the Initial
Borrowing Date, Initial B Term Loans may only be incurred and maintained as,
and/or converted into, Eurodollar Loans so long as all such outstanding
Eurodollar Loans, together with all outstanding A Term Loans that are maintained
as Eurodollar Loans and all outstanding Revolving Loans that are maintained as
Euro Rate Loans, are subject to an Interest Period of one month which begins and
ends on the same day, and (iv) shall be made by each such Lender in that
aggregate principal amount which does not exceed the Initial B Term Loan
Commitment of such Lender on the Initial Borrowing Date. Once repaid, Initial B
Term Loans incurred hereunder may not be reborrowed.

          (c)  Subject to Section 1.14 and the other terms and conditions set
forth herein, each Lender with an Incremental B Term Loan Commitment severally
agrees to make a term loan or term loans (each, an "Incremental B Term Loan"
and, collectively, the "Incremental B Term Loans") to the Borrower, which
Incremental B Term Loans (i) shall be incurred pursuant to a single drawing on
the Incremental B Term Loan Borrowing Date (which date, in any event, shall be
the date of the effectiveness of the Incremental B Term Loan Commitment
Agreement pursuant to which such Incremental B Term Loans are to be made and
shall not be later than the Incremental Commitment Expiry Date), (ii) shall be
denominated in Dollars, (iii) shall be added to the then outstanding Borrowings
of Initial B Term Loans as provided in Section 1.14(c), and (iv) shall be made
by each such Lender in that aggregate principal amount which does not exceed the
Incremental B Term Loan Commitment of such Lender on the Incremental B Term Loan
Borrowing Date. Once repaid, Incremental B Term Loans incurred hereunder may not
be reborrowed.

          (d)  Subject to and upon the terms and conditions set forth herein,
each Lender with a Revolving Loan Commitment severally agrees to make, at any
time and from time to time on or after the Initial Borrowing Date and prior to
the Revolving Loan Maturity Date, a revolving loan or revolving loans (each a
"Revolving Loan" and, collectively, the "Revolving Loans") to the Borrower,
which Revolving Loans (i) shall be incurred and maintained in the Approved
Currency or Currencies as may be elected by the Borrower, (ii) if denominated in
Dollars, shall, at the option of the Borrower, be incurred and maintained as,
and/or converted into, Base Rate Loans or Eurodollar Loans, provided that, (A )
                                                            --------
except as otherwise specifically provided in Section 1.10(b), all Dollar
Revolving Loans comprising the same Borrowing shall at all times be of the same
Type, and (B) unless either the Administrative Agent has otherwise determined in
its sole discretion or has determined that the Syndication Date has occurred (at
which time this clause (B) shall no longer be applicable), prior to the 90th day
following the Initial Borrowing Date, Dollar Revolving Loans may only be
incurred and maintained as, and/or converted into, Eurodollar Loans so long as
all such outstanding Eurodollar Loans, together with all outstanding Foreign
Currency Revolving Loans and all outstanding Term Loans that are maintained as
Eurodollar Loans, are subject to an Interest Period of one month which begins
and ends on the same day, (iii) if denominated in a Foreign Currency, shall be
incurred and maintained as one or more Borrowings of Euro Rate Loans denominated
in such Foreign Currency, provided that, (A) no Foreign Currency Revolving Loans
                          --------
may be incurred if, after giving effect to such incurrence, the aggregate
Principal Amount of all outstanding Foreign Currency Revolving Loans would
exceed the lesser of (x) $50,000,000 and (y) the Total Available Revolving Loan
Commitment then in effect, and (B) unless the Administrative Agent has otherwise
determined in its sole

                                      -2-
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discretion or has determined that the Syndication Date has occurred (at which
time this clause (B) shall no longer be applicable), prior to the 90th day
following the Initial Borrowing Date, all outstanding Foreign Currency Revolving
Loans, together with all outstanding Revolving Loans and Term Loans that are
maintained as Eurodollar Loans, shall be subject to an Interest Period of one
month which begins and ends on the same day, (iv) may be repaid and reborrowed
in accordance with the provisions hereof, (v) shall not exceed for any such
Lender at any time outstanding that aggregate Principal Amount which, when added
to the product of (x) such Lender's RL Percentage and (y) the sum of (I) the
aggregate amount of all Letter of Credit Outstandings (exclusive of Unpaid
Drawings which are repaid with the proceeds of, and simultaneously with the
incurrence of, the respective incurrence of Revolving Loans) at such time and
(II) the aggregate Principal Amount of all Swingline Loans (exclusive of
Swingline Loans which are repaid with the proceeds of, and simultaneously with
the incurrence of, the respective incurrence of Revolving Loans) then
outstanding, equals the Available Revolving Loan Commitment of such Lender at
such time, and (vi) shall not exceed for all such Lenders at any time
outstanding that aggregate Principal Amount which, when added to the sum of (I)
the aggregate amount of all Letter of Credit Outstandings (exclusive of Unpaid
Drawings which are repaid with the proceeds of, and simultaneously with the
incurrence of, the respective incurrence of Revolving Loans) at such time and
(II) the aggregate Principal Amount of all Swingline Loans (exclusive of
Swingline Loans which are repaid with the proceeds of, and simultaneously with
the incurrence of, the respective incurrence of Revolving Loans) then
outstanding, equals the Total Available Revolving Loan Commitment at such time.

          (e)  Subject to and upon the terms and conditions set forth herein,
the Swingline Lender agrees to make, at any time and from time to time on or
after the Initial Borrowing Date and prior to the Swingline Expiry Date, a
revolving loan or revolving loans (each a "Swingline Loan" and, collectively,
the "Swingline Loans") to the Borrower, which Swingline Loans (i) shall be
incurred and maintained as Base Rate Loans, (ii) shall be denominated in
Dollars, (iii) may be repaid and reborrowed in accordance with the provisions
hereof, (iv) shall not exceed in aggregate Principal Amount at any time
outstanding, when combined with the aggregate Principal Amount of all Revolving
Loans then outstanding and the aggregate amount of all Letter of Credit
Outstandings at such time, an amount equal to the Total Available Revolving Loan
Commitment at such time, and (v) shall not exceed in aggregate Principal Amount
at any time outstanding the Maximum Swingline Amount. Notwithstanding anything
to the contrary contained in this Section 1.01(e), (i) the Swingline Lender
shall not be obligated to make any Swingline Loans at a time when a Lender
Default exists with respect to an RL Lender unless the Swingline Lender has
entered into arrangements satisfactory to it and the Borrower to eliminate the
Swingline Lender's risk with respect to the Defaulting Lender's or Lenders'
participation in such Swingline Loans, including by cash collateralizing such
Defaulting Lender's or Lenders' RL Percentage of the outstanding Swingline
Loans, and (ii) the Swingline Lender shall not make any Swingline Loan after it
has received written notice from the Borrower, any other Credit Party or the
Required Lenders stating that (x) one or more of the conditions specified in
Section 5 or 6 are not then satisfied, (y) the making of such Swingline Loans
would violate Section 1.01(e), or (z) a Default or an Event of Default exists
and is continuing until such time as the Swingline Lender shall have received
written notice (A) of rescission of all such

                                      -3-
<PAGE>

notices of Default or Event of Default from the party or parties originally
delivering such notice or notices or (B) of the waiver of such Default or Event
of Default by the Required Lenders.

          (f)  On any Business Day, the Swingline Lender may, in its sole
discretion, give notice to the RL Lenders that the Swingline Lender's
outstanding Swingline Loans shall be funded with one or more Borrowings of
Revolving Loans (provided that such notice shall be deemed to have been
                 --------
automatically given upon the occurrence of a Default or an Event of Default
under Section 10.05 or upon the exercise of any of the remedies provided in the
last paragraph of Section 10), in which case one or more Borrowings of Dollar
Revolving Loans constituting Base Rate Loans (each such Borrowing, a "Mandatory
Borrowing") shall be made on the immediately succeeding Business Day by all RL
Lenders pro rata based on each such RL Lender's RL Percentage (determined before
        --- ----
giving effect to any termination of the Revolving Loan Commitments pursuant to
the last paragraph of Section 10) and the proceeds thereof shall be applied
directly by the Swingline Lender to repay the Swingline Lender for such
outstanding Swingline Loans. Each RL Lender hereby irrevocably agrees to make
Revolving Loans upon one Business Day's notice pursuant to each Mandatory
Borrowing in the amount and in the manner specified in the preceding sentence
and on the date specified in writing by the Swingline Lender notwithstanding (i)
the amount of the Mandatory Borrowing may not comply with the Minimum Borrowing
Amount otherwise required hereunder, (ii) whether any conditions specified in
Section 6 are then satisfied, (iii) whether a Default or an Event of Default
then exists, (iv) the date of such Mandatory Borrowing, and (v) the amount of
the Total Revolving Loan Commitment or the Total Available Revolving Loan
Commitment at such time. In the event that any Mandatory Borrowing cannot for
any reason be made on the date otherwise required above (including, without
limitation, as a result of the commencement of a proceeding under the Bankruptcy
Code with respect to the Borrower), then each RL Lender hereby agrees that it
shall forthwith purchase (as of the date the Mandatory Borrowing would otherwise
have occurred, but adjusted for any payments received from the Borrower on or
after such date and prior to such purchase) from the Swingline Lender such
participations in the outstanding Swingline Loans as shall be necessary to cause
the RL Lenders to share in such Swingline Loans ratably based upon their
respective RL Percentages (determined before giving effect to any termination of
the Revolving Loan Commitments pursuant to the last paragraph of Section 10),
provided that (x) all interest payable on the Swingline Loans shall be for the
--------
account of the Swingline Lender until the date as of which the respective
participation is required to be purchased and, to the extent attributable to the
purchased participation, shall be payable to the participant from and after such
date and (y) at the time any purchase of participations pursuant to this
sentence is actually made, the purchasing RL Lender shall be required to pay the
Swingline Lender interest on the principal amount of participation purchased for
each day from and including the day upon which the Mandatory Borrowing would
otherwise have occurred to but excluding the date of payment for such
participation, at the overnight Federal Funds Rate for the first three days and
at the rate otherwise applicable to Revolving Loans maintained as Base Rate
Loans hereunder for each day thereafter.

          1.02   Minimum Amount of Each Borrowing. The aggregate principal
                 --------------------------------
amount of each Borrowing of Loans under a respective Tranche shall not be less
than the Minimum Borrowing Amount applicable to such Tranche.  More than one
Borrowing may occur on the same date, but at no time shall there be outstanding
more than twenty Borrowings of Eurodollar

                                      -4-
<PAGE>

Loans in the aggregate for all Tranches of Loans; provided, however, for every
                                                  --------  -------
$20,000,000 in the aggregate of Incremental B Term Loan Commitments and
Incremental Revolving Loan Commitments that the Borrower has obtained pursuant
to this Agreement, the Borrower shall be entitled to five additional Borrowings
of Euro Rate Loans hereunder.

          1.03 Notice of Borrowing. (a) Whenever the Borrower desires to incur
               -------------------
(x) Eurodollar Loans hereunder, it shall give the Administrative Agent at the
Notice Office at least three Business Days' prior notice of each Eurodollar Loan
to be incurred hereunder, (y) Foreign Currency Revolving Loans hereunder, it
shall give the Administrative Agent at the Notice Office at least four Business
Days' prior notice of each Foreign Currency Revolving Loan to be incurred
hereunder and (z) Base Rate Loans hereunder (excluding Swingline Loans and
Revolving Loans made pursuant to a Mandatory Borrowing), it shall give the
Administrative Agent at the Notice Office at least one Business Day's prior
notice of each Base Rate Loan to be incurred hereunder, provided that (in each
                                                        --------
case) any such notice shall be deemed to have been given on a certain day only
if given before 12:00 Noon (New York time) on such day. Each such notice (each a
"Notice of Borrowing"), except as otherwise expressly provided in Section 1.10,
shall be irrevocable and shall be in writing, or by telephone promptly confirmed
in writing, in the form of Exhibit A-1, appropriately completed to specify: (i)
the aggregate principal amount of the Loans to be incurred pursuant to such
Borrowing (stated in the applicable Approved Currency), (ii) the date of such
Borrowing (which shall be a Business Day), (iii) whether the Loans being
incurred pursuant to such Borrowing shall constitute A Term Loans, Initial B
Term Loans, Incremental B Term Loans or Revolving Loans, (iv) in the case of
Revolving Loans, the Approved Currency for such Revolving Loans, (v) in the case
of Term Loans and Dollar Revolving Loans, whether such Loans being incurred
pursuant to such Borrowing are to be initially maintained as Base Rate Loans or,
to the extent permitted hereunder, Eurodollar Loans and, if Eurodollar Loans,
the initial Interest Period to be applicable thereto, (vi) in the case of
Foreign Currency Revolving Loans, the initial Interest Period to be applicable
thereto, (vii) in the case of a Borrowing of Revolving Loans the proceeds of
which are to be utilized to finance, in whole or in part, the purchase price of
a Permitted Acquisition, the amount of the Total Unutilized Revolving Loan
Commitment (less the amount of the Blocked Revolving Loan Commitment then in
effect) after giving effect to such Borrowing, and (viii) in the case of a
Borrowing of Revolving Loans, the amount of the Blocked Revolving Loan
Commitment in effect immediately prior to giving effect to such Borrowing. The
Administrative Agent shall promptly give each Lender which is required to make
Loans of the Tranche specified in the respective Notice of Borrowing, notice of
such proposed Borrowing, of such Lender's proportionate share thereof and of the
other matters required by the immediately preceding sentence to be specified in
the Notice of Borrowing.

          (b)    (i)  Whenever the Borrower desires to incur Swingline Loans
hereunder, the Borrower shall give the Swingline Lender no later than 2:00 P.M.
(New York time) on the date that a Swingline Loan is to be incurred, written
notice or telephonic notice promptly confirmed in writing of each Swingline Loan
to be incurred hereunder. Each such notice shall be irrevocable and specify in
each case (A) the date of Borrowing (which shall be a Business Day), (B) the
aggregate principal amount of the Swingline Loans to be incurred pursuant to
such Borrowing and (C) the amount of the Blocked Revolving Loan Commitment in
effect immediately prior to giving effect to such Borrowing.

                                      -5-
<PAGE>

          (ii)   Mandatory Borrowings shall be made upon the notice specified in
Section 1.01(f), with the Borrower irrevocably agreeing, by its incurrence of
any Swingline Loan, to the making of the Mandatory Borrowings as set forth in
Section 1.01(f).

          (c)    Without in any way limiting the obligation of the Borrower to
confirm in writing any telephonic notice of any Borrowing or prepayment of
Loans, the Administrative Agent or the Swingline Lender, as the case may be, may
act without liability upon the basis of telephonic notice of such Borrowing or
prepayment, as the case may be, believed by the Administrative Agent or the
Swingline Lender, as the case may be, in good faith to be from the Chairman of
the Board, the President, the Vice President-Finance, the Chief Executive
Officer, the Chief Financial Officer, the Treasurer or any Assistant Treasurer
of the Borrower, or from any other authorized officer of the Borrower designated
in writing by the Borrower to the Administrative Agent as being authorized to
give such notices, prior to receipt of written confirmation. In each such case,
the Borrower hereby waives the right to dispute the Administrative Agent's or
Swingline Lender's record of the terms of such telephonic notice of such
Borrowing or prepayment of Loans, as the case may be, absent manifest error.

          1.04 Disbursement of Funds. No later than 1:00 P.M. (New York time) on
               ---------------------
the date specified in each Notice of Borrowing (or (x) in the case of Foreign
Currency Revolving Loans, no later than 10:00 A.M. (New York time) on the date
specified in the respective Notice of Borrowing, (y) in the case of Swingline
Loans, no later than 4:00 P.M. (New York time) on the date specified pursuant to
Section 1.03(b)(i) or (z) in the case of Mandatory Borrowings, no later than
1:00 P.M. (New York time) on the date specified in Section 1.01(f)), each Lender
with a Commitment of the respective Tranche will make available its pro rata
                                                                    --- ----
portion (determined in accordance with Section 1.07) of each such Borrowing
requested to be made on such date (or in the case of Swingline Loans, the
Swingline Lender will make available the full amount thereof). All such amounts
will be made available in the relevant Approved Currency and in immediately
available funds at the Payment Office, and the Administrative Agent will, except
in the case of Revolving Loans made pursuant to a Mandatory Borrowing, make
available to the Borrower at the Payment Office, in the relevant Approved
Currency and in immediately available funds, the aggregate of the amounts so
made available by the Lenders. Unless the Administrative Agent shall have been
notified by any Lender prior to the date of Borrowing that such Lender does not
intend to make available to the Administrative Agent such Lender's portion of
any Borrowing to be made on such date, the Administrative Agent may assume that
such Lender has made such amount available to the Administrative Agent on such
date of Borrowing and the Administrative Agent may (but shall not be obligated
to), in reliance upon such assumption, make available to the Borrower a
corresponding amount. If such corresponding amount is not in fact made available
to the Administrative Agent by such Lender, the Administrative Agent shall be
entitled to recover such corresponding amount on demand from such Lender. If
such Lender does not pay such corresponding amount forthwith upon the
Administrative Agent's demand therefor, the Administrative Agent shall promptly
notify the Borrower and the Borrower shall immediately pay such corresponding
amount to the Administrative Agent. The Administrative Agent also shall be
entitled to recover on demand from such Lender or the Borrower, as the case may
be, interest on such corresponding amount in respect of each day from the date
such corresponding amount was made available by the Administrative Agent to the
Borrower until the date such corresponding amount is recovered by the
Administrative Agent, at a rate per annum equal to (i)

                                      -6-
<PAGE>

if recovered from such Lender, the overnight Federal Funds Rate (or, in the case
of Foreign Currency Revolving Loans, the Administrative Agent's customary rate
for interbank advances) for the first three days and at the interest rate
otherwise applicable to such Loans for each day thereafter and (ii) if recovered
from the Borrower, the rate of interest applicable to the respective Borrowing,
as determined pursuant to Section 1.08. Nothing in this Section 1.04 shall be
deemed to relieve any Lender from its obligation to make Loans hereunder or to
prejudice any rights which the Borrower may have against any Lender as a result
of any failure by such Lender to make Loans hereunder.

          1.05 Notes.  (a)  The Borrower's obligation to pay the principal of,
               -----
and interest on, the Loans made by each Lender shall be evidenced in the
Register maintained by the Administrative Agent pursuant to Section 13.15 and
shall, if requested by such Lender, also be evidenced (i) if A Term Loans, by a
promissory note duly executed and delivered by the Borrower substantially in the
form of Exhibit B-1, with blanks appropriately completed in conformity herewith
(each an "A Term Note" and, collectively, the "A Term Notes"), (ii) if B Term
Loans, by a promissory note duly executed and delivered by the Borrower
substantially in the form of Exhibit B-2, with blanks appropriately completed in
conformity herewith (each a "B Term Note" and, collectively, the "B Term
Notes"), (iii) if Revolving Loans, by a promissory note duly executed and
delivered by the Borrower substantially in the form of Exhibit B-3, with blanks
appropriately completed in conformity herewith (each a "Revolving Note" and,
collectively, the "Revolving Notes"), and (iv) if Swingline Loans, by a
promissory note duly executed and delivered by the Borrower substantially in the
form of Exhibit B-4, with blanks appropriately completed in conformity herewith
(the "Swingline Note").

          (b)    The A Term Note issued to each Lender that has an A Term Loan
Commitment or outstanding A Term Loans shall (i) be executed by the Borrower,
(ii) be payable to such Lender or its registered assigns and be dated the
Initial Borrowing Date (or, if issued after the Initial Borrowing Date, be dated
the date of issuance thereof), (iii) be in a stated principal amount (expressed
in Dollars) equal to the A Term Loans made by such Lender on the Initial
Borrowing Date (or, in the case of any A Term Note issued after the Initial
Borrowing Date, be in a stated principal amount (expressed in Dollars) equal to
the outstanding principal amount of the A Term Loans of such Lender on the date
of the issuance thereof) and be payable in the outstanding principal amount of A
Term Loans evidenced thereby, (iv) mature on the A Term Loan Maturity Date, (v)
bear interest as provided in the appropriate clause of Section 1.08 in respect
of the Base Rate Loans and Eurodollar Loans, as the case may be, evidenced
thereby, (vi) be subject to voluntary prepayment as provided in Section 4.01,
and mandatory repayment as provided in Section 4.02, and (vii) be entitled to
the benefits of this Agreement and the other Credit Documents.

          (c)    The B Term Note issued to each Lender that has a B Term Loan
Commitment or outstanding B Term Loans shall (i) be executed by the Borrower,
(ii) be payable to such Lender or its registered assigns and be dated the
Initial Borrowing Date (or, if issued after the Initial Borrowing Date, be dated
the date of issuance thereof), (iii) be in a stated principal amount (expressed
in Dollars) equal to the B Term Loans made by such Lender on the Initial
Borrowing Date (or, in the case of any B Term Note issued after the Initial
Borrowing Date, be in a stated principal amount (expressed in Dollars) equal to
the outstanding principal amount of the B Term

                                      -7-
<PAGE>

Loans of such Lender on the date of the issuance thereof) and be payable in the
outstanding principal amount of B Term Loans evidenced thereby, (iv) mature on
the B Term Loan Maturity Date, (v) bear interest as provided in the appropriate
clause of Section 1.08 in respect of the Base Rate Loans and Eurodollar Loans,
as the case may be, evidenced thereby, (vi) be subject to voluntary prepayment
as provided in Section 4.01, and mandatory repayment as provided in Section
4.02, and (vii) be entitled to the benefits of this Agreement and the other
Credit Documents.

          (d)    The Revolving Note issued to each Lender that has a Revolving
Loan Commitment or outstanding Revolving Loans shall (i) be executed by the
Borrower, (ii) be payable to such Lender or its registered assigns and be dated
the Initial Borrowing Date (or, if issued after the Initial Borrowing Date, be
dated the date of the issuance thereof), (iii) be in a stated principal amount
(expressed in Dollars) equal to the Revolving Loan Commitment of such Lender
(or, if issued after the termination thereof, be in a stated principal amount
(expressed in Dollars) equal to the outstanding Revolving Loans of such Lender
at such time) and be payable in the applicable Approved Currency in the
outstanding principal amount of the Revolving Loans evidenced thereby, provided
                                                                       --------
that if, because of fluctuations in exchange rates after the issuance of any
Revolving Note, the stated principal amount of such Revolving Note of any such
Lender would not be at least as great as the principal amount (taking the Dollar
Equivalent of all Foreign Currency Revolving Loans evidenced thereby) of such
Revolving Loans made by such Lender to the Borrower at any time outstanding,
such Lender may request (and in such case the Borrower shall promptly execute
and deliver) a new Revolving Note in an amount equal to the aggregate principal
amount (taking the Dollar Equivalent of all Foreign Currency Revolving Loans
evidenced thereby) of such Revolving Loans of such Lender outstanding on the
date of the issuance of such new Revolving Note, (iv) mature on the Revolving
Loan Maturity Date, (v) bear interest as provided in the appropriate clause of
Section 1.08 in respect of the Base Rate Loans and Euro Rate Loans, as the case
may be, evidenced thereby, (vi) be subject to voluntary prepayment as provided
in Section 4.01, and mandatory repayment as provided in Section 4.02, and (vii)
be entitled to the benefits of this Agreement and the other Credit Documents.

          (e)    The Swingline Note issued to the Swingline Lender shall (i) be
executed by the Borrower, (ii) be payable to the Swingline Lender or its
registered assigns and be dated the Initial Borrowing Date, (iii) be in a stated
principal amount (expressed in Dollars) equal to the Maximum Swingline Amount
and be payable in the outstanding principal amount of the Swingline Loans
evidenced thereby from time to time, (iv) mature on the Swingline Expiry Date,
(v) bear interest as provided in the appropriate clause of Section 1.08 in
respect of the Base Rate Loans evidenced thereby, (vi) be subject to voluntary
prepayment as provided in Section 4.01, and mandatory repayment as provided in
Section 4.02, and (vii) be entitled to the benefits of this Agreement and the
other Credit Documents.

          (f)    Each Lender will note on its internal records the amount of
each Loan made by it and each payment in respect thereof and will prior to any
transfer of any of its Notes endorse on the reverse side thereof the outstanding
principal amount of Loans evidenced thereby. Failure to make any such notation
or any error in such notation shall not affect the Borrower's obligations in
respect of such Loans.

                                      -8-
<PAGE>

          1.06 Conversions. The Borrower shall have the option to convert, on
               -----------
any Business Day, all or a portion equal to at least the Minimum Borrowing
Amount of the outstanding principal amount of Loans (other than Foreign Currency
Revolving Loans and Swingline Loans which may not be converted pursuant to this
Section 1.06) made pursuant to one or more Borrowings (so long as of the same
Tranche) of one or more Types of Loans into a Borrowing (of the same Tranche) of
another Type of Loan, provided that, (i) except as otherwise provided in Section
                      --------
1.10(b), Eurodollar Loans may be converted into Base Rate Loans only on the last
day of an Interest Period applicable to the Loans being converted and no such
partial conversion of Eurodollar Loans shall reduce the outstanding principal
amount of such Eurodollar Loans made pursuant to a single Borrowing to less than
the Minimum Borrowing Amount applicable thereto, (ii) Base Rate Loans may not be
converted into Eurodollar Loans if a Default or an Event of Default is in
existence on the date of the conversion and either the Administrative Agent or
the Required Lenders have notified the Borrower that such conversions are no
longer permitted (which notice may be given by the Administrative Agent or the
Required Lenders in their sole discretion), provided that no such notice shall
                                            --------
be required if a Default or an Event of Default under Section 10.05 exists and
is continuing (in which case Base Rate Loans may not be converted into
Eurodollar Loans), (iii) unless the Administrative Agent has otherwise
determined in its sole discretion or has determined that the Syndication Date
has occurred (at which time this clause (iii) shall no longer be applicable),
prior to the 90th day following the Initial Borrowing Date, conversions of Base
Rate Loans into Eurodollar Loans shall be subject to the provisions of clause
(B) of the proviso in each of Sections 1.01(a)(iii), 1.01(b)(iii) and
1.01(d)(ii), and (iv) no conversion pursuant to this Section 1.06 shall result
in a greater number of Borrowings of Euro Rate Loans than is permitted under
Section 1.02. Each such conversion shall be effected by the Borrower by giving
the Administrative Agent at the Notice Office prior to 12:00 Noon (New York
time) at least three Business Days' prior notice (each a "Notice of
Conversion/Continuation") in the form of Exhibit A-2, appropriately completed to
specify the Loans to be so converted, the Borrowing or Borrowings pursuant to
which such Loans were incurred and, if to be converted into Eurodollar Loans,
the Interest Period to be initially applicable thereto. The Administrative Agent
shall give each Lender prompt notice of any such proposed conversion affecting
any of its Loans. Upon any such conversion the proceeds thereof will be deemed
to be applied directly on the day of such conversion to prepay the outstanding
principal amount of the Loans being converted.

          1.07 Pro Rata Borrowings. All Borrowings of Loans under this Agreement
               -------------------
shall be incurred from the Lenders pro rata on the basis of their A Term Loan
                                   --- ----
Commitments, Initial B Term Loan Commitments, Incremental B Term Loan
Commitments or Revolving Loan Commitments, as the case may be. It is understood
that no Lender shall be responsible for any default by any other Lender of its
obligation to make Loans hereunder and that each Lender shall be obligated to
make the Loans provided to be made by it hereunder, regardless of the failure of
any other Lender to make its Loans hereunder.

          1.08 Interest. (a) The Borrower agrees to pay interest in respect of
               --------
the unpaid principal amount of each Base Rate Loan from the date of Borrowing
thereof until the earlier of (i) the maturity thereof (whether by acceleration
or otherwise) and (ii) the conversion of such Base Rate Loan to a Eurodollar
Loan pursuant to Section 1.06 or 1.09, as applicable, at a rate per

                                      -9-
<PAGE>

annum which shall be equal to the sum of the Applicable Margin plus the Base
Rate each as in effect from time to time.

          (b)    The Borrower agrees to pay interest in respect of the unpaid
principal amount of each Euro Rate Loan from the date of Borrowing thereof until
the earlier of (i) the maturity thereof (whether by acceleration or otherwise)
and (ii) the conversion of such Euro Rate Loan to a Base Rate Loan pursuant to
Section 1.06, 1.09 or 1.10, as applicable, at a rate per annum which shall,
during each Interest Period applicable thereto, be equal to the sum of the
Applicable Margin as in effect from time to time during such Interest Period
plus the applicable Euro Rate for such Interest Period plus, in the case of a
Foreign Currency Revolving Loan, any Associated Costs.

          (c)    Overdue principal and, to the extent permitted by law, overdue
interest in respect of each Loan and any other overdue amounts payable hereunder
or under any other Credit Document shall, in each case, bear interest at a rate
per annum (i) in the case of overdue principal of, and interest on, Foreign
Currency Revolving Loans, equal to 2% in excess of the rate then borne by such
Foreign Currency Revolving Loans plus any Associated Costs, (ii) in the case of
overdue principal of, and interest on, Term Loans and Dollar Revolving Loans,
equal to the greater of (x) the rate which is 2% in excess of the rate then
borne by such Loans and (y) the rate which is 2% in excess of the rate otherwise
applicable to Base Rate Loans of the respective Tranche from time to time, and
(iii) in the case of all other overdue amounts payable hereunder and under any
other Credit Document, equal to the rate per annum equal to the rate which is 2%
in excess of the rate applicable to Dollar Revolving Loans maintained as Base
Rate Loans from time to time. Interest which accrues under this Section 1.08(c)
shall be payable on demand.

          (d)    Accrued (and theretofore unpaid) interest shall be payable (i)
in respect of each Base Rate Loan, (x) quarterly in arrears on each Quarterly
Payment Date, (y) on the date of any repayment or prepayment in full of all
outstanding Base Rate Loans of any Tranche, and (z) at maturity (whether by
acceleration or otherwise) and, after such maturity, on demand, and (ii) in
respect of each Euro Rate Loan, (x) on the last day of each Interest Period
applicable thereto and, in the case of an Interest Period in excess of three
months, on each date occurring at three month intervals after the first day of
such Interest Period, and (y) on the date of any repayment or prepayment (on the
amount repaid or prepaid), at maturity (whether by acceleration or otherwise)
and, after such maturity, on demand.

          (e)    Upon each Interest Determination Date, the Administrative Agent
shall determine the applicable Euro Rate for each Interest Period applicable to
the respective Euro Rate Loans and shall promptly notify the Borrower and the
Lenders thereof. Each such determination shall, absent manifest error, be final
and conclusive and binding on all parties hereto.

          1.09 Interest Periods.  At the time the Borrower gives any Notice of
               ----------------
Borrowing or Notice of Conversion/Continuation in respect of the making of, or
conversion into, any Euro Rate Loan (in the case of the initial Interest Period
applicable thereto) or prior to 12:00 Noon (New York time) on the third Business
Day (or, in the case of a Foreign Currency Revolving Loan, prior to 12:00 Noon
(New York time) on the fourth Business Day) prior to the expiration

                                      -10-
<PAGE>

of an Interest Period applicable to such Euro Rate Loan (in the case of any
subsequent Interest Period), the Borrower shall have the right to elect the
interest period (each an "Interest Period") applicable to such Euro Rate Loan,
which Interest Period shall, at the option of the Borrower (but otherwise
subject to the provisions of clause (B) of the proviso in each of Sections
1.01(a)(iii), 1.01(b)(iii), 1.01(d)(ii) and 1.01(d)(iii)), be a one, two, three,
six, or to the extent consented to by all of the Lenders under a respective
Tranche, a nine-month period, provided that (in each case):
                              --------

           (i)      all Euro Rate Loans comprising a Borrowing shall at all
     times have the same Interest Period;

           (ii)     the initial Interest Period for any Euro Rate Loan shall
     commence on the date of Borrowing of such Euro Rate Loan (including, in the
     case of Eurodollar Loans, the date of any conversion thereto from a Base
     Rate Loan) and each Interest Period occurring thereafter in respect of such
     Euro Rate Loan shall commence on the day on which the next preceding
     Interest Period applicable thereto expires;

           (iii)    if any Interest Period for a Euro Rate Loan begins on a day
     for which there is no numerically corresponding day in the calendar month
     at the end of such Interest Period, such Interest Period shall end on the
     last Business Day of such calendar month;

           (iv)     if any Interest Period for a Euro Rate Loan would otherwise
     expire on a day which is not a Business Day, such Interest Period shall
     expire on the next succeeding Business Day; provided, however, that if any
                                                 --------  -------
     Interest Period for a Euro Rate Loan would otherwise expire on a day which
     is not a Business Day but is a day of the month after which no further
     Business Day occurs in such month, such Interest Period shall expire on the
     next preceding Business Day;

           (v)      unless the Required Lenders otherwise agree, no Interest
     Period of longer than one month may be selected for a Foreign Currency
     Revolving Loan at any time when a Default or an Event of Default is then in
     existence;

           (vi)     no Interest Period for a Term Loan or a Dollar Revolving
     Loan may be selected at any time when a Default or an Event of Default is
     then in existence and either the Administrative Agent or the Required
     Lenders have notified the Borrower that such selections are no longer
     permitted (which notice may be given by the Administrative Agent or the
     Required Lenders in their sole discretion), provided that no such notice
                                                 --------
     shall be required if a Default or an Event of Default under Section 10.05
     exists and is continuing (in which case Interest Periods may not be
     selected);

           (vii)    no Interest Period in respect of any Borrowing of any
     Tranche of Loans shall be selected which extends beyond the respective
     Maturity Date for such Tranche of Loans; and

           (viii)   no Interest Period in respect of any Borrowing of A Term
     Loans or B Term Loans shall be selected which extends beyond any date upon
     which a mandatory repayment of such A Term Loans or B Term Loans will be
     required to be made under Section

                                      -11-
<PAGE>

     4.02(b) or (c) if the aggregate principal amount of such A Term Loans or B
     Term Loans which have Interest Periods which will expire after such date
     will be in excess of the aggregate principal amount of such A Term Loans or
     B Term Loans then outstanding less the aggregate amount of such required
     repayment.

          If by 12:00 Noon (New York time) on the third Business Day (or, in the
case of a Foreign Currency Revolving Loan, by 12:00 Noon (New York time) on the
fourth Business Day) preceding the expiration of any Interest Period applicable
to a Borrowing of Euro Rate Loans, the Borrower has failed to elect, or is not
permitted to elect, a new Interest Period to be applicable to such Euro Rate
Loans as provided above, the Borrower shall be deemed to have elected (x) in the
case of Eurodollar Loans, to convert such Eurodollar Loans into Base Rate Loans,
and (y) in the case of Foreign Currency Revolving Loans, a one-month Interest
Period for such Foreign Currency Revolving Loans, in each case effective as of
the expiration of such current Interest Period.

          1.10   Increased Costs, Illegality, etc. (a) In the event that any
                 ---------------------------------
Lender shall have determined (which determination shall, absent manifest error,
be final and conclusive and binding upon all parties hereto but, with respect to
clauses (i) and (iv) below, may be made only by the Administrative Agent):

          (i)    on any Interest Determination Date that, by reason of any
     changes arising after the date of this Agreement affecting the relevant
     interbank market, adequate and fair means do not exist for ascertaining the
     applicable interest rate on the basis provided for in the definition of the
     relevant Euro Rate; or

          (ii)   at any time, that such Lender shall incur increased costs or
     reductions in the amounts received or receivable hereunder with respect to
     any Euro Rate Loan because of (x) any change since the Effective Date in
     any applicable law or governmental rule, regulation, order, guideline or
     request (whether or not having the force of law) or in the interpretation
     or administration thereof and including the introduction of any new law or
     governmental rule, regulation, order, guideline or request, such as, for
     example, but not limited to: (A) a change in the basis of taxation of
     payment to any Lender of the principal of or interest on such Euro Rate
     Loans or any other amounts payable hereunder (except for changes in the
     rate of tax on, or determined by reference to, the net income or net
     profits of such Lender pursuant to the laws of the jurisdiction in which it
     is organized or in which its principal office or applicable lending office
     is located or any subdivision thereof or therein) or (B) a change in
     official reserve requirements, but, in all events, excluding reserves
     required under Regulation D to the extent included in the computation of
     the Eurodollar Rate and/or (y) other circumstances arising since the
     Effective Date affecting such Lender, the relevant interbank market or the
     position of such Lender in such market; or

          (iii)  at any time, that the making or continuance of any Euro Rate
     Loan has been made (x) unlawful by any law or governmental rule, regulation
     or order, (y) impossible by compliance by any Lender in good faith with any
     governmental request (whether or not

                                      -12-
<PAGE>

     having force of law) or (z) impracticable as a result of a contingency
     occurring after the Effective Date which materially and adversely affects
     the relevant interbank market; or

           (iv)  at any time that any Foreign Currency is not available in
     sufficient amounts to fund any Borrowing of Foreign Currency Revolving
     Loans denominated in such Foreign Currency;

then, and in any such event, such Lender (or the Administrative Agent, in the
case of clause (i) or (iv) above) shall promptly give notice (by telephone
promptly confirmed in writing) to the Borrower and, except in the case of
clauses (i) and (iv) above, to the Administrative Agent of such determination
(which notice the Administrative Agent shall promptly transmit to each of the
other Lenders). Thereafter (w) in the case of clause (i) above, (A) in the event
that Eurodollar Loans are so affected, Eurodollar Loans shall no longer be
available until such time as the Administrative Agent notifies the Borrower and
the Lenders that the circumstances giving rise to such notice by the
Administrative Agent no longer exist, and any Notice of Borrowing or Notice of
Conversion/Continuation given by the Borrower with respect to Eurodollar Loans
which have not yet been incurred (including by way of conversion) shall be
deemed rescinded by the Borrower, and (B) in the event that any Foreign Currency
Revolving Loans are so affected, the applicable Euro Rate shall be determined on
the basis provided in the last sentence of the definition of EURIBOR or Sterling
LIBOR, as the case may be, (x) in the case of clause (ii) above, the Borrower
agrees, subject to Section 1.16, to pay to such Lender, upon such Lender's
written request therefor, such additional amounts (in the form of an increased
rate of, or a different method of calculating, interest or otherwise as such
Lender in its sole discretion shall determine) as shall be required to
compensate such Lender for such increased costs or reductions in amounts
received or receivable hereunder (a written notice as to the additional amounts
owed to such Lender, showing in reasonable detail the basis therefor and the
calculation thereof, submitted to the Borrower by such Lender shall, absent
manifest error, be final and conclusive and binding on all the parties hereto),
(y) in the case of clause (iii) above, the Borrower shall take one of the
actions specified in Section 1.10(b) as promptly as possible and, in any event,
within the time period required by law, and (z) in the case of clause (iv)
above, Foreign Currency Revolving Loans in the affected Foreign Currency (other
than any such Foreign Currency Revolving Loans which have theretofore been
funded) shall no longer be available until such time as the Administrative Agent
notifies the Borrower and the Lenders that the circumstances giving rise to such
notice by the Administrative Agent no longer exist, and any Notice of Borrowing
given by the Borrower with respect to such Foreign Currency Revolving Loans
which have not yet been incurred shall be deemed rescinded by the Borrower.

          (b)    At any time that any Euro Rate Loan is affected by the
circumstances described in Section 1.10(a)(ii), the Borrower may, and in the
case of any Euro Rate Loan affected by the circumstances described in Section
1.10(a)(iii), the Borrower shall, either (x) if the affected Euro Rate Loan is
then being made initially or pursuant to a conversion, cancel such Borrowing by
giving the Administrative Agent telephonic notice (confirmed in writing) on the
same date that the Borrower was notified by the affected Lender or the
Administrative Agent pursuant to Section 1.10(a)(ii) or (iii) or (y) if the
affected Euro Rate Loan is then outstanding, upon at least three Business Days'
written notice to the Administrative Agent and the affected Lender, (A) in the
case of a Eurodollar Loan, require the affected Lender to convert such

                                      -13-
<PAGE>

Eurodollar Loan into a Base Rate Loan and (B) in the case of a Foreign Currency
Revolving Loan, repay such Foreign Currency Revolving Loan in full; provided
                                                                    --------
that (i) if the circumstances described in Section 1.10(a)(iii) apply to any
Foreign Currency Revolving Loan, the Borrower may, in lieu of taking the actions
described above in this Section 1.10(b), maintain such Foreign Currency
Revolving Loan outstanding, in which case the applicable Euro Rate shall be
determined on the basis provided in the last sentence of the definition of
EURIBOR or Sterling LIBOR, as the case may be, unless the maintenance of such
Foreign Currency Revolving Loan outstanding on such basis would not stop the
conditions described in Section 1.10(a)(iii) from existing (in which case the
actions described above, without giving effect to this proviso, shall be
required to be taken), and (ii) if more than one Lender is affected at any time,
then all affected Lenders must be treated the same pursuant to this Section
1.10(b).

          (c)    If any Lender determines that after the Effective Date the
introduction of or any change in any applicable law or governmental rule,
regulation, order, guideline, directive or request (whether or not having the
force of law) concerning capital adequacy, or any change in interpretation or
administration thereof by the NAIC or any governmental authority, central bank
or comparable agency, will have the effect of increasing the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender based on the existence of such Lender's Commitments
hereunder or its obligations hereunder, then the Borrower agrees to pay to such
Lender, upon its written demand therefor, such additional amounts as shall,
subject to Section 1.16, be required to compensate such Lender or such other
corporation for the increased cost to such Lender or such other corporation or
the reduction in the rate of return to such Lender or such other corporation as
a result of such increase of capital. In determining such additional amounts,
each Lender will act reasonably and in good faith and will use averaging and
attribution methods which are reasonable, provided that such Lender's
                                          --------
determination of compensation owing under this Section 1.10(c) shall, absent
manifest error, be final and conclusive and binding on all the parties hereto.
Each Lender, upon determining that any additional amounts will be payable
pursuant to this Section 1.10(c), will give prompt written notice thereof to the
Borrower, which notice shall show in reasonable detail the basis therefor and
the calculation thereof.

          (d)    In the event that any Lender shall determine (which
determination shall, absent manifest error, be final and conclusive and binding
on all parties hereto) at any time that such Lender is required to maintain
reserves (including, without limitation, any marginal, emergency, supplemental,
special or other reserves required by applicable law) which have been
established by any Federal, state, local or foreign court or governmental
agency, authority, instrumentality or regulatory body with jurisdiction over
such Lender (including any branch, Affiliate or funding office thereof) in
respect of any Foreign Currency Revolving Loans or any category of liabilities
which includes deposits by reference to which the interest rate on any Foreign
Currency Revolving Loan is determined or any category of extensions of credit or
other assets which includes loans by a non-United States office of any Lender to
non-United States residents, then, unless such reserves are included in the
calculation of the interest rate applicable to such Foreign Currency Revolving
Loans or in Section 1.10(a)(ii), such Lender shall promptly notify the
Administrative Agent and the Borrower in writing specifying the additional
amounts required to indemnify such Lender against the cost of maintaining such
reserves (such written notice to provide in reasonable detail a computation of
such additional amounts) and, subject to Section

                                      -14-
<PAGE>

1.16, the Borrower shall, and shall be obligated to, pay to such Lender such
specified amounts as additional interest at the time that the Borrower is
otherwise required to pay interest in respect of such Foreign Currency Revolving
Loan or, if later, on written demand therefor by such Lender.

          1.11 Compensation. The Borrower agrees to compensate each Lender, upon
               ------------
its written request (which request shall set forth in reasonable detail the
basis for requesting such compensation), for all losses, expenses and
liabilities (including, without limitation, any loss, expense or liability
incurred by reason of the liquidation or reemployment of deposits or other funds
required by such Lender to fund its Euro Rate Loans but excluding loss of
anticipated profits) which such Lender may sustain: (i) if for any reason (other
than a default by such Lender or the Administrative Agent) a Borrowing of, or
conversion from or into, Euro Rate Loans does not occur on a date specified
therefor in a Notice of Borrowing or Notice of Conversion/Continuation (whether
or not withdrawn by the Borrower or deemed withdrawn pursuant to Section
1.10(a)); (ii) if any prepayment or repayment (including any prepayment or
repayment made pursuant to Section 4.01, Section 4.02 or as a result of an
acceleration of the Loans pursuant to Section 10) or conversion of any of its
Euro Rate Loans occurs on a date which is not the last day of an Interest Period
with respect thereto; (iii) if any prepayment of any of its Euro Rate Loans is
not made on any date specified in a notice of prepayment given by the Borrower;
or (iv) as a consequence of (x) any other default by the Borrower to repay Euro
Rate Loans when required by the terms of this Agreement or any Note held by such
Lender or (y) any election made pursuant to Section 1.10(b).

          1.12 Change of Lending Office; etc. (a) Each Lender may at any time or
               ------------------------------
from time to time designate, by written notice to the Administrative Agent to
the extent not already reflected on Schedule II, one or more lending offices
(which, for this purpose, may include lending affiliates of the respective
Lender) for the various Foreign Currency Revolving Loans made by such Lender
(including, without limitation, by designating a separate lending office (or
affiliate) to act as such with respect to Dollar Revolving Loans versus Foreign
Currency Revolving Loans); provided that for designations made after the
                           --------
Effective Date, to the extent such designation shall result in increased costs
under Section 1.10, 2.06 or 4.04 in excess of those which would be charged in
the absence of the designation of a different lending office (including a
different affiliate of the respective Lenders), then the Borrower shall not be
obligated to pay such excess increased costs (although the Borrower, in
accordance with and pursuant to the other provisions of this Agreement, shall be
obligated to pay the costs which would apply in the absence of such designation
and any subsequent increased costs of the type described in Section 1.10, 2.06
or 4.04 resulting from changes after the date of the respective designation).
Each lending office and affiliate of any Lender designated as provided above
shall, for all purposes of this Agreement, be treated in the same manner as the
respective Lender (and shall be entitled to all indemnities and similar
provisions in respect of its acting as such hereunder).

          (b)    Each Lender agrees that on the occurrence of any event giving
rise to the operation of Section 1.10(a)(ii) or (iii), Section 1.10(c), Section
1.10(d), Section 2.06 or Section 4.04 with respect to such Lender, it will, if
requested by the Borrower, use reasonable efforts (subject to overall policy
considerations of such Lender) to designate another lending office for any Loans
or Letters of Credit affected by such event, provided that such designation is
                                             --------
made on such terms that such Lender and its lending office suffer no economic,
legal or regulatory

                                      -15-
<PAGE>

disadvantage, with the object of avoiding the consequence of the event giving
rise to the operation of such Section. Nothing in this Section 1.12 shall affect
or postpone any of the obligations of the Borrower or the right of any Lender
provided in Sections 1.10, 2.06 and 4.04.

          1.13  Replacement of Lenders.  (x)  If any Lender becomes a Defaulting
                ----------------------
Lender or otherwise defaults in its obligations to make Loans, (y) upon the
occurrence of an event giving rise to the operation of Section 1.10(a)(ii) or
(iii), Section 1.10(c), Section 1.10(d), Section 2.06 or Section 4.04 with
respect to any Lender which results in such Lender charging to the Borrower
increased costs in excess of those being generally charged by the other Lenders
or (z) in the case of a refusal by a Lender or an Indemnifying Lender to consent
to certain proposed changes, waivers, discharges or terminations with respect to
this Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 13.12(b), the Borrower shall have the right, if no
Default or Event of Default then exists (or, in the case of preceding clause
(z), will exist immediately after giving effect to such replacement), to replace
such Lender (the "Replaced Lender") or such Indemnifying Lender (the "Replaced
Indemnifying Lender"), as the case may be, with one or more other Eligible
Transferees, none of whom shall constitute a Defaulting Lender at the time of
such replacement (collectively, the "Replacement Lender" or "Replacement
Indemnifying Lender," as the case may be) and each of whom shall be required to
be reasonably acceptable to the Administrative Agent, provided that:
                                                      --------

          (i) at the time of any replacement of a Lender pursuant to this
     Section 1.13, the Replacement Lender shall enter into one or more
     Assignment and Assumption Agreements pursuant to Section 13.04(b) (and with
     all fees payable pursuant to said Section 13.04(b) to be paid by the
     Replacement Lender) pursuant to which the Replacement Lender shall acquire
     all of the Commitments and outstanding Loans of, and in each case
     participations in Letters of Credit by, the Replaced Lender and, in
     connection therewith, shall pay to (x) the Replaced Lender in respect
     thereof an amount equal to the sum of (I) an amount equal to the principal
     of, and all accrued interest on, all outstanding Loans of the Replaced
     Lender, (II) an amount equal to all Unpaid Drawings that have been funded
     by (and not reimbursed to) such Replaced Lender, together with all then
     unpaid interest with respect thereto at such time, and (III) an amount
     equal to all accrued, but theretofore unpaid, Fees owing to the Replaced
     Lender pursuant to Section 3.01, (y) the Issuing Lender an amount equal to
     such Replaced Lender's RL Percentage of any Unpaid Drawing (which at such
     time remains an Unpaid Drawing) to the extent such amount was not
     theretofore funded by such Replaced Lender to the Issuing Lender and (z)
     the Swingline Lender an amount equal to such Replaced Lender's RL
     Percentage of any Mandatory Borrowing to the extent such amount was not
     theretofore funded by such Replaced Lender to the Swingline Lender;

          (ii) at the time of any replacement of an Indemnifying Lender pursuant
     to this Section 1.13, the Replacement Indemnifying Lender shall enter into
     one or more Assignment and Assumption Agreements pursuant to Section
     13.04(c) and shall have obtained the written consent of the Fronting Lender
     (and with all fees payable pursuant to said Section 13.04(c) to be paid by
     the Replacement Indemnifying Lender) pursuant to which the Replacement
     Indemnifying Lender shall acquire all Indemnity Participations (and related
     Indemnity Amounts) of the Replaced Indemnifying Lender and, in

                                      -16-
<PAGE>

     connection therewith, shall pay to (x) the Replaced Indemnifying Lender an
     amount equal to the sum of (I) the aggregate amount of all Obligations
     funded by the Replaced Indemnifying Lender pursuant to Section 1.17(a), and
     (II) an amount equal to all accrued, but theretofore unpaid, interest and
     Fees which would be owing to the Replaced Indemnifying Lender at such time
     had the Borrower paid all interest and Fees pursuant to the terms of this
     Agreement through the date upon which the respective replacement occurred
     (whether or not such amounts would otherwise be then due and payable
     pursuant to the terms of this Agreement) and (y) the Fronting Lender an
     amount equal to all amounts required to be paid to the Fronting Lender by
     the Replaced Indemnifying Lender through and including the date of the
     respective replacement pursuant to this Section 1.13, to the extent that
     such amounts have not theretofore been actually paid by the Replaced
     Indemnifying Lender to the Fronting Lender, in each case determined in
     accordance with the relevant provisions of Section 1.17; and

          (iii)  all obligations of the Borrower due and owing to the Replaced
     Lender or Replaced Indemnifying Lender, as the case may be, at such time
     (other than those specifically described in clause (i) or (ii) above, as
     the case may be, in respect of which the assignment purchase price has
     been, or is concurrently being, paid) shall be paid in full to such
     Replaced Lender or Replaced Indemnifying Lender, as the case may be,
     concurrently with such replacement.

Upon the execution of the respective Assignment and Assumption Agreement, the
payment of all relevant amounts referred to in clauses (i), (ii) and (iii) above
and, if so requested by the Replacement Lender, delivery to the Replacement
Lender of the appropriate Note or Notes executed by the Borrower, the
Replacement Lender or Replacement Indemnifying Lender, as the case may be, shall
become a Lender or Indemnifying Lender, as the case may be, hereunder and the
Replaced Lender or Replaced Indemnifying Lender, as the case may be, shall cease
to constitute a Lender or Indemnifying Lender, as the case may be, hereunder,
except with respect to indemnification provisions under this Agreement
(including, without limitation, Sections 1.10, 1.11, 2.06, 4.04, 12.06 and
13.01), which shall survive as to such Replaced Lender or Replaced Indemnifying
Lender, as the case may be.

          1.14  Incremental B Term Loan Commitments.  (a)  So long as no Default
                -----------------------------------
or Event of Default then exists or would result therefrom, the Borrower, with
the prior consent of the Administrative Agent (which consent shall not be
unreasonably withheld or delayed), shall have the right to request on one
occasion on or before the Incremental Commitment Expiry Date that one or more
Lenders (and/or one or more other Persons which will become Lenders as provided
below) provide Incremental B Term Loan Commitments and, subject to the terms and
conditions contained in this Agreement, make Incremental B Term Loans pursuant
thereto; it being understood and agreed, however, that (i) no Lender shall be
obligated to provide an Incremental B Term Loan Commitment as a result of any
such request by the Borrower, and until such time, if any, as such Lender has
agreed in its sole discretion to provide an Incremental B Term Loan Commitment
and executed and delivered to the Administrative Agent an Incremental B Term
Loan Commitment Agreement as provided in clause (b) of this Section 1.14, such
Lender shall not be obligated to fund any Incremental B Term Loans, (ii) any
Lender (or, in the circumstances contemplated by clause (v) below, any other
Person which will qualify as an

                                      -17-
<PAGE>

Eligible Transferee) may so provide an Incremental B Term Loan Commitment
without the consent of any other Lender, (iii) the Incremental B Term Loan
Commitments provided pursuant to this Section 1.14 shall be in a minimum
aggregate amount (for all Lenders (including in the circumstances contemplated
by clause (v) below, Eligible Transferees who will become Lenders)) of at least
$25,000,000 and in integral multiples of $1,000,000 in excess thereof, (iv) the
aggregate amount of all Incremental B Term Loan Commitments permitted to be
provided pursuant to this Section 1.14, when combined with the aggregate amount
of all Incremental Revolving Loan Commitments permitted to be provided pursuant
to Section 1.15, shall not exceed $100,000,000, (v) if, after the Borrower has
requested the then existing Lenders (other than Defaulting Lenders) to provide
Incremental B Term Loan Commitments pursuant to this Section 1.14, the Borrower
has not received Incremental B Term Loan Commitments in an aggregate amount
equal to that amount of Incremental B Term Loan Commitments which the Borrower
desires to obtain pursuant to such request (as set forth in the notice provided
by the Borrower as provided below), then the Borrower may request Incremental B
Term Loan Commitments from Persons which would qualify as Eligible Transferees
hereunder in an aggregate amount equal to such deficiency, provided that any
such Incremental B Term Loan Commitment provided by any such Eligible Transferee
                                        --------
which is not already a Lender shall be in a minimum amount (for such Eligible
Transferee) of at least $1,000,000, (vi) prior to the Incremental B Term Loan
Borrowing Date, the Borrower shall have certified to the Administrative Agent
that the aggregate principal amount of all Incremental B Term Loans being
incurred is permitted to be incurred under, and in accordance with, the Senior
Subordinated Note Indenture (including, without limitation, by providing to the
Administrative Agent (x) an officer's certificate of the Borrower's chief
financial officer or treasurer demonstrating (in reasonable detail) that the
incurrence of such Incremental B Term Loans may be incurred in accordance with,
and will not violate the provisions of, the Senior Subordinated Note Indenture
(including, to the extent applicable, the proviso to Section 4.03 of the Senior
Subordinated Note Indenture), and (y) the officers' certificate referred to in
clause (6) of the definition of "Senior Debt" set forth in the Senior
Subordinated Note Indenture), and (vii) all actions taken by the Borrower
pursuant to this Section 1.14 shall be done in coordination with the
Administrative Agent.

          (b) In connection with the Incremental B Term Loan Commitments to be
provided pursuant to this Section 1.14, (i) the Borrower, the Administrative
Agent and each such Lender or other Eligible Transferee (each, an "Incremental B
Term Loan Lender") which agrees to provide an Incremental B Term Loan Commitment
shall execute and deliver to the Administrative Agent an Incremental B Term Loan
Commitment Agreement substantially in the form of Exhibit C (appropriately
completed), with the effectiveness of such Incremental B Term Loan Lender's
Incremental B Term Loan Commitment to occur upon delivery of such Incremental B
Term Loan Commitment Agreement to the Administrative Agent, the payment of any
fees required in connection therewith (including, without limitation, any fees
payable pursuant to clause (ii) below) and the satisfaction of any other
conditions precedent that may be set forth in such Incremental B Term Loan
Commitment Agreement, (ii) the Administrative Agent shall receive from the
Borrower (or, to the extent agreed to by the Borrower and the respective
Incremental B Term Loan Lender, from such respective Incremental B Term Loan
Lender) the payment of a non-refundable fee of $3,500 for each Eligible
Transferee which

                                      -18-
<PAGE>

becomes a Lender pursuant to this Section 1.14 and (iii) the Borrower shall
deliver to the Administrative Agent an opinion or opinions, in form and
substance reasonably satisfactory to the Administrative Agent, from counsel to
the Borrower reasonably satisfactory to the Administrative Agent and dated such
date, covering such of the matters set forth in the opinions of counsel
delivered to the Administrative Agent on the Initial Borrowing Date pursuant to
Section 5.03 as may be reasonably requested by the Administrative Agent, and
such other matters as the Administrative Agent may reasonably request. The
Administrative Agent shall promptly notify each Lender as to the effectiveness
of the Incremental B Term Loan Commitment Agreement, and at such time Schedule I
shall be deemed modified to reflect the Incremental B Term Loan Commitments of
such Incremental B Term Loan Lenders.

          (c) In connection with the incurrence of Incremental B Term Loans
pursuant to Section 1.01(c), the Lenders and the Borrower hereby agree that,
notwithstanding anything to the contrary contained in this Agreement, the
Borrower and the Administrative Agent may take all such actions as may be
necessary to ensure that all Lenders with outstanding B Term Loans continue to
participate in each Borrowing of outstanding B Term Loans (after giving effect
to the incurrence of Incremental B Term Loans pursuant to Section 1.01(c)) on a
pro rata basis, including by adding the Incremental B Term Loans to be so
--- ----
incurred to the then outstanding Borrowings of B Term Loans on a pro rata basis
                                                                 --- ----
even though as a result thereof such new Incremental B Term Loans (to the extent
required to be maintained as Eurodollar Loans) may effectively have a shorter
Interest Period than the then outstanding Borrowings of B Term Loans, and it is
hereby agreed that to the extent any then outstanding Borrowings of B Term Loans
that are maintained as Eurodollar Loans are affected as a result thereof, any
costs of the type described in Section 1.11 incurred by such Lenders in
connection therewith shall be for the account of the Borrower.

          1.15  Incremental Revolving Loan Commitments.  (a)  So long as no
                --------------------------------------
Default or Event of Default then exists or would result therefrom, the Borrower,
with the prior consent of the Administrative Agent (which consent shall not be
unreasonably withheld or delayed), shall have the right to request on up to
three occasions on or prior to the Incremental Commitment Expiry Date that one
or more Lenders (and/or one or more other Persons which will become Lenders as
provided below) provide Incremental Revolving Loan Commitments and, subject to
the applicable terms and conditions contained in this Agreement, make Revolving
Loans pursuant thereto; it being understood and agreed, however, that (i) no
Lender shall be obligated to provide an Incremental Revolving Loan Commitment as
a result of any such request by the Borrower, and until such time, if any, as
such Lender has agreed in its sole discretion to provide an Incremental
Revolving Loan Commitment and executed and delivered to the Administrative Agent
an Incremental Revolving Loan Commitment Agreement in respect thereof as
provided in clause (b) of this Section 1.15, such Lender shall not be obligated
to fund any Revolving Loans in excess of its Revolving Loan Commitment as in
effect prior to giving effect to such Incremental Revolving Loan Commitment
provided pursuant to this Section 1.15, (ii) any Lender (or, in the
circumstances contemplated by clause (v) below, any other Person which will
qualify as an Eligible Transferee) may so provide an Incremental Revolving Loan
Commitment without the consent of any other Lender, (iii) each provision of
Incremental Revolving Loan Commitments on a given date pursuant to this Section
1.15 shall be in a minimum aggregate amount (for all Lenders (including, in the
circumstances contemplated by clause (v) below,

                                      -19-
<PAGE>

Eligible Transferees who will become Lenders)) of at least $25,000,000 and in
integral multiples of $1,000,000 in excess thereof, (iv) the aggregate amount of
all Incremental Revolving Loan Commitments permitted to be provided pursuant to
this Section 1.15, when combined with the aggregate amount of all Incremental B
Term Loan Commitments permitted to be provided pursuant to Section 1.14, shall
not exceed $100,000,000, (v) if, after the Borrower has requested the then
existing Lenders (other than Defaulting Lenders) to provide Incremental
Revolving Loan Commitments pursuant to this Section 1.15, the Borrower has not
received Incremental Revolving Loan Commitments in an aggregate amount equal to
that amount of the Incremental Revolving Loan Commitments which the Borrower
desires to obtain pursuant to such request (as set forth in the notice provided
by the Borrower to the Administrative Agent as provided above), then the
Borrower may request Incremental Revolving Loan Commitments from Persons which
would qualify as Eligible Transferees hereunder in an aggregate amount equal to
such deficiency, provided that any such Incremental Revolving Loan Commitments
provided by any such Eligible Transferee which is not already a Lender shall be
in a minimum amount (for such Eligible Transferee) of at least $1,000,000, (vi)
prior to the effectiveness of any Incremental Revolving Loan Commitments, the
Borrower shall have certified to the Administrative Agent that the aggregate
principal amount of all Revolving Loans permitted to be incurred pursuant to
such Incremental Revolving Loan Commitments is permitted to be incurred under,
and in accordance with, the Senior Subordinated Note Indenture (including,
without limitation, by providing to the Administrative Agent (x) an officer's
certificate of the Borrower's chief financial officer or treasurer demonstrating
(in reasonable detail) that the incurrence of all such Revolving Loans may be
incurred in accordance with, and will not violate the provisions of, the Senior
Subordinated Note Indenture (including, to the extent applicable, the proviso to
Section 4.03 of the Senior Subordinated Note Indenture), and (y) officers'
certificate referred to in clause (6) of the definition of "Senior Debt" set
forth in the Senior Subordinated Note Indenture), and (vii) all actions taken by
the Borrower pursuant to this Section 1.15 shall be done in coordination with
the Administrative Agent.

          (b) In connection with the Incremental Revolving Loan Commitments to
be provided pursuant to this Section 1.15, (i) the Borrower, the Administrative
Agent and each Lender or other Eligible Transferee (each, an "Incremental RL
Lender") which agrees to provide an Incremental Revolving Loan Commitment shall
execute and deliver to the Administrative Agent an Incremental Revolving Loan
Commitment Agreement substantially in the form of Exhibit D (appropriately
completed), with the effectiveness of such Incremental RL Lender's Incremental
Revolving Loan Commitment to occur upon delivery of such Incremental Revolving
Loan Commitment Agreement to the Administrative Agent, the payment of any fees
required in connection therewith (including, without limitation, any fees
payable pursuant to clause (ii) below) and the satisfaction of any other
conditions precedent that may be set forth in such Incremental Revolving Loan
Commitment Agreement, (ii) the Administrative Agent shall receive from the
Borrower (or, to the extent agreed to by the Borrower and the respective
Incremental RL Lender, from such respective Incremental RL Lender) the payment
of a non-refundable fee of $3,500 for each Eligible Transferee which becomes a
Lender pursuant to this Section 1.15 and (iii) the Borrower shall deliver to the
Administrative Agent an opinion or opinions, in form and substance reasonably
satisfactory to the Administrative Agent, from counsel to the Borrower
reasonably satisfactory to the Administrative Agent and dated such date,

                                      -20-
<PAGE>

covering such of the matters set forth in the opinions of counsel delivered to
the Administrative Agent on the Initial Borrowing Date pursuant to Section 5.03
as may be reasonably requested by the Administrative Agent, and such other
matters as the Administrative Agent may reasonably request.  The Administrative
Agent shall promptly notify each Lender as to the effectiveness of each
Incremental Revolving Loan Commitment Agreement, and at such time, (i) the Total
Revolving Loan Commitment under, and for all purposes of, this Agreement shall
be increased by the aggregate amount of such Incremental Revolving Loan
Commitments, and (ii) Schedule I shall be deemed modified to reflect the revised
Revolving Loan Commitments of the affected Lenders.

          (c) At the time of any provision of Incremental Revolving Loan
Commitments pursuant to this Section 1.15, the Borrower shall, in coordination
with the Administrative Agent, repay outstanding Revolving Loans of certain of
the RL Lenders, and incur additional Revolving Loans from certain other RL
Lenders (including the Incremental RL Lenders), in each case to the extent
necessary so that all of the RL Lenders participate in each outstanding
Borrowing of Revolving Loans pro rata on the basis of their respective Revolving
                             --- ----
Loan Commitments (after giving effect to any increase in the Total Revolving
Loan Commitment pursuant to this Section 1.15) and with the Borrower being
obligated to pay to the respective RL Lenders any costs of the type referred to
in Section 1.11 in connection with any such repayment and/or Borrowing.

          1.16  Limitation on Additional Amounts.  Notwithstanding anything to
                --------------------------------
the contrary contained in Section 1.10 or 2.06, unless a Lender gives notice to
the Borrower that the Borrower is obligated to pay any amount under Section 1.10
or 2.06 within 120 days after the later of (x) the date such Lender incurs the
respective increased costs, reduction in the amounts received or receivable
hereunder or reduction in return of capital or (y) the date such Lender has
actual knowledge of its incurrence of the respective increased costs, reduction
in the amounts received or receivable hereunder or reduction in return of
capital,  such Lender shall only be entitled to be compensated for any such
amount by the Borrower pursuant to Section 1.10 or 2.06 to the extent that any
such amounts are incurred or suffered on or after the date which occurs 120 days
prior to such Lender giving notice to the Borrower that it is obligated to pay
the respective amounts pursuant to Section 1.10 or 2.06; provided, however, that
                                                         --------  -------
if the circumstances giving rise to such claims have a retroactive effect, such
120-day period shall be extended to include the period of such retroactive
effect.  This Section 1.16 shall have no applicability to any Section of this
Agreement other than to Sections 1.10 and 2.06.

          1.17  Special Provisions Regarding Revolving Loan Commitments and
                -----------------------------------------------------------
Indemnifying Lenders.  (a)  Upon the execution of this Agreement or an
--------------------
Assignment and Assumption Agreement with respect to an Indemnity Participation,
as the case may be, each Indemnifying Lender shall be deemed to, and hereby
agrees to, have irrevocably purchased a participation (each, an "Indemnity
Participation") from the Fronting Lender in the Revolving Loan Commitment of the
Fronting Lender (including, without limitation, the related Revolving Loans of
the Fronting Lender, the obligations of the Fronting Lender to fund its share of
Mandatory Borrowings and the participation of the Fronting Lender in outstanding
Letters of Credit and Unpaid Drawings with respect thereto), in a proportionate
amount based on such Indemnifying Lender's Indemnity Amount.  Upon the
occurrence of a Triggering Event, each Indemnifying Lender, upon one Business
Day's notice from the Fronting Lender (provided that such notice

                                      -21-
<PAGE>

shall not be required if a Triggering Event has occurred and a Default or Event
of Default of the type described in Section 10.05 is then in existence, in which
case the respective Indemnifying Lender shall immediately pay all amounts
described below to the Fronting Lender), shall deliver to the Fronting Lender by
wire transfer in immediately available funds and in the relevant Approved
Currency (x) its proportionate share, based on its Indemnity Amount, of the
aggregate unpaid principal amount of the Fronting Lender's Revolving Loans, (y)
its proportionate share, based on its Indemnity Amount, of each Mandatory
Borrowing thereafter made pursuant to this Agreement and (z) its proportionate
share, based on its Indemnity Amount, of the aggregate amount of Unpaid Drawings
from time to time hereunder with respect to Letters of Credit. Each Indemnifying
Lender's obligations under this Section 1.17 shall be absolute and unconditional
and shall not be affected by any circumstance, including, without limitation,
(a) any set-off, counterclaim, recoupment, defense or other right which the
Administrative Agent, the Fronting Lender or any Lender may have against the
Fronting Lender, any Credit Party or any other Person for any reason whatsoever,
(b) the occurrence or continuance of a Default or an Event of Default, (c) any
adverse change in the condition (financial or otherwise) of any Credit Party,
(d) any breach of this Agreement by any Credit Party, the Administrative Agent,
the Fronting Lender or any Lender, or (e) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.

          (b) For periods prior to the date of the required funding by an
Indemnifying Lender of the respective Obligations in accordance with the second
sentence of Section 1.17(a), the Fronting Lender shall promptly pay by wire
transfer of immediately available funds and in the relevant Approved Currency to
each applicable Indemnifying Lender, as an indemnity fee for the Indemnity
Participation provided to the Fronting Lender by such Indemnifying Lender in
this Section 1.17, the following amounts, in each case in a proportionate amount
based on the relationship of the respective Indemnifying Lender's Indemnity
Amount (or, in the case of clause (iii) below, the unused amount thereof) to the
Fronting Lender's Revolving Loan Commitment (or, in the case of clause (iii)
below, the unused amount thereof):  (i) an amount equal to (x) the excess of the
interest actually received by the Fronting Lender pursuant to Section 1.08 from
the Borrower over the applicable Euro Rate or Base Rate, as the case may be, on
such Revolving Loans less (y) 0.250% per annum (or such different percentage per
                     ----
annum as may be agreed to by the Fronting Lender and an Indemnifying Lender in
any given case) to be retained by the Fronting Lender as an Indemnity
Participation fee, (ii) an amount equal to (x) the amount of Letter of Credit
Fees actually received pursuant to Section 3.01(b) less (y) 0.250% per annum (or
                                                   ----
such different percentage per annum as may be agreed to by the Fronting Lender
and an Indemnifying Lender in any given case) to be retained by the Fronting
Lender as an Indemnity Participation fee and (iii) the Commitment Commission
actually received by the Fronting Lender pursuant to Section 3.01(a) from the
Administrative Agent; provided that if any such indemnity fee payable to an
                      --------
Indemnifying Lender is less than $10,000, the Fronting Lender shall not be
required to so pay such indemnity fee to an Indemnifying Lender until the
aggregate unpaid amount of indemnity fees payable to such Indemnifying Lender
accumulates to an amount exceeding $10,000.  The excess, if any, of the interest
paid to the Fronting Lender on the Revolving Loans over the interest
distributable to an Indemnifying Lender under this Section 1.17(b) in respect
thereof, and the excess, if any, of the Letter of Credit Fees paid to the
Fronting Lender over the Letter of Credit Fees distributable to such
Indemnifying Lender under this Section 1.17(b), shall

                                      -22-
<PAGE>

be retained by the Fronting Lender. After an Indemnifying Lender has funded any
Obligations required to be funded by it pursuant to the second sentence of
Section 1.17(a), then any interest actually received by the Fronting Lender with
respect to the Obligations so funded (with any such payments so received by the
Fronting Lender to be allocated proportionally to its Obligations in respect of
which received) shall be paid by it to the respective Indemnifying Lender.

          (c) After an Indemnifying Lender is required to fund Obligations
pursuant to the second sentence of Section 1.17(a), and so long as the
respective Indemnifying Lender shall have made all payments to the Fronting
Lender so required by this Section 1.17, the Fronting Lender shall promptly pay
by wire transfer of immediately available funds to such Indemnifying Lender any
principal or other payments thereafter recovered by the Fronting Lender from the
Borrower to the extent allocable to such Indemnifying Lender's funded Indemnity
Participation.  If the Fronting Lender shall pay any amount to an Indemnifying
Lender pursuant to this Section 1.17 in the belief or expectation that a related
payment has been or will be received or collected and such related payment is
not received or collected by the Fronting Lender, then such Indemnifying Lender
will promptly on demand by the Fronting Lender return such amount to the
Fronting Lender, together with interest thereon at such rate as the Fronting
Lender shall determine to be customary between Lenders for correction of errors.
If the Fronting Lender determines at any time that any amount received or
collected by the Fronting Lender pursuant to this Agreement is to be returned to
the Borrower under this Agreement or paid to any other Person or entity pursuant
to any insolvency law, any sharing clause in this Agreement or otherwise then,
notwithstanding any other provision of this Agreement, the Fronting Lender shall
not be required to distribute any portion thereof to any Indemnifying Lender,
and each Indemnifying Lender will promptly on demand by the Fronting Lender
repay any portion that the Fronting Lender shall have distributed to such
Indemnifying Lender, together with interest thereon at such rate, if any, as the
Fronting Lender shall pay to the Borrower or such Person or entity with respect
thereto.  If any amounts returned by the Fronting Lender to the Borrower
pursuant to this Section 1.17 are later recouped by the Fronting Lender, the
Fronting Lender shall promptly pay to each Indemnifying Lender a proportionate
amount based on such Indemnifying Lender's funded Indemnity Amount.

          (d) If the Fronting Lender incurs any costs or expenses (including,
without limitation, in indemnifying the Administrative Agent pursuant to Section
11.07) pursuant to this Agreement or any other Credit Document, or in connection
with any effort to enforce or protect the Fronting Lender's or any Indemnifying
Lender's rights or interests with respect to this Agreement or the other Credit
Documents, then, except to the extent resulting from the Fronting Lender's gross
negligence or willful misconduct (as determined by a final and non-appealable
judgment by a court of competent jurisdiction), each Indemnifying Lender will
reimburse the Fronting Lender on demand for each such Indemnifying Lender's
proportionate share (based on the relationship of such Indemnifying Lender's
Indemnity Amount to the Revolving Loan Commitment of the Fronting Lender) of any
portion of such costs or expenses which is not reimbursed by or on behalf of the
Borrower.  If the Fronting Lender recovers any amounts for which the Fronting
Lender has previously been reimbursed by an Indemnifying Lender hereunder, the
Fronting Lender shall promptly distribute to such Indemnifying Lender such
Indemnifying Lender's proportionate share thereof.

                                      -23-
<PAGE>

          (e) Each Indemnifying Lender hereby agrees to indemnify and hold
harmless the Fronting Lender from any applicable taxes, penalties, interest and
other expenses, costs and losses incurred or payable by the Fronting Lender as a
result of either (i) such Indemnifying Lender's failure to submit any statement,
document, form or certificate or other evidence that such Indemnifying Lender is
required to provide pursuant to Section 4.04(b) or (ii) the Fronting Lender's
reliance on any such statement, document, form or certificate or other evidence
which such Indemnifying Lender has provided to the Fronting Lender pursuant to
Section 4.04(b).

          (f) Notwithstanding any provision to the contrary contained in this
Agreement or in the other Credit Documents and so long as an Indemnifying Lender
has not failed to make any payments required to be made by such Indemnifying
Lender under this Section 1.17 or is not otherwise in default under its
obligations under this Section 1.17, the Fronting Lender hereby agrees that,
with respect to any amendment, modification, termination or waiver of any
provision of this Agreement or the other Credit Documents, or any departure by
any Credit Party therefrom, if votes or consents are solicited from Lenders
holding Revolving Loan Commitments pursuant to Section 13.12, then the Indemnity
Amount of the respective Indemnifying Lender shall only be voted if, and as,
directed by the respective Indemnifying Lender.  It is understood and agreed
that the Fronting Lender shall be entitled to vote that portion of its Revolving
Loan Commitment which is not subject to one or more Indemnity Participations in
such manner as it shall determine in its sole discretion, and that the Fronting
Lender may give votes with respect to its outstanding Term Loans as determined
by it in its sole discretion.

          (g) Except as otherwise expressly provided herein, in the event that
any Person obligated to make a payment to any other Person pursuant to this
Section 1.17 fails to make available to the Person entitled to receive such
payment the amount of such payment, the Person entitled to receive such payment
shall be entitled to recover such amount on demand from such other Person,
together with interest at the customary rate set by the Administrative Agent for
the correction of errors among the Lenders for three Business Days and
thereafter at the sum of the Base Rate plus 2.00% per annum.
                                       ----

          (h) The Fronting Lender may from time to time sell or transfer to
other Persons assignments or participations or other interests in the Fronting
Lender's Revolving Loans and Revolving Loan Commitment, but not in the portion
thereof allocated to the Indemnity Participation hereunder.  An Indemnifying
Lender's Indemnity Participation may not be sold, pledged, assigned or otherwise
transferred without the Fronting Lender's and the Administrative Agent's prior
written consent.

          (i) No increase to the Revolving Loan Commitment of the Fronting
Lender (whether pursuant to Section 1.15, Section 13.04 or otherwise) shall have
any effect on the Indemnity Amount of any Indemnity Participant, in each case
except as may be otherwise agreed in writing by the respective Indemnity
Participant and the Fronting Lender.   Upon any reduction to the Revolving Loan
Commitment of the Fronting Lender (excluding any termination or reduction of
such Revolving Loan Commitment pursuant to Section 10 and excluding any
reduction to the Revolving Loan Commitment to the extent that, after giving
effect thereto, the aggregate Principal Amount of the Revolving Loans of the
Fronting Lender then outstanding, when added to the Fronting Lender's RL
Percentage of the aggregate Principal Amount of all

                                      -24-
<PAGE>

Swingline Loans then outstanding and the Fronting Lender's RL Percentage of all
Letter of Credit Outstandings at such time, would exceed Revolving Loan
Commitment of the Fronting Lender), such reduction shall apply to proportionally
reduce the Indemnity Amounts of the various Indemnifying Lenders pursuant to
this Section 1.17; provided that reductions to the Revolving Loan Commitment of
                   --------
the Fronting Lender pursuant to Section 3.02(b) and/or 13.12(b), as the case may
be, shall be applied only to reduce the Indemnity Amount of any Indemnifying
Lender to the extent such reduction is made for purpose of removing the
respective Indemnifying Lender.

          (j) In no event shall (x) the Indemnity Participation be construed as
a loan or other extension of credit by an Indemnifying Lender to the Fronting
Lender or (y) this Agreement be construed to require an Indemnifying Lender to
fund or pay to the Fronting Lender such Indemnifying Lender's Indemnity Amount
except upon the occurrence of a Triggering Event pursuant to Section 1.17(a).
Each Indemnifying Lender agrees that the Fronting Lender may take legal action
to enforce or protect an Indemnifying Lender's or the Fronting Lender's
interests in respect of this Agreement and the other Credit Documents.

          (k) All determinations by the Fronting Lender pursuant to this Section
1.17 (including, without limitation, with respect to the Indemnity Amounts from
time to time in effect, and with respect to amounts owing by or to the various
Indemnifying Lenders) shall, absent manifest error, be conclusive and binding on
all parties hereto.

          (l) The Fronting Lender hereby agrees that, if an Indemnifying Lender
has arranged for an assignment of a portion of the Revolving Loan Commitment of
the Fronting Lender which does not exceed the Indemnity Amount of the respective
Indemnifying Lender (and if, in connection therewith, the Indemnity
Participation of the respective Indemnifying Lender in the portion of the
Revolving Loan Commitment so assigned is to be terminated), then so long as all
of the applicable requirements of Section 13.04(b) are satisfied (including
obtaining the consents required thereunder), then the Fronting Lender shall,
upon the request of the respective Indemnifying Lender, enter into an assignment
of the related portion of the Revolving Loan Commitment of the Fronting Lender
so long as (x) at such time, an Assignment and Assumption Agreement is executed
by all parties required to execute same (or consent thereto) in form and
substance reasonably satisfactory to the Fronting Lender and (y) concurrently
therewith, the Indemnity Participation in the portion of the Revolving Loan
Commitment so assigned is terminated pursuant to an agreement in form and
substance reasonably satisfactory to the Fronting Lender.  It is understood and
agreed that, after the Effective Date, the Fronting Lender shall have no
obligation to agree to any subsequent Indemnity Participation with respect to
all or any portion of the Revolving Loan Commitment from time to time held by
the Fronting Lender (although the Fronting Lender may, in its sole discretion,
agree to subsequent Indemnity Participations from time to time after the
Effective Date).

          SECTION 2.  Letters of Credit.
                      -----------------

          2.01  Letters of Credit.  (a)  Subject to and upon the terms and
                -----------------
conditions set forth herein, the Borrower may request that the Issuing Lender
issue, at any time and from time to time on and after the Initial Borrowing Date
and prior to the 60th day prior to the Revolving Loan

                                      -25-
<PAGE>

Maturity Date, for the account of the Borrower and for the benefit of (x) any
holder (or any trustee, agent or other similar representative for any such
holders) of L/C Supportable Obligations, an irrevocable standby letter of
credit, in a form customarily used by the Issuing Lender or in such other form
as is reasonably acceptable to the Issuing Lender, and (y) sellers of goods to
the Borrower or any of its Subsidiaries, an irrevocable trade letter of credit,
in a form customarily used by the Issuing Lender or in such other form as has
been approved by the Issuing Lender (each such letter of credit, a "Letter of
Credit" and, collectively, the "Letters of Credit"). All Letters of Credit shall
be issued on a sight basis only and shall be denominated in an Approved
Currency.

          (b) Subject to and upon the terms and conditions set forth herein, the
Issuing Lender agrees that it will, at any time and from time to time on and
after the Initial Borrowing Date and prior to the 60th day prior to the
Revolving Loan Maturity Date, following its receipt of the respective Letter of
Credit Request, issue for account of the Borrower, one or more Letters of Credit
as are permitted to remain outstanding hereunder without giving rise to a
Default or an Event of Default, provided that the Issuing Lender shall not be
                                --------
under any obligation to issue any Letter of Credit of the types described above
if at the time of such issuance:

           (i) any order, judgment or decree of any governmental authority or
     arbitrator shall purport by its terms to enjoin or restrain the Issuing
     Lender from issuing such Letter of Credit or any requirement of law
     applicable to the Issuing Lender or any request or directive (whether or
     not having the force of law) from any governmental authority with
     jurisdiction over the Issuing Lender shall prohibit, or request that the
     Issuing Lender refrain from, the issuance of letters of credit generally or
     such Letter of Credit in particular or shall impose upon the Issuing Lender
     with respect to such Letter of Credit any restriction or reserve or capital
     requirement (for which the Issuing Lender is not otherwise compensated
     hereunder) not in effect with respect to the Issuing Lender on the date
     hereof, or any unreimbursed loss, cost or expense which was not applicable
     or in effect with respect to the Issuing Lender as of the date hereof and
     which the Issuing Lender reasonably and in good faith deems material to it;
     or

           (ii) the Issuing Lender shall have received from the Borrower, any
     other Credit Party or the Required Lenders prior to the issuance of such
     Letter of Credit notice of the type described in the second sentence of
     Section 2.03(b).

           2.02  Maximum Letter of Credit Outstandings; Final Maturities.
                 -------------------------------------------------------
Notwithstanding anything to the contrary contained in this Agreement, (i) no
Letter of Credit shall be issued the Stated Amount of which, when added to the
Letter of Credit Outstandings (exclusive of Unpaid Drawings which are repaid on
the date of, and prior to the issuance of, the respective Letter of Credit) at
such time would exceed either (x) $50,000,000 or (y) when added to the sum of
(I) the aggregate Principal Amount of all Revolving Loans then outstanding and
(II) the aggregate Principal Amount of all Swingline Loans then outstanding, an
amount equal to the Total Available Revolving Loan Commitment at such time, and
(ii) each Letter of Credit shall by its terms terminate on or before the earlier
of (A) the date which occurs 12 months after the date of the issuance thereof
(although any such Letter of Credit may be extendible for successive periods of
up to 12 months, but, in each case, not beyond the tenth Business Day (or the
30/th/ day in the

                                      -26-
<PAGE>

case of trade Letters of Credit) prior to the Revolving Loan Maturity Date, on
terms acceptable to the Issuing Lender) and (B) ten Business Days (or 30 days in
the case of trade Letters of Credit) prior to the Revolving Loan Maturity Date.

          2.03  Letter of Credit Requests; Minimum Stated Amount.  (a)  Whenever
                ------------------------------------------------
the Borrower desires that a Letter of Credit be issued for its account, the
Borrower shall give the Administrative Agent and the Issuing Lender at least
four Business Days' written notice thereof (including by way of facsimile) (or
such shorter period as is acceptable to the Issuing Lender).  Each notice shall
be in the form of Exhibit E, appropriately completed (each a "Letter of Credit
Request").

          (b)   The making of each Letter of Credit Request shall be deemed to
be a representation and warranty by the Borrower to the Administrative Agent,
the Issuing Lender and the Lenders that such Letter of Credit may be issued in
accordance with, and will not violate the requirements of, Section 2.02. Unless
the Issuing Lender has received notice from the Borrower, any other Credit Party
or the Required Lenders before it issues a Letter of Credit that one or more of
the conditions specified in Section 5 or 6 are not then satisfied, or that the
issuance of such Letter of Credit would violate Section 2.02, then the Issuing
Lender shall, subject to the terms and conditions of this Agreement, issue the
requested Letter of Credit for the account of the Borrower in accordance with
the Issuing Lender's usual and customary practices. Upon the issuance of or
modification or amendment to any standby Letter of Credit, the Issuing Lender
shall promptly notify the Borrower and the Administrative Agent, in writing of
such issuance, modification or amendment and such notice shall be accompanied by
a copy of such issuance, modification or amendment, as the case may be. Promptly
after receipt of such notice, the Administrative Agent shall notify the
Participants, in writing, of such issuance, modification or amendment. In
addition, with respect to trade Letters of Credit, the Issuing Lender shall on
the first Business Day of each week furnish to the Administrative Agent and the
Borrower, by facsimile, a report detailing the aggregate Stated Amount of all
trade Letters of Credit outstanding during the preceding week. Notwithstanding
anything to the contrary contained in this Agreement, in the event that a Lender
Default exists with respect to an RL Lender, the Issuing Lender shall not be
required to issue any Letter of Credit unless the Issuing Lender has entered
into arrangements satisfactory to it and the Borrower to eliminate the Issuing
Lender's risk with respect to the participation in Letters of Credit by the
Defaulting Lender or Lenders, including by cash collateralizing such Defaulting
Lender's or Lenders' RL Percentage of the Letter of Credit Outstandings.

          (c) The initial Stated Amount of each Letter of Credit shall not be
less than $50,000 (or, in the case of a Letter of Credit issued in a Foreign
Currency, the Dollar Equivalent thereof) or such lesser amount as is acceptable
to the Issuing Lender.

          2.04  Letter of Credit Participations.  (a)  Immediately upon the
                -------------------------------
issuance by the Issuing Lender of any Letter of Credit, the Issuing Lender shall
be deemed to have sold and transferred to each RL Lender (each such RL Lender,
in its capacity under this Section 2.04, a "Participant"), and each such
Participant shall be deemed irrevocably and unconditionally to have purchased
and received from the Issuing Lender, without recourse or warranty, an undivided
interest and participation, to the extent of such Participant's RL Percentage,
in such Letter of

                                      -27-
<PAGE>

Credit, each drawing or payment made thereunder and the obligations of the
Borrower under this Agreement with respect thereto, and any security therefor or
guaranty pertaining thereto. Upon any change in the Revolving Loan Commitments
or RL Percentages of the Lenders pursuant to Section 1.13, 1.15 or 13.04(b), it
is hereby agreed that, with respect to all outstanding Letters of Credit and
Unpaid Drawings relating thereto, there shall be an automatic adjustment to the
participations pursuant to this Section 2.04 to reflect the new RL Percentages
of the assignor and assignee Lender, as the case may be.

          (b)  In determining whether to pay under any Letter of Credit, the
Issuing Lender shall not have any obligation relative to the other Lenders other
than to confirm that any documents required to be delivered under such Letter of
Credit appear to have been delivered and that they appear to substantially
comply on their face with the requirements of such Letter of Credit.  Any action
taken or omitted to be taken by the Issuing Lender under or in connection with
any Letter of Credit issued by it shall not create for the Issuing Lender any
resulting liability to the Borrower, any other Credit Party, any Lender or any
other Person unless such action is taken or omitted to be taken with gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).

          (c)  In the event that the Issuing Lender makes any payment under any
Letter of Credit issued by it and the Borrower shall not have reimbursed such
amount in full to the Issuing Lender pursuant to Section 2.05(a), the Issuing
Lender shall promptly notify the Administrative Agent, which shall promptly
notify each Participant of such failure, and each Participant shall promptly and
unconditionally pay to the Issuing Lender the amount of such Participant's RL
Percentage of such unreimbursed payment in Dollars (or, in the case of any
unreimbursed payment made in a Foreign Currency, of the Dollar Equivalent of
such unreimbursed payment, as determined by the Issuing Lender on the date on
which such unreimbursed payment was made by the Issuing Lender) and in same day
funds.  If the Administrative Agent so notifies, prior to 12:00 Noon (New York
time) on any Business Day, any Participant required to fund a payment under a
Letter of Credit, such Participant shall make available to the Issuing Lender in
Dollars (or, in the case of any unreimbursed payment made in a Foreign Currency,
of the Dollar Equivalent thereof) such Participant's RL Percentage of the amount
of such payment on such Business Day in same day funds.  If and to the extent
such Participant shall not have so made its RL Percentage of the amount of such
payment available to the Issuing Lender, such Participant agrees to pay to the
Issuing Lender, forthwith on demand such amount, together with interest thereon,
for each day from such date until the date such amount is paid to the Issuing
Lender at the overnight Federal Funds Rate (or, in the case of amounts owned in
a Foreign Currency, at the Issuing Lender's customary rate for interbank
advances) for the first three days and at the interest rate applicable to
Revolving Loans that are maintained as Base Rate Loans for each day thereafter.
The failure of any Participant to make available to the Issuing Lender its RL
Percentage of any payment under any Letter of Credit shall not relieve any other
Participant of its obligation hereunder to make available to the Issuing Lender
its RL Percentage of any payment under any Letter of Credit on the date
required, as specified above, but no Participant shall be responsible for the
failure of any other Participant to make available to the Issuing Lender such
other Participant's RL Percentage of any such payment.

                                      -28-
<PAGE>

          (d)   Whenever the Issuing Lender receives a payment of a
reimbursement obligation as to which it has received any payments from the
Participants pursuant to clause (c) above, the Issuing Lender shall pay to each
such Participant which has paid its RL Percentage thereof, in Dollars (or, in
the case of any payment received in a Foreign Currency, of the Dollar Equivalent
thereof) and in same day funds, an amount equal to such Participant's share
(based upon the proportionate aggregate amount originally funded by such
Participant to the aggregate amount funded by all Participants) of the principal
amount of such reimbursement obligation and interest thereon accruing after the
purchase of the respective participations.

          (e)   Upon the request of any Participant, the Administrative Agent
shall furnish to such Participant copies of any standby Letter of Credit issued
by it and such other documentation as may reasonably be requested by such
Participant.

          (f)   The obligations of the Participants to make payments to the
Issuing Lender with respect to Letters of Credit shall be irrevocable and not
subject to any qualification or exception whatsoever and shall be made in
accordance with the terms and conditions of this Agreement under all
circumstances, including, without limitation, any of the following
circumstances:

          (i)   any lack of validity or enforceability of this Agreement or any
     of the other Credit Documents;

          (ii)  the existence of any claim, setoff, defense or other right which
     the Borrower or any of its Subsidiaries may have at any time against a
     beneficiary named in a Letter of Credit, any transferee of any Letter of
     Credit (or any Person for whom any such transferee may be acting), the
     Administrative Agent, any Participant, or any other Person, whether in
     connection with this Agreement, any Letter of Credit, the transactions
     contemplated herein or any unrelated transactions (including any underlying
     transaction between the Borrower or any Subsidiary of the Borrower and the
     beneficiary named in any such Letter of Credit);

          (iii) any draft, certificate or any other document presented under any
     Letter of Credit proving to be forged, fraudulent, invalid or insufficient
     in any respect or any statement therein being untrue or inaccurate in any
     respect;

          (iv)  the surrender or impairment of any security for the performance
     or observance of any of the terms of any of the Credit Documents; or

          (v)   the occurrence of any Default or Event of Default.

           2.05 Agreement to Repay Letter of Credit Drawings. (a) The Borrower
agrees to reimburse the Issuing Lender, by making payment to the Administrative
Agent in Dollars (or, in the case of any payment or disbursement made by the
Issuing Lender in a Foreign Currency, of the Dollar Equivalent of such payment
or disbursement as determined by the Issuing Lender on the date of such payment
or disbursement) in immediately available funds at the Payment Office, for any
payment or disbursement made by the Issuing Lender under any Letter of Credit

                                      -29-
<PAGE>

issued by it (each such amount (or the Dollar Equivalent thereof, as the case
may be), so paid until reimbursed, an "Unpaid Drawing"), not later than one
Business Day following receipt by the Borrower of notice of such payment or
disbursement (provided that (x) to the extent that any such notice is received
by the Borrower after 12:00 Noon (New York time) on any Business Day, such
reimbursement shall be required on the immediately succeeding Business Day, and
(y) notwithstanding the foregoing, no such notice shall be required to be given
if a Default or an Event of Default under Section 10.05 shall have occurred and
be continuing, in which case the Unpaid Drawing shall be due and payable
immediately without presentment, demand, protest or notice of any kind (all of
which are hereby waived by the Borrower)), with interest on the amount so paid
or disbursed by the Issuing Lender, to the extent not reimbursed prior to 12:00
Noon (New York time) on the date of such payment or disbursement, from and
including the date paid or disbursed to but excluding the date such Issuing
Lender was reimbursed by the Borrower therefor at a rate per annum equal to the
Base Rate in effect from time to time plus the Applicable Margin as in effect
from time to time for Revolving Loans that are maintained as Base Rate Loans;
provided, however, to the extent such amounts are not reimbursed prior to 12:00
--------  -------
Noon (New York time) on the third Business Day following the receipt by the
Borrower of notice of such payment or disbursement or following the occurrence
of a Default or an Event of Default under Section 10.05, interest shall
thereafter accrue on the amounts so paid or disbursed by the Issuing Lender (and
until reimbursed by the Borrower) at a rate per annum equal to the Base Rate in
effect from time to time plus the Applicable Margin for Revolving Loans that are
maintained as Base Rate Loans as in effect from time to time plus 2%, with such
interest to be payable on demand.  The Issuing Lender shall give the Borrower
prompt written notice of each Drawing under any Letter of Credit issued by it,
provided that the failure to give any such notice shall in no way affect, impair
--------
or diminish the Borrower's obligations hereunder.

          (b)  The obligations of the Borrower under this Section 2.05 to
reimburse the Issuing Lender with respect to drafts, demands and other
presentations for payment under Letters of Credit issued by it (each a
"Drawing") (including, in each case, interest thereon) shall be absolute and
unconditional under any and all circumstances and irrespective of any setoff,
counterclaim or defense to payment which the Borrower or any Subsidiary of the
Borrower may have or have had against any Lender (including in its capacity as
the Issuing Lender or as a Participant), including, without limitation, any
defense based upon the failure of any drawing under a Letter of Credit to
conform to the terms of the Letter of Credit or any nonapplication or
misapplication by the beneficiary of the proceeds of such Drawing; provided,
                                                                   --------
however, that the Borrower shall not be obligated to reimburse the Issuing
-------
Lender for any wrongful payment made by the Issuing Lender under a Letter of
Credit issued by it as a result of acts or omissions constituting willful
misconduct or gross negligence on the part of the Issuing Lender (as determined
by a court of competent jurisdiction in a final and non-appealable decision).

          2.06 Increased Costs.  If at any time after the Effective Date, the
               ---------------
introduction of or any change in any applicable law, rule, regulation, order,
guideline or request or in the interpretation or administration thereof by the
NAIC or any governmental authority charged with the interpretation or
administration thereof, or compliance by the Issuing Lender or any Participant
with any request or directive by the NAIC or by any such governmental authority
(whether or not having the force of law), shall either (i) impose, modify or
make applicable any reserve, deposit, capital adequacy or similar requirement
against letters of credit issued by the Issuing Lender or

                                      -30-
<PAGE>

participated in by any Participant, or (ii) impose on the Issuing Lender or any
Participant any other conditions relating, directly or indirectly, to this
Agreement or any Letter of Credit; and the result of any of the foregoing is to
increase the cost to the Issuing Lender or any Participant of issuing,
maintaining or participating in any Letter of Credit, or reduce the amount of
any sum received or receivable by the Issuing Lender or any Participant
hereunder or reduce the rate of return on its capital with respect to Letters of
Credit (except for changes in the rate of tax on, or determined by reference to,
the net income or profits of the Issuing Lender or such Participant pursuant to
the laws of the jurisdiction in which it is organized or in which its principal
office or applicable lending office is located or any subdivision thereof or
therein), then, upon the delivery of the certificate referred to below to the
Borrower by the Issuing Lender or any Participant (a copy of which certificate
shall be sent by the Issuing Lender or such Participant to the Administrative
Agent), the Borrower agrees, subject to Section 1.16, to pay to the Issuing
Lender or such Participant such additional amount or amounts as will compensate
the Issuing Lender or such Participant for such increased cost or reduction in
the amount receivable or reduction on the rate of return on its capital. The
Issuing Lender or any Participant, upon determining that any additional amounts
will be payable pursuant to this Section 2.06, will give prompt written notice
thereof to the Borrower, which notice shall include a certificate submitted to
the Borrower by the Issuing Lender or such Participant (a copy of which
certificate shall be sent by the Issuing Lender or such Participant to the
Administrative Agent), setting forth in reasonable detail the basis therefor and
the calculation of such additional amount or amounts necessary to compensate the
Issuing Lender or such Participant. The certificate required to be delivered
pursuant to this Section 2.06 shall, absent manifest error, be final and
conclusive and binding on the Borrower.

               SECTION 3.  Commitment Commission; Fees; Reductions of
                           ------------------------------------------
Commitment.
----------

               3.01 Fees. (a) The Borrower agrees to pay to the Administrative
                    ----
Agent for distribution to each Non-Defaulting RL Lender a commitment commission
(the "Commitment Commission") for the period from and including the Effective
Date to but excluding the Revolving Loan Maturity Date (or such earlier date on
which the Total Revolving Loan Commitment has been terminated) computed at a
rate per annum equal to the Applicable Commitment Commission Percentage on the
Unutilized Revolving Loan Commitment of such Non-Defaulting RL Lender as in
effect from time to time. Accrued Commitment Commission shall be due and payable
quarterly in arrears on each Quarterly Payment Date and on the date upon which
the Total Revolving Loan Commitment is terminated.

               (b) The Borrower agrees to pay to the Administrative Agent for
distribution to each RL Lender (based on each such RL Lender's respective RL
Percentage) a fee in respect of each Letter of Credit (the "Letter of Credit
Fee") for the period from and including the date of issuance of such Letter of
Credit to and including the date of termination or expiration of such Letter of
Credit, computed at a rate per annum equal to the Applicable Margin then in
effect with respect to Revolving Loans that are maintained as Eurodollar Loans
on the daily Stated Amount of each such Letter of Credit. Accrued Letter of
Credit Fees shall be due and payable quarterly in arrears on each Quarterly
Payment Date and on the first day on or after the termination of the Total
Revolving Loan Commitment upon which no Letters of Credit remain outstanding.

                                      -31-
<PAGE>

               (c)  The Borrower agrees to pay to the Issuing Lender, for its
own account, a facing fee in respect of each Letter of Credit issued by it (the
"Facing Fee") for the period from and including the date of issuance of such
Letter of Credit to and including the date of termination or expiration of such
Letter of Credit, computed at a rate per annum equal to 1/4 of 1% on the daily
Stated Amount of such Letter of Credit, provided that in any event the minimum
                                ------
amount of Facing Fees payable in any twelve-month period for each Letter of
Credit shall be not less than $500; it being agreed that, on the day of issuance
of any Letter of Credit and on each anniversary thereof prior to the termination
or expiration of such Letter of Credit, if $500 will exceed the amount of Facing
Fees that will accrue with respect to such Letter of Credit for the immediately
succeeding twelve-month period, the full $500 shall be payable on the date of
issuance of such Letter of Credit and on each such anniversary thereof. Except
as otherwise provided in the proviso to the immediately preceding sentence,
accrued Facing Fees shall be due and payable quarterly in arrears on each
Quarterly Payment Date and upon the first day on or after the termination of the
Total Revolving Loan Commitment upon which no Letters of Credit remain
outstanding.

               (d)  The Borrower agrees to pay to the Issuing Lender, for its
own account, upon each payment under, issuance of, or amendment to, any Letter
of Credit issued by it, such amount as shall at the time of such event be the
administrative charge and the reasonable expenses which the Issuing Lender is
generally imposing in connection with such occurrence with respect to letters of
credit.

               (e)  Concurrently with all voluntary prepayments of principal of
B Term Loans and all mandatory prepayments of principal of B Term Loans (other
than mandatory repayments made pursuant to Sections 4.02(c) and (f)), in each
case which are made on or prior to May 9, 2002, the Borrower will pay to the
Administrative Agent, for the ratable account of each Lender with outstanding B
Term Loans, a fee equal to 1.0% of the aggregate principal amount of such
prepayment.

               (f)  The Borrower agrees to pay to the Administrative Agent, for
its own account, such fees as may be agreed to in writing from time to time by
the Borrower and the Administrative Agent.

               3.02 Voluntary Termination of Unutilized Revolving Loan
                    --------------------------------------------------
Commitments. (a) Upon at least one Business Day's prior written notice to the
-----------
Administrative Agent at the Notice Office (which notice the Administrative Agent
shall promptly transmit to each of the Lenders), the Borrower shall have the
right, at any time or from time to time, without premium or penalty to terminate
the Total Unutilized Revolving Loan Commitment in whole, or reduce it in part,
pursuant to this Section 3.02(a), in an integral multiple of $1,000,000 in the
case of partial reductions to the Total Unutilized Revolving Loan Commitment,
provided that (i) any reduction to the Total Unutilized Revolving Loan
--------
Commitment shall in no case be in an amount which would cause the Blocked
Revolving Loan Commitment to exceed the Total Unutilized Revolving Loan
Commitment (immediately after giving effect to such reduction) and (ii) each
such reduction shall apply proportionately to permanently reduce the Revolving
Loan Commitment of each RL Lender.

                                      -32-
<PAGE>

               (b) In the event of a refusal by a Lender to consent to certain
proposed changes, waivers, discharges or terminations with respect to this
Agreement which have been approved by the Required Lenders as (and to the
extent) provided in Section 13.12(b), the Borrower may, subject to its
compliance with the requirements of Section 13.12(b), upon five Business Days'
prior written notice to the Administrative Agent at the Notice Office (which
notice the Administrative Agent shall promptly transmit to each of the Lenders)
terminate all of the Commitments of such Lender (or in the case of the Fronting
Lender only, that portion of its Revolving Loan Commitment which gave rise to
the need to obtain the individual consent of one or more Indemnifying Lenders
whose consents were not provided), so long as all Loans, together with accrued
and unpaid interest, Fees and all other amounts, owing to such Lender (or in the
case of the repayment of Revolving Loans of the Fronting Lender which relate to
one or more Indemnifying Lenders whose individual consent was required but not
obtained, all Revolving Loans subject to the Indemnity Participations of non-
consenting Indemnifying Lenders, together with accrued and unpaid interest, Fees
and other amounts relating thereto) are repaid concurrently with the
effectiveness of such termination pursuant to Section 4.01(b) (at which time
Schedule I shall be deemed modified to reflect such changed amounts) and such
Lender's RL Percentage of (or, in the case of a replacement of an Indemnifying
Lender, such Indemnifying Lender's Indemnity Participation in) all outstanding
Letters of Credit is cash collateralized in a manner satisfactory to the
Administrative Agent and the Issuing Lender, and at such time, such Lender or
Indemnifying Lender, as the case may be, shall no longer constitute a "Lender"
or "Indemnifying Lender," as the case may be, for purposes of this Agreement,
except with respect to indemnifications under this Agreement (including, without
limitation, Sections 1.10, 1.11, 2.06, 4.04 and 13.01), which shall survive as
to such repaid Lender or Indemnifying Lender, as the case may be.

               3.03 Mandatory Reduction of Commitments. (a) The Total Commitment
                    ----------------------------------
(and the Commitments of each Lender) shall terminate in its entirety on July 13,
2001 unless the Initial Borrowing Date has occurred on or prior to such date.

               (b)  In addition to any other mandatory commitment reductions
pursuant to this Section 3.03, the Total A Term Loan Commitment (and the A Term
Loan Commitment of each Lender) shall terminate in its entirety on the Initial
Borrowing Date (after giving effect to the incurrence of A Term Loans on such
date).

               (c)  In addition to any other mandatory commitment reductions
pursuant to this Section 3.03, the Total Initial B Term Loan Commitment (and the
Initial B Term Loan Commitment of each Lender) shall terminate in its entirety
on the Initial Borrowing Date (after giving effect to the incurrence of the
Initial B Term Loans on such date).

               (d)  In addition to any other mandatory commitment reductions
pursuant to this Section 3.03, the Total Incremental B Term Loan Commitment (and
the Incremental B Term Loan Commitment of each Lender provided pursuant to an
Incremental B Term Loan Commitment Agreement) shall terminate in its entirety on
the Incremental B Term Loan Borrowing Date (after giving effect to the
incurrence of the Incremental B Term Loans on each such date).

                                      -33-
<PAGE>

               (e) In addition to any other mandatory commitment reductions
pursuant to this Section 3.03, the Total Revolving Loan Commitment (and the
Revolving Loan Commitment of each Lender) shall terminate in its entirety on the
earlier of (i) the Revolving Loan Maturity Date and (ii) unless the Required
Lenders otherwise agree, the date on which a Change of Control occurs.

               SECTION 4. Prepayments; Payments; Taxes.
                          ----------------------------

               4.01 Voluntary Prepayments. (a) The Borrower shall have the right
                    ---------------------
to prepay the Loans, without premium or penalty (except as otherwise provided in
this Agreement), in whole or in part at any time and from time to time on the
following terms and conditions: (i) the Borrower shall give the Administrative
Agent at the Notice Office written notice (or telephonic notice promptly
confirmed in writing) no later than 12:00 Noon (New York time) (or, in the case
of Foreign Currency Revolving Loans, no later than 10:00 A.M. (New York time))
(x) on the date of such prepayment in the case of a prepayment of Base Rate
Loans and (y) at least three Business Days' prior to the date of such prepayment
in the case of a prepayment of Euro Rate Loans, which notice (in each case)
shall specify whether A Term Loans, B Term Loans, Revolving Loans or Swingline
Loans shall be prepaid, the amount of such prepayment and the Types of Loans and
the currency or currencies in which they are to be prepaid and, in the case of
Euro Rate Loans, the specific Borrowing or Borrowings pursuant to which such
Euro Rate Loans were made, and which notice the Administrative Agent shall,
except in the case of a prepayment of Swingline Loans, promptly transmit to each
of the Lenders; (ii) (x) each partial prepayment of Term Loans pursuant to this
Section 4.01(a) shall be in an aggregate principal amount of at least $500,000,
(y) each partial prepayment of Revolving Loans pursuant to this Section 4.01(a)
shall be in an aggregate principal amount of at least $250,000 (or the Dollar
Equivalent thereof in the case of Foreign Currency Revolving Loans) and (z) each
partial prepayment of Swingline Loans pursuant to this Section 4.01(a) shall be
in an aggregate principal amount of at least $100,000, provided that if any
partial prepayment of Euro Rate Loans made pursuant to any Borrowing shall
reduce the outstanding principal amount of Euro Rate Loans made pursuant to such
Borrowing to an amount less than the Minimum Borrowing Amount applicable
thereto, then such Borrowing may not be continued as a Borrowing of Euro Rate
Loans and (A) in the case of Dollar Revolving Loans, such Borrowing shall
automatically be converted into a Borrowing of Base Rate Loans and any election
of an Interest Period with respect thereto given by the Borrower shall have no
force or effect, and (B) in the case of Foreign Currency Revolving Loans, such
Borrowing shall be repaid and any election of an Interest Period with respect
thereto given by the Borrower shall have no force or effect; (iii) each
prepayment pursuant to this Section 4.01(a) in respect of any Loans made
pursuant to a Borrowing shall be applied pro rata among such Loans, provided
                                         --- ----
that at the Borrower's election in connection with any prepayment of Revolving
Loans pursuant to this Section 4.01(a), such prepayment shall not, so long as no
Default or Event of Default then exists, be applied to any Revolving Loan of a
Defaulting Lender; (iv) each voluntary prepayment of Term Loans pursuant to this
Section 4.01(a) shall, except as otherwise provided in Section 4.01(c), be
applied pro rata to each Tranche of outstanding Term Loans, with the A Term
        --- ----
Loans to be allocated the A Term Loan Percentage of the amount of such
prepayment and the B Term Loans to be allocated the B Term Loan Percentage of
the amount of such payment; and (v) each prepayment of any Tranche of Term Loans
pursuant to this Section 4.01(a) shall be applied (I) first, to reduce in direct
order of maturity the

                                      -34-
<PAGE>

Scheduled Repayments of such Tranche of Term Loans which are due and payable
within six months from the date of such payment and (II) second, to the extent
in excess of the amounts required to be applied pursuant to the preceding clause
(I), to reduce the then remaining Scheduled Repayments of such Tranche of Term
Loans being prepaid on a pro rata basis (based upon the then remaining unpaid
principal amounts of such Scheduled Repayments after giving effect to all prior
reductions thereto).

               (b) In the event of a refusal by a Lender or an Indemnifying
Lender to consent to certain proposed changes, waivers, discharges or
terminations with respect to this Agreement which have been approved by the
Required Lenders as (and to the extent) provided in Section 13.12(b), the
Borrower may, upon five Business Days' prior written notice to the
Administrative Agent at the Notice Office (which notice the Administrative Agent
shall promptly transmit to each of the Lenders) repay all Loans, together with
accrued and unpaid interest, Fees, and other amounts owing to such Lender (or in
the case of a refusal by an Indemnifying Lender to give any such consent, the
Borrower may repay all Revolving Loans, together with accrued and unpaid
interest, Fees and other amounts owing to the Fronting Lender, in each case
which correlate to the Indemnity Participation of the respective Indemnifying
Lender) in accordance with, and subject to the requirements of, said Section
13.12(b) so long as (I) all Commitments of such Lender are terminated (or, in
the case of a termination of an Indemnifying Lender, so long as the related
portion of the Revolving Loan Commitment of the Fronting Lender is terminated)
concurrently with such repayment pursuant to Section 3.02(b) (at which time
Schedule I shall be deemed modified to reflect the changed Commitments and, if
relevant, Indemnity Amounts), (II) such Lender's RL Percentage of (or the
respective Indemnifying Lender's Indemnity Participation in) all outstanding
Letters of Credit is cash collateralized in a manner satisfactory to the
Administrative Agent and the Issuing Lender and (III) the consents, if any,
required under Section 13.12(b) in connection with the repayment pursuant to
this Section 4.01(b) have been obtained. Each prepayment of any Tranche of Term
Loans pursuant to this Section 4.01(b) shall be applied to reduce the then
remaining Scheduled Repayments of such Tranche of Term Loans being prepaid on a
pro rata basis (based upon the then remaining unpaid principal amounts of such
--- ----
Scheduled Repayments after giving effect to all prior reductions thereto).

               (c) Notwithstanding anything to the contrary contained in this
Section 4.01 or elsewhere in this Agreement (including, without limitation, in
Section 13.12), at any time that A Term Loans are outstanding, the Borrower
shall have the option, in its sole discretion, to give the Lenders with
outstanding B Term Loans (the "B Lenders") the option to waive their pro rata
                                                                     --- ----
share of a voluntary prepayment of B Term Loans which is to be made pursuant to
Section 4.01(a) (each such prepayment, a "Waivable Voluntary Prepayment") upon
the terms and provisions set forth in this Section 4.01(c); provided that if the
                                                            --------
amount of the Waivable Voluntary Prepayment would exceed the aggregate principal
amount of A Term Loans then outstanding (after giving effect to the application
of their pro rata share of the respective voluntary prepayment), then the amount
         --- ----
of the Waivable Voluntary Prepayment shall be limited to such aggregate
principal amount of A Term Loans then outstanding and the remainder of the pro
                                                                           ---
rata share of the respective voluntary repayment otherwise applicable to the B
----
Term Loans shall be immediately applied to the repayment of such outstanding B
Term Loans. If the Borrower elects to exercise the option referred to in the
immediately preceding sentence, the Borrower shall give to the Administrative
Agent written notice of its intention to give the B Lenders the

                                      -35-
<PAGE>

right to waive a Waivable Voluntary Prepayment (including in such notice, the
aggregate amount of such proposed prepayment) at least five Business Days prior
to the date of the proposed prepayment, which notice the Administrative Agent
shall promptly forward to all B Lenders (indicating in such notice the amount of
such prepayment to be applied to each such B Lender's outstanding B Term Loans).
The Borrower's offer to permit the B Lenders to waive any such Waivable
Voluntary Prepayment may apply to all or part of such prepayment, provided that
                                                                  --------
any offer to waive part of such prepayment must be made ratably to the B Lenders
on the basis of their outstanding B Term Loans. In the event that any such B
Lender desires to waive its pro rata share of such B Lender's right to receive
                            --- ----
any such Waivable Voluntary Prepayment in whole or in part, such B Lender shall
so advise the Administrative Agent no later than 4:00 P.M. (New York time) on
the date which is two Business Days after the date of such notice from the
Administrative Agent (and the Administrative Agent shall promptly thereafter
notify the Borrower thereof), which notice shall also include the amount such B
Lender desires to receive in respect of such prepayment. If any B Lender does
not reply to the Administrative Agent within such two Business Day period, such
B Lender will be deemed not to have waived any part of such prepayment. If any B
Lender does not specify an amount it wishes to receive, such B Lender will be
deemed to have accepted 100% of its share of such prepayment. In the event that
any such B Lender waives all or part of its share of any such Waivable Voluntary
Prepayment, the Administrative Agent shall apply 100% of the amount so waived by
such Lender to the A Term Loans in accordance with Section 4.01(a).
Notwithstanding anything to the contrary contained above, if one or more B
Lenders waives its right to receive all or any part of any Waivable Voluntary
Repayment, but less than all the B Lenders waive in full their right to receive
100% of the total payment otherwise required with respect to the B Term Loans,
then of the amount actually applied to the repayment of B Term Loans of B
Lenders which have waived all or any of part their right to receive 100% of such
repayment, such amount shall be applied to each then outstanding Borrowing of B
Term Loans on a pro rata basis (so that each B Lender shall, after giving effect
                --- ----
to the application of the respective repayment, maintain the same percentage (as
determined for such B Lender, but not the same percentage as the other B Lenders
hold and not the same percentage held by such B Lender prior to repayment) of
each Borrowing of B Term Loans which remains outstanding after giving effect to
such application).

               4.02 Mandatory Repayments. (a) (i) On any day on which the sum of
                    --------------------
(I) the aggregate outstanding Principal Amount of all Revolving Loans (after
giving effect to all other repayments thereof on such date), (II) the aggregate
outstanding Principal Amount of all Swingline Loans (after giving effect to all
other repayments thereof on such date) and (III) the aggregate amount of all
Letter of Credit Outstandings exceeds the Total Available Revolving Loan
Commitment at such time, the Borrower shall prepay on such day the principal of
Swingline Loans and, after all Swingline Loans have been repaid in full or if no
Swingline Loans are outstanding, Revolving Loans in an amount equal to such
excess. If, after giving effect to the prepayment of all outstanding Swingline
Loans and Revolving Loans, the aggregate amount of the Letter of Credit
Outstandings exceeds the Total Available Revolving Loan Commitment at such time,
the Borrower agrees to pay to the Administrative Agent at the Payment Office on
such day an amount of cash and/or Cash Equivalents equal to the amount of such
excess (up to a maximum amount equal to the Letter of Credit Outstandings at
such time), such cash and/or Cash

                                      -36-
<PAGE>

Equivalents to be held as security for all obligations of the Borrower to the
Issuing Lender and the Lenders hereunder in a cash collateral account to be
established by the Administrative Agent.

               (ii)  On any day on which the aggregate outstanding Principal
Amount of all Foreign Currency Revolving Loans (after giving effect to all other
repayments thereof on such date) exceeds the lesser of (x) $51,000,000 and (y)
the Total Available Revolving Loan Commitment at such time, the Borrower shall
prepay on such day the principal of Foreign Currency Revolving Loans in an
amount equal to such excess.

               (iii) On any day on which the aggregate Stated Amount of all
Letters of Credit Outstandings exceeds the lesser of (x) $50,000,000 and (y) the
Total Available Revolving Loan Commitment at such time, the Borrower shall pay
to the Administrative Agent at the Payment Office on such day an amount of cash
and/or Cash Equivalents equal to the amount of such excess, such cash and/or
Cash Equivalents to be held as security for all obligations of the Borrower to
the Issuing Lender and the Lenders hereunder in a cash collateral account to be
established by the Administrative Agent.

               (b)   In addition to any other mandatory repayments pursuant to
this Section 4.02, on each date set forth below, the Borrower shall be required
to repay that principal amount of A Term Loans, to the extent then outstanding,
as is set forth opposite each such date below (each such repayment, as the same
may be reduced as provided in Sections 4.01(a), 4.01(b) and 4.02(i), a
"Scheduled A Repayment"):

            Scheduled A Repayment Date                           Amount
            --------------------------                           ------

              September 30, 2001                                $8,750,000
              December 31, 2001                                 $8,750,000
              March 31, 2002                                    $8,750,000
              June 30, 2002                                     $8,750,000
              September 30, 2002                                $8,750,000
              December 31, 2002                                 $8,750,000
              March 31, 2003                                    $8,750,000
              June 30, 2003                                     $8,750,000
              September 30, 2003                                $8,750,000
              December 31, 2003                                 $8,750,000
              March 31, 2004                                    $8,750,000
              June 30, 2004                                     $8,750,000
              September 30, 2004                                $8,750,000
              December 31, 2004                                 $8,750,000
              March 31, 2005                                    $8,750,000
              June 30, 2005                                     $8,750,000
              September 30, 2005                                $8,750,000
              December 31, 2005                                 $8,750,000
              March 31, 2006                                    $8,750,000
              A Term Loan Maturity Date                         $8,750,000

                                      -37-
<PAGE>

               (c) In addition to any other mandatory repayments pursuant to
this Section 4.02, on each date set forth below, the Borrower shall be required
to repay that principal amount of B Term Loans, to the extent then outstanding,
as is set forth opposite each such date below (each such repayment, (i) as the
same may be reduced as provided in Sections 4.01(a), 4.01(b) and 4.02(i), and
(ii) as the same may be increased as provided below in this Section 4.02(c), a
"Scheduled B Repayment"):

              Scheduled B Repayment Date                           Amount
              --------------------------                           ------

                September 30, 2001                                $437,500
                December 31, 2001                                 $437,500
                March 31, 2002                                    $437,500
                June 30, 2002                                     $437,500
                September 30, 2002                                $437,500
                December 31, 2002                                 $437,500
                March 31, 2003                                    $437,500
                June 30, 2003                                     $437,500
                September 30, 2003                                $437,500
                December 31, 2003                                 $437,500
                March 31, 2004                                    $437,500
                June 30, 2004                                     $437,500
                September 30, 2004                                $437,500
                December 31, 2004                                 $437,500
                March 31, 2005                                    $437,500
                June 30, 2005                                     $437,500
                September 30, 2005                                $437,500
                December 31, 2005                                 $437,500
                March 31, 2006                                    $437,500
                June 30, 2006                                  $33,337,500
                September 30, 2006                             $33,337,500
                December 31, 2006                              $33,337,500
                March 31, 2007                                 $33,337,500
                B Term Loan Maturity Date                      $33,337,500

               In the event that the Borrower incurs any Incremental B Term
Loans pursuant to Section 1.01(c), then (i) each of the Scheduled B Repayments
occurring after the date of such incurrence through and including March 31, 2006
shall be increased by .25% of the aggregate principal amount of the Incremental
B Term Loans so incurred and (ii) each of the Scheduled B Repayments occurring
after March 31, 2006 shall be increased by an amount equal to (x) the aggregate
principal amount of the Incremental B Term Loans so incurred less portion
thereof allocated to the Scheduled B Repayments as provided in the preceding
clause (i) divided by (y) 5.

               (d) In addition to any other mandatory repayments pursuant to
this Section 4.02, on each date on or after the Initial Borrowing Date upon
which the Borrower or any of its Subsidiaries receives any cash proceeds from
any incurrence by the Borrower or any of its Subsidiaries of Indebtedness for
borrowed money (other than Indebtedness for borrowed money

                                      -38-
<PAGE>

permitted to be incurred pursuant to Section 9.04 as in effect on the Effective
Date), an amount equal to 100% of the Net Debt Proceeds of the respective
incurrence of Indebtedness shall be applied on such date in accordance with the
requirements of Sections 4.02(i) and (j).

               (e) In addition to any other mandatory repayments pursuant to
this Section 4.02, on each date on or after the Initial Borrowing Date upon
which the Borrower or any of its Subsidiaries receives any cash proceeds from
any Asset Sale, an amount equal to 100% of the Net Sale Proceeds therefrom shall
be applied on such date in accordance with the requirements of Sections 4.02(i)
and (j); provided, however, that with respect to no more than $25,000,000 in the
         --------  -------
aggregate of cash proceeds from Asset Sales in any fiscal year of the Borrower,
the Net Sale Proceeds therefrom shall not be required to be so applied on such
date so long as no Default or Event of Default then exists and such Net Sale
Proceeds shall be used to purchase assets (other than working capital) used or
to be used in the businesses permitted pursuant to Section 9.16 (including,
without limitation (but only to the extent permitted by Section 8.14), the
purchase of the assets or 100% of the equity of a Person engaged in such
businesses) within 360 days following the date of such Asset Sale, and provided
                                                                       --------
further, that if all or any portion of such Net Sale Proceeds not required to be
-------
so applied as provided above in this Section 4.02(e) are not so reinvested
within such 360-day period (or such earlier date, if any, as the Borrower or the
relevant Subsidiary determines not to reinvest the Net Sale Proceeds from such
Asset Sale as set forth above), such remaining portion shall be applied on the
last day of such period (or such earlier date, as the case may be) as provided
above in this Section 4.02(e) without regard to the preceding proviso.

               (f) In addition to any other mandatory repayments pursuant to
this Section 4.02, on each Excess Cash Payment Date, an amount equal to 50% of
the Excess Cash Flow for the related Excess Cash Payment Period shall be applied
in accordance with the requirements of Sections 4.02(i) and (j).

               (g) In addition to any other mandatory repayments pursuant to
this Section 4.02, within 10 days following each date on or after the Initial
Borrowing Date upon which the Borrower or any of its Subsidiaries receives any
cash proceeds from any Recovery Event (other than Recovery Events where the Net
Insurance Proceeds therefrom do not exceed $250,000), an amount equal to 100% of
the Net Insurance Proceeds from such Recovery Event shall be applied within such
10 day period in accordance with the requirements of Sections 4.02(i) and (j);
provided, however, that (x) so long as no Default or Event of Default then
--------  -------
exists and such Net Insurance Proceeds do not exceed $10,000,000, such Net
Insurance Proceeds shall not be required to be so applied within such 10 day
period to the extent that the Borrower has delivered a certificate to the
Administrative Agent within such 10 day period stating that such Net Insurance
Proceeds shall be used to replace or restore any properties or assets in respect
of which such Net Insurance Proceeds were paid within 360 days following the
date of the receipt of such Net Insurance Proceeds (which certificate shall set
forth the estimates of the Net Insurance Proceeds to be so expended), and (y) so
long as no Default or Event of Default then exists and to the extent that (a)
the amount of such Net Insurance Proceeds is greater than $10,000,000 but is
less than or equal to $15,000,000, (b) the amount of such Net Insurance
Proceeds, together with other cash available to the Borrower and its
Subsidiaries and permitted to be spent by them on Capital Expenditures during
the relevant period, equals at least 100% of the cost of replacement

                                      -39-
<PAGE>

or restoration of the properties or assets in respect of which such Net
Insurance Proceeds were paid as determined by the Borrower and as supported by
such information as the Administrative Agent may reasonably request and (c) the
Borrower has delivered to the Administrative Agent a certificate within such 10
day period in the form described in clause (x) above, then the entire amount of
the Net Insurance Proceeds from such Recovery Event and not just the portion in
excess of $10,000,000 shall be deposited with the Administrative Agent pursuant
to a cash collateral arrangement reasonably satisfactory to the Administrative
Agent whereby such proceeds shall be disbursed to the Borrower from time to time
as needed to pay or reimburse the Borrower or such Subsidiary for the actual
costs incurred by it in connection with the replacement or restoration of the
respective properties or assets (pursuant to such certification requirements as
may be established by the Administrative Agent), although at any time while an
Event or Default has occurred and is continuing, the Required Lenders may direct
the Collateral Agent (in which case the Collateral Agent shall, and is hereby
authorized by the Borrower to, follow said directions) to apply any or all
proceeds then on deposit in such collateral account to the repayment of the Term
Loans as provided above in this Section 4.02(g) without regard to this proviso;
and provided further, that (i) if the amount of such Net Insurance Proceeds
    ----------------
exceeds $15,000,000, then the entire amount of such Net Insurance Proceeds (and
not just the portion of such Net Insurance Proceeds in excess of $15,000,000)
shall be applied as provided above in this Section 4.02(g) without regard to the
preceding proviso, and (ii) if all or any portion of such Net Insurance Proceeds
not required to be so applied pursuant to the preceding proviso (whether
pursuant to clause (x) or (y) thereof) are not so used within 360 days after the
date of the receipt of such Net Insurance Proceeds (or such earlier date, if
any, as the Borrower or the relevant Subsidiary determines not to reinvest the
Net Insurance Proceeds relating to such Recovery Event as set forth above), such
remaining portion shall be applied on the last day of such period (or such
earlier date, as the case may be) as provided above in this Section 4.02(g)
without regard to the preceding proviso.

               (h) In addition to any other mandatory repayments pursuant to
this Section 4.02, on each date on which the Borrower or any of its Subsidiaries
receives any cash proceeds from (i) any purchase price adjustment under Section
2.2.2(ii) of the Acquisition Agreement (as in effect on the Initial Borrowing
Date) and (ii) any indemnity payment under the Acquisition Agreement as a result
of any reversion of any shares of capital stock of the Target to any prior
shareholder of the Target, an amount equal to 100% of the cash proceeds from
such purchase price adjustment or indemnity payment shall be applied on such
date in accordance with the requirements of Sections 4.02(i) and (j).

               (i) Except as otherwise provided in Section 4.02(k), each amount
required to be applied pursuant to this Section 4.02(i) shall be applied as a
mandatory repayment of outstanding Term Loans on a pro rata basis, with the A
                                                   --- ----
Term Loans to be allocated the A Term Loan Percentage of the amount of such
repayment and the B Term Loans to be allocated the B Term Loan Percentage of the
amount of such prepayment. The amount of each principal repayment of each
Tranche of outstanding Term Loans made as required by this Section 4.02(i) shall
be applied (I) first, to reduce in direct order of maturity the Scheduled
Repayments of such Tranche of Term Loans which are due and payable within six
calendar months from the date of such payment, and (II) second, to the extent in
excess of the amounts required to be applied pursuant to the preceding clause
(I), to reduce the then remaining Scheduled Repayments of such

                                      -40-
<PAGE>

Tranche of Term Loans being repaid on a pro rata basis (based upon the then
                                        --- ----
remaining unpaid principal amounts of such Scheduled Repayments of the
respective Tranche of Term Loans after giving effect to all prior reductions
thereto).

               (j) With respect to each repayment of Loans required by this
Section 4.02, the Borrower may designate the Types of Loans of the respective
Tranche which are to be repaid and, in the case of Euro Rate Loans, the specific
Borrowing or Borrowings of the respective Tranche pursuant to which such Euro
Rate Loans were made, provided that: (i) repayments of Euro Rate Loans pursuant
                      --------
to this Section 4.02 may only be made on the last day of an Interest Period
applicable thereto unless all Euro Rate Loans of the respective Tranche with
Interest Periods ending on such date of required repayment and all Base Rate
Loans of the respective Tranche have been paid in full; (ii) if any repayment of
Euro Rate Loans made pursuant to a single Borrowing shall reduce the outstanding
Euro Rate Loans made pursuant to such Borrowing to an amount less than the
Minimum Borrowing Amount applicable thereto, such Borrowing (x) in the case of
Eurodollar Loans, shall be automatically converted into a Borrowing of Base Rate
Loans and (y) in the case of Foreign Currency Revolving Loans, shall be repaid;
and (iii) each repayment of any Loans made pursuant to a Borrowing shall be
applied pro rata among such Loans. In the absence of a designation by the
        --- ----
Borrower as described in the preceding sentence, the Administrative Agent shall,
subject to the above, make such designation in its sole discretion.

               (k) Notwithstanding anything to the contrary contained in this
Section 4.02 or elsewhere in this Agreement (including, without limitation, in
Section 13.12), at any time that A Term Loans are outstanding, the Borrower
shall have the option, in its sole discretion, to give the B Lenders the option
to waive their pro rata share of a mandatory repayment of B Term Loans which is
               --- ----
to be made pursuant to Sections 4.02(d), (e), (f), (g) and/or (h) (each such
repayment, a "Waivable Mandatory Repayment") upon the terms and provisions set
forth in this Section 4.02(k); provided that if the amount of the Waivable
                               --------
Mandatory Repayment would exceed the aggregate principal amount of A Term Loans
then outstanding (after giving effect to the application of their pro rata share
                                                                  --- ----
of the respective mandatory repayment), then the amount of the Waivable
Mandatory Repayment shall be limited to such aggregate principal amount of A
Term Loans then outstanding and the remainder of the pro rata share of the
                                                     --- ----
respective mandatory repayment otherwise applicable to the B Term Loans shall be
immediately applied to the repayment of such outstanding B Term Loans. If the
Borrower elects to exercise the option referred to in the immediately preceding
sentence, the Borrower shall give to the Administrative Agent written notice of
its intention to give the B Lenders the right to waive a Waivable Mandatory
Repayment (including in such notice, the aggregate amount of such proposed
repayment) at least five Business Days prior to the date of the proposed
repayment, which notice the Administrative Agent shall promptly forward to all B
Lenders (indicating in such notice the amount of such repayment to be applied to
each such B Lender's outstanding B Term Loans). The Borrower's offer to permit
the B Lenders to waive any such Waivable Mandatory Repayment may apply to all or
part of such repayment, provided that any offer to waive part of such repayment
                        --------
must be made ratably to the B Lenders on the basis of their outstanding B Term
Loans. In the event that any such B Lender desires to waive its pro rata share
                                                                --- ----
of such B Lender's right to receive any such Waivable Mandatory Repayment in
whole or in part, such B Lender shall so advise the Administrative Agent no
later than 4:00 P.M. (New York time) on the date

                                      -41-
<PAGE>

which is two Business Days after the date of such notice from the Administrative
Agent (and the Administrative Agent shall promtly thereafter notify the Borrower
thereof), which notice shall also include the amount such B Lender desires to
receive in respect of such repayment. If any B Lender does not reply to the
Administrative Agent within such two Business Day period, such B Lender will be
deemed not to have waived any part of such repayment. If any B Lender does not
specify an amount it wishes to receive, such B Lender will be deemed to have
accepted 100% of its share of such repayment. In the event that any such B
Lender waives all or part of its share of any such Waivable Mandatory Repayment,
the Administrative Agent shall apply 100% of the amount so waived by such B
Lender to the A Term Loans in accordance with Sections 4.02(i) and (j).
Notwithstanding anything to the contrary contained above, if one or more B
Lenders waives its right to receive all or any part of any Waivable Mandatory
Repayment, but less than all the B Lenders waive in full their right to receive
100% of the total payment otherwise required with respect to the B Term Loans,
then of the amount actually applied to the repayment of B Term Loans of B
Lenders which have waived all or any of part their right to receive 100% of such
repayment, such amount shall be applied to each then outstanding Borrowing of B
Term Loans on a pro rata basis (so that each B Lender shall, after giving effect
                --- ----
to the application of the respective repayment, maintain the same percentage (as
determined for such B Lender, but not the same percentage as the other B Lenders
hold and not the same percentage held by such B Lender prior to repayment) of
each Borrowing of B Term Loans which remains outstanding after giving effect to
such application).

               (l) In addition to any other mandatory repayments pursuant to
this Section 4.02, (i) all then outstanding Loans of any Tranche shall be repaid
in full on the respective Maturity Date for such Tranche of Loans and (ii)
unless the Required Lenders otherwise agree, all then outstanding Loans shall be
repaid in full on the date on which a Change of Control occurs.

               4.03 Method and Place of Payment. Except as otherwise
                    ---------------------------
specifically provided herein, all payments under this Agreement and under any
Note shall be made to the Administrative Agent for the account of the Lender or
Lenders entitled thereto not later than 12:00 Noon (New York time) (or, in the
case of a payment of principal or interest on Foreign Currency Revolving Loans,
no later than 10:00 A.M. (New York time)) on the date when due and shall be made
in immediately available funds at the Payment Office in Dollars (calculated, in
the case of Letter of Credit Fees, Facing Fees and the reimbursement of Drawings
(in each case) in respect of a Letter of Credit denominated in a Foreign
Currency, using the Dollar Equivalent thereof); provided, however, that payments
                                                --------  -------
in respect of principal and interest on Foreign Currency Revolving Loans shall
be made in the Foreign Currency in which such Foreign Currency Revolving Loans
are denominated. Whenever any payment to be made hereunder or under any Note
shall be stated to be due on a day which is not a Business Day, the due date
thereof shall be extended to the next succeeding Business Day and, with respect
to payments of principal, interest shall be payable at the applicable rate
during such extension.

               4.04 Net Payments. (a) All payments made by the Borrower
                    ------------
hereunder and under any Note will be made without setoff, counterclaim or other
defense. Except as provided in Section 4.04(b), all such payments made by the
Borrower and all payments made by the Fronting Lender to any Indemnifying Lender
hereunder will be made free and clear of, and

                                      -42-
<PAGE>

without deduction or withholding for, any present or future taxes, levies,
imposts, duties, fees, assessments or other charges of whatever nature now or
hereafter imposed by any jurisdiction or by any political subdivision or taxing
authority thereof or therein with respect to such payments (but excluding,
except as provided in the second succeeding sentence, any tax imposed on or
measured by the net income or net profits of a Lender or an Indemnifying Lender
pursuant to the laws of the jurisdiction in which such Lender or Indemnifying
Lender, as the case may be, is organized or the jurisdiction in which the
principal office or applicable lending office of such Lender or Indemnifying
Lender, as the case may be, is located or any subdivision thereof or therein)
and all interest, penalties or similar liabilities with respect to such non-
excluded taxes, levies, imposts, duties, fees, assessments or other charges (all
such non-excluded taxes, levies, imposts, duties, fees, assessments or other
charges being referred to collectively as "Taxes"). If any Taxes are so levied
or imposed on any Lender or Indemnifying Lender, (i) the Borrower agrees to pay
such Lender and, in the case of Taxes so levied or imposed on an Indemnifying
Lender, the Fronting Lender and (ii) the Fronting Lender (upon actual receipt of
payments from the Borrower required pursuant to preceding clause (i)) agrees to
pay such Indemnifying Lender, the full amount of such Taxes, and such additional
amounts as may be necessary so that every payment of all amounts due to such
Lender and Indemnifying Lender under this Agreement and under any Note, after
withholding or deduction for or on account of any Taxes, will not be less than
the amount provided for herein or in such Note. If any amounts are payable in
respect of Taxes pursuant to the preceding sentence, (x) the Borrower agrees to
reimburse each Lender and the Fronting Lender (in the case of Taxes payable by
an Indemnifying Lender) and (y) the Fronting Lender (upon actual receipt of the
reimbursement from the Borrower required pursuant to preceding clause (x))
agrees to reimburse each Indemnifying Lender, upon the written request of such
Lender, the Fronting Lender or such Indemnifying Lender, as the case may be, for
taxes imposed on or measured by the net income or net profits of such Lender or
an Indemnifying Lender pursuant to the laws of the jurisdiction in which such
Lender or Indemnifying Lender, as the case may be, is organized or in which the
principal office or applicable lending office of such Lender or Indemnifying
Lender, as the case may be, is located or under the laws of any political
subdivision or taxing authority of any such jurisdiction in which such Lender or
Indemnifying Lender, as the case may be, is organized or in which the principal
office or applicable lending office of such Lender or Indemnifying Lender, as
the case may be, is located and for any withholding of taxes as such Lender or
Indemnifying Lender shall determine are payable by, or withheld from, such
Lender or Indemnifying Lender, in respect of such amounts so paid to or on
behalf of such Lender or Indemnifying Lender pursuant to the preceding sentence
and in respect of any amounts paid to or on behalf of such Lender or
Indemnifying Lender pursuant to this sentence. The Borrower will furnish to the
Administrative Agent within 45 days after the date the payment of any Taxes is
due pursuant to applicable law certified copies of tax receipts evidencing such
payment by the Borrower. The Borrower agrees (i) to indemnify and hold harmless
each Lender, and reimburse such Lender upon its written request, for the amount
of any Taxes so levied or imposed and paid by such Lender and (ii) to indemnify
and hold harmless the Fronting Lender, and reimburse the Fronting Lender upon
its written request, for the amount of any Taxes so levied or imposed and paid
by any Indemnifying Lender.

               (b) Each Lender and each Indemnifying Lender that is not a United
States person (as such term is defined in Section 7701(a)(30) of the Code) for
U.S. Federal income tax

                                      -43-
<PAGE>

purposes agrees to deliver to the Borrower and the Administrative Agent on or
prior to the Effective Date or, in the case of a Lender or Indemnifying Lender
that is (x) an assignee or transferee of an interest or Indemnity Participation
under this Agreement pursuant to Section 1.13, 13.04(b) or 13.04(c) (unless the
respective Lender or Indemnifying Lender was already a Lender or Indemnifying
Lender hereunder immediately prior to such assignment or transfer), on the date
of such assignment or transfer to such Lender or Indemnifying Lender, or (y) a
new Lender or Indemnifying Lender pursuant to Section 1.14 or 1.15, on the date
that such Person becomes a Lender or Indemnifying Lender hereunder, (i) two
accurate and complete original signed copies of Internal Revenue Service Form W-
8ECI or Form W-8BEN (with respect to a complete exemption under an income tax
treaty) (or successor forms) certifying to such Lender's or Indemnifying
Lender's entitlement as of such date to a complete exemption from United States
withholding tax with respect to payments to be made under this Agreement and
under any Note, or (ii) if the Lender or Indemnifying Lender is not a "bank"
within the meaning of Section 881(c)(3)(A) of the Code and cannot deliver either
Internal Revenue Service Form W-8ECI or Form W-8BEN (with respect to a complete
exemption under an income tax treaty) (or any successor forms) pursuant to
clause (i) above, (x) a certificate substantially in the form of Exhibit F (any
such certificate, a "Section 4.04(b)(ii) Certificate") and (y) two accurate and
complete original signed copies of Internal Revenue Service Form W-8BEN (with
respect to the portfolio interest exemption) (or successor form) certifying to
such Lender's or Indemnifying Lender's entitlement as of such date to a complete
exemption from United States withholding tax with respect to payments of
interest to be made under this Agreement and under any Note. In addition, each
Lender and each Indemnifying Lender agrees that from time to time after the
Effective Date, when a lapse in time or change in circumstances renders the
previous certification obsolete or inaccurate in any material respect, such
Lender or Indemnifying Lender will deliver to the Borrower and the
Administrative Agent two new accurate and complete original signed copies of
Internal Revenue Service Form W-8ECI, Form W-8BEN (with respect to the benefits
of any income tax treaty), or Form W-8BEN (with respect to the portfolio
interest exemption) and a Section 4.04(b)(ii) Certificate, as the case may be,
and such other forms as may be required in order to confirm or establish the
entitlement of such Lender or Indemnifying Lender to a continued exemption from
or reduction in United States withholding tax with respect to payments under
this Agreement and any Note, or such Lender or Indemnifying Lender shall
immediately notify the Borrower and the Administrative Agent of its inability to
deliver any such Form or Certificate, in which case such Lender or Indemnifying
Lender shall not be required to deliver any such Form or Certificate pursuant to
this Section 4.04(b). Notwithstanding anything to the contrary contained in
Section 4.04(a), but subject to Sections 13.04(b) and (c) and the immediately
succeeding sentence, (x) the Borrower shall be entitled, to the extent it is
required to do so by law, to deduct or withhold income or similar taxes imposed
by the United States (or any political subdivision or taxing authority thereof
or therein) from interest, Fees or other amounts payable hereunder for the
account of any Lender which is not a United States person (as such term is
defined in Section 7701(a)(30) of the Code) for U.S. Federal income tax purposes
or for the account of the Fronting Lender acting on behalf of any Indemnifying
Lender which is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) for U.S. Federal income tax purposes, to the extent
that such Lender or Indemnifying Lender, as the case may be, has not provided to
the Borrower U.S. Internal Revenue Service Forms that establish a complete
exemption from such deduction or withholding and (y) the Borrower shall not be
obli-

                                      -44-
<PAGE>

gated pursuant to Section 4.04(a) to gross-up payments to be made to a Lender or
the Fronting Lender (acting on behalf of an Indemnifying Lender) in respect of
income or similar taxes imposed by the United States if (I) such Lender or
Indemnifying Lender has not provided to the Borrower the Internal Revenue
Service Forms required to be provided to the Borrower pursuant to this Section
4.04(b) or (II) in the case of a payment, other than interest, to a Lender
described in clause (ii) above or the Fronting Lender on behalf of an
Indemnifying Lender described in clause (ii) above, to the extent that such
Forms do not establish a complete exemption from withholding of such taxes.
Notwithstanding anything to the contrary contained in the preceding sentence or
elsewhere in this Section 4.04 and except as set forth in Sections 13.04(b) and
(c), the Borrower agrees to pay any additional amounts and to indemnify each
Lender and Fronting Lender in the manner set forth in Section 4.04(a) (without
regard to the identity of the jurisdiction requiring the deduction or
withholding) in respect of any amounts deducted or withheld by it as described
in the immediately preceding sentence as a result of any changes that are
effective after the Effective Date in any applicable law, treaty, governmental
rule, regulation, guideline or order, or in the interpretation thereof, relating
to the deducting or withholding of such Taxes.

               SECTION 5. Conditions Precedent to Credit Events on the Initial
                          ----------------------------------------------------
Borrowing Date. The obligation of each Lender to make Loans, and the obligation
--------------
of the Issuing Lender to issue Letters of Credit, on the Initial Borrowing Date,
is subject at the time of the making of such Loans or the issuance of such
Letters of Credit to the satisfaction of the following conditions:

               5.01 Effective Date; Notes. On or prior to the Initial Borrowing
                    ---------------------
Date, (i) the Effective Date shall have occurred and (ii) there shall have been
delivered to the Administrative Agent for the account of each of the Lenders
that has requested same the appropriate A Term Note, B Term Note and/or
Revolving Note executed by the Borrower and to the extent requested by the
Swingline Lender, the Swingline Note executed by the Borrower, in each case, in
the amount, maturity and as otherwise provided herein.

               5.02 Officer's Certificate. On the Initial Borrowing Date, the
                    ---------------------
Administrative Agent shall have received a certificate, dated the Initial
Borrowing Date and signed on behalf of the Borrower by the Chairman of the
Board, the Chief Executive Officer, the President or any Vice President of the
Borrower, certifying on behalf of the Borrower that all of the conditions in
Sections 5.06, 5.07, 5.08 and 6.01 have been satisfied on such date.

               5.03 Opinions of Counsel. On the Initial Borrowing Date, the
                    -------------------
Administrative Agent shall have received opinions, addressed to the
Administrative Agent, the Collateral Agent and each of the Lenders and dated the
Initial Borrowing Date, from (i) Foley & Lardner, special counsel to the Credit
Parties, which opinion shall cover the matters set forth in Exhibit G and such
other matters incident to the transactions contemplated herein as the
Administrative Agent may reasonably request, and (ii) from local counsel to the
Credit Parties and/or the Administrative Agent in each of the States in which a
Mortgaged Property is located, which opinions shall cover such matters incident
to the transactions contemplated herein as the Administrative Agent may
reasonably request and shall be in form and substance reasonably satisfactory to
the Administrative Agent.

                                      -45-
<PAGE>

          5.04  Corporate Documents; Proceedings; etc. (a) On the Initial
                --------------------------------------
Borrowing Date, the Administrative Agent shall have received a certificate from
each Credit Party, dated the Initial Borrowing Date, signed by the Chairman of
the Board, the Chief Executive Officer, the President or any Vice President of
such Credit Party, and attested to by the Secretary or any Assistant Secretary
of such Credit Party, in the form of Exhibit H with appropriate insertions,
together with copies of the certificate or articles of incorporation and by-laws
(or equivalent organizational documents) of such Credit Party and the
resolutions of such Credit Party referred to in such certificate, and each of
the foregoing shall be in form and substance reasonably acceptable to the
Administrative Agent.

          (b)   On the Initial Borrowing Date, all corporate and legal
proceedings and all instruments and agreements in connection with the
transactions contemplated by this Agreement and the other Documents shall be
reasonably satisfactory in form and substance to the Administrative Agent, and
the Administrative Agent shall have received all information and copies of all
documents and papers, including records of corporate proceedings, governmental
approvals, good standing certificates and bring-down telegrams or facsimiles, if
any, which the Administrative Agent reasonably may have requested in connection
therewith, such documents and papers where appropriate to be certified by proper
corporate, limited liability company or governmental authorities.

          5.05  Shareholders' Agreements; Tax Sharing Agreements; Existing
                ----------------------------------------------------------
Indebtedness Agreements. On or prior to the Initial Borrowing Date, there shall
-----------------------
have been delivered to the Administrative Agent true and correct copies of the
following documents:

          (i)   all agreements entered into by the Borrower governing the terms
     and relative rights of its capital stock and any agreements entered into by
     its shareholders relating to its capital stock (collectively, the
     "Shareholders' Agreements");

          (ii)  all tax sharing, tax allocation and other similar agreements
     entered into by the Borrower, the Target or any of their respective
     Subsidiaries (collectively, the "Tax Sharing Agreements"); and

          (iii) all agreements evidencing or relating to Indebtedness for
     borrowed money of the Borrower, the Target or any of their respective
     Subsidiaries which is to remain outstanding after giving effect to the
     Transaction to the extent that such Indebtedness exceeds (or upon the
     utilization of any unused commitments may exceed) $2,000,000 (collectively,
     the "Existing Indebtedness Agreements");

all of which Shareholders' Agreements, Tax Sharing Agreements and Existing
Indebtedness Agreements shall be in form and substance reasonably satisfactory
to the Administrative Agent and shall be in full force and effect on the Initial
Borrowing Date.

          5.06  Consummation of the Transaction. (a) On or prior to the Initial
                -------------------------------
Borrowing Date, there shall have been delivered to the Administrative Agent true
and correct copies of the Acquisition Documents, which Acquisition Documents
shall be in form and substance reasonably satisfactory to the Administrative
Agent and the Required Lenders. All of the

                                      -46-
<PAGE>

conditions precedent to the consummation of the Acquisition as set forth in the
Acquisition Agreement (other than immaterial conditions) shall have been
satisfied (and not waived, unless consented to by the Administrative Agent and
the Required Lenders) to the reasonable satisfaction of the Administrative Agent
and the Required Lenders. Concurrently with the incurrence of the Loans
hereunder on the Initial Borrowing Date, the Acquisition shall have been
consummated in accordance with the terms and conditions of the Acquisition
Documents and all applicable laws.

          (b) On the Initial Borrowing Date, the Borrower shall have received
gross cash proceeds of (Euro) 175,000,000 from the issuance by it of a like
principal amount of Senior Subordinated Notes. There shall have been delivered
to the Administrative Agent true and correct copies of the Senior Subordinated
Note Documents, and all of the Senior Subordinated Note Documents shall be in
form and substance reasonably satisfactory to the Administrative Agent and the
Required Lenders. All of the conditions precedent to the issuance of the Senior
Subordinated Notes as set forth in the Senior Subordinated Note Documents shall
have been satisfied (and not waived, unless consented to by the Administrative
Agent and the Required Lenders), to the reasonable satisfaction of the
Administrative Agent and the Required Lenders. The Senior Subordinated Notes
shall have been issued in accordance with the terms and conditions of the Senior
Subordinated Note Documents and all applicable laws.

          (c) (i)  On the Initial Borrowing Date and concurrently with the
incurrence of the Loans hereunder on such date, (x) the total commitments in
respect of the Indebtedness to be Refinanced shall have been terminated, and all
loans and notes with respect thereto shall have been repaid in full (together
with interest thereon), all letters of credit issued thereunder shall have been
terminated (except to the extent that same are back-stopped by a Letter of
Credit issued hereunder) and all other amounts (including premiums) owing
pursuant to the Indebtedness to be Refinanced shall have been repaid in full and
all documents in respect of the Indebtedness to be Refinanced and all guarantees
with respect thereto shall have been terminated (except as to indemnification
and expense reimbursement provisions, which may survive to the extent provided
therein) and be of no further force and effect, and (y) the Administrative Agent
shall have received evidence, in form and substance reasonably satisfactory to
it, that the Refinancing has occurred.

              (ii) On the Initial Borrowing Date and concurrently with the
incurrence of the Loans hereunder on such date, the creditors in respect of the
Indebtedness to be Refinanced shall have terminated and released all security
interests and Liens (if any) on the assets owned by the Borrower, the Target and
their respective Subsidiaries. The Administrative Agent shall have received such
releases of security interests in and Liens on the assets owned by the Borrower,
the Target and their respective Subsidiaries as may have been reasonably
requested by the Administrative Agent, which releases shall be in form and
substance reasonably satisfactory to the Administrative Agent. Without limiting
the foregoing, there shall have been delivered (i) proper termination statements
(Form UCC-3 or the appropriate equivalent) for filing under the UCC (or foreign
equivalent) of each jurisdiction where a financing statement (Form UCC-1 or the
appropriate equivalent) was filed with respect to the Borrower, the Target or
any of their respective Subsidiaries in connection with the security interests
created with respect to the Indebtedness to be Refinanced and the documentation
related thereto, (ii) termination or

                                      -47-
<PAGE>

reassignment of any security interest in, or Lien on, any patents, trademarks,
copyrights, or similar interests of the Borrower, the Target or any of their
respective Subsidiaries on which filings have been made, (iii) terminations of
all mortgages, leasehold mortgages, deeds of trust and leasehold deeds of trust
created with respect to property of the Borrower, the Target or any of their
respective Subsidiaries, in each case, to secure the obligations in respect of
the Indebtedness to be Refinanced, all of which shall be in form and substance
reasonably satisfactory to the Administrative Agent, and (iv) all collateral
owned by the Borrower, the Target or any of their respective Subsidiaries in the
possession of any of the creditors in respect of the Indebtedness to be
Refinanced or any collateral agent or trustee under any related security
document shall have been returned to the Borrower, the Target or such
Subsidiary, as the case may be (all of which deliveries pursuant to this
sentence may be delivered to the Administrative Agent in escrow pending the
funding of the Loans hereunder on the Initial Borrowing Date).

          5.07  Adverse Change, Approvals. (a) Since December 31, 2000, nothing
                -------------------------
shall have occurred (and neither the Administrative Agent nor any Lender shall
have become aware of any facts or conditions not previously known) which the
Administrative Agent or the Required Lenders shall determine has had, or could
reasonably be expected to have, a Material Adverse Effect or a material adverse
effect on the business, operations, liabilities, assets, property or condition
(financial or otherwise) of the Target and its Subsidiaries taken as a whole.

          (b)   On or prior to the Initial Borrowing Date, all necessary
governmental (domestic and foreign) and third party approvals and/or consents in
connection with the Transaction (and the incurrence of Indebtedness hereunder
and the granting of Liens hereunder) shall have been obtained and remain in
effect (including proper notification and consultation with the appropriate
workers' council of the Target), and all applicable waiting periods with respect
thereto shall have expired without any action being taken by any competent
authority which restrains, prevents or imposes materially adverse conditions
upon the consummation of the Transaction or the other transactions contemplated
by the Documents or otherwise referred to herein or therein. On the Initial
Borrowing Date, there shall not exist any judgment, order, injunction or other
restraint issued or filed or a hearing seeking injunctive relief or other
restraint pending or notified prohibiting or imposing materially adverse
conditions upon the Transaction or the other transactions contemplated by the
Documents or otherwise referred to herein or therein.

          5.08  Litigation. On the Initial Borrowing Date, there shall be no
                ----------
actions, suits or proceedings pending or threatened (i) with respect to the
Transaction, this Agreement or any other Document or (ii) which the
Administrative Agent or the Required Lenders shall determine has had, or could
reasonably be expected to have, a Material Adverse Effect or a material adverse
effect on the business, operations, liabilities, assets, property or condition
(financial or otherwise) of the Target and its Subsidiaries taken as a whole.

          5.09  Pledge Agreement. On the Initial Borrowing Date, each Credit
                ----------------
Party shall have duly authorized, executed and delivered the Pledge Agreement in
the form of Exhibit I, with such changes thereto, or additional pledge
agreements (or amendments thereto) entered into in connection therewith, as
foreign counsel for the Administrative Agent may suggest in respect of any
Pledge Agreement Collateral of any Foreign Subsidiary to be pledged by any
Credit Party (as

                                      -48-
<PAGE>

amended, modified or supplemented from time to time, collectively, the "Pledge
Agreement") and shall have delivered to the Collateral Agent, as Pledgee
thereunder, all of the Pledge Agreement Collateral, if any, referred to therein
and then owned by such Credit Party, (x) endorsed in blank in the case of
promissory notes constituting Pledge Agreement Collateral and (y) together with
executed and undated endorsements for transfer in the case of equity interests
constituting certificated Pledge Agreement Collateral, along with evidence that
all other actions necessary or, in the reasonable opinion of the Collateral
Agent, desirable, to perfect the security interests purported to be created by
the Pledge Agreement have been taken and the Pledge Agreement shall be in full
force and effect.

           5.10   Security Agreement. On the Initial Borrowing Date, each Credit
                  ------------------
Party shall have duly authorized, executed and delivered the Security Agreement
in the form of Exhibit J (as modified, supplemented or amended from time to
time, the "Security Agreement") covering all of such Credit Party's Security
Agreement Collateral, together with:

           (i)   proper Financing Statements (Form UCC-1 or the equivalent)
     fully executed for filing under the UCC or other appropriate filing offices
     of each jurisdiction as may be necessary or, in the reasonable opinion of
     the Collateral Agent, desirable, to perfect the security interests
     purported to be created by the Security Agreement;

           (ii)  certified copies of Requests for Information or Copies (Form
     UCC-11), or equivalent reports as of a recent date, listing all effective
     financing statements that name the Borrower, the Target or any of their
     respective Subsidiaries as debtor and that are filed in the jurisdictions
     referred to in clause (i) above, together with copies of such other
     financing statements that name the Borrower, the Target or any of their
     respective Subsidiaries as debtor (none of which shall cover any of the
     Collateral except (x) to the extent evidencing Permitted Liens or (y) those
     in respect of which the Collateral Agent shall have received termination
     statements (Form UCC-3) or such other termination statements as shall be
     required by local law fully executed for filing);

           (iii) evidence of the completion of all other recordings and filings
     of, or with respect to, the Security Agreement as may be necessary or, in
     the reasonable opinion of the Collateral Agent, desirable, to perfect the
     security interests intended to be created by the Security Agreement; and

           (iv)  evidence that all other actions necessary or, in the reasonable
     opinion of the Collateral Agent, desirable to perfect and protect the
     security interests purported to be created by the Security Agreement have
     been taken, and the Security Agreement shall be in full force and effect.

           5.11  Subsidiaries Guaranty. On the Initial Borrowing Date, each
                 ---------------------
Subsidiary Guarantor shall have duly authorized, executed and delivered the
Subsidiaries Guaranty in the form of Exhibit K (as amended, modified or
supplemented from time to time, the "Subsidiaries Guaranty"), and the
Subsidiaries Guaranty shall be in full force and effect.

                                      -49-
<PAGE>

          5.12  Mortgages; Title Insurance; Surveys; Landlord Waivers. On the
                -----------------------------------------------------
Initial Borrowing Date, the Collateral Agent shall have received:

          (i)   fully executed counterparts of Mortgages, each in form and
     substance reasonably satisfactory to the Administrative Agent, which
     Mortgages shall cover such of the Real Property owned or leased by the
     Borrower or any Subsidiary Guarantor and designated as a "Mortgaged
     Property" on Schedule III, together with evidence that counterparts of such
     Mortgages have been delivered to the title insurance company insuring the
     Lien of such Mortgages for recording in all places to the extent necessary
     or, in the reasonable opinion of the Collateral Agent desirable, to
     effectively create a valid and enforceable first priority mortgage lien,
     subject only to Permitted Liens related thereto, on such Mortgaged Property
     in favor of the Collateral Agent (or such other trustee as may be required
     or desired under local law) for the benefit of the Secured Creditors;

          (ii)  Mortgage Policies on the Mortgages for the Mortgaged Properties
     issued by a title insurer reasonably satisfactory to the Collateral Agent
     and in amounts satisfactory to the Collateral Agent and assuring the
     Collateral Agent that each of the Mortgages on such Mortgaged Properties is
     a valid and enforceable first priority mortgage lien on such Mortgaged
     Properties, free and clear of all defects and encumbrances except Permitted
     Liens related thereto, and such Mortgage Policies shall otherwise be in
     form and substance reasonably satisfactory to the Collateral Agent and
     shall include, as appropriate, an endorsement for future advances under
     this Agreement and the Notes and for any other matter that the Collateral
     Agent in its discretion may reasonably request, shall not include an
     exception for mechanics' liens, and shall provide for affirmative insurance
     and such reinsurance as the Collateral Agent in its discretion may
     reasonably request;

          (iii) recent surveys, in form and substance reasonably satisfactory to
     the Collateral Agent, of those owned Mortgaged Properties designated as
     requiring a survey on Schedule III, certified by a licensed professional
     surveyor reasonably satisfactory to the Collateral Agent and dated recent a
     date reasonably acceptable to the Collateral Agent; and

          (iv)  fully executed landlord waivers as the Administrative Agent may
     have reasonably requested, each of which shall be in form and substance
     reasonably satisfactory to the Collateral Agent.

          5.13  Financial Statements; Pro Forma Balance Sheet; Projections. On
                ----------------------------------------------------------
or prior to the Initial Borrowing Date, the Administrative Agent shall have
received true and correct copies of the historical financial statements, the pro
                                                                             ---
forma financial statements and the Projections referred to in Sections 7.05(a)
-----
and (d).

          5.14  Solvency Certificate; Insurance Certificates. On the Initial
                --------------------------------------------
Borrowing Date, the Administrative Agent shall have received:

                                      -50-
<PAGE>

           (i)  a solvency certificate from the chief financial officer of the
     Borrower in the form of Exhibit L; and

           (ii) certificates of insurance complying with the requirements of
     Section 8.03 for the business and properties of the Borrower and its
     Subsidiaries, in form and substance reasonably satisfactory to the
     Administrative Agent and naming the Collateral Agent as an additional
     insured and/or as loss payee, and stating that such insurance shall not be
     canceled without at least 30 days' prior written notice by the insurer to
     the Collateral Agent.

           5.15  Environmental and Hazardous Substance Analyses; etc. On or
                 ----------------------------------------------------
prior to the Initial Borrowing Date, the Administrative Agent shall have
received environmental and hazardous substance analyses with respect to the Real
Property of the Target and its Subsidiaries in scope, and in form, reasonably
acceptable to the Administrative Agent. The Administrative Agent shall be
reasonably satisfied that (i) the aggregate exposure of the Borrower and its
Subsidiaries (including the Target and its Subsidiaries) for all potential
environmental claims, costs, remediations and similar expenses relating to the
existing operations of the Target and its Subsidiaries will not exceed
10,000,000 French francs (exclusive of the amounts to which the Borrower is
entitled to be indemnified for under clause (ii) below), (ii) the Seller's
environmental indemnity of 100,000,000 French francs will be sufficient to
reimburse the Borrower and its Subsidiaries (including the Target and its
Subsidiaries) for all other potential environmental claims, costs, remediations
and similar expenses relating to the existing operations of the Target and its
Subsidiaries, and (iii) 430,000,000 French francs will be sufficient to
reimburse the Borrower and its Subsidiaries (including the Target and its
Subsidiaries) for all matters for which the Borrower and its Subsidiaries
(including the Target and its Subsidiaries) are entitled to be indemnified
against in respect of the Acquisition.

           5.16  Fees, etc. On the Initial Borrowing Date, the Borrower shall
                 ----------
have paid to the Administrative Agent and each Lender all costs, fees and
expenses (including, without limitation, legal fees and expenses) payable to the
Administrative Agent or such Lender to the extent then due.

           SECTION 6. Conditions Precedent to All Credit Events. The obligation
                      -----------------------------------------
of each Lender to make Loans (including Loans made on the Initial Borrowing
Date), and the obligation of the Issuing Lender to issue Letters of Credit
(including Letters of Credit issued on the Initial Borrowing Date), is subject,
at the time of each such Credit Event (except as hereinafter indicated), to the
satisfaction of the following conditions:

           6.01  No Default; Representations and Warranties. At the time of each
                 ------------------------------------------
such Credit Event and also after giving effect thereto (i) there shall exist no
Default or Event of Default and (ii) all representations and warranties
contained herein and in the other Credit Documents shall be true and correct in
all material respects with the same effect as though such representations and
warranties had been made on the date of such Credit Event (it being understood
and agreed that any representation or warranty which by its terms is made as of
a specified date shall be required to be true and correct in all material
respects only as of such specified date).

                                      -51-
<PAGE>

          6.02  Notice of Borrowing; Letter of Credit Request. (a) Prior to the
                ---------------------------------------------
making of each Loan (other than a Swingline Loan or a Revolving Loan made
pursuant to a Mandatory Borrowing), the Administrative Agent shall have received
a Notice of Borrowing meeting the requirements of Section 1.03(a). Prior to the
making of each Swingline Loan, the Swingline Lender shall have received the
notice referred to in Section 1.03(b)(i).

          (b)   Prior to the issuance of each Letter of Credit, the
Administrative Agent and the Issuing Lender shall have received a Letter of
Credit Request meeting the requirements of Section 2.03(a).

          6.03  Regulation U. If at any time any Margin Stock is pledged or
                ------------
required to be pledged pursuant to any Security Document, all actions required
to be taken pursuant to Section 8.17 shall have been taken to the reasonable
satisfaction of the Administrative Agent.

          The acceptance of the benefits of each Credit Event shall constitute a
representation and warranty by the Borrower to the Administrative Agent and each
of the Lenders that all the conditions specified in Section 5 (with respect to
Credit Events on the Initial Borrowing Date) and in this Section 6 (with respect
to Credit Events on or after the Initial Borrowing Date) and applicable to such
Credit Event exist as of that time. All of the Notes, certificates, legal
opinions and other documents and papers referred to in Section 5 and in this
Section 6, unless otherwise specified, shall be delivered to the Administrative
Agent at the Notice Office for the account of each of the Lenders and, except
for the Notes, in sufficient counterparts or copies for each of the Lenders and
shall be in form and substance reasonably satisfactory to the Administrative
Agent and the Required Lenders.

          SECTION 7. Representations, Warranties and Agreements. In order to
                     ------------------------------------------
induce the Lenders to enter into this Agreement and to make the Loans, and issue
(or participate in) the Letters of Credit as provided herein, the Borrower makes
the following representations, warranties and agreements, in each case after
giving effect to the Transaction, all of which shall survive the execution and
delivery of this Agreement and the Notes and the making of the Loans and the
issuance of the Letters of Credit, with the occurrence of each Credit Event on
or after the Initial Borrowing Date being deemed to constitute a representation
and warranty that the matters specified in this Section 7 are true and correct
in all material respects on and as of the Initial Borrowing Date and on the date
of each such other Credit Event (it being understood and agreed that any
representation or warranty which by its terms is made as of a specified date
shall be required to be true and correct in all material respects only as of
such specified date).

          7.01  Organizational Status. Each of the Borrower and each of its
                ---------------------
Subsidiaries (i) is a duly organized and validly existing corporation,
partnership or limited liability company, as the case may be, in good standing
under the laws of the jurisdiction of its organization, (ii) has the corporate,
partnership or limited liability company power and authority, as the case may
be, to own its property and assets and to transact the business in which it is
engaged and presently proposes to engage and (iii) is duly qualified and is
authorized to do business and is in good standing in each jurisdiction where the
ownership, leasing or operation of its property or the conduct of its business
requires such qualifications except for failures to be so qualified which,
either

                                      -52-
<PAGE>

individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

          7.02  Power and Authority. Each Credit Party and each Subsidiary
                -------------------
thereof has the corporate, partnership or limited liability company power and
authority, as the case may be, to execute, deliver and perform the terms and
provisions of each of the Documents to which it is party and has taken all
necessary corporate, partnership or limited liability company action, as the
case may be, to authorize the execution, delivery and performance by it of each
of such Documents. Each Credit Party and each Subsidiary thereof has duly
executed and delivered each of the Documents to which it is party, and each of
such Documents constitutes its legal, valid and binding obligation enforceable
in accordance with its terms, except to the extent that the enforceability
thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws generally affecting creditors' rights and by
equitable principles (regardless of whether enforcement is sought in equity or
at law).

          7.03  No Violation. Neither the execution, delivery or performance by
                ------------
any Credit Party or any Subsidiary thereof of the Documents to which it is a
party, nor compliance by it with the terms and provisions thereof, (i) will
contravene any provision of any law, statute, rule or regulation or any order,
writ, injunction or decree of any court or governmental instrumentality, (ii)
will conflict with or result in any breach of any of the terms, covenants,
conditions or provisions of, or constitute a default under, or result in the
creation or imposition of (or the obligation to create or impose) any Lien
(except pursuant to the Security Documents) upon any of the property or assets
of the Borrower or any of its Subsidiaries pursuant to the terms of any
indenture, mortgage, deed of trust, credit agreement or loan agreement, or any
other material agreement, contract or instrument, in each case to which the
Borrower or any of its Subsidiaries is a party or by which it or any of its
property or assets is bound or to which it may be subject, or (iii) will violate
any provision of the certificate or articles of incorporation, certificate of
formation, limited liability company agreement or by-laws (or equivalent
organizational documents), as applicable, of the Borrower or any of its
Subsidiaries.

          7.04  Approvals. No order, consent, approval, license, authorization
                ---------
or validation of, or filing, recording or registration with (except for (x)
those that have otherwise been obtained or made on or prior to the Initial
Borrowing Date and which remain in full force and effect on the Initial
Borrowing Date and (y) filings which are necessary to perfect the security
interests created under the Security Documents, which filings will be made
within ten days following the Initial Borrowing Date), or exemption by, any
governmental or public body or authority, or any subdivision thereof, is
required to be obtained or made by, or on behalf of, any Credit Party to
authorize, or is required to be obtained or made by, or on behalf of, any Credit
Party in connection with, (i) the execution, delivery and performance of any
Document or (ii) the legality, validity, binding effect or enforceability of any
such Document.

          7.05  Financial Statements; Financial Condition; Undisclosed
                ------------------------------------------------------
Liabilities; Projections. (a)(i) The consolidated balance sheet of each of the
------------------------
Borrower and the Target for its fiscal year ended on December 31, 2000 and the
related consolidated statements of income, cash flows and shareholders' equity
of each of the Borrower and the Target for its fiscal year ended on such date,
copies of which have been furnished to the Lenders prior to the Initial
Borrowing Date,

                                      -53-
<PAGE>

present fairly in all material respects the consolidated financial position of
each of the Borrower and the Target at the date of such balance sheet and the
consolidated results of their respective operations for the period covered
thereby. All of the foregoing historical financial statements have been prepared
in accordance with generally accepted accounting principles consistently applied
except as otherwise noted therein.

          (ii) The pro forma consolidated balance sheet of the Borrower as of
                   --- -----
December 31, 2000 (after giving effect to the Transaction and the financing
therefor) and the related pro forma consolidated statements of income, cash
                          --- -----
flows and shareholders equity of the Borrower for the twelve-month period ended
on December 31, 2000 (after giving effect to the Transaction and the financing
therefor), copies of which have been furnished to the Lenders prior to the
Initial Borrowing Date, present fairly in all material respects the pro forma
                                                                    --- -----
consolidated financial position of the Borrower as of December 31, 2000 and the
pro forma consolidated results of the operations of the Borrower for the period
--- -----
covered thereby. All of the foregoing pro forma financial statenments have been
                                      --- -----
prepared on a basis consistent with the historical financial statements of the
Borrower set forth in preceding clause (i).

          (b)  On and as of the Initial Borrowing Date and after giving effect
to the Transaction and to all Indebtedness (including the Loans and the Senior
Subordinated Notes) being incurred or assumed and Liens created by the Credit
Parties in connection therewith, (i) the sum of the assets, at a fair valuation,
of each of the Borrower on a stand-alone basis and of the Borrower and its
Subsidiaries taken as a whole will exceed their respective debts, (ii) each of
the Borrower on a stand-alone basis and the Borrower and its Subsidiaries taken
as a whole have not incurred and do not intend to incur, and do not believe that
they will incur, debts beyond their respective ability to pay such debts as such
debts mature, and (iii) each of the Borrower on a stand-alone basis and the
Borrower and its Subsidiaries taken as a whole will have sufficient capital with
which to conduct their respective businesses. For purposes of this Section
7.05(b), "debt" means any liability on a claim, and "claim" means (a) right to
payment, whether or not such a right is reduced to judgment, liquidated,
unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured, or unsecured or (b) right to an equitable remedy for
breach of performance if such breach gives rise to a payment, whether or not
such right to an equitable remedy is reduced to judgment, fixed, contingent,
matured, unmatured, disputed, undisputed, secured or unsecured. The amount of
contingent liabilities at any time shall be computed as the amount that, in the
light of all the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured liability
of the Borrower or any of its Subsidiaries.

          (c)  Except as fully disclosed in the financial statements delivered
pursuant to Section 7.05(a), there were as of the Initial Borrowing Date no
liabilities or obligations with respect to the Borrower or any of its
Subsidiaries of any nature whatsoever (whether absolute, accrued, contingent or
otherwise and whether or not due) which, either individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect. As of
the Initial Borrowing Date, the Borrower does not know of any basis for the
assertion against it or any of its Subsidiaries of any liability or obligation
of any nature whatsoever that is not fully disclosed in the financial statements
delivered pursuant to Section 7.05(a) or referred to in the immediately

                                      -54-
<PAGE>

preceding sentence which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

          (d)   The Projections delivered to the Administrative Agent and the
Lenders prior to the Initial Borrowing Date have been prepared in good faith and
are based on reasonable assumptions, and there are no statements or conclusions
in the Projections which are based upon or include information known to the
Borrower to be misleading in any material respect or which fail to take into
account material information known to the Borrower as of the Initial Borrowing
Date regarding the matters reported therein. On the Initial Borrowing Date, the
Borrower believes that the Projections are reasonable and attainable, it being
recognized by the Lenders, however, that projections as to future events are not
to be viewed as facts and that the actual results during the period or periods
covered by the Projections may differ from the projected results and such
differences may be material.

          (e)   After giving effect to the Transaction (but for this purpose
assuming that the Transaction and the related financing had occurred prior to
December 31, 2000), since December 31, 2000, there has been no change in the
business, operations, liabilities, assets, property or condition (financial or
otherwise) of the Borrower or any of its Subsidiaries that has had, or could
reasonably be expected to have, either individually or in the aggregate, a
Material Adverse Effect.

          7.06  Litigation. There are no actions, suits or proceedings pending
                ----------
or, to the knowledge of the Borrower, threatened (i) with respect to the
Transaction or any Document or (ii) that could reasonably be expected, either
individually or in the aggregate, to have a Material Adverse Effect.

          7.07  True and Complete Disclosure. All factual information (taken as
                ----------------------------
a whole) furnished by or on behalf of the Borrower in writing to the
Administrative Agent or any Lender (including, without limitation, all
information contained in the Documents) for purposes of or in connection with
this Agreement, the other Credit Documents or any transaction contemplated
herein or therein is, and all other such factual information (taken as a whole)
hereafter furnished by or on behalf of the Borrower in writing to the
Administrative Agent or any Lender will be, true and accurate in all material
respects on the date as of which such information is dated or certified and not
incomplete by omitting to state any fact necessary to make such information
(taken as a whole) not misleading in any material respect at such time in light
of the circumstances under which such information was provided.

          7.08  Use of Proceeds; Margin Regulations. (a) All proceeds of the A
                -----------------------------------
Term Loans and the Initial B Term Loans will be used by the Borrower (i) to
finance, in part, the Transaction and (ii) to pay the fees and expenses incurred
in connection with the Transaction.

          (b)   All proceeds of the Incremental B Term Loans will be used by the
Borrower for its and its Subsidiaries' working capital and general corporate
requirements.

          (c)   All proceeds of the Revolving Loans and the Swingline Loans will
be used for the working capital and general corporate purposes of the Borrower
and its Subsidiaries;

                                      -55-
<PAGE>

provided that up to, but no more than, $64,200,000 of Revolving Loans and
--------
Swingline Loans in the aggregate may be used for the purposes described in
clauses (a) of this Section 7.08.

          (d)   Except as otherwise permitted by Sections 9.03(iii) and (v), no
part of any Credit Event (or the proceeds thereof) will be used to purchase or
carry any Margin Stock or to extend credit for the purpose of purchasing or
carrying any Margin Stock. Neither the making of any Loan nor the use of the
proceeds thereof nor the occurrence of any other Credit Event will violate or be
inconsistent with the provisions of Regulation T, U or X of the Board of
Governors of the Federal Reserve System.

          (e)   The fair market value of all Margin Stock owned by the Borrower
and its Subsidiaries (other than the capital stock of the Borrower held in
treasury) does not exceed $2,500,000. At the time of each Credit Event, not more
than 25% of the value of the assets of the Borrower and its Subsidiaries taken
as a whole (including all capital stock of the Borrower held in treasury) will
constitute Margin Stock.

          7.09  Tax Returns and Payments. Each of the Borrower and each of its
                ------------------------
Subsidiaries has timely filed with the appropriate taxing authority all federal
and state income tax returns and all other material returns, statements, forms
and reports for taxes, domestic and foreign (collectively, the "Returns")
required to be filed by, or with respect to the income, properties or operations
of, the Borrower and/or any of its Subsidiaries. The Returns accurately reflect
in all material respects all liability for taxes of the Borrower and its
Subsidiaries for the periods covered thereby. Each of the Borrower and each of
its Subsidiaries has paid all taxes and assessments payable by it which have
become due, other than those that are being contested in good faith by
proceedings proper and adequately disclosed and fully provided for on the
financial statements of the Borrower and its Subsidiaries in accordance with
generally accepted accounting principles. There is no material action, suit,
proceeding, investigation, audit or claim now pending or, to the best knowledge
of the Borrower, threatened by any authority regarding any taxes relating to the
Borrower or any of its Subsidiaries which, if adversely determined, could
reasonably be expected to result in a material liability to the Borrower and its
Subsidiaries taken as a whole. Neither the Borrower nor any of its Subsidiaries
has entered into an agreement or waiver or been requested to enter into an
agreement or waiver extending any statute of limitations relating to the payment
or collection of taxes of the Borrower or any of its Subsidiaries, or is aware
of any circumstances that would cause the taxable years or other taxable periods
of the Borrower or any of its Subsidiaries not to be subject to the normally
applicable statute of limitations. Neither the Borrower nor any of its
Subsidiaries has provided, with respect to themselves or property held by them,
any consent under Section 341 of the Code. Neither the Borrower nor any of its
Subsidiaries has incurred, nor will any of them incur, any material tax
liability in connection with the Transaction or any other transactions
contemplated hereby (it being understood that the representation contained in
this sentence does not cover any future tax liabilities of the Borrower or any
of its Subsidiaries arising as a result of the operation of their businesses in
the ordinary course of business).

          7.10  Compliance with ERISA. (i) Schedule IV sets forth, as of the
                ---------------------
Initial Borrowing Date, the name of each Plan. Each Plan (and each related
trust, insurance contract or fund) is in substantial compliance with its terms
and in substantial compliance with all applicable

                                      -56-
<PAGE>

laws, including, without limitation, ERISA and the Code; for each Plan (and each
related trust, if any) which is intended to be qualified under Section 401(a) of
the Code, the Borrower (or its representative) has received a determination
letter from the Internal Revenue Service to the effect that each such Plan meets
the requirements of Sections 401(a) and 501(a) of the Code (unless the Plan is a
standardized plan that meets the requirements set forth in Section 6 of Rev.
Proc. 2000-20 for reliance on the opinion letter issued to the sponsor for the
standardized plan); no Reportable Event has occurred; no Plan which is a
multiemployer plan (as defined in Section 4001(a)(3) of ERISA) is insolvent or
in reorganization; no Plan has an Unfunded Current Liability; no Plan which is
subject to Section 412 of the Code or Section 302 of ERISA has an accumulated
funding deficiency, within the meaning of such sections of the Code or ERISA, or
has applied for or received a waiver of an accumulated funding deficiency or an
extension of any amortization period, within the meaning of Section 412 of the
Code or Section 303 or 304 of ERISA; all contributions required to be made with
respect to a Plan have been timely made; neither the Borrower nor any Subsidiary
of the Borrower nor any ERISA Affiliate has incurred any material liability
(including any indirect, contingent or secondary liability) to or on account of
a Plan pursuant to Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069,
4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971 or 4975 of the Code or
expects to incur any such material liability under any of the foregoing sections
with respect to any Plan; no condition exists which presents a material risk to
the Borrower or any Subsidiary of the Borrower or any ERISA Affiliate of
incurring a material liability to or on account of a Plan pursuant to the
foregoing provisions of ERISA and the Code; no proceedings have been instituted
to terminate or appoint a trustee to administer any Plan which is subject to
Title IV of ERISA; no action, suit, proceeding, hearing, audit or investigation
with respect to the administration, operation or the investment of assets of any
Plan (other than routine claims for benefits) is pending, expected or
threatened; using actuarial assumptions and computation methods consistent with
Part 1 of subtitle E of Title IV of ERISA, the aggregate liabilities of the
Borrower and its Subsidiaries and its ERISA Affiliates to all Plans which are
multiemployer plans (as defined in Section 4001(a)(3) of ERISA) in the event of
a complete withdrawal therefrom, as of the close of the most recent fiscal year
of each such Plan ended prior to the date of the most recent Credit Event, would
not exceed $5,000,000; each group health plan (as defined in Section 607(1) of
ERISA or Section 4980B(g)(2) of the Code) which covers or has covered employees
or former employees of the Borrower, any Subsidiary of the Borrower, or any
ERISA Affiliate has at all times been operated in compliance with the provisions
of Part 6 of subtitle B of Title I of ERISA and Section 4980B of the Code,
except for any failure to so comply which could not, individually or in the
aggregate, result in a material liability of the Borrower or any Subsidiary of
the Borrower; no lien imposed under the Code or ERISA on the assets of the
Borrower or any Subsidiary of the Borrower or any ERISA Affiliate exists or is
likely to arise on account of any Plan; and the Borrower and its Subsidiaries
may cease contributions to or terminate any employee benefit plan maintained by
any of them without incurring any material liability.

          (ii)  Each Foreign Pension Plan has been maintained in substantial
compliance with its terms and in substantial compliance with the requirements of
any and all applicable laws, statutes, rules, regulations and orders and has
been maintained, where required, in good standing with applicable regulatory
authorities. All contributions required to be made with respect to a Foreign
Pension Plan have been timely made. Neither the Borrower nor any of its
Subsidiaries

                                      -57-
<PAGE>

has incurred any material obligation in connection with the termination of or
withdrawal from any Foreign Pension Plan. The present value of the accrued
benefit liabilities (whether or not vested) under each Foreign Pension Plan,
determined as of the end of the Borrower's most recently ended fiscal year on
the basis of actuarial assumptions, each of which is reasonable, did not exceed
the current value of the assets of such Foreign Pension Plan allocable to such
benefit liabilities.

          7.11  The Security Documents. (a) The provisions of the Security
                ----------------------
Agreement are effective to create in favor of the Collateral Agent for the
benefit of the Secured Creditors a legal, valid and enforceable security
interest in all right, title and interest of the Credit Parties in the Security
Agreement Collateral described therein, and the Collateral Agent, for the
benefit of the Secured Creditors, has (or within 10 days following the Initial
Borrowing Date will have) a fully perfected security interest in all right,
title and interest in all of the Security Agreement Collateral described therein
(to the extent that such security interest can be perfected by filing a UCC
financing statement or, to the extent required by the Security Agreement, by
taking possession of (or taking certain other actions with respect to) the
respective Security Agreement Collateral), subject to no other Liens other than
Permitted Liens. In addition, the recordation of (x) the Grant of Security
Interest in U.S. Patents and (y) the Grant of Security Interest in U.S.
Trademarks in the respective form attached to the Security Agreement, in each
case in the United States Patent and Trademark Office, together with filings on
Form UCC-1 made pursuant to the Security Agreement, will create, as may be
perfected by such filings and recordation, a perfected security interest in the
United States trademarks and patents covered by the Security Agreement, and the
recordation of the Grant of Security Interest in U.S. Copyrights in the form
attached to the Security Agreement with the United States Copyright Office,
together with filings on Form UCC-1 made pursuant to the Security Agreement,
will create, as may be perfected by such filings and recordation, a perfected
security interest in the United States copyrights covered by the Security
Agreement.

          (b)   The security interests created in favor of the Collateral Agent,
as Pledgee, for the benefit of the Secured Creditors, under the Pledge Agreement
constitute perfected security interests in the Pledge Agreement Collateral
described in the Pledge Agreement, subject to no security interests of any other
Person. No filings or recordings are required in order to perfect (or maintain
the perfection or priority of) the security interests created in the Pledge
Agreement Collateral under the Pledge Agreement other than with respect to that
portion of the Pledge Agreement Collateral constituting a "general intangible"
under the UCC.

          (c)   Each Mortgage creates, as security for the obligations purported
to be secured thereby, a valid and enforceable perfected security interest in
and mortgage lien on the respective Mortgaged Property in favor of the
Collateral Agent (or such other trustee as may be required or desired under
local law) for the benefit of the Secured Creditors, superior and prior to the
rights of all third Persons (except that the security interest and mortgage lien
created on such Mortgaged Property may be subject to the Permitted Liens related
thereto) and subject to no other Liens (other than Permitted Liens related
thereto).

          7.12  Properties. All Real Property owned or leased by the Borrower
                ----------
and each of its Domestic Subsidiaries as of the Initial Borrowing Date, and the
nature of the interest therein,

                                      -58-
<PAGE>

is set forth in Schedule III. Each of the Borrower and each of its Subsidiaries
has good and indefeasible title to all material properties owned by it, and a
valid leasehold interest in all material property leased by it, including (in
each case) all material property reflected in the most recent historical balance
sheets referred to in Section 7.05(a) (except as sold or otherwise disposed of
since the date of such balance sheet in the ordinary course of business or as
permitted by the terms of this Agreement), free and clear of all Liens, other
than Permitted Liens.

          7.13  Capitalization. On the Initial Borrowing Date, the authorized
                --------------
capital stock of the Borrower shall consist of (i) 75,000,000 shares of common
stock, $.01 par value per share, and (ii) 3,500,000 shares of preferred stock,
$.01 par value per share, of which no shares of such preferred stock are issued
and outstanding. All outstanding shares of capital stock of the Borrower have
been duly and validly issued and are fully paid and non-assessable (other than
any assessment on the shareholders of the Borrower that may be imposed as a
matter of law). The Borrower does not have outstanding any capital stock or
other securities convertible into or exchangeable for its capital stock or any
rights to subscribe for or to purchase, or any options for the purchase of, or
any agreement providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to, its capital stock,
except for options, warrants and rights to purchase shares of the Borrower's
common stock and/or Qualified Preferred Stock which may be issued from time to
time.

          7.14  Subsidiaries. As of the Initial Borrowing Date, the Borrower
                ------------
has no Subsidiaries other than those Subsidiaries listed on Schedule V. Schedule
V correctly sets forth, as of the Initial Borrowing Date, (i) the percentage
ownership (direct or indirect) of the Borrower in each class of capital stock or
other equity of its Subsidiaries and also identifies the direct owner thereof,
and (ii) the jurisdiction of organization of each such Subsidiary.

          7.15  Compliance with Statutes, etc. Each of the Borrower and each of
                ------------------------------
its Subsidiaries is in compliance with all applicable statutes, regulations and
orders of, and all applicable restrictions imposed by, all governmental bodies,
domestic or foreign, in respect of the conduct of its business and the ownership
of its property (including, without limitation, applicable statutes,
regulations, orders and restrictions relating to environmental standards and
controls), except such noncompliances as could not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

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

          7.17  Public Utility Holdings Company Act. Neither the Borrower nor
                -----------------------------------
any of its Subsidiaries is a "holding company," or a "subsidiary company" of a
"holding company," or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company" within the meaning of the Public Utility
Holdings Company Act of 1935, as amended.

          7.18  Environmental Matters. (a) Each of the Borrower and each of
                ---------------------
its Subsidiaries is in compliance with all applicable Environmental Laws and the
requirements of any permits issued under such Environmental Laws. There are no
pending or, to the knowledge

                                      -59-
<PAGE>

of the Borrower, threatened Environmental Claims against the Borrower or any of
its Subsidiaries or any Real Property owned, leased or operated by the Borrower
or any of its Subsidiaries (including any such claim arising out of the
ownership, lease or operation by the Borrower or any of its Subsidiaries of any
Real Property formerly owned, leased or operated by the Borrower or any of its
Subsidiaries but no longer owned, leased or operated by the Borrower or any of
its Subsidiaries). There are no facts, circumstances, conditions or occurrences
with respect to the business or operations of the Borrower or any of its
Subsidiaries, or any Real Property owned, leased or operated by the Borrower or
any of its Subsidiaries (including any Real Property formerly owned, leased or
operated by the Borrower or any of its Subsidiaries but no longer owned, leased
or operated by the Borrower or any of its Subsidiaries) or, to the knowledge of
the Borrower, any property adjoining or adjacent to any such Real Property that
could be reasonably expected (i) to form the basis of an Environmental Claim
against the Borrower or any of its Subsidiaries or any Real Property owned,
leased or operated by the Borrower or any of its Subsidiaries or (ii) to cause
any Real Property owned, leased or operated by the Borrower or any of its
Subsidiaries to be subject to any restrictions on the ownership, lease,
occupancy or transferability of such Real Property by the Borrower or any of its
Subsidiaries under any applicable Environmental Law.

          (b)   Hazardous Materials have not at any time been generated, used,
treated or stored on, or transported to or from, or Released on or from, any
Real Property owned, leased or operated by the Borrower or any of its
Subsidiaries or to the knowledge of the Borrower, any property adjoining or
adjacent to any Real Property, where such generation, use, treatment, storage,
transportation or Release has violated or could be reasonably expected to
violate any applicable Environmental Law or give rise to an Environmental Claim.

          (c)   Notwithstanding anything to the contrary in this Section 7.18,
the representations and warranties made in this Section 7.18 shall not be untrue
unless the effect of any or all conditions, violations, claims, restrictions,
failures and noncompliances of the types described above could, either
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

          7.19  Labor Relations. Neither the Borrower nor any of its
                ---------------
Subsidiaries is engaged in any unfair labor practice that could reasonably be
expected, either individually or in the aggregate, to have a Material Adverse
Effect. There is (i) no unfair labor practice complaint pending against the
Borrower or any of its Subsidiaries or, to the knowledge of the Borrower,
threatened against any of them, before the National Labor Relations Board (or
any foreign equivalent thereof), and no grievance or arbitration proceeding
arising out of or under any collective bargaining agreement is so pending
against the Borrower or any of its Subsidiaries or, to the knowledge of the
Borrower, threatened against any of them, (ii) no strike, labor dispute,
slowdown or stoppage pending against the Borrower or any of its Subsidiaries or,
to the knowledge of the Borrower, threatened against the Borrower or any of its
Subsidiaries and (iii) no union representation question exists with respect to
the employees of the Borrower or any of its Subsidiaries, except (with respect
to any matter specified in clause (i), (ii) or (iii) above, either individually
or in the aggregate) such as could not reasonably be expected to have a Material
Adverse Effect.

                                      -60-
<PAGE>

          7.20  Intellectual Property, etc.  Each of the Borrower and each of
                ---------------------------
its Subsidiaries owns or has the right to use all the patents, trademarks,
permits, domain names, service marks, trade names, copyrights, licenses,
franchises, inventions, trade secrets, proprietary information and know-how of
any type, whether or not written (including, but not limited to, rights in
computer programs and databases) and formulas, or rights with respect to the
foregoing, and has obtained assignments of all leases, licenses and other rights
of whatever nature, necessary for the present conduct of its business, without
any known conflict with the rights of others which, or the failure to obtain
which, as the case may be, could reasonably be expected, either individually or
in the aggregate, to have a Material Adverse Effect.

          7.21  Indebtedness.  Schedule VI sets forth a true and complete list
                ------------
of all Indebtedness (including Contingent Obligations (other than Contingent
Obligations otherwise permitted under Section 9.04(vii))) of the Borrower and
its Subsidiaries as of the Initial Borrowing Date and which is to remain
outstanding after giving effect to the Transaction (excluding the Loans, the
Letters of Credit, the Senior Subordinated Notes and the Receivables
Indebtedness pursuant to the Factoring Agreement, the "Existing Indebtedness"),
in each case showing the aggregate principal amount thereof and the name of the
respective borrower and any Credit Party or any of its Subsidiaries which
directly or indirectly guarantees such debt.

          7.22  Insurance.  Schedule VII sets forth a true and complete listing
                ---------
of all insurance maintained by the Borrower and its Subsidiaries as of the
Initial Borrowing Date, with the amounts insured (and any deductibles) set forth
therein.

          7.23  Representations and Warranties in Other Documents.  All
                -------------------------------------------------
representations and warranties set forth in the other Documents were true and
correct in all material respects at  the time as of which such representations
and warranties were made (or deemed made) and shall be true and correct in all
material respects as of the Initial Borrowing Date as if such representations or
warranties were made on and as of such date (it being understood and agreed that
any such representation or warranty which by its terms is made as of a specified
date shall be true and correct in all material respects as of such earlier
date).

          7.24  Subordination.  The subordination provisions contained in the
                -------------
Senior Subordinated Note Documents are enforceable against the Borrower, the
Subsidiary Guarantors and the holders of the Senior Subordinated Notes, and all
Obligations hereunder and under the other Credit Documents (including without
limitation, the Subsidiaries Guaranty) are within the definitions of "Senior
Debt" (or "Guarantor Senior Debt" in the case of the obligations of any
Subsidiary Guarantor) and "Designated Senior Debt" included in such
subordination provisions.

          SECTION 8.  Affirmative Covenants.  The Borrower hereby covenants and
                      ---------------------
agrees that on and after the Effective Date and until the Total Commitment and
all Letters of Credit have terminated and the Loans, Notes and Unpaid Drawings
(in each case together with interest thereon), Fees and all other Obligations
(other than indemnities described in Section 13.13 which are not then due and
payable) incurred hereunder and thereunder, are paid in full:

                                      -61-
<PAGE>

          8.01  Information Covenants.  The Borrower will furnish to each Lender
                ---------------------
and each Indemnifying Lender:

          (a)     Quarterly Financial Statements. Within 45 days after the close
                  ------------------------------
of each of the first three quarterly accounting periods in each fiscal year of
the Borrower, (i) the consolidated and consolidating balance sheets of the
Borrower and its Subsidiaries as at the end of such quarterly accounting period
and the related consolidated and consolidating statements of income and
stockholders' equity and statement of cash flows for such quarterly accounting
period and for the elapsed portion of the fiscal year ended with the last day of
such quarterly accounting period, in each case setting forth comparative figures
for the corresponding quarterly accounting period in the prior fiscal year and
comparable budgeted figures for such quarterly accounting period as set forth in
the respective budget delivered pursuant to Section 8.01(d), all of which shall
be certified by the chief financial officer or treasurer of the Borrower that
they fairly present in all material respects in accordance with generally
accepted accounting principles the financial condition of the Borrower and its
Subsidiaries as of the dates indicated and the results of their operations for
the periods indicated, subject to normal year-end audit adjustments and the
absence of footnotes, and (ii) management's discussion and analysis of the
important operational and financial developments during such quarterly
accounting period; provided that, notwithstanding the foregoing, the
                   --------
consolidating financial statements required to be delivered pursuant to this
Section 8.01(a) shall be in such form and scope as may be mutually agreed upon
from time to time by the Administrative Agent and the Borrower.

          (b)     Annual Financial Statements. Within 90 days after the close of
                  ---------------------------
each fiscal year of the Borrower, (i) the consolidated and consolidating balance
sheets of the Borrower and its Subsidiaries as at the end of such fiscal year
and the related consolidated and consolidating statements of income and
stockholders' equity and statement of cash flows for such fiscal year setting
forth comparative figures for the preceding fiscal year and certified (x) in the
case of the consolidated financial statements, by PricewaterhouseCoopers LLP or
such other independent certified public accountants of recognized national
standing reasonably acceptable to the Administrative Agent, together with a
report of such accounting firm stating that in the course of its regular audit
of the financial statements of the Borrower and its Subsidiaries, which audit
was conducted in accordance with generally accepted auditing standards, such
accounting firm obtained no knowledge of any Default or an Event of Default
relating to financial or accounting matters which has occurred and is continuing
or, if in the opinion of such accounting firm such a Default or an Event of
Default has occurred and is continuing, a statement as to the nature thereof,
and (y) in the case of the consolidating financial statements, by the chief
financial officer or treasurer of the Borrower that they fairly present in all
material respects in accordance with generally accepted accounting principles
the financial condition of the respective Subsidiaries or group of Subsidiaries
covered by thereby as of the dates indicated and the results of their operations
and changes in their cash flows for the periods indicated, and (ii) management's
discussion and analysis of the important operational and financial developments
during such fiscal year; provided that, notwithstanding the foregoing, the
                         --------
consolidating financial statements required to be delivered pursuant to this
Section 8.01(b) shall be in such form and scope as may be mutually agreed upon
from time to time by the Administrative Agent and the Borrower.

                                      -62-
<PAGE>

          (c)  Management Letters.  Promptly after the Borrower's or any of its
               ------------------
Subsidiaries' receipt thereof, a copy of any "management letter" received from
its certified public accountants and management's response thereto.

          (d)  Budgets.  No later than 30 days following the first day of each
               -------
fiscal year of the Borrower, a budget in form reasonably satisfactory to the
Administrative Agent (including budgeted statements of income, sources and uses
of cash and balance sheets) for the Borrower and its Subsidiaries on a
consolidated basis prepared by the Borrower (i) for each of the four fiscal
quarters of such fiscal year prepared in detail and (ii) for each of the
immediately succeeding three fiscal years prepared in summary form, in each case
setting forth, with appropriate discussion, the principal assumptions upon which
such budgets are based.

          (e)  Officer's Certificates.  At the time of the delivery of the
               ----------------------
financial statements provided for in Sections 8.01(a) and (b), a compliance
certificate from the chief financial officer or treasurer of the Borrower in the
form of Exhibit M certifying on behalf of the Borrower that, to such officer's
best knowledge after due inquiry, no Default or Event of Default has occurred
and is continuing or, if any Default or Event of Default has occurred and is
continuing, specifying the nature and extent thereof, which certificate shall
(i) set forth in reasonable detail the calculations required to establish
whether the Borrower and its Subsidiaries were in compliance with the provisions
of Sections 4.02(e), 4.02(g), 8.17, 9.01(x), 9.01(xxi), 9.02(v), 9.02(xiv),
9.02(xvi), 9.03(iii), 9.03(v), 9.03(vi), 9.04, 9.05, 9.07 through 9.12,
inclusive, and 9.18 in each case at the end of such fiscal quarter or year, as
the case may be, (ii) set forth the Bank Debt Ratings (if any) assigned by both
S&P and Moody's as of the date of such certificate, (iii) if delivered with the
financial statements required by Section 8.01(b), set forth in reasonable detail
the amount of (and the calculations required to establish the amount of) Excess
Cash Flow for the respective Excess Cash Payment Period, and (iv) certify that
there have been no changes to Annexes A through G of the Security Agreement and
Annexes A through G of the Pledge Agreement, in each case since the Initial
Borrowing Date or, if later, since the date of the most recent certificate
delivered pursuant to this Section 8.01(e), or if there have been any such
changes, a list in reasonable detail of such changes (but, in each case with
respect to this clause (iv), only to the extent that such changes are required
to be reported to the Collateral Agent pursuant to the terms of such Security
Documents) and whether the Borrower and the other Credit Parties have otherwise
taken all actions required to be taken by them pursuant to such Security
Documents in connection with any such changes.

          (f)  Notice of Default, Litigation and Material Adverse Effect.
               ---------------------------------------------------------
Promptly, and in any event within three Business Days after any officer of the
Borrower or any of its Subsidiaries obtains knowledge thereof, notice of (i) the
occurrence of any event which constitutes a Default or an Event of Default, (ii)
any litigation or governmental investigation or proceeding pending against the
Borrower or any of its Subsidiaries (x) which, either individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect or (y)
with respect to any Document, or (iii) any other event, change or circumstance
that has had, or could reasonably be expected to have, a Material Adverse
Effect.

          (g)  Other Reports and Filings.  Promptly after the filing or delivery
               -------------------------
thereof, copies of all financial information, proxy materials and reports which
the Borrower or any of its

                                      -63-
<PAGE>

Subsidiaries shall publicly file with the Securities and Exchange Commission or
any successor thereto (the "SEC") or deliver to holders (or any trustee, agent
or representative therefor) of its Senior Subordinated Notes or other
Indebtedness with a principal amount of $5,000,000 or more in either case
pursuant to the terms of the documentation governing such Indebtedness.

          (h)  Environmental Matters. Promptly after any officer of the Borrower
               ---------------------
or any of its Subsidiaries obtains knowledge thereof, notice of one or more of
the following environmental matters to the extent that such environmental
matters, either individually or when aggregated with all other such
environmental matters, could reasonably be expected to have a Material Adverse
Effect:

          (i)    any pending or threatened Environmental Claim against the
     Borrower or any of its Subsidiaries or any Real Property owned, leased or
     operated by the Borrower or any of its Subsidiaries;

          (ii)   any condition or occurrence on or arising from any Real
     Property owned, leased or operated by the Borrower or any of its
     Subsidiaries that (a) results in noncompliance by the Borrower or any of
     its Subsidiaries with any applicable Environmental Law or (b) could
     reasonably be expected to form the basis of an Environmental Claim against
     the Borrower or any of its Subsidiaries or any such Real Property;

          (iii)  any condition or occurrence on any Real Property owned, leased
     or operated by the Borrower or any of its Subsidiaries that could
     reasonably be expected to cause such Real Property to be subject to any
     restrictions on the ownership, lease, occupancy, use or transferability by
     the Borrower or any of its Subsidiaries of such Real Property under any
     Environmental Law; and

          (iv)   the taking of any removal or remedial action in response to the
     actual or alleged presence of any Hazardous Material on any Real Property
     owned, leased or operated by the Borrower or any of its Subsidiaries as
     required by any Environmental Law or any governmental or other
     administrative agency; provided that in any event the Borrower shall
                            --------
     deliver to each Lender all notices received by the Borrower or any of its
     Subsidiaries from any government or governmental agency under, or pursuant
     to, CERCLA which identify the Borrower or any of its Subsidiaries as
     potentially responsible parties for remediation costs or which otherwise
     notify the Borrower or any of its Subsidiaries of potential liability under
     CERCLA.

All such notices shall describe in reasonable detail the nature of the claim,
investigation, condition, occurrence or removal or remedial action and the
Borrower's or such Subsidiary's response thereto.

          (i)    Bank Debt Ratings.  Promptly, and in any event within five
                 -----------------
Business Days after any officer of the Borrower obtains knowledge thereof,
notice of any change to the Bank Debt Ratings by either Moody's or S&P.

                                      -64-
<PAGE>

          (j)   Other Information.  From time to time, such other information or
                -----------------
documents (financial or otherwise) with respect to the Borrower or any of its
Subsidiaries as the Administrative Agent or any Lender may reasonably request.

          8.02  Books, Records and Inspection; Annual Meetings.  (a)  The
                ----------------------------------------------
Borrower will, and will cause each of its Subsidiaries to, keep proper books of
record and accounts in which full, true and correct entries in conformity with
generally accepted accounting principles and all requirements of law shall be
made of all dealings and transactions in relation to its business and
activities.  The Borrower will, and will cause each of its Subsidiaries to,
permit officers and designated representatives of the Administrative Agent or
any Lender to visit and inspect, under guidance of officers of the Borrower or
such Subsidiary, any of the properties of the Borrower or such Subsidiary, and
to examine the books of account of the Borrower or such Subsidiary and discuss
the affairs, finances and accounts of the Borrower or such Subsidiary with, and
be advised as to the same by, its and their officers and independent
accountants, all upon reasonable prior notice and at such reasonable times and
intervals and to such reasonable extent as the Administrative Agent or such
Lender may reasonably request.

          (b)   At a date to be mutually agreed upon between the Administrative
Agent and the Borrower, the Borrower will, at the request of the Administrative
Agent, hold a meeting with all of the Lenders at which meeting will be reviewed
the financial results of the Borrower and its Subsidiaries for the previous
fiscal year and the budgets presented for the current fiscal year of the
Borrower.

          8.03  Maintenance of Property; Insurance.  (a)  The Borrower will, and
                ----------------------------------
will cause each of its Subsidiaries to, (i) keep all property necessary to the
business of the Borrower and its Subsidiaries in good working order and
condition, ordinary wear and tear and damage by casualty excepted, (ii) maintain
with financially sound and reputable insurance companies insurance on all such
property and against such risks as is consistent and in accordance with industry
practice for companies similarly situated owning similar properties and engaged
in similar businesses as the Borrower or any of its Subsidiaries operates, and
(iii) furnish to the Administrative Agent, together with each set of financial
statements delivered pursuant to Section 8.01(b), full information as to the
insurance carried.

          (b)   The Borrower will, and will cause each of the Subsidiary
Guarantors to, at all times keep its property insured in favor of the Collateral
Agent, and all policies or certificates (or certified copies thereof) with
respect to such insurance (and any other insurance maintained by the Borrower
and/or such Subsidiary Guarantors) (i) shall be endorsed to the Collateral
Agent's satisfaction for the benefit of the Collateral Agent (including, without
limitation, by naming the Collateral Agent as loss payee and/or additional
insured), (ii) shall state that such insurance policies shall not be canceled
without at least 30 days' prior written notice thereof by the respective insurer
to the Collateral Agent, shall provide that the respective insurers irrevocably
waive any and all rights of subrogation with respect to the Collateral Agent and
the other Secured Creditors, and (iii) shall be delivered to the Collateral
Agent.

          (c)   If the Borrower or any of its Subsidiaries shall fail to
maintain insurance in accordance with this Section 8.03, or if the Borrower or
any of its Subsidiaries shall fail to so

                                      -65-
<PAGE>

endorse and deliver all policies or certificates with respect thereto, the
Administrative Agent shall have the right (but shall be under no obligation) to
procure such insurance and the Borrower agrees to reimburse the Administrative
Agent for all reasonable costs and expenses of procuring such insurance.

          8.04  Existence; Franchises.  The Borrower will, and will cause each
                ---------------------
of its Subsidiaries to, do or cause to be done, all things necessary to preserve
and keep in full force and effect its existence and its material rights,
franchises, licenses, permits, copyrights, trademarks and patents; provided,
                                                                   --------
however, that nothing in this Section 8.04 shall prevent (i) sales of assets and
-------
other transactions by the Borrower or any of its Subsidiaries in accordance with
Section 9.02, (ii) the abandonment by the Borrower or any of its Subsidiaries of
any copyrights, trademarks or patents which the Borrower reasonably determines
are no longer material to the operations of the Borrower and its Subsidiaries
taken as a whole or (iii) the withdrawal by the Borrower or any of its
Subsidiaries of its qualification as a foreign corporation, partnership or
limited liability company, as the case may be, in any jurisdiction where such
withdrawal could not, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

          8.05  Compliance with Statutes, etc.  The Borrower will, and will
                ------------------------------
cause each of its Subsidiaries to, comply with all applicable statutes,
regulations and orders of, and all applicable restrictions imposed by, all
governmental bodies, domestic or foreign, in respect of the conduct of its
business and the ownership of its property (including applicable statutes,
regulations, orders and restrictions relating to environmental standards and
controls), except such noncompliances as could not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

          8.06  Compliance with Environmental Laws.  (a)  The Borrower will
                ----------------------------------
comply, and will cause each of its Subsidiaries to comply, with all
Environmental Laws and permits applicable to, or required by, the ownership,
lease or use of its Real Property now or hereafter owned, leased or operated by
the Borrower or any of its Subsidiaries, except such noncompliances as could
not, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, and will promptly pay or cause to be paid all costs and
expenses incurred in connection with such compliance, and will keep or cause to
be kept all such Real Property free and clear of any Liens imposed pursuant to
such Environmental Laws.  Neither the Borrower nor any of its Subsidiaries will
generate, use, treat, store, Release or dispose of, or permit the generation,
use, treatment, storage, Release or disposal of Hazardous Materials on any Real
Property now or hereafter owned, leased or operated by the Borrower or any of
its Subsidiaries, or transport or permit the transportation of Hazardous
Materials to or from any such Real Property, except for Hazardous Materials
generated, used, treated, stored, Released or disposed of at any such Real
Properties in compliance in all material respects with all applicable
Environmental Laws and as required in connection with the normal operation, use
and maintenance of the business or operations of the Borrower or any of its
Subsidiaries and which could not, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

          (b)   (i) After the receipt by the Administrative Agent or any Lender
of any notice of the type described in Section 8.01(h), (ii) at any time that
the Borrower or any of its

                                      -66-
<PAGE>

Subsidiaries are not in compliance with Section 8.06(a) or (iii) in the event
that the Administrative Agent or the Lenders have exercised any of the remedies
pursuant to the last paragraph of Section 10, the Borrower will (in each case)
provide, at the sole expense of the Borrower and at the request of the
Administrative Agent, an environmental site assessment report concerning any
Real Property owned, leased or operated by the Borrower or any of its
Subsidiaries, prepared by an environmental consulting firm reasonably approved
by the Administrative Agent, indicating the presence or absence of Hazardous
Materials and the potential cost of any removal or remedial action in connection
with such Hazardous Materials on such Real Property. If the Borrower fails to
provide the same within 30 days after such request was made, the Administrative
Agent may order the same, the cost of which shall be borne by the Borrower, and
the Borrower shall grant and hereby grants to the Administrative Agent and the
Lenders and their respective agents access to such Real Property and
specifically grants the Administrative Agent and the Lenders an irrevocable non-
exclusive license, subject to the rights of tenants, to undertake such an
assessment at any reasonable time upon reasonable notice to the Borrower, all at
the sole expense of the Borrower.

          8.07  ERISA.  As soon as possible and, in any event, within ten (10)
                -----
days after the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate
knows or has reason to know of the occurrence of any of the following, the
Borrower will deliver to each of the Lenders a certificate of the chief
financial officer or treasurer of the Borrower setting forth the full details as
to such occurrence and the action, if any, that the Borrower, such Subsidiary or
such ERISA Affiliate is required or proposes to take, together with any notices
required or proposed to be given or filed by the Borrower, such Subsidiary, the
Plan administrator or such ERISA Affiliate to or with the PBGC or any other
governmental agency, or a Plan participant and any notices received by the
Borrower, such Subsidiary or such ERISA Affiliate from the PBGC or any other
government agency, or a Plan participant with respect thereto:  that a
Reportable Event has occurred (except to the extent that the Borrower has
previously delivered to the Lenders a certificate and notices (if any)
concerning such event pursuant to the next clause hereof); that a contributing
sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan subject to Title
IV of ERISA is subject to the advance reporting requirement of PBGC Regulation
Section 4043.61 (without regard to subparagraph (b)(1) thereof), and an event
described in subsection .62, .63, .64, .65, .66, .67 or .68 of PBGC Regulation
Section 4043 is reasonably expected to occur with respect to such Plan within
the following 30 days; that an accumulated funding deficiency, within the
meaning of Section 412 of the Code or Section 302 of ERISA, has been incurred or
an application may be or has been made for a waiver or modification of the
minimum funding standard (including any required installment payments) or an
extension of any amortization period under Section 412 of the Code or Section
303 or 304 of ERISA with respect to a Plan; that any contribution required to be
made with respect to a Plan or Foreign Pension Plan has not been timely made;
that a Plan has been or may be terminated, reorganized, partitioned or declared
insolvent under Title IV of ERISA; that a Plan has an Unfunded Current
Liability; that proceedings may be or have been instituted to terminate or
appoint a trustee to administer a Plan which is subject to Title IV of ERISA;
that a proceeding has been instituted pursuant to Section 515 of ERISA to
collect a delinquent contribution to a Plan; that the Borrower, any Subsidiary
of the Borrower or any ERISA Affiliate will or may incur any material liability
(including any indirect, contingent, or secondary liability) to or on account of
the termination of or withdrawal

                                      -67-
<PAGE>

from a Plan under Section 4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or
with respect to a Plan under Section 401(a)(29), 4971, 4975 or 4980 of the Code
or Section 409, 502(i) or 502(l) of ERISA or with respect to a group health plan
(as defined in Section 607(1) of ERISA or Section 4980B(g)(2) of the Code) under
Section 4980B of the Code; or that the Borrower or any Subsidiary of the
Borrower may incur any material liability for retiree benefits pursuant to any
employee welfare benefit plan (as defined in Section 3(1) of ERISA) that
provides benefits to retired employees or other former employees (other than as
required by the severance pay Plans of the Borrower or any of its Subsidiaries
or Section 601 of ERISA) or any Plan or any Foreign Pension Plan. The Borrower
will deliver to each of the Lenders copies of any records, documents or other
information that must be furnished to the PBGC with respect to any Plan pursuant
to Section 4010 of ERISA. At the request of any Lender, the Borrower will also
deliver to such Lender a complete copy of the annual report (on Internal Revenue
Service Form 5500-series) of each Plan (including, to the extent required, the
related financial and actuarial statements and opinions and other supporting
statements, certifications, schedules and information) required to be filed with
the Internal Revenue Service. In addition to any certificates or notices
delivered to the Lenders pursuant to the first sentence hereof, copies of any
records, documents or other information required to be furnished to the PBGC,
and any material notices received by the Borrower, any Subsidiary of the
Borrower or any ERISA Affiliate with respect to any Plan or Foreign Pension Plan
or received from any governmental agency or plan administrator or sponsor or
trustee with respect to any multiemployer plan (as defined in Section 4001(a)(3)
of ERISA), shall be delivered to the Lenders no later than ten (10) days after
the date such records, documents and/or information has been furnished to the
PBGC or any other governmental agency or such notice has been received by the
Borrower, the respective Subsidiary or the ERISA Affiliate, as applicable. The
Borrower and each of its applicable Subsidiaries shall ensure that all Foreign
Pension Plans administered by it or into which it makes payments obtains or
retains (as applicable) registered status under and as required by applicable
law and is administered in a timely manner in all respects in compliance with
all applicable laws except where the failure to do any of the foregoing could
not, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

          8.08  End of Fiscal Years; Fiscal Quarters.  The Borrower will cause
                ------------------------------------
(i) each of its fiscal years to end on December 31 of each year and (ii) each of
its fiscal quarters to end on March 31, June 30, September 30 and December 31 of
each year.

          8.09  Performance of Obligations.  The Borrower will, and will cause
                --------------------------
each of its Subsidiaries to, perform all of its obligations under the terms of
each mortgage, indenture, security agreement, loan agreement or credit agreement
and each other material agreement, contract or instrument by which it is bound,
except such non-performances as could not, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

          8.10  Payment of Taxes.  The Borrower will pay and discharge, and will
                ----------------
cause each of its Subsidiaries to pay and discharge, all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or
upon any properties belonging to it, in each case on a timely basis, and all
lawful claims which, if unpaid, might become a Lien or charge upon any
properties of the Borrower or any of its Subsidiaries not otherwise permitted
under Section 9.01(i); provided that neither the Borrower nor any of its
                       --------
Subsidiaries shall be

                                      -68-
<PAGE>

required to pay any such tax, assessment, charge, levy or claim which is being
contested in good faith and by proper proceedings if it has maintained adequate
reserves with respect thereto in accordance with generally accepted accounting
principles.

          8.11  Use of Proceeds.  The Borrower will use the proceeds of the
                ---------------
Loans only as provided in Section 7.08.

          8.12  Additional Security; Further Assurances; etc.  (a)  The Borrower
                ---------------------------------------------
will, and will cause each of the other Credit Parties to, grant to the
Collateral Agent for the benefit of the Secured Creditors security interests and
Mortgages in such assets and properties of the Borrower and the other Credit
Parties as are not covered by the original Security Documents and as may be
reasonably requested from time to time by the Administrative Agent or the
Required Lenders (collectively, the "Additional Security Documents"); provided,
                                                                      --------
however, neither the Borrower nor any other Credit Party will be required to
-------
grant a Mortgage on any Real Property pursuant to this Section 8.12(a) unless
the fair market value (as determined in good faith by the Borrower) of such Real
Property equals or exceeds $2,500,000.  All such security interests and
Mortgages shall be granted pursuant to documentation reasonably satisfactory in
form and substance to the Administrative Agent and shall constitute valid and
enforceable perfected security interests and Mortgages superior to and prior to
the rights of all third Persons and subject to no other Liens except for
Permitted Liens.  The Additional Security Documents or instruments related
thereto shall have been duly recorded or filed in such manner and in such places
as are required by law to establish, perfect, preserve and protect the Liens in
favor of the Collateral Agent required to be granted pursuant to the Additional
Security Documents and all taxes, fees and other charges payable in connection
therewith shall have been paid in full.

          (b)   The Borrower will, and will cause each of its Subsidiaries to,
at the expense of the Borrower, make, execute, endorse, acknowledge, file and/or
deliver to the Collateral Agent from time to time such vouchers, invoices,
schedules, confirmatory assignments, conveyances, financing statements, transfer
endorsements, powers of attorney, certificates, real property surveys, reports,
landlord waivers and other assurances or instruments and take such further steps
relating to the Collateral covered by any of the Security Documents as the
Collateral Agent may reasonably require and as are generally consistent with the
terms of this Agreement and such Security Documents. Furthermore, the Borrower
will, and will cause the other Credit Parties to, deliver to the Collateral
Agent such opinions of counsel, title insurance and other related documents as
may be reasonably requested by the Administrative Agent to assure itself that
this Section 8.12 has been complied with.

          (c)   If the Administrative Agent or the Required Lenders reasonably
determine that they are required by law or regulation to have appraisals
prepared in respect of the Real Property of the Borrower and its Subsidiaries
constituting Collateral, the Borrower will, at its own expense, provide to the
Administrative Agent appraisals which satisfy the applicable requirements of the
Real Estate Appraisal Reform Amendments of the Financial Institution Reform,
Recovery and Enforcement Act of 1989, as amended, and which shall otherwise be
in form and substance reasonably satisfactory to the Administrative Agent.

                                      -69-
<PAGE>

          (d)     The Borrower agrees that each action required by clauses (a)
through (c) of this Section 8.12 shall be completed as soon as possible, but in
no event later than 60 days after such action is requested to be taken by the
Administrative Agent or the Required Lenders; provided that, in no event will
                                              --------
the Borrower or any of its Subsidiaries be required to take any action, other
than using its commercially reasonable best efforts, to obtain consents from
third parties with respect to its compliance with this Section 8.12.

          8.13  Foreign Subsidiaries Security.  If, following a change in the
                -----------------------------
relevant sections of the Code or the regulations, rules, rulings, notices or
other official pronouncements issued or promulgated thereunder, the Borrower
does not within 30 days after a request from the Administrative Agent or the
Required Lenders deliver evidence, in form and substance reasonably satisfactory
to the Administrative Agent (which evidence may be in the form of an opinion of
counsel), with respect to any Foreign Subsidiary of the Borrower which has not
already had all of its stock pledged pursuant to the Pledge Agreement that (i) a
pledge of 66-2/3% or more of the total combined voting power of all classes of
capital stock of such Foreign Subsidiary entitled to vote, (ii) the entering
into by such Foreign Subsidiary of a security agreement in substantially the
form of the Security Agreement and (iii) the entering into by such Foreign
Subsidiary of a guaranty in substantially the form of the Subsidiaries Guaranty,
in any such case could reasonably be expected to cause (I) any undistributed
earnings of such Foreign Subsidiary as determined for Federal income tax
purposes to be treated as a deemed dividend to such Foreign Subsidiary's United
States parent for Federal income tax purposes or (II) other Federal income tax
consequences to the Credit Parties having an adverse financial consequence to
any Credit Party in any material respect, then in the case of a failure to
deliver the evidence described in clause (i) above, that portion of such Foreign
Subsidiary's outstanding capital stock not theretofore pledged pursuant to the
Pledge Agreement shall be promptly pledged to the Collateral Agent for the
benefit of the Secured Creditors pursuant to the Pledge Agreement (or another
pledge agreement in substantially similar form, if needed), and in the case of a
failure to deliver the evidence described in clause (ii) above, such Foreign
Subsidiary shall promptly execute and deliver the Security Agreement and Pledge
Agreement (or another security agreement or pledge agreement in substantially
similar form, if needed), granting the Collateral Agent for the benefit of the
Secured Creditors a security interest in all of such Foreign Subsidiary's assets
and securing the obligations of  the Borrower under the Credit Documents and
under any Interest Rate Protection Agreement or Other Hedging Agreement entered
into with a Secured Creditor and, in the event the Subsidiaries Guaranty shall
have been executed by such Foreign Subsidiary, the obligations of such Foreign
Subsidiary thereunder, and in the case of a failure to deliver the evidence
described in clause (iii) above, such Foreign Subsidiary shall promptly execute
and deliver the Subsidiaries Guaranty (or another guaranty in substantially
similar form, if needed), guaranteeing the obligations of the Borrower under the
Credit Documents and under any Interest Rate Protection Agreement or Other
Hedging Agreement entered into with a Secured Creditor, in each case to the
extent that the entering into of the Security Agreement, Pledge Agreement or
Subsidiaries Guaranty is permitted by the laws of the respective foreign
jurisdiction and with all documents delivered pursuant to this Section 8.13 to
be in form and substance reasonably satisfactory to the Administrative Agent.

          8.14  Permitted Acquisitions.  (a)  Subject to the provisions of this
                ----------------------
Section 8.14 and the requirements contained in the definition of Permitted
Acquisition, the Borrower and its

                                      -70-
<PAGE>

Wholly-Owned Subsidiaries may from time to time effect Permitted Acquisitions,
so long as (in each case except to the extent the Required Lenders otherwise
specifically agree in writing in the case of a specific Permitted Acquisition):
(i) no Default or Event of Default shall have occurred and be continuing at the
time of the consummation of the proposed Permitted Acquisition or immediately
after giving effect thereto; (ii) the Borrower shall have given to the
Administrative Agent and the Lenders at least 10 Business Days' prior written
notice of any Permitted Acquisition (or such shorter period of time as may be
reasonably acceptable to the Administrative Agent), which notice shall describe
in reasonable detail the principal terms and conditions of such Permitted
Acquisition; (iii) calculations are made by the Borrower showing compliance with
the financial covenants contained in Sections 9.08 through 9.12, inclusive, for
the respective Calculation Period on a Pro Forma Basis as if the respective
Permitted Acquisition (as well as all other Permitted Acquisitions theretofore
consummated after the first day of such Calculation Period) had occurred on the
first day of such Calculation Period, and such recalculations shall show that
such financial covenants would have been complied with if the Permitted
Acquisition had occurred on the first day of such Calculation Period (although
such recalculations shall show, for purposes of this clause (iii), that the
Consolidated Senior Leverage Ratio for such Calculation Period shall be no
greater than the lesser of (x) 2.50:1.00 and (y) that ratio required to be
complied with at such time pursuant to Section 9.10 for such Calculation
Period); (iv) based on good faith projections prepared by the Borrower for the
period from the date of the consummation of the respective Permitted Acquisition
to the date which is one year thereafter, the level of financial performance
measured by the financial covenants set forth in Sections 9.08 through 9.12,
inclusive, shall be better than or equal to such level as would be required to
provide that no Default or Event of Default would exist under the financial
covenants contained in such Sections 9.08 through 9.12, inclusive, as compliance
with such financial covenants would be required through the date which is one
year from the date of the consummation of the respective Permitted Acquisition
(although such projections shall show, for purposes of this clause (iv), that
the Consolidated Senior Leverage Ratio for such one year period shall be no
greater than the lesser of (x) 2.50:1.00 and (y) that ratio required to be
complied with at such time pursuant to Section 9.10 during such one year
period); (v) all representations and warranties contained herein and in the
other Credit Documents shall be true and correct in all material respects with
the same effect as though such representations and warranties had been made on
and as of the date of such Permitted Acquisition (both before and after giving
effect thereto), unless stated to relate to a specific earlier date, in which
case such representations and warranties shall be true and correct in all
material respects as of such earlier date; (vi) the aggregate consideration
(including, without limitation, (I) the aggregate principal amount of any
Indebtedness assumed, refinanced, incurred or issued in connection therewith,
(II) the fair market value (as determined in good faith by the Board of
Directors of the Borrower) of any common stock or Qualified Preferred Stock of
the Borrower issued as part of the purchase price therefor, and (III) the
aggregate amount paid and reasonably expected to be paid (based on good faith
projections prepared by the Borrower) pursuant to any earn-out, non-compete,
consulting or deferred compensation or purchase price arrangements) payable for
the proposed Permitted Acquisition, when added to the aggregate consideration
paid or payable for all other Permitted Acquisitions theretofore consummated
during such fiscal year, does not exceed the Permitted Acquisition Basket Amount
for such fiscal year; (vii) immediately after giving effect to each Permitted
Acquisition (and all payments to be made in connection therewith including, for
this purpose, all-

                                      -71-
<PAGE>

post closing purchase price adjustments required (in the good faith
determination of the Borrower) in connection with such Permitted Acquisition
(and all other Permitted Acquisitions for which purchase adjustment may be
required to be made) within the 360-day period following such Permitted
Acquisition)), the Total Unutilized Revolving Loan Commitment (less the amount
of the Blocked Revolving Loan Commitment then in effect) shall equal or exceed
$10,000,000; and (viii) the Borrower shall have delivered to the Administrative
Agent and each Lender a certificate executed by its chief financial officer or
treasurer, certifying to the best of such officer's knowledge, compliance with
the requirements of preceding clauses (i) through (vii), inclusive, and
containing the calculations (in reasonable detail) (A) required by preceding
clauses (iii), (iv), (vi) and (vii) and (B) necessary to establish the Acquired
EBITDA of the Acquired Entity or Business acquired pursuant to each Permitted
Acquisition for the most recently ended 12-month period for which financial
statements are available for such Acquired Entity or Business.

          (b)    At the time of each Permitted Acquisition involving the
creation or acquisition of a Subsidiary, or the acquisition of capital stock or
other equity interest of any Person, the capital stock or other equity interests
thereof created or acquired in connection with such Permitted Acquisition shall
be pledged for the benefit of the Secured Creditors pursuant to (and to the
extent required by) the Pledge Agreement.

          (c)    The Borrower will cause each Subsidiary which is formed to
effect, or is acquired pursuant to, a Permitted Acquisition to comply with, and
to execute and deliver, all of the documentation as and to the extent required
by, Sections 8.12 and 9.17, to the reasonable satisfaction of the Administrative
Agent.

          (d)    The consummation of each Permitted Acquisition shall be deemed
to be a representation and warranty by the Borrower that the certifications
pursuant to this Section 8.14 are true and correct and that all conditions
thereto have been satisfied and that same is permitted in accordance with the
terms of this Agreement, which representation and warranty shall be deemed to be
a representation and warranty for all purposes hereunder, including, without
limitation, Sections 7 and 10.

          8.15  Ownership of Subsidiaries; etc.  Except as otherwise permitted
                -------------------------------
by Section 9.05(iii) or (xiii) or pursuant to a Permitted Acquisition
consummated in accordance with the terms hereof, the Borrower will directly or
indirectly own 100% of the capital stock or other equity interests of each of
its Subsidiaries (other than, in the case of Foreign Subsidiaries, director's
qualifying shares and/or other nominal amounts of shares required to be held by
Persons other than the Borrower and its Subsidiaries under applicable law).

          8.16  Interest Rate Protection.  No later than 90 days following the
                ------------------------
Initial Borrowing Date, the Borrower will enter into (and thereafter maintain)
Interest Rate Protection Agreements mutually agreeable to the Borrower and the
Administrative Agent, with a term of at least two years, establishing a fixed or
maximum interest rate acceptable to the Administrative Agent for an aggregate
amount equal to at least 50% of the aggregate principal amount of all Term Loans
then outstanding.

                                      -72-
<PAGE>

          8.17  Margin Regulations.  The Borrower will take all actions so that
                ------------------
at all times the fair market value of all Margin Stock owned by the Borrower and
its Subsidiaries (other than capital stock of the Borrower held in treasury)
shall not exceed $2,500,000.  So long as the covenant contained in the
immediately preceding sentence is complied with, all Margin Stock at any time
owned by the Borrower and its Subsidiaries will not constitute Collateral and no
security interest shall be granted therein pursuant to any Credit Document.
Without excusing any violation of the first sentence of this Section 8.17, if at
any time the fair market value of all Margin Stock owned by the Borrower and its
Subsidiaries (other than capital stock of the Borrower held in treasury) exceeds
$2,500,000, then (x) all Margin Stock owned by the Credit Parties (other than
capital stock of the Borrower held in treasury) shall be pledged, and delivered
for pledge, pursuant to the Pledge Agreement and (y) the Borrower will execute
and deliver to the Lenders appropriate completed forms (including, without
limitation, Forms G-3 and U-1, as appropriate) establishing compliance with
Regulations T, U and X.  If at any time any Margin Stock is required to be
pledged as a result of the provisions of the immediately preceding sentence,
repayments of outstanding Obligations shall be required, and subsequent Credit
Events shall be permitted, only in compliance with the applicable provisions of
Regulations T, U and X.

          SECTION 9.  Negative Covenants.  The Borrower hereby covenants and
                      ------------------
agrees that on and after the Effective Date and until the Total Commitment and
all Letters of Credit have terminated and the Loans, Notes and Unpaid Drawings
(in each case, together with interest thereon), Fees and all other Obligations
(other than any indemnities described in Section 13.13 which are not then due
and payable) incurred hereunder and thereunder, are paid in full:

          9.01  Liens. The Borrower will not, and will not permit any of its
                -----
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon or with
respect to any property or assets (real or personal, tangible or intangible) of
the Borrower or any of its Subsidiaries, whether now owned or hereafter
acquired, or sell any such property or assets subject to an understanding or
agreement, contingent or otherwise, to repurchase such property or assets
(including sales of accounts receivable with recourse to the Borrower or any of
its Subsidiaries), or assign any right to receive income or authorize the filing
of any financing statement under the UCC or any other similar notice of Lien
under any similar recording or notice statute; provided that the provisions of
                                               --------
this Section 9.01 shall not prevent the creation, incurrence, assumption or
existence of the following (Liens described below are herein referred to as
"Permitted Liens"):

           (i)   inchoate Liens for taxes, assessments or governmental charges
     or levies not yet due or Liens for taxes, assessments or governmental
     charges or levies being contested in good faith and by appropriate
     proceedings for which adequate reserves have been established in accordance
     with generally accepted accounting principles;

           (ii)  Liens in respect of property or assets of the Borrower or any
     of its Subsidiaries imposed by law, which were incurred in the ordinary
     course of business and do not secure Indebtedness for borrowed money, such
     as carriers', warehousemen's, materialmen's and mechanics' liens and other
     similar Liens arising in the ordinary course of business, and (x) which do
     not in the aggregate materially detract from the value of the Borrower's or
     such Subsidiary's property or assets or materially impair the use thereof
     in the operation of the business of the Borrower or such Subsidiary or (y)
     which are being

                                      -73-
<PAGE>

     contested in good faith by appropriate proceedings, which proceedings have
     the effect of preventing the forfeiture or sale of the property or assets
     subject to any such Lien;

           (iii)  Liens in existence on the Initial Borrowing Date which are
     listed, and the property subject thereto described, in Schedule VIII, but
     only to the respective date, if any, set forth in such Schedule VIII for
     the removal, replacement and termination of any such Liens, plus renewals,
     replacements and extensions of such Liens to the extent set forth on such
     Schedule VIII, provided that (x) the aggregate principal amount of the
                    --------
     Indebtedness, if any, secured by such Liens does not increase from that
     amount outstanding at the time of any such renewal, replacement or
     extension and (y) any such renewal, replacement or extension does not
     encumber any additional assets or properties of the Borrower or any of its
     Subsidiaries;

           (iv)   Liens created pursuant to the Security Documents;

           (v)    licenses, sublicenses, leases or subleases granted to other
     Persons not materially interfering with the conduct of the business of the
     Borrower or any of its Subsidiaries;

           (vi)   Liens upon assets of the Borrower or any of its Subsidiaries
     subject to Capitalized Lease Obligations to the extent such Capitalized
     Lease Obligations are permitted by Section 9.04(iv), provided that (x) such
                                                          --------
     Liens only serve to secure the payment of Indebtedness arising under such
     Capitalized Lease Obligation and (y) the Lien encumbering the asset giving
     rise to the Capitalized Lease Obligation does not encumber any other asset
     of the Borrower or any Subsidiary of the Borrower (other than proceeds of
     the asset giving rise to such Capitalized Lease Obligation);

           (vii)  Liens placed upon equipment or machinery acquired after the
     Initial Borrowing Date and used in the ordinary course of business of the
     Borrower or any of its Subsidiaries and placed at the time of the
     acquisition thereof by the Borrower or such Subsidiary or within 90 days
     thereafter to secure Indebtedness incurred to pay all or a portion of the
     purchase price thereof or to secure Indebtedness incurred solely for the
     purpose of financing the acquisition of any such equipment or machinery or
     extensions, renewals or replacements of any of the foregoing for the same
     or a lesser amount, provided that (x) the Indebtedness secured by such
                         --------
     Liens is permitted by Section 9.04(iv) and (y) in all events, the Lien
     encumbering the equipment or machinery so acquired does not encumber any
     other asset of the Borrower or such Subsidiary (other than proceeds of the
     equipment or machinery subject to such purchase money Lien);

           (viii) easements, rights-of-way, restrictions, encroachments,
     municipal and zoning ordinances and other similar charges or encumbrances,
     and minor title deficiencies, in each case not securing Indebtedness and
     not materially interfering with the conduct of the business of the Borrower
     or any of its Subsidiaries;

           (ix)   Liens arising from precautionary UCC financing statement
     filings regarding operating leases entered into in the ordinary course of
     business;

                                      -74-
<PAGE>

           (x)      Liens arising out of the existence of judgments or awards in
     respect of which the Borrower or any of its Subsidiaries shall in good
     faith be prosecuting an appeal or proceedings for review and in respect of
     which there shall have been secured a subsisting stay of execution pending
     such appeal or proceedings, provided that the aggregate amount of all cash
                                 --------
     (including, for this purpose, the amount of all letters of credit) and the
     fair market value of all other property pledged or deposited to obtain a
     subsisting stay of execution pending such appeal does not exceed $7,500,000
     at any time outstanding;

           (xi)     statutory and common law landlords' liens under leases to
     which the Borrower or any of its Subsidiaries is a party;

           (xii)    Liens (other than Liens imposed under ERISA) (x) incurred in
     the ordinary course of business in connection with workers compensation
     claims, unemployment insurance and social security benefits and (y) Liens
     securing the performance of bids, tenders, leases and contracts in the
     ordinary course of business, statutory obligations, surety bonds,
     performance bonds and other obligations of a like nature (other than appeal
     bonds) incurred in the ordinary course of business and consistent with past
     practice (exclusive of obligations in respect of the payment for borrowed
     money);

           (xiii)   Permitted Encumbrances;

           (xiv)    Liens on property or assets acquired pursuant to a Permitted
     Acquisition, or on property or assets of a Subsidiary of the Borrower in
     existence at the time such Subsidiary is acquired pursuant to a Permitted
     Acquisition, provided that (x) any Indebtedness that is secured by such
                  --------
     Liens is permitted to exist under Section 9.04(viii), and (y) such Liens
     are not incurred in connection with, or in contemplation or anticipation
     of, such Permitted Acquisition and do not attach to any other asset of the
     Borrower or any of its Subsidiaries;

           (xv)     Liens on assets of Foreign Subsidiaries that are not Credit
     Parties and securing Indebtedness permitted to be incurred by such Foreign
     Subsidiaries pursuant to Section 9.04;

           (xvi)    Liens in favor of customs or revenue authorities arising as
     a matter of law to secure payment of customs duties in connection with the
     importation of goods;

           (xvii)   Liens granted by Subsidiaries of the Borrower that are not
     Credit Parties in favor of the Borrower or any Subsidiary Guarantor;

           (xviii)  Liens in favor of the Factor solely on those accounts
     receivable (and rights ancillary thereto) of the Borrower and its
     Subsidiaries which are purchased by the Factor pursuant to the Factoring
     Agreement from time to time;

           (xix)    customary Liens in favor of banking institutions encumbering
     deposits (including the right of set-off) held by such banking institutions
     incurred in the ordinary course of business;

                                      -75-
<PAGE>

           (xx)   rights of customers with respect to inventory which arise from
     deposits and progress payments made in the ordinary course of business; and

           (xxi)  other Liens incidental to the conduct of the business of the
     Borrower or any of its Subsidiaries that (i) were not incurred in
     connection with Indebtedness, (ii) do not encumber any Collateral (other
     than on a junior and subordinated basis) and do not materially detract from
     the value of the assets subject to such Liens or materially impair the use
     thereof in the operation of such business and (iii) do not at any time for
     all such Liens encumber cash and other property having an aggregate value
     in excess of, or secure outstanding obligations in the aggregate in excess
     of, $2,500,000 at any time outstanding.

In connection with the granting of Liens of the type described in clauses (vi),
(vii) and (xiv) of this Section 9.01 by the Borrower or any of its Subsidiaries,
the Administrative Agent and the Collateral Agent shall be authorized to take
any actions deemed appropriate by it in connection therewith (including, without
limitation, by executing appropriate lien releases or lien subordination
agreements in favor of the holder or holders of such Liens, in either case
solely with respect to the item or items of equipment or other assets subject to
such Liens).

           9.02   Consolidation, Merger, Purchase or Sale of Assets, etc.  The
                  -------------------------------------------------------
Borrower will not, and will not permit any of its Subsidiaries to, wind up,
liquidate or dissolve its affairs or enter into any transaction of merger or
consolidation, or convey, sell, lease or otherwise dispose of all or any part of
its property or assets, or enter into any sale-leaseback transactions, or
purchase or otherwise acquire (in one or a series of related transactions) any
part of the property or assets (other than purchases or other acquisitions of
inventory, materials and equipment in the ordinary course of business) of any
Person (or agree to do any of the foregoing at any future time), except that:

           (i)    Capital Expenditures by the Borrower or any of its
     Subsidiaries shall be permitted to the extent not in violation of Section
     9.07;

           (ii)   each of the Borrower and its Subsidiaries may make sales
     and/or rentals of inventory in the ordinary course of business;

           (iii)  each of the Borrower and its Subsidiaries may sell or
     otherwise transfer obsolete, uneconomic or worn-out equipment, materials or
     other assets in the ordinary course of business;

           (iv)   Investments may be made to the extent permitted by Section
     9.05;

           (v)    the Borrower and its Subsidiaries may sell assets (other than
     the capital stock or other equity interests of any Wholly-Owned Subsidiary
     unless all of the capital stock or other equity interests of such Wholly-
     Owned Subsidiary are sold in accordance with this clause (v)), so long as
     (v) no Default or Event of Default then exists or would result therefrom,
     (w) each such sale is in an arm's-length transaction and the Borrower or
     the respective Subsidiary receives at least fair market value (as
     determined in good faith by the Borrower or such Subsidiary, as the case
     may be), (x) the total consideration

                                      -76-
<PAGE>

     received by the Borrower or such Subsidiary is at least 80% cash and is
     paid at the time of the closing of such sale, (y) the Net Sale Proceeds
     therefrom are applied and/or reinvested as (and to the extent) required by
     Section 4.02(e) and (z) the aggregate amount of the proceeds received from
     all assets sold pursuant to this clause (v) shall not exceed $25,000,000 in
     any fiscal year of the Borrower;

           (vi)    each of the Borrower and its Subsidiaries may lease (as
     lessee) or license (as licensee) real or personal property (so long as any
     such lease or license does not create a Capitalized Lease Obligation except
     to the extent permitted by Section 9.04(iv));

           (vii)   each of the Borrower and its Subsidiaries may sell or
     discount, in each case without recourse and in the ordinary course of
     business, accounts receivable arising in the ordinary course of business,
     but only in connection with the compromise or collection thereof and not as
     part of any financing transaction;

           (viii)  each of the Borrower and its Subsidiaries may grant licenses,
     sublicenses, leases or subleases to other Persons not materially
     interfering with the conduct of the business of the Borrower or any of its
     Subsidiaries, in each case so long as no such grant otherwise affects the
     Collateral Agent's security interest in the asset or property subject
     thereto;

           (ix)    the Borrower may transfer assets to any Wholly-Owned Domestic
     Subsidiary of the Borrower which is a Subsidiary Guarantor and any
     Subsidiary of the Borrower may transfer assets to the Borrower or to any
     Wholly-Owned Domestic Subsidiary of the Borrower which is a Subsidiary
     Guarantor, in each case so long as the security interests granted to the
     Collateral Agent for the benefit of the Secured Creditors pursuant to the
     Security Documents in the assets so transferred shall remain in full force
     and effect and perfected (to at least the same extent as in effect
     immediately prior to such transfer);

           (x)     any Subsidiary of the Borrower may merge with and into, or be
     dissolved or liquidated into, the Borrower or any Wholly-Owned Domestic
     Subsidiary of the Borrower which is a Subsidiary Guarantor so long as (i)
     in the case of any such merger, dissolution or liquidation involving the
     Borrower, the Borrower is the surviving corporation of any such merger,
     dissolution or liquidation, (ii) in all other cases, the Wholly-Owned
     Domestic Subsidiary which is a Subsidiary Guarantor is the surviving
     corporation of any such merger, dissolution or liquidation, and (iii) in
     all cases, the security interests granted to the Collateral Agent for the
     benefit of the Secured Creditors pursuant to the Security Documents in the
     assets of such Subsidiary shall remain in full force and effect and
     perfected (to at least the same extent as in effect immediately prior to
     such merger, dissolution or liquidation);

           (xi)    any Foreign Subsidiary of the Borrower may merge with and
     into, or be dissolved or liquidated into, or transfer any of its assets to,
     any Wholly-Owned Foreign Subsidiary of the Borrower so long as (i) in the
     case of any such merger, dissolution or liquidation, a Wholly-Owned Foreign
     Subsidiary of the Borrower is the survivor of such

                                     -77-
<PAGE>

     merger, dissolution or liquidation, and (ii) any security interests granted
     to the Collateral Agent for the benefit of the Secured Creditors pursuant
     to the Security Documents in the equity interests of such Wholly-Owned
     Foreign Subsidiary shall remain in full force and effect and perfected (to
     at least the same extent as in effect immediately prior to such merger,
     dissolution or liquidation);

           (xii)   Permitted Acquisitions may be made to the extent permitted by
     Section 8.14;

           (xiii)  subject to Section 9.04(xii), Foreign Subsidiaries of the
     Borrower may repurchase equipment as may be required in accordance with the
     terms of the Buy-Back Arrangements relating to such equipment;

           (xiv)   subject to Section 9.04(xiv) and so long as no Default or
     Event of Default then exists or would result therefrom, each of the
     Borrower and its Subsidiaries may from time to time (i) sell to the Factor
     for cash accounts receivable (and rights ancillary thereto) pursuant to,
     and in accordance with the terms of, the Factoring Agreement and (ii)
     repurchase accounts receivable theretofore sold to the Factor pursuant to,
     and to the extent required by, the Factoring Agreement;

           (xv)    the Borrower may merge with and into a Wholly-Owned Domestic
     Subsidiary of the Borrower formed solely for the purpose of reincorporating
     the Borrower in the State of Delaware so long as (i) the surviving
     corporation expressly assumes all obligations of the Borrower under the
     Credit Documents pursuant to an agreement in form and substance reasonably
     satisfactory to the Administrative Agent, (ii) the name of the surviving
     corporation is "The Manitowoc Company, Inc." or such other name as shall
     have been previously notified to the Administrative Agent, (iii) all
     actions have been taken that are necessary or, in the reasonable opinion of
     the Administrative Agent desirable, to maintain the perfection and priority
     of the Liens created by the respective Security Documents in the assets of
     the Borrower and (iv) at least 20 days' prior written notice thereof is
     given by the Borrower to the Administrative Agent;

           (xvi)   the Borrower may, in the ordinary course of business and on a
     basis consistent with past practice, enter into one or more sale-leaseback
     transactions with one or more financial institutions as lessor pursuant to
     which the Borrower sells equipment to such lessor for cash and such lessor
     subsequently leases back such equipment to the Borrower or to certain
     Subsidiaries of the Borrower, in each case so long as the aggregate amount
     of the obligations of the Borrower and its Subsidiaries in respect of all
     such sale-leaseback transactions does not exceed $20,000,000 at any time
     outstanding;

           (xvii)  Dividends may be paid as, and to the extent, permitted by
     Section 9.03; and

           (xviii) the Acquisition shall be permitted in accordance with the
     terms of the Acquisition Documents.

                                     -78-
<PAGE>

To the extent the Required Lenders waive the provisions of this Section 9.02
with respect to the sale of any Collateral, or any Collateral is sold as
permitted by this Section 9.02 (other than to the Borrower or a Subsidiary
thereof), such Collateral shall be sold free and clear of the Liens created by
the Security Documents, and the Administrative Agent and the Collateral Agent
shall be authorized to take any actions deemed appropriate in order to effect
the foregoing.

           9.03   Dividends.  The Borrower will not, and will not permit any of
                  ---------
its Subsidiaries to, authorize, declare or pay any Dividends with respect to the
Borrower or any of its Subsidiaries, except that:

           (i)    any Subsidiary of the Borrower may pay cash Dividends to the
     Borrower or to any Wholly-Owned Domestic Subsidiary of the Borrower and any
     Foreign Subsidiary of the Borrower also may pay cash Dividends to any
     Wholly-Owned Foreign Subsidiary of the Borrower;

           (ii)   any non-Wholly-Owned Subsidiary of the Borrower may pay cash
     Dividends to its shareholders generally so long as the Borrower or its
     respective Subsidiary which owns the equity interest in the Subsidiary
     paying such Dividends receives at least its proportionate share thereof
     (based upon its relative holding of the equity interest in the Subsidiary
     paying such Dividends and taking into account the relative preferences, if
     any, of the various classes of equity interests of such Subsidiary);

           (iii)  so long as no Default or Event of Default then exists or would
     result therefrom, the Borrower may repurchase outstanding shares of its
     common stock (or options to purchase such common stock) held by former
     officers, directors or employees of the Borrower or any of its Subsidiaries
     following the death, disability, retirement or termination of employment of
     such officers, directors or employees, provided that the aggregate amount
                                            --------
     of all Dividends paid by the Borrower pursuant to this clause (iii) shall
     not exceed $500,000 in any fiscal year of the Borrower;

           (iv)   the Borrower may pay regularly scheduled Dividends on its
     Qualified Preferred Stock pursuant to the terms thereof solely through the
     issuance of additional shares of such Qualified Preferred Stock rather than
     in cash;

           (v)    so long as no Default or Event of Default then exists or would
     result therefrom, the Borrower may pay regularly scheduled cash Dividends
     on its common stock in an aggregate amount not to exceed the lesser of (x)
     $8,500,000 in any fiscal year of the Borrower and (y) that amount permitted
     under the Senior Subordinated Note Indenture; and

           (vi)   the Borrower may effect open market repurchases of its common
     stock in an aggregate amount not to exceed the lesser of (x) $20,000,000
     and (y) that amount permitted under the Senior Subordinated Note Indenture,
     so long as (I) no Default or Event of Default then exists or would result
     therefrom, (II) calculations are made by the Borrower showing compliance
     with a Consolidated Total Leverage Ratio not to exceed 2.00:1.00 at the
     time of the respective repurchase (and after giving effect thereto) and
     (III)

                                     -79-
<PAGE>

     the Borrower shall have delivered to the Administrative Agent and each
     Lender a certificate executed by its chief financial officer or treasurer,
     certifying to the best of such officer's knowledge, compliance with the
     requirements of preceding clauses (I) and (II) and containing the
     calculations (in reasonable detail) required by preceding clause (II).

           9.04   Indebtedness.  The Borrower will not, and will not permit any
                  ------------
of its Subsidiaries to, contract, create, incur, assume or suffer to exist any
Indebtedness, except:

           (i)    Indebtedness incurred pursuant to this Agreement and the other
     Credit Documents;

           (ii)   Existing Indebtedness outstanding on the Initial Borrowing
     Date and listed on Schedule VI (as reduced by any repayments of principal
     thereof), without giving effect to any subsequent extension, renewal or
     refinancing thereof except to the extent set forth on Schedule VI, provided
                                                                        --------
     that the aggregate principal amount of the Indebtedness to be extended,
     renewed or refinanced does not increase from that amount outstanding at the
     time of any such extension, renewal or refinancing;

           (iii)  Indebtedness of the Borrower or any of its Subsidiaries under
     Interest Rate Protection Agreements entered into with respect to other
     Indebtedness permitted under this Section 9.04 so long as the entering into
     of such Interest Rate Protection Agreements are bona fide hedging
     activities and are not for speculative purposes;

           (iv)   Indebtedness of the Borrower and its Subsidiaries evidenced by
     Capitalized Lease Obligations (to the extent permitted pursuant to Section
     9.07) and purchase money Indebtedness described in Section 9.01(vii),
     provided that in no event shall the sum of the aggregate principal amount
     --------
     of all Capitalized Lease Obligations and purchase money Indebtedness
     permitted by this clause (iv) exceed $10,000,000 at any time outstanding;

           (v)    unsecured Indebtedness of the Borrower and the Subsidiary
     Guarantors incurred under the Senior Subordinated Notes and the other
     Senior Subordinated Notes Documents in an aggregate principal amount not to
     exceed (Euro)175,000,000 (less the amount of any repayments of principal
     thereof after the Initial Borrowing Date);

           (vi)   intercompany Indebtedness among the Borrower and its
     Subsidiaries to the extent permitted by Sections 9.05(ix) and (xii);

           (vii)  Indebtedness consisting of guaranties (x) by the Borrower and
     the Subsidiary Guarantors of each other's Indebtedness and lease and other
     contractual obligations permitted under this Agreement and (y) by Wholly-
     Owned Foreign Subsidiaries of the Borrower of each other's Indebtedness and
     lease and other contractual obligations permitted under this Agreement;

           (viii) Indebtedness of a Subsidiary of the Borrower acquired pursuant
     to a Permitted Acquisition (or Indebtedness assumed at the time of a
     Permitted Acquisition of an asset securing such Indebtedness), provided
                                                                    --------
     that (x) such Indebtedness was not incurred in connection with, or in
     anticipation or contemplation of, such Permitted

                                      -80-
<PAGE>

     Acquisition, (y) such Indebtedness does not constitute debt for borrowed
     money, it being understood and agreed that Capitalized Lease Obligations
     and purchase money Indebtedness shall not constitute debt for borrowed
     money for purposes of this clause (y) and (z) the aggregate principal
     amount of all Indebtedness permitted by this clause (viii) shall not exceed
     $10,000,000 at any one time outstanding;

           (ix)   Indebtedness in respect of bid, payments, performance, advance
     payment or surety bonds entered into in the ordinary course of business and
     consistent with past practices;

           (x)    to the extent that same constitutes Indebtedness, obligations
     in respect of earn-out arrangements permitted pursuant to a Permitted
     Acquisition;

           (xi)   Indebtedness of the Borrower or any of its Subsidiaries under
     Other Hedging Agreements entered into in the ordinary course of business
     and providing protection to the Borrower and its Subsidiaries against
     fluctuations in currency values or commodity prices in connection with the
     Borrower's or any of its Subsidiaries' operations so long as the entering
     into of such Other Hedging Agreements are bona fide hedging activities and
                                               ---- ----
     are not for speculative purposes;

           (xii)  Indebtedness of Foreign Subsidiaries of the Borrower under
     lines of credit to any such Foreign Subsidiary from Persons other than the
     Borrower or any of its Subsidiaries, the proceeds of which Indebtedness are
     used for such Foreign Subsidiary's working capital and other general
     corporate purposes; provided that the aggregate principal amount of all
                         --------
     such Indebtedness outstanding at any time for all such Foreign Subsidiaries
     shall not exceed $5,000,000;

           (xiii) unsecured Indebtedness of Foreign Subsidiaries of the
     Borrower consisting of obligations to repurchase (or a guaranty of an
     obligation to repurchase) equipment in accordance with the terms of the
     Buy-Back Arrangements for such equipment, provided that the aggregate
                                               --------
     amount of all such Indebtedness shall not exceed $15,000,000 at any time
     outstanding;

           (xiv)  Indebtedness which may be deemed to exist pursuant to the
     Factoring Agreement, so long as the aggregate outstanding amount of all
     Receivables Indebtedness attributable thereto does not exceed (x) at any
     time on or after the Initial Borrowing Date through and including December
     30, 2001, $45,000,000, and (y) at any time thereafter, $25,000,000;

           (xv)   Indebtedness arising from the honoring by a bank or other
     financial institution of a check, draft or similar instrument inadvertently
     (except in the case of daylight overdrafts) drawn against insufficient
     funds in the ordinary course of business so long as such Indebtedness is
     extinguished within four Business Days of the incurrence thereof;

                                     -81-
<PAGE>

           (xvi)   Indebtedness of the Borrower or any of its Subsidiaries which
     may be deemed to exist in connection with agreements providing for
     indemnification, purchase price adjustments and similar obligations in
     connection with the acquisition or disposition of assets in accordance with
     the requirements of this Agreement so long as any such obligations are
     those of the Person making the respective acquisition or sale, and are not
     guaranteed by any other Person except as permitted by Section 9.04(vii);
     and

           (xvii)  so long as no Default or Event of Default then exists or
     would result therefrom, additional Indebtedness incurred by the Borrower
     and its Subsidiaries in an aggregate principal amount not to exceed
     $10,000,000 at any one time outstanding, which Indebtedness shall be
     unsecured unless otherwise permitted under Section 9.01(xv).

           9.05    Advances, Investments and Loans.  The Borrower will not, and
                   -------------------------------
will not permit any of its Subsidiaries to, directly or indirectly, lend money
or credit or make advances to any Person, or purchase or acquire any stock,
obligations or securities of, or any other interest in, or make any capital
contribution to, any other Person, or purchase or own a futures contract or
otherwise become liable for the purchase or sale of currency or other
commodities at a future date in the nature of a futures contract, or hold any
cash or Cash Equivalents (each of the foregoing an "Investment" and,
collectively, "Investments"), except that the following shall be permitted:

           (i)     the Borrower and its Subsidiaries may acquire and hold
     accounts receivables owing to any of them, if created or acquired in the
     ordinary course of business and payable or dischargeable in accordance with
     customary trade terms of the Borrower or such Subsidiary;

           (ii)    the Borrower and its Subsidiaries may acquire and hold cash
     and Cash Equivalents and Foreign Subsidiaries of the Borrower may also
     acquire and hold cash and Foreign Cash Equivalents; provided, however at
                                                         --------  -------
     any time that Intercompany Loans are outstanding and owing by one or more
     Foreign Subsidiaries of the Borrower to the Borrower and/or one or more
     Subsidiary Guarantors, the aggregate amount of all cash, Cash Equivalents
     and Foreign Cash Equivalents permitted to be held by all Foreign
     Subsidiaries shall not exceed $15,000,000;

           (iii)   the Borrower and its Subsidiaries may hold the Investments
     held by them on the Initial Borrowing Date and described on Schedule IX,
     provided that any additional Investments made with respect thereto shall be
     permitted only if independently justified under the other provisions of
     this Section 9.05;

           (iv)    the Borrower and its Subsidiaries may acquire and own
     investments (including debt obligations) received in connection with the
     bankruptcy or reorganization of suppliers and customers and in good faith
     settlement of delinquent obligations of, and other disputes with, customers
     and suppliers arising in the ordinary course of business;

           (v)     the Borrower and its Subsidiaries may make loans and advances
     to their officers and employees for moving, relocation and travel expenses
     and other similar

                                     -82-
<PAGE>

     expenditures, in each case in the ordinary course of business in an
     aggregate amount not to exceed $1,000,000 at any time outstanding
     (determined without regard to any write-downs or write-offs of such loans
     and advances);

           (vi)    the Borrower may acquire and hold obligations of one or more
     officers, directors or other employees of the Borrower or any of its
     Subsidiaries in connection with such officers', directors' or employees'
     acquisition of shares of capital stock of the Borrower so long as no cash
     is paid by the Borrower or any of its Subsidiaries to such officers,
     directors or employees in connection with the acquisition of any such
     obligations;

           (vii)   the Borrower and its Subsidiaries may enter into Interest
     Rate Protection Agreements to the extent permitted by Section 9.04(iii);

           (viii)  the Borrower and its Subsidiaries may acquire and hold
     promissory notes and other non-cash consideration issued by the purchaser
     of assets in connection with a sale of such assets to the extent permitted
     by Sections 9.02(iii) and (v);

           (ix)    the Borrower and its Wholly-Owned Subsidiaries may make
     intercompany loans and advances between and among one another
     (collectively, "Intercompany Loans"), provided that (i) at no time shall
                                           --------
     the aggregate outstanding principal amount of all Intercompany Loans made
     pursuant to this clause (ix) by Credit Parties to Wholly-Owned Subsidiaries
     that are not Credit Parties (excluding for this purpose, however, the
     aggregate outstanding principal amount of all Intercompany Loans made
     pursuant to this clause (ix) by Credit Parties to Wholly-Owned Subsidiaries
     that are not Credit Parties the proceeds of which are used to make payments
     owing in connection with the Transaction or to finance a Permitted
     Acquisition), when added to the aggregate amount of contributions,
     capitalizations and forgiveness theretofore made by Credit Parties pursuant
     to Section 9.05(x) to (or in respect of) Wholly-Owned Foreign Subsidiaries
     that are not Credit Parties (excluding for this purpose, however, the
     aggregate amount of contributions, capitalizations and forgiveness made
     pursuant to Section 9.05(x) by Credit Parties to (or in respect of) Wholly-
     Owned Foreign Subsidiaries that are not Credit Parties the proceeds of
     which are (or, in the case of debt forgiveness, the proceeds of the
     incurrence of debt so forgiven were initially) used to finance a Permitted
     Acquisition and, in any event, net of cash equity returns), exceed
     $40,000,000 (determined without regard to any write-downs or write-offs of
     such Intercompany Loans), (ii) no Intercompany Loans may be made by a
     Credit Party to a Wholly-Owned Subsidiary that is not a Credit Party at a
     time that an Event of Default exists and is continuing, (iii) any such
     Intercompany Loan made by a Credit Party shall be evidenced by an
     Intercompany Note which shall be pledged to the Collateral Agent to the
     extent required pursuant to the Pledge Agreement, and (iv) each
     Intercompany Loan made to any Credit Party by a Wholly-Owned Subsidiary
     that is not a Credit Party shall include (or, if not evidenced by an
     Intercompany Note, the books and records of the respective parties shall
     note that such Intercompany Loan shall be subject to) the subordination
     provisions attached as Annex A to the form of Intercompany Note;

                                     -83-
<PAGE>

           (x)     the Borrower and its Wholly-Owned Subsidiaries may make cash
     capital contributions to their respective Wholly-Owned Subsidiaries, and
     may capitalize or forgive any Indebtedness owed to them by a Wholly-Owned
     Foreign Subsidiary and outstanding under clause (ix) of this Section 9.05,
     provided that (i) the aggregate amount of such contributions,
     --------
     capitalizations and forgiveness made by Credit Parties to Wholly-Owned
     Subsidiaries that are not Credit Parties (excluding for this purpose,
     however, the aggregate amount of contributions, capitalizations and
     forgiveness made pursuant to this clause (x) by Credit Parties to (or in
     respect of) Wholly-Owned Foreign Subsidiaries that are not Credit Parties
     the proceeds of which are (or, in the case of debt forgiveness, the
     proceeds of the incurrence of debt so forgiven were initially) used to
     finance a Permitted Acquisition and, in any event, net of cash equity
     returns), when added to the aggregate outstanding principal amount of
     Intercompany Loans made by Credit Parties to Wholly-Owned Subsidiaries that
     are not Credit Parties pursuant to Section 9.05(ix) (determined without
     regard to any write-downs or write-offs thereof) (excluding for this
     purpose, however, the aggregate outstanding principal amount of all
     Intercompany Loans made pursuant to Section 9.05(ix) by Credit Parties to
     Wholly-Owned Subsidiaries that are not Credit Parties the proceeds of which
     are used to make payments owing in connection with the Transaction or to
     finance a Permitted Acquisition), shall not exceed an amount equal to
     $40,000,000 at any time, (ii) Credit Parties may only make capital
     contributions to, and capitalize or forgive any Indebtedness owed to them
     by, a Wholly-Owned Foreign Subsidiary pursuant to this clause (x) to the
     extent (A) required to comply with any thin capitalization rules applicable
     to such Wholly-Owned Foreign Subsidiary or (B) that the making of
     Intercompany Loans to such Wholly-Owned Foreign Subsidiary would have
     adverse tax consequences to the Credit Party making the same, and (iii) no
     such contributions, capitalizations or forgivenesses may be made by a
     Credit Party to a Wholly-Owned Subsidiary that is not a Credit Party at any
     time that an Event of Default exists and is continuing;

           (xi)    Permitted Acquisitions shall be permitted in accordance with
     Section 8.14;

           (xii)   the Borrower and its Subsidiaries may enter into Other
     Hedging Agreements to the extent permitted by Section 9.04(xi); and

           (xiii)  so long as no Default or Event of Default then exists or
     would result therefrom, the Borrower and its Subsidiaries may make
     Investments not otherwise permitted by clauses (i) through (xii) of this
     Section 9.05 in an aggregate amount not to exceed $20,000,000 (taking the
     fair market value (as determined in good faith by the Borrower) of property
     other than cash) at any time outstanding (determined without regard to any
     write-downs or write-offs thereof).

           9.06    Transactions with Affiliates. The Borrower will not, and will
                   ----------------------------
not permit any of its Subsidiaries to, enter into any transaction or series of
related transactions with any Affiliate of the Borrower or any of its
Subsidiaries, other than in the ordinary course of business and on terms and
conditions substantially as favorable to the Borrower or such Subsidiary as
would reasonably be obtained by the Borrower or such Subsidiary at that time in
a comparable arm's-

                                      -84-
<PAGE>

length transaction with a Person other than an Affiliate, except that the
following in any event shall be permitted:

           (i)    Dividends may be paid to the extent provided in Section 9.03;

           (ii)   loans may be made and other transactions may be entered into
     by the Borrower and its Subsidiaries to the extent permitted by Sections
     9.02, 9.04 and 9.05 ;

           (iii)  customary fees may be paid to non-officer directors of the
     Borrower and its Subsidiaries;

           (iv)   the Borrower and its Subsidiaries may enter into, and may make
     payments under, employment agreements, employee benefits plans, stock
     option plans, indemnification provisions, severance arrangements, and other
     similar compensatory arrangements with officers, employees and directors of
     the Borrower and its Subsidiaries in the ordinary course of business;

           (v)    Subsidiaries of the Borrower may pay management fees,
     licensing fees and similar fees to the Borrower or to any Subsidiary
     Guarantor; and

           (vi)   the Borrower and its Wholly-Owned Subsidiaries may otherwise
     engage in transactions exclusively between or among themselves so long as
     such transactions are otherwise permitted under this Agreement.

           9.07   Capital Expenditures. (a) The Borrower will not, and will not
                  --------------------
permit any of its Subsidiaries to, make any Capital Expenditures, except that
(i) during the period from January 1, 2001 through and including December 31,
2001, the Borrower and its Subsidiaries (including, for periods prior to the
Initial Borrowing Date, the Target and its Subsidiaries) may make Capital
Expenditures so long as the aggregate amount of all such Capital Expenditures
does not exceed $40,000,000, and (ii) during any fiscal year of the Borrower set
forth below (taken as one accounting period), the Borrower and its Subsidiaries
may make Capital Expenditures so long as the aggregate amount of all such
Capital Expenditures does not exceed in any fiscal year of the Borrower set
forth below the amount set forth opposite such fiscal year below:

<TABLE>
<CAPTION>
         Fiscal Year Ending On                             Amount
         ----------------------                         -----------
<S>                                                     <C>
          December 31, 2002                             $40,000,000
          December 31, 2003                             $37,500,000
          December 31, 2004                             $37,500,000
          December 31, 2005                             $37,500,000
          December 31, 2006                             $37,500,000
          December 31, 2007                             $37,500,000
</TABLE>

          (b) In addition to the foregoing, in the event that the amount of
Capital Expenditures permitted to be made by the Borrower and its Subsidiaries
pursuant to clause (a) above in any fiscal year of the Borrower (or during the
period set forth in clause (a)(i) above) (before giving effect to any increase
in such permitted Capital Expenditure amount pursuant to

                                     -85-
<PAGE>

this clause (b)) is greater than the amount of Capital Expenditures actually
made by the Borrower and its Subsidiaries during such fiscal year (or such
period, as the case may be), the lesser of (x) such excess and (y) 50% of the
applicable permitted scheduled Capital Expenditure amount as set forth in such
clause (a) above may be carried forward and utilized to make Capital
Expenditures in the immediately succeeding fiscal year, provided that no amounts
                                                        --------
once carried forward pursuant to this Section 9.07(b) may be carried forward to
any fiscal year of the Borrower thereafter.

          (c) In addition to the foregoing, the Borrower and its Subsidiaries
may make Capital Expenditures with the amount of Net Sale Proceeds received by
the Borrower or any of its Subsidiaries from any Asset Sale so long as such Net
Sale Proceeds are reinvested within 360 days following the date of such Asset
Sale, but only to the extent that such Net Sale Proceeds are not otherwise
required to be applied pursuant to Section 4.02(e).

          (d) In addition to the foregoing, the Borrower or any of its
Subsidiaries may make Capital Expenditures with the amount of Net Insurance
Proceeds received by the Borrower or any of its Subsidiaries from any Recovery
Event so long as such Net Insurance Proceeds are used to replace or restore any
properties or assets in respect of which such Net Insurance Proceeds were paid
within 360 days following the date of receipt of such Net Insurance Proceeds
from such Recovery Event, but only to the extent that such Net Insurance
Proceeds are not otherwise required to be applied pursuant to Section 4.02(g).

          (e) In addition to the foregoing, the Borrower and its Wholly-Owned
Subsidiaries may consummate Permitted Acquisitions in accordance with the
requirements of Section 8.14.

           9.08  Minimum Consolidated Interest Coverage Ratio. The Borrower will
                 --------------------------------------------
not permit the Consolidated Interest Coverage Ratio for any Test Period ending
on the last day of a fiscal quarter of the Borrower set forth below to be less
than the ratio set forth opposite such fiscal quarter below:

<TABLE>
<CAPTION>
       Fiscal Quarter Ending                               Ratio
       ---------------------                             ---------
<S>                                                      <C>
          June 30, 2001                                  2.50:1.00
          September 30, 2001                             2.50:1.00
          December 31, 2001
          and thereafter                                 3.00:1.00
</TABLE>

         9.09  Minimum Consolidated EBITDA.  The Borrower will not permit
               ---------------------------
Consolidated EBITDA for any Test Period ending on the last day of a fiscal
quarter of the Borrower set forth below to be less than the respective amount
set forth opposite such fiscal quarter below:

<TABLE>
<CAPTION>
       Fiscal Quarter Ending                           Amount
       ---------------------                        ------------
<S>                                                 <C>
         June 30, 2001                              $150,000,000
         September 30, 2001                         $150,000,000
         December 31, 2001                          $154,000,000
</TABLE>

                                      -86-
<PAGE>

<TABLE>
<CAPTION>
       Fiscal Quarter Ending                           Amount
       ---------------------                        ------------
<S>                                                 <C>
         March 31, 2002                             $162,200,000
         June 30, 2002                              $169,700,000
         September 30, 2002                         $172,400,000
         December 31, 2002                          $175,400,000
         March 31, 2003                             $175,400,000
         June 30, 2003                              $175,400,000
         September 30, 2003                         $175,400,000
         December 31, 2003                          $182,700,000
         March 31, 2004                             $182,700,000
         June 30, 2004                              $182,700,000
         September 30, 2004                         $182,700,000
         December 31, 2004                          $190,500,000
         March 31, 2005                             $190,500,000
         June 30, 2005                              $190,500,000
         September 30, 2005                         $190,500,000
         December 31, 2005                          $198,500,000
         March 31, 2006                             $198,500,000
         June 30, 2006                              $198,500,000
         September 30, 2006                         $198,500,000
         December 31, 2006                          $206,900,000
         March 31, 2007                             $206,900,000
</TABLE>

From and after the consummation of any Permitted Acquisition, each of the
amounts set forth above in this Section 9.09 from and after such time shall be
increased by an amount (if positive) equal to 75% of the Acquired EBITDA of the
respective Acquired Entity or Business acquired in each such Permitted
Acquisition for the most recently ended 12-month period for which financial
statements are available for such Acquired Entity or Business prior to the date
of such acquisition (as certified in the respective officer's certificate
delivered pursuant to clause (viii) of Section 8.14(a)).

         9.10  Maximum Consolidated Senior Leverage Ratio.  The Borrower will
               ------------------------------------------
not permit the Consolidated Senior Leverage Ratio at any time during a period
set forth below to be greater than the ratio set forth opposite such period
below:

         Period                                  Ratio
         ------                                ---------
         Initial Borrowing Date
         through and including
         March 30, 2002                        2.75:1.00
         March 31, 2002
         through and including
         December 30, 2002                     2.50:1.00
         December 31, 2002
         through and including
         December 30, 2003                     2.25:1.00

                                      -87-
<PAGE>

          Thereafter                 2.00:1.00

Notwithstanding the foregoing, from and after such time as the Borrower
consummates more than $100,000,000 of Permitted Acquisitions in any fiscal year,
the Borrower will not permit the Consolidated Senior Leverage Ratio at any time
on or prior to December 30, 2002 to be greater than 2.25:1.00 (it being
understood that nothing in this sentence shall affect the ratios (or the
Borrower's obligation to comply with such ratios) from and after December 31,
2002 as set forth above).

          9.11  Maximum Consolidated Total Leverage Ratio.  The Borrower will
                -----------------------------------------
not permit the Consolidated Total Leverage Ratio at any time during a period set
forth below to be greater than the ratio set forth opposite such period below:

           Period                                  Ratio
           ------                                ---------
          Initial Borrowing Date
           through and including
           September 29, 2002                    3.50:1.00
          September 30, 2002
           through and including
           December 30, 2003                     3.25:1.00
          December 31, 2003
           through and including
           December 30, 2004                     3.00:1.00
          Thereafter                             2.85:1.00

          9.12  Minimum Consolidated Fixed Charge Coverage Ratio.  The Borrower
                ------------------------------------------------
will not permit the Consolidated Fixed Charge Coverage Ratio for any Test Period
ending on the last day of a fiscal quarter of the Borrower set forth below to be
less than the ratio set forth opposite such fiscal quarter below:

          Fiscal Quarter Ending                     Ratio
          ---------------------                   ----------
          June 30, 2001                           2.30:1.00
          September 30, 2001                      2.30:1.00
          December 31, 2001                       2.30:1.00
          March 31, 2002
          and thereafter                          2.50:1.00

          9.13  Limitations on Prepayments of Certain Indebtedness;
                ---------------------------------------------------
Modifications of Certain Indebtedness; Modifications of Certificate of
----------------------------------------------------------------------
Incorporation, By-Laws and Certain Other Agreements, etc. (a) The Borrower will
---------------------------------------------------------
not, and will not permit any of its Subsidiaries to:

          (i)   make (or give any notice in respect of) any voluntary or
  optional payment or prepayment on or redemption or acquisition for value of,
  or any prepayment or redemption as a result of any asset sale, change of
  control or similar event of (including in

                                     -88-
<PAGE>

  each case, without limitation, by way of depositing with the trustee with
  respect thereto or any other Person money or securities before due for the
  purpose of paying when due), any Senior Subordinated Notes;

     (ii)   amend or modify, or permit the amendment or modification of, any
  provision of any Senior Subordinated Note Document; or

     (iii)  amend, modify or change the Factoring Agreement, any Tax Sharing
  Agreement or its certificate or articles of incorporation (including, without
  limitation, by the filing or modification of any certificate or articles of
  designation), certificate of formation, limited liability company agreement or
  by-laws (or the equivalent organizational documents), as applicable, or any
  agreement entered into by it with respect to its capital stock or other equity
  interests (including any Shareholders' Agreement), or enter into any new
  Factoring Agreement, Tax Sharing Agreement or agreement with respect to its
  capital stock or other equity interests, unless such new agreement or
  amendment, modification, change or other action contemplated by this clause
  (iii) could not reasonably be expected to be adverse to the interests of the
  Lenders in any material respect and, in the case of the Factoring Agreement,
  such changes otherwise satisfy the requirements of the definition thereof.

     (b) Neither the Borrower nor any of its Subsidiaries shall designate any
Indebtedness, other than the Obligations, as "Designated Senior Debt" for
purposes of the Senior Subordinated Notes and the other Senior Subordinated Note
Documents.

     9.14   Limitation on Certain Restrictions on Subsidiaries.  The Borrower
            --------------------------------------------------
will not, and will not permit any of its Subsidiaries to, directly or
indirectly, create or otherwise cause or suffer to exist or become effective any
encumbrance or restriction on the ability of any such Subsidiary to (a) pay
dividends or make any other distributions on its capital stock or any other
interest or participation in its profits owned by the Borrower or any of its
Subsidiaries, or pay any Indebtedness owed to the Borrower or any of its
Subsidiaries, (b) make loans or advances to the Borrower or any of its
Subsidiaries or (c) transfer any of its properties or assets to the Borrower or
any of its Subsidiaries, except for such encumbrances or restrictions existing
under or by reason of (i) applicable law, (ii) this Agreement and the other
Credit Documents, (iii) the Senior Subordinated Note Documents, (iv) customary
provisions restricting subletting or assignment of any lease governing and
leasehold interest of the Borrower or any of its Subsidiaries, (v) customary
provisions restricting assignment of any licensing agreement (in which the
Borrower or any of its Subsidiaries is the licensee) or other contract entered
into by the Borrower or any of its Subsidiaries in the ordinary course of
business, (vi) restrictions on the transfer of any asset pending the close of
the sale of such asset, and (vii) restrictions on the transfer of any asset
subject to a Lien permitted by Section 9.01(iii), (vi), (vii), (xiv), (xv) or
(xviii).

     9.15   Limitation on Issuance of Capital Stock.  (a)  The Borrower will
            ---------------------------------------
not, and will not permit any of its Subsidiaries to, issue (i) any preferred
stock or other preferred equity interests other than Qualified Preferred Stock
of the Borrower or (ii) any redeemable common stock or other redeemable common
equity interests other than common stock or other redeemable

                                      -89-
<PAGE>

common equity interests that is redeemable at the sole option of the Borrower or
such Subsidiary, as the case may be.

          (b) The Borrower will not permit any of its Subsidiaries to issue any
capital stock or other equity interests (including by way of sales of treasury
stock) or any options or warrants to purchase, or securities convertible into,
capital stock or other equity interests, except (i) for transfers and
replacements of then outstanding shares of capital stock or other equity
interests, (ii) for stock splits, stock dividends and issuances which do not
decrease the percentage ownership of the Borrower or any of its Subsidiaries in
any class of the capital stock or other equity interests of such Subsidiary,
(iii) in the case of Foreign Subsidiaries, to qualify directors to the extent
required by applicable law and for other nominal share issuances to Persons
other than the Borrower and its Subsidiaries to the extent required under
applicable law, or (iv) for issuances by newly created or acquired Subsidiaries
in accordance with the terms of this Agreement.

          9.16  Business.  The Borrower will not, and will not permit any of its
                --------
Subsidiaries to, engage in any business other than the businesses engaged in by
the Borrower and its Subsidiaries as of the Initial Borrowing Date and
reasonable extensions thereof.

          9.17  Limitation on Creation of Subsidiaries.  The Borrower will not,
                --------------------------------------
and will not permit any of its Subsidiaries to, establish, create or acquire
after the Initial Borrowing Date any Subsidiary, provided that the Borrower and
                                                 --------
its Wholly-Owned Subsidiaries shall be permitted to (A) establish, create and,
to the extent permitted by this Agreement, acquire Wholly-Owned Subsidiaries so
long as (i) the equity interests of each such new Wholly-Owned Subsidiary is
pledged pursuant to, and to the extent required by, the Pledge Agreement, (ii)
each such new Wholly-Owned Domestic Subsidiary (and, to the extent required by
Section 8.13, each such new Wholly-Owned Foreign Subsidiary) executes a
counterpart of the Subsidiaries Guaranty, the Pledge Agreement and the Security
Agreement, and (iii) each such new Wholly-Owned Domestic Subsidiary (and, to the
extent required by Section 8.13, each such new Wholly-Owned Foreign Subsidiary),
to the extent requested by the Administrative Agent or the Required Lenders,
takes all actions required pursuant to Section 8.12, and (B) establish, create
and acquire non-Wholly-Owned Subsidiaries in each case to the extent permitted
by Section 9.05(xiii) and the definition of Permitted Acquisition so long as the
equity interest of each such non-Wholly-Owned Subsidiary is pledged pursuant to,
and to the extent required by, the Pledge Agreement.  In addition, each such new
Wholly-Owned Subsidiary which is required to become a Credit Party shall execute
and deliver, or cause to be executed and delivered, all other relevant
documentation of the type described in Section 5 as such new Wholly-Owned
Subsidiary would have had to deliver if such new Wholly-Owned Subsidiary were a
Credit Party on the Initial Borrowing Date.

          9.18  Rental Fleet.  Notwithstanding anything to the contrary
                ------------
contained in this Agreement, the Borrower will not permit the aggregate net book
value of all cranes of the Borrower and its Subsidiaries that are part of their
rental fleet to exceed $25,000,000 at any time.

          SECTION 10.  Events of Default.  Upon the occurrence of any of the
                       -----------------
following specified events (each, an "Event of Default"):

                                      -90-
<PAGE>

          10.01  Payments. The Borrower shall (i) default in the payment when
                 --------
due of any principal of any Loan or any Note or (ii) default, and such default
shall continue unremedied for three or more Business Days, in the payment when
due of any interest on any Loan or Note, any Unpaid Drawing or any Fees or any
other amounts owing hereunder or under any other Credit Document; or

          10.02  Representations, etc.  Any representation, warranty or
                 ---------------------
statement made or deemed made by any Credit Party herein or in any other Credit
Document or in any certificate delivered to the Administrative Agent or any
Lender pursuant hereto or thereto shall prove to be untrue in any material
respect on the date as of which made or deemed made; or

          10.03  Covenants. The Borrower or any of its Subsidiaries shall (i)
                 ---------
default in the due performance or observance by it of any term, covenant or
agreement contained in Section 8.01(f)(i), 8.08, 8.11, 8.14, 8.15, 8.17 or
Section 9 or (ii) default in the due performance or observance by it of any
other term, covenant or agreement contained in this Agreement or in any other
Credit Document (other than those set forth in Sections 10.01 and 10.02 and
clause (i) of this Section 10.03) and such default shall continue unremedied for
a period of 30 days (or such longer period of time as may be provided for in the
Mortgages) after written notice thereof to the defaulting party by the
Administrative Agent or the Required Lenders; or

          10.04  Default Under Other Agreements. (i)  The Borrower or any of
                 ------------------------------
its Subsidiaries shall (x) default in any payment of any Indebtedness (other
than the Obligations) beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created or (y) default
in the observance or performance of any agreement or condition relating to any
Indebtedness (other than the Obligations) or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event shall
occur or condition exist, the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness
(or a trustee or agent on behalf of such holder or holders) to cause (determined
without regard to whether any notice is required), any such Indebtedness to
become due prior to its stated maturity, or (ii) any Indebtedness (other than
the Obligations) of the Borrower or any of its Subsidiaries shall be declared to
be (or shall become) due and payable, or required to be prepaid other than by a
regularly scheduled required prepayment, prior to the stated maturity thereof,
provided that it shall not be a Default or an Event of Default under this
--------
Section 10.04 unless the aggregate principal amount of all Indebtedness as
described in preceding clauses (i) and (ii) is at least $7,000,000; or

          10.05  Bankruptcy, etc. The Borrower or any of its Subsidiaries shall
                 ----------------
commence a voluntary case concerning itself under Title 11 of the United States
Code entitled "Bankruptcy," as now or hereafter in effect, or any successor
thereto (the "Bankruptcy Code"); or an involuntary case is commenced against the
Borrower or any of its Subsidiaries, and the petition is not controverted within
10 days, or is not dismissed within 60 days, after commencement of the case; or
a custodian (as defined in the Bankruptcy Code) is appointed for, or takes
charge of, all or substantially all of the property of the Borrower or any of
its Subsidiaries, or the Borrower or any of its Subsidiaries commences any other
proceeding under any reorganization, arrangement, adjustment of debt, relief of
debtors, dissolution, insolvency or liquidation or similar law of any
jurisdiction whether now or hereafter in effect relating to the Borrower or any
of its Subsidiaries,

                                      -91-
<PAGE>

or there is commenced against the Borrower or any of its Subsidiaries any such
proceeding which remains undismissed for a period of 60 days, or the Borrower or
any of its Subsidiaries is adjudicated insolvent or bankrupt; or any order of
relief or other order approving any such case or proceeding is entered; or the
Borrower or any of its Subsidiaries suffers any appointment of any custodian or
the like for it or any substantial part of its property to continue undischarged
or unstayed for a period of 60 days; or the Borrower or any of its Subsidiaries
makes a general assignment for the benefit of creditors; or any corporate,
limited liability company or similar action is taken by the Borrower or any of
its Subsidiaries for the purpose of effecting any of the foregoing; or

          10.06  ERISA. (a)  Any Plan shall fail to satisfy the minimum funding
                 -----
standard required for any plan year or part thereof under Section 412 of the
Code or Section 302 of ERISA or a waiver of such standard or extension of any
amortization period is sought or granted under Section 412 of the Code or
Section 303 or 304 of ERISA, a Reportable Event shall have occurred, a
contributing sponsor (as defined in Section 4001(a)(13) of ERISA) of a Plan
subject to Title IV of ERISA shall be subject to the advance reporting
requirement of PBGC Regulation Section 4043.61 (without regard to subparagraph
(b)(1) thereof) and an event described in subsection .62, .63, .64, .65, .66,
 .67 or .68 of PBGC Regulation Section 4043 shall be reasonably expected to occur
with respect to such Plan within the following 30 days, any Plan which is
subject to Title IV of ERISA shall have had or is likely to have a trustee
appointed to administer such Plan, any Plan which is subject to Title IV of
ERISA is, shall have been or is likely to be terminated or to be the subject of
termination proceedings under ERISA, any Plan shall have an Unfunded Current
Liability, a contribution required to be made with respect to a Plan or a
Foreign Pension Plan has not been timely made, the Borrower or any Subsidiary of
the Borrower or any ERISA Affiliate has incurred or is likely to incur any
liability to or on account of a Plan under Section 409, 502(i), 502(l), 515,
4062, 4063, 4064, 4069, 4201, 4204 or 4212 of ERISA or Section 401(a)(29), 4971
or 4975 of the Code or on account of a group health plan (as defined in Section
607(1) of ERISA or Section 4980B(g)(2) of the Code) under Section 4980B of the
Code, or the Borrower or any Subsidiary of the Borrower has incurred or is
likely to incur liabilities pursuant to one or more employee welfare benefit
plans (as defined in Section 3(1) of ERISA) that provide benefits to retired
employees or other former employees (other than as required by Section 601 of
ERISA) or Plans or Foreign Pension Plans, a "default" within the meaning of
Section 4219(c)(5) of ERISA shall occur with respect to any Plan, any applicable
law, rule or regulation is adopted, changed or interpreted, or the
interpretation or administration thereof is changed, in each case after the date
hereof, by any governmental authority or agency or by any court (a "Change of
Law"), or, as a result of a Change in Law, an event occurs following a Change in
Law, with respect to or otherwise affecting any Plan; (b) there shall result
from any such event or events the imposition of a lien, the granting of a
security interest, or a liability or a material risk of incurring a liability;
and (c) such lien, security interest or liability, either individually and/or in
the aggregate, has had, or could reasonably be expected to have, a Material
Adverse Effect; or

          10.07  Security Documents. Any of the Security Documents shall cease
                 ------------------
to be in full force and effect, or shall cease to give the Collateral Agent for
the benefit of the Secured Creditors the Liens, rights, powers and privileges
purported to be created thereby, or any Credit Party shall default in the due
performance or observance of any term, covenant or agreement on

                                      -92-
<PAGE>

its part to be performed or observed pursuant to any such Security Document and
such default shall continue beyond the period of grace, if any, specifically
applicable thereto pursuant to the terms of such Security Document; or

          10.08  Subsidiaries Guaranties. Except as otherwise provided in
                 -----------------------
Section 9.02(v) or (x), the Subsidiaries Guaranty or any provision thereof shall
cease to be in full force or effect as to any Subsidiary Guarantor, or any
Subsidiary Guarantor or any Person acting for or on behalf of such Subsidiary
Guarantor shall deny or disaffirm such Subsidiary Guarantor's obligations under
the Subsidiaries Guaranty or any Subsidiary Guarantor shall default in the due
performance or observance of any term, covenant or agreement on its part to be
performed or observed pursuant to the Subsidiaries Guaranty; or

          10.09  Judgments. One or more judgments or decrees shall be entered
                 ---------
against the Borrower or any Subsidiary of the Borrower involving in the
aggregate for the Borrower and its Subsidiaries a liability (not paid or fully
covered by a reputable and solvent insurance company) and such judgments and
decrees either shall be final and non-appealable or shall not be vacated,
discharged or stayed or bonded pending appeal for any period of 30 consecutive
days, and the aggregate amount of all such judgments equals or exceeds
$5,000,000; or

          10.10  Change of Control. A Change of Control shall occur;
                 -----------------

then, and in any such event, and at any time thereafter, if any Event of Default
shall then be continuing, the Administrative Agent, upon the written request of
the Required Lenders, shall by written notice to the Borrower, take any or all
of the following actions, without prejudice to the rights of the Administrative
Agent, any Lender or the holder of any Note to enforce its claims against any
Credit Party (provided that, if an Event of Default specified in Section 10.05
              --------
shall occur with respect to the Borrower, the result which would occur upon the
giving of written notice by the Administrative Agent as specified in clauses (i)
and (ii) below shall occur automatically without the giving of any such notice):
(i) declare the Total Commitment terminated, whereupon all Commitments of each
Lender shall forthwith terminate immediately and any Commitment Commission shall
forthwith become due and payable without any other notice of any kind; (ii)
declare the principal of and any accrued interest in respect of all Loans and
the Notes and all Obligations owing hereunder and thereunder to be, whereupon
the same shall become, forthwith due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by each
Credit Party; (iii) terminate any Letter of Credit which may be terminated in
accordance with its terms; (iv) direct the Borrower to pay (and the Borrower
agrees that upon receipt of such notice, or upon the occurrence of an Event of
Default specified in Section 10.05 with respect to the Borrower, it will pay) to
the Collateral Agent at the Payment Office such additional amount of cash or
Cash Equivalents, to be held as security by the Collateral Agent, as is equal to
the aggregate Stated Amount of all Letters of Credit issued for the account of
the Borrower and then outstanding; (v) enforce, as Collateral Agent, all of the
Liens and security interests created pursuant to the Security Documents; and
(vi) apply any cash collateral held by the Administrative Agent pursuant to
Section 4.02 to the repayment of the Obligations.

                                      -93-
<PAGE>

          SECTION 11.  Definitions and Accounting Terms.
                       --------------------------------

          11.01  Defined Terms. As used in this Agreement, the following terms
                 -------------
shall have the following meanings (such meanings to be equally applicable to
both the singular and plural forms of the terms defined):

          "A Term Loan" shall have the meaning provided in Section 1.01(a).

          "A Term Loan Commitment" shall mean, for each Lender, the amount set
forth opposite such Lender's name in Schedule I directly below the column
entitled "A Term Loan Commitment", as the same may be terminated pursuant to
Sections 3.03 and/or 10.

          "A Term Loan Maturity Date" shall mean May 9, 2006.

          "A Term Loan Percentage" shall mean, at any time, a fraction
(expressed as a percentage), the numerator of which is equal to the aggregate
principal amount of all A Term Loans outstanding at such time, and the
denominator of which is equal to the aggregate principal amount of all Term
Loans outstanding at such time.

          "A Term Note" shall have the meaning provided in Section 1.05(a).

          "Acquired EBITDA" shall mean, for any Acquired Entity or Business for
any period, the Consolidated EBITDA as determined for such Acquired Entity or
Business for such period on the basis substantially the same (with necessary
reference changes) as provided in the definition of Consolidated EBITDA
contained herein.

          "Acquired Entity or Business" shall mean either (x) the assets
constituting a business, division or product line of any Person not already a
Subsidiary of the Borrower or (y) 100% of the capital stock of any such Person,
which Person shall, as a result of such stock acquisition, become a Wholly-Owned
Subsidiary of the Borrower (or shall be merged with and into the Borrower or a
Subsidiary Guarantor, with the Borrower or such Subsidiary Guarantor being the
surviving Person).

          "Acquisition" shall mean the acquisition by Acquisition Co. of all of
the outstanding stock of the Target pursuant to the Acquisition Documents.

          "Acquisition Agreement" shall mean the Share Purchase Agreement, dated
as of May 9, 2001, between the Seller and Acquisition Co.

          "Acquisition Co." shall mean Manitowoc France SAS, a newly formed
Wholly-Owned Foreign Subsidiary of the Borrower incorporated under the laws of
France.

          "Acquisition Documents" shall mean the Acquisition Agreement, the Put
Agreement and all other agreements and documents relating to the Acquisition.

          "Additional Security Documents" shall have the meaning provided in
Section 8.12.

                                      -94-
<PAGE>

          "Adjusted Consolidated Net Income" shall mean, for any period,
Consolidated Net Income for such period plus, without duplication, the sum of
the amount of all net non-cash charges (including, without limitation,
depreciation, amortization, deferred tax expense and non-cash interest expense)
and net non-cash losses which were included in arriving at Consolidated Net
Income for such period, less the amount of all net non-cash gains and non-cash
credits which were included in arriving at Consolidated Net Income for such
period.

          "Adjusted Consolidated Working Capital" shall mean, at any time,
Consolidated Current Assets (but excluding therefrom all cash and Cash
Equivalents) less Consolidated Current Liabilities at such time.

          "Administrative Agent" shall mean BTCo, in its capacity as
Administrative Agent for the Lenders hereunder, and shall include any successor
to the Administrative Agent appointed pursuant to Section 12.09.

          "Affiliate" shall mean, with respect to any Person, any other Person
directly or indirectly controlling (including, but not limited to, all directors
and officers of such Person), controlled by, or under direct or indirect common
control with, such Person. A Person shall be deemed to control another Person
if such Person possesses, directly or indirectly, the power (i) to vote 10% or
more of the securities having ordinary voting power for the election of
directors (or equivalent governing body) of such Person or (ii) to direct or
cause the direction of the management and policies of such other Person, whether
through the ownership of voting securities, by contract or otherwise; provided,
                                                                      --------
however, that neither the Administrative Agent nor any Lender (nor any Affiliate
-------
thereof) shall be considered an Affiliate of the Borrower or any Subsidiary
thereof.

          "Agreement" shall mean this Credit Agreement, as modified,
supplemented, amended, restated (including any amendment and restatement
hereof), extended or renewed from time to time.

          "Applicable Commitment Commission Percentage" and "Applicable Margin"
shall mean:  from and after any Start Date to and including the corresponding
End Date, (i) with respect to Commitment Commission, the respective per annum
percentage set forth below under the column "Applicable Commitment Commission
Percentage" and (ii) with respect to A Term Loans, B Term Loans, Revolving Loans
and Swingline Loans, the respective percentage per annum set forth below under
the respective Type of Loans and (in the case of preceding clauses (i) and (ii))
opposite the respective Level (i.e., Level 1, Level 2, Level 3 or Level 4, as
                               ----
the case may be) indicated to have been achieved on the applicable Test Date for
such Start Date (as shown in the respective officer's certificate delivered
pursuant to Section 8.01(e) or the first proviso below) plus or minus (in the
                                                        ----    -----
case of preceding clause (ii)), as applicable, any Applicable Pricing Adjustment
as in effect from time to time:

                                      -95-
<PAGE>

<TABLE>
<CAPTION>
                                A Term Loans and
                                 Revolving Loans        A Term Loans and                               B Term Loans      Applicable
            Consolidated          maintained as          Revolving Loans         B Term Loans          maintained as     Commitment
                Total            Base Rate Loans          maintained as         maintained as           Eurodollar       Commission
Level      Leverage Ratio      and Swingline Loans       Euro Rate Loans       Base Rate Loans             Loans         Percentage
-----      --------------     --------------------      ----------------       ---------------         -------------     ----------
<S>        <C>                <C>                       <C>                    <C>                     <C>               <C>
1          Less than
           2.00:1.00                 1.000%                  2.000%                1.750%                 2.750%           0.250%

2          Greater than or
           equal to
           2.00:1.00 but
           less than or
           equal to 2.50:1.00        1.250%                  2.250%                1.875%                 2.875%           0.250%

3          Greater than
           2.50:1.00 but
           less than or
           equal to 3.00:1.00        1.500%                  2.500%                1.875%                 2.875%           0.375%

4          Greater than
           3.00:1.00                 1.625%                  2.625%                1.875%                 2.875%           0.500%

</TABLE>

;provided, however, that if the Borrower fails to deliver the financial
 --------  -------
statements required to be delivered pursuant to Section 8.01(a) or (b)
(accompanied by the officer's certificate required to be delivered pursuant to
Section 8.01(e) showing the applicable Consolidated Total Leverage Ratio on the
relevant Test Date) on or prior to the respective date required by such
Sections, then Level 4 pricing (as adjusted by any Applicable Pricing
Adjustment) shall apply until such time, if any, as the financial statements
required as set forth above and the accompanying officer's certificate have been
delivered showing the pricing for the respective Margin Reduction Period is at a
level which is less than Level 4 (as adjusted by any Applicable Pricing
Adjustment) (it being understood that, in the case of any late delivery of the
financial statements and officer's certificate as so required, any reduction in
the Applicable Commitment Commission Percentage or in the Applicable Margin
shall apply only from and after the date of the delivery of the complying
financial statements and officer's certificate); provided further, that Level 4
                                                 ----------------
pricing (as adjusted by any Applicable Pricing Adjustment) shall apply at all
times when an Event of Default is in existence.  Notwithstanding anything to the
contrary contained in the immediately preceding sentence, Level 4 pricing (as
adjusted by any Applicable Pricing Adjustment) shall apply for the period from
the Initial Borrowing Date to the date of the delivery of the Borrower's
financial statements (and related officer's certificate) in respect of its
fiscal year ending December 31, 2001.

          "Approved Currency" shall mean (i) for Term Loans, Dollars, (ii) for
Revolving Loans, Dollars, Pounds Sterling and Euros, and (iii) for Letters of
Credit, Dollars and one or more Foreign Currencies.

          "Applicable Pricing Adjustment" shall mean, on any date:

                                      -96-
<PAGE>

          (A)  in the case of A Term Loans, Revolving Loans and Swingline Loans,
     a decrease of 0.250% so long as no Event of Default then exists and is
     continuing and the Bank Debt Ratings assigned by both Moody's and S&P are
     Ba1 (or above) and BB+ (or above), respectively; and

          (B)  in the case of B Term Loans, (x) an increase of 0.125% in the
     event that either (i) the Bank Debt Rating assigned by Moody's is Ba3 (or
     below) or (ii) the Bank Debt Rating assigned by S&P is BB- (or below) and
     succeeding sub-clause (y) is not applicable and (y) an increase of 0.250%
     in the event that the Bank Debt Ratings assigned by both Moody's and S&P
     are Ba3 (or below) and BB- (or below), respectively.

Notwithstanding the foregoing, (i) for the period from the Initial Borrowing
Date to the date of the delivery of the Borrower's financial statements (and
related officer's certificate) in respect of its fiscal year ending December 31,
2001, the Applicable Pricing Adjustment in clause (A) above shall be 0, and (ii)
at any time that a Bank Debt Rating has not been assigned by both S&P and
Moody's, (x) the Applicable Pricing Adjustment set forth in clause (A) above
shall be 0 and (y) the Applicable Pricing Adjustment set forth in clause (B)
above shall be 0.250%

          "Asset Sale" shall mean any sale, transfer or other disposition by the
Borrower or any of its Subsidiaries to any Person (including by way of
redemption by such Person) other than to the Borrower or a Wholly-Owned
Subsidiary of the Borrower of any asset (including, without limitation, any
capital stock or other securities of, or equity interests in, another Person)
other than sales of assets pursuant to Sections 9.02(ii), (iii), (vii), (viii),
(xiv), (xvi) and (xvii).

          "Assignment and Assumption Agreement" shall mean an Assignment and
Assumption Agreement substantially in the form of Exhibit N (appropriately
completed).

          "Associated Costs" shall mean the cost imputed to each Lender of
compliance with (a) the cash ratios and special deposit requirements of the Bank
of England and/or the banking supervision or other costs imposed by the
Financial Services Authority, as determined in accordance with Schedule X, and
(b) any reserve asset requirements of the European Central Bank, as determined
in accordance with Schedule X.

          "Available Revolving Loan Commitment" of any RL Lender at any time
shall mean its RL Percentage of the Total Available Revolving Loan Commitment at
such time.

          "B Lenders" shall have the meaning provided in Section 4.01(c).

          "B Term Loan" shall mean, collectively, each Initial B Term Loan and
each Incremental B Term Loan.

          "B Term Loan Maturity Date" shall mean May 9, 2007.

          "B Term Loan Percentage" shall mean, at any time, a fraction
(expressed as a percentage), the numerator of which is equal to the aggregate
principal amount of all B Term

                                      -97-
<PAGE>

Loans outstanding at such time, and the denominator of which is equal to the
aggregate principal amount of all Term Loans outstanding at such time.

          "B Term Note" shall have the meaning provided in Section 1.05(a).

          "Bank Debt Ratings" shall mean, as of each date of determination, the
rating (actual or implied) assigned to the Loans by S&P and Moody's.

          "Bankruptcy Code" shall have the meaning provided in Section 10.05.

          "Base Rate" shall mean, at any time, the higher of (i) the Prime
Lending Rate at such time and (ii) 1/2 of 1% in excess of the overnight Federal
Funds Rate at such time.

          "Base Rate Loan" shall mean (i) each Swingline Loan and (ii) each
other Loan (other than a Foreign Currency Revolving Loan) designated or deemed
designated as such by the Borrower at the time of the incurrence thereof or
conversion thereto.

          "Blocked Revolving Loan Commitment" shall mean, at any time, the
aggregate outstanding amount of all Receivables Indebtedness at such time for
which the Factor has recourse to the Borrower or any of its Subsidiaries at such
time.

          "Borrower" shall have the meaning provided in the first paragraph of
this Agreement.

          "Borrowing" shall mean the borrowing of one Type of Loan of a single
Tranche from all the Lenders having Commitments of the respective Tranche (or
from the Swingline Lender in the case of Swingline Loans) on a given date (or
resulting from a conversion or conversions on such date) having in the case of
Euro Rate Loans the same Interest Period, provided that (i) Base Rate Loans
                                          --------
incurred pursuant to Section 1.10(b) shall be considered part of the related
Borrowing of Eurodollar Loans, and (ii) any Incremental B Term Loans incurred
pursuant to Section 1.01(c) shall be considered part of the related Borrowing of
the then outstanding Initial B Term Loans to which such Incremental B Term Loans
are added pursuant to Section 1.14(c).

          "BTCo" shall mean Bankers Trust Company, in its individual capacity,
and any successor corporation thereto by merger, consolidation or otherwise.

          "Business Day" shall mean (i) for all purposes other than as covered
by clause (ii) below, any day except Saturday, Sunday and any day which shall be
in New York, New York, a legal holiday or a day on which banking institutions
are authorized or required by law or other government action to close and (ii)
with respect to all notices and determinations in connection with, and payments
of principal and interest on, Euro Rate Loans, any day which is a Business Day
described in clause (i) above and which is also (A) a day for trading by and
between banks in U.S. dollar deposits in the relevant interbank market and (B)
in relation to any payment in (x) Euros, a day on which the Trans-European
Automated Real-Time Gross Settlement Express Transfer (TARGET) System is open,
and (y) Pounds Sterling, a day on which banks are ordinarily open for the
transaction of business in the United Kingdom.

                                      -98-
<PAGE>

          "Buy-Back Arrangements" shall mean those arrangements more
particularly described on Schedule XI entered into by Foreign Subsidiaries of
the Borrower in the ordinary course of business and on a basis consistent with
the past practices of the Target and its Subsidiaries.

          "Calculation Period" shall mean, in the case of any Permitted
Acquisition, the Test Period most recently ended prior to the date of any such
Permitted Acquisition for which financial statements are available.

          "Canadian Dollars" shall mean freely transferable lawful money of
Canada.

          "Capital Expenditures" shall mean, with respect to any Person, all
expenditures by such Person which should be capitalized in accordance with
generally accepted accounting principles and, without duplication, the amount of
Capitalized Lease Obligations incurred by such Person; provided, however, that
                                                       --------  -------
the term Capital Expenditures shall not include the transfer of any then
existing cranes of the Borrower or its Subsidiaries held in inventory to their
rental fleet and thereby result in an increase to property, plant and equipment
even though generally accepted accounting principles may treat such transfers as
Capital Expenditures.

          "Capitalized Lease Obligations" shall mean, with respect to any
Person, all rental obligations of such Person which, under generally accepted
accounting principles, are required to be capitalized on the books of such
Person, in each case taken at the amount thereof accounted for as indebtedness
in accordance with such principles.

          "Cash Equivalents" shall mean, as to any Person, (i) securities issued
or directly and fully guaranteed or insured by the United States or any agency
or instrumentality thereof (provided that the full faith and credit of the
                            --------
United States is pledged in support thereof) having maturities of not more than
six months from the date of acquisition, (ii) marketable direct obligations
issued by any state of the United States or any political subdivision of any
such state or any public instrumentality thereof maturing within six months from
the date of acquisition thereof and, at the time of acquisition, having one of
the two highest ratings obtainable from either S&P or Moody's, (iii) Dollar
denominated time deposits, certificates of deposit and bankers acceptances of
any Lender or any commercial bank having, or which is the principal banking
subsidiary of a bank holding company having, a long-term unsecured debt rating
of at least "A" or the equivalent thereof from S&P or "A2" or the equivalent
thereof from Moody's with maturities of not more than six months from the date
of acquisition by such Person, (iv) repurchase obligations with a term of not
more than seven days for underlying securities of the types described in clause
(i) above entered into with any bank meeting the qualifications specified in
clause (iii) above, (v) commercial paper issued by any Person incorporated in
the United States rated at least A-1 or the equivalent thereof by S&P or at
least P-1 or the equivalent thereof by Moody's and in each case maturing not
more than six months after the date of acquisition by such Person, and (vi)
investments in money market funds substantially all of whose assets are
comprised of securities of the types described in clauses (i) through (v) above.

                                      -99-
<PAGE>

          "CERCLA" shall mean the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as the same has been amended and may
hereafter be amended from time to time, 42 U.S.C. (S) 9601 et seq.
                                                           -- ----

          "Change of Control" shall mean (a) any "person" or "group" (within the
meaning of Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as
in effect on the Effective Date) shall (A) have acquired, directly or
indirectly, beneficial ownership of 30% or more on a fully diluted basis of the
voting and/or economic interest in the Borrower's capital stock or (B) obtained
the power (whether or not exercised) to elect a majority of the Borrower's
directors or (b) the Board of Directors of the Borrower shall cease to consist
of a majority of Continuing Directors or (c) a "change of control" shall occur
as provided in the Senior Subordinated Note Indenture.

          "Change of Law" shall have the meaning provided in Section 10.06.

          "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, and the regulations promulgated and rulings issued thereunder.
Section references to the Code are to the Code, as in effect at the date of this
Agreement and any subsequent provisions of the Code, amendatory thereof,
supplemental thereto or substituted therefor.

          "Collateral" shall mean all property (whether real or personal) with
respect to which any security interests have been granted (or purported to be
granted) pursuant to any Security Document, including, without limitation, all
Pledge Agreement Collateral, all Security Agreement Collateral, all Mortgaged
Properties and all cash and Cash Equivalents delivered as collateral pursuant to
Section 4.02 or 10.

          "Collateral Agent" shall mean the Administrative Agent acting as
collateral agent for the Secured Creditors pursuant to the Security Documents.

          "Commitment" shall mean any of the commitments of any Lender, i.e.,
                                                                        ----
whether the A Term Loan Commitment, the Initial B Term Loan Commitment, the
Incremental B Term Loan Commitment or the Revolving Loan Commitment.

          "Commitment Commission" shall have the meaning provided in Section
3.01(a).

          "Consolidated Current Assets" shall mean, at any time, the
consolidated current assets of the Borrower and its Subsidiaries at such time.

          "Consolidated Current Liabilities" shall mean, at any time, the
consolidated current liabilities of the Borrower and its Subsidiaries at such
time, but excluding the current portion of any Indebtedness under this Agreement
and the current portion of any other long-term Indebtedness which would
otherwise be included therein.

          "Consolidated EBIT" shall mean, for any period, Consolidated Net
Income for such period before deducting therefrom Consolidated Interest Expense
for such period (to the extent deducted in arriving at Consolidated Net Income
for such period) and provision for taxes based on income (including foreign
withholding taxes imposed on interest or dividend payments

                                     -100-
<PAGE>

and state single business, unitary or similar taxes imposed on net income) that
were included in arriving at Consolidated Net Income for such period and without
giving effect (x) to any extraordinary gains or extraordinary losses and (y) to
any gains or losses from sales of assets other than from sales of inventory in
the ordinary course of business.

          "Consolidated EBITDA" shall mean, for any period, Consolidated EBIT
for such period, adjusted by adding thereto (i) the amount of all amortization
and depreciation that were deducted in arriving at Consolidated Net Income for
such period and (ii) the amount of all fees and expenses incurred in connection
with the Transaction for such period to the extent that same were deducted in
arriving at Consolidated Net Income for such period; it being understood that in
determining the Consolidated Senior Leverage Ratio and the Consolidated Total
Leverage Ratio only and in determining compliance with Section 9.09,
Consolidated EBITDA for any period shall be calculated on a Pro Forma Basis to
                                                            --- -----
give effect to any Acquired Entity or Business acquired during such period
pursuant to a Permitted Acquisition and not subsequently sold or otherwise
disposed of by the Borrower or any of its Subsidiaries during such period.

          "Consolidated Fixed Charge Coverage Ratio" shall mean, for any period,
the ratio of (x) the remainder of (A) Consolidated EBITDA for such period minus
(B) the aggregate amount of all Capital Expenditures made by the Borrower and
its Subsidiaries for such period (other than Capital Expenditures (x) made
pursuant to Section 9.07(c), (d) or (e) or (y) to the extent financed with
equity proceeds, capital stock, Assets Sale proceeds, insurance proceeds or
Indebtedness (other than with Revolving Loans or Swingline Loans)) to (y)
Consolidated Fixed Charges for such period.

          "Consolidated Fixed Charges" shall mean, for any period, the sum,
without duplication, of (i) Consolidated Interest Expense for such period and
(ii) the aggregate amount of all Dividends (including stock repurchases) paid by
the Borrower pursuant to Sections 9.03(v) and (vi) for such period.

          "Consolidated Indebtedness" shall mean, at any time, the sum of
(without duplication) (I) the aggregated stated balance sheet amount of all
Indebtedness (including, in any event, all Loans, Capitalized Lease Obligations
and Senior Subordinated Notes) of the Borrower and its Subsidiaries as would be
required to be reflected on the liability side of a balance sheet of such Person
at such time in accordance with generally accepted accounting principles as
determined on a consolidated basis, (II) all Indebtedness of the Borrower and
its Subsidiaries of the type described in clauses (ii) and (vii) of the
definition of Indebtedness contained herein, (III) the aggregate amount of all
Receivables Indebtedness of the Borrower and its Subsidiaries outstanding at
such time, and (IV) all Contingent Obligations of the Borrower and its
Subsidiaries in respect of Indebtedness of any third Person of the type referred
to in preceding clauses (I), (II) and (III) of this definition.

          "Consolidated Interest Coverage Ratio" shall mean, for any period, the
ratio of (x) Consolidated EBITDA for such period to (y) Consolidated Interest
Expense for such period.

          "Consolidated Interest Expense" shall mean, for any period, the total
consolidated interest expense of the Borrower and its Subsidiaries for such
period (calculated without regard

                                     -101-
<PAGE>

to any limitations on the payment thereof) plus, without duplication, that
portion of Capitalized Lease Obligations of the Borrower and its Subsidiaries
representing the interest factor for such period; provided that (i) the
                                                  --------
amortization of deferred financing, legal and accounting costs and expenses with
respect to the Transaction shall be excluded from Consolidated Interest Expense
to the extent same would otherwise have been included therein and (ii)
"Consolidated Interest Expense" shall be deemed to include interest expense
which the Borrower would have incurred during such period if the aggregate
amount of Receivables Indebtedness from time to time outstanding during such
period had instead been outstanding during such period as Revolving Loans
maintained as Eurodollar Loans bearing interest at a rate equal to the sum of
(I) the average of the Eurodollar Rates applicable to Revolving Loans maintained
as Eurodollar Loans as determined on the last day of such period (or, if no
Revolving Loans are outstanding on the last day of such period, the average of
the Eurodollar Rates applicable to A Term Loans (or, if no A Term Loans are
outstanding on the last day of such period, B Term Loans) maintained as
Eurodollar Loans as determined on the last day of such period) plus (II) the
                                                               ----
Applicable Margin for Revolving Loans maintained as Eurodollar Loans as in
effect on the last day of such period.

          "Consolidated Net Income" shall mean, for any period, the net income
(or loss) of the Borrower and its Subsidiaries for such period, determined on a
consolidated basis (after any deduction for minority interests), provided that
                                                                 --------
(i) in determining Consolidated Net Income, the net income of any other Person
which is not a Subsidiary of the Borrower or is accounted for by the Borrower by
the equity method of accounting shall be included only to the extent of the
payment of cash dividends or cash distributions by such other Person to the
Borrower or a Subsidiary thereof during such period, (ii) the net income of any
Subsidiary of the Borrower shall be excluded to the extent that the declaration
or payment of cash dividends or similar cash distributions by that Subsidiary of
that net income is not at the date of determination permitted by operation of
its charter or any agreement, instrument or law applicable to such Subsidiary
and (iii) the net income (or loss) of any other Person acquired by the Borrower
or a Subsidiary of the Borrower in a pooling of interests transaction for any
period prior to the date of such acquisition shall be excluded.

          "Consolidated Senior Indebtedness" shall mean, at any time, the amount
of all Consolidated Indebtedness at such time, less the aggregate principal
amount of the Senior Subordinated Notes outstanding at such time.

          "Consolidated Senior Leverage Ratio" shall mean, at any time, the
ratio of (x) Consolidated Senior Indebtedness at such time to (y) Consolidated
EBITDA for the Test Period then most recently ended.

          "Consolidated Total Leverage Ratio" shall mean, at any time, the ratio
of (x) Consolidated Indebtedness at such time to (y) Consolidated EBITDA for the
Test Period then most recently ended.

          "Contingent Obligation" shall mean, as to any Person, any obligation
of such Person as a result of such Person being a general partner of any other
Person, unless the underlying obligation is expressly made non-recourse as to
such general partner, and any obligation of such Person guaranteeing or intended
to guarantee any Indebtedness, leases, dividends or other

                                     -102-
<PAGE>

obligations ("primary obligations") of any other Person (the "primary obligor")
in any manner, whether directly or indirectly, including, without limitation,
any obligation of such Person, whether or not contingent, (i) to purchase any
such primary obligation or any property constituting direct or indirect security
therefor, (ii) to advance or supply funds (x) for the purchase or payment of any
such primary obligation or (y) to maintain working capital or equity capital of
the primary obligor or otherwise to maintain the net worth or solvency of the
primary obligor, (iii) to purchase property, securities or services primarily
for the purpose of assuring the owner of any such primary obligation of the
ability of the primary obligor to make payment of such primary obligation or
(iv) otherwise to assure or hold harmless the holder of such primary obligation
against loss in respect thereof; provided, however, that the term Contingent
                                 --------  -------
Obligation shall not include endorsements of instruments for deposit or
collection in the ordinary course of business. The amount of any Contingent
Obligation shall be deemed to be an amount equal to the lesser of (x) the stated
or determinable amount of the primary obligation in respect of which such
Contingent Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is
required to perform thereunder) as determined by such Person in good faith and
(y) the stated amount of such Contingent Obligation.

          "Continuing Directors" shall mean the directors of the Borrower on the
Initial Borrowing Date and each other director if such director's election to,
or nomination for the election to, the Board of Directors of the Borrower is
recommended or approved by a majority of then continuing Directors.

          "Credit Documents" shall mean this Agreement and, after the execution
and delivery thereof pursuant to the terms of this Agreement, each Note, the
Subsidiaries Guaranty, each Security Document, each Incremental B Term Loan
Commitment Agreement and each Incremental Revolving Loan Commitment Agreement.

          "Credit Event" shall mean the making of any Loan or the issuance of
any Letter of Credit.

          "Credit Party" shall mean the Borrower and each Subsidiary Guarantor.

          "Default" shall mean any event, act or condition which with notice or
lapse of time, or both, would constitute an Event of Default.

          "Defaulting Lender" shall mean any Lender with respect to which a
Lender Default is in effect.

          "Dividend" shall mean, with respect to any Person, that such Person
has declared or paid a dividend, distribution or returned any equity capital to
its stockholders, partners or members or authorized or made any other
distribution, payment or delivery of property (other than common equity of such
Person) or cash to its stockholders, partners or members as such, or redeemed,
retired, purchased or otherwise acquired, directly or indirectly, for a
consideration any shares of any class of its capital stock or any partnership or
membership interests outstanding on or after the Effective Date (or any options
or warrants issued by such Person with respect to its

                                     -103-
<PAGE>

capital stock or other equity interests), or set aside any funds for any of the
foregoing purposes, or shall have permitted any of its Subsidiaries to purchase
or otherwise acquire for a consideration any shares of any class of the capital
stock or any partnership or membership interests of such Person outstanding on
or after the Effective Date (or any options or warrants issued by such Person
with respect to its capital stock or other equity interests). Without limiting
the foregoing, "Dividends" with respect to any Person shall also include all
payments made or required to be made by such Person with respect to any stock
appreciation rights, equity incentive or achievement plans or any similar plans
or setting aside of any funds for the foregoing purposes.

          "Documents" shall mean the Credit Documents, the Acquisition Documents
and the Senior Subordinated Note Documents.

          "Dollar Equivalent" shall mean, at any time for the determination
thereof, (i) except as provided in clause (ii) below, the amount of Dollars
which could be purchased with the amount of the relevant Foreign Currency
involved in such computation at the spot exchange rate therefor as quoted by the
Administrative Agent as of 11:00 A.M. (London time) on the date two Business
Days prior to the date of any determination thereof for purchase on such date
and (ii) for purposes of Section 13.07(e), the amount of Dollars which could be
purchased with the amount of the relevant Foreign Currency involved in such
computation at the spot exchange rate therefor as quoted or utilized by the
Administrative Agent on the date of any determination thereof for purchase on
such day.

          "Dollar Revolving Loan" shall mean each Revolving Loan denominated in
Dollars.

          "Dollars" and the sign "$" shall each mean freely transferable lawful
money of the United States.

          "Domestic Subsidiary" shall mean, as to any Person, each Subsidiary of
such Person that is incorporated under the laws of the United States, any State
thereof or the District of Columbia.

          "Drawing" shall have the meaning provided in Section 2.05(b).

          "Effective Date" shall have the meaning provided in Section 13.10.

          "Eligible Transferee" shall mean and include a commercial bank, an
insurance company, a finance company, a financial institution, any fund that
invests in loans or any other "accredited investor" (as defined in Regulation D
of the Securities Act), but in any event excluding the Borrower and its
Subsidiaries.

          "EMU Legislation" shall mean the legislative measures of the European
Council for the introduction of, changeover to or operation of a single or
unified European Currency.

          "End Date" shall mean, for any Margin Reduction Period, the last day
of such Margin Reduction Period.

                                     -104-
<PAGE>

          "Environmental Claims" shall mean any and all administrative,
regulatory or judicial actions, suits, demands, demand letters, directives,
claims, liens, notices of noncompliance or violation, investigations or
proceedings relating in any way to any Environmental Law or any permit issued,
or any approval given, under any such Environmental Law (hereafter, "Claims"),
including, without limitation, (a) any and all Claims by governmental or
regulatory authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law, and (b)
any and all Claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief in connection
with alleged injury or threat of injury to health, safety or the environment due
to the presence of Hazardous Materials.

          "Environmental Law" shall mean any Federal, state, foreign or local
statute, law, rule, regulation, ordinance, code, guideline, written policy and
rule of common law now or hereafter in effect and in each case as amended, and
any judicial or administrative interpretation thereof, including any judicial or
administrative order, consent decree or judgment, relating to the environment,
employee health and safety or Hazardous Materials, including, without
limitation, CERCLA; RCRA; the Federal Water Pollution Control Act, 33 U.S.C. (S)
1251 et seq.; the Toxic Substances Control Act, 15 U.S.C. (S) 2601 et seq.; the
     -- ----                                                       -- ----
Clean Air Act, 42 U.S.C. (S) 7401 et seq.; the Safe Drinking Water Act, 42
                                  -- ----
U.S.C. (S) 3803 et seq.; the Oil Pollution Act of 1990, 33 U.S.C. (S) 2701 et
                -- ----                                                    --
seq.; the Emergency Planning and the Community Right-to-Know Act of 1986, 42
----
U.S.C. (S) 11001 et seq.; the Hazardous Material Transportation Act, 49 U.S.C.
                 -- ----
(S) 1801 et seq.; the Occupational Safety and Health Act, 29 U.S.C. (S) 651 et
         -- ----                                                            --
seq.; and any state and local or foreign counterparts or equivalents, in each
----
case as amended from time to time.

          "ERISA" shall mean the Employee Retirement Income Security Act of
1974, as amended from time to time, and the regulations promulgated and rulings
issued thereunder.  Section references to ERISA are to ERISA, as in effect at
the date of this Agreement and any subsequent provisions of ERISA, amendatory
thereof, supplemental thereto or substituted therefor.

          "ERISA Affiliate" shall mean each person (as defined in Section 3(9)
of ERISA) which together with the Borrower or a Subsidiary of the Borrower would
be deemed to be a "single employer" (i) within the meaning of Section 414(b),
(c), (m) or (o) of the Code or (ii) as a result of the Borrower or a Subsidiary
of the Borrower being or having been a general partner of such person.

          "EURIBOR" shall mean, with respect to each Interest Period applicable
to any Foreign Currency Revolving Loan denominated in Euros, (i) the rate per
annum for deposits in Euros as determined by the Administrative Agent for a
period corresponding to the duration of the relevant Interest Period which
appears on Reuters Page EURIBOR-01 at approximately 11:00 A.M. (Brussels time)
on the date which is two Business Days prior to the commencement of such
Interest Period or (ii) if such rate is not shown on Reuters Page EURIBOR-01,
the average offered quotation to four prime banks in the Euro-zone interbank
market by the Administrative Agent for Euro deposits of amounts comparable to
the principal amount of the Foreign Currency Revolving Loan for which an
interest rate is then being determined with maturities comparable to the
Interest Period to be applicable to such Foreign Currency Revolving Loan
(rounded upward to the next whole multiple of 1/16 of 1%), determined as of
11:00 A.M. (Brussels time) on the

                                     -105-
<PAGE>

date which is two Business Days prior to the commencement of such Interest
Period. The reference to Reuters Page EURIBOR-01 in this definition shall be
construed to be a reference to the relevant page or any other page that may
replace such page on the Reuters service. Notwithstanding anything to the
contrary contained above, in the event the Administrative Agent has made any
determination pursuant to Section 1.10(a)(i) in respect of Foreign Currency
Revolving Loans denominated in Euros, or in the circumstances described in
clause (i) to the proviso to Section 1.10(b) in respect of Foreign Currency
Revolving Loans denominated in Euros, EURIBOR determined pursuant to this
definition shall instead be the rate determined by the Administrative Agent as
the all-in-cost of funds for the Administrative Agent to fund a Foreign Currency
Revolving Loan denominated in Euros with maturities comparable to the Interest
Period applicable thereto.

          "Euro" and the sign "Euro" shall each mean the single currency of the
participating member states as described in any EMU Legislation.

          "Euro Equivalent" shall mean, at any time for the determination
thereof, the amount of Euros which could be purchased with the amount of Dollars
involved in such computation at the spot exchange rate therefor as quoted by the
Administrative Agent as of 11:00 A.M. (London time) on the date two Business
Days prior to the date of any determination thereof for purchase on such date
(or, in the case of any determination pursuant to Section 13.17 or Section 25 of
the Subsidiaries Guaranty, on the date of determination).

          "Euro Rate" shall mean (i) with respect to Term Loans and Dollar
Revolving Loans, the Eurodollar Rate, (ii) with respect to Foreign Currency
Revolving Loans denominated in Euros, EURIBOR, and (iii) with respect to Foreign
Currency Revolving Loans denominated in Pounds Sterling, Sterling LIBOR.

          "Euro Rate Loan" shall mean each Eurodollar Loan and each Foreign
Currency Revolving Loan.

          "Eurodollar Loan" shall mean each Loan (other than any Swingline Loan
and any Foreign Currency Revolving Loan) designated as such by the Borrower at
the time of the incurrence thereof or conversion thereto.

          "Eurodollar Rate" shall mean (a) the offered quotation to first-class
banks in the New York interbank Eurodollar market by BTCo for Dollar deposits of
amounts in immediately available funds comparable to the outstanding principal
amount of the Eurodollar Loan of BTCo with maturities comparable to the Interest
Period applicable to such Eurodollar Loan commencing two Business Days
thereafter as of 11:00 A.M. (New York time) on the applicable Interest
Determination Date, divided (and rounded upward to the nearest 1/16 of 1%) by
(b) a percentage equal to 100% minus then stated maximum rate of all reserve
requirements (including, without limitation, any marginal, emergency,
supplemental, special or other reserves required by applicable law) applicable
to any member bank of the Federal Reserve System in respect of Eurocurrency
funding or liabilities as defined in Regulation D (or any successor category of
liabilities under Regulation D).

                                     -106-
<PAGE>

          "Euro-zone" shall mean the region composed of the participating member
states as described in the EMU Legislation.

          "Event of Default" shall have the meaning provided in Section 10.

          "Excess Cash Flow" shall mean, for any period, the remainder of (a)
the sum of, without duplication, (i) Adjusted Consolidated Net Income for such
period and (ii) the decrease, if any, in Adjusted Consolidated Working Capital
from the first day to the last day of such period, minus (b) the sum of, without
duplication, (i) the aggregate amount of all Capital Expenditures made by the
Borrower and its Subsidiaries during such period (other than Capital
Expenditures to the extent financed with equity proceeds, capital stock, Asset
Sale proceeds, insurance proceeds or Indebtedness (other than with Revolving
Loans or Swingline Loans)), (ii) the aggregate amount of all Permitted
Acquisitions made by the Borrower and its Subsidiaries during such period (other
than Permitted Acquisitions to the extent financed with equity proceeds, capital
stock, Asset Sale proceeds, insurance proceeds or Indebtedness), (iii) the
aggregate amount of permanent principal payments of Indebtedness for borrowed
money of the Borrower and its Subsidiaries during such period (other than (A)
repayments to the extent made with Asset Sale proceeds, equity proceeds,
insurance proceeds or Indebtedness and (B) repayments of Loans, provided that
                                                                --------
repayments of Loans shall only be deducted in determining Excess Cash Flow if
such repayments were (x) required as a result of a Scheduled Repayment under
Section 4.02(b) or 4.02(c) or (y) made as a voluntary prepayment with internally
generated funds (but in the case of a voluntary prepayment of Revolving Loans or
Swingline Loans, only to the extent accompanied by a voluntary reduction to the
Total Revolving Loan Commitment in an amount equal to such prepayment)), (iii)
the aggregate amount of all cash Dividends actually paid pursuant to Section
9.03(v) for such period and (v) the increase, if any, in Adjusted Consolidated
Working Capital from the first day to the last day of such period.

          "Excess Cash Payment Date" shall mean the date occurring 90 days after
the last day of each fiscal year of the Borrower (beginning with its fiscal year
ending on December 31, 2002).

          "Excess Cash Payment Period" shall mean, with respect to the repayment
required on each Excess Cash Payment Date, the immediately preceding fiscal year
of the Borrower.

          "Exchange Senior Subordinated Notes" shall mean Senior Subordinated
Notes which are substantially identical securities to the Senior Subordinated
Notes issued on or prior to the Initial Borrowing Date, which Exchange Senior
Subordinated Notes shall be issued pursuant to a registered exchange offer or
private exchange offer for the Senior Subordinated Notes and pursuant to the
Senior Subordinated Notes Indenture.  In no event will the issuance of any
Exchange Senior Subordinated Notes increase the aggregate principal amount of
Senior Subordinated Notes then outstanding or otherwise result in an increase in
an interest rate applicable to the Senior Subordinated Notes.

          "Existing Indebtedness" shall have the meaning provided in Section
7.21.

                                     -107-
<PAGE>

          "Existing Indebtedness Agreements" shall have the meaning provided in
Section 5.05.

          "Facing Fee" shall have the meaning provided in Section 3.01(c).

          "Factor" shall mean General Electric Capital Corporation or any
successor thereto or replacement thereof under the Factoring Agreement.

          "Factoring Agreement" shall mean one or more receivables purchase
agreements (or similar agreements) entered into by the Borrower or a Subsidiary
thereof with the Factor so long as each such agreement is substantially in the
form of the Receivables Purchase Agreement as in effect on the Initial Borrowing
Date with the Factor, as the same may be amended, modified, supplemented and/or
replaced from time to time in accordance with the terms hereof and thereof and
so long as any such replacement agreement is on terms no less favorable to the
Borrower or any of its Subsidiaries in any material respect than those terms set
forth in the existing Factoring Agreement with General Electric Capital
Corporation as of the Initial Borrowing Date.

          "Federal Funds Rate" shall mean, for any period, a fluctuating
interest rate equal for each day during such period to the weighted average of
the rates on overnight Federal Funds transactions with members of the Federal
Reserve System arranged by Federal Funds brokers, as published for such day (or,
if such day is not a Business Day, for the next preceding Business Day) by the
Federal Reserve Bank of New York, or, if such rate is not so published for any
day which is a Business Day, the average of the quotations for such day on such
transactions received by the Administrative Agent from three Federal Funds
brokers of recognized standing selected by the Administrative Agent.

          "Fees" shall mean all amounts payable pursuant to or referred to in
Section 3.01.

          "Foreign Cash Equivalents" shall mean certificates of deposit or
bankers acceptances of any bank organized under the laws of Canada or any
country that is a member of the European Economic Community, whose short-term
commercial paper rating from S&P is at least A-1 or the equivalent thereof or
from Moody's is at least P-1 or the equivalent thereof, in each case with
maturities of not more than six months from the date of acquisition.

          "Foreign Currency" shall mean (i) in the case of any Revolving Loan,
Euros and Pounds Sterling, and (ii) in the case of any non-Dollar denominated
Letter of Credit, Euros, Pounds Sterling, Canadian Dollars and such other
currencies as may be requested by the Borrower and acceptable to the
Administrative Agent and the Issuing Lender.

          "Foreign Currency Revolving Loan" shall mean each Revolving Loan
denominated in a Foreign Currency.

          "Foreign Pension Plan" shall mean any plan, fund (including, without
limitation, any superannuation fund) or other similar program established or
maintained outside the United States by the Borrower or any one or more of its
Subsidiaries primarily for the benefit of employees of the Borrower or such
Subsidiaries residing outside the United States, which plan,

                                     -108-
<PAGE>

fund or other similar program provides, or results in, retirement income, a
deferral of income in contemplation of retirement or payments to be made upon
termination or severance of employment, and which plan is not subject to ERISA
or the Code.

          "Foreign Subsidiary" shall mean, as to any Person, each Subsidiary of
such Person which is not a Domestic Subsidiary.

          "Fronting Lender" shall mean BTCo in its individual capacity.

          "Hazardous Materials" shall mean (a) any petroleum or petroleum
products, radioactive materials, asbestos in any form that is or could become
friable, urea formaldehyde foam insulation, dielectric fluid containing levels
of polychlorinated biphenyls, and radon gas; (b) any chemicals, materials or
substances defined as or included in the definition of "hazardous substances,"
"hazardous waste," "hazardous materials," "extremely hazardous substances,"
"restricted hazardous waste," "toxic substances," "toxic pollutants,"
"contaminants," or "pollutants," or words of similar import, under any
applicable Environmental Law; and (c) any other chemical, material or substance,
the exposure to, or Release of which is prohibited, limited or regulated by any
governmental authority.

          "Incremental B Term Loan" shall have the meaning provided in Section
1.01(c).

          "Incremental B Term Loan Borrowing Date" shall mean that date on which
the Borrower incurs Incremental B Term Loans pursuant to Section 1.01(c), which
date shall be the date of the effectiveness of the Incremental B Term Loan
Commitment Agreement pursuant to which such Incremental B Term Loans are to be
made; provided that that such date shall occur on or before the Incremental
      --------
Commitment Expiry Date.

          "Incremental B Term Loan Commitment" shall mean, for each Incremental
B Term Loan Lender, the commitment of such Incremental B Term Loan Lender to
make Incremental B Term Loans pursuant to Section 1.01(c) on the Incremental B
Term Loan Borrowing Date, as such commitment is set forth in the Incremental B
Term Loan Commitment Agreement delivered pursuant to Section 1.14(b) and as same
may be terminated pursuant to Sections 3.03 and/or 10.

          "Incremental B Term Loan Commitment Agreement" shall mean an
Incremental B Term Loan Commitment Agreement substantially in the form of
Exhibit C (appropriately completed).

          "Incremental B Term Loan Lender" shall have the meaning provided in
Section 1.14(b).

          "Incremental Commitment Expiry Date" shall mean May 30, 2005.

          "Incremental Revolving Loan Commitment" shall mean, for each
Incremental RL Lender, any commitment by such Incremental RL Lender to make
Revolving Loans pursuant to Section 1.01(d) as agreed to by such Incremental RL
Lender in the respective Incremental Revolving Loan Commitment Agreement
delivered pursuant to Section 1.15; it being

                                     -109-
<PAGE>

understood, however, that on each date upon which an Incremental Revolving Loan
            -------
Commitment of any Incremental RL Lender becomes effective, such Incremental
Revolving Loan Commitment of such Incremental RL Lender shall be added to (and
thereafter become a part of) the Revolving Loan Commitment of such Incremental
RL Lender for all purposes of this Agreement as contemplated by Section 1.15.

          "Incremental Revolving Loan Commitment Agreement" shall mean an
Incremental Revolving Loan Commitment Agreement substantially in the form of
Exhibit D (appropriately completed).

          "Incremental RL Lender" shall have the meaning provided in Section
1.15(b).

          "Indebtedness" shall mean, as to any Person, without duplication, (i)
all indebtedness (including principal, interest, fees and charges) of such
Person for borrowed money or for the deferred purchase price of property or
services, (ii) the maximum amount available to be drawn under all letters of
credit, bankers' acceptances and similar obligations issued for the account of
such Person and all unpaid drawings in respect of such letters of credit,
bankers' acceptances and similar obligations, (iii) all indebtedness of the
types described in clause (i), (ii), (iv), (v), (vi) or (vii) of this definition
secured by any Lien on any property owned by such Person, whether or not such
indebtedness has been assumed by such Person (provided that, if the Person has
                                              --------
not assumed or otherwise become liable in respect of such indebtedness, such
indebtedness shall be deemed to be in an amount equal to the fair market value
of the property to which such Lien relates as determined in good faith by such
Person), (iv) the aggregate amount of all Capitalized Lease Obligations of such
Person, (v) all obligations of such Person to pay a specified purchase price for
goods or services, whether or not delivered or accepted, i.e., take-or-pay and
                                                         ----
similar obligations, (vi) all Contingent Obligations of such Person, (vii) all
obligations under any Interest Rate Protection Agreement, any Other Hedging
Agreement or under any similar type of agreement, and (viii) all Receivables
Indebtedness.  Notwithstanding the foregoing, Indebtedness shall not include
trade payables and accrued expenses incurred by any Person in accordance with
customary practices and in the ordinary course of business of such Person.

          "Indebtedness to be Refinanced" shall mean all Indebtedness set forth
on Schedule XII which is to be repaid in full and/or terminated on the Initial
Borrowing Date as part of the Refinancing.

          "Indemnifying Lender" shall mean each financial institution that has
an "Indemnity Amount" (in excess of $0) appearing opposite its name on Schedule
I, and each financial institution which, with the approval of the Fronting
Lender and the Administrative Agent, acquires an Indemnity Amount (in excess of
$0) pursuant to an Assignment and Assumption Agreement.

          "Indemnity Amount" shall mean, for each Indemnifying Lender which is a
signatory hereto or which becomes an Indemnifying Lender pursuant to an
Assignment and Assumption Agreement, the amount that is so designated and set
forth opposite such Indemnify-

                                     -110-
<PAGE>

ing Lender's name on Schedule I (as the same may be modified pursuant to
Sections 1.13, 1.17, 13.04(c) and 13.12(b), as the case may be).

          "Indemnity Participation" shall have the meaning provided in Section
1.17.

          "Initial B Term Loan" shall have the meaning provided in Section
1.01(b).

          "Initial B Term Loan Commitment" shall mean, for each Lender, the
amount set forth opposite such Lender's name on Schedule I directly below the
column entitled "Initial B Term Loan Commitment," as the case may be terminated
pursuant to Sections 3.03 and or 10.

          "Initial Borrowing Date" shall mean the date occurring on or after the
Effective Date on which the initial Borrowing of Loans occurs.

          "Intercompany Loan" shall have the meaning provided in Section
9.05(ix).

          "Intercompany Note" shall mean a promissory note, in the form of
Exhibit O, evidencing Intercompany Loans.

          "Interest Determination Date" shall mean, with respect to any Euro
Rate Loan, the second Business Day prior to the commencement of any Interest
Period relating to such Euro Rate Loan.

          "Interest Period" shall have the meaning provided in Section 1.09.

          "Interest Rate Protection Agreement" shall mean any interest rate swap
agreement, interest rate cap agreement, interest collar agreement, interest rate
hedging agreement or other similar agreement or arrangement.

          "Investments" shall have the meaning provided in Section 9.05.

          "Issuing Country" shall have the meaning provided in Section 13.18(a).

          "Issuing Lender" shall mean BTCo (which, for purposes of this
definition, also shall include any banking affiliate of BTCo, including Deutsche
Bank AG, New York Branch, which has agreed to issue Letters of Credit under this
Agreement).

          "Judgment Currency" shall have the meaning provided in Section
13.17(a).

          "Judgment Currency Conversion Date" shall have the meaning provided in
Section 13.17(a).

          "L/C Supportable Obligations" shall mean (i) obligations of the
Borrower or any of its Subsidiaries with respect to workers compensation, surety
bonds and other similar statutory obligations and (ii) such other obligations of
the Borrower or any of its Subsidiaries as are reasonably acceptable to the
Issuing Lender and otherwise permitted to exist pursuant to the terms of this
Agreement (other than obligations in respect of the Senior Subordinated Notes).

                                     -111-
<PAGE>

          "Leaseholds" of any Person shall mean all the right, title and
interest of such Person as lessee or licensee in, to and under leases or
licenses of land, improvements and/or fixtures.

          "Lender" shall mean each financial institution listed on Schedule I,
as well as any Person that becomes a "Lender" hereunder pursuant to Section
1.13, 1.14, 1.15 or 13.04(b), it being understood that for purposes of Sections
1.10, 1.11 and 2.06, the term "Lender" as used herein shall in any event include
BTCo in its capacity as a Fronting Lender.

          "Lender Default" shall mean (i) the refusal (which has not been
retracted) or the failure of a Lender to make available its portion of any
Borrowing (including any Mandatory Borrowing) or to fund its portion of any
unreimbursed payment under Section 2.04(c) or (ii) a Lender having notified in
writing the Borrower and/or the Administrative Agent that such Lender does not
intend to comply with its obligations under Section 1.01(a), 1.01(b), 1.01(c),
1.01(d), 1.01(f) or 2.

          "Letter of Credit" shall have the meaning provided in Section 2.01(a).

          "Letter of Credit Fee" shall have the meaning provided in Section
3.01(b).

          "Letter of Credit Outstandings" shall mean, at any time, the sum of
(i) the Stated Amount of all outstanding Letters of Credit and (ii) the
aggregate amount of all Unpaid Drawings in respect of all Letters of Credit.

          "Letter of Credit Request" shall have the meaning provided in Section
2.03(a).

          "Lien" shall mean any mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or other), preference,
priority or other security agreement of any kind or nature whatsoever
(including, without limitation, any conditional sale or other title retention
agreement, any financing or similar statement or notice filed under the UCC or
any other similar recording or notice statute, and any lease having
substantially the same effect as any of the foregoing).

          "Loan" shall mean each Term Loan, each Revolving Loan and each
Swingline Loan.

          "Majority Lenders" of any Tranche shall mean those Non-Defaulting
Lenders which would constitute the Required Lenders under, and as defined in,
this Agreement if all outstanding Obligations under the other Tranches under
this Agreement were repaid in full and all Commitments with respect thereto were
terminated.

          "Mandatory Borrowing" shall have the meaning provided in Section
1.01(f).

          "Margin Reduction Period" shall mean each period which shall commence
on the date upon which the respective officer's certificate is delivered
pursuant to Section 8.01(e) (together with the related financial statements
pursuant to Section 8.01(a) or (b), as the case may be) and which shall end on
the date of actual delivery of the next officer's certificates pursuant to

                                     -112-
<PAGE>

Section 8.01(e) (and related financial statements) or the latest date on which
such next officer's certificate (and related financial statements) is required
to be so delivered; it being understood that the first Margin Reduction Period
shall commence with the delivery of the Borrower's financial statements (and
related officer's certificate) in respect of its fiscal year ending on December
31, 2001.

          "Margin Stock" shall have the meaning provided in Regulation U.

          "Material Adverse Effect" shall mean (i) a material adverse effect on
the business, operations, property, assets, liabilities or condition (financial
or otherwise) of the Borrower and its Subsidiaries taken as a whole or (ii) a
material adverse effect (x) on the Transaction, (y) on the rights or remedies of
the Lenders or the Administrative Agent hereunder or under any other Credit
Document or (z) on the ability of any Credit Party to perform its obligations to
the Lenders or the Administrative Agent hereunder or under any other Credit
Document.

          "Maturity Date" shall mean, with respect to any Tranche of Loans, the
A Term Loan Maturity Date, the B Term Loan Maturity Date, the Revolving Loan
Maturity Date or the Swingline Expiry Date, as the case may be.

          "Maximum Swingline Amount" shall mean $20,000,000.

          "Minimum Borrowing Amount" shall mean (i) for Term Loans, $5,000,000,
(ii) for Revolving Loans maintained as Base Rate Loans, $1,000,000, (iii) for
Revolving Loans maintained as Euro Rate Loans, $1,000,000 (or the Euro
Equivalent or Sterling Equivalent thereof, as the case may be), and (iv) for
Swingline Loans, $100,000.

          "Moody's" shall mean Moody's Investors Service, Inc. and its
successors.

          "Mortgage" shall mean a mortgage, leasehold mortgage, deed of trust,
leasehold deed of trust, deed to secure debt, leasehold deed to secure debt or
similar security instrument.

          "Mortgage Policy" shall mean a mortgage title insurance policy or a
binding commitment with respect thereto.

          "Mortgaged Property" shall mean any Real Property owned or leased by a
Credit Party which is encumbered (or required to be encumbered) by a Mortgage.

          "NAIC" shall mean the National Association of Insurance Commissioners.

          "Net Debt Proceeds" shall mean, with respect to any incurrence of
Indebtedness for borrowed money, the cash proceeds (net of underwriting
discounts and commissions and other reasonable costs and expenses associated
therewith) received by the respective Person from the respective incurrence of
such Indebtedness for borrowed money.

          "Net Insurance Proceeds" shall mean, with respect to any Recovery
Event, the cash proceeds (net of reasonable costs, expenses and taxes incurred
in connection with such Recovery Event) received by the respective Person in
connection with such Recovery Event.

                                     -113-
<PAGE>

          "Net Sale Proceeds" shall mean, for any Asset Sale, the gross cash
proceeds (including any cash received by way of deferred payment pursuant to a
promissory note, receivable or otherwise, but only as and when received)
received from such sale of assets, net of the reasonable costs and expenses of
such sale (including fees and commissions, payments of unassumed liabilities
relating to the assets sold and required payments of any Indebtedness (other
than Indebtedness secured pursuant to the Security Documents) which is secured
by the respective assets which were sold), and the incremental taxes paid or
payable as a result of such Asset Sale.

          "Non-Defaulting Lender" and "Non-Defaulting RL Lender" shall mean and
include each Lender or RL Lender, as the case may be, other than a Defaulting
Lender.

          "Note" shall mean each A Term Note, each B Term Note, each Revolving
Note and the Swingline Note.

          "Notice of Borrowing" shall have the meaning provided in Section
1.03(a).

          "Notice of Conversion/Continuation" shall have the meaning provided in
Section 1.06.

          "Notice Office" shall mean the office of the Administrative Agent
located at One Bankers Trust Plaza, 130 Liberty Street, New York, New York
10006, Attention: Robert Carlovits or such other office or person as the
Administrative Agent may hereafter designate in writing as such to the other
parties hereto; provided that in the case of all Borrowings of Foreign Currency
                --------
Revolving Loans denominated in Pounds Sterling or Euros, and all notices
relating thereto, the "Notice Office" shall mean the office specified above,
with a copy of the respective notice to be delivered at the same time as
otherwise required pursuant to the terms of this Agreement to the office of the
Administrative Agent located at Deutsche Bank AG, London, Winchester House, 1
Great Winchester Street, London EC2N 2DB Attention: Loans Agency Department--Liz
Keegan, or such other office or person in London as the Administrative Agent may
hereafter designate in writing as such to the other parties hereto.

          "Obligations" shall mean all amounts owing to the Administrative
Agent, the Collateral Agent, the Issuing Lender, the Swingline Lender or any
Lender pursuant to the terms of this Agreement or any other Credit Document.

          "Obligation Currency" shall have the meaning provided in Section
13.17(a).

          "Other Hedging Agreements" shall mean any foreign exchange contracts,
currency swap agreements or other similar arrangements, or arrangements designed
to protect against fluctuations in the currency values.

          "Participant" shall have the meaning provided in Section 2.04(a).

          "Payment Office" shall mean (i) in the case of principal, interest,
Unpaid Drawings, Fees and all other amounts owing with respect to all Loans
(other than Foreign Currency Revolving Loans), all Letters of Credit and, except
as provided in clauses (ii) and (iii)

                                     -114-
<PAGE>

below, all other amounts owing under this Agreement and the other Credit
Documents, the office of the Administrative Agent located at One Bankers Trust
Plaza, 130 Liberty Street, New York, New York 10006, or such other office
located in New York City as the Administrative Agent may hereafter designate in
writing as such to the other parties hereto, (ii) in the case of all principal,
interest and other amounts owing with respect to all Foreign Currency Revolving
Loans denominated in Pounds Sterling, the office of the Administrative Agent
located at Deutsche Bank AG, London, 1 Appold Street, Broadgate, London EC2A HE
Attention: Loans Agency Department--Liz Keegan, or such other office or person
in London as the Administrative Agent may hereafter designate in writing as such
to the other parties hereto, and (iii) in the case of all principal, interest
and other amounts owing with respect to all Foreign Currency Revolving Loans
denominated in Euros, the office of the Administrative Agent located at Deutsche
Bank AG (DEUTDEFF), Alfred-Herrhausen Allee 16-24, Eschborn 65760, Germany, or
such other office in Frankfurt as the Administrative Agent may hereafter
designate in writing as such to the other parties hereto.

          "PBGC" shall mean the Pension Benefit Guaranty Corporation established
pursuant to Section 4002 of ERISA, or any successor thereto.

          "Permitted Acquisition" shall mean the acquisition by the Borrower or
a Wholly-Owned Subsidiary thereof of an Acquired Entity or Business (including
by way of merger of such Acquired Entity or Business with and into the Borrower
(so long as the Borrower is the surviving corporation) or a Wholly-Owned
Subsidiary thereof (so long as the Wholly-Owned Subsidiary is the surviving
corporation), provided that (in each case) (A) the consideration paid or to be
              --------
paid by the Borrower or such Wholly-Owned Subsidiary consists solely of cash
(including proceeds of Revolving Loans or Swingline Loans), the issuance or
incurrence of Indebtedness otherwise permitted by Section 9.04, the issuance of
common stock of the Borrower or Qualified Preferred Stock of the Borrower in
each case to the extent no Default or Event of Default exists pursuant to
Section 10.10 or would result therefrom and the assumption/acquisition of any
Indebtedness (calculated at face value) which is permitted to remain outstanding
in accordance with the requirements of Section 9.04, (B) in the case of the
acquisition of 100% of the capital stock of any Person (including way of
merger), such Person shall own no capital stock of any other Person (excluding
de minimis amounts) unless either (x) such Person owns 100% of the capital stock
of such other Person or (y) (1) such Person and its Wholly-Owned Subsidiaries
own at least 80% of the consolidated assets of such other Person and its
Subsidiaries and (2) any non-Wholly-Owned Subsidiary of such Person was non-
Wholly-Owned prior to the date of such Permitted Acquisition of such Person, (C)
the Acquired Entity or Business acquired pursuant to the respective Permitted
Acquisition is in a business permitted by Section 9.16 and (D) all applicable
requirements of Sections 8.14, 9.02 and 9.17 applicable to Permitted
Acquisitions are satisfied.  Notwithstanding anything to the contrary contained
in the immediately preceding sentence, an acquisition which does not otherwise
meet the requirements set forth above in the definition of "Permitted
Acquisition" shall constitute a Permitted Acquisition if, and to the extent, the
Required Lenders agree in writing, prior to the consummation thereof, that such
acquisition shall constitute a Permitted Acquisition for purposes of this
Agreement.

          "Permitted Acquisition Basket Amount" shall mean, (i) for any fiscal
year of the Borrower ending on or prior to December 31, 2002, $100,000,000,
provided, however, that such
--------  -------

                                     -115-
<PAGE>

amount shall be increased to $200,000,000 for each such fiscal year of the
Borrower at such time, if any, as the Borrower elects to consummate more than
$100,000,000 of Permitted Acquisitions in any such fiscal year of the Borrower
in accordance with the requirements of Section 8.14 but only after taking into
account the resetting of the Consolidated Senior Leverage Ratio compliance level
in Section 9.10 pursuant to the last sentence thereof, and (ii) for any fiscal
year of the Borrower ending after December 31, 2002, $200,000,000.

          "Permitted Encumbrance" shall mean, with respect to any Mortgaged
Property, such exceptions to title as are set forth in the Mortgage Policy
delivered with respect thereto, all of which exceptions must be acceptable to
the Administrative Agent in its reasonable discretion.

          "Permitted Liens" shall have the meaning provided in Section 9.01.

          "Person" shall mean any individual, partnership, joint venture, firm,
corporation, association, limited liability company, trust or other enterprise
or any government or political subdivision or any agency, department or
instrumentality thereof.

          "Plan" shall mean any pension plan as defined in Section 3(2) of
ERISA, which is maintained or contributed to by (or to which there is an
obligation to contribute of) the Borrower or a Subsidiary of the Borrower or an
ERISA Affiliate on or after the Initial Borrowing Date, and each such plan for
the five year period immediately following the latest date (whether before or
after the Initial Borrowing Date) on which the Borrower, a Subsidiary of the
Borrower or an ERISA Affiliate maintained, contributed to or had an obligation
to contribute to such plan.

          "Pledge Agreement" shall have the meaning provided in Section 5.09.

          "Pledge Agreement Collateral" shall mean all "Collateral" as defined
in the Pledge Agreement.

          "Pledgee" shall have the meaning as defined in the Pledge Agreement.

          "Pounds Sterling" shall mean freely transferable lawful money of the
United Kingdom.

          "Prime Lending Rate" shall mean the rate which the Administrative
Agent announces from time to time as its prime lending rate, the Prime Lending
Rate to change when and as such prime lending rate changes.  The Prime Lending
Rate is a reference rate and does not necessarily represent the lowest or best
rate actually charged to any customer by the Administrative Agent, which may
make commercial loans or other loans at rates of interest at, above or below the
Prime Lending Rate.

          "Principal Amount" shall mean (i) the stated amount of each Swingline
Loan, (ii) the stated amount of each Dollar Revolving Loan, and (iii) the Dollar
Equivalent of the stated amount of each Foreign Currency Revolving Loan, as the
context may require.

          "Pro Forma Basis" shall mean, in connection with any calculation of
           --- -----
compliance with any financial covenant or financial term, the calculation
thereof after giving effect on a pro
                                 ---

                                     -116-
<PAGE>

forma basis to (x) the incurrence of any Indebtedness (other than revolving
-----
Indebtedness, except to the extent same is incurred to refinance other
outstanding Indebtedness or to finance a Permitted Acquisition) after the first
day of the relevant Calculation Period as if such Indebtedness had been incurred
(and the proceeds thereof applied) on the first day of the relevant Calculation
Period, (y) the permanent repayment of any Indebtedness (other than revolving
Indebtedness) after the first day of the relevant Calculation Period as if such
Indebtedness had been retired or redeemed on the first day of the relevant
Calculation Period or (z) the Permitted Acquisition, if any, then being
consummated as well as any other Permitted Acquisition consummated after the
first day of the relevant Calculation Period and on or prior to the date of the
respective Permitted Acquisition then being effected, as the case may be, with
the following rules to apply in connection therewith:

          (i)   all Indebtedness (x) (other than revolving Indebtedness, except
     to the extent same is incurred to refinance other outstanding Indebtedness
     or to finance a Permitted Acquisition) incurred or issued after the first
     day of the relevant Calculation Period (whether incurred to finance a
     Permitted Acquisition, to refinance Indebtedness or otherwise) shall be
     deemed to have been incurred or issued (and the proceeds thereof applied)
     on the first day of the respective Calculation Period and remain
     outstanding through the date of determination and (y) (other than revolving
     Indebtedness) permanently retired or redeemed after the first day of the
     relevant Calculation Period shall be deemed to have been retired or
     redeemed on the first day of the respective Calculation Period and remain
     retired through the date of determination;

          (ii)  all Indebtedness assumed to be outstanding pursuant to preceding
     clause (i) shall be deemed to have borne interest at (x) the rate
     applicable thereto, in the case of fixed rate indebtedness or (y) the rates
     which would have been applicable thereto during the respective period when
     same was deemed outstanding, in the case of floating rate Indebtedness
     (although interest expense with respect to any Indebtedness for periods
     while same was actually outstanding during the respective period shall be
     calculated using the actual rates applicable thereto while same was
     actually outstanding); and

          (iii) in making any determination of Consolidated EBITDA, pro forma
                                                                    --- -----
     effect shall be given to any Permitted Acquisition consummated during the
     periods described above, with such Consolidated EBITDA to be determined as
     if such Permitted Acquisition was consummated on the first day of the
     relevant Calculation Period, taking into account factually supportable and
     identifiable cost savings and expenses which would otherwise be permitted
     to be accounted for as an adjustment pursuant to Article 11 of Regulation
     S-X under the Securities Act, as if such cost savings or expenses were
     realized on the first day of the respective Calculation Period.

          "Projections" shall mean the projections contained in the Confidential
Information Memorandum, dated April, 2001, which were prepared by or on behalf
of the Borrower in connection with the Transaction and delivered to the
Administrative Agent and the Lenders prior to the Initial Borrowing Date.

                                     -117-
<PAGE>

          "Put Agreement" shall mean the Put Agreement, dated as of March 4,
2001, by and between the Borrower and the Seller.

          "Qualified Preferred Stock" shall mean any preferred stock of the
Borrower so long as the terms of any such preferred stock (v) do not contain any
mandatory put, redemption, repayment, sinking fund or other similar provision,
(w) do not require the cash payment of dividends or distributions, (x) do not
contain any covenants, (y) do not grant the holders thereof any voting rights
except for (I) voting rights required to be granted to such holders under
applicable law and (II) limited customary voting rights on fundamental matters
such as mergers, consolidations, sales of all or substantially all of the assets
of the Borrower, or liquidations involving the Borrower, and (z) are otherwise
reasonably satisfactory to the Administrative Agent.

          "Quarterly Payment Date" shall mean the last Business Day of each
September, December, March and June occurring after the Initial Borrowing Date,
commencing on June 30, 2001.

          "RCRA" shall mean the Resource Conservation and Recovery Act, as the
same has been and may hereafter be amended from time to time, 42 U.S.C. (S) 6901
et seq.
-- ----

          "Real Property" of any Person shall mean all the right, title and
interest of such Person in and to land, improvements and fixtures, including
Leaseholds.

          "Receivables Indebtedness" shall mean the aggregate amount of
uncollected accounts receivables of the Borrower and its Subsidiaries at such
time which have been (or which are then being) sold to the Factor pursuant to
the Factoring Agreement (regardless of whether any liability of the Borrower or
any Subsidiary thereof in respect of such accounts receivable would be required
to be reflected on a balance sheet of such Person in accordance with generally
accepted accounting principles).

          "Recovery Event" shall mean the receipt by the Borrower or any of its
Subsidiaries of any cash insurance proceeds (other than proceeds from business
interruption insurance) or condemnation awards payable (i) by reason of theft,
loss, physical destruction, damage, taking or any other similar event with
respect to any property or assets of the Borrower or any of its Subsidiaries and
(ii) under any policy of insurance required to be maintained under Section 8.03.

          "Refinancing" shall mean the repayment in full of all of the
Indebtedness to be Refinanced and the termination of all commitments in respect
thereof.

          "Register" shall have the meaning provided in Section 13.15.

          "Regulation D" shall mean Regulation D of the Board of Governors of
the Federal Reserve System as from time to time in effect and any successor to
all or a portion thereof establishing reserve requirements.

                                     -118-
<PAGE>

          "Regulation T" shall mean Regulation T of the Board of Governors of
the Federal Reserve System as from time to time in effect and any successor to
all or a portion thereof.

          "Regulation U" shall mean Regulation U of the Board of Governors of
the Federal Reserve System as from time to time in effect and any successor to
all or a portion thereof.

          "Regulation X" shall mean Regulation X of the Board of Governors of
the Federal Reserve System as from time to time in effect and any successor to
all or a portion thereof.

          "Release" shall mean the active or passive disposing, discharging,
injecting, spilling, pumping, leaking, leaching, dumping, emitting, escaping,
emptying, pouring, seeping, migrating or the like, into or upon any land or
water or air, or otherwise entering into the environment.

          "Relevant Currency Equivalent" shall mean the Dollar Equivalent, the
Euro Equivalent or the Sterling Equivalent, as the case may be.

          "Replaced Indemnifying Lender" shall have the meaning provided in
Section 1.13.

          "Replaced Lender" shall have the meaning provided in Section 1.13.

          "Replacement Indemnifying Lender" shall have the meaning provided in
Section 1.13.

          "Replacement Lender" shall have the meaning provided in Section 1.13.

          "Reportable Event" shall mean an event described in Section 4043(c) of
ERISA with respect to a Plan that is subject to Title IV of ERISA other than
those events as to which the 30-day notice period is waived under subsection
 .22, .23, .25, .27 or .28 of PBGC Regulation Section 4043.

          "Required Lenders" shall mean Non-Defaulting Lenders the sum of whose
outstanding Term Loans and Revolving Loan Commitments (or after the termination
thereof, outstanding Revolving Loans and RL Percentages of (x) outstanding
Swingline Loans and (y) Letter of Credit Outstandings) represent at least 50.1%
of the sum of (i) all outstanding Term Loans of Non-Defaulting Lenders and (ii)
the Total Revolving Loan Commitment less the Revolving Loan Commitments of all
Defaulting Lenders (or after the termination thereof, the sum of then total
outstanding Revolving Loans of Non-Defaulting Lenders and the aggregate RL
Percentages of all Non-Defaulting Lenders of the total (x) outstanding Swingline
Loans and (y) Letter of Credit Outstandings at such time).  After the
termination of the Total Revolving Loan Commitment, the calculation of the
outstanding principal amount of all Foreign Currency Revolving Loans for
purposes of this definition shall be determined by taking the Dollar Equivalent
thereof at the time of any such calculation.

          "Returns" shall have the meaning provided in Section 7.09.

                                     -119-
<PAGE>

          "Revolving Loan" shall have the meaning provided in Section 1.01(d)
(and shall include any Revolving Loans made pursuant to an Incremental Revolving
Loan Commitment).

          "Revolving Loan Commitment" shall mean, for each Lender, the amount
set forth opposite such Lender's name in Schedule I directly below the column
entitled "Revolving Loan Commitment," as same may be (x) reduced from time to
time pursuant to Sections 3.02, 3.03 and/or 10, (y) increased from time to time
pursuant to Section 1.15 or (z) adjusted from time to time as a result of
assignments to or from such Lender pursuant to Section 1.13 or 13.04(b).

          "Revolving Loan Maturity Date" shall mean May 9, 2006.

          "Revolving Note" shall have the meaning provided in Section 1.05(a).

          "RL Lender" shall mean each Lender with a  Revolving Loan Commitment
or with outstanding Revolving Loans.

          "RL Percentage" of any RL Lender at any time shall mean a fraction
(expressed as a percentage) the numerator of which is the Revolving Loan
Commitment of such RL Lender at such time and the denominator of which is the
Total Revolving Loan Commitment at such time, provided that if the RL Percentage
                                              --------
of any RL Lender is to be determined after the Total Revolving Loan Commitment
has been terminated, then the RL Percentages of such RL Lender shall be
determined immediately prior (and without giving effect) to such termination.

          "S&P" shall mean Standard & Poor's Ratings Services, a division of the
McGraw Hill Companies, Inc., and any successor owner of such division.

          "Scheduled A Repayment" shall have the meaning provided in Section
4.02(b).

          "Scheduled B Repayment" shall have the meaning provided in Section
4.02(c).

          "Scheduled Repayment" shall mean a Scheduled A Repayment or a
Scheduled B Repayment.

          "SEC" shall have the meaning provided in Section 8.01(g).

          "Section 4.04(b)(ii) Certificate" shall have the meaning provided in
Section 4.04(b)(ii).

          "Secured Creditors" shall have the meaning assigned that term in the
respective Security Documents.

          "Securities Act" shall mean the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder.

          "Security Agreement" shall have the meaning provided in Section 5.10.

          "Security Agreement Collateral" shall mean all "Collateral" as defined
in the Security Agreement.

                                     -120-
<PAGE>

          "Security Document" shall mean and include each of the Security
Agreement, the Pledge Agreement, each Mortgage and, after the execution and
delivery thereof, each Additional Security Document.

          "Seller" shall mean Legris Industries S.A., a company organized under
the laws of France.

          "Senior Subordinated Notes" shall mean the Borrower's 10-3/8% Senior
Subordinated Notes due 2011, issued pursuant to the Senior Subordinated Note
Indenture, as in effect on the Initial Borrowing Date and as the same may be
amended, modified or supplemented from time to time in accordance with the terms
hereof and thereof.  As used herein, the term "Senior Subordinated Notes" shall
include any Exchange Senior Subordinated Notes issued pursuant to the Senior
Subordinated Note Indenture in exchange for theretofore outstanding Senior
Subordinated Notes, as contemplated by the Offering Memorandum, dated May 4,
2001, and the definition of Exchange Senior Subordinated Notes.

          "Senior Subordinated Note Documents" shall mean the Senior
Subordinated Notes, the Senior Subordinated Note Indenture and all other
documents executed and delivered with respect to the Senior Subordinated Notes
or Senior Subordinated Note Indenture, as in effect on the Initial Borrowing
Date and as the same may be amended, modified or supplemented from time to time
in accordance with the terms hereof and thereof.

          "Senior Subordinated Note Indenture" shall mean the Indenture, dated
as of May 9, 2001, among the Borrower, the Subsidiary Guarantors and the Senior
Subordinated Note Indenture Trustee, as in effect on the Initial Borrowing Date
and as the same may be amended, modified or supplemented from time to time in
accordance with the terms hereof and thereof.

          "Senior Subordinated Note Indenture Trustee" shall mean The Bank of
New York and any successor thereto.

          "Shareholders' Agreements" shall have the meaning provided in Section
5.05.

          "Start Date" shall mean, with respect to any Margin Reduction Period,
the first day of such Margin Reduction Period.

          "Stated Amount" of each Letter of Credit shall mean, at any time, the
maximum amount available to be drawn thereunder (in each case determined without
regard to whether any conditions to drawing could then be met); provided that
                                                                --------
the "Stated Amount" of each Letter of Credit denominated in a Foreign Currency
shall be, on any date of calculation, the Dollar Equivalent of the maximum
amount available to be drawn in the respective currency thereunder (determined
without regard to whether any conditions to drawing could then be met).

          "Sterling Equivalent" shall mean, at any time for the determination
thereof, the amount of Pounds Sterling which could be purchased with the amount
of Dollars involved in such computation at the spot exchange rate therefor as
quoted by the Administrative Agent as of 11:00 A.M. (London time) on the date
two Business Days prior to the date of any determination

                                     -121-
<PAGE>

thereof for purchase on such date (or, in the case of any determination pursuant
to Section 13.17 or Section 25 of the Subsidiaries Guaranty, on the date of
determination).

          "Sterling LIBOR" shall mean, with respect to each Interest Period for
any Foreign Currency Revolving Loan denominated in Pounds Sterling, (i) the rate
per annum that appears on page 3750 of the Dow Jones Telerate Screen for Pounds
--- -----
Sterling deposits with maturities comparable to the Interest Period applicable
to the Foreign Currency Revolving Loans subject to the respective Interest
Period as of 11:00 A.M. (London time) on the date which occurs two Business Days
prior to the date of the proposed commencement of such Interest Period or (ii)
if such a rate does not appear on page 3750 of the Dow Jones Telerate Screen,
the offered quotation to first-class banks in the London interbank market by the
Administrative Agent for Pounds Sterling deposits of amounts in immediately
available funds comparable to the principal amount of the Foreign Currency
Revolving Loan to be made by the Administrative Agent as part of such Borrowing
with maturities comparable to the Interest Period applicable to such Foreign
Currency Revolving Loan as of 11:00 A.M. (London time) on the date which occurs
two Business Days prior to the date of the proposed commencement of such
Interest Period.  The reference to page 3750 of the Dow Jones Telerate Screen in
this definition shall be construed to be a reference to the relevant page or any
other page that may replace such page on the Dow Jones Telerate Screen.
Notwithstanding anything to the contrary contained above, in the event the
Administrative Agent has made any determination pursuant to Section 1.10(a)(i)
in respect of Foreign Currency Revolving Loans denominated in Pounds Sterling,
or in the circumstances described in clause (i) to the proviso to Section
1.10(b) in respect of Foreign Currency Revolving Loans denominated in Pounds
Sterling, Sterling LIBOR determined pursuant to this definition shall instead be
the rate determined by the Administrative Agent as the all-in-cost of funds for
the Administrative Agent to fund such Foreign Currency Revolving Loan with
maturities comparable to the Interest Period applicable thereto.

          "Subsidiaries Guaranty" shall have the meaning provided in Section
5.11.

          "Subsidiary" shall mean, as to any Person, (i) any corporation more
than 50% of whose stock of any class or classes having by the terms thereof
ordinary voting power to elect a majority of the directors of such corporation
(irrespective of whether or not at the time stock of any class or classes of
such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by such Person and/or one or
more Subsidiaries of such Person and (ii) any partnership, limited liability
company, association, joint venture or other entity in which such Person and/or
one or more Subsidiaries of such Person has more than a 50% equity interest at
the time.

          "Subsidiary Guarantor" shall mean each Wholly-Owned Domestic
Subsidiary of the Borrower and, to the extent required by Section 8.13, each
Wholly-Owned Foreign Subsidiary of the Borrower.

          "Supermajority Lenders" shall mean (i) in the case of references to
holders of A Term Loans, those Non-Defaulting Lenders which would constitute the
Required Lenders under, and as defined in, this Agreement if (x) all outstanding
Obligations (other than those with respect to A Term Loans) under this Agreement
were repaid in full and all Commitments with

                                     -122-
<PAGE>

respect to such other Obligations were terminated and (y) the text "at least
50.1%" contained therein were changed to "at least 75%" and (ii) in the case of
references to holders of B Term Loans, those Non-Defaulting Lenders which would
constitute the Required Lenders under, and as defined in, this Agreement if (x)
all outstanding Obligations (other than those relating to B Term Loans) under
this Agreement were repaid in full and all Commitments with respect to such
other Obligations were terminated and (y) the text "at least 50.1%" contained
therein were changed to "at least 75%."

          "Swingline Expiry Date" shall mean that date which is five Business
Days prior to the Revolving Loan Maturity Date.

          "Swingline Lender" shall mean BTCo.

          "Swingline Loan" shall have the meaning provided in Section 1.01(e).

          "Swingline Note" shall have the meaning provided in Section 1.05(a).

          "Syndication Date" shall mean that date upon which the Administrative
Agent determines that the primary syndication (and resultant addition of Persons
as Lenders pursuant to Section 13.04(b)) has been completed (it being understood
that the Administrative Agent shall promptly notify the Borrower of the
occurrence of the Syndication Date).

          "Target" shall mean Potain S.A.

          "Tax Sharing Agreements" shall have the meaning provided in Section
5.05.

          "Taxes" shall have the meaning provided in Section 4.04(a).

          "Term Loans" shall mean the A Term Loans and the B Term Loans.

          "Test Date" shall mean, with respect to any Start Date, the last day
of the most recent fiscal quarter of the Borrower ended immediately prior to
such Start Date.

          "Test Period" shall mean each period of four consecutive fiscal
quarters of the Borrower then last ended (in each case taken as one accounting
period).  Notwithstanding anything to the contrary contained above or in Section
13.07 or otherwise required by United States generally accepted accounting
principles, with respect to any portion of a Test Period occurring prior to the
Initial Borrowing Date, the calculations required to determine compliance with
Sections 8.14, 9.08, 9.09, 9.10, 9.11 and 9.12 and to determine the Applicable
Margin and the Applicable Commitment Commission Percentage shall be made on a

pro forma basis as if the Transaction and the related financing had occurred on
--- -----
July 1, 2000; it being understood that, in such connection, the parties hereto
hereby agree that (A) Consolidated EBITDA, Capital Expenditures, Consolidated
Fixed Charges and Consolidated Interest Expense for (i) the fiscal quarter ended
June 30, 2000 shall be $60,684,000, $7,129,000, $13,693,000 and $11,880,000,
respectively, (ii) the fiscal quarter ended September 30, 2000 shall be
$36,990,000, $3,795,000, $13,728,000 and $11,888,000, respectively, (iii)
December 31, 2000 shall be $38,120,000, $5,942,000, $13,769,000 and $11,888,000,
respectively, and (iv) March 31, 2001 shall be

                                     -123-
<PAGE>

$33,987,000, $6,789,000, $13,671,000 and $11,888,000, respectively, (B)
Consolidated EBITDA, Consolidated Fixed Charges and Consolidated Interest
Expense for the period from April 1, 2001 through and including May 8, 2001
shall be calculated on a basis consistent with that used in arriving at the
amounts related to clause (A) above, and (C) Capital Expenditures for the period
from April 1, 2001 through and including May 8, 2001 shall be the aggregate
amount of actual Capital Expenditures of the Borrower, the Target and their
respective Subsidiaries during such period.

          "Total A Term Loan Commitment" shall mean, at any time, the sum of the
A Term Loan Commitments of each of the Lenders at such time.

          "Total Available Revolving Loan Commitment" shall mean, at any time,
an amount equal to the remainder of (x) the Total Revolving Loan Commitment at
such time less (y) the Blocked Revolving Loan Commitment as in effect at such
          ----
time.

          "Total Commitment" shall mean, at any time, the sum of the Commitments
of each of the Lenders at such time.

          "Total Incremental B Term Loan Commitment" shall mean, at any time,
the sum of the Incremental B Term Loan Commitments of each of the Lenders at
such time.

          "Total Initial B Term Loan Commitment" shall mean, at any time, the
sum of the Initial B Term Loan Commitments of each of the Lenders at such time.

          "Total Revolving Loan Commitment" shall mean, at any time, the sum of
the Revolving Loan Commitments of each of the Lenders at such time.

          "Total Unutilized Revolving Loan Commitment" shall mean, at any time,
an amount equal to the remainder of (x) the Total Revolving Loan Commitment then
in effect less (y) the sum of the aggregate Principal Amount of all Revolving
Loans and Swingline Loans then outstanding plus the aggregate amount of all
Letter of Credit Outstandings.

          "Tranche" shall mean the respective facility and commitments utilized
in making Loans hereunder, with there being four separate Tranches, (i) A Term
Loans, (ii) Initial B Term Loans and Incremental B Term Loans taken together as
a single Tranche (except for purposes of Sections 1.03 and 1.04), (iii)
Revolving Loans and (iv) Swingline Loans.

          "Transaction" shall mean, collectively, (i) the Acquisition, (ii) the
Refinancing, (iii) the entering into of the Credit Documents and the incurrence
of Loans on the Initial Borrowing Date, (iv) the issuance of the Senior
Subordinated Notes and (v) the payment of all fees and expenses in connection
with the foregoing.

          "Triggering Event" shall mean (i) the occurrence and continuation of
any Event of Default under Section 10.01 or 10.05 or (ii) the acceleration of
the maturity of the Obligations as a result of any Event of Default.

                                     -124-
<PAGE>

          "Type" shall mean the type of Loan determined with regard to the
interest option applicable thereto, i.e., whether a Base Rate Loan, a Eurodollar
                                    ----
Loan, a Foreign Currency Revolving Loan denominated in Euros or a Foreign
Currency Revolving Loan denominated in Pounds Sterling.

          "UCC" shall mean the Uniform Commercial Code as from time to time in
effect in the relevant jurisdiction.

          "Unfunded Current Liability" of any Plan shall mean the amount, if
any, by which the value of the accumulated plan benefits under the Plan
determined on a plan termination basis in accordance with actuarial assumptions
at such time consistent with those prescribed by the PBGC for purposes of
Section 4044 of ERISA, exceeds the fair market value of all plan assets
allocable to such liabilities under Title IV of ERISA (excluding any accrued but
unpaid contribution).

          "United States" and "U.S." shall each mean the United States of
America.

          "Unpaid Drawing" shall have the meaning provided for in Section
2.05(a).

          "Unutilized Revolving Loan Commitment" shall mean, with respect to any
Lender at any time, such Lender's Revolving Loan Commitment at such time less
the sum of (i) the aggregate outstanding Principal Amount of all Revolving Loans
made by such Lender at such time and (ii) such Lender's RL Percentage of the
Letter of Credit Outstandings at such time.

          "Waivable Mandatory Repayment" shall have the meaning provided in
Section 4.02(k).

          "Waivable Voluntary Prepayment" shall have the meaning provided in
Section 4.01(c).

          "Wholly-Owned Domestic Subsidiary" shall mean each Domestic Subsidiary
of the Borrower that is also a Wholly-Owned Subsidiary of the Borrower.

          "Wholly-Owned Foreign Subsidiary" shall mean each Foreign Subsidiary
of the Borrower that is also a Wholly-Owned Subsidiary of the Borrower.

          "Wholly-Owned Subsidiary" shall mean, as to any Person, (i) any
corporation 100% of whose capital stock is at the time owned by such Person
and/or one or more Wholly-Owned Subsidiaries of such Person and (ii) any
partnership, limited liability company, association, joint venture or other
entity in which such Person and/or one or more Wholly-Owned Subsidiaries of such
Person has a 100% equity interest at such time (other than, in the case of a
Foreign Subsidiary with respect to preceding clauses (i) and (ii), director's
qualifying shares and/or other nominal amount of shares required to be held by
Persons other than the Borrower and its Subsidiaries under applicable law).

                                     -125-
<PAGE>

         SECTION 12.  Administrative Agent.
                      --------------------

          12.01  Appointment.  The Lenders hereby irrevocably designate and
                 -----------
appoint BTCo as Administrative Agent (for purposes of this Section 12 and
Section 13.01, the term "Administrative Agent" also shall include BTCo in its
capacity as Collateral Agent pursuant to the Security Documents) to act as
specified herein and in the other Credit Documents.  Each Lender hereby
irrevocably authorizes, and each holder of any Note by the acceptance of such
Note shall be deemed irrevocably to authorize, the Administrative Agent to take
such action on its behalf under the provisions of this Agreement, the other
Credit Documents and any other instruments and agreements referred to herein or
therein and to exercise such powers and to perform such duties hereunder and
thereunder as are specifically delegated to or required of the Administrative
Agent by the terms hereof and thereof and such other powers as are reasonably
incidental thereto.  The Administrative Agent may perform any of their
respective duties hereunder by or through its officers, directors, agents,
employees or affiliates.

          12.02  Nature of Duties.  The Administrative Agent shall not have any
                 ----------------
duties or responsibilities except those expressly set forth in this Agreement
and in the other Credit Documents.  Neither the Administrative Agent nor any of
its officers, directors, agents, employees or affiliates shall be liable for any
action taken or omitted by them hereunder or under any other Credit Document or
in connection herewith or therewith, unless caused by its or their gross
negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).  The duties of the
Administrative Agent shall be mechanical and administrative in nature; the
Administrative Agent shall not have by reason of this Agreement or any other
Credit Document a fiduciary relationship in respect of any Lender or the holder
of any Note; and nothing in this Agreement or in any other Credit Document,
expressed or implied, is intended to or shall be so construed as to impose upon
the Administrative Agent any obligations in respect of this Agreement or any
other Credit Document except as expressly set forth herein or therein.

          12.03  Lack of Reliance on the Administrative Agent.  Independently
                 --------------------------------------------
and without reliance upon the Administrative Agent, each Lender and the holder
of each Note, to the extent it deems appropriate, has made and shall continue to
make (i) its own independent investigation of the financial condition and
affairs of the Borrower and its Subsidiaries in connection with the making and
the continuance of the Loans and the taking or not taking of any action in
connection herewith and (ii) its own appraisal of the creditworthiness of the
Borrower and its Subsidiaries and, except as expressly provided in this
Agreement, the Administrative Agent shall not have any duty or responsibility,
either initially or on a continuing basis, to provide any Lender or the holder
of any Note with any credit or other information with respect thereto, whether
coming into its possession before the making of the Loans or at any time or
times thereafter.  The Administrative Agent shall not be responsible to any
Lender or the holder of any Note for any recitals, statements, information,
representations or warranties herein or in any document, certificate or other
writing delivered in connection herewith or for the execution, effectiveness,
genuineness, validity, enforceability, perfection, collectibility, priority or
sufficiency of this Agreement or any other Credit Document or the financial
condition of the Borrower or any of its Subsidiaries or be required to make any
inquiry concerning either the performance or observance of any of the terms,
provisions or conditions of this Agreement or any other Credit Document, or

                                     -126-
<PAGE>

the financial condition of the Borrower or any of its Subsidiaries or the
existence or possible existence of any Default or Event of Default.

          12.04  Certain Rights of the Administrative Agent.  If the
                 ------------------------------------------
Administrative Agent requests instructions from the Required Lenders with
respect to any act or action (including failure to act) in connection with this
Agreement or any other Credit Document, the Administrative Agent shall be
entitled to refrain from such act or taking such action unless and until the
Administrative Agent shall have received instructions from the Required Lenders;
and the Administrative Agent shall not incur liability to any Lender by reason
of so refraining.  Without limiting the foregoing, neither any Lender nor the
holder of any Note shall have any right of action whatsoever against the
Administrative Agent as a result of the Administrative Agent acting or
refraining from acting hereunder or under any other Credit Document in
accordance with the instructions of the Required Lenders.

          12.05  Reliance.  The Administrative Agent shall be entitled to rely,
                 --------
and shall be fully protected in relying, upon any note, writing, resolution,
notice, statement, certificate, telex, teletype or telecopier message,
cablegram, radiogram, order or other document or telephone message signed, sent
or made by any Person that the Administrative Agent believed to be the proper
Person, and, with respect to all legal matters pertaining to this Agreement and
any other Credit Document and its duties hereunder and thereunder, upon advice
of counsel selected by the Administrative Agent.

          12.06  Indemnification.  To the extent the Administrative Agent (or
                 ---------------
any affiliate thereof) is not reimbursed and indemnified by the Borrower, the
Lenders will reimburse and indemnify the Administrative Agent (and any affiliate
thereof) in proportion to their respective "percentage" as used in determining
the Required Lenders (determined as if there were no Defaulting Lenders) for and
against any and all liabilities, obligations, losses, damages, penalties,
claims, actions, judgments, costs, expenses or disbursements of whatsoever kind
or nature which may be imposed on, asserted against or incurred by the
Administrative Agent (or any affiliate thereof) in performing its duties
hereunder or under any other Credit Document or in any way relating to or
arising out of this Agreement or any other Credit Document; provided that no
                                                            --------
Lender shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, claims, actions, judgments, suits, costs, expenses or
disbursements resulting from the Administrative Agent's (or such affiliate's)
gross negligence or willful misconduct (as determined by a court of competent
jurisdiction in a final and non-appealable decision).

          12.07  The Administrative Agent in its Individual Capacity.  With
                 ---------------------------------------------------
respect to its obligation to make Loans, or issue or participate in Letters of
Credit, under this Agreement, the Administrative Agent shall have the rights and
powers specified herein for a "Lender" and may exercise the same rights and
powers as though it were not performing the duties specified herein; and the
term "Lender," "Required Lenders," "Majority Lenders," "Supermajority Lenders,"
"holders of Notes" or any similar terms shall, unless the context clearly
otherwise indicates, include the Administrative Agent in its respective
individual capacities.  The Administrative Agent and its affiliates may accept
deposits from, lend money to, and generally engage in any kind of banking,
investment banking, trust or other business with, or provide debt financing,
equity capital or other services (including financial advisory services) to any
Credit Party or any

                                     -127-
<PAGE>

Affiliate of any Credit Party (or any Person engaged in a similar business with
any Credit Party or any Affiliate thereof) as if they were not performing the
duties specified herein, and may accept fees and other consideration from any
Credit Party or any Affiliate of any Credit Party for services in connection
with this Agreement and otherwise without having to account for the same to the
Lenders.

          12.08  Holders.  The Administrative Agent may deem and treat the payee
                 -------
of any Note as the owner thereof for all purposes hereof unless and until a
written notice of the assignment, transfer or endorsement thereof, as the case
may be, shall have been filed with the Administrative Agent.  Any request,
authority or consent of any Person who, at the time of making such request or
giving such authority or consent, is the holder of any Note shall be conclusive
and binding on any subsequent holder, transferee, assignee or endorsee, as the
case may be, of such Note or of any Note or Notes issued in exchange therefor.

          12.09  Resignation by the Administrative Agent.  (a)  The
                 ---------------------------------------
Administrative Agent may resign from the performance of all its respective
functions and duties hereunder and/or under the other Credit Documents at any
time by giving 30 Business Days' prior written notice to the Lenders and, unless
a Default or an Event of Default under Section 10.05 then exists, the Borrower.
Such resignation shall take effect upon the appointment of a successor
Administrative Agent pursuant to clauses (b) and (c) below or as otherwise
provided below.

          (b) Upon any such notice of resignation by the Administrative Agent,
the Required Lenders shall appoint a successor Administrative Agent hereunder or
thereunder who shall be a commercial bank or trust company reasonably acceptable
to the Borrower, which acceptance shall not be unreasonably withheld or delayed
(provided that the Borrower's approval shall not be required if an Event of
Default then exists).

          (c) If a successor Administrative Agent shall not have been so
appointed within such 30 Business Day period, the Administrative Agent, with the
consent of the Borrower (which consent shall not be unreasonably withheld or
delayed, provided that the Borrower's consent shall not be required if an Event
of Default then exists), shall then appoint a successor Administrative Agent who
shall serve as Administrative Agent hereunder or thereunder until such time, if
any, as the Required Lenders appoint a successor Administrative Agent as
provided above.

          (d) If no successor Administrative Agent has been appointed pursuant
to clause (b) or (c) above by the 35th Business Day after the date such notice
of resignation was given by the Administrative Agent, the Administrative Agent's
resignation shall become effective and the Required Lenders shall thereafter
perform all the duties of the Administrative Agent hereunder and/or under any
other Credit Document until such time, if any, as the Required Lenders appoint a
successor Administrative Agent as provided above.

          (e) Upon a resignation of the Administrative Agent pursuant to this
Section 12.09, such Administrative Agent shall remain indemnified to the extent
provided in this Agreement and the other Credit Documents and the provisions of
this Section 12 shall continue

                                     -128-
<PAGE>

in effect for the benefit of the Administrative Agent for all of its actions and
inactions while serving as the Administrative Agent.

          SECTION 13.  Miscellaneous.
                       -------------

          13.01  Payment of Expenses, etc.   The Borrower hereby agrees to:  (i)
                 -------------------------
whether or not the transactions herein contemplated are consummated, pay all
reasonable out-of-pocket costs and expenses of the Administrative Agent
(including, without limitation, the reasonable fees and disbursements of White &
Case LLP and the Administrative Agent's other counsel and consultants) in
connection with the preparation, execution and delivery of this Agreement and
the other Credit Documents and the documents and instruments referred to herein
and therein and any amendment, waiver or consent relating hereto or thereto, of
the Administrative Agent in connection with its syndication efforts with respect
to this Agreement and of each Agent and, after the occurrence and during the
continuance of an Event of Default, each of the Lenders in connection with the
enforcement of this Agreement and the other Credit Documents and the documents
and instruments referred to herein and therein or in connection with any
refinancing or restructuring of the credit arrangements provided under this
Agreement in the nature of a "work-out" or pursuant to any insolvency or
bankruptcy proceedings (including, in each case without limitation, the
reasonable fees and disbursements of counsel and consultants for the
Administrative Agent and, after the occurrence of an Event of Default, counsel
for each of the Lenders); (ii) pay and hold the Administrative Agent and each of
the Lenders harmless from and against any and all present and future stamp,
excise and other similar documentary taxes with respect to the foregoing matters
and save the Administrative Agent and each of the Lenders harmless from and
against any and all liabilities with respect to or resulting from any delay or
omission (other than to the extent attributable to the Administrative Agent or
such Lender) to pay such taxes; and (iii) indemnify the Administrative Agent and
each Lender, and each of their respective officers, directors, employees,
representatives, agents, affiliates, trustees and investment advisors from and
hold each of them harmless against any and all liabilities, obligations
(including removal or remedial actions), losses, damages, penalties, claims,
actions, judgments, suits, costs, expenses and disbursements (including
reasonable attorneys' and consultants' fees and disbursements) incurred by,
imposed on or assessed against any of them as a result of, or arising out of, or
in any way related to, or by reason of, (a) any investigation, litigation or
other proceeding (whether or not the Administrative Agent or any Lender is a
party thereto and whether or not such investigation, litigation or other
proceeding is brought by or on behalf of any Credit Party) related to the
entering into and/or performance of this Agreement or any other Credit Document
or the use of any Letter of Credit or the proceeds of any Loans hereunder or the
consummation of the Transaction or any other transactions contemplated herein or
in any other Credit Document or the exercise of any of their rights or remedies
provided herein or in the other Credit Documents, provided that the indemnity
                                                  --------
described above in this clause (iii)(a) shall not apply to any liabilities,
obligations, losses, damages, penalties, claims, actions, judgments, suits,
costs, expenses and disbursements incurred by, imposed on or assessed as a
result of, or arising out of, or in any way related to, or by reason of any
litigation, proceeding or other action solely between or among the Lenders
(excluding, however, any liabilities, obligations, losses, damages, penalties,
claims, actions, judgments, suits, costs, expenses and disbursements incurred
by, imposed on or assessed against the Administrative Agent, the Collateral
Agent or any of their respective officers, directors, employees,
representatives, agents,

                                     -129-
<PAGE>

affiliates, trustees and advisors as a result of, or arising out of, or in any
way related to, or by reason of any such litigation, proceeding or action to
which the Administrative Agent or the Collateral Agent is a party in its
capacity as such) to the extent (and only to the extent) that such litigation,
proceeding or other action does not relate to, or arise from, any action or
omission by the Borrower or any of its Subsidiaries, or (b) the actual or
alleged presence of Hazardous Materials in the air, surface water or groundwater
or on the surface or subsurface of any Real Property at any time owned, leased
or operated by the Borrower or any of its Subsidiaries, the generation, storage,
transportation, handling or disposal of Hazardous Materials by the Borrower or
any of its Subsidiaries at any location, whether or not owned, leased or
operated by the Borrower or any of its Subsidiaries, the non-compliance by the
Borrower or any of its Subsidiaries with any Environmental Law (including
applicable permits thereunder) applicable to any Real Property, or any
Environmental Claim asserted against the Borrower, any of its Subsidiaries or
any Real Property at any time owned, leased or operated by the Borrower or any
of its Subsidiaries, including, in each case, without limitation, the reasonable
fees and disbursements of counsel and other consultants incurred in connection
with any such investigation, litigation or other proceeding (but excluding any
losses, liabilities, claims, damages or expenses to the extent incurred by
reason of the gross negligence or willful misconduct of the Person to be
indemnified (as determined by a court of competent jurisdiction in a final and
non-appealable decision)). To the extent that the undertaking to indemnify, pay
or hold harmless the Administrative Agent or any Lender set forth in the
preceding sentence may be unenforceable because it is violative of any law or
public policy, the Borrower shall make the maximum contribution to the payment
and satisfaction of each of the indemnified liabilities which is permissible
under applicable law.

          13.02  Right of Setoff.  (a) In addition to any rights now or
                 ---------------
hereafter granted under applicable law or otherwise, and not by way of
limitation of any such rights, upon the occurrence and during the continuance of
an Event of Default, the Administrative Agent and each Lender is hereby
authorized at any time or from time to time, without presentment, demand,
protest or other notice of any kind to any Credit Party or to any other Person,
any such notice being hereby expressly waived, to set off and to appropriate and
apply any and all deposits (general or special) and any other Indebtedness at
any time held or owing by the Administrative Agent or such Lender (including,
without limitation, by branches and agencies of such Lender wherever located) to
or for the credit or the account of any Credit Party against and on account of
the Obligations and liabilities of the Credit Parties to the Administrative
Agent or such Lender under this Agreement or under any of the other Credit
Documents, including, without limitation, all interests in Obligations purchased
by such Lender pursuant to Section 13.06(b), and all other claims of any nature
or description arising out of or connected with this Agreement or any other
Credit Document, irrespective of whether or not such Lender shall have made any
demand hereunder and although said Obligations, liabilities or claims, or any of
them, shall be contingent or unmatured.  Each Lender agrees to promptly notify
the relevant Credit Party and the Administrative Agent after any such set off
and application made by such Lender; provided that the failure to give such
notice shall not affect or impair the validity of any such set off and
application or result in any liability for such Lender.

          (b)  NOTWITHSTANDING CLAUSE (a) OF THIS SECTION 13.02, AT ANY TIME
THAT THE OBLIGATIONS SHALL BE SECURED BY REAL PROPERTY LOCATED

                                     -130-
<PAGE>

IN CALIFORNIA, NO LENDER SHALL EXERCISE A RIGHT OF SETOFF, LIEN OR COUNTERCLAIM
OR TAKE ANY COURT OR ADMINISTRATIVE ACTION OR INSTITUTE ANY PROCEEDING TO
ENFORCE ANY PROVISION OF THIS AGREEMENT OR ANY NOTE UNLESS IT IS TAKEN WITH THE
CONSENT OF THE REQUIRED LENDERS, OR APPROVED IN WRITING BY THE ADMINISTRATIVE
AGENT, IF SUCH SETOFF OR ACTION OR PROCEEDING WOULD OR MIGHT (PURSUANT TO
CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 580a, 580b, 580d AND 726 OF THE
CALIFORNIA CODE OF CIVIL PROCEDURE OR SECTION 2924 OF THE CALIFORNIA CIVIL CODE,
IF APPLICABLE, OR OTHERWISE) AFFECT OR IMPAIR THE VALIDITY, PRIORITY OR
ENFORCEABILITY OF THE LIENS GRANTED TO THE COLLATERAL AGENT PURSUANT TO THE
SECURITY DOCUMENTS OR THE ENFORCEABILITY OF THE NOTES AND OTHER OBLIGATIONS
HEREUNDER, AND ANY ATTEMPTED EXERCISE BY ANY LENDER OF ANY SUCH RIGHT WITHOUT
OBTAINING SUCH CONSENT SHALL BE NULL AND VOID. THIS CLAUSE (b) SHALL BE SOLELY
FOR THE BENEFIT OF EACH OF THE LENDERS AND THE ADMINISTRATIVE AGENT HEREUNDER.

          13.03  Notices.  Except as otherwise expressly provided herein, all
                 -------
notices and other communications provided for hereunder shall be in writing
(including telegraphic, telex, telecopier or cable communication) and mailed,
telegraphed, telexed, telecopied, cabled or delivered:  if to any Credit Party,
at the address specified opposite its signature below or in the other relevant
Credit Documents; if to any Lender, at its address specified on Schedule II; and
if to the Administrative Agent, at the Notice Office; or, as to any Credit Party
or the Administrative Agent, at such other address as shall be designated by
such party in a written notice to the other parties hereto and, as to each
Lender, at such other address as shall be designated by such Lender in a written
notice to the Borrower and the Administrative Agent.  All such notices and
communications shall, when mailed, telegraphed, telexed, telecopied, or cabled
or sent by overnight courier, be effective when deposited in the mails,
delivered to the telegraph company, cable company or overnight courier, as the
case may be, or sent by telex or telecopier, except that notices and
communications to the Administrative Agent and the Borrower shall not be
effective until received by the Administrative Agent or the Borrower, as the
case may be.

          13.04  Benefit of Agreement; Assignments; Participations.  (a)  This
                 -------------------------------------------------
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective successors and assigns of the parties hereto; provided,
                                                                --------
however, the Borrower may not assign or transfer any of its rights, obligations
-------
or interest hereunder without the prior written consent of the Lenders and,

provided further, that (x) although any Lender (including the Fronting Lender)
----------------
may transfer, assign or grant participations in its rights hereunder, such
Lender shall remain a "Lender" for all purposes hereunder (and may not transfer
or assign all or any portion of its Commitments hereunder except as provided in
Sections 1.13 and 13.04(b)) and the transferee, assignee or participant, as the
case may be, shall not constitute a "Lender" hereunder, (y) no Indemnity
Participation may be assigned except as otherwise expressly provided in Sections
1.17 and 13.04(c) and (z) except as otherwise expressly provided in Section 1.17
in the case of Indemnity Participations, no Lender shall transfer or grant any
participation under which the participant shall have rights to approve any
amendment to or waiver of this Agreement or any other Credit Document except to
the extent such amendment or waiver would (i) extend the final scheduled

                                     -131-
<PAGE>

maturity of any Loan, Note or Letter of Credit (unless such Letter of Credit is
not extended beyond the Revolving Loan Maturity Date) in which such participant
is participating, or reduce the rate or extend the time of payment of interest
or Fees thereon (except in connection with a waiver of applicability of any
post-default increase in interest rates) or reduce the principal amount thereof
(it being understood that any amendment or modification to the financial
definitions in this Agreement or to Section 13.07(a) shall not constitute a
reduction in the rate of interest or Fees payable hereunder), or increase the
amount of the participant's participation over the amount thereof then in effect
(it being understood that a waiver of any Default or Event of Default or of a
mandatory reduction in the Total Commitment shall not constitute a change in the
terms of such participation, and that an increase in any Commitment (or the
available portion thereof) or Loan shall be permitted without the consent of any
participant if the participant's participation is not increased as a result
thereof), (ii) consent to the assignment or transfer by the Borrower of any of
its rights and obligations under this Agreement or (iii) release all or
substantially all of the Collateral under all of the Security Documents (except
as expressly provided in the Credit Documents) supporting the Loans or Letters
of Credit hereunder in which such participant is participating.  In the case of
any such participation (other than an Indemnity Participation which shall be
governed by the provisions of Sections 1.17 and 13.04(c)), the participant shall
not have any rights under this Agreement or any of the other Credit Documents
(the participant's rights against such Lender in respect of such participation
to be those set forth in the agreement executed by such Lender in favor of the
participant relating thereto) and all amounts payable by the Borrower hereunder
shall be determined as if such Lender had not sold such participation.

          (b) Notwithstanding the foregoing, any Lender (or any Lender together
with one or more other Lenders) may (x) assign all or a portion of its
Commitments and related outstanding Obligations (or, if the Commitments with
respect to the relevant Tranche have terminated, outstanding Obligations)
hereunder to (i)(A) its parent company and/or any affiliate of such Lender which
is at least 50% owned by such Lender or its parent company or (B) to one or more
other Lenders or any affiliate of any such other Lender which is at least 50%
owned by such other Lender or its parent company (provided that any fund that
                                                  --------
invests in loans and is managed or advised by the same investment advisor of
another fund which is a Lender (or by an Affiliate of such investment advisor)
shall be treated as an affiliate of such other Lender for the purposes of this
sub-clause (x)(i)(B)), or (ii) in the case of any Lender that is a fund that
invests in loans, any other fund that invests in loans and is managed or advised
by the same investment advisor of such Lender or by an Affiliate of such
investment advisor or (y) assign all, or if less than all, a portion equal to at
least $1,000,000 (or such lesser amount as may be agreed to by the
Administrative Agent and the Borrower in any given case) in the aggregate for
the assigning Lender or assigning Lenders, of such Commitments and related
outstanding Obligations (or, if the Commitments with respect to the relevant
Tranche have terminated, outstanding Obligations) hereunder to one or more
Eligible Transferees, each of which assignees shall become a party to this
Agreement as a Lender by execution of an Assignment and Assumption Agreement,
provided that, notwithstanding the foregoing, in connection with any assignment
--------
to an Eligible Transferee pursuant to sub-clause (y) above by any Lender which
acquired Commitments and/or related Obligations in an amount less than
$1,000,000 in reliance on the proviso to sub-clause (x)(i)(B) or (x)(ii) above,
such Lender shall (together with its affiliates and/or any other Lender

                                     -132-
<PAGE>

that is a fund that invests in loans and is managed or advised by the same
investment advisor as such Lender (or by an Affiliate of such investment
advisor)) assign a portion equal to at least $1,000,000 in the aggregate for
such assigning Lender or assigning Lenders, of such Commitments and related
outstanding Obligations (or, if the Commitments with respect to the relevant
Tranche have terminated, outstanding Obligations) hereunder to such Eligible
Transferee if (but only if) the aggregate amount of Commitments and Term Loans
held by such Lender (and its affiliates and any other Lender that is a fund that
invests in loans and is managed or advised by the same investment advisor as
such Lender (or by an Affiliate of such investment advisor)) equals or exceeds
$1,000,000 at such time; provided further, that, (i) at such time Schedule I
                         -------- -------
shall be deemed modified to reflect the Commitments and/or outstanding Loans, as
the case may be, of such new Lender and of the existing Lenders, (ii) upon the
surrender of the relevant Notes by the assigning Lender (or, upon such assigning
Lender's indemnifying the Borrower for any lost Note pursuant to a customary
indemnification agreement) new Notes will be issued, at the Borrower's expense,
to such new Lender and to the assigning Lender upon the request of such new
Lender or assigning Lender, such new Notes to be in conformity with the
requirements of Section 1.05 (with appropriate modifications) to the extent
needed to reflect the revised Commitments and/or outstanding Loans, as the case
may be, (iii) the consent of the Administrative Agent and, so long as no Default
or Event of Default then exists, the consent of the Borrower shall (in either
case) be required in connection with any such assignment pursuant to clause (y)
above (other than any such assignment by the Administrative Agent or any of its
Affiliates prior to the Syndication Date) (each of which consents shall not be
unreasonably withheld or delayed), (iv) the Administrative Agent shall receive
at the time of each such assignment, from the assigning or assignee Lender, the
payment of a non-refundable assignment fee of $3,500 and (v) no such transfer or
assignment will be effective until recorded by the Administrative Agent on the
Register pursuant to Section 13.15. To the extent of any assignment pursuant to
this Section 13.04(b), the assigning Lender shall be relieved of its obligations
hereunder with respect to its assigned Commitments and outstanding Loans. At the
time of each assignment pursuant to this Section 13.04(b) to a Person which is
not already a Lender hereunder and which is not a United States person (as such
term is defined in Section 7701(a)(30) of the Code) for Federal income tax
purposes, the respective assignee Lender shall, to the extent legally entitled
to do so, provide to the Borrower the appropriate Internal Revenue Service Forms
(and, if applicable, a Section 4.04(b)(ii) Certificate) described in Section
4.04(b). To the extent that an assignment of all or any portion of a Lender's
Commitments and related outstanding Obligations pursuant to Section 1.13 or this
Section 13.04(b) would, at the time of such assignment, result in increased
costs under Section 1.10, 2.06 or 4.04 from those being charged by the
respective assigning Lender prior to such assignment, then the Borrower shall
not be obligated to pay such increased costs (although the Borrower, in
accordance with and pursuant to the other provisions of this Agreement, shall be
obligated to pay any other increased costs of the type described above resulting
from changes after the date of the respective assignment).

          (c) Notwithstanding the foregoing, any Indemnifying Lender (or any
Indemnifying Lender together with one or more other Indemnifying Lenders) may
(x) assign all or a portion of its Indemnity Participation (and related
Indemnity Amount) to (i)(A) its parent company and/or any affiliate of such
Indemnifying Lender which is at least 50% owned by such Indemnifying Lender or
its parent company or (B) to one or more other Indemnifying Lenders or

                                     -133-
<PAGE>

any affiliate of any such other Indemnifying Lender which is at least 50% owned
by such other Indemnifying Lender or its parent company (provided that any fund
                                                         --------
that invests in loans and is managed or advised by the same investment advisor
of another fund which is an Indemnifying Lender (or by an Affiliate of such
investment advisor) shall be treated as an affiliate of such other Indemnifying
Lender for the purposes of this sub-clause (x)(i)(B)), or (ii) in the case of
any Indemnifying Lender that is a fund that invests in loans, any other fund
that invests in loans and is managed or advised by the same investment advisor
of such Indemnifying Lender or by an Affiliate of such investment advisor or (y)
assign all, or if less than all, a portion equal to at least $1,000,000 in the
aggregate for the assigning Indemnifying Lender or assigning Indemnifying
Lenders, of such Indemnity Participation (and related Indemnity Amount) to one
or more Eligible Transferees, each of which assignees shall become a party to
this Agreement as an Indemnifying Lender by execution of an Assignment and
Assumption Agreement; provided that, notwithstanding the foregoing, in
                      --------
connection with any assignment to an Eligible Transferee pursuant to sub-clause
(y) above by any Indemnifying Lender which acquired an Indemnity Participation
(and/or related Indemnity Amount) in an amount less than $1,000,000 in reliance
on the proviso to sub-clause (x)(i)(B) or (x)(ii) above, such Indemnifying
Lender shall (together with its affiliates and/or any other Indemnifying Lender
that is a fund that invests in loans and is managed or advised by the same
investment advisor as such Indemnifying Lender (or by an Affiliate of such
investment advisor)) assign a portion equal to at least $1,000,000 in the
aggregate for such assigning Indemnifying Lender or assigning Indemnifying
Lenders, of such Indemnity Participations (and related Indemnity Amounts) to
such Eligible Transferee if (but only if) the aggregate amount of Indemnity
Participations (and/or (without duplication) related Indemnity Amounts) held by
such Indemnifying Lender (and its affiliates and any other Indemnifying Lender
that is a fund that invests in loans and is managed or advised by the same
investment advisor as such Indemnifying Lender (or by an Affiliate of such
investment advisor)) equals or exceeds $1,000,000 at such time; provided
                                                                --------
further, that, (i) at such time Schedule I shall be deemed modified to reflect
-------
the Indemnity Participation (and related Indemnity Amount) of such new
Indemnifying Lender and of the existing Indemnifying Lenders, (ii) the consent
of the Administrative Agent and the Fronting Lender and, so long as no Default
or Event of Default then exists, the consent of the Borrower shall (in either
case) be required in connection with any such assignment pursuant to clause (y)
above (each of which consents shall not be unreasonably withheld or delayed),
(iv) the Administrative Agent shall receive at the time of each such assignment,
from the assigning or assignee Indemnifying Lender, the payment of a non-
refundable assignment fee of $3,500 and (v) no such transfer or assignment will
be effective until recorded by the Administrative Agent on the Register pursuant
to Section 13.15.  To the extent of any assignment pursuant to this Section
13.04(c), the assigning Indemnifying Lender shall be relieved of its obligations
hereunder with respect to its assigned Indemnity Participation (and Indemnity
Amount).  At the time of each assignment pursuant to this Section 13.04(c) to a
Person which is not already a Lender or an Indemnifying Lender hereunder and
which is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) for Federal income tax purposes, the respective
assignee Indemnifying Lender shall, to the extent legally entitled to do so,
provide to the Borrower and the Fronting Lender the appropriate Internal Revenue
Service Forms (and, if applicable, a Section 4.04(b)(ii) Certificate) described
in Section 4.04(b).  To the extent that an assignment of all or any portion of
an Indemnifying Lender's Indemnity Participation (and related Indemnity Amount)
pursuant to Section 1.13 or this Section

                                     -134-
<PAGE>

13.04(c) would, at the time of such assignment, result in increased costs under
Section 4.04 from those being charged by the respective assigning Indemnifying
Lender prior to such assignment, then neither the Borrower nor the Fronting
Lender shall be obligated to pay such increased costs (although the Borrower, in
accordance with and pursuant to the other provisions of this Agreement, shall be
obligated to pay to the Fronting Lender (acting for any Indemnifying Lender) any
other increased costs of the type described above resulting from changes after
the date of the respective assignment).

          (d) Nothing in this Agreement shall prevent or prohibit any Lender
from pledging its Loans and Notes hereunder to a Federal Reserve Bank in support
of borrowings made by such Lender from such Federal Reserve Bank and any Lender
which is a fund may, without the consent of the Administrative Agent or the
Borrower, pledge all or any portion of its Loans and Notes to its trustee or to
a collateral agent providing credit or credit support to such Lender in support
of its obligations to its trustee or such collateral agent, as the case may be.
No pledge pursuant to this clause (d) shall release the transferor Lender from
any of its obligations hereunder.

          13.05  No Waiver; Remedies Cumulative.  No failure or delay on the
                 ------------------------------
part of the Administrative Agent, the Collateral Agent, the Issuing Lender or
any Lender in exercising any right, power or privilege hereunder or under any
other Credit Document and no course of dealing between the Borrower or any other
Credit Party and the Administrative Agent, the Collateral Agent, the Issuing
Lender or any Lender shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power or privilege hereunder or under any other
Credit Document preclude any other or further exercise thereof or the exercise
of any other right, power or privilege hereunder or thereunder.  The rights,
powers and remedies herein or in any other Credit Document expressly provided
are cumulative and not exclusive of any rights, powers or remedies which the
Administrative Agent, the Collateral Agent, the Issuing Lender or any Lender
would otherwise have.  No notice to or demand on any Credit Party in any case
shall entitle any Credit Party to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the
Administrative Agent, the Collateral Agent, the Issuing Lender or any Lender to
any other or further action in any circumstances without notice or demand.

          13.06  Payments Pro Rata.  (a)  Except as otherwise provided in this
                 -----------------
Agreement, the Administrative Agent agrees that promptly after its receipt of
each payment from or on behalf of the Borrower in respect of any Obligations
hereunder, the Administrative Agent shall distribute such payment to the Lenders
(other than any Lender that has consented in writing to waive its pro rata share
                                                                  --- ----
of any such payment) pro rata based upon their respective shares, if any, of the
                     --- ----
Obligations with respect to which such payment was received.

          (b) Each of the Lenders agrees that, if it should receive any amount
hereunder (whether by voluntary payment, by realization upon security, by the
exercise of the right of setoff or banker's lien, by counterclaim or cross
action, by the enforcement of any right under the Credit Documents, or
otherwise), which is applicable to the payment of the principal of, or interest
on, the Loans, Unpaid Drawings, Commitment Commission or Letter of Credit Fees,
of a sum which with respect to the related sum or sums received by other Lenders
is in a greater proportion than the total of such Obligation then owed and due
to such Lender bears to the total

                                     -135-
<PAGE>

of such Obligation then owed and due to such Lender bears to the total of such
Obligation then owed and due to all of the Lenders immediately prior to such
receipt, then such Lender receiving such excess payment shall purchase for cash
without recourse or warranty from the other Lenders an interest in the
Obligations of the respective Credit Party to such Lenders in such amount as
shall result in a proportional participation by all the Lenders in such amount;
provided that if all or any portion of such excess amount is thereafter
--------
recovered from such Lenders, such purchase shall be rescinded and the purchase
price restored to the extent of such recovery, but without interest.

          (c)  Notwithstanding anything to the contrary contained herein, the
provisions of the preceding Sections 13.06(a) and (b) shall be subject to the
express provisions of this Agreement which require, or permit, differing
payments to be made to Non-Defaulting Lenders as opposed to Defaulting Lenders.

          13.07  Calculations; Computations.  (a)  The financial statements to
                 --------------------------
be furnished to the Lenders pursuant hereto shall be made and prepared in
accordance with generally accepted accounting principles in the United States
consistently applied throughout the periods involved (except as set forth in the
notes thereto or as otherwise disclosed in writing by the Borrower to the
Lenders); provided that, (i) except as otherwise specifically provided herein,
          --------
all computations of Excess Cash Flow, the Applicable Margin and the Applicable
Commitment Commission Percentage, and all computations and all definitions
(including accounting terms) used in determining compliance with Sections 9.07
through 9.12, inclusive, shall utilize generally accepted accounting principles
and policies in conformity with those used to prepare the historical financial
statements of the Borrower referred to in Section 7.05(a), (ii) to the extent
expressly provided herein, certain calculations shall be made on a Pro Forma
                                                                   --- -----
Basis and (iii) for all purposes of this Agreement, all Receivables Indebtedness
shall be treated as Indebtedness of the Borrower and its Subsidiaries hereunder,
regardless of any differing treatment pursuant to generally accepted accounting
principles.

          (b)  All computations of interest, Commitment Commission and other
Fees hereunder shall be made on the basis of a year of 360 days (or 365 days in
the case of interest on Base Rate Loans maintained at the Prime Lending Rate and
Foreign Currency Revolving Loans denominated in Pounds Sterling) for the actual
number of days (including the first day but excluding the last day; except that
in the case of Letter of Credit Fees and Facing Fees, the last day shall be
included) occurring in the period for which such interest, Commitment Commission
or Fees are payable.

          (c)  Notwithstanding anything to the contrary contained in clause (a)
of this Section 13.07, (i) for purposes of determining compliance with any
incurrence tests set forth in Sections 8 and/or 9 (excluding Sections 9.08,
9.09, 9.10, 9.11 and 9.12), any amounts so incurred or expended (to the extent
incurred or expended in a currency other than Dollars) shall be converted into
Dollars on the basis of the Dollar Equivalent of the respective such amounts as
in effect on the date of such incurrence or expenditure under any provision of
any such Section that has an aggregate Dollar limitation provided for therein
(and to the extent the respective incurrence test limits the aggregate amount
outstanding (or expended) at any time and is expressed in Dollars, all
outstanding amounts originally incurred or expended in a currency other than
Dollars shall be converted into Dollars on the basis of the Dollar Equivalent of
the

                                     -136-
<PAGE>

respective such amounts as in effect on the date any new incurrence or
expenditures made under any provision of any such Section that regulates the
Dollar amount outstanding (or expended) at any time).

          (d)  Except as provided in Section 13.07(e), for purposes of this
Agreement, the Dollar Equivalent of each Foreign Currency Revolving Loan and
each Letter of Credit denominated in a Foreign Currency shall be calculated on
the date when any such Foreign Currency Revolving Loan is made or Letter of
Credit is issued, on the second Business Day of each month and at such other
times as may be designated by the Administrative Agent.  Such Dollar Equivalent
shall remain in effect until the same is recalculated by the Administrative
Agent as provided above and notice of such recalculation is received by the
Borrower, it being understood that until such notice is received, the Dollar
Equivalent shall be that Dollar Equivalent as last reported to the Borrower by
the Administrative Agent.  The Administrative Agent shall promptly notify the
Borrower of each such determination of the Dollar Equivalent.

          (e)  For the purposes of determining the Borrower's obligation to
reimburse in Dollars a Drawing under a Letter of Credit denominated in a Foreign
Currency (and each Participant's obligation to fund its Participation with
respect to any such Letter of Credit), such determination shall be made by the
Administrative Agent by converting the amount of the Unpaid Drawing into Dollars
based on the Dollar Equivalent thereof on the day on which the Drawing is
honored by the Issuing Lender.  For the purposes of determining the Borrower's
obligation to pay Letter of Credit Fees and Facing Fees with respect to Letters
of Credit denominated in a Foreign Currency, such determination shall be made by
using the Dollar Equivalent in effect from time to time during the term of any
such Letter of Credit as determined by the provisions of Section 13.07(d).

          13.08  GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF
                 -----------------------------------------------------------
JURY TRIAL.  (a)  THIS AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS
----------
AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL, EXCEPT AS
OTHERWISE PROVIDED IN THE MORTGAGES, BE CONSTRUED IN ACCORDANCE WITH AND BE
GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  ANY LEGAL ACTION OR PROCEEDING
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT MAY BE BROUGHT IN
THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN
DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE CITY OF NEW YORK,
AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT,
THE BORROWER HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID
COURTS.  THE BORROWER HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH
COURTS LACK PERSONAL JURISDICTION OVER THE BORROWER, AND AGREES NOT TO PLEAD OR
CLAIM, IN ANY LEGAL ACTION PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER CREDIT DOCUMENTS BROUGHT IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH
COURTS LACK PERSONAL JURISDICTION OVER THE BORROWER.  THE BORROWER FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE

                                     -137-
<PAGE>

AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES
THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE BORROWER AT ITS
ADDRESS SET FORTH OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE TO BECOME EFFECTIVE
30 DAYS AFTER SUCH MAILING. THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION
TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO
PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY
OTHER CREDIT DOCUMENT THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR
INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT,
ANY LENDER OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
THE BORROWER IN ANY OTHER JURISDICTION.

          (b)  THE BORROWER HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY
NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR
PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER
CREDIT DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY
FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT
THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN
AN INCONVENIENT FORUM.

          (c)  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

          13.09  Counterparts.  This Agreement may be executed in any number of
                 ------------
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument.  A set of counterparts
executed by all the parties hereto shall be lodged with the Borrower and the
Administrative Agent.

          13.10  Effectiveness.  This Agreement shall become effective on the
                 -------------
date (the "Effective Date") on which the Borrower, the Administrative Agent and
each of the Lenders shall have signed a counterpart hereof (whether the same or
different counterparts) and shall have delivered the same to the Administrative
Agent at the Notice Office or, in the case of the Lenders, shall have given to
the Administrative Agent telephonic (confirmed in writing), written or telex
notice (actually received) at such office that the same has been signed and
mailed to it.  The Administrative Agent will give the Borrower and each Lender
prompt written notice of the occurrence of the Effective Date.

                                     -138-
<PAGE>

          13.11  Headings Descriptive.  The headings of the several sections and
                 --------------------
subsections of this Agreement are inserted for convenience only and shall not in
any way affect the meaning or construction of any provision of this Agreement.

          13.12  Amendment or Waiver; etc.  (a)  Neither this Agreement nor any
                 -------------------------
other Credit Document nor any terms hereof or thereof may be changed, waived,
discharged or terminated unless such change, waiver, discharge or termination is
in writing signed by the respective Credit Parties party thereto and the
Required Lenders (although additional parties may be added to, and Subsidiaries
of the Borrower may be released from, the Subsidiaries Guaranty and the Security
Documents in accordance with the provisions thereof without the consent of the
other Credit Parties party thereto or the Required Lenders), provided that no
                                                             --------
such change, waiver, discharge or termination shall, without the consent of each
Lender (other than a Defaulting Lender) (with Obligations being directly
affected in the case of following clause (i)), (i) extend the final scheduled
maturity of any Loan or Note or extend the stated expiration date of any Letter
of Credit beyond the Revolving Loan Maturity Date, or reduce the rate or extend
the time of payment of interest or Fees thereon (except in connection with the
waiver of applicability of any post-default increase in interest rates), or
reduce the principal amount thereof (it being understood that any amendment or
modification to the financial definitions in this Agreement or to Section
13.07(a) shall not constitute a reduction in the rate of interest or Fees for
the purposes of this clause (i)), (ii) release all or substantially all of the
Collateral under all the Security Documents (except as expressly permitted by
the Credit Documents), (iii) release all or substantially all of the Subsidiary
Guarantors from their respective obligations under the Subsidiaries Guaranty
(except as expressly permitted by the Credit Documents), (iv) amend, modify or
waive any provision of this Section 13.12 (except for technical amendments with
respect to additional extensions of credit pursuant to this Agreement which
afford the protections to such additional extensions of credit of the type
provided to the Term Loans and the Revolving Loan Commitments on the Effective
Date), (v) reduce the percentage specified in the definition of Required Lenders
(it being understood that, with the consent of the Required Lenders, additional
extensions of credit pursuant to this Agreement may be included in the
determination of the Required Lenders on substantially the same basis as the
extensions of Term Loans and Revolving Loan Commitments are included on the
Effective Date) or (vi) consent to the assignment or transfer by the Borrower of
any of its rights and obligations under this Agreement; provided further, that
                                                        ----------------
no such change, waiver, discharge or termination shall (1) increase the
Commitments of any Lender over the amount thereof then in effect without the
consent of such Lender (it being understood that waivers or modifications of
conditions precedent, covenants, Defaults or Events of Default or of a mandatory
reduction in the Total Commitment shall not constitute an increase of the
Commitment of any Lender, and that an increase in the available portion of any
Commitment of any Lender shall not constitute an increase of the Commitment of
such Lender), (2) without the consent of the Issuing Lender, amend, modify or
waive any provision of Section 2 or alter its rights or obligations with respect
to Letters of Credit, (3) without the consent of the Swingline Lender, alter the
Swingline Lender's rights or obligations with respect to Swingline Loans, (4)
without the consent of the Administrative Agent, amend, modify or waive any
provision of Section 12 or any other provision as same relates to the rights or
obligations of the Administrative Agent, (5) without the consent of Collateral
Agent, amend, modify or waive any provision relating to the rights or
obligations of the Collateral Agent, (6)

                                     -139-
<PAGE>

except in cases where additional extensions of term loans and/or revolving loans
are being afforded substantially the same treatment afforded to the Term Loans
and Revolving Loans pursuant to this Agreement as originally in effect, (x)
without the consent of the Majority Lenders of each Tranche which is being
allocated a lesser prepayment, repayment or commitment reduction as a result of
the actions described below, alter the required application of any prepayments
or repayments (or commitment reduction), as between the various Tranches,
pursuant to Section 4.01(a) or 4.02 (excluding Section 4.02(b) or (c)) (although
the Required Lenders may waive, in whole or in part, any such prepayment,
repayment or commitment reduction, so long as the application, as amongst the
various Tranches, of any such prepayment, repayment or commitment reduction
which is still required to be made is not altered) or (y) without the consent of
each Lender of each Tranche which is adversely affected by such amendment, amend
the definition of Majority Lenders (it being understood that with the consent of
the Required Lenders, additional extensions of credit pursuant to this Agreement
may be included in the determination of the Majority Lenders on substantially
the same basis as the extensions of Term Loans and Revolving Loan Commitments
are included on the Effective Date), (7) reduce the amount of, or extend the
date of, any Scheduled A Repayment without the consent of Supermajority Lenders
holding A Term Loans, or reduce the amount, or extend the date of, any Scheduled
B Repayment without the consent of the Supermajority Lenders holding B Term
Loans, or reduce the second percentage specified in clause (i) of the definition
of Supermajority Lenders without the consent of each Lender holding A Term
Loans, or reduce the second percentage specified in clause (ii) of the
definition of Supermajority Lenders without the consent of each Lender holding B
Term Loans (it being understood that (x) with the consent of the Required
Lenders, additional extensions of credit pursuant to this Agreement may be
included in the determination of the Supermajority Lenders on substantially the
same basis as the extensions of Term Loans and Revolving Loan Commitments are
included on the Effective Date and (y) nothing in this clause (7) is intended to
limit the rights of the Lenders set forth in clause (i) of the preceding proviso
with respect to any extension of the final Scheduled A Repayment due on the A
Term Loan Maturity Date or of the final Scheduled B Repayment due on the B Term
Loan Maturity Date), or (8) without the consent of the Indemnifying Lenders
holding a majority of the then outstanding Indemnity Participations, amend,
modify, terminate or waive any provision of Section 1.17 or 13.04(c) or of the
component definitions used therein. For purposes of this Section 13.12(a), it is
understood and agreed that the Fronting Lender may, in accordance with the
provisions of Section 1.17(f), provide votes or consents with respect to certain
portions of its Revolving Loan Commitment only, or may provide inconsistent
votes with respect to portions of its Revolving Loan Commitment, in each case to
the extent that the respective portions of its Revolving Loan Commitment are
required to be voted at the direction of the respective Indemnifying Lenders
pursuant to Section 1.17(f).

          (b)  If, in connection with any proposed change, waiver, discharge or
termination of any of the provisions of this Agreement as contemplated by
clauses (i) through (vi), inclusive, of the first proviso to Section 13.12(a),
the consent of the Required Lenders is obtained but the consent of one or more
of such other Lenders or Indemnifying Lenders whose consent is required is not
obtained, then the Borrower shall have the right, so long as all non-consenting
Lenders and Indemnifying Lenders whose individual consent is required are
treated as described in either clauses (A) or (B) below, to either (A) replace
each such non-consenting Lender and

                                     -140-
<PAGE>

each such non-consenting Indemnifying Lender with one or more Replacement
Lenders and/or Replacement Indemnifying Lenders, as the case may be, pursuant to
Section 1.13 so long as at the time of such replacement, each such Replacement
Lender and/or Replacement Indemnifying Lenders, as the case may be, consents to
the proposed change, waiver, discharge or termination or (B)(I) terminate such
non-consenting Lender's Commitments and/or repay each Tranche of outstanding
Loans of such Lender in accordance with Sections 3.02(b) and/or 4.01(b) and (II)
if the consent of any non-consenting Indemnifying Lender is required in
connection with the respective action, terminate that portion of the Revolving
Loan Commitment of the Fronting Lender in which the respective non-consenting
Indemnifying Lender has an Indemnity Participation and terminate the related
Indemnity Participation, provided that, unless the Commitments that are
                         --------
terminated, and Loans repaid, pursuant to preceding clause (B) are immediately
replaced in full at such time through the addition of new Lenders or the
increase of the Commitments and/or outstanding Loans of existing Lenders (who in
each case must specifically consent thereto), then in the case of any action
pursuant to preceding clause (B) the Required Lenders (determined after giving
effect to the proposed action) shall specifically consent thereto, provided
                                                                   --------
further, that in any event the Borrower shall not have the right to replace a
-------
Lender or Indemnifying Lender, terminate its Commitments (or Indemnity
Participations) or repay its Loans solely as a result of the exercise of such
Lender's or Indemnifying Lender's rights (and the withholding of any required
consent by such Lender or Indemnifying Lender) pursuant to the second proviso to
Section 13.12(a).

          13.13  Survival.  All indemnities set forth herein including, without
                 --------
limitation, in Sections 1.10, 1.11, 2.06, 4.04, 12.06 and 13.01 shall survive
the execution, delivery and termination of this Agreement and the Notes and the
making and repayment of the Obligations.

          13.14  Domicile of Loans.  Each Lender may transfer and carry its
                 -----------------
Loans at, to or for the account of any office, Subsidiary or Affiliate of such
Lender.  Notwithstanding anything to the contrary contained herein, to the
extent that a transfer of Loans pursuant to this Section 13.14 would, at the
time of such transfer, result in increased costs under Section 1.10, 1.11, 2.06
or 4.04 from those being charged by the respective Lender prior to such
transfer, then the Borrower shall not be obligated to pay such increased costs
(although the Borrower shall be obligated to pay any other increased costs of
the type described above resulting from changes after the date of the respective
transfer).

          13.15  Register.  The Borrower hereby designates the Administrative
                 --------
Agent to serve as the Borrower's agent, solely for purposes of this Section
13.15, to maintain a register (the "Register") on which it will record the
Commitments from time to time of each of the Lenders, the Loans made by each of
the Lenders, each repayment in respect of the principal amount of the Loans of
each Lender and the Indemnity Participation (and Indemnity Amount) of each
Indemnifying Lender.  Failure to make any such recordation, or any error in such
recordation, shall not affect the Borrower's obligations in respect of such
Loans or any Indemnifying Lender's obligation with respect to its Indemnity
Participation.  With respect to (x) any Lender, the transfer of the Commitments
of such Lender and the rights to the principal of, and interest on, any Loan
made pursuant to such Commitments and (y) any Indemnifying Lender, the transfer
of the Indemnity Participation of such Indemnifying Lender and the rights to
interest and fees payable pursuant to such Indemnity Participation, shall not be
effective until such transfer is

                                     -141-
<PAGE>

recorded on the Register maintained by the Administrative Agent with respect to
ownership of such Commitments, Loans and/or Indemnity Participations, as the
case may be, and prior to such recordation all amounts owing to the transferor
with respect to such Commitments, Loans and/or Indemnity Participations, as the
case may be, shall remain owing to the transferor. The registration of
assignment or transfer of all or part of any Commitments, Loans and Indemnity
Participations shall be recorded by the Administrative Agent on the Register
only upon the acceptance by the Administrative Agent of a properly executed and
delivered Assignment and Assumption Agreement pursuant to Sections 13.04(b)
and/or (c). Coincident with the delivery of such an Assignment and Assumption
Agreement to the Administrative Agent for acceptance and registration of
assignment or transfer of all or part of a Loan, or as soon thereafter as
practicable, the assigning or transferor Lender shall surrender the Note (if
any) evidencing such Loan, and thereupon one or more new Notes in the same
aggregate principal amount shall be issued to the assigning or transferor Lender
and/or the new Lender at the request of any such Lender. The Borrower agrees to
indemnify the Administrative Agent from and against any and all losses, claims,
damages and liabilities of whatsoever nature which may be imposed on, asserted
against or incurred by the Administrative Agent in performing its duties under
this Section 13.15.

          13.16  Confidentiality.  (a)  Subject to the provisions of clause (b)
                 ---------------
of this Section 13.16, each Lender agrees that it will use its reasonable
efforts not to disclose without the prior consent of the Borrower (other than to
its employees, auditors, advisors or counsel or to another Lender if such Lender
or such Lender's holding or parent company in its sole discretion determines
that any such party should have access to such information, provided such
Persons shall be subject to the provisions of this Section 13.16 to the same
extent as such Lender) any information with respect to the Borrower or any of
its Subsidiaries which is now or in the future furnished pursuant to this
Agreement or any other Credit Document, provided that any Lender may disclose
                                        --------
any such information (i) as has become generally available to the public other
than by virtue of a breach of this Section 13.16(a) by the respective Lender,
(ii) as may be required or appropriate in any report, statement or testimony
submitted to any municipal, state or Federal regulatory body having or claiming
to have jurisdiction over such Lender or to the Federal Reserve Board or the
Federal Deposit Insurance Corporation or similar organizations (whether in the
United States or elsewhere) or their successors, (iii) as may be required or
appropriate in respect to any summons or subpoena or in connection with any
litigation involving the Borrower, any of its Subsidiaries or affiliates, this
Agreement, any other Credit Document, the Transaction or any other transaction
contemplated or permitted hereunder, (iv) in order to comply with any law,
order, regulation or ruling applicable to such Lender, (v) to the extent
necessary in connection with the exercise of any remedy under the Credit
Documents, (vi) to the Administrative Agent or the Collateral Agent, (vii) to
any direct or indirect contractual counterparty in any swap, hedge or similar
agreement (or to any such contractual counterparty's professional advisor), so
long as such contractual counterparty (or such professional advisor) agrees to
be bound by the provisions of this Section 13.16 and (viii) to any prospective
or actual transferee or participant in connection with any contemplated transfer
or participation of any of the Notes or Commitments or any interest therein by
such Lender, provided that such prospective transferee agrees to be bound by the
             --------
confidentiality provisions contained in this Section 13.16.

          (b)  The Borrower hereby acknowledges and agrees that each Lender may
share with any of its affiliates, and such affiliates may share with such Lender
any information

                                     -142-
<PAGE>

related to the Borrower or any of its Subsidiaries (including, without
limitation, any non-public customer information regarding the creditworthiness
of the Borrower and its Subsidiaries), provided such Persons shall be subject to
the provisions of this Section 13.16 to the same extent as such Lender.

          13.17  Judgment Currency.  (a)  The Borrower's obligation hereunder
                 -----------------
and under the other Credit Documents to make payments in Dollars or (x) in the
case of a Letter of Credit issued in a Foreign Currency, the Dollar Equivalent
thereof or (y) in the case of a Foreign Currency Revolving Loan, the applicable
Foreign Currency (in any such case, the "Obligation Currency") shall not be
discharged or satisfied by any tender or recovery pursuant to any judgment
expressed in or converted into any currency other than the Obligation Currency,
except to the extent that such tender or recovery results in the effective
receipt by the Administrative Agent, the Collateral Agent, the Issuing Lender or
the respective Lender of the full amount of the Obligation Currency expressed to
be payable to the Administrative Agent, the Collateral Agent, the Issuing Lender
or such Lender under this Agreement or the other Credit Documents.  If for the
purpose of obtaining or enforcing judgment against the Borrower in any court or
in any jurisdiction, it becomes necessary to convert into or from any currency
other than the Obligation Currency (such other currency being hereinafter
referred to as the "Judgment Currency") an amount due in the Obligation
Currency, the conversion shall be made at the Relevant Currency Equivalent
thereof or, in the case of conversions into other currencies, at the rate of
exchange quoted by the Administrative Agent, determined, in each case, as of the
date immediately preceding the day on which the judgment is given (such Business
Day being hereinafter referred to as the "Judgment Currency Conversion Date").

          (b) If there is a change in the rate of exchange prevailing between
the Judgment Currency Conversion Date and the date of actual payment of the
amount due, the Borrower covenants and agrees to pay, or cause to be paid, such
additional amounts, if any (but in any event not a lesser amount) as may be
necessary to ensure that the amount paid in the Judgment Currency, when
converted at the rate of exchange prevailing on the date of payment, will
produce the amount of the Obligation Currency which could have been purchased
with the amount of Judgment Currency stipulated in the judgment or judicial
award at the rate of exchange prevailing on the Judgment Currency Conversion
Date.

          (c) For purposes of determining the Relevant Currency Equivalent or
any other rate of exchange for this Section 13.17, such amounts shall include
any premium and costs payable in connection with the purchase of the Obligation
Currency.

          13.18  Euro.  (a)  If at any time that a Foreign Currency Revolving
                 ----
Loan denominated in Pounds Sterling is outstanding, Pounds Sterling is replaced
as the lawful currency of the United Kingdom (the "Issuing Country") by the Euro
so that all payments are to be made in the Issuing Country in Euros and not in
Pounds Sterling, then such Foreign Currency Revolving Loan shall be
automatically converted into a Foreign Currency Revolving Loan denominated in
Euros in a principal amount equal to the amount of Euros into which the
principal amount of such Foreign Currency Revolving Loan would be converted
pursuant to the EMU Legislation and thereafter no further Foreign Currency
Revolving Loans will be available in Pounds Sterling, with the basis of accrual
of interest, notice requirements and payment offices

                                     -143-
<PAGE>

with respect to such converted Foreign Currency Revolving Loans to be that
consistent for Foreign Currency Revolving Loans denominated in Euros.

          (b)    In each case, to the maximum extent permitted under applicable
law, the Borrower shall from time to time, at the request of any Lender, pay to
such Lender the amount of any losses, damages, liabilities, claims, reduction in
yield, additional expense, increased cost, reduction in any amount payable,
reduction in the effective return of its capital, the decrease or delay in the
payment of interest or any other return forgone by such Lender or its affiliates
with respect to a Foreign Currency Revolving Loan affected by this Section 13.18
as a result of the tax or currency exchange resulting from the introduction,
changeover to or operation of the Euro in any applicable nation or eurocurrency
market.

          13.19  Post-Closing Actions.  Notwithstanding anything to the contrary
                 --------------------
contained in this Agreement or in the other Credit Documents, the parties hereto
acknowledge and agree that the Borrower and its Subsidiaries shall be required
to take the actions specified in Schedule XIII as promptly as practicable, and
in any event within 90 days after the Initial Borrowing Date.  The provisions of
said Schedule XIII shall be deemed incorporated by reference herein as fully as
if set forth herein in its entirety. All conditions precedent and
representations contained in this Agreement and the other Credit Documents shall
be deemed modified to the extent necessary to effect the foregoing (and to
permit the taking of the actions described above within the time periods
required above, rather than as elsewhere provided in the Credit Documents, and
to allow for certain items otherwise required to be delivered pursuant to the
Credit Documents not to be so delivered to the extent permitted by the terms of
said Schedule XIII), provided that (x) to the extent any representation and
                     --------
warranty would not be true because the actions described on Schedule XIII marked
with an asterisk (collectively, the "Actions Within Borrower's Control") were
not taken on the Initial Borrowing Date, the respective representation and
warranty shall be required to be true and correct in all material respects at
the time the respective action is taken (or was required to be taken) in
accordance with the foregoing provisions of this Section 13.19 and (y) all
representations and warranties relating to the Security Documents shall be
required to be true with respect to any of the foregoing actions required to be
taken by this Section 13.19 immediately after said actions have been taken. The
acceptance of the benefits of each Credit Event shall constitute a
representation, warranty and covenant by each Credit Agreement Party to each of
the Lenders that the Actions Within Borrower Control required to be taken
pursuant to this Section 13.19 will be, or have been, taken within the relevant
time periods referred to in this Section 13.19 and that, at such time, all
representations and warranties contained in this Agreement and the other Credit
Documents with respect to each Action Within Borrower's Control shall then be
true and correct without any modification pursuant to this Section 13.19. The
parties hereto acknowledge and agree that (i) the failure to take the Action
Within Borrower's Control specified as item IV. on Schedule XIII, within the
relevant time period required above, shall give rise to an immediate Event of
Default and (ii) the failure to take any of the other actions required above (to
the extent so required), within the relevant time periods required above, shall
be a covenant default for all purposes of this Agreement.

                                *     *     *

                                     -144-
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Agreement as of the date first
above written.

Address:
-------

The Manitowoc Company, Inc.                THE MANITOWOC COMPANY, INC.
500 South 16/th/ Street
Manitowoc, Wisconsin 54221
Attention: Maurice D. Jones                By: /s/ Glen E. Tellock
Tel. No.: (920) 684-4410                       _________________________
Fax No.:  (920) 683-8123                      Name:  Glen E. Tellock
                                              Title: Senior Vice President and
                                                     Chief Financial Officer

                                           BANKERS TRUST COMPANY, Individually
                                              and as Administrative Agent

                                           By: /s/ Gina S. Thompson
                                               _________________________
                                              Name:  Gina S. Thompson
                                              Title: Director

                                           BANK ONE, NA, Individually and as
                                              Syndication Agent

                                           By: /s/ Richard G. Hillsman
                                               _________________________
                                              Name:  Richard G. Hillsman
                                              Title: Director

                                           ARAB BANKING CORPORATION (B.S.C.)

                                           By: /s/ Grant E. McDonald
                                               _________________________
                                              Name:  Grant E. McDonald
                                              Title: Vice President
<PAGE>

                                           LASALLE BANK NATIONAL ASSOCIATION

                                           By:  /s/ Lou D. Banach
                                                _________________________
                                              Name:  Lou D. Banach
                                              Title: Vice President and
                                                     Senior Lender

                                           ASSOCIATED BANK, N.A.

                                           By: /s/ Clark A. Rasmussen
                                               _________________________
                                              Name:  Clark A. Rasmussen
                                              Title: Senior Vice President

                                           THE BANK OF NEW YORK

                                           By: /s/ Eugene F. Kenny
                                               _________________________
                                              Name:  Eugene F. Kenny
                                              Title: Senior Vice President

                                           FIRST UNION NATIONAL BANK

                                           By: /s/ John R. Langhine
                                               _________________________
                                              Name:  John R. Langhine
                                              Title: S.V.P. & Director

                                           NATEXIS BANQUES POPULAIRES

                                           By: /s/ Christine Dirkinger
                                               _________________________
                                              Name:  Christine Dirkinger
                                              Title: Assistant Vice President
<PAGE>

                                           FIRSTAR BANK, N.A.

                                           By: /s/ Thomas V. Richtman
                                               _________________________
                                              Name:  Thomas V. Richtman
                                              Title: Vice President

                                           M&I MARSHALL & ILSLEY BANK

                                           By: /s/ Ronald J. Casey
                                               _________________________
                                              Name:  Ronald J. Casey
                                              Title: Vice President

                                           FLEET NATIONAL BANK, Individually
                                           and as Documentation Agent

                                           By: /s/ James V. Maiorino
                                               _________________________
                                              Name:  James V. Maiorino
                                              Title: Vice President

                                           BNP PARIBAS

                                           By:_________________________
                                              Name:
                                              Title:

                                           THE NORTHERN TRUST COMPANY

                                           By: /s/ David J. Mitchell
                                               _________________________
                                              Name:  David J. Mitchell
                                              Title: Vice President<PAGE>

                                                                     EXHIBIT 4.2

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

                         THE MANITOWOC COMPANY, INC.,
                                  as Issuer,

                         the Guarantors named herein,
                                 as Guarantors

                                      and

                             THE BANK OF NEW YORK,
                                  as Trustee

                       ________________________________

                                   Indenture

                            Dated as of May 9, 2001

                       ________________________________

                  10 3/8% Senior Subordinated Notes due 2011

================================================================================
<PAGE>

                               TABLE OF CONTENTS

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                                                   ARTICLE ONE

                                   DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01.   Definitions........................................................................     1
SECTION 1.02.   Incorporation by Reference of Trust Indenture Act..................................    35
SECTION 1.03.   Rules of Construction..............................................................    36

                                                   ARTICLE TWO

                                                    THE NOTES

SECTION 2.01.   The Notes..........................................................................    37
SECTION 2.02.   Restrictive Legends................................................................    38
SECTION 2.03.   Execution and Authentication.......................................................    41
SECTION 2.04.   Registrar and Paying Agent.........................................................    42
SECTION 2.05.   Holders to Be Treated as Owners; Payments of Interest..............................    42
SECTION 2.06.   Paying Agent to Hold Money in Trust................................................    43
SECTION 2.07.   Transfer and Exchange..............................................................    43
SECTION 2.08.   Replacement Notes..................................................................    55
SECTION 2.09.   Outstanding Notes..................................................................    56
SECTION 2.10.   Temporary Notes....................................................................    56
SECTION 2.11.   Cancellation.......................................................................    57
SECTION 2.12.   ISIN Numbers and Common Codes......................................................    57
SECTION 2.13.   Defaulted Interest.................................................................    57
SECTION 2.14.   Issuance of Additional Notes.......................................................    57

                                                  ARTICLE THREE

                                                   REDEMPTION

SECTION 3.01.   Optional Redemption................................................................    58
SECTION 3.02.   Notices to Trustee.................................................................    59
SECTION 3.03.   Selection of Notes to Be Redeemed..................................................    59
SECTION 3.04.   Notice of Redemption...............................................................    59
SECTION 3.05.   Effect of Notice of Redemption.....................................................    61
SECTION 3.06.   Deposit of Redemption Price........................................................    61
SECTION 3.07.   Payment of Notes Called for Redemption.............................................    61
SECTION 3.08.   Notes Redeemed in Part.............................................................    61
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                                                  ARTICLE FOUR

                                                    COVENANTS

SECTION 4.01.   Payment of Notes...................................................................       62
SECTION 4.02.   Maintenance of Office or Agency....................................................       62
SECTION 4.03.   Limitation on Incurrence of Additional Indebtedness................................       62
SECTION 4.04.   Prohibition on Incurrence of Senior Subordinated Debt..............................       63
SECTION 4.05.   Limitation on Restricted Payments..................................................       63
SECTION 4.06.   Limitation on Dividend and Other Payment Restrictions
                    Affecting Restricted Subsidiaries..............................................       65
SECTION 4.07.   Limitation on Preferred Stock of Restricted Subsidiaries...........................       67
SECTION 4.08.   Limitation on Transactions with Affiliates.........................................       67
SECTION 4.09.   Limitation on Liens................................................................       69
SECTION 4.10.   Limitation on Asset Sales..........................................................       69
SECTION 4.11.   Repurchase of Notes upon a Change of Control.......................................       73
SECTION 4.12.   Additional Subsidiary Guarantees...................................................       75
SECTION 4.13.   Existence..........................................................................       75
SECTION 4.14.   Payment of Taxes and Other Claims..................................................       75
SECTION 4.15.   Reports to Holders.................................................................       76
SECTION 4.16.   Conduct of Business................................................................       76
SECTION 4.17.   Waiver of Stay, Extension or Usury Laws............................................       77
SECTION 4.18.   Compliance Certificates............................................................       77
SECTION 4.19.   Maintenance of Properties..........................................................       77
SECTION 4.20.   Insurance..........................................................................       78

                                                  ARTICLE FIVE

                                              SUCCESSOR CORPORATION

SECTION 5.01.   Merger, Consolidation and Sale of Assets...........................................       78
SECTION 5.02.   Successor Substituted..............................................................       80

                                                   ARTICLE SIX

                                              DEFAULT AND REMEDIES

SECTION 6.01.   Events of Default..................................................................       81
SECTION 6.02.   Notice of Defaults.................................................................       84
SECTION 6.03.   Other Remedies.....................................................................       84
SECTION 6.04.   Waiver of Past Defaults............................................................       84
SECTION 6.05.   Control by Majority................................................................       84
SECTION 6.06.   Limitation on Suits................................................................       85
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SECTION 6.07.   Rights of Holders to Receive Payment...............................................       85
SECTION 6.08.   Collection Suit by Trustee.........................................................       86
SECTION 6.09.   Trustee May File Proofs of Claim...................................................       86
SECTION 6.10.   Priorities.........................................................................       86
SECTION 6.11.   Undertaking for Costs..............................................................       87
SECTION 6.12.   Restoration of Rights and Remedies.................................................       87
SECTION 6.13.   Rights and Remedies Cumulative.....................................................       87
SECTION 6.14.   Delay or Omission Not Waiver.......................................................       87

                                                  ARTICLE SEVEN

                                                     TRUSTEE

SECTION 7.01.   General............................................................................       88
SECTION 7.02.   Certain Rights, Duties and Responsibilities of Trustee.............................       88
SECTION 7.03.   Individual Rights of Trustee.......................................................       90
SECTION 7.04.   Trustee's Disclaimer...............................................................       90
SECTION 7.05.   Notice of Default..................................................................       90
SECTION 7.06.   Reports by Trustee to Holders......................................................       90
SECTION 7.07.   Compensation and Indemnity.........................................................       90
SECTION 7.08.   Replacement of Trustee.............................................................       91
SECTION 7.09.   Successor Trustee by Merger, Etc...................................................       92
SECTION 7.10.   Eligibility........................................................................       92
SECTION 7.11.   Money Held in Trust................................................................       92
SECTION 7.12.   Withholding Taxes..................................................................       93
SECTION 7.13.   Trustee's Application for Instructions from the Company............................       93
SECTION 7.14.   Appointment of Co-Trustee..........................................................       93

                                                  ARTICLE EIGHT

                                             DISCHARGE OF INDENTURE

SECTION 8.01.   Termination of Company's Obligations...............................................       95
SECTION 8.02.   Defeasance and Discharge of Indenture..............................................       95
SECTION 8.03.   Defeasance of Certain Obligations..................................................       98
SECTION 8.04.   Application of Trust Money.........................................................       99
SECTION 8.05.   Repayment to Company...............................................................       99
SECTION 8.06.   Reinstatement......................................................................      100
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                                                  ARTICLE NINE

                                       AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.01.   Without Consent of Holders.........................................................      100
SECTION 9.02.   With Consent of Holders............................................................      101
SECTION 9.03.   Revocation and Effect of Consent...................................................      102
SECTION 9.04.   Notation on or Exchange of Notes...................................................      103
SECTION 9.05.   Trustee to Sign Amendments, Etc....................................................      103
SECTION 9.06.   Conformity with Trust Indenture Act................................................      103

                                                   ARTICLE TEN

                                                  SUBORDINATION

SECTION 10.01.  Notes Subordinated to Senior Debt..................................................      103
SECTION 10.02.  Suspension of Payment When Senior Debt Is in Default...............................      104
SECTION 10.03.  Obligations Subordinated to Prior Payment of All Senior Debt on
                   Dissolution, Liquidation or Reorganization of Company...........................      105
SECTION 10.04.  Payments May Be Paid Prior to Dissolution..........................................      107
SECTION 10.05.  Holders to Be Subrogated to Rights of Holders of Senior Debt.......................      107
SECTION 10.06.  Obligations of the Company Unconditional...........................................      107
SECTION 10.07.  Reliance on Judicial Order or Certificate of Liquidating Agent.....................      108
SECTION 10.08.  Subordination Rights Not Impaired by Acts or Omissions of the
                   Company or Holders of Senior
                   Debt............................................................................      108
SECTION 10.09.  Holders Authorize Trustee to Effectuate Subordination of Obligations...............      109
SECTION 10.10.  This Article Ten Not to Prevent Events of Default..................................      109
SECTION 10.11.  Amendments or Modifications to Article Ten.........................................      110
SECTION 10.12.  Acceleration of Notes..............................................................      110
SECTION 10.13.  Notice to Trustee, Rights of Trustee and Paying Agent..............................      110

                                                 ARTICLE ELEVEN

                                               GUARANTEE OF NOTES

SECTION 11.01.  Guarantee..........................................................................      111
SECTION 11.02.  Execution and Delivery of Guarantee................................................      112
SECTION 11.03.  Waiver of Subrogation..............................................................      112
SECTION 11.04.  Immediate Payment..................................................................      113
SECTION 11.05.  No Set-Off.........................................................................      113
SECTION 11.06.  Obligations Absolute...............................................................      113
SECTION 11.07.  Obligations Continuing.............................................................      113
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SECTION 11.08.   Obligations Not Reduced............................................................      114
SECTION 11.09.   Obligations Reinstated.............................................................      114
SECTION 11.10.   Obligations Not Affected...........................................................      114
SECTION 11.11.   Waiver.............................................................................      115
SECTION 11.12.   No Obligation to Take Action Against Company.......................................      115
SECTION 11.13.   Default and Enforcement............................................................      116
SECTION 11.14.   Costs and Expenses.................................................................      116
SECTION 11.15.   No Merger or Waiver; Cumulative Remedies...........................................      116
SECTION 11.16.   Survival of Obligations............................................................      116
SECTION 11.17.   Guarantee in Addition to Other Obligations.........................................      117
SECTION 11.18.   Successors and Assigns.............................................................      117
SECTION 11.19.   Governing Law; Agent for Service; Submission to Jurisdiction;
                    Waiver of Immunities; Judgment Currency.........................................      117
SECTION 11.20.   Limitation of Guarantor's Liability................................................      117
SECTION 11.21.   Release of Guarantee...............................................................      117

                                                  ARTICLE TWELVE

                                      SUBORDINATION OF GUARANTEE OBLIGATIONS

SECTION 12.01.   Guarantee Obligations Subordinated to Guarantor Senior Debt........................      118
SECTION 12.02.   Suspension of Guarantee Obligations When Guarantor Senior Debt Is in Default.......      118
SECTION 12.03.   Guarantee Obligations Subordinated to Prior Payment of All Guarantor Senior Debt on
                    Dissolution, Liquidation or Reorganization of Such Guarantor....................      119
SECTION 12.04.   Payments May Be Paid Prior to Dissolution..........................................      120
SECTION 12.05.   Holders to Be Subrogated to Rights of Holders of Guarantor Senior Debt.............      121
SECTION 12.06.   Guarantee Obligations of the Guarantors Unconditional..............................      121
SECTION 12.07.   Reliance on Judicial Order or Certificate of Liquidating Agent.....................      121
SECTION 12.08.   Subordination Rights Not Impaired by Acts or Omissions of the Guarantors or
                    Holders of Guarantor Senior Debt................................................      122
SECTION 12.09.   Holders Authorize Trustee to Effectuate Subordination of Guarantee Obligations.....      122
SECTION 12.10.   This Article Twelve Not to Prevent Events of Default...............................      123
SECTION 12.11.   Amendments or Modifications to Article Twelve......................................      123
SECTION 12.12.   Acceleration of Notes..............................................................      123
SECTION 12.13.   Notice to Trustee, Rights of Trustee and Paying Agent..............................      123
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                                                ARTICLE THIRTEEN

                                                  MISCELLANEOUS

SECTION 13.01.  Trust Indenture Act of 1939........................................................      124
SECTION 13.02.  Notices............................................................................      124
SECTION 13.03.  Certificate and Opinion as to Conditions Precedent.................................      126
SECTION 13.04.  Statements Required in Certificate.................................................      126
SECTION 13.05.  Rules by Trustee, Paying Agent or Registrar........................................      127
SECTION 13.06.  Payment Date Other Than a Business Day.............................................      127
SECTION 13.07.  Governing Law......................................................................      127
SECTION 13.08.  No Adverse Interpretation of Other Agreements......................................      127
SECTION 13.09.  No Recourse Against Others.........................................................      127
SECTION 13.10.  Successors.........................................................................      128
SECTION 13.11.  Duplicate Originals................................................................      128
SECTION 13.12.  Separability.......................................................................      128
SECTION 13.13.  Table of Contents, Headings, Etc...................................................      128
SECTION 13.14.  Judgment Currency..................................................................      128
SECTION 13.15.  Waiver of Jury Trial...............................................................      128
SECTION 13.16.  Unclaimed Money; Prescription......................................................      128

                                                ARTICLE FOURTEEN

                                   PAYING AGENT, TRANSFER AGENT AND REGISTRAR

SECTION 14.01.  Duties of the Paying Agent, Transfer Agent and Registrar...........................       129
SECTION 14.02.  Agent of the Company...............................................................       129
SECTION 14.03.  Certain Rights of Paying Agent, Transfer Agent and Registrar.......................       129
SECTION 14.04.  May Hold Notes.....................................................................       130
SECTION 14.05.  Appointment of Agents..............................................................       130
SECTION 14.06.  Money Held.........................................................................       130
SECTION 14.07.  Paying Agent, Transfer Agent and Registrar Not Responsible for Notes...............       130
SECTION 14.08.  Compensation and Indemnification...................................................       130

EXHIBIT A    -  Form of Note
EXHIBIT B    -  Form of Certificate of Transfer
EXHIBIT C    -  Form of Certificate of Exchange
EXHIBIT D    -  Form of Certificate from Acquiring Institutional Accredited
                    Investor
EXHIBIT E    -  Form of Guarantee
</TABLE>

                                     -vi-
<PAGE>

                             CROSS-REFERENCE TABLE

<TABLE>
<CAPTION>
TIA Sections                                                               Indenture Sections
------------                                                               ------------------
<S>                                                                        <C>
Section 310 (a)(1).........................................................      7.10
            (a)(2).........................................................      7.10
            (b)............................................................      7.03; 7.08
Section 311 ...............................................................      7.03
Section 313 (a)............................................................      7.06
            (c)............................................................      7.05; 7.06
Section 314 (a)............................................................      13.02
            (a)(4).........................................................      4.18
            (b)............................................................      N/A
            (c)(1).........................................................      N/A
            (c)(2).........................................................      N/A
            (d)............................................................      N/A
            (e)............................................................      13.04
Section 315 (a)............................................................      7.02
            (b)............................................................      7.02; 7.05
            (c)............................................................      7.02
            (d)............................................................      7.02
Section 316 (a)............................................................      6.05; 6.06
            (a)(1)(A)......................................................      6.05
            (a)(1)(B)......................................................      6.04
            (b)............................................................      6.07
Section 317 (a)(1).........................................................      6.08
            (a)(2).........................................................      6.09
            (b)............................................................      2.08
Section 318 (a)............................................................      N/A
            (c)............................................................      N/A
</TABLE>

Note:   The Cross-Reference Table shall not for any purpose be deemed to be a
        part of this Indenture.
<PAGE>

          INDENTURE, dated as of May 9, 2001, by and among THE MANITOWOC
COMPANY, INC., a Wisconsin corporation (the "Company"), the Guarantors (as
                                             -------
defined below) listed on the signature pages hereto and THE BANK OF NEW YORK, a
New York banking corporation, as trustee (the "Trustee"), registrar, paying
                                               -------
agent and transfer agent.

                            RECITALS OF THE COMPANY

          The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance of [_]175,000,000 aggregate principal
amount of the Company's 10 3/8% Senior Subordinated Notes due 2011 in the form
of Initial Notes (as defined below), 10 3/8% Senior Subordinated Notes due 2011
in the form of Exchange Notes (as defined below), 10 3/8% Senior Subordinated
Notes due 2011 in the form of Private Exchange Notes (as defined below) and, if
and when issued, such Additional Notes (as defined below) that the Company may
from time to time choose to issue pursuant to this Indenture, in each case
issuable as provided in this Indenture.  The Notes (as defined below) will be
Guaranteed (as defined below) on a senior subordinated basis by the Guarantors.
All things necessary to make this Indenture a valid and legally binding
agreement of the Company and the Guarantors, in accordance with its terms, have
been done, and the Company has done all things necessary to make the Notes, when
executed by the Company, and authenticated and delivered by the Trustee
hereunder and duly issued by the Company, valid and legally binding obligations
of the Company.  The Guarantors have done all things necessary to make the
Guarantees, when executed by the Guarantors, the valid and legally binding
obligations of the Guarantors.

                     AND THIS INDENTURE FURTHER WITNESSETH

          For and in consideration of the premises and the purchase of the Notes
by the Holders thereof, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders, as follows:

                                  ARTICLE ONE

                  DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.01.  Definitions.
                         -----------

          "Acceleration Notice" has the meaning given such term in Section
           -------------------
6.01(b).

          "Acquired Indebtedness" means Indebtedness of a Person or any of its
           ---------------------
Subsidiaries existing at the time such Person becomes a Restricted Subsidiary of
the Company or at the time it merges or consolidates with or into the Company or
any of its Restricted Subsidiaries or that is assumed in connection with the
acquisition of assets from such Person and in each case not incurred by such
Person in connection with, or in anticipation or contemplation
<PAGE>

of, such Person becoming a Restricted Subsidiary of the Company or such
acquisition, merger or consolidation.

          "Additional Interest" shall have the meaning given such term in the
           -------------------
Registration Rights Agreement.

          "Additional Notes" means, subject to the Company's compliance with
           ----------------
Section 4.03, 10 3/8% Senior Subordinated Notes due 2011 in aggregate principal
amount not to exceed [_]100.0 million, substantially in the form of Exhibit A
                                                                    ---------
and, if required, containing the Private Placement Legend, issued from time to
time after the Issue Date under the terms of this Indenture (other than
issuances pursuant to Section 2.07, 2.08, 2.10, 3.08 or 9.04 of this Indenture
and other than Exchange Notes issued pursuant to an exchange offer for other
Notes outstanding under this Indenture).

          "Affiliate" means, with respect to any specified Person, any other
           ---------
Person who directly or indirectly through one or more intermediaries controls,
or is controlled by, or is under common control with, such specified Person.
The term "control" means the possession, directly or indirectly, of the power to
          -------
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative of the
               -----------       ----------
foregoing.

          "Affiliate Transaction" has the meaning given such term in Section
           ---------------------
4.08.

          "Agent" means any Registrar, Paying Agent, Transfer Agent,
           -----
authenticating agent or co-Registrar.

          "amend" means to amend, supplement, restate, amend and restate or
           -----
otherwise modify; and "amendment" shall have a correlative meaning.
                       ---------

          "Applicable Procedures" means with respect to any transfer, exchange
           ---------------------
or other transaction involving a Global Note or beneficial interest therein, the
"Operating Procedures of the Euroclear System" and "Terms and Conditions
Governing Use of Euroclear," "General Terms and Conditions of Clearstream" and
"Customer Handbook" of Clearstream, to the extent applicable to such transaction
and as in effect at the time of such transaction.

          "Asset Acquisition" means (1) an Investment by the Company or any
           -----------------
Restricted Subsidiary of the Company in any other Person pursuant to which such
Person shall become a Restricted Subsidiary of the Company or any Restricted
Subsidiary of the Company, or shall be merged with or into the Company or any
Restricted Subsidiary of the Company, or (2) the acquisition by the Company or
any Restricted Subsidiary of the Company of the assets of any Person (other than
a Restricted Subsidiary of the Company) that constitute all or substantially all
of the assets of such Person or comprise any division or line of business of
such Person or any other properties or assets of such Person other than in the
ordinary course of business.

                                      -2-
<PAGE>

          "Asset Sale" means any direct or indirect sale, issuance, conveyance,
           ----------
transfer, lease, assignment or other transfer for value by the Company or any of
its Restricted Subsidiaries (including any Sale and Leaseback Transaction) to
any Person other than the Company or a Wholly Owned Restricted Subsidiary of the
Company of:  (1) any Capital Stock of any Restricted Subsidiary of the Company;
or (2) any other property or assets of the Company or any Restricted Subsidiary
of the Company other than in the ordinary course of business; provided, however,
that Asset Sales or other dispositions shall not include:

          (a)  a transaction or series of related transactions for which the
     Company or its Restricted Subsidiaries receive aggregate consideration of
     less than $2.0 million;

          (b)  the sale, lease, conveyance, disposition or other transfer of all
     or substantially all of the assets of the Company as permitted under
     Section 5.01;

          (c)  the sale or discount, in each case without recourse, of accounts
     receivable arising in the ordinary course of business, but only in
     connection with the compromise or collection thereof;

          (d)  sales of accounts receivable and related assets (including
     contract rights) of the type specified in the definition of "Qualified
     Securitization Transaction" to a Securitization Entity for the fair market
     value thereof;

          (e)  sales of accounts receivable and related assets (including
     contract rights) to the Factor pursuant to the Factoring Agreement;

          (f)  disposals or replacements of obsolete equipment in the ordinary
     course of business;

          (g)  sales pursuant to the GE Agreement;

          (h)  any Restricted Payment permitted by Section 4.05 or that
     constitutes a Permitted Investment; and

          (i)  any transfer of up to 6.4% of the Capital Stock of Potain S.A.
     ("Potain") to comply with the judgment or order of any court or to settle
     any judicial proceeding in whole or in part.

          "Bankruptcy Law" means Title 11 of the United States Code, as amended,
           --------------
or any similar federal or state law for the relief of debtors.

                                      -3-
<PAGE>

          "Board of Directors" means, as to any Person, the board of directors
           ------------------
of such Person or any duly authorized committee thereof.

          "Board Resolution" means, with respect to any Person, a copy of a
           ----------------
resolution certified by the Secretary or an Assistant Secretary of such Person
to have been duly adopted by the Board of Directors of such Person and to be in
full force and effect on the date of such certification, and delivered to the
Trustee.

          "Book-Entry Interest" means a beneficial interest held by or through a
           -------------------
Participant in a Global Note.

          "Borrowing Base Amount" means, as of any date, an amount equal to the
           ---------------------
sum of:

          (1)  80% of the aggregate book value of all accounts receivable of the
     Company and its Restricted Subsidiaries; and

          (2)  50% of the aggregate book value of all inventory owned by the
     Company and its Restricted Subsidiaries;

all calculated on a consolidated basis and in accordance with GAAP.

          "Business Day" means any day excluding Saturday, Sunday and any day
           ------------
which is a legal holiday under the laws of New York or Luxembourg or is a day on
which banking institutions in New York or Luxembourg are authorized or required
by law or other governmental action to close.

          "Capital Stock" means:
           -------------

          (1)  with respect to any Person that is a corporation, any and all
     shares, interests, participations or other equivalents (however designated
     and whether or not voting) of corporate stock, including each class of
     Common Stock and Preferred Stock of such Person; and

          (2)  with respect to any Person that is not a corporation, any and all
     partnership, membership or other equity interests of such Person.

          "Capitalized Lease Obligations" means, as to any Person, the
           -----------------------------
obligations of such Person under a lease that are required to be classified and
accounted for as capital lease obligations under GAAP and, for purposes of this
definition, the amount of such obligations at any date shall be the capitalized
amount of such obligations at such date, determined in accordance with GAAP.

                                      -4-
<PAGE>

          "Cash Equivalents" means:
           ----------------

          (1)  marketable direct obligations issued by, or unconditionally
     guaranteed by, the United States Government or issued by any agency thereof
     and backed by the full faith and credit of the United States, in each case
     maturing within one year from the date of acquisition thereof;

          (2)  marketable direct obligations issued by any state of the United
     States of America or any political subdivision of any such state or any
     public instrumentality thereof maturing within one year from the date of
     acquisition thereof and, at the time of acquisition, having one of the two
     highest ratings obtainable from either S&P or Moody's;

          (3)  commercial paper maturing no more than one year from the date of
     creation thereof and, at the time of acquisition, having a rating of at
     least A-1 from S&P or at least P-1 from Moody's;

          (4)  certificates of deposit or bankers' acceptances maturing within
     one year from the date of acquisition thereof issued by any bank organized
     under the laws of the United States of America or any state thereof or the
     District of Columbia or any U.S. branch of a foreign bank having at the
     date of acquisition thereof combined capital and surplus of not less than
     $250.0 million;

          (5)  repurchase obligations with a term of not more than seven days
     for underlying securities of the types described in clause (1) above
     entered into with any bank meeting the qualifications specified in clause
     (4) above;

          (6)  investments in money market funds that invest substantially all
     their assets in securities of the types described in clauses (1) through
     (5) above; and

          (7)  Foreign Cash Equivalents (although Foreign Cash Equivalents shall
     not be considered Cash Equivalents for purposes of Articles Ten and
     Twelve).

          "Change of Control" means the occurrence of one or more of the
           -----------------
following events:

          (1)  any sale, lease, exchange or other transfer (in one transaction
     or a series of related transactions) of all or substantially all of the
     assets of the Company to any Person or group of related Persons for
     purposes of Section 13(d) of the Exchange Act (a "Group"), together with
                                                       -----
     any Affiliates thereof (whether or not otherwise in compliance with the
     provisions of this Indenture);

                                      -5-
<PAGE>

          (2)  the approval by the holders of Capital Stock of the Company of
     any plan or proposal for the liquidation or dissolution of the Company
     (whether or not otherwise in compliance with the provisions of this
     Indenture);

          (3)  any Person or Group (other than entities formed for the purpose
     of holding, directly or indirectly, Capital Stock of the Company) shall
     become the owner, directly or indirectly, beneficially or of record, of
     shares representing more than 50% of the aggregate ordinary voting power
     represented by the issued and outstanding Capital Stock of the Company; or

          (4)  the replacement of a majority of the Board of Directors of the
     Company over a two-year period from the directors who constituted the Board
     of Directors of the Company at the beginning of such period, and such
     replacement shall not have been approved by a vote of at least a majority
     of the Board of Directors of the Company then still in office who either
     were members of such Board of Directors at the beginning of such period or
     whose election as a member of such Board of Directors was previously so
     approved.

          "Change of Control Offer" has the meaning given to such term in
           -----------------------
Section 4.11.

          "Change of Control Payment Date" has the meaning given to such term in
           ------------------------------
Section 4.11.

          "Clearstream" means Clearstream Banking, societe anonyme, formerly
           -----------
Cedelbank.

          "Commission" means the United States Securities and Exchange
           ----------
Commission.

          "Common Depositary" means initially The Bank of New York Depository
           -----------------
(Nominees) Limited or such other common depositary for the Depositary as may be
appointed by the Depositary from time to time.

          "Common Stock" of any Person means any and all shares, interests or
           ------------
other participations in, and other equivalents (however designated and whether
voting or non-voting) of, such Person's common stock, whether outstanding on the
Issue Date or issued after the Issue Date, and includes, without limitation, all
series and classes of such common stock.

          "Company" means The Manitowoc Company, Inc. until a successor replaces
           -------
it pursuant to Article Five of this Indenture and thereafter means the Surviving
Entity.

          "Company Order" means a written request or order signed in the name of
           -------------
the Company by an authorized signatory (by virtue of a power of attorney or
other similar instrument) and delivered to the Trustee.

                                      -6-
<PAGE>

          "Consolidated EBITDA" means, with respect to any Person, for any
           -------------------
period, the sum (without duplication) of:

          (1)  Consolidated Net Income; and

          (2)  to the extent Consolidated Net Income has been reduced thereby:

          (a)  all income taxes of such Person and its Restricted Subsidiaries
     paid or accrued in accordance with GAAP for such period (other than income
     taxes attributable to extraordinary, unusual or nonrecurring gains or
     losses (other than in connection with an Inversion Transaction) or taxes
     attributable to sales or dispositions outside the ordinary course of
     business);

          (b)  Consolidated Interest Expense; and

          (c)  Consolidated Non-cash Charges less any non-cash items increasing
     Consolidated Net Income for such period,

all as determined on a consolidated basis for such Person and its Restricted
Subsidiaries in accordance with GAAP.

          "Consolidated Fixed Charge Coverage Ratio" means, with respect to any
           ----------------------------------------
Person, the ratio of Consolidated EBITDA of such Person during the four full
fiscal quarters (the "Four Quarter Period") ending prior to the date of the
                      -------------------
transaction giving rise to the need to calculate the Consolidated Fixed Charge
Coverage Ratio for which financial statements are available (the "Transaction
                                                                  -----------
Date") to Consolidated Fixed Charges of such Person for the Four Quarter Period.
----
In addition to and without limitation of the foregoing, for purposes of this
definition, "Consolidated EBITDA" and "Consolidated Fixed Charges" shall be
calculated after giving effect on a pro forma basis for the period of such
calculation to:

          (1)  the incurrence or repayment of any Indebtedness of such Person or
     any of its Restricted Subsidiaries (and the application of the proceeds
     thereof) giving rise to the need to make such calculation and any
     incurrence or repayment of other Indebtedness (and the application of the
     proceeds thereof), other than the incurrence or repayment of Indebtedness
     in the ordinary course of business for working capital purposes pursuant to
     working capital facilities, occurring during the Four Quarter Period or at
     any time subsequent to the last day of the Four Quarter Period and on or
     prior to the Transaction Date, as if such incurrence or repayment, as the
     case may be (and the application of the proceeds thereof), occurred on the
     first day of the Four Quarter Period; and

          (2)  any asset sales or Asset Acquisitions (including, without
     limitation, any Asset Acquisition giving rise to the need to make such
     calculation as a result of such Person or one of its Restricted
     Subsidiaries (including any Person who becomes a Re-

                                      -7-
<PAGE>

     stricted Subsidiary as a result of the Asset Acquisition) incurring,
     assuming or otherwise being liable for Acquired Indebtedness and also
     including any Consolidated EBITDA (including any pro forma expense and cost
     reductions calculated on a basis consistent with Regulation S-X promulgated
     under the Exchange Act) attributable to the assets that are the subject of
     the Asset Acquisition or asset sale during the Four Quarter Period)
     occurring during the Four Quarter Period or at any time subsequent to the
     last day of the Four Quarter Period and on or prior to the Transaction
     Date, as if such asset sale or Asset Acquisition (including the incurrence
     or assumption of any such Acquired Indebtedness) occurred on the first day
     of the Four Quarter Period. If such Person or any of its Restricted
     Subsidiaries directly or indirectly guarantees Indebtedness of a third
     Person, the preceding sentence shall give effect to the incurrence of such
     guaranteed Indebtedness as if such Person or any Restricted Subsidiary of
     such Person had directly incurred or otherwise assumed such other
     Indebtedness that was so guaranteed.

          Furthermore, in calculating "Consolidated Fixed Charges" for purposes
of determining the denominator (but not the numerator) of this "Consolidated
Fixed Charge Coverage Ratio":

          (1)  interest on outstanding Indebtedness determined on a fluctuating
     basis as of the Transaction Date and which will continue to be so
     determined thereafter shall be deemed to have accrued at a fixed rate per
     annum equal to the rate of interest on such Indebtedness in effect on the
     Transaction Date; and

          (2)  notwithstanding clause (1) of this paragraph, interest on
     Indebtedness determined on a fluctuating basis, to the extent such interest
     is covered by agreements relating to Interest Swap Obligations, shall be
     deemed to accrue at the rate per annum resulting after giving effect to the
     operation of such agreements.

          "Consolidated Fixed Charges" means, with respect to any Person for any
           --------------------------
period, the sum, without duplication, of:

          (1)  Consolidated Interest Expense; plus

          (2)  the product of (x) the amount of all dividend payments on any
     series of Preferred Stock of such Person and, to the extent permitted under
     this Indenture, its Restricted Subsidiaries (other than dividends paid in
     Qualified Capital Stock) paid, accrued or scheduled to be paid or accrued
     during such period, times (y) a fraction, the numerator of which is one and
     the denominator of which is one minus the then current effective
     consolidated federal, state and local income tax rate of such Person,
     expressed as a decimal.

                                      -8-
<PAGE>

          "Consolidated Interest Expense" means, with respect to any Person for
           -----------------------------
any period, the sum of, without duplication:

          (1)  the aggregate of the interest expense of such Person and its
     Restricted Subsidiaries for such period determined on a consolidated basis
     in accordance with GAAP, including without limitation: (a) any amortization
     of debt discount and amortization or write-off of deferred financing costs;
     (b) the net costs under Interest Swap Obligations; (c) all capitalized
     interest; and (d) the interest portion of any deferred payment obligation;
     and

          (2)  the interest component of Capitalized Lease Obligations paid,
     accrued and/or scheduled to be paid or accrued by such Person and its
     Restricted Subsidiaries during such period as determined on a consolidated
     basis in accordance with GAAP.

          "Consolidated Net Income" means, with respect to any Person, for any
           -----------------------
period, the aggregate net income (or loss) of such Person and its Restricted
Subsidiaries for such period on a consolidated basis, determined in accordance
with GAAP; provided that there shall be excluded therefrom:

          (1)  after-tax gains from Asset Sales (without regard to the $2.0
     million limitation set forth in the definition thereof) or abandonments or
     reserves relating thereto;

          (2)  after-tax items classified as extraordinary or nonrecurring gains
     or losses;

          (3)  the net income of any Person acquired in a "pooling of interests"
     transaction accrued prior to the date it becomes a Restricted Subsidiary of
     the referent Person or is merged or consolidated with the referent Person
     or any Restricted Subsidiary of the referent Person;

          (4)  the net income (but not loss) of any Restricted Subsidiary of the
     referent Person to the extent that the declaration of dividends or similar
     distributions by that Restricted Subsidiary of that income is restricted by
     contract, operation of law or otherwise;

          (5)  the net income of any Person, other than a Restricted Subsidiary
     of the Company, except to the extent of cash dividends or distributions
     paid to the Company or to a Restricted Subsidiary of the Company by such
     Person;

          (6)  income or loss attributable to discontinued operations
     (including, without limitation, operations disposed of during such period
     whether or not such operations were classified as discontinued);

                                      -9-
<PAGE>

          (7)  in the case of a successor to the referent Person by
     consolidation or merger or as a transferee of the referent Person's assets,
     any earnings of the successor corporation prior to such consolidation,
     merger or transfer of assets;

          (8)  non-cash charges relating to compensation expense in connection
     with benefits provided under employee stock option plans, restricted stock
     option plans and other employee stock purchase or stock incentive plans;
     and

          (9)  income or loss attributable solely to fluctuations in currency
     values and related tax effects.

          "Consolidated Net Worth" of any Person means the consolidated
           ----------------------
stockholders' equity of such Person, determined on a consolidated basis in
accordance with GAAP, less (without duplication) amounts attributable to
Disqualified Capital Stock of such Person.

          "Consolidated Non-cash Charges" means, with respect to any Person, for
           -----------------------------
any period, the aggregate depreciation, amortization and other non-cash expenses
of such Person and its Restricted Subsidiaries reducing Consolidated Net Income
of such Person and its Restricted Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP (excluding any such charges that
require an accrual of or a reserve for cash charges for any future period).

          "Corporate Trust Office" means the office of the Trustee at which the
           ----------------------
corporate trust business of the Trustee shall, at any particular time, be
principally administered, which office is, at the date of this Indenture,
located at 101 Barclay Street, 21st Floor West, New York, NY 10286, Attention:
Corporate Trust Trustee Administration.

          "Covenant Defeasance" has the meaning given such term in Section 8.03.
           -------------------

          "Credit Agreement" means the Credit Agreement dated as of May 9, 2001,
           ----------------
among the Company, the lenders party thereto in their capacities as lenders
thereunder and Bankers Trust Company, as agent, together with the related
documents thereto (including, without limitation, any guarantee agreements and
security documents), in each case as such agreements may be amended (including
any amendment and restatement thereof), supplemented or otherwise modified from
time to time, including any agreement extending the maturity of, refinancing,
replacing or otherwise restructuring (including increasing the amount of
available borrowings thereunder or adding Restricted Subsidiaries of the Company
as additional borrowers or guarantors thereunder) all or any portion of the
Indebtedness under such agreement or any successor or replacement agreement and
whether by the same or any other agent, lender or group of lenders.

          "Currency Agreement" means any foreign exchange contract, currency
           ------------------
swap agreement or other similar agreement or arrangement designed to protect the
Company or any Restricted Subsidiary of the Company against fluctuations in
currency values.

                                     -10-
<PAGE>

          "Custodian" means any receiver, trustee, assignee, liquidator or
           ---------
similar official under any Bankruptcy Law.

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

          "Definitive Registered Note" means any Note that is not a Global Note
           --------------------------
and that is registered in the Register, the form of which is attached hereto as
Exhibit A.
---------
          "Depositary" means Euroclear or Clearstream or a successor clearing
           ----------
agency to either or both of them.

          "Designated Senior Debt" means (1) Indebtedness under or in respect of
           ----------------------
the Credit Agreement and (2) any other Indebtedness constituting Senior Debt
that, at the time of determination, has an aggregate principal amount of at
least $25.0 million and is specifically designated in the instrument evidencing
such Senior Debt as "Designated Senior Debt" by the Company.

          "Disqualified Capital Stock" means that portion of any Capital Stock
           --------------------------
which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event (other than an event which would
constitute a Change of Control), matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or is redeemable at the sole option
of the holder thereof (except, in each case, upon the occurrence of a Change of
Control), on or prior to the final maturity date of the Notes.

          "Domestic Restricted Subsidiary" means any Restricted Subsidiary of
           ------------------------------
the Company incorporated or otherwise organized or existing under the laws of
the United States, any state thereof or the District of Columbia.

          "Eligible Jurisdiction" means any country in the European Union (as it
           ---------------------
exists on the Issue Date) or Switzerland.

          "Euroclear" means Euroclear S.A./N.V. as operator of the Euroclear
           ---------
system.

          "European Union" means the European Union, including the countries of
           --------------
Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom, but
not including any country which becomes a member of the European Union after the
Issue Date.

          "Events of Default" has the meaning provided in Section 6.01.
           -----------------

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
           ------------
or any successor statute or statutes thereto.

                                     -11-
<PAGE>

          "Exchange Notes" means the 10 3/8% Senior Subordinated Notes due 2011
           --------------
to be issued pursuant to this Indenture in connection with (i) a Registration
pursuant to the Registration Rights Agreement or (ii) with respect to Initial
Notes issued under this Indenture from time to time after the Issue Date
pursuant to Section 2.14, 10 3/8% Senior Subordinated Notes due 2011 issued
pursuant to a registration rights agreement substantially identical to the
Registration Rights Agreement, in each case substantially in the form of Exhibit
                                                                         -------
A.
-

          "Exchange Offer" has the meaning set forth in the Registration Rights
           --------------
Agreement.

          "Exchange Registration Statement" has the meaning set forth in the
           -------------------------------
Registration Rights Agreement.

          "Factor" means, collectively, one or more purchasers of receivables
           ------
under the Factoring Agreement.

          "Factoring Agreement" means one or more receivables purchase
           -------------------
agreements (or similar agreements) entered into by the Company or any of its
Restricted Subsidiaries with the Factor, as the same may be amended, modified,
supplemented and/or replaced from time to time so long as any such replacement
agreement is on terms no less favorable to the Company or any of its Restricted
Subsidiaries in any material respect than those terms set forth in the Factoring
Agreement as in effect on the Issue Date.

          "fair market value" means, with respect to any asset or property, the
           -----------------
price which could be negotiated in an arm's-length, free market transaction, for
cash, between a willing seller and a willing and able buyer, neither of whom is
under undue pressure or compulsion to complete the transaction.  Fair market
value shall be determined by the Board of Directors of the Company acting
reasonably and in good faith and shall be evidenced by a Board Resolution of the
Board of Directors of the Company delivered to the Trustee.

          "Foreign Cash Equivalents" means certificates of deposit or bankers'
           ------------------------
acceptances of any bank organized under the laws of Canada or any country that
is a member of the European Union, whose short-term commercial paper rating from
S&P is at least A-1 or the equivalent thereof or from Moody's is at least P-1 or
the equivalent thereof, in each case with maturities of not more than one year
from the date of acquisition.

          "Foreign Restricted Subsidiary" means any Restricted Subsidiary of the
           -----------------------------
Company that is not a Domestic Restricted Subsidiary.

          "Four Quarter Period" has the meaning given such term in the
           -------------------
definition of "Consolidated Fixed Charge Coverage Ratio."

          "GAAP" means generally accepted accounting principles set forth in the
           ----
opinions and pronouncements of the Accounting Principles Board of the American
Institute of

                                     -12-
<PAGE>

Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
may be approved by a significant segment of the accounting profession of the
United States, which are in effect as of the Issue Date.

          "GE Agreement" means the agreement, dated March 10, 1998, between the
           ------------
Company and General Electric Capital Corporation, as Lessor, as the same may be
amended, modified, supplemented and/or replaced from time to time, providing for
the sale of equipment by the Company to the Lessor and subsequent leaseback by
the Lessor to the Company and/or to certain of the Company's Subsidiaries in an
aggregate outstanding principal amount not to exceed $20.0 million at any time.

          "Global Notes" means the U.S. Global Note(s), the International Global
           ------------
Note(s) and the Unrestricted Global Notes.

          "Government Obligations" means securities issued or directly and fully
           ----------------------
guaranteed or insured by the governments of any Eligible Jurisdiction rated AAA
or above and having maturities of not more than one year from the date of
acquisition.

          "guarantee" means a direct or indirect guarantee by any Person of any
           ---------
Indebtedness of any other Person and includes any obligation, direct or
indirect, contingent or otherwise, of such Person:  (1) to purchase or pay (or
advance or supply funds for the purchase or payment of) Indebtedness of such
other Person (whether arising by virtue of partnership arrangements, or by
agreements to keep-well, to purchase assets, goods, securities or services
(unless such purchase arrangements are on arm's-length terms and are entered
into in the ordinary course of business), to take-or-pay, or to maintain
financial statement conditions or otherwise); or (2) entered into for purposes
of assuring in any other manner the obligee of such Indebtedness of the payment
thereof or to protect such obligee against loss in respect thereof (in whole or
in part).  When used as  verbs, "guarantee" and "guaranteed" have correlative
                                 ---------       ----------
meanings.

          "Guarantee" means any guarantee of the Obligations of the Company
           ---------
under this Indenture and the Notes by a Guarantor.  When used as a verb,

"Guarantee" shall have a corresponding meaning.
----------

          "Guarantor" means:  (1) Manitowoc Crane Companies, Inc.; Manitowoc
           ---------
Foodservice Companies, Inc.; North Central Crane & Excavator Sales Corp.;
Manitowoc Marine Group, LLC; Environmental Rehab, Inc.; Manitowoc Crane & Shovel
Sales Corp.; Manitowoc Western Company, Inc.; Femco Machine Company, Inc.;
Manitowoc Cranes, Inc.; West-Manitowoc, Inc.; Manitowoc Re-Manufacturing, Inc.;
Manitowoc CP, Inc.; Manitowoc Boom Trucks, Inc.; Manitowoc MEC, Inc.; Manitowoc
Ice, Inc.; Manitowoc Equipment Works, Inc.; SerVend International, Inc.;
Manitowoc Beverage Systems, Inc.; KMT Refrigeration, Inc.; Diversified
Refrigeration, Inc.; Manitowoc FP, Inc.; SerVend Sales Corp.; Mul-

                                     -13-
<PAGE>

tiplex Company, Inc.; KMT Sales Corp.; Harford Duracool, LLC; Marinette Marine
Corporation; and Potain Corporation; and (2) each of the Company's Domestic
Restricted Subsidiaries that in the future executes a supplemental indenture in
which such Domestic Restricted Subsidiary agrees to be bound by the terms of
this Indenture as a Guarantor; provided that any Person constituting a Guarantor
as described above shall cease to constitute a Guarantor when its respective
Guarantee is released in accordance with the terms of this Indenture.

          "Guarantor Senior Debt" means, with respect to any Guarantor, the
           ---------------------
principal of, premium, if any, and interest (including any interest accruing
subsequent to the filing of a petition of bankruptcy at the rate provided for in
the documentation with respect thereto, whether or not such interest is an
allowed claim under applicable law) on any Indebtedness of a Guarantor, whether
outstanding on the Issue Date or thereafter created, incurred or assumed,
unless, in the case of any particular Indebtedness, the instrument creating or
evidencing the same or pursuant to which the same is outstanding expressly
provides that such Indebtedness shall not be senior in right of payment to the
Guarantee of such Guarantor.  Without limiting the generality of the foregoing,
"Guarantor Senior Debt" shall also include the principal of, premium, if any,
interest (including any interest accruing subsequent to the filing of a petition
of bankruptcy at the rate provided for in the documentation with respect
thereto, whether or not such interest is an allowed claim under applicable law)
on, and all other amounts owing in respect of:

          (x) all monetary obligations (including guarantees) of every nature of
     such Guarantor under the Credit Agreement, including, without limitation,
     obligations (including guarantees) to pay principal, premium and interest,
     reimbursement obligations under letters of credit, fees, expenses and
     indemnities;

          (y) all Interest Swap Obligations (and guarantees thereof); and

          (z) all obligations under Currency Agreements (and guarantees
thereof), in each case whether outstanding on the Issue Date or thereafter
incurred.

          Notwithstanding the foregoing, "Guarantor Senior Debt" shall not
include:

          (1) any Indebtedness of such Guarantor to the Company or to a
     Subsidiary of the Company;

          (2) Indebtedness to, or guaranteed on behalf of, any director, officer
     or employee of the Company or any Subsidiary of the Company (including,
     without limitation, amounts owed for compensation);

          (3) Indebtedness owed to trade creditors and other amounts incurred
     (but not under the Credit Agreement) in connection with obtaining goods,
     materials or services;

                                     -14-
<PAGE>

          (4)  Indebtedness represented by Disqualified Capital Stock;

          (5)  any liability for federal, state, local or other taxes owed or
     owing by such Guarantor;

          (6)  that portion of any Indebtedness incurred in violation of Section
     4.03 (but, as to any such obligation, no such violation shall be deemed to
     exist for purposes of this clause (6) if the holder(s) of such obligation
     or their representative and the Trustee shall have received an Officers'
     Certificate to the effect that the incurrence of such Indebtedness does not
     (or, in the case of revolving credit indebtedness, that the incurrence of
     the entire committed amount thereof at the date on which the initial
     borrowing thereunder is made would not) violate such provisions of this
     Indenture);

          (7)  Indebtedness that, when incurred and without respect to any
     election under Section 1111(b) of Title 11, United States Bankruptcy Code,
     is without recourse to such Guarantor; and

          (8)  any Indebtedness that is, by its express terms, subordinated in
     right of payment to any other Indebtedness of such Guarantor.

          "Holder" means any Person shown on the Register as the registered
           ------
holder, from time to time, of the Notes.

          "incur" has the meaning given such term in Section 4.03.
           -----

          "Indebtedness" means, with respect to any Person, without duplication:
           ------------

          (1)  all Obligations of such Person for borrowed money;

          (2)  all Obligations of such Person evidenced by bonds, debentures,
     notes or other similar instruments;

          (3)  all Capitalized Lease Obligations of such Person;

          (4)  all Obligations of such Person issued or assumed as the deferred
     purchase price of property, all conditional sale obligations and all
     Obligations under any title retention agreement (but excluding trade
     accounts payable and other accrued liabilities arising in the ordinary
     course of business);

          (5)  all Obligations for the reimbursement of any obligor on any
     letter of credit, banker's acceptance or similar credit transaction;

          (6)  guarantees and other contingent obligations in respect of
     Indebtedness referred to in clauses (1) through (5) above and clause (8)
     below;

                                     -15-
<PAGE>

          (7)  all Obligations of any other Person of the type referred to in
     clauses (1) through (6) above that are secured by any Lien on any property
     or asset of such Person, the amount of such Obligation being deemed to be
     the lesser of the fair market value of such property or asset or the amount
     of the Obligation so secured;

          (8)  all Obligations under Currency Agreements and interest swap
     agreements of such Person; and

          (9)  all Disqualified Capital Stock issued by such Person, with the
     amount of Indebtedness represented by such Disqualified Capital Stock being
     equal to the greater of its voluntary or involuntary liquidation preference
     and its maximum fixed repurchase price, but excluding accrued dividends, if
     any.

          For purposes hereof, the "maximum fixed repurchase price" of any
                                    ------------------------------
Disqualified Capital Stock which does not have a fixed repurchase price shall be
calculated in accordance with the terms of such Disqualified Capital Stock as if
such Disqualified Capital Stock were purchased on any date on which Indebtedness
shall be required to be determined pursuant to this Indenture, and if such price
is based upon, or measured by, the fair market value of such Disqualified
Capital  Stock, such fair market value shall be determined reasonably and in
good faith by the Board of Directors of the issuer of such Disqualified Capital
Stock.

          "Indenture" means this Indenture as originally executed or as it may
           ---------
be amended or supplemented from time to time by one or more indentures
supplemental to this Indenture entered into pursuant to the applicable
provisions of this Indenture.

          "Indenture Obligations" has the meaning given such term in Section
           ---------------------
11.01.

          "Independent Financial Advisor" means a firm:  (1) that does not, and
           -----------------------------
whose directors, officers and employees or Affiliates do not, have a direct or
indirect financial interest in the Company; and (2) that, in the judgment of the
Board of Directors of the Company, is otherwise independent and qualified to
perform the task for which it is to be engaged.

          "Indirect Participant" is defined to mean a Person who holds a Book-
           --------------------
Entry Interest through a Participant.

          "Initial Notes" means (i) . 175,000,000 aggregate principal amount of
           -------------
10 3/8% Senior Subordinated Notes due 2011 issued on the Issue Date,
substantially in the form of Exhibit A and containing the Private Placement
                             ---------
Legend, and (ii) Additional Notes, in each case for so long as such Notes
constitute Restricted Notes.

          "interest" means, with respect to the Notes, interest on and
           --------
Additional Interest, if any, with respect to, the Notes.

                                     -16-
<PAGE>

          "Interest Payment Date" means each semi-annual interest payment date
           ---------------------
on May 15 and November 15 of each year, commencing November 15, 2001.

          "Interest Swap Obligations" means the obligations of any Person
           -------------------------
pursuant to any arrangement with any other Person, whereby, directly or
indirectly, such Person is entitled to receive from time to time periodic
payments calculated by applying either a floating or a fixed rate of interest on
a stated notional amount in exchange for periodic payments made by such other
Person calculated by applying a fixed or a floating rate of interest on the same
notional amount and shall include, without limitation, interest rate swaps,
caps, floors, collars and similar agreements.

          "International Global Note(s)" means one or more Global Notes bearing
           ---------------------------
the Private Placement Legend in registered form without interest coupons that
will be issued on the Issue Date in a principal amount equal to the outstanding
principal amount of the Initial Notes sold in reliance on Regulation S and
deposited with the Common Depositary.

          "Inversion Transaction" means a transaction or series of related
           ---------------------
transactions undertaken to facilitate the global movement of cash assets among
affiliated group members in a tax efficient manner pursuant to which (i) a U.S.
parent company ("Former Parent") becomes a wholly owned subsidiary of a newly
                 -------------
organized offshore/foreign entity or entities (in either case, or together, "New
                                                                             ---
Parent"); (ii) all of the issued and outstanding capital stock of Former Parent
------
is converted into an equivalent number of shares of capital stock of New Parent;
and (iii) the foreign subsidiaries of Former Parent would then be owned by New
Parent, either directly or through a foreign subsidiary of New Parent, and would
be sister companies of Former Parent, and the domestic subsidiaries would be
held through Former Parent as a U.S. subsidiary of New Parent.

          "Investment" means, with respect to any Person, any direct or indirect
           ----------
loan or other extension of credit (including, without limitation, a guarantee)
or capital contribution to (by means of any transfer of cash or other property
to others or any payment for property or services for the account or use of
others), or any purchase or acquisition by such Person of any Capital Stock,
bonds, notes, debentures or other securities or evidences of Indebtedness issued
by, any Person.  "Investment" shall exclude extensions of trade credit by the
Company and its Restricted Subsidiaries on commercially reasonable terms in
accordance with normal trade practices of the Company or such Restricted
Subsidiaries, as the case may be, and the acquisition of up to 6.4% of the
Capital Stock of Potain.  If the Company or any Restricted Subsidiary of the
Company sells or otherwise disposes of any Common Stock of any direct or
indirect Wholly Owned Restricted Subsidiary of the Company (other than, in the
case of Potain, up to 6.4% of the Capital Stock of Potain) such that, after
giving effect to any such sale or disposition, the Company no longer owns,
directly or indirectly, 100% of the outstanding Common Stock of such Restricted
Subsidiary, the Company shall be deemed to have made an Investment on the date
of any such sale or disposition equal to the fair market value of the Common
Stock of such Restricted Subsidiary not sold or disposed of.

                                     -17-
<PAGE>

          "Issue Date" means May 9, 2001.
           ----------

          "Judgment Currency" has the meaning given such term in Section 13.14.
           -----------------

          "Legal Defeasance" has the meaning given such term in Section 8.02.
           ----------------

          "Lien" means any lien, mortgage, deed of trust, pledge, security
           ----
interest, charge 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 security interest).

          "Moody's" means Moody's Investors Service, Inc. and its successors.
           -------

          "Net Cash Proceeds" means, with respect to any Asset Sale, the
           -----------------
proceeds in the form of cash or Cash Equivalents including payments in respect
of deferred payment obligations when received in the form of cash or Cash
Equivalents (other than the portion of any such deferred payment constituting
interest) received by the Company or any of its Restricted Subsidiaries from
such Asset Sale net of:

          (1)  reasonable out-of-pocket expenses and fees relating to such Asset
     Sale (including, without limitation, legal, accounting and investment
     banking fees and sales commissions);

          (2)  taxes paid or payable after taking into account any reduction in
     consolidated tax liability due to available tax credits or deductions and
     any tax sharing arrangements;

          (3)  repayment of Indebtedness that is secured by the property or
     assets that are the subject of such Asset Sale; and

          (4)  appropriate amounts to be provided by the Company or any
     Restricted Subsidiary, as the case may be, as a reserve, in accordance with
     GAAP, against any liabilities associated with such Asset Sale and retained
     by the Company or any Restricted Subsidiary, as the case may be, after such
     Asset Sale, including, without limitation, pension and other post-
     employment benefit liabilities, liabilities related to environmental
     matters and liabilities under any indemnification obligations associated
     with such Asset Sale.

          "Net Proceeds Offer" has the meaning provided in Section 4.10(b).
           ------------------

          "Net Proceeds Offer Amount" has the meaning provided in Section
           -------------------------
4.10(b).

          "Net Proceeds Offer Payment Date" has the meaning provided in Section
           -------------------------------
4.10(b).

                                     -18-
<PAGE>

          "Net Proceeds Offer Trigger Date" has the meaning provided in Section
           -------------------------------
4.10(b).

          "Non-payment Default" has the meaning provided in Section 10.02(b).
           -------------------

          "Notes" means, collectively, the Initial Notes, the Private Exchange
           -----
Notes, if any, and the Unrestricted Notes.  For purposes of this Indenture, all
Notes shall vote together as one series of Notes under this Indenture.

          "Obligations" means all obligations for principal, premium, interest,
           -----------
penalties, fees, indemnification, reimbursements, damages and other liabilities
payable under the documentation governing any Indebtedness.

          "Officer" means any of the following of the Company:  the Chairman of
           -------
the Board of Directors, the Chief Executive Officer, the Chief Financial
Officer, the President, any Vice President, the Treasurer or the Secretary.

          "Officers' Certificate" means a certificate signed by two Officers.
           ---------------------

          "Opinion of Counsel" means a written opinion from legal counsel
           ------------------
reasonably acceptable to the Trustee.  The counsel may be an employee of or
counsel to the Company.

          "Participant" means, with respect to any Depositary, Persons who have
           -----------
accounts with such Depositary.

          "Paying Agent" has the meaning provided in Section 2.04, except that,
           ------------
for the purposes of Article Eight, the Paying Agent shall not be the Company,
any Guarantor or any Subsidiary of the Company, a Guarantor or an Affiliate of
any of them.  The term "Paying Agent" includes any additional Paying Agent.

          "Payment Blockage Notice" has the meaning provided in Section
           -----------------------
10.02(b).

          "Payment Blockage Period" has the meaning provided in Section
           -----------------------
10.02(b).

          "Payment Default" has the meaning provided in Section 10.02.
           ---------------

          "Permitted Indebtedness" means, without duplication, each of the
           ----------------------
following:

          (1) Indebtedness under the Notes issued on the Issue Date in an
     aggregate principal amount not to exceed . 175.0 million and the related
     Guarantees;

          (2) Indebtedness incurred pursuant to the Credit Agreement in an
     aggregate principal amount at any time outstanding not to exceed the
     greater of:

                                     -19-
<PAGE>

          (a)  $475.0 million (i) less the amount of all mandatory principal
     payments actually made by the Company or any Restricted Subsidiary with the
     Net Cash Proceeds from Asset Sales in respect of the term loans thereunder
     (excluding any such payments to the extent refinanced at the time of
     payment under a replaced Credit Agreement); and (ii) reduced by any
     mandatory permanent repayments of revolving loans made by the Company
     thereunder (which are accompanied by a corresponding permanent commitment
     reduction) with the Net Cash Proceeds from Asset Sales (excluding any such
     payments and commitment reductions to the extent refinanced at the time of
     payment under a replaced Credit Agreement); and

          (b)  the Borrowing Base Amount plus $30.0 million;

          (3)  other Indebtedness of the Company and its Restricted Subsidiaries
     outstanding on the Issue Date reduced by the amount of any scheduled
     amortization payments or mandatory prepayments when actually paid or
     permanent reductions therein;

          (4)  Interest Swap Obligations of the Company or any of its Restricted
     Subsidiaries covering Indebtedness of the Company or such Restricted
     Subsidiary; provided, however, that such Interest Swap Obligations are
     entered into to protect the Company and its Restricted Subsidiaries from
     fluctuations in interest rates on Indebtedness incurred without violation
     of this Indenture to the extent the notional principal amount of such
     Interest Swap Obligation does not exceed, at the time of the incurrence
     thereof, the principal amount of the Indebtedness to which such Interest
     Swap Obligation relates;

          (5)  Indebtedness under Currency Agreements; provided that in the case
     of Currency Agreements which relate to Indebtedness, such Currency
     Agreements do not increase the Indebtedness of the Company and its
     Restricted Subsidiaries outstanding other than as a result of fluctuations
     in foreign currency exchange rates or by reason of fees, indemnities and
     compensation payable thereunder;

          (6)  Indebtedness of a Restricted Subsidiary of the Company to the
     Company, to a Guarantor or to another Wholly Owned Restricted Subsidiary of
     the Company for so long as such Indebtedness is held by the Company, such
     Guarantor, such Wholly Owned Restricted Subsidiary or the holders of a Lien
     permitted under this Indenture, in each case subject to no Lien held by a
     Person other than the Company, a Guarantor, such Wholly Owned Restricted
     Subsidiary or holders of a Lien permitted under this Indenture; provided
     that if as of any date any Person other than the Company, a Guarantor, a
     Wholly Owned Restricted Subsidiary of the Company or the holder of a Lien
     permitted under this Indenture owns or holds any such Indebtedness or holds
     a Lien in respect of such Indebtedness, such date shall be deemed the
     incurrence of Indebtedness not constituting Permitted Indebtedness by the
     issuer of such Indebtedness pursuant to this clause (6);

                                     -20-
<PAGE>

          (7)  Indebtedness of the Company to a Wholly Owned Restricted
     Subsidiary of the Company for so long as such Indebtedness is held by a
     Wholly Owned Restricted Subsidiary of the Company or the holders of a Lien
     permitted under this Indenture, in each case subject to no Lien other than
     a Lien permitted under this Indenture; provided that (a) any Indebtedness
     of the Company to any Wholly Owned Restricted Subsidiary of the Company
     that is not Guarantor is unsecured and subordinated, pursuant to a written
     agreement, to the Company's obligations under this Indenture and the Notes
     and (b) if as of any date any Person other than a Wholly Owned Restricted
     Subsidiary of the Company or the holder of a Lien permitted under this
     Indenture owns or holds any such Indebtedness or any Person holds a Lien in
     respect of such Indebtedness, such date shall be deemed the incurrence of
     Indebtedness not constituting Permitted Indebtedness by the Company
     pursuant to this clause (7);

          (8)  Indebtedness arising from the honoring by a bank or other
     financial institution of a check, draft or similar instrument inadvertently
     (except in the case of daylight overdrafts) drawn against insufficient
     funds in the ordinary course of business; provided, however, that such
     Indebtedness is extinguished within four business days of incurrence;

          (9)  Indebtedness of the Company or any of its Restricted Subsidiaries
     represented by letters of credit for the account of the Company or such
     Restricted Subsidiary, as the case may be, in order to provide security for
     workers' compensation claims, payment obligations in connection with self-
     insurance or similar requirements in the ordinary course of business;

          (10) Indebtedness represented by guarantees by the Company or its
     Restricted Subsidiaries of Indebtedness otherwise permitted to be incurred
     under this Indenture; provided that, in the case of a guarantee by a
     Restricted Subsidiary, such Restricted Subsidiary complies with Section
     4.12 (to the extent applicable);

          (11) Indebtedness of the Company or any of its Restricted Subsidiaries
     in respect of bid, payment and performance bonds, bankers' acceptances,
     workers' compensation claims, surety or appeal bonds, payment obligations
     in connection with self-insurance or similar obligations, and bank
     overdrafts (and letters of credit in respect thereof) in the ordinary
     course of business;

          (12) Indebtedness of the Company or any Restricted Subsidiary
     consisting of guarantees, indemnities or obligations in respect of purchase
     price adjustments in connection with the acquisition or disposition of
     assets;

          (13) Indebtedness represented by Capitalized Lease Obligations and
     Purchase Money Indebtedness of the Company and its Restricted Subsidiaries
     incurred in

                                      -21-
<PAGE>

     the ordinary course of business not to exceed $15.0 million at any one time
     outstanding;

          (14) Indebtedness of Foreign Restricted Subsidiaries of the Company in
     an aggregate principal amount not to exceed $20.0 million under lines of
     credit to any such Foreign Restricted Subsidiary from Persons other than
     the Company or any of its Subsidiaries, the proceeds of which Indebtedness
     are used for such Foreign Restricted Subsidiary's working capital and other
     general corporate purposes;

          (15) Indebtedness that may be deemed to exist pursuant to the
     Factoring Agreement and Indebtedness by a Securitization Entity in a
     Qualified Securitization Transaction that is not recourse (except for
     Standard Securitization Undertakings) to the Company or any of its
     Restricted Subsidiaries; provided that any amounts incurred under this
     clause (15) in excess of $50.0 million will reduce the amounts available
     for borrowing under clause (2) above in an equal amount;

          (16) Indebtedness of the Company evidenced by commercial paper issued
     by the Company; provided that the aggregate outstanding principal amount of
     Indebtedness incurred pursuant to clause (2) of this definition and this
     clause (16) does not exceed the maximum amount of Indebtedness permitted
     under clause (2) of this definition;

          (17) Refinancing Indebtedness;

          (18) Indebtedness of the Company or any of its Restricted Subsidiaries
     consisting of obligations to repurchase equipment incurred in the ordinary
     course of business, to the extent such obligations do not exceed the fair
     market value of such equipment; and

          (19) additional Indebtedness of the Company and its Restricted
     Subsidiaries in an aggregate principal amount not to exceed $30.0 million
     at any one time outstanding (which amount may, but need not, be incurred in
     whole or in part under the Credit Agreement).

          For purposes of determining any particular amount of Indebtedness
under Section 4.03, guarantees, Liens or letter of credit obligations supporting
Indebtedness otherwise included in the determination of such particular amount
shall not be included.  For purposes of determining compliance with Section
4.03, in the event that an item of Indebtedness meets the criteria of more than
one of the categories of Permitted Indebtedness described in clauses (1) through
(19) above or is permitted to be incurred pursuant to the Consolidated Fixed
Charge Coverage Ratio provisions of such section, the Company shall, in its sole
discretion, classify (or later reclassify) such item of Indebtedness in any
manner that complies with such section. Accrual of interest, accretion or
amortization of original issue discount, the payment of inter-

                                      -22-
<PAGE>

est on any Indebtedness in the form of additional Indebtedness with the same
terms, the payment of dividends on Disqualified Capital Stock in the form of
additional shares of the same class of Disqualified Capital Stock and change in
the amount outstanding due solely to the result of fluctuations in the exchange
rates of currencies will not be deemed to be an incurrence of Indebtedness or an
issuance of Disqualified Capital Stock for purposes of Section 4.03.

          "Permitted Investments" means:
           ---------------------

          (1)  Investments by the Company or any Restricted Subsidiary of the
     Company in any Person that is or will become immediately after such
     Investment a Wholly Owned Restricted Subsidiary of the Company or that will
     merge or consolidate into the Company or a Wholly Owned Domestic Restricted
     Subsidiary of the Company and other Investments to the extent constituting
     intercompany Indebtedness permitted under clause (6) or (7) of the
     definition of "Permitted Indebtedness";

          (2)  Investments in the Company by any Restricted Subsidiary of the
     Company; provided that any Indebtedness evidencing such Investment, to the
     extent held by a Restricted Subsidiary that is not a Guarantor, is
     unsecured and subordinated, pursuant to a written agreement, to the
     Company's obligations under the Notes and this Indenture;

          (3)  Investments in cash and Cash Equivalents;

          (4)  loans and advances to employees and officers of the Company and
     its Restricted Subsidiaries in the ordinary course of business for bona
     fide business purposes not in excess of $2.0 million at any one time
     outstanding;

          (5)  Currency Agreements and Interest Swap Obligations entered into in
     the ordinary course of the Company's or its Restricted Subsidiaries'
     businesses and otherwise in compliance with this Indenture;

          (6)  additional Investments not to exceed $15.0 million at any one
     time outstanding;

          (7)  Investments in securities of trade creditors or customers
     received pursuant to any plan of reorganization or similar arrangement upon
     the bankruptcy or insolvency of such trade creditors or customers or in
     good faith settlement of delinquent obligations of such trade creditors or
     customers;

          (8)  Investments made by the Company or its Restricted Subsidiaries as
     a result of consideration received in connection with an Asset Sale made in
     compliance with Section 4.10;

                                      -23-
<PAGE>

          (9)  Investments represented by guarantees that are otherwise
     permitted under this Indenture;

          (10) Investments the payment for which is Qualified Capital Stock of
     the Company;

          (11) any Investment by the Company or a Wholly Owned Subsidiary of the
     Company in a Securitization Entity or any Investment by a Securitization
     Entity in any other Person in connection with a Qualified Securitization
     Transaction; provided that any Investment in a Securitization Entity is in
     the form of a Purchase Money Note or an equity interest;

          (12) Investments by the Company consisting of obligations of one or
     more officers, directors or other employees of the Company or any of its
     Subsidiaries in connection with such officers', directors' or employees'
     acquisition of shares of capital stock of the Company so long as no cash is
     paid by the Company or any of its Restricted Subsidiaries to such officers,
     directors or employees in connection with the acquisition of any such
     obligations; and

          (13) Investments in joint ventures not to exceed $15.0 million at any
     one time outstanding.

          "Permitted Liens" means the following types of Liens:
           ---------------

          (1)  Liens for taxes, assessments or governmental charges or claims
     either (a) not delinquent or (b) contested in good faith by appropriate
     proceedings and as to which the Company or its Restricted Subsidiaries
     shall have set aside on their books such reserves as may be required
     pursuant to GAAP;

          (2)  statutory Liens of landlords and Liens of carriers, warehousemen,
     mechanics, suppliers, materialmen and repairmen and other Liens imposed by
     law incurred in the ordinary course of business for sums not yet delinquent
     or being contested in good faith, if such reserve or other appropriate
     provision, if any, as shall be required by GAAP has been made in respect
     thereof;

          (3)  Liens incurred or deposits made in the ordinary course of
     business in connection with workers' compensation, unemployment insurance
     and other types of social security, including any Lien securing letters of
     credit issued in the ordinary course of business consistent with past
     practice in connection therewith, or to secure the performance of tenders,
     statutory obligations, surety and appeal bonds, bids, leases, government
     contracts, performance and return-of-money bonds and other similar
     obligations (exclusive of obligations for the payment of borrowed money);

                                      -24-
<PAGE>

          (4)  judgment Liens not giving rise to an Event of Default so long as
     such Lien is adequately bonded and any appropriate legal proceedings which
     may have been duly initiated for the review of such judgment shall not have
     been finally terminated or the period within which such proceedings may be
     initiated shall not have expired;

          (5)  easements, rights-of-way, zoning restrictions and other similar
     charges or encumbrances in respect of real property not interfering in any
     material respect with the ordinary conduct of the business of the Company
     or any of its Restricted Subsidiaries;

          (6)  Liens upon specific items of inventory or other goods and
     proceeds of any Person securing such Person's obligations in respect of
     bankers' acceptances issued or created for the account of such Person to
     facilitate the purchase, shipment or storage of such inventory or other
     goods;

          (7)  Liens securing reimbursement obligations with respect to
     commercial letters of credit which encumber documents and other property
     relating to such letters of credit and products and proceeds thereof;

          (8)  Liens encumbering deposits made to secure obligations arising
     from statutory, regulatory, contractual or warranty requirements of the
     Company or any of its Restricted Subsidiaries, including rights of offset
     and set-off;

          (9)  Liens securing Interest Swap Obligations which Interest Swap
     Obligations relate to Indebtedness that is otherwise permitted under this
     Indenture;

          (10) Liens securing Capitalized Lease Obligations and Purchase Money
     Indebtedness permitted pursuant to clause (13) of the definition of
     "Permitted Indebtedness"; provided, however, that in the case of Purchase
     Money Indebtedness (a) the Indebtedness shall not exceed the cost of such
     property or assets and shall not be secured by any property or assets of
     the Company or any Restricted Subsidiary of the Company other than the
     property and assets so acquired or constructed and (b) the Lien securing
     such Indebtedness shall be created within 90 days of such acquisition or
     construction or, in the case of a refinancing of any Purchase Money
     Indebtedness, within 90 days of such refinancing;

          (11) Liens securing Indebtedness under Currency Agreements;

          (12) Liens securing Acquired Indebtedness incurred in accordance with
     Section 4.03; provided that:

               (a)  such Liens secured such Acquired Indebtedness at the time of
          and prior to the incurrence of such Acquired Indebtedness by the
          Company or a Restricted Subsidiary of the Company and were not granted
          in connection with,

                                      -25-
<PAGE>

          or in anticipation of, the incurrence of such Acquired Indebtedness by
          the Company or a Restricted Subsidiary of the Company; and

               (b)  such Liens do not extend to or cover any property or assets
          of the Company or of any of its Restricted Subsidiaries other than the
          property or assets that secured the Acquired Indebtedness prior to the
          time such Indebtedness became Acquired Indebtedness of the Company or
          a Restricted Subsidiary of the Company and are no more favorable to
          the lienholders than those securing the Acquired Indebtedness prior to
          the incurrence of such Acquired Indebtedness by the Company or a
          Restricted Subsidiary of the Company;

          (13) Liens on assets of a Restricted Subsidiary of the Company that is
     not a Guarantor to secure Indebtedness of such Restricted Subsidiary that
     is otherwise permitted under this Indenture;

          (14) Liens on assets transferred to a Securitization Entity or on
     assets of a Securitization Entity, in either case incurred in connection
     with a Qualified Securitization Transaction, and Liens in favor of the
     Factor solely on those accounts receivable (and the rights ancillary
     thereto) of the Company and its Restricted Subsidiaries that are purchased
     by the Factor pursuant to the Factoring Agreement from time to time;

          (15) leases, subleases, licenses and sublicenses granted to others
     that do not materially interfere with the ordinary course of business of
     the Company and its Restricted Subsidiaries;

          (16) banker's Liens, rights of set-off and similar Liens with respect
     to cash and Cash Equivalents on deposit in one or more bank accounts in the
     ordinary course of business;

          (17) Liens arising from filing Uniform Commercial Code financing
     statements regarding leases;

          (18) Liens in favor of customs and revenue authorities arising as a
     matter of law to secure payment of customs duties in connection with the
     importation of goods;

          (19) rights of customers with respect to inventory which arise from
     deposits and progress payments made in the ordinary course of business;

          (20) additional Liens not to exceed $5.0 million at any one time; and

          (21) the escrow of up to 6.4% of the Capital Stock of Potain to
     comply with the judgment or order of any court or to settle any judicial
     proceeding in whole or in part.

                                      -26-
<PAGE>

          "Person" means an individual, partnership, corporation, limited
           ------
liability company, unincorporated organization, trust or joint venture, or a
governmental agency or political subdivision thereof.

          "Preferred Stock" of any Person means any Capital Stock of such Person
           ---------------
that has preferential rights to any other Capital Stock of such Person with
respect to dividends or redemptions or upon liquidation.

          "principal" means, with respect to the Notes, the principal of, and
           ---------
premium, if any, on the Notes.

          "Private Exchange Notes" has the meaning given such term in the
           ----------------------
Registration Rights Agreement.

          "Private Placement Legend" means the legend initially set forth on the
           ------------------------
Restricted Notes in the form set forth in Section 2.02(a).

          "Public Equity Offering" has the meaning set forth in Section 3.01(b).
           ----------------------

          "Purchase Money Indebtedness" means Indebtedness of the Company and
           ---------------------------
its Restricted Subsidiaries incurred in the normal course of business for the
purpose of financing all or any part of the purchase price, or the cost of
installation, construction or improvement, of property or equipment.

          "Purchase Money Note" means a promissory note of a Securitization
           -------------------
Entity evidencing a line of credit, which may be irrevocable, from the Company
or any Subsidiary of the Company in connection with a Qualified Securitization
Transaction to a Securitization Entity, which note shall be repaid from cash
available to the Securitization Entity other than amounts required to be
established as reserves pursuant to agreements, amounts paid to investors in
respect of interest and principal and amounts paid in connection with the
purchase of newly generated receivables or newly acquired equipment.

          "QIB" means a "qualified institutional buyer" as defined in Rule 144A.
           ---

          "Qualified Capital Stock" means any Capital Stock that is not
           -----------------------
Disqualified Capital Stock.

          "Qualified Securitization Transaction" means any transaction or series
           ------------------------------------
of transactions that may be entered into by the Company, any of its Restricted
Subsidiaries or a Securitization Entity pursuant to which the Company or such
Restricted Subsidiary or such Securitization Entity may, pursuant to customary
terms, sell, convey or otherwise transfer to, or grant a security interest in
for the benefit of, (1) a Securitization Entity or the Company or any of its
Restricted Subsidiaries that subsequently transfers to a Securitization Entity
(in the case of a transfer by the Company or such Restricted Subsidiary) and (2)
any other Person (in

                                      -27-
<PAGE>

the case of transfer by a Securitization Entity), any accounts receivable
(whether now existing or arising or acquired in the future) of the Company or
any of its Restricted Subsidiaries that arose in the ordinary course of business
of the Company and its Restricted Subsidiaries, and any assets related thereto,
including, without limitation, all collateral securing such accounts receivable,
all contracts and contract rights and all guarantees or other obligations in
respect of such accounts receivable, proceeds of such accounts receivable and
other assets (including contract rights) that are customarily transferred or in
respect of which security interests are customarily granted in connection with
asset securitization transactions involving accounts receivable.

          "redeem" means to redeem, repurchase, purchase, defease, retire,
           ------
discharge or otherwise acquire or retire for value; and "redemption" shall have
                                                         ----------
a correlative meaning.

          "Redemption Date," when used with respect to any Note to be redeemed,
           ---------------
means the date fixed for such redemption by or pursuant to this Indenture.

          "Redemption Price," when used with respect to any Note to be redeemed,
           ----------------
means the price at which such Note is to be redeemed pursuant to this Indenture.

          "Reference Date" has the meaning provided in Section 4.05.
           --------------

          "Refinance" means, in respect of any security or Indebtedness, to
           ---------
refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or
to issue a security or Indebtedness in exchange or replacement for, such
security or Indebtedness in whole or in part.  "Refinanced" and "Refinancing"
                                                ----------       -----------
shall have correlative meanings.

          "Refinancing Indebtedness" means any Refinancing by the Company or any
           ------------------------
Restricted Subsidiary of the Company of Indebtedness incurred in accordance
Section 4.03 (other than pursuant to clause (2), (4), (5), (6), (7), (8), (9),
(10), (11), (12), (13), (14), (15) or (19) of the definition of "Permitted
Indebtedness"), in each case, that does not:

          (1)  result in an increase in the aggregate principal amount of
     Indebtedness of such Person as of the date of such proposed Refinancing
     (plus the amount of any premium required to be paid under the terms of the
     instrument governing such Indebtedness and plus the amount of reasonable
     expenses incurred by the Company in connection with such Refinancing); or

          (2)  create Indebtedness with: (a) a Weighted Average Life to Maturity
     that is less than the Weighted Average Life to Maturity of the Indebtedness
     being Refinanced; or (b) a final maturity earlier than the final maturity
     of the Indebtedness being Refinanced; provided that (x) if such
     Indebtedness being Refinanced is Indebtedness solely of the Company, then
     such Refinancing Indebtedness shall be Indebtedness solely of the Company
     and (y) if such Indebtedness being Refinanced is subordinate or junior to
     the Notes, then such Refinancing Indebtedness shall be subordinate to the

                                      -28-
<PAGE>

     Notes at least to the same extent and in the same manner as the
     Indebtedness being Refinanced.

          "Register" has the meaning provided in Section 2.04.
           --------

          "Registrar" has the meaning provided in Section 2.04.
           ---------

          "Registration" means, collectively, each offer of Notes registered
           ------------
pursuant to a registration statement.

          "Registration Rights Agreement" means (i) with respect to the Initial
           -----------------------------
Notes issued on the Issue Date, the Registration Rights Agreement, dated as of
the date hereof, between the Company, the Guarantors and Deutsche Bank AG
London, and (ii) with respect to each issuance of Additional Notes in a
transaction exempt from the registration requirements of the Securities Act, the
registration rights agreement among the Company and the Persons purchasing the
Additional Notes.

          "Registration Statement" means the Exchange Registration Statement or
           ----------------------
a Shelf Registration as defined and described in the Registration Rights
Agreement.

          "Regular Record Date" for the interest payable on any Interest Payment
           -------------------
Date means the May 1 or November 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date.

          "Regulation S" means Regulation S under the Securities Act.
           ------------

          "Replacement Assets" has the meaning provided in Section
           ------------------
4.10(a)(3)(ii).

          "Representative" means the indenture trustee or other trustee, agent
           --------------
or representative in respect of any Designated Senior Debt; provided that if,
and for so long as, any Designated Senior Debt lacks such a representative, then
the Representative for such Designated Senior Debt shall at all times constitute
the holders of a majority in outstanding principal amount of such Designated
Senior Debt in respect of any Designated Senior Debt.

          "Responsible Officer," when used with respect to the Trustee or any
           -------------------
Paying Agent means any vice president, any assistant vice president, any
assistant treasurer, any trust officer or assistant trust officer or any other
officer of the Trustee or such Paying Agent, as the case may be, customarily
performing functions similar to those performed by any of the above designated
officers in each case assigned to or employed by the corporate trust department
of the Trustee or such Paying Agent, as the case may be, and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his or her knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the
administration of this Indenture.

                                      -29-
<PAGE>

          "Restricted Definitive Registered Note" means a Definitive Registered
           -------------------------------------
Note bearing the Private Placement Legend issued in registered form without
coupons in a principal amount of . 1,000 or integral multiples thereof.

          "Restricted Global Notes" means the U.S. Global Note(s) and the
           -----------------------
International Global Note(s).

          "Restricted Notes" means the Restricted Definitive Registered Notes
           ----------------
and the Restricted Global Note(s).

          "Restricted Payment" has the meaning provided in Section 4.05.
           ------------------

          "Restricted Subsidiary" of any Person means any Subsidiary of such
           ---------------------
Person which at the time of determination is not an Unrestricted Subsidiary.

          "Rule 144A" means Rule 144A under the Securities Act.
           ---------

          "S&P" means Standard & Poor's Ratings Services, a division of the
           ---
McGraw-Hill Companies, Inc., and its successors.

          "Sale and Leaseback Transaction" means any direct or indirect
           ------------------------------
arrangement with any Person or to which any such Person is a party, providing
for the leasing to the Company or a Restricted Subsidiary of any property,
whether owned by the Company or any Restricted Subsidiary at the Issue Date or
later acquired, which has been or is to be sold or transferred by the Company or
such Restricted Subsidiary to such Person or to any other Person from whom funds
have been or are to be advanced by such Person on the security of such Property.

          "Securities Act" means the United States Securities Act of 1933, as
           --------------
amended.

          "Securitization Entity" means a Wholly Owned Subsidiary of the Company
           ---------------------
(or another Person in which the Company or any Subsidiary of the Company makes
an Investment and to which the Company or any Subsidiary of the Company
transfers accounts receivable and related assets) that engages in no activities
other than in connection with the financing of accounts receivable and that is
designated by the Board of Directors of the Company (as provided below) as a
Securitization Entity; and

          (1)  no portion of the Indebtedness or any other obligations
     (contingent or otherwise) of which:

               (a)  is guaranteed by the Company or any Restricted Subsidiary of
          the Company (other than the Securitization Entity) (excluding
          guarantees of obligations (other than the principal of, and interest
          on, Indebtedness)) pursuant to Standard Securitization Undertakings,

                                      -30-
<PAGE>

               (b)  is recourse to or obligates the Company or any Restricted
          Subsidiary of the Company (other than the Securitization Entity) in
          any way other than pursuant to Standard Securitization Undertakings or

               (c)  subjects any asset of the Company or any Restricted
          Subsidiary of the Company (other than the Securitization Entity),
          directly or indirectly, contingently or otherwise, to the satisfaction
          thereof, other than pursuant to Standard Securitization Undertakings
          and other than any interest in the accounts receivable and related
          assets being financed (whether in the form of an equity interest in
          such assets or subordinated indebtedness payable primarily from such
          financed assets), retained or acquired by the Company or any
          Restricted Subsidiary of the Company;

          (2)  with which neither the Company nor any Restricted Subsidiary of
     the Company has any material contract, agreement, arrangement or
     understanding other than on terms no less favorable to the Company or such
     Restricted Subsidiary than those that might be obtained at the time from
     Persons that are not Affiliates of the Company, other than fees payable in
     the ordinary course of business in connection with servicing receivables of
     such entity; and

          (3)  to which neither the Company nor any Restricted Subsidiary of the
     Company has any obligation to maintain or preserve such entity's financial
     condition or cause such entity to achieve certain levels of operating
     results.

Any such designation by the Board of Directors of the Company shall be evidenced
to the Trustee by filing with the Trustee a certified copy of the Board
Resolution giving effect to such designation and an Officers' Certificate
certifying that such designation complied with the foregoing conditions.

          "Senior Debt" means the principal of, premium, if any, and interest
           -----------
(including any interest accruing subsequent to the filing of a petition of
bankruptcy at the rate provided for in the documentation with respect thereto,
whether or not such interest is an allowed claim under applicable law) on any
Indebtedness of the Company, whether outstanding on the Issue Date or thereafter
created, incurred or assumed, unless, in the case of any particular
Indebtedness, the instrument creating or evidencing the same or pursuant to
which the same is outstanding expressly provides that such Indebtedness shall
not be senior in right of payment to the Notes.  Without limiting the generality
of the foregoing, "Senior Debt" shall also include the principal of, premium, if
any, interest (including any interest accruing subsequent to the filing of a
petition of bankruptcy at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed claim under
applicable law) on, and all other amounts owing in respect of:

                                      -31-
<PAGE>

          (1)  all monetary obligations (including guarantees thereof) of every
     nature of the Company under the Credit Agreement, including, without
     limitation, obligations (including guarantees) to pay principal, premium
     (if any) and interest, reimbursement obligations under letters of credit,
     fees, expenses and indemnities;

          (2)  all Interest Swap Obligations (including guarantees thereof); and

          (3)  all obligations under Currency Agreements (including guarantees
thereof), in each case whether outstanding on the Issue Date or thereafter
incurred.

          Notwithstanding the foregoing, "Senior Debt" shall not include:

          (1)  any Indebtedness of the Company to a Subsidiary of the Company;

          (2)  any Indebtedness to, or guaranteed on behalf of, any director,
     officer or employee of (x) the Company or (y) any Subsidiary of the Company
     (including, without limitation, amounts owed for compensation);

          (3)  Indebtedness to trade creditors and other amounts incurred (but
     not under the Credit Agreement) in connection with obtaining goods,
     materials or services;

          (4)  Indebtedness represented by Disqualified Capital Stock;

          (5)  any liability for federal, state, local or other taxes owed or
     owing by the Company;

          (6)  that portion of any Indebtedness incurred in violation of Section
     4.03 (but, as to any such obligation, no such violation shall be deemed to
     exist for purposes of this clause (6) if the holder(s) of such obligation
     or their representative and the Trustee shall have received an Officers'
     Certificate to the effect that the incurrence of such Indebtedness does not
     (or, in the case of revolving credit indebtedness, that the incurrence of
     the entire committed amount thereof at the date on which the initial
     borrowing thereunder is made would not) violate such provisions of this
     Indenture);

          (7)  Indebtedness that, when incurred and without respect to any
     election under Section 1111(b) of Title 11, United States Bankruptcy Code,
     is without recourse to the Company; and

          (8)  any Indebtedness that is, by its express terms, subordinated in
     right of payment to any other Indebtedness of the Company.

                                      -32-
<PAGE>

          "Shelf Registration" means the Shelf Registration as defined in the
           ------------------
Registration Rights Agreement.

          "Significant Subsidiary," with respect to any Person, means any
           ----------------------
Restricted Subsidiary of such Person that satisfies the criteria for a
"significant subsidiary" set forth in Rule 1-02(w) of Regulation S-X under the
Securities Act.

          "Standard Securitization Undertakings" means representations,
           ------------------------------------
warranties, covenants and indemnities entered into by the Company or any
Subsidiary of the Company that are reasonably customary in an accounts
receivable securitization transaction.

          "Stated Maturity" means, with respect to any installment of interest
           ---------------
or principal on any Indebtedness, the date on which such payment of interest or
principal is scheduled to be paid in the documentation governing such
Indebtedness (after giving effect to any amendments, modifications or waivers
thereto), and shall not include any contingent obligations to repay, redeem or
repurchase any such interest or principal prior to the date originally scheduled
for the payment thereof.

          "Subsidiary," with respect to any Person, means:
           ----------

          (1)  any corporation of which the outstanding Capital Stock having at
    least a majority of the votes entitled to be cast in the election of
    directors under ordinary circumstances shall at the time be owned, directly
    or indirectly, by such Person; or

          (2)  any other Person of which at least a majority of the voting
    interest under ordinary circumstances is at the time, directly or
    indirectly, owned by such Person.

          "Supplemental Indenture" means a supplemental indenture to be
           ----------------------
substantially in the form of this Indenture (except that all references to
Inversion Transactions shall have been deleted) executed and delivered to the
Trustee, pursuant to which each New Parent (i) will become a Guarantor of the
Notes by executing a Guarantee in the form attached as Exhibit E hereto, and
                                                       ---------
(ii) becomes subject to the covenants contained in this Indenture as described
in such supplemental indenture.

          "Surviving Entity" has the meaning given such term in Section
           ----------------
5.01(a)(1)(B).

          "TIA" or "Trust Indenture Act" means the Trust Indenture Act of 1939,
           ---      -------------------
as amended (15 U.S. Code Sections 77aaa-77bbb), as in effect on the date this
Indenture was executed, except as provided in Section 9.06.

          "Transaction Date" has the meaning given such term in the definition
           ----------------
of "Consolidated Fixed Charge Coverage Ratio."

                                      -33-
<PAGE>

          "Transfer Agent" means The Bank of New York in its capacity as
           --------------
transfer agent.

          "Trustee" means the party named as such in the first paragraph of this
           -------
Indenture until a successor replaces it in accordance with the provisions of
Article Seven of this Indenture and thereafter means such successor.

          "Unrestricted Definitive Registered Note" means a Definitive
           ---------------------------------------
Registered Note not bearing the Private Placement Legend issued in registered
form without coupons in a principal amount of . 1,000 or integral multiples
thereof, including, without limitation, the Exchange Notes.

          "Unrestricted Global Note" means one or more Global Note(s) not
           ------------------------
bearing the Private Placement Legend issued in registered form without interest
coupons in a principal amount of . 1,000 or integral multiples thereof, and
deposited with the Common Depositary, including, without limitation, the
Exchange Notes.

          "Unrestricted Notes" means the Unrestricted Global Notes and the
           ------------------

Unrestricted Definitive Registered Notes.

          "Unrestricted Subsidiary" of any Person means:
           -----------------------

          (1)  any Subsidiary of such Person that at the time of determination
shall be or continue to be designated an Unrestricted Subsidiary by the Board of
Directors of such Person in the manner provided below; and

          (2)  any Subsidiary of an Unrestricted Subsidiary.

          The Board of Directors may designate any Subsidiary (including any
newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary
unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien on
any property of, the Company or any other Subsidiary of the Company that is not
a Subsidiary of the Subsidiary to be so designated; provided that:

          (1)  the Company certifies to the Trustee that such designation
     complies with Section 4.05; and

          (2)  each Subsidiary to be so designated and each of its Subsidiaries
     has not at the time of designation, and does not thereafter, create, incur,
     issue, assume, guarantee or otherwise become directly or indirectly liable
     with respect to any Indebtedness pursuant to which the lender has recourse
     to any of the assets of the Company or any of its Restricted Subsidiaries.

                                      -34-
<PAGE>

          The Board of Directors may designate any Unrestricted Subsidiary to be
a Restricted Subsidiary only if:

          (1)  immediately after giving effect to such designation, the Company
     is able to incur at least $1.00 of additional Indebtedness (other than
     Permitted Indebtedness) in compliance with Section 4.03; and

          (2)  immediately before and immediately after giving effect to such
     designation, no Default or Event of Default shall have occurred and be
     continuing.

Any such designation by the Board of Directors shall be evidenced to the Trustee
by promptly filing with the Trustee a copy of the Board Resolution giving effect
to such designation and an Officers' Certificate certifying that such
designation complied with the foregoing provisions.

          "U.S. Global Note(s)" means one or more Global Note(s) bearing the
           -------------------
Private Placement Legend in registered form without interest coupons that will
be issued in a principal amount equal to the outstanding principal amount of the
Initial Notes sold in reliance on Rule 144A and deposited with the Common
Depositary.

          "Weighted Average Life to Maturity" means, when applied to any
           ---------------------------------
Indebtedness at any date, the number of years obtained by dividing (a) the then
outstanding aggregate principal amount of such Indebtedness into (b) the sum of
the total of the products obtained by multiplying (i) the amount of each then
remaining installment, sinking fund, serial maturity or other required payment
of principal, including payment at final maturity, in respect thereof, by (ii)
the number of years (calculated to the nearest one-twelfth) which will elapse
between such date and the making of such payment.

          "Wholly Owned Restricted Subsidiary" of any Person means any Wholly
           ----------------------------------
Owned Subsidiary of such Person which at the time of determination is a
Restricted Subsidiary of such Person.

          "Wholly Owned Subsidiary" of any Person means any Subsidiary of such
           -----------------------
Person of which all the outstanding voting securities (other than (i) in the
case of a Restricted Subsidiary that is incorporated in a jurisdiction other
than a state in the United States or the District of Columbia, directors'
qualifying shares or an immaterial amount of shares required to be owned by
other Persons pursuant to applicable law and (ii) in the case of Potain, also up
to 6.4% of the Capital Stock of Potain) are owned by such Person or any Wholly
Owned Subsidiary of such Person.

          SECTION 1.02.  Incorporation by Reference of Trust Indenture Act.
                         -------------------------------------------------
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture.  The following
TIA terms used in this Indenture have the following meanings:

                                      -35-
<PAGE>

          "indenture notes" means the Notes;

          "indenture note holder" means a Holder or a Noteholder;

          "indenture to be qualified" means this Indenture;

          "indenture trustee" or "institutional trustee" means the Trustee; and

          "obligor" on the indenture securities means the Company or any other
obligor on the Notes.

          All other TIA terms used in this Indenture that are defined by the
TIA, defined by TIA reference to another statute or defined by a rule of the
Commission and not otherwise defined herein have the meanings assigned to them
therein.

          SECTION 1.03.  Rules of Construction.  Unless the context otherwise
                         ---------------------
requires:

          (i)     a term has the meaning assigned to it;

          (ii)    an accounting term not otherwise defined has the meaning
     assigned to it in accordance with GAAP;

          (iii)   "or" is not exclusive;

          (iv)    words in the singular include the plural, and words in the
     plural include the singular;

          (v)     provisions apply to successive related events and
     transactions;

          (vi)    "herein," "hereof" and other words of similar import refer to
     this Indenture as a whole and not to any particular Article, Section or
     other subdivision;

          (vii)   all ratios and computations based on GAAP contained in this
     Indenture shall be computed in accordance with the definition of "GAAP" set
     forth in Section 1.01;

          (viii)  all references to Sections or Articles refer to Sections or
     Articles of this Indenture unless otherwise indicated;

          (ix)    all references to "." or "Euros" refer to the lawful
     currency of a Euro currency country, unless the content expressly
     contemplates otherwise; and

          (x)     all references to "$," "Dollars," "U.S. Dollars" or money
     refer to the lawful currency of the United States, unless the content
     expressly contemplates otherwise.

                                      -36-
<PAGE>

                                  ARTICLE TWO

                                   THE NOTES

     SECTION 2.01.  The Notes.
                    ---------

     (a)  Form and Dating.  The Notes and the Trustee's certificate of
          ---------------
authentication thereon shall be substantially in the form annexed hereto as
Exhibit A with such appropriate insertions, omissions, substitutions and other
---------
variations as are required or permitted by this Indenture. The Notes may have
notations, legends or endorsements required by law, stock exchange agreements to
which the Company is subject or usage. The Company shall approve the form of the
Notes and any notation, legend or endorsement on the Notes. Each Note shall be
dated the date of its authentication.

     The terms and provisions contained in the forms of the Notes annexed
hereto as Exhibit A shall constitute, and are hereby expressly made, a part of
          ---------
this Indenture.  The Global Notes and the Definitive Registered Notes shall be
issued only in registered form.  The Notes shall be issued without coupons.  The
Notes shall be issued only in denominations of . 1,000 principal amount or any
integral multiple thereof.  To the extent applicable, the Company, the
Guarantors and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.

     (b)  Global Notes.  Initial Notes offered and sold in reliance on Rule
          ------------
144A shall be issued in the form of one or more U.S. Global Notes, deposited
with the Common Depositary, as custodian for the Depositaries, duly executed by
the Company and authenticated by the Trustee as hereinafter provided.  The
aggregate principal amount of the U.S. Global Note may from time to time be
increased or decreased by adjustments made on Schedule A to each Global Note, as
hereinafter provided.

     Initial Notes offered and sold in offshore transactions in reliance on
Regulation S shall be issued initially in the form of one or more International
Global Notes deposited with the Common Depositary, as custodian for the
Depositaries, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The aggregate principal amount of the International Global
Note may from time to time be increased or decreased by adjustments made on
Schedule A to each Global Note, as hereinafter provided.

     Unrestricted Global Notes shall be issued in accordance with Section
2.07(b)(iii), 2.07(d)(iii) and 2.07(f), and shall be deposited with the Common
Depositary, as custodian for the Depositaries or their respective nominees, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided.

     Each Global Note shall represent such of the outstanding Notes as
shall be specified therein and each shall provide that it shall represent the
aggregate principal amount

                                      -37-
<PAGE>

outstanding of Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to time
be reduced or increased, as appropriate, to reflect exchanges, transfers of
interests therein, redemptions and repurchases in accordance with the terms of
this Indenture. Any endorsement of Schedule A to a Global Note to reflect the
amount of any increase or decrease in the aggregate principal amount of Notes
represented thereby shall be made by the Trustee, the Paying Agent or the
Registrar in accordance with Sections 2.07 (Transfer and Exchange), 3.04 (Notice
of Redemption), 4.10 (Limitation on Asset Sales) and 4.11 (Repurchase of Notes
upon a Change of Control) hereof.

     Except as set forth in Section 2.07(a) hereof, the Global Notes may be
transferred, in whole and not in part, only to a successor of the Common
Depositary.

     (c)  Definitive Registered Notes.  Definitive Registered Notes issued
          ---------------------------
upon transfer of a Book-Entry Interest or a Definitive Registered Note, or in
exchange for a Book-Entry Interest or a Definitive Registered Note, shall be
issued in accordance with this Indenture, duly executed by the Company and
authenticated by the Trustee as hereinafter provided.  The Definitive Registered
Notes shall be typed, printed, lithographed or engraved or produced by any
combination of these methods or may be produced in any other manner permitted by
the rules of any securities exchange on which the Notes may be listed, all as
determined by the Officers executing such Notes, as evidenced by their execution
of such Notes.

     (d)  Book-Entry Provisions.  Participants and Indirect Participants
          ---------------------
shall have no rights either under this Indenture or under any Global Note with
respect to such Global Note held on their behalf by the Common Depositary.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any Agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or impair, as between the Depositaries and their respective Participants, the
operation of customary practices of such Depositaries governing the exercise of
the rights of an owner of a beneficial interest in any Global Note.  The
Applicable Procedures shall be applicable to Book-Entry Interests that are held
by the Participants through Euroclear or Clearstream.

     SECTION 2.02.  Restrictive Legends.
                    -------------------

     (a)  Private Placement Legend. Except as permitted by subparagraph (b)
          ------------------------
below, each Global Note and each Definitive Registered Note (and all Notes
issued in exchange therefor or substitution thereof) issued under this Indenture
shall bear a legend in substantially the following form:

     THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
     1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE
     OFFERED OR SOLD WITHIN THE

                                      -38-
<PAGE>

     UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT
     AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS
     THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A
     UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING
     THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER
     THE SECURITIES ACT OR (C) IT IS AN ACCREDITED INVESTOR (AS DEFINED IN RULE
     501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT) (AN "ACCREDITED
     INVESTOR"), (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL
     ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT
     (A) TO THE MANITOWOC COMPANY, INC. OR ANY SUBSIDIARY THEREOF, (B) INSIDE
     THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
     RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN
     ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS
     FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED
     LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE
     RESTRICTION ON TRANSFER OF THIS SECURITY (THE FORM OF WHICH LETTER CAN BE
     OBTAINED FROM THE TRUSTEE FOR THIS SECURITY), (D) OUTSIDE THE UNITED STATES
     IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES
     ACT (IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION
     PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (F) IN
     ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
     SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE MANITOWOC
     COMPANY, INC. SO REQUESTS), OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION
     STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH
     PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
     EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY
     WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, IF THE
     PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO
     SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE MANITOWOC COMPANY, INC. SUCH
     CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS THE MANITOWOC
     COMPANY, INC. MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING
     MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT

                                      -39-
<PAGE>

     SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED
     HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON"
     HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT.

          (b)  Notwithstanding the foregoing, any Global Note or Definitive
Registered Note issued pursuant to subparagraph (b)(iii), (c)(ii), (c)(iii),
(d)(ii), (d)(iii) or (f) of Section 2.07 (and all Notes issued in exchange
therefor or substitution thereof) shall not bear the Private Placement Legend.

          Each Global Note, if the Company so elects, may also bear the
following legend on the face thereof:

     THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
     REFERRED TO AND IS REGISTERED IN THE NAME OF A COMMON DEPOSITARY OR A
     NOMINEE OF A COMMON DEPOSITARY.  THIS NOTE IS NOT EXCHANGEABLE FOR
     SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE COMMON
     DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN
     THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS
     NOTE AS A WHOLE TO A COMMON DEPOSITARY OR A NOMINEE OF THE COMMON
     DEPOSITARY OR TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY) MAY
     BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
     INDENTURE.

     THIS NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
     THIS NOTE) IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND
     IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I)
     THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
     SECTIONS 2.01, 2.07, 2.08, 3.04, AND 4.11 OF THE INDENTURE, (II) EXCEPT AS
     OTHERWISE PROVIDED IN THE INDENTURE, THIS GLOBAL NOTE MAY BE EXCHANGED IN
     WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.07 OF THE INDENTURE, (III) THIS
     GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
     SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED
     TO A SUCCESSOR COMMON DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
     COMPANY.

                                      -40-
<PAGE>

          SECTION 2.03.  Execution and Authentication.  The Notes shall be
                         ----------------------------
executed by an Officer or an authorized signatory as identified in an Officers'
Certificate (pursuant to a power of attorney or other similar instrument).  The
signature of any such Officer (or authorized signatory) on the Notes shall be by
manual or facsimile signature in the name and on behalf of the Company.

          If an Officer whose signature is on a Note no longer holds that office
at the time the Trustee or authenticating agent authenticates the Note, the Note
shall be valid nevertheless.

          A Note shall not be valid until the Trustee or authenticating agent
manually signs the certificate of authentication on the Note. The signature
shall be conclusive evidence that the Note has been authenticated under this
Indenture.

          The Trustee or an authenticating agent shall, upon receipt of a
Company Order, authenticate (i) Initial Notes for original issue in aggregate
principal amount not to exceed . 275,000,000, of which . 175,000,000 are being
issued on the Issue Date, (ii) Private Exchange Notes from time to time only in
exchange for a like principal amount of Initial Notes, (iii) Unrestricted Notes
from time to time only (x) in exchange for a like principal amount of Initial
Notes or (y) in an aggregate principal amount of not more than the excess of .
275,000,000 over the sum of the aggregate principal amount of (A) Initial Notes
then outstanding, (B) Private Exchange Notes then outstanding and (C)
Unrestricted Notes issued in accordance with (iii)(x) above, and (iv) Additional
Notes issued pursuant to Section 2.14 hereof. Each such Company Order shall
specify the amount of Notes to be authenticated and the date on which the Notes
are to be authenticated, whether the Notes are to be Initial Notes, Private
Exchange Notes or Unrestricted Notes and whether the Notes are to be issued as
Definitive Registered Notes or Global Notes or such other information as the
Trustee may reasonably request. In addition, with respect to authentication
pursuant to clauses (ii) or (iii) of the first sentence of this paragraph, the
first such written order from the Issuer shall be accompanied by an Opinion of
Counsel of the Issuer in a form reasonably satisfactory to the Trustee stating
that the issuance of the Private Exchange Notes or the Unrestricted Notes, as
the case may be, does not give rise to an Event of Default, complies with this
Indenture and has been duly authorized by the Issuer.

          The Trustee may appoint an authenticating agent to authenticate Notes.
An authenticating agent may authenticate Notes whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by such authenticating agent.  An authenticating agent has the
same rights as an Agent to deal with the Company or an Affiliate of the Company.

          The Notes shall be issuable only in registered form without coupons
and only in minimum denominations of . 1,000 in principal amount and any
integral multiples of . 1,000 in excess thereof.

                                      -41-
<PAGE>

          SECTION 2.04.  Registrar and Paying Agent.  The Company shall
                         --------------------------
maintain an office or agency in London, England, the Borough of Manhattan, The
City of New York and, so long as the Notes are listed on the Luxembourg Stock
Exchange and the rules of such stock exchange require, in Luxembourg, where (a)
Notes may be presented or surrendered for registration of transfer or for
exchange ("Registrar"), (b) Notes may be presented or surrendered for payment
           ---------
(the "Paying Agent") and (c) notices and demands in respect of the Notes and
      ------------
this Indenture may be served. The Registrar shall keep a register or registers
of the Notes and of their transfer and exchange. The Company, upon notice to the
Trustee, may appoint one or more co-Registrars and one or more additional Paying
Agents. The term "Paying Agent" includes any additional Paying Agent. Except as
provided herein, the Company or any Subsidiary may act as Paying Agent,
Registrar or co-Registrar. The Company shall enter into an appropriate agency
agreement with any Agent not a party to this Indenture and the agreement shall
implement the provisions of this Indenture that relate to such Agent and shall
incorporate the provisions of the TIA. Without limiting the foregoing, each such
agreement appointing a Paying Agent must contain provisions substantially to the
effect of Section 2.07 hereof. The Company shall notify the Trustee in writing
of the name and address of any such Agent. If the Company fails to maintain a
Registrar or Paying Agent or fails to give the foregoing notice, the Trustee
shall act as such and shall be entitled to appropriate compensation in
accordance with Section 7.07.

          The Registrar shall keep a register (the "Register") of the Definitive
                                                    --------
Registered Notes and of their transfer and exchange. Any notice to be given
under this Indenture or under the Notes by the Trustee or the Company to
Noteholders shall be mailed by first class mail to each Holder of Definitive
Registered Notes at its address as it appears at the time of such mailing in the
Register, and to the Holders of the Global Notes.

          The Company hereby appoints the corporate trust office of the Trustee
in New York located at the address set forth in Section 13.02 as Registrar,
Paying Agent and Transfer Agent in New York with respect to Definitive
Registered Notes. So long as the Notes are listed on the Luxembourg Stock
Exchange and the rules of such stock exchange so require, the Company shall
maintain a Paying Agent and Transfer Agent in Luxembourg.

          The Company, any Subsidiary of the Company, or any Affiliate of any of
them may act as Registrar or co-Registrar, and/or agent for service of notice
and demands.

          If, at any time, the Trustee is not the Registrar, the Registrar shall
make available to the Trustee on or before each Interest Payment Date and at
such other times as the Trustee may reasonably request, the names and addresses
of the Holders as they appear in the Register.

          SECTION 2.05. Holders to Be Treated as Owners; Payments of Interest.
                         ----------------------------------------------------
The Company, the Paying Agents, the Registrar, the Trustee and any agent of the
Company, the Paying Agents, the Registrar or the Trustee may deem and treat the
person in whose name a

                                      -42-
<PAGE>

Note is registered as the absolute owner of such Note for the purpose of
receiving payment of or on account of the principal of and, subject to the
provisions of this Indenture, interest, Additional Interest, if any on such Note
and for all other purposes; and neither the Company, any Paying Agent, the
Registrar, the Trustee nor any agent of the Company, the Paying Agent, the
Registrar or the Trustee shall be affected by any notice to the contrary. All
such payments so made to any such Person, or upon his order, shall be valid,
and, to the extent of the sum or sums so paid, effectual to satisfy and
discharge the liability for moneys payable upon any Note.

          SECTION 2.06. Paying Agent to Hold Money in Trust. Not later than
                        -----------------------------------
12:00 noon (New York Time) one Business Day prior to each due date of the
principal and interest on any Notes, the Company shall deposit with the Paying
Agent money in immediately available funds sufficient to pay such principal and
interest so becoming due on the due date for payment under the Notes. The
Company shall require each Paying Agent other than the Trustee to agree in
writing that such Paying Agent shall hold in trust for the benefit of the
Holders or the Trustee all money held by the Paying Agent for the payment of
principal of and interest on the Notes (whether such money has been paid to it
by the Company or any other obligor on the Notes), and such Paying Agent shall
promptly notify the Trustee of any default by the Company (or any other obligor
on the Notes) in making any such payment. Money held in trust by any Paying
Agent need not be segregated except as required by law and in no event shall any
Paying Agent be liable for any interest on any money received by it hereunder.
The Company at any time may require a Paying Agent to pay all money held by it
to the Trustee and account for any funds disbursed, and the Trustee may at any
time during the continuance of any payment default, upon written request to a
Paying Agent, require such Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed. Upon doing so, the Paying Agent
shall have no further liability for the money so paid over to the Trustee.

          SECTION 2.07. Transfer and Exchange.
                        ---------------------

          (a)  Transfer and Exchange of Global Notes. Transfers of a Global Note
               -------------------------------------
shall be limited to transfers of such Global Note in whole, but not in part, to
a successor Common Depositary, any or both of the Depositaries, their respective
successors or their respective nominees.

          All Global Notes will be exchanged by the Company for Definitive
Registered Notes if (i) either Euroclear or Clearstream notifies the Company
that it is unwilling or unable to continue to act as a Depositary and a
successor Depositary is not appointed by the Company within 120 days; (ii)
Euroclear or Clearstream so requests following an Event of Default hereunder;
(iii) the Company in its sole discretion determines that the Global Notes should
be exchanged (in whole but not in part) for Definitive Registered Notes; or (iv)
the owner of a Book-Entry Interest requests such exchange in writing delivered
either through Euroclear or Clearstream following an Event of Default hereunder.
Upon the occurrence of any of the pre

                                      -43-
<PAGE>

ceding events, Definitive Registered Notes shall be issued in such names and in
any approved denominations as Euroclear and/or Clearstream shall instruct the
Registrar.

          Global Notes may also be exchanged or replaced, in whole or in part,
as provided in Sections 2.08 and 2.10. Every Note authenticated and delivered in
exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to
Sections 2.08 and 2.10 hereof, shall be authenticated and delivered in the form
of, and shall be, a Global Note. A Global Note may not be exchanged for another
Note other than as provided in this Section 2.07(a).

          (b)  Transfer and Exchange of Book-Entry Interests Between Global
               ------------------------------------------------------------
Notes. Transfers of Book-Entry Interests between Global Notes shall require
compliance with subparagraph (i) below, as well as one or more of the other
following subparagraphs, as applicable:

          (i)  General Provisions Applicable to Transfers and Exchanges of
               -----------------------------------------------------------
     Book-Entry Interests Between Global Notes. In connection with all
     -----------------------------------------
     transfers and exchanges of Book-Entry Interests (other than transfers of
     Book-Entry Interests in connection with which the transferor takes delivery
     thereof in the form of a Book-Entry Interest in the same Global Note or
     transfers or exchanges resulting in the delivery of one or more Definitive
     Registered Notes), the transferor of such Book-Entry Interest must deliver
     to the Registrar (1) a written and/or electronic order from a Participant
     or an Indirect Participant given to either Depositary in accordance with
     the Applicable Procedures directing such Depositary to debit or cause to be
     debited a Book-Entry Interest in a Global Note in an amount equal to the
     Book-Entry Interest to be transferred or exchanged, (2) a written and/or
     electronic order from a Participant or an Indirect Participant given to
     either Depositary in accordance with the Applicable Procedures directing
     such Depositary to credit or cause to be credited a Book-Entry Interest in
     another Global Note in an amount equal to the Book-Entry Interest to be
     transferred or exchanged and (3) written and/or electronic instructions
     given in accordance with the Applicable Procedures containing information
     regarding the Participant account to be credited with such increase.

          The requirements of this Section 2.07(b)(i) shall be deemed to have
     been satisfied in connection with the Exchange Offer upon receipt by the
     Registrar of instructions contained in a Letter of Transmittal delivered by
     any Holder tendering Book-Entry Interests in a Restricted Global Note in
     the Exchange Offer.

          (ii)     Transfer of Book-Entry Interests to Another Restricted Global
                   -------------------------------------------------------------
     Note.  A Book-Entry Interest in any Restricted Global Note may be
     ----
     transferred to a Person who takes delivery thereof in the form of a Book-
     Entry Interest in a different Restricted Global Note if the transfer
     complies with the requirements of Section 2.07(b)(i) above and the
     Registrar receives the following:

                                      -44-
<PAGE>

               (A)  if the transferee will take delivery in the form of a Book-
          Entry Interest in the U.S. Global Note, then the transferor must
          deliver a certificate in the form of Exhibit B hereto, including the
                                               ---------
          certifications in item (1) or (3) thereof; and

               (B)  if the transferee will take delivery in the form of a Book-
          Entry Interest in an International Global Note, then the transferor
          must deliver a certificate in the form of Exhibit B hereto, including
                                                    ---------
          the certifications in item (2) thereof.

          Upon satisfaction of the conditions set forth in this Section
     2.07(b)(ii), the Registrar shall (i) instruct the Common Depositary to
     deliver the relevant Global Note(s) to the Trustee, (ii) instruct the
     Trustee to endorse (and the Trustee shall endorse) Schedule A to the
     relevant Global Note(s) to reflect the relevant increase or decrease in the
     principal amount of such Global Note resulting from the applicable
     transfer, and (iii) thereafter, instruct the Trustee to return (and the
     Trustee shall return) the Global Note(s) to the Common Depositary, together
     with all information regarding the Participant accounts to be credited and
     debited in connection with such transfer.

            (iii)  Transfer and Exchange of Book-Entry Interests in a Restricted
                   -------------------------------------------------------------
     Global Note for Book-Entry Interests in an Unrestricted Global Note.  A
     -------------------------------------------------------------------
     Book-Entry Interest in any Restricted Global Note may be exchanged by any
     holder thereof for a Book-Entry Interest in an Unrestricted Global Note or
     transferred to a Person who takes delivery thereof in the form of a Book-
     Entry Interest in an Unrestricted Global Note if the exchange or transfer
     complies with the requirements of Section 2.07(b)(i) above and:

               (A)  such exchange or transfer is effected pursuant to the
          Exchange Offer in accordance with the Registration Rights Agreement
          and the holder of the Book-Entry Interest to be transferred, in the
          case of an exchange, or the transferee, in the case of a transfer,
          certifies in the applicable Letter of Transmittal that it is not (1) a
          Broker-Dealer that acquired the Book-Entry Interests tendered in the
          Exchange Offer directly from the Company or an Affiliate of the
          Company, (2) a Person participating in the distribution of the
          Exchange Notes or (3) a Person who is an affiliate (as defined in Rule
          144) of the Company; or

               (B)  such transfer is effected pursuant to the Shelf Registration
          in accordance with the Registration Rights Agreement or pursuant to
          another effective registration statement under the Securities Act and
          in compliance with the prospectus delivery requirements of the
          Securities Act and the transferor delivers a certificate in the form
          of Exhibit B hereto including the certifications contained in item (4)
             ---------
          thereof; or

                                      -45-
<PAGE>

               (C)  such transfer is effected by a Broker-Dealer pursuant to the
          Exchange Offer Registration Statement in accordance with the
          Registration Rights Agreement.

          Upon satisfaction of the conditions set forth in this Section
     2.07(b)(iii), the Registrar shall (i) instruct the Common Depositary to
     deliver the relevant Global Note(s) to the Trustee, (ii) instruct the
     Trustee to endorse (and the Trustee shall endorse) Schedule A to the
     relevant Global Note(s) to reflect the relevant increase or decrease in
     principal amount of such Global Note resulting from the applicable
     transfer, and (iii) thereafter, instruct the Trustee to return (and the
     Trustee shall return) the Global Note(s) to the Common Depositary, together
     with all information regarding the Participant accounts to be credited and
     debited in connection with such transfer.

          If any such transfer or exchange is effected pursuant to this Section
     2.07(b)(iii) at a time when an Unrestricted Global Note has not yet been
     issued, the Registrar shall so inform the Trustee and the Company and,
     thereafter, the Company shall issue and, upon receipt of a Company Order
     from the Company in accordance with Section 2.03 hereof, the Trustee shall
     authenticate one or more Unrestricted Global Notes in an aggregate
     principal amount equal to the aggregate principal amount of Book-Entry
     Interests to be transferred or exchanged.

          Book-Entry Interests in an Unrestricted Global Note cannot be
     exchanged for, or transferred to Persons who take delivery thereof in the
     form of, a Book-Entry Interest in a Restricted Global Note.

          (c)  Transfer or Exchange of Book-Entry Interests for Definitive
               -----------------------------------------------------------
Registered Notes.  In connection with a transfer or exchange of a Book-Entry
----------------
Interest for a Definitive Registered Note, the Registrar must receive (1) a
written and/or electronic order from a Participant or an Indirect Participant
given to either Depositary in accordance with the Applicable Procedures
directing such Depositary to debit or cause to be debited a Book-Entry Interest
in an amount equal to the Book-Entry Interest to be transferred or exchanged,
(2) a written order directing the Registrar to issue or cause to be issued a
Definitive Registered Note in an amount equal to the Book-Entry Interest to be
transferred or exchanged and (3) instructions containing information regarding
the Person in whose name such Definitive Registered Note shall be registered to
effect the transfer or exchange referred to above.

            (i)  Book-Entry Interests in Restricted Global Notes to Restricted
                 -------------------------------------------------------------
     Definitive Registered Notes.  A holder of a Book-Entry Interest in a
     ---------------------------
     Restricted Global Note may exchange such Book-Entry Interest for a
     Restricted Definitive Registered Note or transfer such Book-Entry Interest
     to a Person who takes delivery thereof in the form of a Restricted
     Definitive Registered Note, if the exchange or transfer complies with the
     first paragraph of this Section 2.07(c) and:

                                      -46-
<PAGE>

               (A)  if the holder of such Book-Entry Interest in a Restricted
          Global Note proposes to exchange such Book-Entry Interest for a
          Restricted Definitive Registered Note, a certificate from such holder
          in the form of Exhibit C hereto, including the certifications in item
                         ---------
          (1)(a) thereof;

               (B)  if such Book-Entry Interest is being transferred to a QIB in
          accordance with Rule 144A under the Securities Act, a certificate to
          the effect set forth in Exhibit B hereto, including the certifications
                                  ---------
          in item (1) thereof;

               (C)  if such Book-Entry Interest is being transferred in an
          offshore transaction in accordance with Rule 903 or Rule 904 under the
          Securities Act, a certificate to the effect set forth in Exhibit B
                                                                   ---------
          hereto, including the certifications in item (2) thereof;

               (D)  if such Book-Entry Interest is being transferred pursuant to
          an exemption from the registration requirements of the Securities Act
          in accordance with Rule 144 under the Securities Act, a certificate to
          the effect set forth in Exhibit B hereto, including the certifications
                                  ---------
          in item (3)(a) thereof;

               (E) if such Book-Entry Interest is being transferred to the
          Company or any of its Subsidiaries, a certificate to the effect set
          forth in Exhibit B hereto, including the certifications in item (3)(b)
                   ---------
          thereof; or

               (F)  if such Book-Entry Interest is being transferred in reliance
          on an exemption from the registration requirements of the Securities
          Act other than those listed in subparagraphs (B) through (E) above, a
          certificate to the effect set forth in Exhibit B hereto, including the
                                                 ---------
          certifications, certificates and Opinion of Counsel required by item
          (3)(c) thereof, if applicable.

          Upon satisfaction of the conditions set forth in this Section
     2.07(c)(i), the Registrar shall (i) instruct the Common Depositary to
     deliver the relevant Global Note(s) to the Trustee, (ii) instruct the
     Trustee to endorse (and the Trustee shall endorse) Schedule A to the
     relevant Global Note(s) to reflect the relevant decrease in the principal
     amount of such Global Note resulting from the applicable transfer or
     exchange, (iii) thereafter, instruct the Trustee to return (and the Trustee
     shall return) the Global Notes to the Common Depositary, together with all
     information regarding the Participant accounts to be debited in connection
     with such exchange or transfer and (iv) deliver to the Registrar
     instructions received by it from the relevant Depositary that contain
     information regarding the Person in whose name Definitive Registered Notes
     shall be registered to effect such transfer or exchange.

          The Company shall issue and the Trustee shall authenticate one or more
     Definitive Registered Notes in an aggregate principal amount equal to the
     aggregate prin

                                      -47-
<PAGE>

     cipal amount of Book-Entry Interests so transferred or exchanged and in the
     names set forth in the instructions received by the Registrar.

            (ii) Book-Entry Interests in Restricted Global Notes to Unrestricted
                 ---------------------------------------------------------------
     Definitive Registered Notes.  A holder of a Book-Entry Interest in a
     ---------------------------
     Restricted Global Note may exchange such Book-Entry Interest for an
     Unrestricted Definitive Registered Note or may transfer such Book-Entry
     Interest to a Person who takes delivery thereof in the form of an
     Unrestricted Definitive Registered Note if the exchange or transfer
     complies with the first paragraph of this Section 2.07(c) and:

               (A)  such exchange or transfer is effected pursuant to the
          Exchange Offer in accordance with the Registration Rights Agreement
          and the holder of such Book-Entry Interest, in the case of an
          exchange, or the transferee, in the case of a transfer, certifies in
          the applicable Letter of Transmittal that it is not (1) a Broker-
          Dealer that acquired the Book-Entry Interests tendered in the Exchange
          Offer directly from the Company or an Affiliate of the Company, (2) a
          Person participating in the distribution of the Exchange Notes or (3)
          a Person who is an affiliate (as defined in Rule 144) of the Company;

               (B)  such transfer is effected pursuant to the Shelf Registration
          in accordance with the Registration Rights Agreement or pursuant to
          another effective registration statement under the Securities Act and
          in compliance with the prospectus delivery requirements of the
          Securities Act and the transferor delivers a certificate in the form
          of Exhibit B hereto including the certifications contained in item (4)
             ---------
          thereof; or

               (C)  such transfer is effected by a Broker-Dealer pursuant to the
          Exchange Offer Registration Statement in accordance with the
          Registration Rights Agreement.

          Upon satisfaction of the conditions set forth in this Section
     2.07(c)(ii), the Registrar shall (i) instruct the Common Depositary to
     deliver the relevant Global Note(s) to the Trustee, (ii) instruct the
     Trustee to endorse (and the Trustee shall endorse) Schedule A to the
     relevant Global Note(s) to reflect the relevant decrease in the principal
     amount of such Global Note resulting from the applicable exchange or
     transfer, (iii) thereafter, instruct the Trustee to return (and the Trustee
     shall return) the Global Notes to the Common Depositary, together with all
     information regarding the Participant accounts to be debited in connection
     with such exchange or transfer and (iv) deliver to the Registrar
     instructions received by it from the relevant Depositary that contain
     information regarding the Person in whose name Definitive Registered Notes
     shall be registered to effect such transfer or exchange.

                                      -48-
<PAGE>

          The Company shall issue and the Trustee shall authenticate one or more
     Definitive Registered Notes in an aggregate principal amount equal to the
     aggregate principal amount of Book-Entry Interests so transferred or
     exchanged and in the names set forth in the instructions received by the
     Registrar.

            (iii)  Book-Entry Interests in Unrestricted Global Notes to
                   ----------------------------------------------------
     Unrestricted Definitive Registered Notes.  A holder of a Book-Entry
     ----------------------------------------
     Interest in an Unrestricted Global Note may exchange such Book-Entry
     Interest for an Unrestricted Definitive Registered Note or transfer such
     Book-Entry Interest to a Person who takes delivery thereof in the form of
     an Unrestricted Definitive Registered Note upon the satisfaction of the
     conditions set forth in the first paragraph of this Section 2.07(c).  Upon
     satisfaction of the conditions set forth in this Section 2.07(c)(iii), the
     Registrar shall (i) instruct the Common Depositary to deliver the relevant
     Global Note(s) to the Trustee, (ii) instruct the Trustee to endorse (and
     the Trustee shall endorse) Schedule A to the relevant Global Note(s) to
     reflect the relevant decrease in the principal amount of such Global Note
     resulting from the applicable transfer or exchange, (iii) thereafter,
     instruct the Trustee to return (and the Trustee shall return) the Global
     Note(s) to the Common Depositary, together with all information regarding
     the Participant accounts to be debited in connection with such exchange or
     transfer and (iv) deliver to the Registrar instructions received by it from
     the relevant Depositary that contain information regarding the Person in
     whose name Definitive Registered Notes shall be registered to effect such
     transfer or exchange.

          The Company shall issue and the Trustee shall authenticate, one or
     more Definitive Registered Notes in an aggregate principal amount equal to
     the aggregate principal amount of Book-Entry Interests so transferred or
     exchanged and in the names set forth in the instructions received by the
     Registrar.

          (d)  Transfer and Exchange of Definitive Registered Notes for Book-
               -------------------------------------------------------------
Entry Interests.  In connection with any transfer or exchange of Definitive
---------------
Registered Notes for Book-Entry Interests, the Holder of such Notes shall
surrender to the Registrar such Definitive Registered Notes duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the
Registrar duly executed by such Holder or by its attorney, duly authorized in
writing.  In addition, the Holder of such Definitive Registered Notes must
deliver written and/or electronic orders directing the Depositary to credit the
account of the transferee Participant in an amount equal to the Book-Entry
Interest to be created and identifying the Participant account to be credited.

            (i) Restricted Definitive Registered Notes to Book-Entry Interests
                --------------------------------------------------------------
     in Restricted Global Notes.  A Holder of Restricted Definitive Registered
     --------------------------
     Notes may exchange such Notes for a Book-Entry Interest in a Restricted
     Global Note or transfer such Restricted Definitive Registered Notes to a
     Person who takes delivery thereof in

                                      -49-
<PAGE>

     the form of a Book-Entry Interest in a Restricted Global Note, if the
     exchange or transfer complies with the first paragraph of this Section
     2.07(d) and:

               (A)  if the Holder of such Restricted Definitive Registered Note
          proposes to exchange such Note for a Book-Entry Interest in a
          Restricted Global Note, a certificate from such Holder in the form of
          Exhibit C hereto, including the certifications in item (1)(b) thereof;
          ---------

               (B)  if such Restricted Definitive Registered Note is being
          transferred to a QIB in accordance with Rule 144A under the Securities
          Act, a certificate to the effect set forth in Exhibit B hereto,
                                                        ---------
          including the certifications in item (1) thereof;

               (C)  if such Restricted Definitive Registered Note is being
          transferred in an offshore transaction in accordance with Rule 903 or
          Rule 904 under the Securities Act, a certificate to the effect set
          forth in Exhibit B hereto, including the certifications in item (2)
                   ---------
          thereof;

               (D)  if such Restricted Definitive Registered Note is being
          transferred pursuant to an exemption from the registration
          requirements of the Securities Act in accordance with Rule 144 under
          the Securities Act, a certificate to the effect set forth in Exhibit B
                                                                       ---------
          hereto, including the certifications in item (3)(a) thereof;

               (E)  if such Restricted Definitive Registered Note is being
          transferred to the Company or any of its Subsidiaries, a certificate
          to the effect set forth in Exhibit B hereto, including the
                                     ---------
          certifications in item (3)(b) thereof;

               (F)  if such Restricted Definitive Registered Note is being
          transferred in reliance on an exemption from the registration
          requirements of the Securities Act other than those listed in
          subparagraphs (B) through (E) above, a certificate to the effect set
          forth in Exhibit B hereto, including the certifications, certificates
                   ---------
          and Opinion of Counsel required by item (3)(c) thereof, if applicable.

          Upon satisfaction of all the requirements set forth in this Section
     2.07(d)(i), the Registrar shall (i) deliver the Definitive Registered Notes
     surrendered for exchange or transfer to the Trustee for cancellation
     pursuant to Section 2.11 hereof, (ii) record such transfer or exchange on
     the Register, (iii) instruct the Common Depositary to deliver to it (x) in
     the case of clause (C) above, the International Global Note and (y) in all
     other cases, the U.S. Global Note, (iv) endorse Schedule A to such Global
     Note to reflect the increase in principal amount resulting from such
     transfer or exchange, and (v) thereafter, return the Global Note(s) to the
     Common Depositary, together with all informa

                                      -50-
<PAGE>

     tion regarding the Participant accounts to be credited in connection with
     such exchange or transfer.

          (ii)   Restricted Definitive Registered Notes to Book-Entry Interests
                 --------------------------------------------------------------
     in Unrestricted Global Notes.  A Holder of a Restricted Definitive
     ----------------------------
     Registered Note may exchange such Note for a Book-Entry Interest in an
     Unrestricted Global Note or transfer such Restricted Definitive Registered
     Note to a Person who takes delivery thereof in the form of a Book-Entry
     Interest in an Unrestricted Global Note if the exchange or transfer
     complies with the first paragraph of this Section 2.07(d) and:

                 (A) such exchange or transfer is effected pursuant to the
          Exchange Offer in accordance with the Registration Rights Agreement
          and the Holder, in the case of an exchange, or the transferee, in the
          case of a transfer, certifies in the applicable Letter of Transmittal
          that it is not (1) a Broker-Dealer that acquired the Book-Entry
          Interests tendered in the Exchange Offer directly from the Company or
          an Affiliate of the Company, (2) a Person participating in the
          distribution of the Exchange Notes or (3) a Person who is an affiliate
          (as defined in Rule 144) of the Company;

                 (B) such transfer is effected pursuant to the Shelf
          Registration in accordance with the Registration Rights Agreement or
          pursuant to another effective registration statement under the
          Securities Act and in compliance with the prospectus delivery
          requirements of the Securities Act and the transferor delivers a
          certificate in the form of Exhibit B hereto including the
                                     ---------
          certifications contained in item (4) thereof; or

                 (C) such transfer is effected by a Broker-Dealer pursuant to
          the Exchange Offer Registration Statement in accordance with the
          Registration Rights Agreement.

          Upon satisfaction of all the requirements set forth in this Section
     2.07(d)(ii), the Registrar shall (i) deliver the Definitive Registered
     Notes surrendered for exchange or transfer to the Trustee for cancellation
     pursuant to Section 2.11 hereof, (ii) record such transfer or exchange on
     the Register, (iii) instruct the Common Depositary to deliver the relevant
     Global Note(s), (iv) endorse Schedule A to such Global Note to reflect the
     increase in principal amount resulting from such transfer or exchange, and
     (v) thereafter, return the Global Notes to the Common Depositary, together
     with all information regarding the Participant accounts to be credited in
     connection with such exchange or transfer.

          If any such transfer is effected pursuant to this Section 2.07(d)(ii)
     at a time when an Unrestricted Global Note has not yet been issued, the
     Registrar shall so inform the Trustee and the Company and, thereafter, the
     Company shall issue and, upon

                                      -51-
<PAGE>

     receipt of a Company Order from the Company in accordance with Section 2.03
     hereof, the Trustee shall authenticate one or more Unrestricted Global
     Notes in an aggregate principal amount equal to the aggregate principal
     amount of Book-Entry Interests to be transferred or exchanged.

          (iii)  Unrestricted Definitive Registered Notes to Book-Entry
                 ------------------------------------------------------
     Interests in Unrestricted Global Notes.  A Holder of an Unrestricted
     --------------------------------------
     Definitive Registered Note may exchange such Note for a Book-Entry Interest
     in an Unrestricted Global Note or transfer such Definitive Registered Note
     to a Person who takes delivery thereof in the form of a Book-Entry Interest
     in an Unrestricted Global Note if the exchange or transfer complies with
     the first paragraph of this Section 2.07(d).  Upon satisfaction of all the
     requirements set forth in this Section 2.07(d)(iii), the Registrar shall
     (i) deliver the Definitive Registered Note surrendered for exchange or
     transfer to the Trustee for cancellation pursuant to Section 2.11 hereof,
     (ii) record such transfer or exchange on the Register, (iii) instruct the
     Common Depositary to deliver the relevant Global Note(s), (iv) endorse
     Schedule A to such Global Note to reflect the increase in principal amount
     resulting from such transfer or exchange, and (v) thereafter, return the
     Global Notes to the Common Depositary, together with all information
     regarding the Participant accounts to be credited in connection with such
     exchange or transfer.

          If any such transfer is effected pursuant to this Section 2.07(d)(iii)
     at a time when an Unrestricted Global Note has not yet been issued, the
     Registrar shall so inform the Trustee and the Company and, thereafter, the
     Company shall issue and, upon receipt of a Company Order from the Company
     in accordance with Section 2.03 hereof, the Trustee shall authenticate one
     or more Unrestricted Global Notes in an aggregate principal amount equal to
     the aggregate principal amount of Book-Entry Interests to be transferred or
     exchanged.

          (e)    Transfer and Exchange of Definitive Registered Notes for
                 --------------------------------------------------------
Definitive Registered Notes.  In connection with any transfer or exchange of
---------------------------
Definitive Registered Notes for Definitive Registered Notes, the Holder of such
Notes shall surrender to the Registrar the Definitive Registered Notes for
transfer or exchange duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing.  In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.07(e).  Upon request by a Holder of Definitive Registered Notes and such
Holder's compliance with the provisions of this Section 2.07(e), the Registrar
shall register the transfer or exchange of Definitive Registered Notes.

          (i)    Restricted Definitive Registered Notes to Restricted Definitive
                 ---------------------------------------------------------------
     Registered Notes.  Any Restricted Definitive Registered Note may be
     ----------------
     transferred to and registered in the name of Persons who take delivery
     thereof in the form of a Restricted

                                      -52-
<PAGE>

     Definitive Registered Note if the exchange or transfer complies with the
     first paragraph of this Section 2.07(e) and the Registrar receives the
     following:

                 (A) if the transfer will be made pursuant to Rule 144A under
          the Securities Act, then the transferor must deliver a certificate in
          the form of Exhibit B hereto, including the certifications in item (1)
                      ---------
          thereof;

                 (B) if the transfer will be made pursuant to Rule 903 or Rule
          904, then the transferor must deliver a certificate in the form of
          Exhibit B hereto, including the certifications in item (2) thereof;
          ---------
          and

                 (C) if the transfer will be made pursuant to any other
          exemption from the registration requirements of the Securities Act,
          then the transferor must deliver a certificate in the form of Exhibit
                                                                        -------
          B hereto, including the certifications, certificates and Opinion of
          -
          Counsel required by item (3) thereof, if applicable.

          (ii)   Restricted Definitive Registered Notes to Unrestricted
                 ------------------------------------------------------
     Definitive Registered Notes.  Any Restricted Definitive Registered Note may
     ---------------------------
     be exchanged by the Holder thereof for an Unrestricted Definitive
     Registered Note or transferred to a Person or Persons who take delivery
     thereof in the form of an Unrestricted Definitive Registered Note if:

                 (A) such exchange or transfer is effected pursuant to the
          Exchange Offer in accordance with the Registration Rights Agreement
          and the Holder, in the case of an exchange, or the transferee, in the
          case of a transfer, certifies in the applicable Letter of Transmittal
          that it is not (1) a Broker-Dealer that acquired the Book-Entry
          Interests tendered in the Exchange Offer directly from the Company or
          an Affiliate of the Company, (2) a Person participating in the
          distribution of the Exchange Notes or (3) a Person who is an affiliate
          (as defined in Rule 144) of the Company;

                 (B) any such transfer is effected pursuant to the Shelf
          Registration in accordance with the Registration Rights Agreement or
          pursuant to another effective registration statement under the
          Securities Act and in compliance with the prospectus delivery
          requirements of the Securities Act and the transferor delivers a
          certificate in the form of Exhibit B hereto including the
                                     ---------
          certifications contained in item (4) thereof; or

                 (C) any such transfer is effected by a Broker-Dealer pursuant
          to the Exchange Offer Registration Statement in accordance with the
          Registration Rights Agreement.

                                      -53-
<PAGE>

            (iii)  Unrestricted Definitive Registered Notes to Unrestricted
                   --------------------------------------------------------
     Definitive Registered Notes.  A Holder of Unrestricted Definitive
     ---------------------------
     Registered Notes may transfer such Notes to a Person who takes delivery
     thereof in the form of an Unrestricted Definitive Registered Note.  Upon
     compliance with the first paragraph of this Section 2.07(e) and receipt of
     a request to register such a transfer, the Registrar shall register the
     Unrestricted Definitive Registered Notes pursuant to the instructions from
     the Holder thereof.

            (f)    Exchange Offer.  Upon the occurrence of the Exchange Offer in
                   --------------
accordance with the Registration Rights Agreement, the Company shall issue and,
upon receipt of a Company Order in accordance with Section 2.03, the Trustee
shall authenticate (i) one or more Unrestricted Global Notes in an aggregate
principal amount equal to the corresponding principal amount of the Book-Entry
Interests in the Restricted Global Notes tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not Broker-
Dealers that acquired the Book-Entry Interests tendered in the Exchange Offer
directly from the Company or an Affiliate of the Company, (y) they are not
participating in a distribution of the Exchange Notes and (z) they are not
affiliates (as defined in Rule 144) of the Company and (ii) Unrestricted
Definitive Registered Notes in an aggregate principal amount equal to the
corresponding principal amount of the Restricted Definitive Registered Notes
tendered for exchange by Persons who certify to the effect set forth in (i) of
this subsection (f) and accepted for exchange in the Exchange Offer.

            In addition, the Trustee shall (i) endorse Schedule A to the
Unrestricted Global Notes issued pursuant to the preceding paragraph to reflect
the principal amount of Restricted Global Notes tendered in the Exchange Offer,
(ii) deliver such Unrestricted Global Notes to the Common Depositary, (iii)
instruct the Common Depositary to deliver the relevant Restricted Global Note(s)
to the Trustee, (iv) endorse Schedule A to such Restricted Global Note(s) to
reflect the decrease in principal amount resulting from the Exchange Offer, and
(v) thereafter, return the Restricted Global Notes to the Common Depositary,
together with all information regarding the Participant accounts to be debited
and credited in connection with the Exchange Offer.

            (g)    General Provisions Relating to All Transfers and Exchanges.
                   ----------------------------------------------------------

            (i)    To permit registrations of transfers and exchanges, the
     Company shall execute and the Trustee shall authenticate Global Notes or
     Definitive Registered Notes, as the case may be, in each case, in
     accordance with Section 2.03 hereof.

            (ii)   No service charge shall be made to a Holder for any
     registration of transfer or exchange, but the Company may require payment
     of a sum sufficient to cover any stamp or transfer tax, duty or
     governmental charge payable in connection therewith (other than any such
     stamp or transfer taxes, duties or similar governmental

                                      -54-
<PAGE>

     charge payable upon exchange or transfer pursuant to Sections 2.10, 3.08,
     4.10, 4.11 and 9.04 hereof).

            (iii)  All Global Notes and Definitive Registered Notes issued upon
     any registration of transfer or exchange of Global Notes or Definitive
     Registered Notes shall be the valid obligations of the Company, evidencing
     the same debt, and entitled to the same benefits under this Indenture, as
     the Global Notes or Definitive Registered Notes surrendered upon such
     registration of transfer or exchange.

            (iv)   The Company shall not be required (A) to register the
     transfer of or to exchange Notes during a period beginning at the opening
     of business 15 days before any redemption date under Section 3.08 and
     ending at the close of business on the redemption date, (B) to register the
     transfer of or to exchange any Note during a period beginning at the
     opening of business 15 days before any mailing of a notice of redemption of
     Notes for partial redemption under Section 3.08 and ending on the day of
     such selection, (C) to register the transfer of or to exchange a Note
     during a period beginning at the opening of business on a record date for
     the payment of interest and the applicable succeeding Interest Payment
     Date, or (D) to register the transfer of or to exchange a Note that has
     been tendered in an Asset Sale Offer or a Change of Control Offer.

            (v)    Prior to due presentment for the registration of a transfer
     of any Note, the Trustee, the Paying Agents, the Registrar, any Agent and
     the Company may deem and treat the Person in whose name any Note is
     registered as the absolute owner of such Note for the purpose of receiving
     payment of principal of and interest on such Notes and for all other
     purposes, and none of the Trustee, the Paying Agents, the Registrar, any
     Agent or the Company shall be affected by notice to the contrary.

            SECTION 2.08.  Replacement Notes.  If a mutilated Note is
                           -----------------
surrendered to the Trustee or if the Holder claims that the Note has been lost,
destroyed or wrongfully taken, the Company shall issue and the Trustee shall
authenticate a replacement Note of like tenor and amount and bearing a number
not contemporaneously outstanding; provided that the requirements of this
Section 2.08 are met.  If required by the Trustee or the Company, an indemnity
bond must be furnished that is sufficient in the judgment of both the Trustee
and the Company to protect the Company, the Guarantors, the Trustee or any Agent
from any loss that any of them may suffer if a Note is replaced.  The Company
may charge such Holder for its expenses and the expenses of the Trustee in
replacing a Note.  In case any such mutilated, lost, destroyed or wrongfully
taken Note has become or is about to become due and payable, the Company in its
discretion may pay such Note instead of issuing a new Note in replacement
thereof.

            Every replacement Note is an additional obligation of the Company
and shall be entitled to the benefits of this Indenture.

                                      -55-
<PAGE>

            SECTION 2.09. Outstanding Notes.  Notes outstanding at any time are
                          -----------------
all Notes that have been authenticated by the Trustee except for those cancelled
by it, those delivered to it for cancellation and those described in this
Section 2.09 as not outstanding.

            If a Note is replaced pursuant to Section 2.08, it ceases to be
outstanding unless and until the Trustee and the Company receive proof
satisfactory to them that the replaced Note is held by a bona fide purchaser.

            If the Paying Agent (other than the Company or an Affiliate of the
Company) holds on any redemption date, the maturity date or any date of
repurchase money sufficient to pay Notes payable on that date, then on and after
that date such Notes cease to be outstanding and interest on them shall cease to
accrue.

            A Note does not cease to be outstanding because the Company or one
of its Affiliates holds such Note; provided, however, that, in determining
whether the Holders of the requisite principal amount of the outstanding Notes
have given any request, demand, authorization, direction, notice, consent or
waiver hereunder, Notes owned by the Company or any other obligor upon the Notes
or any Affiliate of the Company or of such other obligor shall be disregarded
and deemed not to be outstanding, except that, in determining whether the
Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes which a
Responsible Officer of the Trustee has actual knowledge or has received written
notice to be so owned shall be so disregarded. The Company shall notify the
Trustee when it, any obligor or any of their respective Affiliates acquires any
Notes. Notes so owned which have been pledged in good faith may be regarded as
outstanding if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right so to act with respect to such Notes and that the pledgee is not
the Company or any other obligor upon the Notes or any Affiliate of the Company
or of such other obligor.

            SECTION 2.10. Temporary Notes.  Until definitive permanent Notes
                          ---------------
are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Notes.  Temporary Notes shall be substantially in the
form of definitive permanent Notes but may have insertions, substitutions,
omissions and other variations determined to be appropriate by the officers
executing the temporary Notes, as evidenced by their execution of such temporary
Notes.  If temporary Notes are issued, the Company shall cause definitive
permanent notes to be prepared without unreasonable delay.  After the
preparation of definitive permanent Notes, the temporary Notes shall be
exchangeable for definitive permanent Notes upon surrender of the temporary
Notes at the office or agency of the Company designated for such purpose
pursuant to Section 4.02, without charge to the Holder.  Upon surrender for
cancellation of any one or more temporary Notes, the Company shall execute and
the Trustee shall authenticate and make available for delivery in exchange
therefor a like principal amount of definitive permanent Notes of authorized
denominations.  Until so exchanged, the temporary Notes shall be entitled to the
same benefits under this Indenture as definitive permanent Notes.

                                      -56-
<PAGE>

          SECTION 2.11.  Cancellation.  The Company at any time may deliver to
                         ------------
the Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee for cancellation any Notes previously authenticated
hereunder which the Company has not issued and sold.  The Registrar and the
Paying Agent shall forward to the Trustee any Notes surrendered to them for
transfer, exchange or payment.  The Trustee shall cancel all Notes surrendered
for transfer, exchange, payment or cancellation in accordance with its normal
procedure.

          At such time as all Book-Entry Interests therein have been exchanged
for Definitive Registered Notes, a Global Note shall be returned to or retained
and canceled by the Trustee in accordance with this Section 2.11.

          SECTION 2.12.  ISIN Numbers and Common Codes.  The Company in
                         -----------------------------
issuing the Notes may use "ISIN" numbers or Common Codes (if then generally in
use), and the Trustee shall use the same in notices of redemption or exchange as
a convenience to Holders; provided that any such notice shall state that no
representation is made as to the correctness of such numbers either as printed
on the Notes or as contained in any notice of redemption or exchange and that
reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption shall not be affected by any defect or omission
of such numbers.  The Company shall promptly notify the Trustee in writing of
any change in the "ISIN" numbers or Common Codes.

          SECTION 2.13.  Defaulted Interest.  If the Company defaults on a
                         ------------------
payment of interest on the Notes, it shall pay, or shall deposit with the Paying
Agent money in immediately available funds sufficient to pay the defaulted
interest, plus (to the extent lawful) any interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date.  A
special record date, as used in this Section 2.13 with respect to the payment of
any defaulted interest, shall mean the 15th day next preceding the date fixed by
the Company for the payment of defaulted interest, whether or not such day is a
Business Day.  At least 15 days before the subsequent special record date, the
Company shall mail to each Holder and to a Responsible Officer of the Trustee a
notice that states the subsequent special record date, the payment date and the
amount of defaulted interest to be paid.

          SECTION 2.14.  Issuance of Additional Notes.  The Company shall be
                         ----------------------------
entitled to issue Additional Notes under this Indenture which shall have
identical terms as the Notes issued on the Issue Date, other than with respect
to the date of issuance, issue price, and amount of interest payable on the
first payment date applicable thereto (and, if such Additional Notes shall be
issued in the form of Exchange Notes, other than with respect to transfer
restrictions); provided that such issuance is not prohibited by Section 4.03.
The Initial Notes issued on the Issue Date, any Additional Notes and all
Exchange Notes issued in exchange therefor shall be treated as a single class
for all purposes under this Indenture.

                                      -57-
<PAGE>

          With respect to any Additional Notes, the Company shall set forth in a
resolution of its Board of Directors and in a Company Order, a copy of each of
which shall be delivered to the Trustee, the following information:

          (1) the aggregate principal amount of such Additional Notes to be
     authenticated and delivered pursuant to this Indenture;

          (2) the issue price, the issue date and the ISIN number or Common
     Code of such Additional Notes and the amount of interest payable on the
     first payment date applicable thereto; provided, however, that no
     Additional Notes may be issued at a price that would cause such Additional
     Notes to have "original issue discount" within the meaning of Section 1273
     of the Internal Revenue Code of 1986, as amended; and

          (3) whether such Additional Notes shall be Notes bearing the Private
     Placement Legend and issued in the form of Initial Notes or shall be
     Unrestricted Notes issued in the form of Exchange Notes.

                                 ARTICLE THREE

                                  REDEMPTION

          SECTION 3.01.  Optional Redemption.  (a)  Except as described below,
                         -------------------
the Notes are not redeemable before May 15, 2006.  Thereafter, the Company may
redeem the Notes at its option, in whole or in part, upon not less than 30 nor
more than 60 days' notice to the Holders, at the following redemption prices
(expressed as percentages of the principal amount thereof) if redeemed during
the 12-month period commencing on May 15 of the year set forth below:

          Year                                            Percentage
          ----                                            ----------
          2006.......................................     105.188%
          2007.......................................     103.458%
          2008.......................................     101.729%
          2009 and thereafter........................     100.000%

          In addition, the Company must pay accrued and unpaid interest on the
Notes redeemed.

          (b) At any time, or from time to time, on or prior to May 15, 2004,
the Company may, at its option, use the Net Cash Proceeds of one or more Public
Equity Offerings (as defined below) to redeem up to 35% of the principal amount
of the Notes (including any Additional Notes) outstanding under this Indenture
at a redemption price of 110.375% of

                                      -58-
<PAGE>

the principal amount thereof plus accrued and unpaid interest thereon, if any,
to the date of redemption; provided that:

          (1) at least 65% of the principal amount of Notes (including any
     Additional Notes) outstanding under this Indenture remains outstanding
     immediately after any such redemption; and

          (2) the Company makes such redemption not more than 90 days after the
     consummation of any such Public Equity Offering.

          "Public Equity Offering" means an underwritten public offering of
           ----------------------
Qualified Capital Stock of the Company pursuant to a registration statement
filed with the Commission in accordance with the Securities Act.

          SECTION 3.02.  Notices to Trustee.  If the Company elects to redeem
                         ------------------
Notes pursuant to Section 3.01(a) or Section 3.01(b), it shall notify the
Trustee in writing of the Redemption Date and the principal amount of Notes to
be redeemed.

          The Company shall give each notice provided for in this Section 3.02
in an Officers' Certificate at least 60 days before the Redemption Date (unless
a shorter period shall be satisfactory to the Trustee).

          SECTION 3.03.  Selection of Notes to Be Redeemed.  In the case of
                         ---------------------------------
any partial redemption pursuant to Section 3.01(a) or Section 3.01(b), selection
of the Notes for redemption will be made by the Trustee in compliance with the
requirements of the Luxembourg Stock Exchange, if the Notes are so listed, and
any other principal securities exchange, if any, on which the Notes are listed
or, if the Notes are not listed on a principal securities exchange or the
Luxembourg Stock Exchange, pro rata, by lot or by such other method as the
Trustee shall deem fair and appropriate; provided that no Note of . 1,000 in
principal amount or less shall be redeemed in part; and provided, further, that
any redemption following a Public Equity Offering will be made on a pro rata or
on as nearly a pro rata basis as applicable (subject to the procedures of
Euroclear and Clearstream).  The Trustee shall make the selection from the Notes
outstanding and not previously called for redemption.  Provisions of this
Indenture that apply to Notes called for redemption also apply to portions of
Notes called for redemption.  The Trustee shall notify the Company and the
Registrar promptly in writing of the Notes or portions of Notes to be called for
redemption.

          SECTION 3.04.  Notice of Redemption.  With respect to any redemption
                         --------------------
of Notes pursuant to Section 3.01(a) or Section 3.01(b), at least 30 days but
not more than 60 days before a Redemption Date, the Company shall mail a notice
of redemption by first class mail to each Holder whose Notes are to be redeemed
at its registered address.  For Notes which are represented by Global Notes,
notices may be given by delivery of the relevant notices to each of the
Depositaries for communication to its Participants.  So long as any Notes are
listed on the Luxembourg Stock Exchange, any such notice to the Holders of the
relevant

                                      -59-
<PAGE>

Notes shall also be published in a daily newspaper of general circulation in
Luxembourg (which is expected to be the Luxemburger Wort).

          The notice shall identify the Notes to be redeemed and shall state:

          (i)  the Redemption Date;

         (ii)  the Redemption Price;

        (iii)  the name and address of each Paying Agent;

         (iv)  that Notes called for redemption must be surrendered to the
     applicable Paying Agent in order to collect the Redemption Price;

          (v)  that, unless the Company defaults in making the redemption
     payment, interest on Notes called for redemption ceases to accrue on and
     after the Redemption Date and the only remaining right of the Holders is to
     receive payment of the Redemption Price plus accrued interest and
     Additional Interest, if any, to the Redemption Date upon surrender of the
     Notes to the Paying Agent;

         (vi)  that, in the case of a redemption pursuant to Section 3.01(a)
     or Section 3.01(b) of Definitive Registered Notes, if any such Note is
     being redeemed in part, the portion of the principal amount (equal to
     . 1,000 in principal amount or any integral multiple thereof) of such Note
     to be redeemed and that, on and after the Redemption Date, upon surrender
     of such Note, a new Note or Notes in principal amount equal to the
     unredeemed portion thereof with a minimum denomination of . 1,000 will be
     issued, and that, in the case of such a partial redemption of Global Notes,
     the Trustee shall endorse Schedule A to each Global Note surrendered for
     redemption to reflect the decrease in principal amount resulting from such
     redemption;

        (vii)  that, if any such Notice contains an ISIN number or Common
     Code as provided in Section 2.12, no representation is being made as to the
     correctness of the ISIN number or Common Code either as printed on the
     Notes or as contained in the notice of redemption and that reliance may be
     placed only on the other identification numbers printed on the Notes; and

       (viii)  if the redemption is conditioned upon any subsequent event,
     a description of such condition or event.

          At the Company's request (which request may be revoked by the Company
at any time prior to the time at which the Trustee shall have given such notice
to the Holders), made in writing to the Trustee at least 60 days (or such
shorter period as shall be satisfactory to the Trustee) before a Redemption
Date, the Trustee shall give the notice of redemption in the name and at the
expense of the Company.  If, however, the Company gives such notice to

                                      -60-
<PAGE>

the Holders, the Company shall concurrently deliver to the Trustee an Officers'
Certificate stating that such notice has been given.

          SECTION 3.05.  Effect of Notice of Redemption.  Once notice of
                         ------------------------------
redemption is mailed, Notes called for redemption become due and payable on the
Redemption Date and at the Redemption Price, unless the redemption is
conditioned upon the occurrence of a subsequent event.  Upon surrender of any
Notes to the Paying Agent, unless such redemption is conditioned upon the
occurrence of a subsequent event, such Notes shall be paid at the Redemption
Price, plus accrued interest and Additional Interest, if any, to the Redemption
Date.

          Notice of redemption shall be deemed to be given when mailed, whether
or not the Holder receives the notice.  In any event, failure to give such
notice, or any defect therein, shall not affect the validity of the proceedings
for the redemption of Notes held by Holders to whom such notice was properly
given.

          SECTION 3.06.  Deposit of Redemption Price.  On or before 12:00 noon
                         ---------------------------
(New York City time) one Business Day prior to any Redemption Date, the Company
shall deposit with the Paying Agent (or, if the Company is acting as its own
Paying Agent, shall segregate and hold in trust as provided in Section 2.06)
money sufficient to pay the Redemption Price of and accrued interest on all
Notes to be redeemed on that date other than Notes or portions thereof called
for redemption on that date that have been delivered by the Company to the
Trustee for cancellation.

          SECTION 3.07.  Payment of Notes Called for Redemption.  If notice of
                         --------------------------------------
redemption has been given in the manner provided above, and unless such
redemption is conditioned upon a subsequent event, the Notes or portion of Notes
specified in such notice to be redeemed shall become due and payable on the
Redemption Date at the Redemption Price stated therein, together with accrued
interest and Additional Interest, if any, to such Redemption Date, and so long
as the Company has deposited with the Paying Agent funds in satisfaction of the
Redemption Price pursuant to the terms of this Indenture on and after such date
(unless the Company shall default in the payment of such Notes at the Redemption
Price and accrued interest and Additional Interest, if any, to the Redemption
Date, in which case the principal, until paid, shall bear interest from the
Redemption Date at the rate prescribed in the Notes), such Notes shall cease to
accrue interest.  Upon surrender of any Note for redemption in accordance with a
notice of redemption, such Note shall be paid and redeemed by the Company at the
Redemption Price, together with accrued interest, if any, to the Redemption
Date; provided that installments of interest whose Stated Maturity is on or
prior to the Redemption Date shall be payable to the Holders registered as such
at the close of business on the relevant Regular Record Date.

          SECTION 3.08.  Notes Redeemed in Part.  Upon surrender of any Note
                         ----------------------
that is redeemed in part, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder a new Note equal in principal amount to
the unredeemed portion of such surren-

                                      -61-
<PAGE>

dered Note, which shall not, in any event be less than * 1,000 principal
amount. In the case of a partial redemption of Global Notes, the Trustee shall
endorse Schedule A to each Global Note surrendered for redemption to reflect the
decrease in principal amount resulting from such redemption.

                                 ARTICLE FOUR

                                   COVENANTS

          SECTION 4.01.  Payment of Notes.  The Company shall pay the principal
                         ----------------
of, Additional Interest, if any, and interest on the Notes on or before 12:00
noon (New York City time) one Business Day prior to the dates due for such
payments and in the manner provided in the Notes and this Indenture. An
installment of principal, Additional Interest, if any, or interest shall be
considered paid on the date due if the Trustee or Paying Agent (other than the
Company, a Subsidiary of the Company, or any Affiliate of any of them) holds on
that date money designated for and sufficient to pay the installment unless the
provisions of Article Ten hereof prohibit such payment. As provided in Section
6.09, upon a bankruptcy or reorganization procedure relative to the Company, the
Trustee shall serve as the Paying Agent, if any, for the Notes.

          The Company shall pay interest on overdue principal, Additional
Interest, if any, and interest on overdue installments of interest, to the
extent lawful, at the rate per annum then borne upon the Notes.

          SECTION 4.02.  Maintenance of Office or Agency.  The Company shall
                         -------------------------------
maintain the offices and agencies specified in Section 2.04.

          SECTION 4.03.  Limitation on Incurrence of Additional Indebtedness.
                         ---------------------------------------------------
The Company shall not, and shall not permit any of its Restricted Subsidiaries
to, directly or indirectly, create, incur, assume, guarantee, acquire, become
liable, contingently or otherwise, with respect to, or otherwise become
responsible for payment of (collectively, "incur") any Indebtedness (other than
                                           -----
Permitted Indebtedness); provided, however, that if no Default or Event of
Default shall have occurred and be continuing at the time of or as a consequence
of the incurrence of any such Indebtedness, the Company and the Guarantors may
incur Indebtedness (including, without limitation, Acquired Indebtedness) and
any Restricted Subsidiary of the Company that is not or will not, upon such
incurrence, become a Guarantor may incur Acquired Indebtedness, in each case if
on the date of the incurrence of such Indebtedness, after giving effect to the
incurrence thereof, the Consolidated Fixed Charge Coverage Ratio of the Company
is greater than 2.0 to 1.0 if such Indebtedness is incurred on or before May 15,
2003 and 2.25 to 1.0 if such Indebtedness is incurred thereafter.

                                      -62-
<PAGE>

          SECTION 4.04.  Prohibition on Incurrence of Senior Subordinated Debt.
                         -----------------------------------------------------
The Company shall not, and shall not permit any Restricted Subsidiary that is a
Guarantor to, incur or suffer to exist Indebtedness that is senior in right of
payment to the Notes or such Guarantor's Guarantee, as the case may be, and
subordinate in right of payment to any other Indebtedness of the Company or such
Guarantor, as the case may be.

          SECTION 4.05.  Limitation on Restricted Payments.  (a) The Company
                         ---------------------------------
shall not, and shall not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly:

          (1)  declare or pay any dividend or make any distribution (other than
     dividends or distributions payable in Qualified Capital Stock of the
     Company) on or in respect of shares of the Company's Capital Stock to
     holders of such Capital Stock;

          (2)  purchase, redeem or otherwise acquire or retire for value any
     Capital Stock of the Company or any warrants, rights or options to purchase
     or acquire shares of any class of such Capital Stock;

          (3)  make any principal payment on, purchase, defease, redeem, prepay,
     decrease or otherwise acquire or retire for value, prior to any scheduled
     final maturity, scheduled repayment or scheduled sinking fund payment, any
     Indebtedness of the Company that is subordinate or junior in right of
     payment to the Notes or any Indebtedness of a Guarantor that is subordinate
     or junior in right of payment to such Guarantor's Guarantee; or

          (4)  make any Investment (other than Permitted Investments)

(each of the foregoing actions set forth in clauses (1), (2), (3) and (4) being
referred to as a "Restricted Payment"), if at the time of such Restricted
                  ------------------
Payment or immediately after giving effect thereto,

               (i)   a Default or an Event of Default shall have occurred and be
          continuing; or

               (ii)  the Company is not able to incur at least $1.00 of
          additional Indebtedness (other than Permitted Indebtedness) in
          compliance with Section 4.03; or

               (iii) the aggregate amount of Restricted Payments (including such
          proposed Restricted Payment) made subsequent to the Issue Date (the
          amount expended for such purposes, if other than in cash, being the
          fair market value of such property as determined in good faith by the
          Board of Directors of the Company) shall exceed the sum of:

               (w)   50% of the cumulative Consolidated Net Income (or if
          cumulative Consolidated Net Income shall be a loss, minus 100% of such
          loss) of the

                                      -63-
<PAGE>

          Company earned subsequent to the Issue Date and on or prior to the
          date the Restricted Payment occurs (the "Reference Date") (treating
                                                   --------------
          such period as a single accounting period); plus

               (x)   100% of the aggregate net cash proceeds received by the
          Company from any Person (other than a Subsidiary of the Company) from
          the issuance and sale subsequent to the Issue Date and on or prior to
          the Reference Date of Qualified Capital Stock of the Company; plus

               (y)   without duplication of any amounts included in clause
          (iii)(x) above, 100% of the aggregate net cash proceeds of any equity
          contribution received by the Company from a holder of the Company's
          Capital Stock (excluding, in the case of clauses (iii)(x) and (y), any
          net cash proceeds from a Public Equity Offering to the extent used to
          redeem the Notes in compliance with the provisions set forth under
          Section 3.01); plus

               (z)   without duplication, the sum of:

                     (1)  the aggregate amount returned in cash on or with
               respect to Investments (other than Permitted Investments) made
               subsequent to the Issue Date whether through interest payments,
               principal payments, dividends or other distributions or payments;

                     (2)  the net cash proceeds received by the Company or any
               of its Restricted Subsidiaries from the disposition of all or any
               portion of such Investments (other than to a Subsidiary of the
               Company); and

                     (3)  upon redesignation of an Unrestricted Subsidiary as a
               Restricted Subsidiary, the fair market value of such Subsidiary;

          provided, however, that the sum of clauses (z) (1) through (3) above
          shall not exceed the aggregate amount of all such Investments made
          subsequent to the Issue Date.

          (b)Notwithstanding the foregoing, the provisions set forth in the
immediately preceding paragraph do not prohibit:

          (1)  the payment of any dividend within 60 days after the date of
     declaration of such dividend if the dividend would have been permitted on
     the date of declaration;

          (2)  if no Default or Event of Default shall have occurred and be
     continuing, the acquisition of any shares of Capital Stock of the Company,
     either (i) solely in exchange for shares of Qualified Capital Stock of the
     Company or (ii) through the appli-

                                      -64-
<PAGE>

     cation of net proceeds of a substantially concurrent sale for cash (other
     than to a Subsidiary of the Company) of shares of Qualified Capital Stock
     of the Company;

          (3)  if no Default or Event of Default shall have occurred and be
     continuing, the acquisition of any Indebtedness of the Company or a
     Guarantor that is subordinate or junior in right of payment to the Notes or
     such Guarantor's Guarantee, as the case may be, either (i) solely in
     exchange for shares of Qualified Capital Stock of the Company, or (ii)
     through the application of net proceeds of a substantially concurrent sale
     for cash (other than to a Subsidiary of the Company) of (a) shares of
     Qualified Capital Stock of the Company or (b) Refinancing Indebtedness;

          (4)  if no Default or Event of Default shall have occurred and be
     continuing, repurchases by the Company of Common Stock of the Company (or
     options or warrants to purchase such Common Stock) from directors, officers
     and employees of the Company or any of its Subsidiaries or their authorized
     representatives upon the death, disability, retirement or termination of
     employment of such directors, officers or employees, in an aggregate amount
     not to exceed $500,000 in any calendar year;

          (5)  if no Default or Event of Default shall have occurred and be
     continuing, Restricted Payments in an amount not to exceed $5.0 million;
     and

          (6)  if no Default or Event of Default shall have occurred and be
     continuing, any transfer or other disposition of Capital Stock of the
     Company or any Subsidiary of the Company, pursuant to an Inversion
     Transaction; provided that (i) the Supplemental Indenture is executed and
     in effect concurrently with the consummation of such Inversion Transaction;
     (ii) immediately following such Inversion Transaction, the Company shall
     apply to S&P and Moody's to have its debt rating and outlook updated and
     such updated debt rating and outlook shall be no less favorable to the
     Company than immediately prior to such Inversion Transaction; (iii)
     immediately following such Inversion Transaction, the Company's
     Consolidated Fixed Charge Coverage Ratio is at least equal to the
     Consolidated Fixed Charge Coverage Ratio immediately prior to such
     Inversion Transaction; and (iv) immediately following such Inversion
     Transaction, the Company is able to incur at least $1.00 of additional
     Indebtedness (other than Permitted Indebtedness) in compliance Section
     4.03.

          In determining the aggregate amount of Restricted Payments made
subsequent to the Issue Date in accordance with Section 4.05(a)(4)(iii), amounts
expended pursuant to Section 4.05(b) (1), (2)(ii), 3(ii)(a), (4) and (5) shall
be included in such calculation.

          SECTION 4.06.  Limitation on Dividend and Other Payment Restrictions
                         -----------------------------------------------------
Affecting Restricted Subsidiaries. The Company shall not, and shall not cause
---------------------------------
or permit any of its Restricted Subsidiaries to, directly or indirectly, create
or otherwise cause or permit to exist

                                      -65-
<PAGE>

or become effective any encumbrance or restriction on the ability of any
Restricted Subsidiary of the Company to:

          (1)  pay dividends or make any other distributions on or in respect of
     its Capital Stock;

          (2)  make loans or advances or to pay any Indebtedness or other
     obligation owed to the Company or any other Restricted Subsidiary of the
     Company; or

          (3)  transfer any of its property or assets to the Company or any
     other Restricted Subsidiary of the Company, in each case except for such
     encumbrances or restrictions existing under or by reason of:

          (a)  applicable law;

          (b)  the Notes or this Indenture;

          (c)  customary non-assignment provisions of any contract or any lease
     governing a leasehold interest of any Restricted Subsidiary of the Company;

          (d)  any instrument governing Acquired Indebtedness, which encumbrance
     or restriction is not applicable to any Person, or the properties or assets
     of any Person, other than the Person or the properties or assets of the
     Person so acquired;

          (e)  agreements existing on the Issue Date to the extent and in the
     manner such agreements are in effect on the Issue Date;

          (f)  the Credit Agreement or an agreement governing other Senior Debt
     or Guarantor Senior Debt permitted to be incurred under this Indenture;
     provided that, with respect to any agreement governing such other Senior
     Debt or Guarantor Senior Debt, the provisions relating to such encumbrance
     or restriction are no less favorable to the Company in any material respect
     as determined by the Board of Directors of the Company in its reasonable
     and good faith judgment than the provisions contained in the Credit
     Agreement as in effect on the Issue Date;

          (g)  restrictions on the transfer of assets subject to any Lien
     permitted under this Indenture imposed by the holder of such Lien;

          (h)  restrictions imposed by any agreement to sell assets or Capital
     Stock permitted under this Indenture to any Person pending the closing of
     such sale;

          (i)  restrictions imposed by agreements governing Indebtedness of a
     Foreign Restricted Subsidiary incurred pursuant to clauses (14) and (19) of
     the definition of "Permitted Indebtedness";

                                      -66-
<PAGE>

          (j)  restrictions on cash or other deposits or net worth imposed by
     customers under contracts entered into in the ordinary course of business;

          (k)  any Purchase Money Note or other Indebtedness or other
     contractual requirements of a Securitization Entity in connection with a
     Qualified Securitization Transaction; provided that such restrictions apply
     only to such Securitization Entity;

          (l)  customary provisions in joint venture agreements and other
     similar agreements (in each case relating solely to the respective joint
     venture or similar entity or the equity interests therein) entered into in
     the ordinary course of business; and

          (m)  an agreement governing Indebtedness incurred to Refinance the
     Indebtedness issued, assumed or incurred pursuant to an agreement referred
     to in clauses (b) and (d) through (l) above; provided, however, that the
     provisions relating to such encumbrance or restriction contained in any
     such agreements are no less favorable to the Company in any material
     respect as determined by the Board of Directors of the Company in their
     reasonable and good faith judgment than the provisions relating to such
     encumbrance or restriction contained in agreements referred to in such
     clauses (b) and (d) through (l) above.

          SECTION 4.07.  Limitation on Preferred Stock of Restricted
                         -------------------------------------------
Subsidiaries.  The Company shall not permit any of its Restricted Subsidiaries
------------
that are not Guarantors to issue any Preferred Stock (other than to the Company
or to a Wholly Owned Restricted Subsidiary of the Company) or permit any Person
(other than the Company or a Wholly Owned Restricted Subsidiary of the Company)
to own any Preferred Stock of any Restricted Subsidiary of the Company that is
not a Guarantor.

          SECTION 4.08.  Limitation on Transactions with Affiliates.  (a)  The
                         ------------------------------------------
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or permit to exist any transaction or series
of related transactions (including, without limitation, the purchase, sale,
lease or exchange of any property or the rendering of any service) with, or for
the benefit of, any of its Affiliates (each, an "Affiliate Transaction"), other
                                                 ---------------------
than (x) Affiliate Transactions permitted under Section 4.08(b) and (y)
Affiliate Transactions on terms that are no less favorable than those that might
reasonably have been obtained in a comparable transaction at such time on an
arm's-length basis from a Person that is not an Affiliate of the Company or such
Restricted Subsidiary.

          All Affiliate Transactions (and each series of related Affiliate
Transactions which are similar or part of a common plan)  involving aggregate
payments or other property with a fair market value in excess of $5.0 million
shall be approved by the Board of Directors of the Company or such Restricted
Subsidiary, as the case may be, such approval to be evidenced by a Board
Resolution stating that such Board of Directors has determined that such
transaction complies with the foregoing provisions.  If the Company or any
Restricted Sub-

                                      -67-
<PAGE>

sidiary of the Company enters into an Affiliate Transaction (or a series of
related Affiliate Transactions related to a common plan) that involves an
aggregate fair market value of more than $10.0 million, the Company or such
Restricted Subsidiary, as the case may be, shall, prior to the consummation
thereof, obtain a favorable opinion as to the fairness of such transaction or
series of related transactions to the Company or the relevant Restricted
Subsidiary, as the case may be, from a financial point of view, from an
Independent Financial Advisor and file the same with the Trustee.

          (b)  The restrictions set forth in Section 4.08(a) shall not apply to:

          (1)  reasonable fees and compensation paid to and indemnity provided
     on behalf of, officers, directors, employees or consultants of the Company
     or any Restricted Subsidiary of the Company as determined in good faith by
     the Company's Board of Directors or senior management;

          (2)  transactions exclusively between or among the Company and any of
     its Restricted Subsidiaries or exclusively between or among such Restricted
     Subsidiaries; provided such transactions are not otherwise prohibited by
     this Indenture;

          (3)  any agreement as in effect as of the Issue Date or any amendment
     thereto or any transaction contemplated thereby (including pursuant to any
     amendment thereto) in any replacement agreement thereto so long as any such
     amendment or replacement agreement is not more disadvantageous to the
     Holders in any material respect than the original agreement as in effect on
     the Issue Date;

          (4)  Restricted Payments or Permitted Investments permitted by this
Indenture;

          (5)  transactions between the Company or any of its Subsidiaries and
     any Securitization Entity in connection with a Qualified Securitization
     Transaction, in each case provided that such transactions are not otherwise
     prohibited by this Indenture; and

          (6)  transactions undertaken pursuant to an Inversion Transaction;
     provided that (i) the Supplemental Indenture is executed and in effect
     concurrently with the consummation of such Inversion Transaction; (ii)
     immediately following such Inversion Transaction, the Company shall apply
     to S&P and Moody's to have its debt rating and outlook updated and such
     updated debt rating and outlook shall be no less favorable to the Company
     than immediately prior to such Inversion Transaction; (iii) immediately
     following such Inversion Transaction, the Company's Consolidated Fixed
     Charge Coverage Ratio is at least equal to the Consolidated Fixed Charge
     Coverage Ratio immediately prior to such Inversion Transaction; and (iv)
     immediately following such Inversion Transaction, the Company is able to
     incur at least $1.00 of additional Indebtedness (other than Permitted
     Indebtedness) in compliance with Section 4.03.

                                      -68-
<PAGE>

          SECTION 4.09.  Limitation on Liens.  The Company shall not, and
                         -------------------
shall not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly, create, incur, assume or permit or suffer to exist any Liens of any
kind against or upon any property or assets of the Company or any of its
Restricted Subsidiaries whether owned on the Issue Date or acquired after the
Issue Date, or any proceeds therefrom, or assign or otherwise convey any right
to receive income or profits therefrom unless:

          (1)  in the case of Liens securing Indebtedness that is expressly
     subordinate or junior in right of payment to the Notes or the Guarantees,
     the Notes or the Guarantees are secured by a Lien on such property, assets
     or proceeds that is senior in priority to such Liens; and

          (2)  in all other cases, the Notes or the Guarantees, as the case may
     be, are equally and ratably secured, except for:

          (a)  Liens existing as of the Issue Date to the extent and in the
     manner such Liens are in effect on the Issue Date;

          (b)  Liens securing Senior Debt and Liens securing Guarantor Senior
     Debt;

          (c)  Liens securing the Notes and the Guarantees;

          (d)  Liens of the Company or a Wholly Owned Restricted Subsidiary of
     the Company on assets of any Restricted Subsidiary of the Company and Liens
     on assets of the Company in favor of a Wholly Owned Restricted Subsidiary
     that is a Guarantor;

          (e)  Liens securing Refinancing Indebtedness which is incurred to
     Refinance any Indebtedness that has been secured by a Lien permitted under
     this Indenture and that has been incurred without violation of this
     Indenture; provided, however, that such Liens: (i) are no less favorable to
     the Holders and are not more favorable to the lienholders, in each case in
     any material respect, with respect to such Liens than the Liens in respect
     of the Indebtedness being Refinanced; and (ii) do not extend to or cover
     any categories of property or assets of the Company or any of its
     Restricted Subsidiaries not securing the Indebtedness so Refinanced; and

          (f)  Permitted Liens.

          SECTION 4.10.  Limitation on Asset Sales.  (a)  The Company shall not,
                         -------------------------
and shall not permit any of its Restricted Subsidiaries to, consummate an Asset
Sale unless:

          (1)  the Company or the applicable Restricted Subsidiary, as the case
     may be, receives consideration at the time of such Asset Sale at least
     equal to the fair market value of the assets sold or otherwise disposed of
     (as determined in good faith by the Company's Board of Directors);

                                      -69-
<PAGE>

          (2)  at least 75% of the consideration received by the Company or the
     Restricted Subsidiary, as the case may be, from such Asset Sale shall be in
     the form of cash or Cash Equivalents and shall be received at the time of
     such disposition; provided that, for purposes of this clause (2), the
     following will be considered "cash" or "Cash Equivalents":

               (i)   any Senior Debt or Guarantor Senior Debt that is assumed by
          the transferee of any such assets, to the extent the Company or such
          Restricted Subsidiary is released from any further liability with
          respect thereto; and

               (ii)  any securities, notes or other obligations received by the
          Company or any such Restricted Subsidiary from such transferee that
          are converted by the Company or such Restricted Subsidiary into cash
          or Cash Equivalents (to the extent of the cash or Cash Equivalents
          received) within 30 days after receipt; and

          (3)  upon the consummation of an Asset Sale, the Company shall apply,
     or cause such Restricted Subsidiary to apply, the Net Cash Proceeds
     relating to such Asset Sale within 365 days of receipt thereof either:

               (i)   to prepay any Senior Debt, Guarantor Senior Debt or
     Indebtedness of a Restricted Subsidiary that is not a Guarantor and, in the
     case of any Senior Debt, Guarantor Senior Debt or such other Indebtedness
     under any revolving credit facility, effect a permanent reduction in the
     availability under such revolving credit facility;

               (ii)  to make an investment in properties and assets that replace
     the properties and assets that were the subject of such Asset Sale or in
     properties and assets (including Capital Stock) that will be used in the
     business of the Company and its Restricted Subsidiaries as existing on the
     Issue Date or in businesses reasonably related thereto ("Replacement
                                                              -----------
     Assets"); or
     ------

               (iii) a combination of prepayment and investment permitted by the
foregoing clauses (3)(i) and (3)(ii).

          (b)  On the 366th day after an Asset Sale or such earlier date, if
any, as the Board of Directors of the Company or of such Restricted Subsidiary
determines not to apply the Net Cash Proceeds relating to such Asset Sale as set
forth in clauses (3)(i), (3)(ii) and (3)(iii) of Section 4.10(a) (each, a "Net
                                                                           ---
Proceeds Offer Trigger Date"), such aggregate amount of Net Cash Proceeds that
---------------------------
have not been applied on or before such Net Proceeds Offer Trigger Date as
permitted in clauses (3)(i), (3)(ii) and (3)(iii) of Section 4.10(a) (each, a
"Net Proceeds Offer Amount") shall be applied by the Company or such Restricted
--------------------------
Subsidiary to make an offer to purchase (the "Net Proceeds Offer") on a date
                                              ------------------
(the "Net Proceeds Offer Payment
      --------------------------

                                      -70-
<PAGE>

Date") not less than 30 nor more than 45 days following the applicable Net
----
Proceeds Offer Trigger Date, from all Holders on a pro rata basis, the maximum
amount of Notes that may be purchased with the Net Proceeds Offer Amount at a
price equal to 100% of the principal amount of the Notes to be purchased, plus
accrued and unpaid interest thereon, if any, to the date of purchase; provided,
however, that if at any time any non-cash consideration received by the Company
or any Restricted Subsidiary of the Company, as the case may be, in connection
with any Asset Sale is converted into or sold or otherwise disposed of for cash
(other than interest received with respect to any such non-cash consideration),
then such conversion or disposition shall be deemed to constitute an Asset Sale
hereunder and the Net Cash Proceeds thereof shall be applied in accordance with
this Section 4.10.

          The Company may defer the Net Proceeds Offer until there is an
aggregate unutilized Net Proceeds Offer Amount equal to or in excess of $10.0
million resulting from one or more Asset Sales (at which time, the entire
unutilized Net Proceeds Offer Amount, and not just the amount in excess of $10.0
million, shall be applied as required pursuant to this Section 4.10(b)).

          In the event of the transfer of substantially all (but not all) of the
property and assets of the Company and its Restricted Subsidiaries as an
entirety to a Person in a transaction permitted under Section 5.01, which
transaction does not constitute a Change of Control, the successor corporation
shall be deemed to have sold the properties and assets of the Company and its
Restricted Subsidiaries not so transferred for purposes of this Section 4.10 and
shall comply with the provisions of this Section 4.10 with respect to such
deemed sale as if it were an Asset Sale.  In addition, the fair market value of
such properties and assets of the Company or its Restricted Subsidiaries deemed
to be sold shall be deemed to be Net Cash Proceeds for purposes of this Section
4.10.

          (c) Notwithstanding Sections 4.10(a) and (b), the Company and its
Restricted Subsidiaries will be permitted to consummate an Asset Sale without
complying with such Sections to the extent that:

          (1) at least 75% of the consideration for such Asset Sale constitutes
     Replacement Assets; and

          (2) such Asset Sale is for fair market value; provided that any
     consideration not constituting Replacement Assets received by the Company
     or any of its Restricted Subsidiaries in connection with any Asset Sale
     permitted to be consummated under this Section 4.10(c) shall constitute Net
     Cash Proceeds subject to the provisions of Sections 4.10(a) and (b).

          The provisions of this Section 4.10 shall not apply to transactions
undertaken pursuant to an Inversion Transaction; provided that (i) the
Supplemental Indenture is executed and in effect concurrently with the
consummation of such Inversion Transaction; (ii) immedi-

                                      -71-
<PAGE>

ately following such Inversion Transaction, the Company shall apply to S&P and
Moody's to have its debt rating and outlook updated and such updated debt rating
and outlook shall be no less favorable to the Company than immediately prior to
such Inversion Transaction; (iii) immediately following such Inversion
Transaction, the Company's Consolidated Fixed Charge Coverage Ratio is at least
equal to the Consolidated Fixed Charge Coverage Ratio immediately prior to such
Inversion Transaction; and (iv) immediately following such Inversion
Transaction, the Company is able to incur at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) in compliance with Section
4.03.

          Each Net Proceeds Offer will be mailed to the record Holders as shown
on the register of Holders within 25 days following the Net Proceeds Offer
Trigger Date, with a copy to the Trustee, and shall comply with the procedures
set forth in this Indenture.  The notice to the Holders shall contain all
instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Net Proceeds Offer.  Such notice shall state:

          (1) that the Net Proceeds Offer is being made pursuant to this Section
     4.10 and that all Notes tendered will be accepted for payment;

          (2) the purchase price (including the amount of accrued interest) and
     the purchase date (which shall be the Net Proceeds Offer Payment Date);

          (3) that any Note not tendered will continue to accrue interest if
     interest is then accruing;

          (4) that, unless the Company defaults in making payment therefor, any
     Note accepted for payment pursuant to the Net Proceeds Offer shall cease to
     accrue interest after the Net Proceeds Offer Payment Date;

          (5) that Holders electing to have a Note purchased pursuant to a Net
     Proceeds Offer will be required to surrender the Note, with the form
     entitled "Option of Holder to Elect Purchase" on the reverse of the Note
     completed, to the Paying Agent at the address specified in the notice prior
     to the close of business on the third business day prior to the Net
     Proceeds Offer Payment Date;

          (6) that Holders will be entitled to withdraw their election if the
     Paying Agent receives, not later than 5:00 p.m., New York City time, on the
     second Business Day preceding the Net Proceeds Offer Date, a telegram,
     telex, facsimile transmission or letter setting forth the name of the
     Holder, the principal amount of the Notes the Holder delivered for purchase
     and a statement that such Holder is withdrawing his election to have such
     Note purchased; and

          (7) the circumstances and relevant facts regarding such Net Proceeds
     Offer.

                                      -72-
<PAGE>

          Upon receiving notice of the Net Proceeds Offer, Holders may elect to
tender their Notes in whole or in part in integral multiples of . 1000 in
exchange for cash.  To the extent Holders properly tender Notes in an amount
exceeding the Net Proceeds Offer Amount, Notes of tendering Holders will be
purchased on a pro rata basis (based on amounts tendered).  A Net Proceeds Offer
shall remain open for a period of 20 business days or such longer period as may
be required by law.

          The Company shall comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the
repurchase of Notes pursuant to a Net Proceeds Offer.  To the extent that the
provisions of any securities laws or regulations conflict with this Section 4.10
hereof, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under this
Section 4.10 by virtue thereof.

          SECTION 4.11.  Repurchase of Notes upon a Change of Control.  (a)
                         --------------------------------------------
Upon the occurrence of a Change of Control, each Holder will have the right to
require that the Company purchase all or a portion of such Holder's Notes
pursuant to the offer described below (the "Change of Control Offer"), at a
                                            -----------------------
purchase price equal to 101% of the principal amount thereof plus accrued and
unpaid interest thereon to the date of purchase.

          Within 30 days following the date upon which the Change of Control
occurred, the Company must send, by first class mail, a notice to each Holder,
with a copy to the Trustee, which notice shall govern the terms of the Change of
Control Offer.  Such notice shall state, among other things, the purchase date,
which, unless otherwise required by law, must be no earlier than 30 days nor
later than 60 days from the date such notice is mailed (the "Change of Control
                                                             -----------------
Payment Date").  The notice to the Holders shall contain all instructions and
------------
materials necessary to enable such Holders to tender Notes pursuant to the
Change of Control Offer.  Such notice shall state:

          (1) that the Change of Control Offer is being made pursuant to this
     Section 4.11 and that all Notes tendered will be accepted for payment;

          (2) the purchase price (including the amount of accrued interest) and
     the purchase date (which shall be no earlier than the Change of Control
     Payment Date);

          (3) that any Note not tendered will continue to accrue interest if
     interest is then accruing;

          (4) that, unless the Company defaults in making payment therefor, any
     Note accepted for payment pursuant to the Change of Control Offer shall
     cease to accrue interest after the Change of Control Payment Date;

                                      -73-
<PAGE>

          (5) that Holders electing to have a Note purchased pursuant to a
     Change of Control Offer will be required to surrender the Note, with the
     form entitled "Option of Holder to Elect Purchase" on the reverse of the
     Note completed, to the Paying Agent at the address specified in the notice
     prior to the close of business on the third business day prior to the
     Change of Control Payment Date;

          (6) that Holders will be entitled to withdraw their election if the
     Paying Agent receives, not later than 5:00 p.m., New York City time, on the
     second Business Day preceding the Change of Control Payment Date, a
     telegram, telex, facsimile transmission or letter setting forth the name of
     the Holder, the principal amount of the Notes the Holder delivered for
     purchase and a statement that such Holder is withdrawing his election to
     have such Note purchased; and

          (7) the circumstances and relevant facts regarding such Change of
     Control.

     (b)  Prior to the mailing of the notice referred to above, but in any event
     within 30 days following any Change of Control, the Company covenants to:

          (1) repay in full and terminate all commitments under Indebtedness
     under the Credit Agreement and all other Senior Debt the terms of which
     require repayment upon a Change of Control or offer to repay in full and
     terminate all commitments under all Indebtedness under the Credit Agreement
     and all other such Senior Debt and to repay the Indebtedness owed to (and
     terminate the commitments of) each lender that has accepted such offer; or

          (2) obtain the requisite consents under the Credit Agreement and all
     other such Senior Debt to permit the repurchase of the Notes as provided
     below. The Company shall first comply with the covenant in the immediately
     preceding sentence before it shall be required to either repurchase Notes
     pursuant to the provisions described below or send the notice pursuant to
     the provisions described above. The Company's failure to comply with the
     covenant described in the immediately preceding sentence shall constitute
     an Event of Default described in Section 6.01(a)(3) (after the giving of
     the notice and lapse of time as described therein) and not in Section
     6.01(a)(2).

     (c) The Company shall comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the
repurchase of Notes pursuant to a Change of Control Offer. To the extent that
the provisions of any securities laws or regulations conflict with this Section
4.11, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under this
Section 4.11 by virtue thereof.

                                      -74-
<PAGE>

          Notwithstanding anything to the contrary in this section, the Company
shall not be required to make a Change of Control Offer upon a Change of Control
if a third party makes the Change of Control Offer in the manner, at the times
and otherwise in compliance with the requirements set forth in this section and
purchases all notes validly tendered and not withdrawn under such Change of
Control Offer.

          SECTION 4.12.  Additional Subsidiary Guarantees.  If any existing or
                         --------------------------------
future Domestic Restricted Subsidiary shall, after the Issue Date, guarantee any
Indebtedness of the Company or a Guarantor, then the Company shall cause such
Domestic Restricted Subsidiary to:

          (1) execute and deliver to the Trustee a supplemental indenture
     pursuant to which such Domestic Restricted Subsidiary shall unconditionally
     guarantee all of the Company's obligations under the Notes and this
     Indenture on the terms set forth herein; and

          (2) deliver to the Trustee an opinion of counsel that such
     supplemental indenture has been duly authorized, executed and delivered by
     such Domestic Restricted Subsidiary and constitutes a legal, valid, binding
     and enforceable obligation of such Domestic Restricted Subsidiary.

Thereafter, such Domestic Restricted Subsidiary shall be a Guarantor for all
purposes of this Indenture until such Domestic Restricted Subsidiary is released
from its Guarantee as provided in this Indenture.

          SECTION 4.13.  Existence.  Subject to Article Five of this
                         ---------
Indenture, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence and the existence of
each Restricted Subsidiary in accordance with the respective organizational
documents of the Company and each Restricted Subsidiary and the rights (whether
pursuant to charter, partnership certificate, agreement, statute or otherwise),
material licenses and franchises of the Company and each Restricted Subsidiary;
provided that the Company shall not be required to preserve any such right,
license or franchise, or the existence of any Restricted Subsidiary, if the
maintenance or preservation thereof is no longer desirable in the conduct of the
business of the Company and its Restricted Subsidiaries taken as a whole.

          SECTION 4.14.  Payment of Taxes and Other Claims.  The Company shall
                         ---------------------------------
pay or discharge and shall cause each of its Restricted Subsidiaries to pay or
discharge, or cause to be paid or discharged, before the same shall become
delinquent (i) all material taxes, assessments and governmental charges levied
or imposed upon (a) the Company or any such Restricted Subsidiary, (b) the
income or profits of any such Restricted Subsidiary which is a corporation or
(c) the property of the Company or any such Restricted Subsidiaries and (ii) all
material lawful claims for labor, materials and supplies that, if unpaid, might
by law become a

                                      -75-
<PAGE>

Lien upon the property of the Company or any such Restricted Subsidiary;
provided that neither the Company nor any such Restricted Subsidiary shall be
required to pay or discharge, or cause to be paid or discharged, any such tax,
assessment, charge or claim the amount, applicability or validity of which is
being contested in good faith by appropriate proceedings and for which adequate
reserves have been established in accordance with GAAP.

          SECTION 4.15.  Reports to Holders.  Whether or not required by the
                         ------------------
rules and regulations of the Commission, so long as any Notes are outstanding,
the Company shall furnish the Holders of Notes:

          (1) all quarterly and annual financial information that would be
     required to be contained in a filing with the Commission on Forms 10-Q and
     10-K if the Company were required to file such Forms, including a
     "Management's Discussion and Analysis of Financial Condition and Results of
     Operations" that describes the financial condition and results of
     operations of the Company and its consolidated Subsidiaries (showing in
     reasonable detail, either on the face of the financial statements or in the
     footnotes thereto and in Management's Discussion and Analysis of Financial
     Condition and Results of Operations, the financial condition and results of
     operations of the Company and its Restricted Subsidiaries separate from the
     financial condition and results of operations of the Unrestricted
     Subsidiaries of the Company, if any) and, with respect to the annual
     information only, a report thereon by the Company's certified independent
     accounts; and

          (2) all current reports that would be required to be filed with the
     Commission on Form 8-K if the Company were required to file such reports,
     in each case within the time periods specified in the Commission's rules
     and regulations.

          In addition, following the consummation of the Exchange Offer, whether
or not required by the rules and regulations of the Commission, the Company
shall file a copy of all such information and reports with the Commission for
public availability within the time periods specified in the Commission's rules
and regulations (unless the Commission will not accept such a filing) and make
such information available to securities analysts and prospective investors upon
request.  In addition, the Company has agreed that, for so long as any Notes
remain outstanding, it shall furnish to the Holders and to securities analysts
and prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

          If and so long as the Notes are listed on the Luxembourg Stock
Exchange, the Company shall cause copies of such reports to be available at the
specified office of the Paying Agent and transfer agent in Luxembourg.

          SECTION 4.16.  Conduct of Business.  The Company shall not, and
                         -------------------
shall not permit any Restricted Subsidiary to, engage in any businesses that are
not the same, similar or

                                      -76-
<PAGE>

reasonably related to the businesses in which the Company and its Restricted
Subsidiaries are engaged on the Issue Date.

          SECTION 4.17.  Waiver of Stay, Extension or Usury Laws.  Each of the
                         ---------------------------------------
Company and any Guarantor covenants (to the extent that it may lawfully do so)
that it shall not at any time insist upon, or plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law or any
usury law or other law that would prohibit or forgive the Company or such
Guarantor from paying all or any portion of the principal of, premium, if any,
or interest on the Notes as contemplated herein, wherever enacted, now or at any
time hereafter in force, or that may affect the covenants or the performance of
this Indenture; and (to the extent that it may lawfully do so) each of the
Company and any Guarantor hereby expressly waives all benefit or advantage of
any such law and covenants that it shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

          SECTION 4.18.  Compliance Certificates.  (a)  The Company shall
                         -----------------------
deliver to the Trustee within 90 days after the end of each fiscal year,
commencing with the fiscal year ending December 31, 2001, an Officers'
Certificate (which shall be signed by the Chief Financial Officer of the
Company) stating (i) that, a review has been conducted of the activities of the
Company and its Restricted Subsidiaries under the supervision of the signing
Officer with a view to determining whether the Company has kept, observed,
performed and fulfilled its obligations under this Indenture, and (ii) that, to
the best knowledge of the Officer signing such certificate, the Company has
kept, observed, performed and fulfilled each and every covenant and condition
contained in this Indenture and is not in default in the performance or
observance of any of the terms, provisions, conditions and covenants hereof (or,
if a Default or Event of Default shall have occurred, specifying each such
Default or Event of Default and describing its status and what action the
Company is taking or proposes to take with respect thereto).

          (b) The Company shall, so long as any of the Notes are outstanding,
deliver to the Trustee, promptly after any Officer of the Company becomes aware
of any Default or Event of Default, an Officers' Certificate specifying such
Default or Event of Default and what action the Company is taking or proposes to
take with respect thereto.

          SECTION 4.19.  Maintenance of Properties.  The Company shall cause
                         -------------------------
all material properties owned by it or any Restricted Subsidiary or used or held
for use in the conduct of its business or the business of any Restricted
Subsidiary to be maintained and kept in good condition, repair and working order
(ordinary wear and tear and damage by casualty excepted) and supplied with all
necessary equipment and shall cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
however, that nothing in this Section 4.19 shall prevent the Company from
discontinuing the maintenance of any such

                                      -77-
<PAGE>

properties if such discontinuance is, in the judgment of the Company, desirable
in the conduct of the business of the Company and the Restricted Subsidiaries as
a whole and not disadvantageous in any material respect to the Holders.

          SECTION 4.20.  Insurance.  The Company shall maintain, and shall
                         ---------
cause its Restricted Subsidiaries to maintain, insurance with carriers believed
by the Company to be responsible, against such risks and in such amounts, and
with such deductibles, retentions, self-insured amounts and coinsurance
provisions, as the Company believes are customarily carried by similar
businesses, of similar size, including as appropriate general liability,
property and casualty loss and interruption of business insurance.

                                 ARTICLE FIVE

                             SUCCESSOR CORPORATION

          SECTION 5.01.  Merger, Consolidation and Sale of Assets.  (a)  The
                         ----------------------------------------
Company shall not, in a single transaction or series of related transactions,
consolidate or merge with or into any Person, or sell, assign, transfer, lease,
convey or otherwise dispose of (or cause or permit any Restricted Subsidiary of
the Company to sell, assign, transfer, lease, convey or otherwise dispose of)
all or substantially all of the Company's assets (determined on a consolidated
basis for the Company and the Company's Restricted Subsidiaries) whether as an
entirety or substantially as an entirety to any Person unless:

          (1)  either:

               (A) the Company shall be the surviving or continuing corporation;
          or

               (B) the Person (if other than the Company) formed by such
          consolidation or into which the Company is merged or the Person which
          acquires by sale, assignment, transfer, lease, conveyance or other
          disposition the properties and assets of the Company and of the
          Company's Restricted Subsidiaries substantially as an entirety (the

          "Surviving Entity"):
           ----------------

                   (x) shall be a corporation organized and validly existing
               under the laws of any country that is a member of the European
               Union as currently constituted or the United States or any State
               thereof or the District of Columbia; and

                   (y) shall expressly assume, by supplemental indenture (in
               form and substance satisfactory to the Trustee), executed and
               delivered to the Trustee, the due and punctual payment of the
               principal of, and

                                      -78-
<PAGE>

               premium, if any, and interest on all of the Notes and the
               performance of every covenant of the Notes, this Indenture and
               the Registration Rights Agreement on the part of the Company to
               be performed or observed;

          (2) immediately after giving effect to such transaction and the
     assumption contemplated by Section 5.01(a)(1)(B)(y) above (including giving
     effect to any Indebtedness and Acquired Indebtedness incurred or
     anticipated to be incurred in connection with or in respect of such
     transaction), the Company or such Surviving Entity, as the case may be, (a)
     shall have a Consolidated Net Worth equal to or greater than the
     Consolidated Net Worth of the Company immediately prior to such transaction
     and (b) shall be able to incur at least $1.00 of additional Indebtedness
     (other than Permitted Indebtedness) pursuant to Section 4.03;

          (3) immediately before and immediately after giving effect to such
     transaction and the assumption contemplated by Section 5.01(a)(1)(B)(y)
     above (including, without limitation, giving effect to any Indebtedness and
     Acquired Indebtedness incurred or anticipated to be incurred and any Lien
     granted in connection with or in respect of the transaction), no Default or
     Event of Default shall have occurred or be continuing; and

          (4) the Company or the Surviving Entity shall have delivered to the
     Trustee an Officers' Certificate and an Opinion of Counsel, each stating
     that such consolidation, merger, sale, assignment, transfer, lease,
     conveyance or other disposition and, if a supplemental indenture is
     required in connection with such transaction, such supplemental indenture
     comply with the applicable provisions of this Indenture and that all
     conditions precedent in this Indenture relating to such transaction have
     been satisfied.

          For purposes of the foregoing, the transfer (by lease, assignment,
sale or otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of one or more Restricted
Subsidiaries of the Company the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.

          (b) Upon any consolidation, combination or merger or any transfer of
all or substantially all of the assets of the Company in accordance with Section
5.01(a) in which the Company is not the continuing corporation, the successor
Person formed by such consolidation or into which the Company is merged or to
which such conveyance, lease or transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture and the Notes with the same effect as if such surviving entity
had been named as such.

                                      -79-
<PAGE>

          (c) Each Guarantor (other than any Guarantor whose Guarantee is to be
released in accordance with the terms of its Guarantee and this Indenture in
connection with any transaction complying with Section 4.10) shall not, and the
Company shall not cause or permit any Guarantor to, consolidate with or merge
with or into any Person other than the Company or any other Guarantor unless:

          (1) the entity formed by or surviving any such consolidation or merger
     (if other than the Guarantor) or to which such sale, lease, conveyance or
     other disposition shall have been made is a corporation organized and
     existing under the laws of the United States or any State thereof or the
     District of Columbia;

          (2) such entity assumes by supplemental indenture all of the
     obligations of the Guarantor on its Guarantee;

          (3) immediately after giving effect to such transaction, no Default or
     Event of Default shall have occurred and be continuing; and

          (4) immediately after giving effect to such transaction and the use of
     any net proceeds therefrom on a pro forma basis, the Company could satisfy
     Section 5.01(a)(2).

          Any merger or consolidation of a Guarantor with and into the Company
(with the Company being the surviving entity) or another Guarantor that is a
Wholly Owned Restricted Subsidiary of the Company need only comply with Section
5.01(a)(4).

          The provisions of this Section 5.01 shall not apply to transactions
undertaken pursuant to an Inversion Transaction; provided that (i) the
Supplemental Indenture is executed and in effect concurrently with the
consummation of such Inversion Transaction; (ii) immediately following such
Inversion Transaction, the Company shall apply to S&P and Moody's to have its
debt rating and outlook updated and such updated debt rating and outlook shall
be no less favorable to the Company than immediately prior to such Inversion
Transaction; (iii) immediately following such Inversion Transaction, the
Company's Consolidated Fixed Charge Coverage Ratio is at least equal to the
Consolidated Fixed Charge Coverage Ratio immediately prior to such Inversion
Transaction; and (iv) immediately following such Inversion Transaction, the
Company is able to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) in compliance with Section 4.03.

          SECTION 5.02.  Successor Substituted.  In the event of a sale,
                         ---------------------
assignment, transfer, conveyance or other disposition (other than a lease)
described in and complying with the conditions listed in Section 5.01 in which
the Company is not the Surviving Entity and the Surviving Entity assumes all the
obligations of the Company under the Notes, this Indenture and the Registration
Rights Agreement, the Surviving Entity will succeed to, and be substituted for,
and may exercise every right and power of, the Company under such agreements and

                                      -80-
<PAGE>

the Company shall be discharged from its obligations under the Notes, this
Indenture and the Registration Rights Agreement.

                                  ARTICLE SIX

                             DEFAULT AND REMEDIES

            SECTION 6.01.  Events of Default.  (a)  The following events are
                           -----------------
defined as "Events of Default":
            -----------------

            (1) the failure to pay interest on any Notes when the same becomes
     due and payable and the default continues for a period of 30 days (whether
     or not such payment shall be prohibited by Article Ten hereof);

            (2) the failure to pay the principal on any Notes, when such
     principal becomes due and payable, at maturity, upon redemption or
     otherwise (including the failure to make a payment to purchase Notes
     tendered pursuant to a Change of Control Offer or a Net Proceeds Offer) on
     the date specified for such payment in the applicable offer to purchase
     (whether or not such payment shall be prohibited by Article Ten hereof);

            (3) a default in the observance or performance of any other covenant
     or agreement contained in this Indenture which default continues for a
     period of 45 days after the Company receives written notice specifying the
     default (and demanding that such default be remedied) from the Trustee or
     the Holders of at least 25% of the outstanding principal amount of the
     Notes (except in the case of a default with respect to Section 5.01, which
     will constitute an Event of Default with such notice requirement but
     without such passage of time requirement);

            (4) the failure to pay at final stated maturity (giving effect to
     any applicable grace periods and any extensions thereof) the principal
     amount of any Indebtedness of the Company or any Restricted Subsidiary of
     the Company, or the acceleration of the final stated maturity of any such
     Indebtedness (which acceleration is not rescinded, annulled or otherwise
     cured within 20 days of receipt by the Company or such Restricted
     Subsidiary of notice of any such acceleration) if the aggregate principal
     amount of such Indebtedness, together with the principal amount of any
     other such Indebtedness in default for failure to pay principal at final
     stated maturity or which has been accelerated (in each case with respect to
     which the 20-day period described above has passed), aggregates $10.0
     million or more at any time;

            (5) one or more judgments in an aggregate amount in excess of $10.0
     million shall have been rendered against the Company or any of its
     Significant Subsidiar-

                                      -81-
<PAGE>

     ies and such judgments remain undischarged, unpaid or unstayed for a period
     of 60 days after such judgment or judgments become final and non-
     appealable;

            (6) the Company or any of its Significant Subsidiaries, pursuant to
     or within the meaning of any Bankruptcy Law,

                (i)    commences a voluntary case,

                (ii)   consents to the entry of an order for relief against it
            in an involuntary case,

                (iii)  consents to the appointment of a Custodian of it or for
            all or substantially all of its assets, or

                (iv)   makes a general assignment for the benefit of its
            creditors;

            (7) a court of competent jurisdiction enters an order or decree
     under any Bankruptcy Law that:

                (i)    is for relief against the Company or any of its
     Significant Subsidiaries as debtor in an involuntary case,

                (ii)   appoints a Custodian of the Company or any of its
     Significant Subsidiaries or a Custodian for all or substantially all of the
     assets of the Company or any Restricted Subsidiary, or

                (iii)  orders the liquidation of the Company or any of its
Significant Subsidiaries, and in each case, the order or decree remains unstayed
and in effect for 60 days; or

            (8) any Guarantee of a Significant Subsidiary ceases to be in full
     force and effect or any Guarantee of a Significant Subsidiary is declared
     to be null and void and unenforceable or any Guarantee of a Significant
     Subsidiary is found to be invalid or any Guarantor that is a Significant
     Subsidiary denies its liability under its Guarantee (other than, in each
     case, by reason of release of a Guarantor in accordance with the terms of
     this Indenture).

            (b) If an Event of Default (other than an Event of Default specified
in Section 6.01(a)(6) or 6.01 (a)(7) above with respect to the Company) shall
occur and be continuing, the Trustee or the Holders of at least 25% in principal
amount of outstanding Notes may declare the principal of and accrued interest on
all the Notes to be due and payable by notice in writing to the Company, the
Representative under the Credit Agreement and the Trustee specifying the
applicable Event of Default and that it is a "notice of acceleration" (the
Acceleration Notice"), and the same:
--------------------

                                      -82-
<PAGE>

          (1) shall become immediately due and payable; or

          (2) if there are any amounts outstanding under the Credit Agreement,
     shall become immediately due and payable upon the first to occur of an
     acceleration under the Credit Agreement and five Business Days after
     receipt by the Company and the Representative under the Credit Agreement of
     such Acceleration Notice but only if such Event of Default is then
     continuing.

          If an Event of Default specified in Section 6.01(a)(6) or 6.01(a)(7)
above with respect to the Company occurs and is continuing, then all unpaid
principal of, and premium, if any, and accrued and unpaid interest on all of the
outstanding Notes shall ipso facto become and be immediately due and payable
without any declaration or other act on the part of the Trustee or any Holder.

          (c) At any time after a declaration of acceleration with respect to
the Notes as described in Section 6.01(b), the Holders of a majority in
principal amount of the Notes may rescind and cancel such declaration and its
consequences:

          (1) if the rescission would not conflict with any judgment or decree;

          (2) if all existing Events of Default have been cured or waived except
     nonpayment of principal or interest that has become due solely because of
     the acceleration;

          (3) to the extent the payment of such interest is lawful, interest on
     overdue installments of interest and overdue principal, which has become
     due otherwise than by such declaration of acceleration, has been paid;

          (4) if the Company has paid the Trustee its reasonable compensation
     and reimbursed the Trustee for its expenses, disbursements and advances;
     and

          (5) in the event of the cure or waiver of an Event of Default of the
     type described in Section 6.01(a)(6) or 6.01(a)(7), the Trustee shall have
     received an Officers' Certificate and an Opinion of Counsel that such Event
     of Default has been cured or waived.

No such rescission shall affect any subsequent Default or impair any right
consequent thereto.

          The Holders of a majority in principal amount of the Notes may waive
any existing Default or Event of Default under this Indenture, and its
consequences, except a default in the payment of the principal of or interest on
any Notes.

          Holders of the Notes may not enforce this Indenture or the Notes
except as provided in this Indenture and under the TIA.  The Trustee is under no
obligation to exercise

                                      -83-
<PAGE>

any of its rights or powers under this Indenture at the request, order or
direction of any of the Holders, unless such Holders have offered to the Trustee
reasonable indemnity. Subject to all provisions of this Indenture and applicable
law, the Holders of a majority in aggregate principal amount of the then
outstanding Notes have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee.

          SECTION 6.02.  Notice of Defaults.  The Trustee shall, within 90
                         ------------------
days after the occurrence of any Default with respect to the Notes, give the
Holders notice of all uncured Defaults thereunder known to it; provided,
however, that, except in the case of an Event of Default in payment with respect
to the Notes or a Default in complying with Section 5.01, the Trustee shall be
protected in withholding such notice if and so long as a committee of its trust
officers in good faith determines that the withholding of such notice is in the
interest of the Holders.

          SECTION 6.03.  Other Remedies.  If an Event of Default occurs and is
                         --------------
continuing, the Trustee may pursue any available remedy by proceeding at law or
in equity to collect the payment of principal of, premium, if any, or interest
on the Notes or to enforce the performance of any provision of the Notes or this
Indenture.

          The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding.  Holders of the
Notes may not enforce this Indenture or the Notes except as provided in Section
6.02, Section 6.05, Section 6.06 and Section 6.07.

          SECTION 6.04.  Waiver of Past Defaults.  Subject to Sections 6.02,
                         -----------------------
6.07 and 9.02, the Holders of at least a majority in principal amount of the
outstanding Notes, by notice to the Trustee, may waive an existing Default or
Event of Default and its consequences, except a Default in the payment of
principal of, premium, if any, or interest on any Note as specified in clause
(a) or (b) of Section 6.01 which cannot be waived without the consent of the
Holder of such Note or in respect of a covenant or provision of this Indenture
which cannot be modified or amended without the consent of the Holder of each
outstanding Note affected.  Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been
cured, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right
consequent thereto.

          SECTION 6.05.  Control by Majority.  Subject to Section 7.02(e), the
                         -------------------
Holders of a majority in aggregate principal amount of the Notes may direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or of exercising any trust or power conferred on the Trustee.
However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture or that the Trustee determines is unduly prejudicial to the
rights of other Holders or would involve the Trustee in personal liability;

                                      -84-
<PAGE>

provided, however, that the Trustee may take any other action deemed proper by
the Trustee that is not inconsistent with such direction.

          SECTION 6.06.  Limitation on Suits.  A Holder may not pursue any
                         -------------------
proceeding, judicial or otherwise, with respect to this Indenture and the Notes
or for the appointment of a receiver or trustee, or for any other remedy
hereunder unless:

          (i)    the Holder gives the Trustee written notice of a continuing
     Event of Default;

          (ii)   the Holders of at least 25% in aggregate principal amount of
     outstanding Notes make a written request to the Trustee to pursue the
     remedy;

          (iii)  such Holder or Holders offer the Trustee indemnity satisfactory
     to the Trustee against any costs, liability or expense;

          (iv)   the Trustee does not comply with the request within 15 days
     after receipt of the request and the offer of indemnity; and

          (v)    during such 15-day period, the Holders of a majority in
     aggregate principal amount of the outstanding Notes do not give the Trustee
     a direction that is inconsistent with the request.

          However, such limitations do not apply to a suit instituted by a
Holder of any Note for enforcement of payment of the principal of or interest on
such Note on or after the due date therefor (after giving effect to any grace
period specified in Section 6.01(a) and only with respect to the amount of such
missed payment).

          For purposes of Section 6.05 of this Indenture and this Section 6.06,
the Trustee shall comply with TIA Section 316(a) in making any determination of
whether the Holders of the required aggregate principal amount of outstanding
Notes have concurred in any request or direction of the Trustee to pursue any
remedy available to the Trustee or the Holders with respect to this Indenture
and the Notes or otherwise under the law.

          A Holder may not use this Indenture to prejudice the rights of another
Holder or to obtain a preference or priority over such other Holder.

          SECTION 6.07.  Rights of Holders to Receive Payment. Notwithstanding
                         ------------------------------------
any other provision of this Indenture, the right of any Holder of a Note to
receive payment of the principal amount of, Additional Interest, if any, or
interest on, such Note or to bring suit for the enforcement of any such payment,
on or after the due date expressed in the Notes, shall not be impaired or
affected without the consent of such Holder.

                                      -85-
<PAGE>

          SECTION 6.08.  Collection Suit by Trustee.  If an Event of Default
                         --------------------------
in payment of principal, premium or interest specified in clause (1) or (2) of
Section 6.01(a) occurs and is continuing, the Trustee may recover judgment in
its own name and as trustee of an express trust against the Company or any other
obligor of the Notes for the whole amount of principal, premium, if any, and
accrued interest remaining unpaid, together with interest on overdue principal
and premium and, to the extent that payment of such interest is lawful, interest
on overdue installments of interest, in each case at the rate specified in the
Notes, and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

          SECTION 6.09.  Trustee May File Proofs of Claim.  The Trustee may
                         --------------------------------
file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07) and the Holders allowed in any judicial proceedings relative to
the Company (or any other obligor of the Notes), its creditors or its property
and shall be entitled and empowered to collect and receive any monies,
securities or other property payable or deliverable upon conversion or exchange
of the Notes or upon any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it for the reasonable compensation expenses,
disbursements and advances of the Trustee, its agent and counsel, and any other
amounts due the Trustee under Section 7.07.  Nothing herein contained shall be
deemed to empower the Trustee to authorize or consent to, or accept or adopt on
behalf of any Holder, any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

          SECTION 6.10.  Priorities.  If the Trustee collects any money
                         ----------
pursuant to this Article Six it shall pay out the money in the following order:

          First:  to the Trustee for all amounts due under Section 7.07 and any
     receiver, manager, administrative receiver, liquidator or agent appointed
     subject to this Indenture;

          Second:  to Holders for amounts then due and unpaid for principal of,
     premium, if any, and interest on the Notes in respect of which or for the
     benefit of which such money has been collected, ratably, without preference
     or priority of any kind, according to the amounts due and payable on such
     Notes for principal, premium, if any, and interest, respectively; and

                                      -86-
<PAGE>

          Third:  to the Company and any other obligors of the Notes, as their
     interests may appear, or as a court of competent jurisdiction may direct.

          The Trustee, upon prior written notice to the Company, may fix a
record date and payment date for any payment to Holders pursuant to this Section
6.10.

          SECTION 6.11.  Undertaking for Costs.  In any suit for the
                         ---------------------
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court may
require any party litigant in such suit to file an undertaking to pay the costs
of the suit, and the court may assess reasonable costs, including reasonable
attorneys' fees and expenses, against any party litigant in the suit having due
regard to the merits and good faith of the claims or defenses made by the party
litigant.  This Section 6.11 does not apply to a suit by the Trustee, a suit by
a Holder pursuant to Section 6.07, or a suit by Holders of more than 10% in
principal amount of the outstanding Notes.

          SECTION 6.12.  Restoration of Rights and Remedies.  If the Trustee
                         ----------------------------------
or any Holder has instituted any proceeding to enforce any right or remedy under
this Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then,
and in every such case, subject to any determination in such proceeding, the
Company, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Company, Trustee and the Holders shall continue as though no
such proceeding had been instituted.

          SECTION 6.13.  Rights and Remedies Cumulative.  Except as otherwise
                         ------------------------------
provided with respect to the replacement or payment of mutilated, destroyed,
lost or wrongfully taken Notes in Section 2.08, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

          SECTION 6.14.  Delay or Omission Not Waiver.  No delay or omission
                         ----------------------------
of the Trustee or of any Holder to exercise any right or remedy accruing upon
any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or an acquiescence therein.  Every right and
remedy given by this Article Six or by law to the Trustee or to the Holders may
be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

                                      -87-
<PAGE>

                                 ARTICLE SEVEN

                                    TRUSTEE

          SECTION 7.01.  General.  The duties and responsibilities of the
                         -------
Trustee shall be as provided by the TIA and as set forth herein.  The Trustee
undertakes to perform such duties as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee.  Notwithstanding the foregoing, no provision of
this Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or indemnity
satisfactory to it against such risk or liability is not reasonably assured to
it.  Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Article
Seven.

          SECTION 7.02.  Certain Rights, Duties and Responsibilities of Trustee.
                         ------------------------------------------------------
Subject to TIA Sections 315(a) through (d):

          (a) if any Event of Default has occurred and is continuing of which a
     Responsible Officer of the Trustee has actual knowledge, the Trustee shall
     exercise such of the rights and powers vested in it by this Indenture, and
     use the same degree of care and skill in their exercise as a prudent Person
     would exercise or use under the circumstances in the conduct of such
     Person's own affairs;

          (b) the Trustee may conclusively rely and shall be protected in acting
     or refraining from acting, upon any resolution, certificate, statement,
     instrument, opinion, report, notice, request, direction, consent, order,
     bond, debenture, note, other evidence of indebtedness or other paper or
     document (whether in its original or facsimile form) believed by it to be
     genuine and to have been signed or presented by the proper person.  The
     Trustee need not investigate any fact or matter stated in the document;

          (c) before the Trustee acts or refrains from acting, it may require an
     Officers' Certificate and/or an Opinion of Counsel, which shall conform to
     the certificate or opinion described in Section 13.03 or Section 13.04, as
     the case may be.  The Trustee shall not be liable for any action it takes
     or omits to take in good faith in reliance on such certificate or opinion;

          (d) the Trustee may consult with and act through attorneys and agents
     of its selection and the advice of such attorneys and agents shall be full
     and complete authorization and protection in respect of any action taken,
     suffered or omitted by it hereunder in good faith and in reliance thereon;

                                      -88-
<PAGE>

          (e) the Trustee shall be under no obligation to exercise any of the
     rights or powers vested in it by this Indenture at the request or direction
     of any of the Holders, unless such Holders shall have offered to the
     Trustee reasonable security or indemnity satisfactory to it against the
     costs, expenses and liabilities that might be incurred by it in compliance
     with such request or direction;

          (f) the Trustee shall not be liable for any action it takes or omits
     to take in good faith that it believes to be authorized or within its
     rights or powers or for any action it takes or omits to take in accordance
     with the direction of the Holders of the requisite percentage in principal
     amount of the outstanding Notes required by this Indenture relating to the
     time, method and place of conducting any proceeding for any remedy
     available to the Trustee, or exercising any trust or power conferred upon
     the Trustee, under this Indenture;

          (g) whenever in the administration of this Indenture the Trustee shall
     deem it desirable that a matter be proved or established prior to taking,
     suffering or omitting any action hereunder, the Trustee (unless other
     evidence be herein specifically prescribed), in the absence of bad faith on
     its part, may conclusively rely, as to the truth of the statements and the
     correctness of the opinions expressed therein, upon an Officers'
     Certificate or an Opinion of Counsel furnished to it and conforming with
     the requirements of this Indenture; but in the case of any such Officers'
     Certificate or Opinion of Counsel which by provision hereof are
     specifically required to be furnished to the Trustee, the Trustee shall be
     under a duty to examine the same to determine whether or not they conform
     to the requirements of this Indenture (but need not confirm or investigate
     the accuracy of mathematical calculations or other facts stated therein);

          (h) the Trustee shall not be bound to make any investigation into the
     facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, direction, consent, order,
     bond, debenture, note, other evidence of indebtedness or other paper or
     document, but the Trustee, in its discretion, may make such further inquiry
     or investigation into such facts or matters as it may see fit, and, if the
     Trustee shall determine to make such further inquiry or investigation, it
     shall be entitled to examine the books, records and premises of the Company
     personally or by agent or attorney at the sole cost of the Company and
     shall incur no liability or additional liability of any kind by reason of
     such inquiry or investigation;

          (i) the Trustee shall not be deemed to have knowledge of any Default
     or Event of Default except any Default or Event of Default of which a
     Responsible Officer of the Trustee shall have received written
     notification, or obtained actual knowledge;

          (j) the Trustee may execute any of the trusts or powers hereunder or
     perform any duties hereunder either directly or by or through agents or
     attorneys and the

                                      -89-
<PAGE>

     Trustee shall not be responsible for any misconduct or negligence on the
     part of any agent or attorney appointed with due care by it hereunder; and

          (k) the rights, privileges, protections, immunities and benefits given
     to the Trustee, including, without limitation, its right to be indemnified,
     are extended to, and shall be enforceable by, the Trustee in each of its
     capacities hereunder, and to each agent, custodian and other Person
     employed to act hereunder.

          SECTION 7.03.  Individual Rights of Trustee.  The Trustee, in its
                         ----------------------------
individual or any other capacity, may become the owner or pledgee of Notes and
may otherwise deal with the Company or its Affiliates with the same rights it
would have if it were not the Trustee.  Any Agent may do the same with like
rights.  However, the Trustee is subject to TIA Sections 310(b) and 311.

          SECTION 7.04.  Trustee's Disclaimer.  The Trustee (a) makes no
                         --------------------
representation as to the validity, accuracy or adequacy of this Indenture, any
offering materials or the Notes, (b) shall not be accountable for the Company's
use or application of the proceeds from the Notes and (c) shall not be
responsible for any statement in the Notes other than its certificate of
authentication.

          SECTION 7.05.  Notice of Default.  If any Default or any Event of
                         -----------------
Default occurs and is continuing and if such Default or Event of Default is
actually known to a Responsible Officer of the Trustee, the Trustee shall mail
to each Holder in the manner and to the extent provided in TIA Section 313(c)
notice of the Default or Event of Default within 90 days after it occurs, unless
such Default or Event of Default has been cured; provided, however, that, except
in the case of a default in the payment of the principal of, premium, if any, or
interest on any Note, the Trustee shall be protected in withholding such notice
if and so long as the Board of Directors, the executive committee or a trust
committee of directors and/or Responsible Officers of the Trustee in good faith
determine that the withholding of such notice is in the interest of the Holders.
The Company shall give the Trustee notice of any uncured Default or Event of
Default within 30 days after any Responsible Officer of the Company becomes
aware of or receives actual notice of such Event of Default.

          SECTION 7.06.  Reports by Trustee to Holders.  Within 60 days after
                         -----------------------------
each May 15 following initial issuance, beginning with May 15, 2001 the Trustee
shall mail to each Holder as provided in TIA Section 313(c) a brief report dated
as of such May 15 if required by TIA Section 313(a).

          SECTION 7.07.  Compensation and Indemnity.  The Company shall pay to
                         --------------------------
the Trustee such compensation as shall be agreed upon in writing for its
services hereunder.  The compensation of the Trustee shall not be limited by any
law on compensation of a trustee of an express trust.  The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses and
advances incurred or made by the Trustee in each of its capacities

                                      -90-
<PAGE>

hereunder. Such expenses shall include the reasonable compensation and expenses
of the Trustee's agents and counsel.

          The Company shall indemnify the Trustee, in each of its capacities,
and any successor of the Trustee, in each of its capacities, for, and hold it
harmless against, any and all claims, damages, losses, costs, liability or
expense (including, without limitation, the reasonable fees and expenses of its
counsel and advisors) and taxes (other than taxes based on the income of the
Trustee) incurred by it without negligence or willful misconduct on its part
arising out of or in connection with the acceptance or administration of this
Indenture and its duties under this Indenture and the Notes and the exercise of
its rights and powers under this Indenture, including the costs and expenses of
defending itself against any claim or liability (whether asserted by the
Company, any Holder or any other Person) and of complying with any process
served upon it or any of its officers in connection with the exercise or
performance of any of its powers or duties under this Indenture and the Notes
and the exercise of the rights of the Trustee thereunder.  The Company need not
pay for any settlement made without its consent, which consent shall not be
unreasonably withheld.

          To secure the Company's payment obligations in this Section 7.07, the
Trustee shall have a lien prior to the Notes on all money or property held or
collected by the Trustee, in its capacity as Trustee, except money or property
held in trust to pay principal of, Additional Interest, if any, and interest on
particular Notes.

          If the Trustee incurs expenses or renders services after the
occurrence of an Event of Default specified in Sections 6.01(a)(6) and/or
6.01(a)(7), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services will be intended to constitute
expenses of administration under Title 11 of the United States Bankruptcy Code
or any applicable foreign, federal or state law for the relief of debtors.

          The provisions of this Section 7.07 shall survive the termination of
this Indenture, payment of the Notes and/or the removal or resignation of the
Trustee.

          SECTION 7.08.  Replacement of Trustee.  A resignation or removal of
                         ----------------------
the Trustee and appointment of a successor Trustee shall become effective only
upon the successor Trustee's acceptance of appointment as provided in this
Section 7.08.

          The Trustee may resign at any time by so notifying the Company in
writing at least 30 days prior to the date of the proposed resignation.  The
Holders of a majority in principal amount of the outstanding Notes may remove
the Trustee by so notifying the Trustee in writing and may appoint a successor
Trustee with the prior written consent of the Company.  The Company may remove
the Trustee by a Board Resolution if:  (a) the Trustee is no longer eligible
under Section 7.10; (b) the Trustee is adjudged a bankrupt or an insolvent; (c)
a receiver or other public officer takes charge of the Trustee or its property;
or (d) the Trustee becomes incapable of acting.

                                       91
<PAGE>

          If the Trustee resigns or is removed, or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee.  Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.  If
the successor Trustee does not deliver its written acceptance required by the
next succeeding paragraph of this Section 7.08 within 30 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company or the Holders
of a majority in principal amount of the outstanding Notes may petition, at the
expense of the Company, any court of competent jurisdiction for the appointment
of a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company.  Immediately after the
delivery of such written acceptance, subject to the lien provided in Section
7.07, (i) the retiring Trustee shall transfer all property held by it as Trustee
to the successor Trustee, (ii) the resignation or removal of the retiring
Trustee shall become effective and (iii) the successor Trustee shall have all
the rights, powers and duties of the Trustee under this Indenture.  A successor
Trustee shall mail notice of its succession to each Holder.

          If the Trustee is no longer eligible under Section 7.10, any Holder
who satisfies the requirements of TIA Section 310(b) may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

          The Company shall give notice of any resignation and any removal of
the Trustee and each appointment of a successor Trustee to all Holders.  Each
notice shall include the name of the successor Trustee and the address of its
Corporate Trust Office.

          Notwithstanding replacement of the Trustee pursuant to this Section
7.08, the Company's obligation under Section 7.07 shall continue for the benefit
of the retiring Trustee.

          SECTION 7.09.  Successor Trustee by Merger, Etc.  If the Trustee
                         --------------------------------
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation or national banking
association, the resulting, surviving or transferee corporation or national
banking association without any further act shall be the successor Trustee with
the same effect as if the successor Trustee had been named as the Trustee
herein.

          SECTION 7.10.  Eligibility.  This Indenture shall always have a
                         -----------
Trustee who satisfies the requirements of TIA Section 310(a)(1).  The Trustee
shall have a combined capital and surplus of at least $50.0 million as set forth
in its most recent published annual report of condition.

          SECTION 7.11.  Money Held in Trust.  The Trustee shall not be liable
                         -------------------
for interest on any money received by it except as the Trustee may agree in
writing with the Company.  Money held in trust by the Trustee need not be
segregated from other funds except to

                                       92
<PAGE>

the extent required by law and except for money held in trust under Article
Eight of this Indenture.

          SECTION 7.12. Withholding Taxes.  The Paying Agent, as agent for
                        -----------------
the Company, shall exclude and withhold from each payment of principal and
interest and other amounts due hereunder or under the Notes any and all
withholding taxes applicable thereto as required by law, as directed in writing
by the Company.  The Paying Agent agrees to act as such withholding agent and,
in connection therewith, whenever any present or future taxes or similar charges
are required to be withheld with respect to any amounts payable in respect of
the Notes, to withhold such amounts, as directed in writing by the Company, and
timely pay the same to the appropriate authority, as directed in writing by the
Company, in the name of and on behalf of the Holders of the Notes, and to file
any necessary withholding tax returns or statements when due.  The Company or
the Trustee shall, as promptly as possible after the payment of the taxes
described above, deliver to each Holder of a Note documentation in form
satisfactory to the Company showing the payment thereof, together with such
additional documentary evidence as such Holders may reasonably request from time
to time.

          SECTION 7.13. Trustee's Application for Instructions from the Company.
                        -------------------------------------------------------
Any application by the Trustee for written instructions from the Company may, at
the option of the Trustee, set forth in writing any action proposed to be taken
or omitted by the Trustee under this Indenture and the date on and/or after
which such actions shall be taken or such omission shall be effective. The
Trustee shall not be liable for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date
specified in such application (which date shall not be less than three Business
Days after the date any Officer of the Company actually receives such
application, unless any such Officer shall have consented in writing to any
earlier date) unless prior to taking any such action (or the effective date in
the case of an omission), the Trustee shall have received written instructions
in response to such application specifying the action to be taken or omitted.

          SECTION 7.14. Appointment of Co-Trustee.  (a)  Notwithstanding any
                        -------------------------
other provisions of this Indenture, at any time, for the purpose of meeting any
legal requirement of any jurisdiction in which any part of the Notes may at the
time be located, the Trustee shall have the power and may execute and deliver
all instruments necessary to appoint one or more Persons to act as a co-trustee
or co-trustees, or separate trustee or separate trustees, of all or any part of
the Notes, and to vest in such Person or Persons, in such capacity and for the
benefit of the Holders, such title to the Notes, or any part hereof, and subject
to the other provisions of this Section 7.14, such powers, duties, obligations,
rights and trusts as the Trustee may consider necessary or desirable.  No notice
to Holders of the appointment of any co-trustee or separate trustee shall be
required.

          (b) Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                                       93
<PAGE>

            (i)   all rights, powers, duties and obligations conferred or
     imposed upon the Trustee shall be conferred or imposed upon and exercised
     or performed by the Trustee and such separate trustee or co-trustee jointly
     (it being understood that such separate trustee or co-trustee is not
     authorized to act separately without the Trustee joining in such act)
     except to the extent that under any law of any jurisdiction in which any
     particular act or acts are to be performed the Trustee shall be incompetent
     or unqualified or it shall be unreasonably burdensome for the Trustee to
     perform such act or acts, in which event such rights, powers, duties and
     obligations (including the holding of title to the Notes or any portion
     thereof in any such jurisdiction) shall be exercised and performed singly
     by such separate trustee or co-trustee, but solely at the direction of the
     Trustee;

            (ii)  no trustee hereunder shall be personally liable by reason of
     any act or omission of any other trustee hereunder; and

            (iii) the Trustee may at any time accept the resignation of or
     remove any separate trustee or co-trustee.

            (c)   Any notice, request or other writing given to the Trustee
shall be deemed to have been given to each of the then separate trustees and co-
trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Indenture and
the conditions of this Article Seven. Each separate trustee and co-trustee, upon
its acceptance of the appointment, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with the Trustee or
separately, as may be provided therein, subject to all the provisions of this
Indenture, specifically including every provision of this Indenture relating to
the conduct of, affecting the liability of, or affording protection or rights
(including the rights to compensation, reimbursement and indemnification
hereunder) to, the Trustee. Every such instrument shall be filed with the
Trustee.

            (d)   Any separate trustee or co-trustee may at any time constitute
the Trustee its agent or attorney-in-fact with full power and authority, to the
extent not prohibited by law, to do any lawful act under or in respect of this
Indenture on its behalf and in its name. If any separate trustee or co-trustee
shall die, become incapable of acting, resign or be removed, all of its estates,
properties, rights, remedies and trusts shall vest in and be exercised by the
Trustee, to the extent permitted by law, until the appointment of a new trustee
or successor to such separate or co-trustee.

                                       94
<PAGE>

                                 ARTICLE EIGHT

                             DISCHARGE OF INDENTURE

          SECTION 8.01.  Termination of Company's Obligations.  Except as
                         ------------------------------------
otherwise provided in this Section 8.01, the Company may terminate its and the
Guarantors' obligations under this Indenture and the Notes if:

          (1)  either:

          (a)  all the Notes theretofore authenticated and delivered (except
     lost, stolen or destroyed Notes that have been replaced or paid and Notes
     for whose payment money has theretofore been deposited in trust or
     segregated and held in trust by the Company and thereafter repaid to the
     Company or discharged from such trust) have been delivered to the Trustee
     for cancellation; or

          (b)  all Notes not theretofore delivered to the Trustee for
     cancellation have become due and payable, and the Company has irrevocably
     deposited or caused to be deposited with the Trustee funds in an amount
     sufficient to pay and discharge the entire Indebtedness on the Notes not
     theretofore delivered to the Trustee for cancellation, for principal of,
     premium, if any, and interest on the Notes to the date of deposit together
     with irrevocable instructions from the Company directing the Trustee to
     apply such funds to the payment thereof at maturity or redemption, as the
     case may be;

          (2) the Company has paid all other sums payable under this Indenture
     by the Company; and

          (3) the Company has delivered to the Trustee an Officers' Certificate
     and an Opinion of Counsel stating that all conditions precedent under this
     Indenture relating to the satisfaction and discharge of this Indenture have
     been complied with.

          With respect to the foregoing clause (1), the Company's and the
Guarantors' obligations under Sections 7.07 and 14.08 shall survive such
satisfaction and discharge.  With respect to the foregoing clause (2), the
Company's and the Guarantors' obligations in Sections 2.02, 2.03, 2.04, 2.05,
2.06, 2.07, 2.08, 2.10, 2.13, 4.02, 4.13, 7.07, 7.08, 8.04, 8.05, 8.06 and 14.08
shall survive until the Notes are no longer outstanding.  Thereafter, only the
Company's and the Guarantors' obligations in Sections 7.07, 8.05, 8.06 and 14.08
shall survive.  After any such irrevocable deposit, the Trustee upon written
request of the Company shall acknowledge in writing the discharge of the
Company's and the Guarantors' obligations under the Notes and this Indenture,
except for those surviving obligations specified above.

          SECTION 8.02.  Defeasance and Discharge of Indenture.  The Company
                         -------------------------------------
will be deemed to have paid and will, together with the Guarantors, be
discharged from any and all

                                       95
<PAGE>

obligations in respect of this Indenture and the Notes on the date of the
deposit referred to in clause (A) of this Section 8.02, and the provisions of
this Indenture will no longer be in effect with respect to the Notes ("Legal
                                                                       -----
Defeasance"), and the Trustee, at the expense of the Company, shall execute
----------
proper instruments acknowledging the same, except for the following provisions
which shall survive until otherwise terminated or discharged hereunder: (a) the
rights of Holders of outstanding Notes to receive solely from the trust fund
described in clause (A) below payments in respect of the principal of, premium,
if any, and interest on such Notes when such payments are due, (b) the Company's
obligations with respect to such Notes under Article Two and Section 4.02
hereof, (c) the rights, powers, trusts, duties, indemnities and immunities of
the Trustee hereunder, including, without limitation, Section 7.07 hereof and
the Company's obligations in connection therewith and (d) this Article Eight.
Subject to compliance with this Article Eight, the Company may exercise its
option under this Section 8.02 notwithstanding the prior exercise of its option
under Section 8.03 hereof. The following conditions shall apply to Legal
Defeasance:

          (A) the Company must irrevocably deposit with the Trustee, in trust,
     for the benefit of the Holders cash in Euros, non-callable Government
     Obligations of any member nation of the European Union whose official
     currency is the Euro, rated AAA or better by S&P and Aaa by Moody's, or a
     combination thereof, in such amounts as will be sufficient, in the opinion
     of a nationally recognized firm of independent public accountants, to pay
     the principal of, premium, if any, and interest on the Notes on the stated
     date for payment thereof or on the applicable redemption date, as the case
     may be;

          (B)  the Company shall have delivered to the Trustee an Opinion of
     Counsel in the United States reasonably acceptable to the Trustee
     confirming that:

               (i)  the Company has received from, or there has been published
          by the United States Internal Revenue Service, a ruling, or

               (ii) since the date of this Indenture, there has been a change in
          the applicable U.S. federal income tax law,

     in either case to the effect that, and based thereon this Opinion of
     Counsel shall confirm that, the Holders will not recognize income, gain or
     loss for U.S. federal income tax purposes as a result of the Legal
     Defeasance and will be subject to U.S. federal income tax on the same
     amounts, in the same manner and at the same times as would have been the
     case if such Legal Defeasance had not occurred;

          (C)  no Default shall have occurred and be continuing on the date of
     such deposit (other than a Default resulting from the borrowing of funds to
     be applied to such deposit and the grant of any Lien securing such
     borrowing);

                                       96
<PAGE>

          (D)  the Legal Defeasance shall not result in a breach or violation
     of, or constitute a default under this Indenture (other than a Default
     resulting from the borrowing of funds to be applied to such deposit and the
     grant of any Lien securing such borrowing) or any other material agreement
     or instrument (including, without limitation, the Credit Agreement) to
     which the Company or any of its Subsidiaries is a party or by which the
     Company or any of its Subsidiaries is bound;

          (E)  the Company shall have delivered to the Trustee an Officers'
     Certificate stating that the deposit was not made by it with the intent of
     preferring the Holders over any other of its creditors or with the intent
     of defeating, hindering, delaying or defrauding any other of its creditors
     or others;

          (F)  the Company shall have delivered to the Trustee an Officers'
     Certificate and an Opinion of Counsel, each stating that the conditions
     provided for in, in the case of the Officers' Certificate, clauses (A)
     through (E) and, in the case of the Opinion of Counsel, clauses (A) (with
     respect to the validity and perfection of the security interest), (B) and
     (D) of this Section 8.02 have been complied with; and

          (G)  the Company shall have delivered to the Trustee an Opinion of
     Counsel to the effect that:

               (i)  the trust funds will not be subject to any rights of holders
          of Senior Debt, including, without limitation, those arising under the
          Indenture; and

               (ii) assuming no intervening bankruptcy of the Company between
          the date of deposit and the 124th day following the date of deposit
          and that no Holder is an insider of the Company, after the 124th day
          following the date of deposit, the trust funds will not be subject to
          the effect of any applicable bankruptcy, insolvency, reorganization or
          similar laws affecting creditors' rights generally

          The Company's and the Guarantors' obligations in Sections 2.02, 2.03,
2.04, 2.05, 2.06, 2.07, 2.08, 2.10, 2.13, 4.02, 4.13, 7.07, 7.08, 8.05, 8.06 and
14.08 shall survive until the Notes are no longer outstanding.  Thereafter, only
the Company's and the Guarantors' obligations in Sections 7.07, 8.05, 8.06 and
14.08  shall survive.

          After any such irrevocable deposit, the Trustee upon request shall
acknowledge in writing the discharge of the Company's obligations under the
Notes and this Indenture except for those surviving obligations in the
immediately preceding paragraph.

          Notwithstanding the foregoing, the Opinion of Counsel required by
Section 8.02(B) with respect to a Legal Defeasance need not be delivered if all
Notes not theretofore delivered to the Trustee for cancellation (1) have become
due and payable or (2) will become due and payable on the maturity date or a
redemption date within one year under arrangements

                                      -97-
<PAGE>

satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company.

          SECTION 8.03.  Defeasance of Certain Obligations.  The Company may
                         ---------------------------------
omit to comply with any term, provision or condition set forth in Section
5.01(a)(3) and Sections 4.03 through 4.16 and Sections 4.18 through 4.20 and
breach of clauses (a)(4), (a)(5) and (a)(8) under Section 6.01 shall be deemed
not to be Events of Default ("Covenant Defeasance"), in each case with respect
                              -------------------
to the outstanding Notes if:

          (A) the Company irrevocably deposits with the Trustee, in trust, for
     the benefit of the Holders cash in Euros, non-callable Government
     Obligations of any member nation of the European Union whose official
     currency is the Euro, rated AAA or better by S&P and Aaa by Moody's, or a
     combination thereof, in such amounts as will be sufficient, in the opinion
     of a nationally recognized firm of independent public accountants, to pay
     the principal of, premium, if any, and interest on the Notes on the stated
     date for payment thereof or on the applicable redemption date, as the case
     may be;

          (B) the Company shall have delivered to the Trustee an Opinion of
     Counsel in the United States reasonably acceptable to such Trustee
     confirming that the Holders will not recognize income, gain or loss for
     U.S. federal income tax purposes as a result of such Covenant Defeasance
     and will be subject to U.S. federal income tax on the same amounts, in the
     same manner and at the same times as would have been the case if the
     Covenant Defeasance had not occurred;

          (C) no Default shall have occurred and be continuing on the date of
     such deposit (other than a Default or Event of Default resulting from the
     borrowing of funds to be applied to such deposit and the grant of any Lien
     securing such borrowing);

          (D) the Covenant Defeasance shall not result in a breach or violation
     of, or constitute a default under this Indenture (other than a Default or
     Event of Default resulting from the borrowing of funds to be applied to
     such deposit and the grant of any Lien securing such borrowing) or any
     other material agreement or instrument (including, without limitation, the
     Credit Agreement) to which the Company or any of its Subsidiaries is a
     party or by which the Company or any of its Subsidiaries is bound;

          (E) the Company shall have delivered to the Trustee an Officers'
     Certificate stating that the deposit was not made by it with the intent of
     preferring the Holders over any other of its creditors or with the intent
     of defeating, hindering, delaying or defrauding any other of its creditors
     or others;

          (F) the Company shall have delivered to the Trustee an Officers'
     Certificate and an Opinion of Counsel, each stating that the conditions
     provided for in, in the case

                                       98
<PAGE>

     of the Officers' Certificate, clauses (A) through (E) and, in the case of
     the Opinion of Counsel, clauses (A) (with respect to the validity and
     perfection of the security interest), (B) and (D) of this Section 8.03 have
     been complied with; and

          (G) the Company shall have delivered to the Trustee an Opinion of
     Counsel to the effect that:

              (i)  the trust funds will not be subject to any rights of holders
          of Senior Debt, including, without limitation, those arising under
          this Indenture; and

              (ii) assuming no intervening bankruptcy of the Company between the
          date of deposit and the 124th day following the date of deposit and
          that no Holder is an insider of the Company, after the 124th day
          following the date of deposit, the trust funds will not be subject to
          the effect of any applicable bankruptcy, insolvency, reorganization or
          similar laws affecting creditors' rights generally.

          If the funds deposited with the Trustee to effect Covenant Defeasance
are insufficient to pay the principal of and interest on the Notes when due,
then the Company's obligations and the obligations of the Guarantors under this
Indenture will be revived and no such defeasance will be deemed to have
occurred.

          SECTION 8.04.  Application of Trust Money.  Subject to Section 8.06,
                         --------------------------
the Trustee or Paying Agent shall hold in trust money or Government Obligations
deposited with it pursuant to Section 8.01, 8.02 or 8.03, as the case may be,
and shall apply the deposited money and the money from Government Obligations in
accordance with the Notes and this Indenture to the payment of principal of,
premium, if any, and interest on the Notes.

          SECTION 8.05.  Repayment to Company.  Subject to Sections 7.07,
                         --------------------
8.01, 8.02 and 8.03, the Trustee and the Paying Agent shall promptly pay to the
Company upon request set forth in an Officers' Certificate any excess money held
by them at any time and thereupon shall be relieved from all liability with
respect to such money.  The Trustee and the Paying Agent shall pay to the
Company upon written request any money held by them for the payment of
principal, premium, if any, or interest that remains unclaimed for two years;
provided that the Trustee or such Paying Agent before being required to make any
payment shall cause to be published at the expense of the Company once in a
newspaper of general circulation in the City of New York and the Trustee or such
Paying Agent will cause a copy of such notice to be published in a daily
newspaper with general circulation in Luxembourg (expected to be the Luxemburger
Wort) or mail to each Holder entitled to such money at such Holder's address (as
set forth in the Register) notice that such money remains unclaimed and that
after a date specified therein (which shall be at least 30 days from the date of
such publication or mailing) any unclaimed balance of such money then remaining
will be repaid to the Company.  After payment to the Company, Holders entitled
to such money must look to the Company for

                                       99
<PAGE>

payment as general creditors unless an applicable law designates another Person,
and all liability of the Trustee and such Paying Agent with respect to such
money shall cease.

          SECTION 8.06.  Reinstatement.  If the Trustee or Paying Agent is
                         -------------
unable to apply any money or Government Obligations in accordance with Section
8.01, 8.02 or 8.03, as the case may be, by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company's
obligations under this Indenture and the Notes shall be revived and reinstated
as though no deposit had occurred pursuant to Section 8.01, 8.02 or 8.03, as the
case may be, until such time as the Trustee or Paying Agent is permitted to
apply all such money or Government Obligations in accordance with Section 8.01,
8.02 or 8.03, as the case may be; provided that if the Company has made any
payment of principal of, premium, if any, or interest on any Notes because of
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Notes to receive such payment from the money or
Government Obligations held by the Trustee or Paying Agent.

                                 ARTICLE NINE

                      AMENDMENTS, SUPPLEMENTS AND WAIVERS

          SECTION 9.01.  Without Consent of Holders.  The Company, when
                         --------------------------
authorized by a resolution of its Board of Directors (as evidenced by a Board
Resolution), and the Trustee may amend or supplement this Indenture, the Notes
and any Guarantee without notice to or the consent of any Holder:

          (1) to cure any ambiguity, defect or inconsistency;

          (2) to provide for uncertificated Notes in addition to or in place of
     certificated Notes;

          (3) to provide for the assumption of the Company's or any Guarantor's
     obligations to Holders in the case of a merger, consolidation, amalgamation
     or other combination of the Company or any Guarantor or sale of all or
     substantially all of the Company's or such Guarantor's assets;

          (4) to make any change that would provide any additional rights or
     benefits to the Holders of Notes or that does not materially adversely
     affect the rights or interests under this Indenture of any such Holder;

          (5) to alter the form of Notes to provide for any changes in
     applicable tax laws to the extent that such changes do not materially
     adversely affect the rights or interests of any Holder;

                                      100
<PAGE>

          (6)  to comply with requirements of the Commission in order to effect
     or maintain the qualification of this Indenture under the Trust Indenture
     Act; or

          (7)  to comply with the requirement that the Supplemental Indenture
     be executed and delivered by the New Parent and the Former Parent pursuant
     to an Inversion Transaction.

          This Section 9.01 is subject to Section 9.05.

          SECTION 9.02.  With Consent of Holders.  Subject to Sections 6.04
                         -----------------------
and 6.07 and without prior notice to the Holders, the Company, when authorized
by its Board of Directors (as evidenced by a Board Resolution), and the Trustee
may amend this Indenture, the Notes or the Guarantees with the written consent
of the Holders of a majority in aggregate principal amount of the Notes then
outstanding, and the Holders of a majority in aggregate principal amount of the
Notes then outstanding by written notice to the Trustee may waive compliance by
the Company with any provision of this Indenture, the Notes or the Guarantees.

          Notwithstanding the foregoing provisions of this Section 9.02, without
the consent of each Holder affected, an amendment or waiver, including a waiver
pursuant to Section 6.04, may not:

               (i)    reduce the amount of Notes whose Holders must consent to
          an amendment;

               (ii)   reduce the rate of or change or have the effect of
          changing the time for payment of interest, including defaulted
          interest, on any Notes;

               (iii)  reduce the principal of or change or have the effect of
          changing the fixed maturity of any Notes, or change the date on which
          any Notes may be subject to redemption or reduce the redemption price
          therefor;

               (iv)   make any Notes payable in money other than that stated in
          the Notes;

               (v)    make any change in provisions of this Indenture protecting
          the right of each Holder to receive payment of principal of and
          interest on such Note on or after the due date thereof or to bring
          suit to enforce such payment, or permitting Holders of a majority in
          principal amount of Notes to waive Defaults or Events of Default;

               (vi)   after the Company's obligation to purchase Notes arises
          thereunder, amend, change or modify in any material respect the
          obligation of the Company to make and consummate a Change of Control
          Offer in the event of a Change of Control or make and consummate a Net
          Proceeds Offer with respect

                                     -101-
<PAGE>

          to any Asset Sale that has been consummated or, after such Change of
          Control has occurred or such Asset Sale has been consummated, modify
          any of the provisions or definitions with respect thereto;

               (vii)  modify or change any provision of this Indenture or the
          related definitions affecting the subordination or ranking of the
          Notes or the Guarantees in a manner which adversely affects the
          Holders; or

               (viii) release any Guarantor that is a Significant Subsidiary
          from any of its obligations under its Guarantee or this Indenture
          otherwise than in accordance with the terms of this Indenture.

          It shall not be necessary for the consent of the Holders under this
Section 9.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.

          After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, supplement or waiver. The Company shall
mail supplemental indentures to Holders upon request. Any failure of the Company
to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture or waiver.

          This Section 9.02 is subject to Section 9.05.

          SECTION 9.03.  Revocation and Effect of Consent.  Until an amendment
                         --------------------------------
or waiver becomes effective, a consent to it by a Holder is a continuing consent
by the Holder and every subsequent Holder of a Note or portion of a Note that
evidences the same debt as the Note of the consenting Holder, even if notation
of the consent is not made on any Note. However, any such Holder or subsequent
Holder may revoke the consent as to its Note or portion of its Note. Such
revocation shall be effective only if the Trustee receives the notice of
revocation before the date the amendment, supplement or waiver becomes
effective. An amendment, supplement or waiver shall become effective on receipt
by the Trustee of written consents from the Holders of the requisite percentage
in principal amount of the outstanding Notes and any other conditions thereto
specified in the notice relating thereto.

          The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders entitled to consent to any amendment,
supplement or waiver. If a record date is fixed, then, notwithstanding the last
two sentences of the immediately preceding paragraph, those persons who were
Holders at such record date (or their duly designated proxies) and only those
persons shall be entitled to consent to such amendment, supplement or waiver or
to revoke any consent previously given, whether or not such persons

                                     -102-
<PAGE>

continue to be Holders after such record date. No such consent shall be valid or
effective for more than 90 days after such record date.

          After an amendment, supplement or waiver becomes effective, it shall
bind every Holder unless it is of the type described in any of clauses (i)
through (viii) of Section 9.02. In case of an amendment or waiver of the type
described in clauses (i) through (viii) of Section 9.02, the amendment or waiver
shall bind each Holder who has consented to it and every subsequent Holder of a
Note that evidences the same indebtedness as the Note of the consenting Holder.

          SECTION 9.04.  Notation on or Exchange of Notes.  If an amendment,
                         --------------------------------
supplement or waiver changes the terms of a Note, the Trustee may require the
Holder to deliver it to the Trustee. The Trustee shall, if directed in writing
by the Company, place an appropriate notation on the Note about the changed
terms and return it to the Holder and the Trustee shall, if directed in writing
by the Company, place an appropriate notation on any Note thereafter
authenticated. Alternatively, if the Company so determines, the Company in
exchange for the Note shall issue and the Trustee upon the Company's written
direction in the form of a Company Order shall authenticate a new Note that
reflects the changed terms.

          SECTION 9.05.  Trustee to Sign Amendments, Etc.  The Trustee shall
                         -------------------------------
be entitled to receive, and shall be fully protected in relying upon an
Officers' Certificate and an Opinion of Counsel stating that the execution of
any amendment, supplement or waiver authorized pursuant to this Article Nine is
authorized and permitted by this Indenture (and otherwise in form and substance
satisfactory to the Trustee) and, in the case of an Inversion Transaction, that
the Supplemental Indenture is a legal and binding obligation of the New Parent
and enforceable against the New Parent in accordance with its terms. Subject to
the preceding sentence, the Trustee shall sign such amendment, supplement or
waiver if the same does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. The Trustee may, but shall not be obligated to,
execute any such amendment, supplement or waiver that affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise.

          SECTION 9.06.  Conformity with Trust Indenture Act.  Every
                         -----------------------------------
supplemental indenture executed pursuant to this Article Nine shall conform to
the requirement of the TIA as then in effect.

                                  ARTICLE TEN

                                 SUBORDINATION

          SECTION 10.01.  Notes Subordinated to Senior Debt.  Anything herein
                          ---------------------------------
to the contrary notwithstanding, the Company, for itself and its successors, and
each Holder agrees that the payment of all Obligations owing on, or relating to,
the Notes to the Holders is subor

                                     -103-
<PAGE>

dinated, to the extent and in the manner provided in this Article Ten, to the
prior payment in full in cash or Cash Equivalents of all Obligations on Senior
Debt (including all Obligations with respect to the Credit Agreement), whether
outstanding on the Issue Date or thereafter incurred. Notwithstanding the
provisions of this Article Ten, payments and distributions made relating to the
Notes pursuant to a trust fund established under Section 8.04 pursuant to the
terms of Article Eight (so long as all of the applicable conditions contained in
Article Eight were satisfied at the time of such payment) shall not be
subordinated to Senior Debt under this Article Ten.

          This Article Ten shall constitute a continuing offer to all Persons
who become holders of, or continue to hold, Senior Debt, and such provisions are
made for the benefit of the holders of Senior Debt and such holders are made
obligees hereunder and any one or more of them may enforce such provisions.

          SECTION 10.02.  Suspension of Payment When Senior Debt Is in Default.
                          ----------------------------------------------------
(a) If any default occurs and is continuing in the payment when due, whether at
maturity, upon any redemption, by declaration or otherwise, of any principal of,
premium, if any, or interest on, unpaid drawings for letters of credit issued in
respect of, or regularly accruing fees with respect to, any Designated Senior
Debt or any other Senior Debt of at least $25.0 million aggregate principal
amount (including, without limitation, guarantees of the foregoing items which
constitute such Senior Debt) (a "Payment Default"), then no payment or
                                 ---------------
distribution of any kind or character shall be made by or on behalf of the
Company or any other Person on its or their behalf with respect to any
Obligations owing on, or relating to, the Notes or to acquire any of the Notes
for cash or property or otherwise until such Payment Default (and all other
Payment Defaults) shall have been cured or waived in accordance with the terms
of the documentation governing the respective Designated Senior Debt or such
other Senior Debt or ceased to exist or all Designated Senior Debt or all other
such Senior Debt with respect to which any Payment Default has occurred and is
continuing shall have been discharged or paid in full in cash or Cash
Equivalents.

          (b) If any event of default (other than a Payment Default) occurs and
is continuing with respect to any Designated Senior Debt (as such event of
default is defined in the instrument creating or evidencing such Designated
Senior Debt) permitting the holders of such Designated Senior Debt then
outstanding to accelerate the maturity thereof (a "Non-payment Default"), and if
                                                   -------------------
the Representative for the respective issue of Designated Senior Debt gives
notice of the event of default to the Trustee stating that such notice is a
payment blockage notice (a "Payment Blockage Notice"), then during the period
                            -----------------------
(the "Payment Blockage Period") beginning upon the delivery of such Payment
      -----------------------
Blockage Notice and ending on the earliest of (x) the date on which such Non-
payment Default is cured or waived (so long as no other Non-payment Default
exists), (y) 180 days after the date on which the applicable Payment Blockage
Notice is received, and (z) the date on which the Trustee receives notice
thereof from the Representative for the respective issue of Designated Senior
Debt terminating the Payment Blockage Period, neither the Company nor any other
Person on its behalf shall

                                     -104-
<PAGE>

(i) make any payment of any kind or character with respect to any Obligations
owing on, or with respect to, the Notes or (ii) acquire any of the Notes for
cash or property or otherwise. Notwithstanding anything herein to the contrary,
(x) in no event will a Payment Blockage Period extend beyond 180 days from the
date the applicable Payment Blockage Notice is received by the Trustee and (y)
only one such Payment Blockage Period may be commenced within any 360
consecutive days. For all purposes of this Section 10.02(b), no event of default
which existed or was continuing on the date of the commencement of any Payment
Blockage Period with respect to the Designated Senior Debt shall be, or be made,
the basis for the commencement of a second Payment Blockage Period by the
Representative of such Designated Senior Debt whether or not within a period of
360 consecutive days, unless such event of default shall have been cured or
waived for a period of not less than 90 consecutive days (it being acknowledged
that any subsequent action, or any breach of any financial covenants for a
period ending after the date of commencement of such Payment Blockage Period
that, in either case, would give rise to an event of default pursuant to any
provisions under which an event of default previously existed or was continuing
shall constitute a new event of default for this purpose).

          (c)  In the event that, notwithstanding the foregoing, any payment
shall be received by the Trustee or any Holder when such payment is prohibited
by the foregoing provisions of this Section 10.02, such payment shall be held in
trust for the benefit of, and shall be paid over or delivered to, the holders of
Senior Debt (pro rata to such holders on the basis of the respective amount of
Senior Debt held by such holders) or their respective Representatives, as their
respective interests may appear.  The Trustee shall be entitled to rely on
information regarding amounts then due and owing on the Senior Debt, if any,
received from the holders of Senior Debt (or their Representatives) or, if such
information is not received from such holders or their Representatives, from the
Company and only amounts included in the information provided to the Trustee
shall be paid to the holders of Senior Debt.

          Nothing contained in this Article Ten shall limit the right of the
Trustee or the Holders to take any action to accelerate the maturity of the
Notes and all other Obligations owing under the Notes pursuant to Article Six or
to pursue any rights or remedies hereunder (subject to the rights, if any, under
this Article Ten, of the holders of Senior Debt in respect of cash, property or
securities of the Company received upon the exercise of any such remedy);
provided that all Senior Debt thereafter due or declared to be due shall first
be paid in full in cash or Cash Equivalents before the Holders are entitled to
receive any payment of any kind or character with respect to Obligations owing
on, or with respect to, the Notes.

          SECTION 10.03.  Obligations Subordinated to Prior Payment of All
                          ------------------------------------------------
Senior Debt on Dissolution, Liquidation or Reorganization of Company.  (a)
--------------------------------------------------------------------
Upon any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to creditors upon any total
or partial liquidation, dissolution, winding-up, reorganization, assignment for
the benefit of creditors or marshaling of assets of the Company or in a
bankruptcy, reorganization, insolvency, receivership or other similar proceeding
relating to the

                                     -105-
<PAGE>

Company or its assets, whether voluntary or involuntary, all Obligations in
respect of Senior Debt due or to become due shall first be paid in full in cash
or Cash Equivalents (including interest after the commencement of any bankruptcy
or other like proceeding at the rate specified in the applicable Senior Debt
whether or not such interest is an allowed claim in any such proceeding), before
any payment or distribution of any kind or character is made on account of any
Obligations on, or with respect to, the Notes or for the acquisition of any of
the Notes for cash or property or otherwise. Upon any such dissolution, winding-
up, liquidation, reorganization, receivership or similar proceeding, any payment
or distribution of assets of the Company of any kind or character, whether in
cash, property or securities, to which the Holders or the Trustee would be
entitled, except for the provisions hereof, shall be paid by the Company or by
any receiver, trustee in bankruptcy, liquidating trustee, agent or other Person
making such payment or distribution, or by the Holders or by the Trustee if
received by it, directly to the holders of Senior Debt (pro rata to such holders
on the basis of the respective amounts of Senior Debt held by such holders) or
their respective Representatives, or to the trustee or trustees under any
indenture pursuant to which any of such Senior Debt may have been issued, as
their respective interests may appear, for application to the payment of Senior
Debt remaining unpaid until all such Senior Debt has been paid in full in cash
or Cash Equivalents after giving effect to any concurrent payment, distribution
or provision therefor to or for the holders of Senior Debt.

          (b)  To the extent any payment of Senior Debt (whether by or on behalf
of the Company, as proceeds of security or enforcement of any right of setoff or
otherwise) is declared to be fraudulent or preferential, set aside or required
to be paid to any receiver, trustee in bankruptcy, liquidating trustee, agent or
other similar Person under any bankruptcy, insolvency, receivership, fraudulent
conveyance or similar law, then, if such payment is recovered by, or paid over
to, such receiver, trustee in bankruptcy, liquidating trustee, agent or other
similar Person, the Senior Debt or part thereof originally intended to be
satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred.

          It is further agreed that any diminution (whether pursuant to court
decree or otherwise, including without limitation for any of the reasons
described in the preceding paragraph) of the Company's obligation to make any
distribution or payment pursuant to any Senior Debt, except to the extent such
diminution occurs by reason of the repayment (which has not been disgorged or
returned) of such Senior Debt in cash or Cash Equivalents, shall have no force
or effect for purposes of the subordination provisions contained in this Article
Ten, with any turnover of payments as otherwise calculated pursuant to this
Article Ten to be made as if no such diminution had occurred.

          (c)  In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, shall be received by the Trustee or any Holder when such
payment or distribution is prohibited by this Section 10.03, such payment or
distribution shall be held in trust for the benefit of, and shall be paid over
or delivered to, the holders of Senior Debt (pro rata to such holders

                                     -106-
<PAGE>

on the basis of the respective amount of Senior Debt held by such holders) or
their respective Representatives, or to the trustee or trustees under any
indenture pursuant to which any of such Senior Debt may have been issued, as
their respective interests may appear, for application to the payment of Senior
Debt remaining unpaid until all such Senior Debt has been paid in full in cash
or Cash Equivalents, after giving effect to any concurrent payment, distribution
or provision therefor to or for the holders of such Senior Debt.

          SECTION 10.04.  Payments May Be Paid Prior to Dissolution.  Nothing
                          -----------------------------------------
contained in this Article Ten or elsewhere in this Indenture shall prevent (i)
the Company, except under the conditions described in Sections 10.02 and 10.03,
from making payments at any time for the purpose of making payments of principal
of and interest on the Obligations owing under the Notes, or from depositing
with the Trustee, any monies for such payments, or (ii) in the absence of actual
knowledge by the Trustee that a given payment would be prohibited by Section
10.02, 10.03, 12.02 or 12.03, the application by the Trustee of any monies
deposited with it for the purpose of making such payments of principal of, and
interest on, the Obligations owing under the Notes to the Holders entitled
thereto unless at least one Business Day prior to the date upon which such
payment would otherwise become due and payable the Trustee shall have actually
received the written notice provided for in Section 10.13, in the first sentence
of Section 10.02(b) or in the last sentence of this Section 10.04 (provided
that, notwithstanding the foregoing, the Holders receiving any payments made in
contravention of Sections 10.02 and/or 10.03 (and such payments) shall otherwise
be subject to the provisions of Sections 10.02 and 10.03). The Company shall
give prompt written notice to the Trustee of any dissolution, winding-up,
liquidation or reorganization of the Company, although any delay or failure to
give any such notice shall have no effect on the subordination provisions
contained herein.

          SECTION 10.05.  Holders to Be Subrogated to Rights of Holders of
                          ------------------------------------------------
Senior Debt.  Subject to the payment in full in cash or Cash Equivalents of
-----------
all Senior Debt, the Holders shall be subrogated to the rights of the holders of
Senior Debt to receive payments or distributions of cash, property or securities
of the Company applicable to the Senior Debt until the Obligations owing under
the Notes shall be paid in full; and, for the purposes of such subrogation, no
such payments or distributions to the holders of the Senior Debt by or on behalf
of the Company, or by or on behalf of the Holders by virtue of this Article Ten,
which otherwise would have been made to the Holders shall, as between the
Company and the Holders, be deemed to be a payment by the Company to or on
account of the Senior Debt, it being understood that the provisions of this
Article Ten are and are intended solely for the purpose of defining the relative
rights of the Holders, on the one hand, and the holders of Senior Debt, on the
other hand.

          SECTION 10.06.  Obligations of the Company Unconditional.  Nothing
                          ----------------------------------------
contained in this Article Ten or elsewhere in this Indenture is intended to or
shall impair, as among the Company, its creditors other than the holders of
Senior Debt, and the Holders, the obligation of the Company, which is absolute
and unconditional, to pay to the Holders the

                                     -107-
<PAGE>

principal of and any interest on the Obligations owing under the Notes as and
when the same shall become due and payable in accordance with their terms, or is
intended to or shall affect the relative rights of the Holders and creditors of
the Company other than the holders of the Senior Debt, nor shall anything herein
or therein prevent any Holder or the Trustee on its behalf from exercising all
remedies otherwise permitted by applicable law upon default under this
Indenture, subject to the rights, if any, under this Article Ten, of the holders
of Senior Debt in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.

          SECTION 10.07.  Reliance on Judicial Order or Certificate of
                          --------------------------------------------
Liquidating Agent.  Whenever a distribution is to be made or a notice given to
-----------------
holders of Designated Senior Debt, the distribution may be made and the notice
given to their Representative.

          Upon any payment or distribution of assets of the Company referred to
in this Article Ten, the Trustee and the Holders shall be entitled to rely upon
any order or decree made by any court of competent jurisdiction in which any
insolvency, bankruptcy, receivership, dissolution, winding-up, liquidation,
reorganization or similar case or proceeding is pending, or upon a certificate
of the receiver, trustee in bankruptcy, liquidating trustee, assignee for the
benefit of creditors, agent or other person making such payment or distribution,
delivered to the Trustee or the Holders, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of
the Senior Debt and other Indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article Ten. Nothing in this Article Ten
shall apply to the claims of, or payments to, the Trustee in its capacity as
such under or pursuant to Section 7.07 or the Paying Agent, Transfer Agent or
Registrar in their capacity as such under or pursuant to Section 14.08. The
Trustee shall be entitled to rely on the delivery to it of a written notice by a
Person representing himself or itself to be a holder of any Senior Debt (or a
trustee on behalf of, or other representative of, such holder) to establish that
such notice has been given by a holder of such Senior Debt or a trustee or
representative on behalf of any such holder.

          In the event that the Trustee determines in good faith that any
evidence is required with respect to the right of any Person as a holder of
Senior Debt to participate in any payment or distribution pursuant to this
Article Ten, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Debt held by
such Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article Ten, and if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

          SECTION 10.08.  Subordination Rights Not Impaired by Acts or Omissions
                          ------------------------------------------------------
of the Company or Holders of Senior Debt  .  No right of any present or future
----------------------------------------
holders of any Senior Debt to enforce subordination as provided herein shall at
any time in any way be preju

                                     -108-
<PAGE>

diced or impaired by any act or failure to act on the part of the Company or by
any act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company with the terms of this Indenture, regardless of any
knowledge thereof which any such holder may have or otherwise be charged with.

          Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Debt may, at any time and from time to time, without the
consent of or notice to the Trustee or the Holders, without incurring
responsibility to the Trustee or the Holders and without impairing or releasing
the subordination provided in this Article Ten or the obligations hereunder of
the Holders to the holders of the Senior Debt, do any one or more of the
following: (i) change the manner, place or terms of payment or extend the time
of payment of, or renew or alter, Senior Debt, or otherwise amend or supplement
in any manner Senior Debt, or any instrument evidencing the same or any
agreement under which Senior Debt is outstanding; (ii) sell, exchange, release
or otherwise deal with any property pledged, mortgaged or otherwise securing
Senior Debt; (iii) release any Person liable in any manner for the payment or
collection of Senior Debt; and (iv) exercise or refrain from exercising any
rights against the Company and any other Person.

          SECTION 10.09.  Holders Authorize Trustee to Effectuate Subordination
                          -----------------------------------------------------
of Obligations.  Each Holder authorizes and expressly directs the Trustee on
--------------
its behalf to take such action as may be necessary or appropriate to effectuate,
as between the holders of Senior Debt and the Holders, the subordination
provided in this Article Ten, and appoints the Trustee its attorney-in-fact for
such purposes, including, in the event of any dissolution, winding-up,
liquidation or reorganization of the Company (whether in bankruptcy, insolvency,
receivership, reorganization or similar proceedings or upon an assignment for
the benefit of credits or otherwise) tending towards liquidation of the business
and assets of the Company, the filing of a claim for the unpaid balance of its
Obligations owing under the Notes and accrued interest in the form required in
those proceedings.

          If the Trustee does not file a proper claim or proof of debt in the
form required in such proceeding prior to 30 days before the expiration of the
time to file such claim or claims, then the holders of the Senior Debt or their
Representative shall have the right to file and are or is hereby authorized to
file an appropriate claim for and on behalf of the Holders.  Nothing herein
contained shall be deemed to authorize the Trustee or the holders of Senior Debt
or their Representative to authorize or consent to or accept or adopt on behalf
of any Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations owing under the Notes or the rights of any Holder
thereof, or to authorize the Trustee or the holders of Senior Debt or their
Representative to vote in respect of the claim of any Holder in any such
proceeding.

          SECTION 10.10.  This Article Ten Not to Prevent Events of Default.
                          -------------------------------------------------
The failure to make a payment on account of principal of or interest on the
Obligations owing under

                                     -109-
<PAGE>

the Notes by reason of any provision of this Article Ten will not be construed
as preventing the occurrence of an Event of Default.

          SECTION 10.11.  Amendments or Modifications to Article Ten.  No
                          ------------------------------------------
amendment of, or supplement or waiver to, this Indenture shall adversely effect
the rights of any holder of Senior Debt or Guarantor Senior Debt under Article
Ten or Article Twelve without the consent of such holder of Senior Debt or
Guarantor Senior Debt, as the case may be. Notwithstanding anything to the
contrary contained in this Indenture (but without limiting the provisions of the
immediately preceding sentence), no amendment or modification to any provision
of this Article Ten or the related definitions used herein (other than to cure
any ambiguity, defect, mistake or inconsistency herein, so long as such
amendment or modification does not adversely affect the rights of the holders of
any Senior Debt then outstanding) shall be permitted without the consent of the
Holders of at least a majority in principal amount of the Notes then outstanding
voting as a single class (including consents obtained in connection with a
tender offer or exchange offer for, or purchase of, the Notes) or, if required
by Section 9.02, by each Holder affected.

          SECTION 10.12.  Acceleration of Notes.  If payment of the Notes is
                          ---------------------
accelerated because of an Event of Default, the Company shall promptly notify
holders of Senior Debt of the acceleration.

          SECTION 10.13.  Notice to Trustee, Rights of Trustee and Paying Agent.
                          -----------------------------------------------------
The Company shall give prompt written notice to the Trustee of any fact known to
the Company which would prohibit the making of any payment to or by the Trustee
or any Holder in respect of the Notes or under any Guarantee pursuant to the
provisions of this Article Ten or Article Twelve, as the case may be, although
any delay or failure to give any such notice shall have no effect on the
subordination provisions contained herein. Notwithstanding the provisions of
this Article Ten or any other provision of this Indenture, neither the Trustee
nor any Paying Agent shall be charged with knowledge of the existence of any
facts that would prohibit the making of any payment or distribution by the
Trustee or such Paying Agent, and (in the absence of actual knowledge that the
respective payment will violate the applicable provisions of this Article Ten or
Article Twelve) the Trustee and such Paying Agent may continue to make payments
on the Notes, unless the Trustee or such Paying Agent shall have received, at
least one Business Day prior to the date of such payment, written notice of
facts that would cause the payment of any Obligations with respect to the Notes
to violate this Article Ten (although the receipt of such payment shall
otherwise be subject to the applicable provisions of this Article Ten) or
Article Twelve (although the receipt of such payment shall otherwise be subject
to the applicable provisions of Article Twelve). Only the Company, a Guarantor,
a holder of Senior Debt or a Representative thereof may give the notice. Nothing
in this Article Ten shall impair the claims of, or payments to, the Trustee in
its capacity as such under or pursuant to Section 7.07 or any Agent in its
capacity as such under or pursuant to Section 14.08. Nothing in this Section
10.13 is intended to or shall relieve any Holder of Notes from

                                     -110-
<PAGE>

the obligations imposed under Sections 10.02 and 10.03 with respect to other
distributions received in violation of the provisions hereof.

          The Trustee in its individual or any other capacity may hold Senior
Debt with the same rights it would have if it were not Trustee.  Any Agent may
do the same with like rights.

                                ARTICLE ELEVEN

                               GUARANTEE OF NOTES

          SECTION 11.01.  Guarantee.  Each Guarantor hereby unconditionally
                          ---------
guarantees, as a primary obligor and not merely a surety, subject to Article
Twelve, to each Holder of a Note authenticated and delivered by a Trustee and to
the Trustee and their successors, that:  (a) the principal of, premium, if any,
and interest on the Notes (and any Additional Interest payable thereon) will be
duly and punctually paid in full when due, whether at maturity, by acceleration
or otherwise, and interest on the overdue principal and (to the extent permitted
by law) interest, Additional Interest, if any, on the Notes and all other
obligations of the Company to the Holders or the Trustee hereunder (including
amounts due the Trustee under Section 7.07) and all other obligations under this
Indenture (the "Indenture Obligations") will be promptly paid in full or
                ---------------------
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Notes or any of such other
Obligations hereunder, the same will be promptly paid in full when due or
performed in accordance with the terms of the extension or renewal, whether at
the maturity date of the Notes, by acceleration or otherwise.  An Event of
Default under this Indenture or the Notes shall constitute an event of default
under any of the Guarantees, and shall entitle the Holders of Notes to
accelerate the obligations of each Guarantor hereunder in the same manner and to
the same extent as the obligations of the Company hereunder.

          Each Guarantor hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the absence of any action to enforce the Notes or
this Indenture, any release of any other Guarantor, the recovery of any judgment
against the Company, any action to enforce the same, whether or not its
Guarantee is affixed to any particular Note, or any other circumstance (other
than payment in full) which might otherwise constitute a legal or equitable
discharge or defense of each Guarantor.  Each Guarantor hereby waives the
benefit of diligence, presentment, demand of payment, filing of claims with a
court in the event of insolvency or bankruptcy of the Company, any right to
require a proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that its Guarantee will not be discharged except by
complete performance of the obligations contained in the Notes, this Indenture
and its Guarantee or as otherwise provided herein for the release of such
Guarantee.  The Guarantees are guarantees of payment and not of collection.  If
any Holder or the Trustee

                                     -111-
<PAGE>

is required by any court or otherwise to return to the Company or to the
Guarantors, or any custodian, trustee, liquidator or other similar official
acting in relation to the Company or the Guarantors, any amount paid by the
Company or the Guarantors to the Trustee or such Holder, each Guarantee, to the
extent theretofore discharged, shall be reinstated in full force and effect.
Each Guarantor further agrees that, as between it, on the one hand, and the
Holders of Notes and the Trustee, on the other hand, (a) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article Six for
the purposes of each Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (b) in the event of any acceleration of such obligations
as provided in Article Six, such obligations (whether or not due and payable)
shall forthwith become due and payable by each Guarantor for the purpose of its
Guarantee.

          The obligations of each Guarantor to the Holders and to the Trustee
pursuant to the Guarantee of such Guarantor and this Indenture are expressly
subordinate and subject in right of payment to the prior payment in full of all
Guarantor Senior Debt of such Guarantor, to the extent and in the manner
provided in Article Twelve.

          SECTION 11.02.  Execution and Delivery of Guarantee.  Guarantees,
                          -----------------------------------
substantially in the form included in Exhibit E of this Indenture, shall be
                                      ---------
executed by either manual or facsimile signature of an Officer of each
Guarantor.  The validity and enforceability of each Guarantee shall not be
affected by the fact that it is not affixed to any particular Note.

          Guarantees set forth in Section 11.01 shall remain in full force and
effect notwithstanding any failure to endorse on each Note a notation of such
Guarantee.

          If an Officer of a Guarantor whose signature is on this Indenture or a
Guarantee no longer holds that office at the time a Trustee authenticates the
Note on which such Guarantee is endorsed or at any time thereafter, such
Guarantor's Guarantee of such Note shall be valid nevertheless.

          The delivery of any Note by a Trustee, after the authentication
thereof hereunder, shall constitute due delivery of each Guarantee set forth in
this Indenture on behalf of its respective Guarantor.

          SECTION 11.03.  Waiver of Subrogation.  Until the Notes are paid in
                          ---------------------
full, each Guarantor hereby irrevocably waives and agrees not to exercise any
claim or other rights which it may now or hereafter acquire against the Company
or any other Restricted Subsidiary that arise from the existence, payment,
performance or enforcement of the Company's obligations under the Notes or this
Indenture and such Guarantor's obligations under its Guarantee and this
Indenture, in any such instance including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution, indemnification, and any
right to participate in any claim or remedy of the Holders, any Agent and the
Trustee against the Company or any other Restricted Subsidiary, whether or not
such claim, remedy or right arises in equity, or under

                                     -112-
<PAGE>

contract, statute or common law, including, without limitation, the right to
take or receive from the Company or any other Restricted Subsidiary, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights. If any amount
shall be paid to any Guarantor in violation of the preceding sentence and any
amounts owing to the Trustee, any Agent or the Holders of Notes under the Notes,
this Indenture, or any other document or instrument delivered under or in
connection with such agreements or instruments, shall not have been paid in
full, such amount shall have been deemed to have been paid to such Guarantor for
the benefit of, and held in trust for the benefit of, the Holders, such Agent,
and the Trustee and shall, subject to the provisions of Articles Ten and Twelve
and the last paragraph of Section 11.01, forthwith be paid to the Trustee for
the benefit of such Holders, such Agent and the Trustee to be credited and
applied to the obligations in favor of the Holders, such Agent and the Trustee,
whether matured or unmatured, in accordance with the terms of this Indenture.
Each Guarantor acknowledges that it will receive direct and indirect benefits
from the financing arrangements contemplated by this Indenture and that the
waiver set forth in this Section 11.03 is knowingly made in contemplation of
such benefits.

          SECTION 11.04.  Immediate Payment.  Each Guarantor shall make
                          -----------------
immediate payment to the Trustee on behalf of the Holders and the Trustee of all
obligations with respect to its Guarantee owing or payable to the respective
Holders upon receipt of a demand for payment therefor by the Trustee to such
Guarantor in writing.

          SECTION 11.05.  No Set-Off.  Each payment to be made by a Guarantor
                          ----------
hereunder in respect of any obligations with respect to its Guarantee shall be
payable in the currency or currencies in which such obligations are denominated,
and shall be made without set-off, counterclaim, reduction or diminution of any
kind or nature.

          SECTION 11.06.  Obligations Absolute.  The obligations of each
                          --------------------
Guarantor hereunder are and shall be absolute and unconditional and any monies
or amounts expressed to be owing or payable by such Guarantor hereunder which
may not be recoverable from such Guarantor on the basis of a Guarantee shall be
recoverable from such Guarantor as a primary obligor and principal debtor in
respect thereof.

          SECTION 11.07.  Obligations Continuing.  The obligations of each
                          ----------------------
Guarantor hereunder shall be continuing and shall remain in full force and
effect until all of the obligations with respect thereto have been paid and
satisfied in full.  Each Guarantor agrees with the Trustee that it will from
time to time deliver to the Trustee suitable acknowledgments of this continued
liability hereunder and under any other instrument or instruments in such form
as counsel to the Trustee may advise and as will prevent any action brought
against it in respect of any default hereunder being barred by any statute of
limitations now or hereafter in force in the jurisdiction of incorporation or
organization of such Guarantor or elsewhere and, in the event of the failure of
such Guarantor so to do, it hereby irrevocably appoints the Trustee and each of
them the attorneys and agents of such Guarantor to make, execute and deliver
such

                                     -113-
<PAGE>

written acknowledgment or acknowledgments or other instruments as may from time
to time become necessary or advisable, in the judgment of the Trustee on the
advice of counsel, to fully maintain and keep in force the liability of such
Guarantor hereunder.

          SECTION 11.08.  Obligations Not Reduced.  The obligations of each
                          -----------------------
Guarantor hereunder shall not be satisfied, reduced or discharged by any
intermediate payment or satisfaction of the whole or any part of the principal,
interest, fees and other monies or amounts which may at any time be or become
owing or payable under or by virtue of or otherwise in connection with the Notes
or this Indenture.

          SECTION 11.09.  Obligations Reinstated.  The obligations of each
                          ----------------------
Guarantor hereunder shall continue to be effective or shall be reinstated, as
the case may be, if at any time any payment which would otherwise have reduced
the obligations of each Guarantor hereunder (whether such payment shall have
been made by or on behalf of the Company or by or on behalf of such Guarantor)
is rescinded or reclaimed from any of the Holders and the Trustee upon the
insolvency, bankruptcy, liquidation or reorganization of the Company or such
Guarantor or otherwise, all as though such payment had not been made.  If demand
for, or acceleration of the time for, payment by the Company is stayed upon the
insolvency, bankruptcy, liquidation or reorganization of the Company, all such
indebtedness otherwise subject to demand for payment or acceleration shall
nonetheless be payable by each Guarantor as provided herein.

          SECTION 11.10.  Obligations Not Affected.  The obligations of each
                          ------------------------
Guarantor hereunder shall not be affected, impaired or diminished in any way by
any act, omission, matter or thing whatsoever, occurring before, upon or after
any demand for payment hereunder (and whether or not known or consented to by
such Guarantor or any of the Holders and the Trustee) which, but for this
provision, might constitute a whole or partial defense to a claim against each
Guarantor hereunder or might operate to release or otherwise exonerate such
Guarantor from any of its obligations hereunder or otherwise affect such
obligations, whether occasioned by default of any of the Holders and the Trustee
or otherwise, including, without limitation:

            (i)  any limitation of status or power, disability, incapacity or
     other circumstance relating to the Company or any other person, including
     any insolvency, bankruptcy, liquidation, reorganization, readjustment,
     composition, dissolution, winding-up or other proceeding involving or
     affecting the Company or any other person;

            (ii) any failure of the Company, whether or not without fault on its
     part, to perform or comply with any of the provisions of this Indenture or
     the Notes, or to give notice thereof to any Guarantor;

                                     -114-
<PAGE>

            (iii)  the taking or enforcing or exercising or the refusal or
     neglect to take or enforce or exercise any right or remedy from or against
     the Company or any other Person or their respective assets or the release
     or discharge of any such right or remedy;

            (iv)   the granting of time, renewals, extensions, compromises,
     concessions, waivers, releases, discharges and other indulgences to the
     Company or any other person;

            (v)    any change in the time, manner or place of payment of, or in
     any other term of, any of the Notes, or any other amendment, variation,
     supplement, replacement or waiver of, or any consent to departure from, any
     of the Notes or this Indenture, including, without limitation, any increase
     or decrease in the principal amount of or premium, if any, or interest on
     any of the Notes;

            (vi)   any change in the ownership, control, name, objects,
     businesses, assets, capital structure or constitution of the Company or any
     Guarantor;

            (vii)  any merger or amalgamation of the Company or any Guarantor
     with any Person or Persons;

            (viii) the occurrence of any change in the laws, rules, regulations
     or ordinances of any jurisdiction by any present or future action of any
     governmental authority or court amending, varying, reducing or otherwise
     affecting, or purporting to amend, vary, reduce or otherwise affect, any of
     the obligations of any Guarantor under its Guarantee; and

            (ix)   any other circumstance (other than by complete, irrevocable
     payment) that might otherwise constitute a legal or equitable discharge or
     defense of the Company under this Indenture or the Notes or of any
     Guarantor in respect of its guarantee hereunder.

            SECTION 11.11.  Waiver.  Without in any way limiting the provisions
                            ------
of Section 11.01 of this Indenture, each Guarantor hereby waives notice of
acceptance hereof, notice of any liability of such Guarantor hereunder, notice
or proof of reliance by the Holders and the Trustee upon the obligations of such
Guarantor hereunder, and diligence, presentment, demand for payment on the
Company, protest, notice of dishonor or non-payment of any of the obligations
under its Guarantee, or other notice or formalities to the Company or such
Guarantor of any kind whatsoever.

            SECTION 11.12.  No Obligation to Take Action Against Company.
                            --------------------------------------------
Neither the Trustee nor any of the Holders shall have any obligation to enforce
or exhaust any rights or remedies or to take any other steps under any security
for the obligations under the Guarantees or against the Company or any other
person or any property of the Company or any other person before the Trustee is
entitled to demand payment and performance by any Guarantor of its

                                     -115-
<PAGE>

liabilities and obligations under its Guarantee, and each Guarantor hereby
waives all benefit of discussion.

          SECTION 11.13.  Default and Enforcement.  (a)  If any Guarantor
                          -----------------------
fails to pay in accordance with Section 11.01 hereof, the Trustee may proceed in
its name as trustee hereunder in the enforcement of such Guarantee and such
Guarantor's obligations thereunder and hereunder by any remedy provided by law,
whether by legal proceedings or otherwise, and to recover from any Guarantor the
obligations of such Guarantor with respect to its Guarantee.

          (b) No Holder shall have the right to institute any suit, action or
proceeding against any Guarantor for any default hereunder except in the manner
and subject to the conditions set forth in Article Six of this Indenture, it
being understood and intended that no one or more Holders shall have any right
in any manner whatsoever to enforce any right hereunder by his or their action
except as aforesaid and that all powers and trusts hereunder shall be exercised
and all proceedings at law or in equity shall be instituted, had and maintained
by the Trustee, only as aforesaid and in any event for the benefit of all
Holders as provided in this Indenture.

          SECTION 11.14.  Costs and Expenses.  Each Guarantor shall pay on
                          ------------------
demand by the Trustee any and all costs, fees and expenses (including, without
limitation, the fees and the expenses of its counsel) incurred by the Trustee or
any of the Holders in enforcing any of their rights under its Guarantee.

          SECTION 11.15.  No Merger or Waiver; Cumulative Remedies.  No
                          ----------------------------------------
Guarantee shall operate by way of merger of any of the obligations of any
Guarantor under any other agreement, including, without limitation, this
Indenture.  No failure to exercise and no delay in exercising, on the part of
the Trustee or the Holders, any right, remedy, power or privilege hereunder or
under this Indenture or the Notes, shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege
hereunder or under this Indenture or the Notes preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege.
The rights, remedies, powers and privileges herein and under this Indenture, the
Notes and any other document or instrument between any Guarantor and/or the
Company and the Trustee, are cumulative and not exclusive of any rights,
remedies, powers and privilege provided by law.

          SECTION 11.16.  Survival of Obligations.  Without prejudice to the
                          -----------------------
survival of any of the other obligations of any Guarantor hereunder, the
obligations of each Guarantor under Section 11.01 shall survive the payment in
full of any obligations with respect to its Guarantee and shall be enforceable
against each Guarantor without regard to and without giving effect to any
defense, right of offset or counterclaim available to or which may be asserted
by the Company or any Guarantor.

                                     -116-
<PAGE>

          SECTION 11.17.  Guarantee in Addition to Other Obligations.  The
                          ------------------------------------------
obligations of each Guarantor under its Guarantee and this Indenture are in
addition to and not in substitution for any other obligations to the Trustee or
to any of the Holders in relation to this Indenture or the Notes and any
guarantees or security at any time held by or for the benefit of any of them.

          SECTION 11.18.  Successors and Assigns.  Each Guarantee shall be
                          ----------------------
binding upon and inure to the benefit of each Guarantor and the Trustee and the
other Holders and their respective successors and permitted assigns, except that
no Guarantor may assign any of its obligations hereunder except in accordance
with the provisions of Section 9.01 or Section 9.02 of this Indenture, as
applicable, or Section 5.01(c).

          SECTION 11.19.  Governing Law; Agent for Service; Submission to
                          -----------------------------------------------
Jurisdiction; Waiver of Immunities; Judgment Currency.  Each Guarantor hereby
-----------------------------------------------------
acknowledges and agrees to comply with and be bound by Section 13.07, Section
13.15 and Section 13.16 of this Indenture on the same terms as the Company and
as if the term "Guarantor" had therein been substituted for the term "Company."

          SECTION 11.20.  Limitation of Guarantor's Liability.  Any term or
                          ------------------------------------
provision of this Indenture to the contrary notwithstanding, the maximum
aggregate amount of the obligations guaranteed hereunder by any Guarantor shall
not exceed the maximum amount that can be hereby guaranteed without rendering
this Indenture, as it relates to such Guarantor, voidable under applicable law
relating to fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally.  To effectuate the foregoing
intention, the obligations of each Guarantor shall be limited to the maximum
amount as will, after giving effect to all other contingent and fixed
liabilities of such Guarantor (including, but not limited to, all Guarantor
Senior Debt 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 other Guarantor under its Guarantee or pursuant to its
contribution obligations hereunder, result in the obligations of such Guarantor
under its Guarantee not constituting a fraudulent conveyance or fraudulent
transfer under federal, state or foreign law.  Each Guarantor that makes a
payment or distribution under a Guarantee shall be entitled to a contribution
from each other Guarantor in an amount based on the consolidated net worth of
each Guarantor.

          SECTION 11.21.  Release of Guarantee.  In the event of a sale or
                          --------------------
other disposition of all of the assets of any Guarantor, by way of merger,
consolidation or otherwise, or a sale or other disposition of all of the Capital
Stock of any Guarantor then held by the Company and the Restricted Subsidiaries,
then that Guarantor will be released and relieved of any obligations under its
Guarantee; provided that the Net Cash Proceeds of such sale or other disposition
are applied in accordance with Section 4.10, to the extent required thereby.  In
addition, any Guarantor that is designated as an Unrestricted Subsidiary or that
otherwise ceases to be a Guarantor, in each case in accordance with the
provisions of this Indenture, will be re-

                                     -117-
<PAGE>

leased from its Guarantee upon effectiveness of such designation or when it
first ceases to be a Restricted Subsidiary, as the case may be.

                                ARTICLE TWELVE

                    SUBORDINATION OF GUARANTEE OBLIGATIONS

          SECTION 12.01.  Guarantee Obligations Subordinated to Guarantor Senior
                          ------------------------------------------------------
Debt.  Anything herein to the contrary notwithstanding, each of the Guarantors,
----
for itself and its successors, and each Holder agrees that the payment of all
Guarantee Obligations of such Guarantor are subordinated, to the extent and in
the manner provided in this Article Twelve, to the prior payment in full in cash
or Cash Equivalents of all Obligations on Guarantor Senior Debt of such
Guarantor (including all Obligations of such Guarantor with respect to the
Credit Agreement), whether outstanding on the Issue Date or thereafter incurred.

          This Article Twelve shall constitute a continuing offer to all Persons
who become holders of, or continue to hold, Guarantor Senior Debt, and such
provisions are made for the benefit of the holders of Guarantor Senior Debt and
such holders are made obligees hereunder and any one or more of them may enforce
such provisions.

          SECTION 12.02.  Suspension of Guarantee Obligations When Guarantor
                          --------------------------------------------------
Senior Debt Is in Default.  (a)  If any default occurs and is continuing in
-------------------------
the payment when due, whether at maturity, upon any redemption, by declaration
or otherwise, of any principal of, premium, if any, interest on, unpaid drawings
for letters of credit issued in respect of, or regularly accruing fees with
respect to, any Guarantor Senior Debt (including, without limitation, guarantees
of the foregoing items which constitute Guarantor Senior Debt), then no payment
or distribution of any kind or character shall be made by or on behalf of such
Guarantor or any other Person on its or their behalf with respect to any
Guarantee Obligations or to acquire any of the Notes for cash or property or
otherwise until such Payment Default (and all other Payment Defaults) shall have
been cured or waived in accordance with the terms of the documentation governing
the respective Guarantor Senior Debt or ceased to exist or all Guarantor Senior
Debt with respect to which any Payment Default has occurred and is continuing
shall have been discharged or paid in full in cash or Cash Equivalents.

          (b) During any Payment Blockage Period (as determined in accordance
with Section 10.02(b)), neither any Guarantor nor any other Person on any
Guarantor's behalf shall (i) make any payment of any kind or character with
respect to any Guarantee Obligations or (ii) acquire any of the Notes for cash
or property or otherwise.

          (c) In the event that, notwithstanding the foregoing, any payment
shall be received by the Trustee or any Holder when such payment is prohibited
by the foregoing provisions of this Section 12.02, such payment shall be held in
trust for the benefit of, and shall

                                     -118-
<PAGE>

be paid over or delivered to, the holders of Guarantor Senior Debt (pro rata to
such holders on the basis of the respective amount of Guarantor Senior Debt held
by such holders) or their respective Representatives, as their respective
interests may appear. The Trustee shall be entitled to rely on information
regarding amounts then due and owing on the Guarantor Senior Debt, if any,
received from the holders of Guarantor Senior Debt (or their Representatives)
or, if such information is not received from such holders or their
Representatives, from a Guarantor and only amounts included in the information
provided to the Trustee shall be paid to the holders of Guarantor Senior Debt.

          SECTION 12.03.  Guarantee Obligations Subordinated to Prior Payment of
                          ------------------------------------------------------
All Guarantor Senior Debt on Dissolution, Liquidation or Reorganization of Such
-------------------------------------------------------------------------------
Guarantor.  (a)  Upon any payment or distribution of assets of any Guarantor
---------
of any kind or character, whether in cash, property or securities, to creditors
upon any total or partial liquidation, dissolution, winding-up, reorganization,
assignment for the benefit of creditors or marshaling of assets of such
Guarantor or in a bankruptcy, reorganization, insolvency, receivership or other
similar proceeding relating to such Guarantor or its assets, whether voluntary
or involuntary, all Obligations in respect of Guarantor Senior Debt due or to
become due shall first be paid in full in cash or Cash Equivalents (including
interest after the commencement of any bankruptcy or other like proceeding at
the rate specified in the applicable Guarantor Senior Debt whether or not such
interest is an allowed claim in any such proceeding), before any payment or
distribution of any kind or character is made on account of any Guarantee
Obligations or for the acquisition of any of the Notes for cash or property or
otherwise.  Upon any such dissolution, winding-up, liquidation, reorganization,
receivership or similar proceeding, any payment or distribution of assets of
such Guarantor of any kind or character, whether in cash, property or
securities, to which the Holders or the Trustee would be entitled, except for
the provisions hereof, shall be paid by such Guarantor or by any receiver,
trustee in bankruptcy, liquidating trustee, agent or other Person making such
payment or distribution, or by the Holders or by the Trustee if received by
them, directly to the holders of Guarantor Senior Debt (pro rata to such holders
on the basis of the respective amounts of Guarantor Senior Debt held by such
holders) or their respective Representatives, or to the trustee or trustees
under any indenture pursuant to which any of such Guarantor Senior Debt may have
been issued, as their respective interests may appear, for application to the
payment of Guarantor Senior Debt remaining unpaid until all such Guarantor
Senior Debt has been paid in full in cash or Cash Equivalents after giving
effect to any concurrent payment, distribution or provision therefor to or for
the holders of Guarantor Senior Debt.

          (b) To the extent any payment of Guarantor Senior Debt (whether by or
on behalf of a Guarantor, as proceeds of security or enforcement of any right of
setoff or otherwise) is declared to be fraudulent or preferential, set aside or
required to be paid to any receiver, trustee in bankruptcy, liquidating trustee,
agent or other similar Person under any bankruptcy, insolvency, receivership,
fraudulent conveyance or similar law, then, if such payment is recovered by, or
paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent
or other similar Person, the Guarantor Senior Debt or part thereof originally
intended to be

                                     -119-
<PAGE>

satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred.

          It is further agreed that any diminution (whether pursuant to court
decree or otherwise, including without limitation for any of the reasons
described in the preceding paragraph) of a Guarantor's obligation to make any
distribution or payment pursuant to any Guarantor Senior Debt, except to the
extent such diminution occurs by reason of the repayment (which has not been
disgorged or returned) of such Guarantor Senior Debt in cash or Cash
Equivalents, shall have no force or effect for purposes of the subordination
provisions contained in this Article Twelve, with any turnover of payments as
otherwise calculated pursuant to this Article Twelve to be made as if no such
diminution had occurred.

          (c) In the event that, notwithstanding the foregoing, any payment or
distribution of assets of any Guarantor of any kind or character, whether in
cash, property or securities, shall be received by the Trustee or any Holder
when such payment or distribution is prohibited by this Section 12.03, such
payment or distribution shall be held in trust for the benefit of, and shall be
paid over or delivered to, the holders of Guarantor Senior Debt (pro rata to
such holders on the basis of the respective amount of Guarantor Senior Debt held
by such holders) or their respective Representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Guarantor Senior Debt
may have been issued, as their respective interests may appear, for application
to the payment of Guarantor Senior Debt remaining unpaid until all such
Guarantor Senior Debt has been paid in full in cash or Cash Equivalents, after
giving effect to any concurrent payment, distribution or provision therefor to
or for the holders of such Guarantor Senior Debt.

          SECTION 12.04.  Payments May Be Paid Prior to Dissolution.  Nothing
                          -----------------------------------------
contained in this Article Twelve or elsewhere in this Indenture shall prevent
(i) any Guarantor, except under the conditions described in Sections 12.02 and
12.03, from making payments at any time for the purpose of making payments on
Guarantee Obligations, or from depositing with the Trustee any monies for such
payments, or (ii) in the absence of actual knowledge by the Trustee that a given
payment would be prohibited by Section 12.02 or 12.03, the application by the
Trustee of any monies deposited with it by a Guarantor for the purpose of making
such payments on Guarantee Obligations to the Holders entitled thereto unless at
least one Business Day prior to the date upon which such payment would otherwise
become due and payable the Trustee shall have actually received the written
notice provided for in Section 12.13, in the first sentence of Section 10.02(b)
or in the last sentence of this Section 12.04 (provided that, notwithstanding
the foregoing, the Holders receiving any payments made in contravention of
Sections 12.02 and/or 12.03 (and the respective such payments) shall otherwise
be subject to the provisions of Section 12.02 and Section 12.03).  Each
Guarantor shall give prompt written notice to the Trustee of any dissolution,
winding-up, liquidation or reorganization of such Guarantor, although any delay
or failure to give any such notice shall have no effect on the subordination
provisions contained herein.

                                     -120-
<PAGE>

          SECTION 12.05.  Holders to Be Subrogated to Rights of Holders of
                          ------------------------------------------------
Guarantor Senior Debt.  Subject to the payment in full in cash or Cash
---------------------
Equivalents of all Guarantor Senior Debt, the Holders shall be subrogated to the
rights of the holders of Guarantor Senior Debt of such Guarantor to receive
payments or distributions of cash, property or securities of such Guarantor
applicable to such Guarantor Senior Debt until all amounts owing on or in
respect of the Guarantee Obligations shall be paid in full; and, for the
purposes of such subrogation, no such payments or distributions to the holders
of such Guarantor Senior Debt by or on behalf of such Guarantor, or by or on
behalf of the Holders by virtue of this Article Twelve, which otherwise would
have been made to the Holders shall, as between such Guarantor and the Holders,
be deemed to be a payment by such Guarantor to or on account of such Guarantor
Senior Debt, it being understood that the provisions of this Article Twelve are
and are intended solely for the purpose of defining the relative rights of the
Holders, on the one hand, and the holders of Guarantor Senior Debt, on the other
hand.

          SECTION 12.06.  Guarantee Obligations of the Guarantors Unconditional.
                          -----------------------------------------------------
Nothing contained in this Article Twelve or elsewhere in this Indenture or in
the Guarantees is intended to or shall impair, as among the Guarantors, their
creditors other than the holders of Guarantor Senior Debt, and the Holders, the
obligation of the Guarantors, which is absolute and unconditional, to pay to the
Holders all amounts due and payable under the Guarantees as and when the same
shall become due and payable in accordance with their terms, or is intended to
or shall affect the relative rights of the Holders and creditors of the
Guarantors other than the holders of the Guarantor Senior Debt, nor shall
anything herein or therein prevent any Holder or the Trustee on its behalf from
exercising all remedies otherwise permitted by applicable law upon default under
this Indenture, subject to the rights, if any, under this Article Twelve, of the
holders of Guarantor Senior Debt in respect of cash, property or securities of
the Guarantors received upon the exercise of any such remedy.

          SECTION 12.07.  Reliance on Judicial Order or Certificate of
                          --------------------------------------------
Liquidating Agent.  Whenever a distribution is to be made or a notice given to
-----------------
holders of the Guarantor Senior Debt, the distribution may be made and the
notice given to their Representative.

          Upon any payment or distribution of assets of a Guarantor referred to
in this Article Twelve, the Trustee and the Holders shall be entitled to rely
upon any order or decree made by any court of competent jurisdiction in which
any insolvency, bankruptcy, receivership, dissolution, winding-up, liquidation,
reorganization or similar case or proceeding is pending, or upon a certificate
of the trustee in bankruptcy, liquidating trustee, receiver, assignee for the
benefit of creditors, agent or other person making such payment or distribution,
delivered to the Trustee or the Holders, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders of
the Guarantor Senior Debt and other Indebtedness of such Guarantor, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article Twelve.  Nothing in
this Article Twelve shall apply to the claims of, or payments to, the Trustee in
its capacity as such under or pursuant to Section 7.07 or the Paying Agent,
Transfer

                                     -121-
<PAGE>

Agent or Registrar in their capacity as such under or pursuant to Section 14.08.
The Trustee shall be entitled to rely on the delivery to it of a written notice
by a Person representing himself or itself to be a holder of the Guarantor
Senior Debt (or a trustee on behalf of, or other representative of, such holder)
to establish that such notice has been given by a holder of such Guarantor
Senior Debt or a trustee or representative on behalf of any such holder.

          In the event that the Trustee determines in good faith that any
evidence is required with respect to the right of any Person as a holder of the
Guarantor Senior Debt to participate in any payment or distribution pursuant to
this Article Twelve, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of the Guarantor
Senior Debt held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the
rights of such Person under this Article Twelve, and if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

          SECTION 12.08.  Subordination Rights Not Impaired by Acts or Omissions
                          ------------------------------------------------------
of the Guarantors or Holders of Guarantor Senior Debt.  No right of any present
-----------------------------------------------------
or future holders of any Guarantor Senior Debt to enforce subordination as
provided herein shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of any Guarantor or by any act or failure to
act, in good faith, by any such holder, or by any noncompliance by any Guarantor
with the terms of this Indenture, regardless of any knowledge thereof which any
such holder may have or otherwise be charged with.

          Without in any way limiting the generality of the foregoing paragraph,
the holders of Guarantor Senior Debt may, at any time and from time to time,
without the consent of or notice to the Trustee or the Holders, without
incurring responsibility to the Trustee or the Holders and without impairing or
releasing the subordination provided in this Article Twelve or the obligations
hereunder of the Holders to the holders of Guarantor Senior Debt, do any one or
more of the following:  (i) change the manner, place or terms of payment or
extend the time of payment of, or renew or alter, Guarantor Senior Debt, or
otherwise amend or supplement in any manner Guarantor Senior Debt, or any
instrument evidencing the same or any agreement under which Guarantor Senior
Debt is outstanding; (ii) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Guarantor Senior Debt; (iii)
release any Person liable in any manner for the payment or collection of
Guarantor Senior Debt; and (iv) exercise or refrain from exercising any rights
against the Guarantors and any other Person.

          SECTION 12.09.  Holders Authorize Trustee to Effectuate Subordination
                          -----------------------------------------------------
of Guarantee Obligations.  Each Holder, by its acceptance of the Guarantee
------------------------
Obligations, authorizes and expressly directs the Trustee on its behalf to take
such action as may be necessary or appropriate to effectuate, as between the
holders of Guarantor Senior Debt and the Holders, the subordination provided in
this Article Twelve, and appoints the Trustee its attorney-in-fact

                                     -122-
<PAGE>

for such purposes, including, in the event of any dissolution, winding-up,
liquidation or reorganization of any Guarantor (whether in bankruptcy,
insolvency, receivership, reorganization or similar proceedings or upon an
assignment for the benefit of credits or otherwise) tending towards liquidation
of the business and assets of any Guarantor, the filing of a claim for the
unpaid balance under its Guarantee Obligations and accrued interest in the form
required in those proceedings.

          If the Trustee does not file a proper claim or proof of debt in the
form required in such proceeding prior to 30 days before the expiration of the
time to file such claim or claims, then the holders of the Guarantor Senior Debt
or their Representative shall have the right to file and are or is hereby
authorized to file an appropriate claim for and on behalf of the Holders.
Nothing herein contained shall be deemed to authorize the Trustee or the holders
of Guarantor Senior Debt or their Representative to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Guarantee Obligations or the rights of
any Holder, or to authorize the Trustee or the holders of Guarantor Senior Debt
or their Representative to vote in respect of the claim of any Holder in any
such proceeding.

          SECTION 12.10.  This Article Twelve Not to Prevent Events of Default.
                          ----------------------------------------------------
The failure to make a payment on account of principal of or interest on the
Guarantee Obligations by reason of any provision of this Article Twelve will not
be construed as preventing the occurrence of a Default or an Event of Default.

          SECTION 12.11.  Amendments or Modifications to Article Twelve.
                          ---------------------------------------------
Notwithstanding anything to the contrary contained in this Indenture (but
without limiting the provisions of the first sentence of Section 10.11), no
amendment or modification to any provision of this Article Twelve or the related
definitions used herein (other than to cure any ambiguity, defect, mistake or
inconsistency herein, so long as such amendment or modification does not
adversely affect the rights of the holders of any Guarantor Senior Debt then
outstanding) shall be permitted without the consent of the Holders of at least a
majority in principal amount of the Notes then outstanding voting as a single
class (including consents obtained in connection with a tender offer or exchange
offer for, or purchase of, the Notes) or, if required by Section 9.02, by each
Holder affected.

          SECTION 12.12.  Acceleration of Notes.  If payment of the Notes is
                          ---------------------
accelerated because of an Event of Default, the Company shall promptly notify
holders of Guarantor Senior Debt of the acceleration.

          SECTION 12.13.  Notice to Trustee, Rights of Trustee and Paying Agent.
                          -----------------------------------------------------
Each Guarantor shall give prompt written notice to the Trustee of any fact known
to such Guarantor which would prohibit the making of any payment to or by the
Trustee or any Holder under any Guarantee pursuant to the provisions of this
Article Twelve, although any delay or failure to give any such notice shall have
no effect on the subordination provisions

                                     -123-
<PAGE>

contained herein. Notwithstanding the provisions of this Article Twelve or any
other provision of this Indenture, neither the Trustee nor any Paying Agent
shall be charged with knowledge of the existence of any facts that would
prohibit the making of any payment or distribution by the Trustee or such Paying
Agent, and (in the absence of actual knowledge that the respective payment will
violate the applicable provisions of this Article Twelve or Article Ten, as
applicable) the Trustee and such Paying Agent may continue to make payments on
the Notes, unless the Trustee or such Paying Agent shall have received, at least
one Business Day prior to the date of such payment, written notice of facts that
would cause the payment of any Obligations with respect to the Notes to violate
Article Ten or this Article Twelve (although the receipt of such payment shall
otherwise be subject to the applicable provisions of this Article Twelve or
Article Ten, as applicable). Only the Company, a Guarantor, a holder of Senior
Debt or a holder of Guarantor Senior Debt or a Representative thereof may give
the notice. Nothing in this Article Twelve shall impair the claims of, or
payments to, the Trustee in its capacity as such under or pursuant to Section
7.07 or any Agent in its capacity as such, under or pursuant to Section 14.08.
Nothing in this Section 12.13 is intended to or shall relieve any Holder of
Notes from the obligations imposed under Sections 12.02 and 12.03 with respect
to other distributions received in violation of the provisions hereof.

          The Trustee in its individual or any other capacity may hold the
Guarantor Senior Debt with the same rights it would have if it were not Trustee.
Any Agent may do the same with like rights.

                               ARTICLE THIRTEEN

                                 MISCELLANEOUS

          SECTION 13.01.  Trust Indenture Act of 1939.  Prior to the
                          ---------------------------
effectiveness of the Registration Statement, this Indenture shall incorporate
and be governed by the provisions of the TIA that are required to be part of and
to govern indentures qualified under the TIA.  After the effectiveness of the
Registration Statement, this Indenture shall be subject to the provisions of the
TIA that are required to be a part of this Indenture and shall, to the extent
applicable, be governed by such provisions.

          SECTION 13.02.  Notices.  Any notice or communication shall be
                          -------
sufficiently given if in writing and delivered in person or mailed by first
class mail addressed as follows:

                                     -124-
<PAGE>

          if to the Company or the Guarantors:

               The Manitowoc Company, Inc.
               500 South 16th Street
               Manitowoc, Wisconsin 54220
               Telecopier No.: (920) 683-8123
               Attention: Maurice D. Jones

          if to the Trustee, Paying Agent or Registrar:

               The Bank of New York
               Corporate Trust Department
               101 Barclay Street, 21W
               New York, New York 10286
               Telecopier No.: (212) 815-4803
               Attention: Corporate Trust Trustee Administration

          The Company or the Trustee by notice to the other (and to each
Representative for Designated Senior Debt known to it to be then outstanding)
may designate additional or different addresses for subsequent notices or
communications.

          Any notice or communication mailed to a Holder shall be mailed to it
at such Holder's address as it appears on the Register by first class mail and
shall be sufficiently given to it if so mailed within the time prescribed.
Copies of any such communication or notice to a Holder shall also be mailed to
the Trustee and each Agent at the same time.

          All notices shall be deemed to have been given upon (1) the mailing by
first class mail, postage prepaid, of such notices to Holders of the Notes at
their registered addresses as recorded in the Register; and (2) so long as the
Notes are listed on the Luxembourg Stock Exchange and it is required by the
rules of the Luxembourg Stock Exchange, the Company shall make publication of
such notice to the Holders of the Notes in a leading newspaper having general
circulation in Luxembourg (which is expected to be the Luxemburger Wort) or, if
such publication is not practicable, in one other leading daily newspaper with
general circulation in Europe, such newspaper being published on each business
day in morning editions, whether or not it shall be published in Saturday,
Sunday or holiday editions.  For so long as the Notes are listed on the
Luxembourg Stock Exchange, a copy of all notices shall be provided by the
Company to the Luxembourg Stock Exchange.

          Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders.  Except for a
notice to the Trustee, which is deemed given only when received, and except as
otherwise provided in this Indenture, if a notice or communication is mailed in
the manner provided in this Section 13.02, it is duly given, whether or not the
addressee receives it.

                                     -125-
<PAGE>

          Where this Indenture provides for notice in any manner, such notice
may be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice.  Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

          In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

          SECTION 13.03.  Certificate and Opinion as to Conditions Precedent.
                          --------------------------------------------------
Upon any request or application by the Company to the Trustee to take any action
under this Indenture, the Company shall furnish to the Trustee:

          (i)   an Officers' Certificate, upon which the Trustee may
     conclusively rely, stating that, in the opinion of the signers, all
     conditions precedent, if any, provided for in this Indenture relating to
     the proposed action have been complied with; and

          (ii)  an Opinion of Counsel, upon which the Trustee may conclusively
     rely, in form and substance satisfactory to the Trustee stating that, in
     the opinion of such counsel, all such conditions precedent have been
     complied with; provided, however, that, with respect to matters of fact, an
     Opinion of Counsel may rely on an Officers' Certificate or certificates of
     public officials.

          SECTION 13.04.  Statements Required in Certificate.  Each Officers'
                          ----------------------------------
Certificate with respect to compliance with a condition or covenant provided for
in this Indenture shall include:

          (i)   a statement that each person signing such certificate has read
     such covenant or condition and the definitions herein relating thereto;

          (ii)  a brief statement as to the nature and scope of the examination
     or investigation upon which the statements contained in such certificate
     are based;

          (iii) a statement that, in the opinion of each such person, he has
     made such examination or investigation as is necessary to enable him to
     express an informed opinion as to whether or not such covenant or condition
     has been complied with; and

          (iv)  a statement as to whether or not, in the opinion of each such
     person, such condition or covenant has been complied with.

                                     -126-
<PAGE>

          SECTION 13.05.  Rules by Trustee, Paying Agent or Registrar.  The
                          -------------------------------------------
Trustee may make reasonable rules for action by or at a meeting of Holders.  The
Paying Agent or Registrar may make reasonable rules for its functions.

          SECTION 13.06.  Payment Date Other Than a Business Day.  If an
                          --------------------------------------
Interest Payment Date, Redemption Date, Stated Maturity or date of maturity or
repurchase of any Note or any other payment date shall not be a Business Day,
then payment of principal of, premium, if any, or interest on such Note, as the
case may be, need not be made on such date, but may be made on the next
succeeding Business Day with the same force and effect as if made on the
Interest Payment Date or Redemption Date, or at the Stated Maturity or date of
maturity or repurchase of such Note; provided that no interest shall accrue for
the period from and after such Interest Payment Date, Redemption Date, Stated
Maturity or date of maturity or repurchase, as the case may be.

          SECTION 13.07.  Governing Law.  The laws of the State of New York
                          -------------
shall govern this Indenture, the Notes and the Guarantees.  The Trustee, the
Company and the Guarantors agree to submit to the jurisdiction of any federal or
state court situated in the State of New York, the City of New York, the Borough
of Manhattan in any action or proceeding arising out of or relating to this
Indenture, the Notes and the Guarantees.  Each of the Company and each Guarantor
hereby irrevocably submits to the non-exclusive jurisdiction of each such court
for the purpose of any such action or proceeding.  Each of the Company and each
Guarantor irrevocably waives, to the fullest extent it may effectively do so,
any objection to the laying of venue of any such action or proceeding in any
such court and the defense of inconvenient forum to the maintenance of any such
action or proceeding in any such court.

          SECTION 13.08.  No Adverse Interpretation of Other Agreements.  This
                          ---------------------------------------------
Indenture may not be used to interpret another indenture, loan or debt agreement
of the Company.  Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

          SECTION 13.09.  No Recourse Against Others.  No recourse for the
                          --------------------------
payment of the principal of, premium, if any, or interest on any of the Notes,
or for any claim based thereon or otherwise in respect thereof, and no recourse
under or upon any obligation, covenant or agreement of the Company or the
Guarantors contained in this Indenture or in any of the Notes, or because of the
creation of any Indebtedness represented thereby, shall be had against any
incorporator or against any past, present or future partner, shareholder, other
equityholder, officer, director, employee, management board member, supervisory
board member or controlling person, as such, of the Company or the Guarantors or
of any successor Person, either directly or through the Company, the Guarantors
or any successor Person, whether by virtue of any constitution, statute or rule
of law, or by the enforcement of any assessment or penalty or otherwise; it
being expressly understood that all such liability is hereby expressly waived
and released as a condition of, and as a consideration for, the execution of
this Indenture and the issue of the Notes.

                                     -127-
<PAGE>

          SECTION 13.10.  Successors.  All agreements of the Company and the
                          ----------
Guarantors in this Indenture and the Notes shall bind their respective
successors.  All agreements of the Trustee of this Indenture shall bind its
successor.

          SECTION 13.11.  Duplicate Originals.  The parties may sign any
                          -------------------
number of copies of this Indenture.  Each signed copy shall be an original, but
all of them together represent the same agreement.

          SECTION 13.12.  Separability.  In case any provision in this
                          ------------
Indenture, in the Guarantees or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

          SECTION 13.13.  Table of Contents, Headings, Etc.  The Table of
                          --------------------------------
Contents, Cross-Reference Table and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part hereof and shall in no way modify or restrict any of the
terms and provisions hereof.

          SECTION 13.14.  Judgment Currency.  The Company and the Guarantors
                          -----------------
agree, jointly and severally, to indemnify the Holders and each person, if any,
who controls any Holder within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act against any loss incurred, as incurred, as a
result of any judgment or award in connection with this Indenture being
expressed in a currency (the "Judgment Currency") other than Euros and as a
                              -----------------
result of any variation as between (i) the spot rate of exchange in London at
which the Judgment Currency could have been converted into Euros as of the date
such judgment or award is paid and (ii) the spot rate of exchange at which the
indemnified party converts such Judgment Currency.  The foregoing indemnity
shall constitute a separate and independent obligation of the Company and the
Guarantors and shall continue in full force and effect notwithstanding any such
judgment or order as aforesaid.  The term "spot rate of exchange" shall include
any premiums and costs of exchange payable in connection with the purchase of,
or conversion into, the relevant currency.

          SECTION 13.15.  Waiver of Jury Trial.  Each of the Company, the
                          --------------------
Guarantors, Trustee, Paying Agent, and Registrar hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by
jury in any legal proceeding arising out of or relating to this Indenture, the
Notes, the Guarantees or the transactions contemplated hereby.

          SECTION 13.16.  Unclaimed Money; Prescription.  If money deposited
                          -----------------------------
with the Trustee or any Paying Agent for the payment of principal, premium (if
any), interest or Additional Interest (if any) remains unclaimed for two years,
the Trustee and such Paying Agent shall, upon written request of the Company,
pay such money back to the Company.  Following such repayment to the Company,
Holders of the Notes entitled to such payment must look to the Company for such
payment unless applicable abandoned property law desig-

                                     -128-
<PAGE>

nates another Person and all liability of the Trustee and Paying Agent shall
cease. Other than as set forth in this paragraph, this Indenture does not
provide for any prescription period for the payment of principal, premium (if
any), interest and Additional Interest (if any) on the Notes.

                               ARTICLE FOURTEEN

                  PAYING AGENT, TRANSFER AGENT AND REGISTRAR

          SECTION 14.01.  Duties of the Paying Agent, Transfer Agent and
                          ----------------------------------------------
Registrar.  Each of the Paying Agent, Transfer Agent and the Registrar shall be
---------
obliged to perform such duties, and only such duties, as are herein specifically
set forth, and no implied duties or obligations shall be read into this
Indenture against it. No provision of this Indenture shall require the Paying
Agent, the Transfer Agent or the Registrar to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties,
or in the exercise of its rights and powers, hereunder.

          SECTION 14.02.  Agent of the Company.  In acting hereunder and in
                          --------------------
connection with the Securities, the Paying Agent, the Transfer Agent and the
Registrar shall act solely as agents of the Company and will not thereby assume
any obligations towards, or relationship of agency or trust for, any of the
Holders.

          SECTION 14.03.  Certain Rights of Paying Agent, Transfer Agent and
                          --------------------------------------------------
Registrar.  (a)  Each of the Paying Agent, the Transfer Agent and the Registrar
---------
may consult with legal or other professional advisers satisfactory to it, and
the opinion of such advisers shall be full and complete protection in respect of
any action taken, omitted or suffer hereunder in good faith and in accordance
with the opinion of such advisers.

          (b)  Each of the Paying Agent, the Transfer Agent and the Registrar
shall be protected and shall incur no liability for or in respect of any action
taken, omitted or suffered in reliance upon any instruction, request or order
from the Company or the Trustee, or any Note, form or transfer, resolution,
direction, consent, certificate, affidavit, statement, telex, facsimile
transmission or other paper or document believed by it in good faith to be
genuine and to have been delivered, signed or sent by the proper party or
parties.

          (c)  Except as may be required by law, each of the Paying Agent, the
Transfer Agent and the Registrar shall (whether or not the relevant Note is
overdue and regardless of any notice of ownership, trust or any interest, or
writing on, or the loss or theft of, the certificate issued in respect of such
Note) be entitled to treat the registered owner of any Note as the absolute
owner for all purposes.

                                     -129-
<PAGE>

          (d)  Each of the Paying Agent, the Transfer Agent and the Registrar
shall not be liable for any action taken, suffered or omitted by it in good
faith and believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Indenture.

          (e)  None of the Paying Agent, the Transfer Agent or the Registrar
shall have any duty or responsibility in case of any default by the Company or
any Guarantor in the performance of its obligations hereunder or under the Notes
or any Guarantee (including, without limitation, the generality of the
foregoing, any duty or responsibility to accelerate all or any of the Notes or
to initiate or to attempt to initiate any proceedings at law or otherwise or to
make any demand for the payment thereof upon the Company or any Guarantor).

          SECTION 14.04.  May Hold Notes.  Each of the Paying Agent, the
                          --------------
Transfer Agent and the Registrar and each's respective officers, directors and
employees, may become the owner of, or acquire any interest in, any Notes with
the same rights that it or they would have if it were not appointed hereunder,
and may engage or be interested in any financial or other transaction with the
Company and may act on, or as depositary, trustee or agent for, any committee or
body of Holders of Securities or other obligations of the Company as freely as
if it were not appointed hereunder.

          SECTION 14.05.  Appointment of Agents.  Each of the Paying Agent, the
                          ---------------------
Transfer Agent and the Registrar may perform the services required to be
rendered by it hereunder either directly or through attorneys-in-fact or agents
not regularly in its employ and the Paying Agent, the Transfer Agent or the
Registrar, as the case may be, shall not be responsible or liable for any
willful misconduct or negligence on the part of any such attorney or agent
appointed by it with due care hereunder.

          SECTION 14.06.  Money Held.  The Paying Agent shall be entitled to
                          ----------
deal with moneys paid to it hereunder in the same manner as other moneys paid to
it as a banker by its customers except that the Paying Agent shall not be liable
to any Person for interest on, or have any responsibility to invest, any sums
held by it under this Indenture.

          SECTION 14.07.  Paying Agent, Transfer Agent and Registrar Not
                          ----------------------------------------------
Responsible for Notes.  The recitals contained herein and in the Notes shall be
---------------------
taken as the statements of the Company and the Paying Agent, the Transfer Agent
and the Registrar assume no responsibility for the correctness of the same. None
of the Paying Agent, the Transfer Agent or the Registrar makes any
representation as to the validity or sufficiency of this Indenture, the Notes,
any Guarantee or any offering material. The Paying Agent, the Transfer Agent and
the Registrar shall not be accountable for the use or application by the Company
of the proceeds of any Notes.

          SECTION 14.08.  Compensation and Indemnification.  (a)  The Company
                          --------------------------------
shall pay to each of the Paying Agent, the Transfer Agent and the Registrar from
time to time such compensation as may be agreed upon in writing by the Company
and each such agent for all

                                     -130-
<PAGE>

services rendered by it hereunder and shall reimburse each such agent upon its
request for all reasonable expenses, disbursements and advances incurred or made
by it in accordance with or in connection with this Indenture (including the
reasonable compensation and expenses of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligence or
willful misconduct.

          (b) The Company shall indemnify each of the Paying Agent, the Transfer
Agent and the Registrar, and hold each harmless, against any loss, liability or
expense (including the reasonable costs and expenses of its counsel and
defending against any claim of liability) arising out of or in connection with
its acting as Paying Agent, the Transfer Agent and the Registrar, as the case
may be, hereunder, provided, however, that none of the Paying Agent, the
Transfer Agent or the Registrar shall be indemnified for or held harmless
against any such loss, liability or expense resulting from its negligence,
willful misconduct or bad faith.  The provision of this subsection (b) of
Section 14.08 shall remain in full force and effect notwithstanding the
resignation or removal of any of the Paying Agent, the Transfer Agent and the
Registrar, the payment of the Notes or the termination of this Indenture.

                            [Signature Pages Follow]

                                     -131-
<PAGE>

                                  SIGNATURES

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, all as of the date first written above.

                                      THE MANITOWOC COMPANY, INC.,
                                      as the Company

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  General Counsel and Secretary

                                      MANITOWOC CRANE COMPANIES, INC.

                                      By: /s/ James Walden
                                          -------------------------------------
                                          Name:   James Walden
                                          Title:  President

                                      MANITOWOC MARINE GROUP, LLC

                                      By: The Manitowoc Company, Inc.,
                                          as sole member and manager

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  General Counsel and Secretary

                                      MANITOWOC FOODSERVICE COMPANIES, INC.

                                      By: /s/ James Walden
                                          -------------------------------------
                                          Name:   James Walden
                                          Title:  President

                                      S-1
<PAGE>

                                      MANITOWOC WESTERN COMPANY, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MANITOWOC BOOM TRUCKS, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MANITOWOC RE-MANUFACTURING, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MANITOWOC CRANES, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      WEST-MANITOWOC, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      FEMCO MACHINE COMPANY, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      S-2
<PAGE>

                                      MANITOWOC CP, INC.

                                      By: /s/ James Walden
                                          -------------------------------------
                                          Name:   James Walden
                                          Title:  President

                                      KMT REFRIGERATION, INC.
                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      HARFORD DURACOOL, LLC

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      DIVERSIFIED REFRIGERATION, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      SERVEND INTERNATIONAL, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      SERVEND SALES CORP.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      S-3
<PAGE>

                                      MANITOWOC BEVERAGE SYSTEMS, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MANITOWOC ICE, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MANITOWOC EQUIPMENT WORKS, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MANITOWOC FP, INC.

                                      By: /s/ James Walden
                                          -------------------------------------
                                           Name:   James Walden
                                           Title:  President

                                      KMT SALES CORP.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MULTIPLEX COMPANY, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      S-4
<PAGE>

                                      NORTH CENTRAL CRANE & EXCAVATOR
                                      SALES CORP.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      ENVIRONMENTAL REHAB, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MANITOWOC CRANE & SHOVEL SALES CORP.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MANITOWOC MEC, INC.

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      MARINETTE MARINE CORPORATION

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      POTAIN CORPORATION

                                      S-5
<PAGE>

                                      By: /s/ Maurice D. Jones
                                          -------------------------------------
                                          Name:   Maurice D. Jones
                                          Title:  Secretary

                                      S-6
<PAGE>

                                     THE BANK OF NEW YORK, as Trustee,
                                     Registrar, Transfer Agent and Paying Agent

                                     By: /s/ Luis Perez
                                         --------------------------------------
                                         Name:   Luis Perez
                                         Title:  Assistant Vice President

                                      S-7
<PAGE>

                                                                       EXHIBIT A
                                                                       ---------

                                [FACE OF NOTE]

       [Insert Private Placement Legend and Global Notes if Applicable]

                          THE MANITOWOC COMPANY, INC.

                   10 3/8% Senior Subordinated Note Due 2011

                                                              . 175,000,000

ISIN No. [ ]
Common Code [ ]

No. [ ]

     THE MANITOWOC COMPANY, INC., a Wisconsin corporation (the "Company", which
                                                                -------
term includes any successor under the Indenture hereinafter referred to), for
value received, promise to pay to _______________, or its registered assigns,
the principal sum of . 175,000,000 on May 15, 2011.

     Interest Payment Dates: May 15 and November 15 commencing November 15,
2001.

     Regular Record Dates:  May 1 and November 1 .

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

                                      A-1
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Note to be signed manually
by its duly authorized signatories.

                                      THE MANITOWOC COMPANY, INC.

                                      By: _____________________________________
                                          Name:
                                          Title:

                   (Trustee's Certificate of Authentication)

     This is one of the 10 3/8% Senior Subordinated Notes due 2011
described in the within-mentioned Indenture.

Date:     [       ], 2001

                                      THE BANK OF NEW YORK, as Trustee

                                      By:______________________________________
                                         Name:
                                         Title:

                                      A-2
<PAGE>

                            [REVERSE SIDE OF NOTE]

                          THE MANITOWOC COMPANY, INC.

                   10 3/8% Senior Subordinated Note due 2011

1.   Principal and Interest.
     ----------------------

          The Company shall pay the principal of this Note on May 15, 2011.

          The Company promises to pay interest on the principal amount of this
Note on each Interest Payment Date, as set forth below, at the rate per annum
shown above.

          Interest will be paid semi-annually in arrears on each Interest
Payment Date, commencing November 15, 2001. Interest on this Note will accrue
from the latest date to which interest has been paid on the Notes or, if no
interest has been paid, the Issue Date; provided, however, that, if the Exchange
Offer is consummated and Unrestricted Notes are issued in exchange for this Note
in connection therewith, any accrued and unpaid interest on this Note shall be
deemed to have accrued with respect to, and shall be paid with respect to, such
Unrestricted Notes. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

          The Company shall pay interest on overdue principal and premium, if
any, and interest on overdue installments of interest, to the extent lawful, at
a rate per annum that is the then applicable interest rate borne by the Notes.

2.   Method of Payment.
     -----------------

          The Company shall pay interest on the principal amount of the Notes on
each May 15 and November 15 to the persons who are Holders of the relevant Notes
on the May 1 or November 1, as the case may be, immediately preceding such
Interest Payment Date (as reflected in the Register at the close of business on
the Regular Record Date), in each case, even if the Note is canceled on
registration of transfer or registration of exchange after such record date. The
Company shall make payments of principal on the Notes to Holders that surrender
Notes to the Paying Agent.

          If a Holder has given wire transfer instructions to the Paying Agent
at least 15 days prior to any payment, the Company shall make all principal,
premium and interest and Additional Interest, if any, payments on the Notes
owned by such Holder in accordance with those instructions. All other payments
on the Notes shall be made by check mailed to the Holders at their address set
forth in the register of Holders, or in the case of the final payment of
principal and interest, if any, on any Note, upon presentation and surrender of
such Note at the office of the Paying Agent. All payments on the Notes will be
made in Euros.

                                      A-3
<PAGE>

3.   Paying Agent and Registrar.
     --------------------------

          Initially, the Company has appointed the corporate trust office of the
Trustee in The City of New York located at the address set forth in Section
13.02 of the Indenture as Paying Agent in The City of New York. So long as the
Notes are listed on the Luxembourg Stock Exchange and the rules of such stock
exchange so require, the Company shall maintain a Paying Agent and Transfer
Agent in Luxembourg.

4.   Indenture; Limitations.
     ----------------------

          The Company issued the Notes under an Indenture dated as of May 9,
2001 (the "Indenture"), among the Company, the Guarantors named therein and The
           ---------
Bank of New York, as trustee (the "Trustee").  Capitalized terms herein are used
                                   -------
as defined in the Indenture unless otherwise indicated.  This Note is one of a
duly authorized issue of Notes of the Company designated as its 10 3/8% Senior
Subordinated Notes due 2011 (the "Initial Notes").  The Initial Notes are
                                  -------------
initially being issued in the aggregate principal amount of . 175,000,000.  The
Company shall be entitled to issue Additional Notes pursuant to Section 2.14 of
the Indenture (the "Additional Notes").  The Notes include the Unrestricted
                    ----------------
Notes (as defined below) issued in exchange for the Initial Notes pursuant to
the Registration Rights Agreement. The Initial Notes, the Additional Notes and
the Unrestricted Notes are treated as a single class of securities under the
Indenture. The terms of the Notes include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act. The
Notes are subject to all such terms, and Holders are referred to the Indenture
and the Trust Indenture Act for a statement of all such terms. To the extent
permitted by applicable law, in the event of any inconsistency between the terms
of this Note and the terms of the Indenture, the terms of the Indenture shall
control. This is one of the Notes referred to in the Indenture. The Notes are
unsecured and unsubordinated obligations of the Company.

5.  Redemption.
    ----------

          Optional Redemption. Except as described below, the Notes are not
redeemable before May 15, 2006. Thereafter, the Company may redeem the Notes at
its option, in whole or in part, upon not less than 30 nor more than 60 days'
notice to the Holders, at the following redemption prices (expressed as
percentages of the principal amount thereof) if redeemed during the twelve-month
period commencing on May 15 of the years set forth below:

<TABLE>
<CAPTION>
     Year                                                                     Percentage
     ----                                                                     ----------
     <S>                                                                      <C>
     2006................................................................      105.188%
     2007................................................................      103.458%
     2008................................................................      101.729%
     2009 and thereafter.................................................      100.000%
</TABLE>

                                      A-4
<PAGE>

          In addition, the Company must pay accrued and unpaid interest on the
Notes redeemed.

          Optional Redemption upon Public Equity Offerings. At any time, or from
time to time, on or prior to May 15, 2004, the Company may, at its option, use
the net cash proceeds of one or more Public Equity Offerings (as defined below)
to redeem up to 35% of the principal amount of the Notes (including any
Additional Notes) outstanding under the Indenture at a redemption price of
110.375% of the principal amount thereof plus accrued and unpaid interest
thereon, if any, to the date of redemption; provided that:

          (1)  at least 65% of the principal amount of Notes (including any
     Additional Notes) outstanding under the Indenture remains outstanding
     immediately after any such redemption; and

          (2)  the Company makes such redemption not more than 90 days after the
     consummation of any such Public Equity Offering.

          "Public Equity Offering" means an underwritten public offering of
           ----------------------
Qualified Capital Stock of the Company pursuant to a registration statement
filed with the Commission in accordance with the Securities Act.

          In the event that the Company chooses to redeem less than all of the
Notes, selection of the Notes for redemption will be made by the Trustee either:

          (1)  in compliance with the requirements of the principal national
     securities exchange, if any, on which the Notes are listed; or,

          (2)  on a pro rata basis, by lot or by such method as the Trustee
     shall deem fair and appropriate.

          No Notes of a principal amount of . 1,000 or less shall be redeemed in
part. If a partial redemption is made with the proceeds of a Public Equity
Offering, the Trustee will select the Notes only on a pro rata basis or on as
nearly a pro rata basis as is practicable (subject to Euroclear and Clearstream
Luxembourg procedures, if any).

          Notice of any optional redemption will be mailed at least 30 days but
not more than 60 days before the redemption date to each Holder of Notes to be
redeemed at its last address as it appears in the Register.  So long as the
Notes are listed on the Luxembourg Stock Exchange and the rules of such exchange
so require, notice of redemption shall be published in a daily newspaper of
general circulation in Luxembourg (which is expected to be the Luxemberger
Wort).  On and after the Redemption Date, interest ceases to accrue on Notes or
portions of Notes called for redemption so long as the Company has deposited
with the Paying Agent funds in satisfaction of the Redemption Price pursuant to
the terms of the Indenture, unless the Company defaults in the payment of the
Redemption Price.  The Trustee may select

                                      A-5
<PAGE>

for redemption portions of the principal amount of the Notes that have
denominations equal to . 1,000 integral multiples thereof in accordance with
Section 3.03 of the Indenture.

6.  Redemption for Changes in Withholding Taxes.
    -------------------------------------------

          The Company may redeem the Notes, in whole, but not in part, at a
price equal to 100% of the principal amount thereof, plus accrued and unpaid
interest and Additional Interest, if any, in the event of certain changes in the
applicable tax laws or treaties.

7.  Repurchase upon Change in Control.
    ---------------------------------

          Upon the occurrence of a Change of Control, each Holder shall have the
right, subject to the terms and conditions set forth in the Indenture, to
require the Company to repurchase its Notes in cash pursuant to the offer
described in the Indenture at a purchase price equal to 101% of the principal
amount thereof, plus accrued and unpaid interest, and Additional Interest, if
any, to the date of purchase (the "Change of Control Payment").
                                   -------------------------

          A notice of such Change of Control will be mailed within 30 days after
any Change of Control occurs to each Holder at its last address as it appears in
the Register and to the Trustee.  The notice to the Holders shall contain all
instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Change of Control Offer.  Such notice shall state:

          (1)  that the Change of Control Offer is being made pursuant to
     Section 4.11 of the Indenture and that all Notes tendered will be accepted
     for payment;

          (2)  the purchase price (including the amount of accrued interest) and
     the purchase date (which shall be no earlier than the Change of Control
     Payment Date);

          (3)  that any Note not tendered will continue to accrue interest if
     interest is then accruing;

          (4)  that, unless the Company defaults in making payment therefor, any
     Note accepted for payment pursuant to the Change of Control Offer shall
     cease to accrue interest after the Change of Control Payment Date;

          (5)  that Holders electing to have a Note purchased pursuant to a
     Change of Control Offer will be required to surrender the Note, with the
     form entitled "Option of Holder to Elect Purchase" on the reverse of the
     Note completed, to the Paying Agent at the address specified in the notice
     prior to the close of business on the third business day prior to the
     Change of Control Payment Date;

          (6)  that Holders will be entitled to withdraw their election if the
     Paying Agent receives, not later than 5:00 p.m., New York City time, on the
     second Business

                                      A-6
<PAGE>

     Day preceding the Change of Control Payment Date, a telegram, telex,
     facsimile transmission or letter setting forth the name of the Holder, the
     principal amount of the Notes the Holder delivered for purchase and a
     statement that such Holder is withdrawing his election to have such Note
     purchased; and

          (7)  the circumstances and relevant facts regarding such Change of
     Control.

8.   Subordination.
     -------------

          The Notes are subordinated to Senior Debt of the Company, as defined
in the Indenture.  To the extent provided in the Indenture, Senior Debt of the
Company must be paid before the Notes may be paid.  The Company agrees, and each
Holder by accepting a Note agrees, to the subordination provisions contained in
the Indenture and authorizes the Trustee to give it effect and appoints the
Trustee as attorney-in-fact for such purpose.

9.   Denominations; Transfer; Exchange.
     ---------------------------------

          The Notes are in registered form without coupons in denominations of .
1,000 principal amount and multiples of . 1,000 in excess thereof. A Holder may
register the transfer or exchange of Notes in accordance with the Indenture. The
Registrar may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and to pay any taxes and fees required by
law or permitted by the Indenture.

10.  Persons Deemed Owners.
     ---------------------

          A Holder shall be treated as the owner of a Note for all purposes.

11.  Unclaimed Money.
     ---------------

          If money deposited with the Trustee or any Paying Agent for the
payment of principal, premium (if any), interest or Additional Interest (if any)
remains unclaimed for two years, the Trustee and each such Paying Agent shall
pay such money back to the Company upon written request of the Company.
Following such repayment to the Company, Holders of the Notes entitled to such
payment must look to the Company for such payment unless applicable abandoned
property law designates another Person and all liability of the Trustee and such
Paying Agent shall cease. Other than as set forth in this paragraph, the
Indenture does not provide for any prescription period for the payment of
principal, premium (if any), interest and Additional Interest (if any) on the
Notes.

12.  Discharge Prior to Redemption or Maturity.
     -----------------------------------------

          If the Company deposits with the Trustee money or Government
Obligations sufficient to pay the then outstanding principal of and accrued
interest on the Notes to re-

                                      A-7
<PAGE>

demption or maturity, the Company and the Guarantors will be discharged from the
Indenture, the Notes and the Guarantees except in certain circumstances set
forth in the Indenture.

13.  Legal Defeasance and Covenant Defeasance.
     ----------------------------------------

          The Company and each Guarantor may be discharged from their
obligations under the Indenture, the Notes and the Guarantees except for certain
provisions thereof, and the Company may be discharged from its obligations to
comply with certain covenants contained therein, in each case upon satisfaction
of certain conditions specified in the Indenture.

14.  Amendment; Supplement; Waiver.
     -----------------------------

          Subject to certain exceptions, the Indenture, the Notes and the
Guarantees may be amended or supplemented with the consent of the Holders of at
least a majority in principal amount of the Notes then outstanding, and any
existing default or compliance with any provision may be waived with the consent
of the Holders of at least a majority in principal amount of the Notes then
outstanding. Without notice to or the consent of any Holder, the parties thereto
may amend or supplement the Indenture, the Notes and the Guarantees to, among
other things, cure any ambiguity, defect or inconsistency. Certain modifications
will require the consent of each Holder affected thereby.

15.  Restrictive Covenants.
     ---------------------

          The Indenture imposes certain limitations on the ability of the
Company and its Restricted Subsidiaries, among other things, to incur additional
Indebtedness, make Restricted Payments, use the proceeds from Asset Sales,
engage in transactions with Affiliates and, in the case of the Company and the
Guarantors, to merge, consolidate or transfer substantially all of its assets.

16.  Successor Persons.
     -----------------

          When a successor person or other entity assumes all the obligations of
its predecessor under the Notes and the Indenture, the predecessor person will
be released from those obligations.

17.  Defaults and Remedies.
     ---------------------

          If an Event of Default (other than an Event of Default specified in
clause (a)(6) or (a)(7) of Section 6.01 of the Indenture that occurs with
respect to the Company) occurs and is continuing, the Trustee by notice to the
Company, or the Holders of at least 25% in aggregate principal amount of the
Notes then outstanding under the Indenture by notice to the Company and the
Trustee, may declare the principal of, premium, if any, and accrued interest, if
any, on all Notes to be due and payable. If an Event of Default specified in
clause (a)(6) or (a)(7) of Section 6.01 occurs and is continuing with respect to
the Company, such amount

                                      A-8
<PAGE>

with respect to all the Notes shall, ipso facto, become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holders. Holders may not enforce the Indenture, the Notes or the Guarantees
except as provided in the Indenture. The Trustee may require indemnity
satisfactory to it before it enforces the Indenture, the Notes or the
Guarantees. Subject to certain limitations, Holders of at least a majority in
principal amount of the Notes then outstanding may direct the Trustee in its
exercise of any trust or power.

18.  Trustee Dealings with Company.
     -----------------------------

          Subject to the Trust Indenture Act, the Trustee under the Indenture,
in its individual or any other capacity, may make loans to, accept deposits from
and perform services for the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates as if it were not the Trustee.

19.  No Recourse Against Others.
     --------------------------

          No recourse for the payment of the principal of, premium, if any, or
interest on any of the Notes or the Guarantees, or for any claim based thereon
or otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of the Company contained in the Indenture, in any of the
Notes or the Guarantees, or because of the creation of any Indebtedness
represented thereby, shall be had against any incorporator or against any past,
present or future partner, shareholder, other equityholder, officer, director,
employee, management board member, supervisory board member or controlling
person, as such, of the Company, the Guarantors or of any successor Person,
either directly or through the Company or any successor Person, whether by
virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise.

20.  Authentication.
     --------------

          This Note shall not be valid until the Trustee or authenticating agent
signs the certificate of authentication on the other side of this Note.

21.  Abbreviations.
     -------------

          Customary abbreviations may be used in the name of a Holder or an
assignee, such as:  TEN COM (= tenants in common), TEN ENT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors
Act).

          The Company shall furnish to any Holder upon written request and
without charge a copy of the Indenture.  Requests may be made to The Manitowoc
Company, Inc., 500 South 16th Street, Manitowoc, Wisconsin 54220.

                                      A-9
<PAGE>

22.  Registration Rights.
     -------------------

          With respect to Restricted Notes, pursuant to the Registration Rights
Agreement, the Company shall be obligated upon the occurrence of certain events
to consummate an exchange offer pursuant to which the Holder of this Note shall
have the right to exchange this Note for a 10 3/8% Senior Subordinated Note due
2011 of the Company (an "Unrestricted Note") which has been registered under the
                         -----------------
Securities Act, in like principal amount and having terms identical in all
material respects to the Initial Notes.  The Holders shall be entitled to
receive certain Additional Interest in the event such exchange offer is not
consummated and upon certain other conditions, all pursuant to and in accordance
with the terms of the Registration Rights Agreement.

23.  Choice of Law.
     -------------

          The laws of the State of New York shall govern the Indenture and this
Note.

                                     A-10
<PAGE>

                                ASSIGNMENT FORM

I or we assign and transfer this Note to

________________________________________________________________________________

________________________________________________________________________________
(Print or type name, address and zip code of assignee or transferee)

________________________________________________________________________________
(Insert Company Registration, Social Security or other identifying number of
assignee or transferee)

and irrevocably appoint_________________________________________________________
agent to transfer this Security on the books of the Company.  The agent may
substitute another to act for him.

Dated:___________________  Signed:______________________________________________
                                           (Sign exactly as name appears on
                                           the other side of this Note)

Signature Guarantee:____________________________________________________________
                       Participant in a recognized Signature Guarantee Medallion
                       Program (or other signature guarantor program reasonably
                       acceptable to the Trustee)

                                     A-11
<PAGE>

                      OPTION OF HOLDER TO ELECT PURCHASE

          If you wish to have this Note purchased by the Company pursuant to
Section 4.10 or Section 4.11 of the Indenture, check the box:  [_]

          If you wish to have a portion of this Note purchased by the Company
pursuant to Section 4.10 or Section 4.11 of the Indenture, state the amount (in
principal amount):  . _________.

Date:  _________________

Your Signature:

________________________________________________________________________________
      (Sign exactly as your name appears on the other side of this Note)

Signature Guarantee:____________________________

                                     A-12
<PAGE>

                                   SCHEDULE A
                          SCHEDULE OF PRINCIPAL AMOUNT
                     OF INDEBTEDNESS EVIDENCED BY THIS NOTE

          The initial principal amount of indebtedness evidenced by this Note
shall be . _____.  The following decreases/increases in the principal amount of
indebtedness evidenced by this Note have been made:

<TABLE>
<CAPTION>
                                                             Total Principal
                                                             Amount of
                     Decrease in         Increase in         Indebtedness
                     Principal Amount    Principal Amount    Evidenced            Notation Made
Date of              of Indebtedness     of Indebtedness     Following Such       by or on Behalf of
Decrease/Increase    Evidenced           Evidenced           Decrease/Increase    Trustee
------------------   -----------------   ------------------  -------------------  -------------------
<S>                  <C>                 <C>                 <C>                  <C>
</TABLE>

                                     A-13
<PAGE>

                                                                       EXHIBIT B

                        FORM OF CERTIFICATE OF TRANSFER

The Manitowoc Company, Inc.
500 South 16th Street
Manitowoc, WI 54220
Attention: Maurice D. Jones

The Bank of New York
101 Barclay Street
21st Floor West
New York, NY 10286
Attn: Corporate Trust Administration

          Re: 10 3/8% Senior Subordinated Notes due 2011
              The Manitowoc Company, Inc.
              ------------------------------------------

          Reference is hereby made to the Indenture, dated as of May 9, 2001
(the "Indenture"), by and among The Manitowoc Company, Inc., as Company (the
      ---------
"Company"), the Guarantors named therein and The Bank of New York, as trustee.
 -------
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

          ___________________ (the "Transferor") owns and proposes to transfer
                                    ----------
the Note[s] or interest in such Note[s] specified in Annex A hereto, in a
                                                     -------
principal amount of . ___________ (the "Transfer"), to ____________________ (the
                                        --------
 "Transferee"), as further specified in Annex A hereto.  In connection with the
  ----------                            -------
Transfer, the Transferor hereby certifies that:

                            [CHECK ALL THAT APPLY]

          1.  [_]  Check if Transferee will take delivery of a beneficial
interest in the U.S. Global Note or a Definitive Registered Note pursuant to
Rule 144A. The Transfer is being effected pursuant to and in accordance with
Rule 144A under the United States Securities Act of 1933, as amended (the
"Securities Act"), and, accordingly, the Transferor hereby further certifies
 --------------
that the Book-Entry Interest or Definitive Registered Note is being transferred
to a Person that the Transferor reasonably believed and believes is purchasing
the Book-Entry Interest or Definitive Registered Note for its own account, or
for one or more accounts with respect to which such Person exercises sole
investment discretion, and such Person and each such account is a "qualified
institutional buyer" within the meaning of Rule 144A in a transaction meeting
the requirements of Rule 144A and such Transfer is in compliance with any
applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Transfer in accordance with the terms of the
Indenture, the transferred Book-Entry Interest or Definitive Registered Note
will be subject to the restrictions on

                                      B-1
<PAGE>

transfer enumerated in the Private Placement Legend printed on the U.S.
Global Note and/or the Definitive Registered Note and in the Indenture and the
Securities Act.

          2.  [_]  Check if Transferee will take delivery of a Book-Entry
Interest in the International Global Note or a Definitive Registered Note
pursuant to Regulation S. The Transfer is being effected pursuant to and in
accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly,
the Transferor hereby further certifies that (i) the Transfer is not being made
to a person in the United States and (x) at the time the buy order was
originated, the Transferee was outside the United States or such Transferor and
any Person acting on its behalf reasonably believed and believes that the
Transferee was outside the United States or (y) the transaction was executed in,
on or through the facilities of a designated offshore securities market and
neither such Transferor nor any Person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States, (ii) no directed
selling efforts have been made in contravention of the requirements of Rule
903(b) or Rule 904(b) of Regulation S under the Securities Act and (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act. Upon consummation of the proposed transfer
in accordance with the terms of the Indenture, the transferred Book-Entry
Interest or Definitive Registered Note will be subject to the restrictions on
Transfer enumerated in the Private Placement Legend printed on the International
Global Note and/or the Definitive Registered Note and in the Indenture and the
Securities Act.

          3.  [_]  Check and complete if Transferee will take delivery of a
Book-Entry Interest in the U.S. Global Note or a Definitive Registered Note
pursuant to any provision of the Securities Act other than Rule 144A or
Regulation S. The Transfer is being effected in compliance with the transfer
restrictions applicable to Book-Entry Interests in Restricted Global Notes and
Restricted Definitive Registered Notes and pursuant to and in accordance with
the Securities Act and any applicable blue sky securities laws of any state of
the United States, and accordingly the Transferor hereby further certifies that
(check one):

          (a) [_]  such Transfer is being effected pursuant to and in accordance
with Rule 144 under the Securities Act;

          or

          (b) [_]  such Transfer is being effected to the Company or a
subsidiary thereof;

          or

          (c) [_]  such Transfer is being effected to an institutional
"Accredited Investor," as defined in Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities Act, and pursuant to an exemption from the
registration requirements of the Securities Act

                                      B-2
<PAGE>

other than Rule 144A, Rule 144 or Rule 904, and the Transferor hereby further
certifies that it has not engaged in any general solicitation within the meaning
of Regulation D under the Securities Act and the Transfer complies with the
transfer restrictions applicable to Book-Entry Interests in a Restricted Global
Note or Restricted Definitive Registered Notes and the requirements of the
exemption claimed, which certification is supported by (1) a certificate
executed by the Transferee in the form of Exhibit D to the Indenture and (2) if
                                          ---------
such Transfer is in respect of a principal amount of Notes at the time of
transfer of less than [_]250,000, an Opinion of Counsel provided by the
Transferor or the Transferee (a copy of which the Transferor has attached to
this certification), to the effect that such Transfer is in compliance with the
Securities Act. Upon consummation of the proposed transfer in accordance with
the terms of the Indenture, the transferred Book-Entry Interest or Definitive
Registered Note will be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Global Note and/or the
Restricted Definitive Registered Notes and in the Indenture and the Securities
Act.

          4.  [_]  Check if Transferee will take delivery of a Book-Entry
Interest in an Unrestricted Global Note or an Unrestricted Definitive Registered
Note. The Transfer is being effected pursuant to an effective registration
statement under the Securities Act and in compliance with the prospectus
delivery requirements of the Securities Act. Upon consummation of the proposed
transfer in accordance with the terms of the Indenture, the transferred Book-
Entry Interest or Definitive Registered Note will not be subject to the
restrictions on transfer enumerated in the Private Placement Legend.

                                      B-3
<PAGE>

          This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                                   ___________________________________
                                   [Insert Name of Transferor]

                                   By: _______________________________
                                       Name:
                                       Title:

Dated: ____________________

                                      B-4
<PAGE>

                      ANNEX A TO CERTIFICATE OF TRANSFER

          1.  The Transferor owns and proposes to transfer the following:

              [CHECK ONE OF (a)(i), (a)(ii) or (b)]

          (a) [_]  a Book-Entry Interest in the:

                   (i)    [_]  U.S. Global Note (ISIN __________; Common Code
          __________), held through Participant Account __________, or

                   (iii)  [_]  International Global Note (ISIN __________;
          Common Code __________), held through Participant Account __________,
          or

          (b) [_]  a Restricted Definitive Registered Note; or

          2.  After the Transfer the Transferee will hold:

                                  [CHECK ONE]

          (a) [_]  a Book-Entry Interest in the :

                   (i)   [_]  U.S. Global Note (ISIN __________; Common Code
          __________), held through Participant Account __________, or

                   (ii)  [_]  International Global Note (ISIN __________;
          Common Code __________), held through Participant Account __________,
          or

                   (iii) [_]  Unrestricted Global Note (ISIN __________; Common
          Code ___________), held through Participant Account __________, or

          (b) [_]   a Restricted Definitive Registered Note; or

          (c) [_]   an Unrestricted Definitive Registered Note.

                                      B-5
<PAGE>

                                                                       EXHIBIT C
                                                                       ---------

                        FORM OF CERTIFICATE OF EXCHANGE

The Manitowoc Company, Inc.
500 South 16th Street
Manitowoc, WI  54220
Attention:  Maurice D. Jones

The Bank of New York
101 Barclay Street
21st Floor West
New York, NY  10286
Attn:  Corporate Trust Administration

          Re:  10 3/8% Senior Subordinated Notes due 2011
               The Manitowoc Company, Inc.
               ------------------------------------------

          (Regulation S ISIN XS0128971032; Common Code:  012897103)
          (144A ISIN XS0128971115; Common Code:  012897111)

          Reference is hereby made to the Indenture, dated as of May 9, 2001
(the "Indenture"), by and among The Manitowoc Company, Inc., as Company (the
      ---------
"Company"), the Guarantors named therein and The Bank of New York, as trustee.
 -------
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

          __________________________ (the "Owner") owns and proposes to exchange
                                           -----
the Note[s] or interest in such Note[s] specified on Annex A hereto, in a
                                                     -------
principal amount of . ____________ (the "Exchange").  In connection with the
                                         --------
Exchange, the Owner hereby certifies that:

          1.  Exchange of Restricted Definitive Registered Notes or Book-Entry
Interests in Restricted Global Notes for Restricted Definitive Registered Notes
or Book-Entry Interests in Restricted Global Notes

          (a) [_] Check if Exchange is from Book-Entry Interest in a Restricted
Global Note to Restricted Definitive Registered Note. In connection with the
Exchange of the Owner's Book-Entry Interest in a Restricted Global Note for a
Restricted Definitive Registered Note with an equal principal amount, the Owner
hereby certifies that the Restricted Definitive Registered Note is being
acquired for the Owner's own account without transfer. Upon consummation of the
proposed Exchange in accordance with the terms of the Indenture, the Restricted
Definitive Registered Note issued will continue to be subject to the

                                      C-1
<PAGE>

restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Definitive Registered Note and in the Indenture and the
Securities Act.

          (b) [_] Check if Exchange is from Restricted Definitive Registered
Note to Book-Entry Interest in a Restricted Global Note. In connection with the
Exchange of the Owner's Restricted Definitive Registered Note for Book-Entry
Interest in a Restricted Global Note with an equal principal amount, the Owner
hereby certifies that the Book-Entry Interests are being acquired for the
Owner's own account without transfer. Upon consummation of the proposed Exchange
in accordance with the terms of the Indenture, the Book-Entry Interests will
continue to be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the Restricted Global Note and in the Indenture and
the Securities Act.

          This certificate and the statements contained herein are made for your
benefit and the benefit of the Company.

                              [Insert Name of Owner]

                              By:_______________________________________________
                                 Name:
                                 Title:

Dated:  ______________________

                                      C-2
<PAGE>

              ANNEX A TO CERTIFICATE OF EXCHANGE

          1.  The Owner currently owns and proposes to Exchange the following:

              [CHECK ONE OF (a)(i), (a)(ii) or (b)]

          (a) a Book-Entry Interest in the:

                    (i)   [_] U.S. Global Note (ISIN __________; Common Code
          __________), held through Participant Account __________, or

                    (ii)  [_] International Global Note (ISIN __________; Common
          Code __________), held through Participant Account __________, or

          (b)  [_]    a Restricted Definitive Registered Note.

          2.   After the Exchange the Owner will hold:

                                  [CHECK ONE]

          (a)       a Book-Entry Interest in the:

                    (i)  [_]  U.S. Global Note (ISIN __________; Common Code
          __________), through Participant Account __________, or

                    (ii) [_]  International Global Note (ISIN __________;
          Common Code __________), through Participant Account __________, or

          (b)  [_]    a Restricted Definitive Registered Note.

          2.   The Owner requests that Definitive Registered Notes be registered
in the following name:

          ___________________
          ___________________

          and sent to the Owner at the following address:

          ___________________
          ___________________

                                      C-3
<PAGE>

                                                                       EXHIBIT D
                                                                       ---------

                            FORM OF CERTIFICATE FROM
                  ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

The Manitowoc Company, Inc.
500 South 16th Street
Manitowoc, WI  54220
Attention:  Maurice D. Jones

The Bank of New York
101 Barclay Street
21st Floor West
New York, NY  10286
Attn:  Corporate Trust Administration

          Re:  10 3/8% Senior Subordinated Notes due 2011
               The Manitowoc Company, Inc.
               ------------------------------------------

          Reference is hereby made to the Indenture, dated as of May 9, 2001
(the "Indenture"), by and among The Manitowoc Company, Inc., as Company (the
      ---------
"Company"), the Guarantors named therein and The Bank of New York, as trustee.
 -------
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

          In connection with our proposed purchase of . ____________ aggregate
principal amount of:

          (a)    [_]    a Book-Entry Interest in a Global Note, or

          (b)    [_]    a Definitive Registered Note,

          we confirm that:

          1.     We understand that any subsequent transfer of the Notes or any
interest therein is subject to certain restrictions and conditions set forth in
the Indenture and the undersigned agrees to be bound by, and not to resell,
pledge or otherwise transfer the Notes or any interest therein except in
compliance with, such restrictions and conditions and the United States
Securities Act of 1933, as amended (the "Securities Act").
                                         --------------

          2.     We understand that the offer and sale of the Notes have not
been registered under the Securities Act and that the Notes and any interest
therein may not be offered or sold except as permitted in the following
sentence. We agree, on our own behalf and on behalf of any accounts for which we
are acting as hereinafter stated, that if we should sell the

                                      D-1
<PAGE>

Notes or any interest therein, we will do so only (a) to The Manitowoc Company,
Inc. or any of its subsidiaries, (b) pursuant to a registration statement that
has been declared effective under the U.S. Securities Act, (c) for so long as
the Notes are eligible for resale pursuant to Rule 144A under the U.S.
Securities Act, to a person who the holder reasonably believes is a QIB
purchasing for its own account or for the account of a QIB in compliance with
Rule 144A and to whom notice is given that the transfer is being made in
reliance on Rule 144A, (d) pursuant to offshore transactions in compliance with
Rule 903 and 904 under the U.S. Securities Act, (e) in a transaction meeting the
requirements of Rule 144 under the U.S. Securities Act, (f) to an institutional
accredited investor that, prior to such transfer, furnishes to the trustee or
the registrar a signed letter containing certain representations and agreements
relating to the transfer (the form of which letter has been obtained from the
trustee) and, if such transfer is in respect of an aggregate principal amount of
Notes less than . 250,000, an opinion of counsel acceptable to the Company that
such transfer is in accordance with the U.S. Securities Act, or (g) in
accordance with another exemption from the registration requirements of the U.S.
Securities Act (and based upon an opinion of counsel acceptable to The Manitowoc
Company, Inc.), subject in each of the foregoing cases to any requirements of
law that the disposition of its property or the property of such investor
account or accounts be at all times within its or their control and in
compliance with any applicable state securities laws. We further agree to
provide to any person purchasing the Definitive Registered Note or Book-Entry
Interest in a Global Note from us in a transaction meeting the requirements of
clauses (a) through (g) of this paragraph a notice advising such purchaser that
resales thereof are restricted as stated herein.

          3.     We understand that, on any proposed resale of the Notes or Book
-Entry Interest therein, we will be required to furnish to you and the Company
such certifications, legal opinions and other information as you and the Company
may reasonably require to confirm that the proposed sale complies with the
foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

          4.     We are an institutional "accredited investor" (as defined in
Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and
have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of our investment in the Notes, and
we and any accounts for which we are acting are each able to bear the economic
risk of our or its investment.

          5.     We are acquiring the Notes or Book-Entry Interest therein
purchased by us for our own account or for one or more accounts (each of which
is an institutional "accredited investor") as to each of which we exercise sole
investment discretion without a view to distribution thereof and without any
present intention of selling such Notes or Book-Entry Interests in a transaction
that would violate the Securities Act.

                                      D-2
<PAGE>

          You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby.

                              [Insert Name of Accredited Investor]

                              By:_______________________________________________
                                 Name:
                                 Title:

Dated:  _______________

                                      D-3
<PAGE>

                                                                       EXHIBIT E
                                                                       ---------

                               FORM OF GUARANTEE

          For value received, the undersigned hereby unconditionally guarantees
to the Holder of this Note the cash payments in Euros of principal of, premium,
if any, Additional Interest, if any, and interest on this Note in the amounts
and at the time when due and interest on the overdue principal and premium and,
to the extent lawful, Additional Interest, if any, and interest, if any, on this
Note, if lawful, and the payment or performance of all other obligations of the
Company under the Indenture or the Notes, to the Holder of this Note and the
Trustee, all in accordance with and subject to the terms and limitations of this
Note and Articles Eleven and Twelve of the Indenture and this Guarantee.  This
Guarantee will become effective in accordance with Articles Eleven and Twelve of
the Indenture and its terms shall be evidenced therein.  The validity and
enforceability of each Guarantee shall not be affected by the fact that it may
not be affixed to any particular Note.  Capitalized terms used but not defined
herein shall have the meanings ascribed to them in the Indenture dated as of May
9, 2001, between The Manitowoc Company, Inc. and The Bank of New York, as
Trustee, as amended or supplemented (the "Indenture").
                                          ---------

          The obligations of the undersigned to the Holders of Notes and to the
Trustee pursuant to this Guarantee and the Indenture are expressly set forth in
Articles Eleven and Twelve of the Indenture and reference is hereby made to the
Indenture for the precise terms of this Guarantee and all of the other
provisions of the Indenture to which this Guarantee relates.

          THIS GUARANTEE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.  EACH GUARANTOR HEREUNDER AGREES TO SUBMIT TO
THE JURISDICTION OF ANY FEDERAL OR STATE COURT SITUATED IN THE STATE OF NEW
YORK, THE CITY OF NEW YORK, THE BOROUGH OF MANHATTAN FOR THE PURPOSES SET FORTH
IN THE INDENTURE, THE NOTES OR THIS GUARANTEE.

Date:  May 9, 2001

                              [               ],
                                as Guarantor

                              By:_______________________________________________
                                 Name:
                                 Title:

                                      F-1

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