Document:

<Page>

                                                                    EXHIBIT 10.6
                           REVOLVING CREDIT AGREEMENT

                            dated as of June 25, 2001

                                  STAPLES, INC.

                             THE BANKS NAMED HEREIN,

                              FLEET NATIONAL BANK,
                                    AS AGENT,

                     CITIBANK, N.A., AS DOCUMENTATION AGENT,

                FIRST UNION NATIONAL BANK, AS DOCUMENTATION AGENT

                                      WITH

                             FLEET SECURITIES, INC.
                            HAVING ACTED AS ARRANGER

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                    PAGE
                                                                                                    ----
<S>         <C>                                                                                      <C>
Section 1.  DEFINITIONS AND RULES OF INTERPRETATION..................................................1
                Section 1.1.  DEFINITIONS............................................................1
                Section 1.2.  RULES OF INTERPRETATION................................................11

Section 2.  THE REVOLVING CREDIT FACILITY............................................................11
                Section 2.1.  COMMITMENT TO LEND REVOLVING CREDIT LOANS..............................11
                Section 2.2.  REQUESTS FOR REVOLVING CREDIT LOANS....................................12
                Section 2.3.  FUNDS FOR REVOLVING CREDIT LOANS.......................................12
                        Section 2.3.1.  FUNDING PROCEDURES...........................................12
                        Section 2.3.2.  ADVANCES BY AGENT............................................12
                Section 2.4.  THE REVOLVING CREDIT NOTES.............................................13
                Section 2.5.  REDUCTION OF TOTAL COMMITMENT..........................................13
                Section 2.6.  MANDATORY REPAYMENTS OF REVOLVING CREDIT LOANS.........................13
                Section 2.7.  OPTIONAL REPAYMENTS OF REVOLVING CREDIT LOANS..........................13
                Section 2.8.  INTEREST ON REVOLVING CREDIT LOANS.....................................14
                Section 2.9.  CONVERSION OPTIONS.....................................................14
                        Section 2.9.1.  CONVERSION TO DIFFERENT TYPE OF REVOLVING CREDIT LOAN........14
                        Section 2.9.2.  CONTINUATION OF TYPE OF REVOLVING CREDIT LOAN................14
                        Section 2.9.3.  EURODOLLAR RATE LOANS........................................14

Section 3.  CERTAIN GENERAL PROVISIONS; FEES.........................................................14
                Section 3.1.  AGENT FEES.............................................................15
                Section 3.2.  FACILITY FEE...........................................................15
                Section 3.3.  FUNDS FOR PAYMENTS.....................................................15
                        Section 3.3.1.  PAYMENTS TO AGENT............................................15
                        Section 3.3.2.  NO OFFSET, ETC...............................................15
                        Section 3.3.3.  WITHHOLDING..................................................15
                Section 3.4.  COMPUTATIONS...........................................................15
                Section 3.5.  INABILITY TO DETERMINE EURODOLLAR RATE.................................16
                Section 3.6.  ILLEGALITY.............................................................16
                Section 3.7.  ADDITIONAL COSTS, ETC..................................................16
                Section 3.8.  CAPITAL ADEQUACY.......................................................17
                Section 3.9.  CERTIFICATE............................................................17
                Section 3.10. INDEMNITY..............................................................18
                Section 3.11. INTEREST ON OVERDUE AMOUNTS............................................18
                Section 3.12. REPLACEMENT OF INDIVIDUAL BANKS........................................18
                Section 3.13. GUARANTIES.............................................................18

Section 4.  REPRESENTATIONS AND WARRANTIES...........................................................19
                Section 4.1.  CORPORATE AUTHORITY....................................................19
                        Section 4.1.1.  INCORPORATION; GOOD STANDING.................................19
                        Section 4.1.2.  AUTHORIZATION................................................19
                        Section 4.1.3.  ENFORCEABILITY...............................................19
                Section 4.2.  GOVERNMENTAL APPROVALS.................................................19
                Section 4.3.  TITLE TO PROPERTIES; LEASES............................................19
                Section 4.4.  FINANCIAL STATEMENTS...................................................19
                Section 4.5.  NO MATERIAL CHANGES, ETC...............................................20
                Section 4.6.  FRANCHISES, PATENTS, COPYRIGHTS, ETC...................................20
                Section 4.7.  LITIGATION.............................................................20
                Section 4.8.  COMPLIANCE WITH OTHER INSTRUMENTS, LAWS, ETC...........................20
                Section 4.9.  TAX STATUS.............................................................20
</Table>

<Page>
                                       -2-

<Table>
<S>         <C>                                                                                      <C>
                Section 4.10. NO EVENT OF DEFAULT....................................................21
                Section 4.11. HOLDING COMPANY AND INVESTMENT COMPANY ACTS............................21
                Section 4.12. EMPLOYEE BENEFIT PLANS.................................................21
                        Section 4.12.1. IN GENERAL...................................................21
                        Section 4.12.2. TERMINABILITY OF WELFARE PLANS...............................21
                        Section 4.12.3. GUARANTEED PENSION PLANS.....................................21
                        Section 4.12.4. MULTIEMPLOYER PLANS..........................................21
                Section 4.13. REGULATIONS U AND X; ETC...............................................21
                Section 4.14. ENVIRONMENTAL COMPLIANCE...............................................21
                Section 4.15. SUBSIDIARIES, ETC......................................................22

Section 5.  AFFIRMATIVE COVENANTS OF THE BORROWER....................................................22
                Section 5.1.  PUNCTUAL PAYMENT.......................................................22
                Section 5.2.  MAINTENANCE OF OFFICE..................................................22
                Section 5.3.  RECORDS AND ACCOUNTS...................................................23
                Section 5.4.  FINANCIAL STATEMENTS, CERTIFICATES AND INFORMATION.....................23
                Section 5.5.  NOTICES................................................................24
                Section 5.6.  CORPORATE EXISTENCE; MAINTENANCE OF PROPERTIES.........................24
                Section 5.7.  INSURANCE..............................................................24
                Section 5.8.  TAXES..................................................................24
                Section 5.9.  INSPECTION OF PROPERTIES AND BOOKS, ETC................................25
                Section 5.10. COMPLIANCE WITH LAWS, CONTRACTS, LICENSES, AND PERMITS.................25
                Section 5.11. EMPLOYEE BENEFIT PLANS.................................................25
                Section 5.12. USE OF PROCEEDS........................................................25
                Section 5.13. LICENSES AND PERMITS...................................................25
                Section 5.14. FURTHER ASSURANCES.....................................................25

Section 6.  CERTAIN NEGATIVE COVENANTS OF THE BORROWER...............................................25
                Section 6.1.  RESTRICTIONS ON INDEBTEDNESS...........................................26
                Section 6.2.  RESTRICTIONS ON LIENS..................................................27
                Section 6.3.  RESTRICTIONS ON INVESTMENTS............................................28
                Section 6.4.  DISTRIBUTIONS..........................................................30
                Section 6.5.  EMPLOYEE BENEFIT PLANS.................................................30
                Section 6.6.  MERGER AND CONSOLIDATION...............................................30
                Section 6.7.  DISPOSITION OF ASSETS AND SALE-LEASEBACK TRANSACTIONS..................30
                Section 6.8.  SUBORDINATED DEBT......................................................31

Section 7.  FINANCIAL COVENANTS OF THE BORROWER......................................................31
                Section 7.1.  FIXED CHARGE COVERAGE RATIO............................................31
                Section 7.2.  FUNDED DEBT TO EBITDA RATIO............................................31
                Section 7.3.  MINIMUM CONSOLIDATED TANGIBLE NET WORTH................................31

Section 8.  CLOSING CONDITIONS.......................................................................31
                Section 8.1.  LOAN DOCUMENTS.........................................................32
                Section 8.2.  CERTIFIED COPIES OF CHARTER DOCUMENTS..................................32
                Section 8.3.  CORPORATE ACTION.......................................................32
                Section 8.4.  INCUMBENCY CERTIFICATE.................................................32
                Section 8.5.  OPINION OF COUNSEL.....................................................32
                Section 8.6.  PAYMENT OF FEES........................................................32
                Section 8.7.  COMPLIANCE CERTIFICATE.................................................32
                Section 8.8.  NO MATERIAL ADVERSE CHANGE.............................................32

Section 9.  CONDITIONS TO ALL BORROWINGS.............................................................32
                Section 9.1.  REPRESENTATIONS TRUE; NO EVENT OF DEFAULT..............................32
                Section 9.2.  NO LEGAL IMPEDIMENT....................................................33
</Table>

<Page>
                                       -3-

<Table>
<S>         <C>                                                                                      <C>
                Section 9.3.  GOVERNMENTAL REGULATION................................................33
                Section 9.4.  PROCEEDINGS AND DOCUMENTS..............................................33

Section 10. EVENTS OF DEFAULT; ACCELERATION; ETC.....................................................33
                Section 10.1. EVENTS OF DEFAULT AND ACCELERATION.....................................33
                Section 10.2. TERMINATION OF COMMITMENTS.............................................35
                Section 10.3. REMEDIES...............................................................36

Section 11. SETOFF...................................................................................36

Section 12. THE AGENTS...............................................................................36
                Section 12.1. AUTHORIZATION..........................................................36
                Section 12.2. EMPLOYEES AND AGENTS...................................................37
                Section 12.3. NO LIABILITY...........................................................37
                Section 12.4. NO REPRESENTATIONS.....................................................37
                Section 12.5.  PAYMENTS..............................................................37
                        Section 12.5.1. PAYMENTS TO AGENT............................................37
                        Section 12.5.2. DISTRIBUTION BY AGENT........................................38
                        Section 12.5.3. DELINQUENT BANKS.............................................38
                Section 12.6. HOLDERS OF REVOLVING CREDIT NOTES......................................38
                Section 12.7. INDEMNITY..............................................................38
                Section 12.8. AGENT AS BANK; ETC.....................................................38
                Section 12.9. RESIGNATION............................................................38
                Section 12.10. NOTIFICATION OF DEFAULTS AND EVENTS OF DEFAULT........................39
                Section 12.11. DUTIES OF DOCUMENTATION AGENTS........................................39

Section 13. EXPENSES.................................................................................39

Section 14. INDEMNIFICATION..........................................................................39

Section 15. SURVIVAL OF COVENANTS, ETC...............................................................40

Section 16. ASSIGNMENT AND PARTICIPATION.............................................................40
                Section 16.1. CONDITIONS TO ASSIGNMENT BY BANKS......................................40
                Section 16.2. CERTAIN REPRESENTATIONS AND WARRANTIES; LIMITATIONS; COVENANTS.........40
                Section 16.3. REGISTER...............................................................41
                Section 16.4. NEW REVOLVING CREDIT NOTES.............................................41
                Section 16.5. PARTICIPATIONS.........................................................41
                Section 16.6. DISCLOSURE.............................................................42
                Section 16.7. ASSIGNEE OR PARTICIPANT AFFILIATED WITH THE BORROWER...................42
                Section 16.8. MISCELLANEOUS ASSIGNMENT PROVISIONS....................................42
                Section 16.9. ASSIGNMENT BY BORROWER.................................................42

Section 17. NOTICES, ETC.............................................................................42

Section 18. GOVERNING LAW............................................................................43

Section 19. HEADINGS.................................................................................43

Section 20. COUNTERPARTS.............................................................................43

Section 21. ENTIRE AGREEMENT, ETC....................................................................43

Section 22. WAIVER OF JURY TRIAL.....................................................................44
</Table>

<Page>
                                       -4-

<Table>
<S>         <C>                                                                                      <C>
Section 23. CONSENTS, AMENDMENTS, WAIVERS, ETC.......................................................44

Section 24. TREATMENT OF CERTAIN CONFIDENTIAL INFORMATION............................................44
                Section 24.1. SHARING OF INFORMATION WITH SECTION 20 SUBSIDIARY......................44
                Section 24.2. CONFIDENTIALITY........................................................45
                Section 24.3. PRIOR NOTIFICATION.....................................................45
                Section 24.4. OTHER..................................................................45

Section 25. SEVERABILITY.............................................................................45

Section 26. TRANSITIONAL ARRANGEMENTS................................................................45
</Table>

<Page>
                                       -5-

                             EXHIBITS AND SCHEDULES

EXHIBIT A               Form of Loan Request
EXHIBIT B               Form of Revolving Credit Note
EXHIBIT C               Form of Compliance Certificate
EXHIBIT D               Form of Assignment and Acceptance
EXHIBIT E               Form of Guaranty

SCHEDULE 1              Banks
SCHEDULE 2              Guarantors
SCHEDULE 4.3            Title to Properties, Leases
SCHEDULE 4.7            Litigation
SCHEDULE 4.9            Taxes
SCHEDULE 4.12           Pension Liabilities
SCHEDULE 4.14           Environmental Compliance
SCHEDULE 4.15(a)        Subsidiaries
SCHEDULE 4.15(b)        Joint Ventures and Partnerships
SCHEDULE 4.15(c)        Minority Investments
SCHEDULE 6.1(h)         Existing Indebtedness
SCHEDULE 6.2            Existing Liens
SCHEDULE 6.3            Existing Investments

<Page>

                           REVOLVING CREDIT AGREEMENT

        This REVOLVING CREDIT AGREEMENT, dated as of June 25, 2001, is by and
among (i) STAPLES, INC. (the "BORROWER"), a Delaware corporation having its
principal place of business at 500 Staples Drive, Framingham, MA 01701, (ii)
FLEET NATIONAL BANK and the other lending institutions listed on SCHEDULE 1
attached hereto (the "BANKS"), (iii) FLEET NATIONAL BANK, as administrative
agent (in such capacity, the "AGENT") for the Banks, and (iv) FIRST UNION
NATIONAL BANK, as documentation agent for the Banks, and CITIBANK, N.A., as
documentation agent for the Banks (collectively, the "DOCUMENTATION AGENTS").

        Section 1. DEFINITIONS AND RULES OF INTERPRETATION.

        Section 1.1. DEFINITIONS. The following terms shall have the meanings
set forth in this Section 1 or elsewhere in the provisions of this Credit
Agreement referred to below:

        ADJUSTMENT DATE. The first day of the month immediately following the
month in which a Compliance Certificate is delivered by the Borrower pursuant
to Section 5.4(c) hereof.

        AFFILIATE. Any Person that would be considered to be an affiliate of the
Borrower under Rule 144(a) of the Rules and Regulations of the Securities and
Exchange Commission, as in effect on the Closing Date, if the Borrower were
issuing securities.

        AGENT. As defined in the preamble hereto.

        AGENTS. Collectively, (i) the Agent and (ii) the Documentation Agents.

        AGENT FEES. See Section 3.1 hereof.

        AGENT'S HEAD OFFICE. The Agent's office located at 100 Federal Street,
Boston, Massachusetts 02110, or at such other location as the Agent may
designate from time to time.

        AGENT'S SPECIAL COUNSEL. Bingham Dana LLP or such other counsel as may
be approved by the Agent.

        APPLICABLE MARGIN. The Applicable Margin shall be in effect for each
period commencing on an Adjustment Date through the date immediately preceding
the next Adjustment Date (each a "RATE ADJUSTMENT PERIOD") based on a
determination of the Fixed Charge Coverage Ratio and the Senior Debt Rating. The
Fixed Charge Coverage Ratio shall be determined as at the end of the fiscal
period for which financial statements and a Compliance Certificate have most
recently been delivered to the Agent pursuant to Section 5.4 and the Senior Debt
Rating shall be determined as of the last day of the preceding Rate Adjustment
Period. The Applicable Margin shall be the applicable rate PER ANNUM, expressed
in Basis Points, corresponding to the lower of the Levels set forth in the table
below (with Level I being the lowest level and Level VI being the highest level)
corresponding to the Fixed Charge Coverage Ratio or the Senior Debt Rating,
PROVIDED THAT if the Fixed Charge Coverage Ratio and Senior Debt Rating are more
than one Level apart, the Applicable Margin shall be one Level below the higher
of the two applicable Levels. In the event that the Senior Debt Ratings assigned
by Moody's and S&P are not equivalent, the following criteria shall determine
which Level shall be applicable to the Senior Debt Rating: (i) if the Senior
Debt Ratings are one Level apart, the Level applicable to the Senior Debt Rating
shall be the lower of the two Levels and (ii) if the Senior Debt Ratings are
more than one Level apart, the Level applicable to the Senior Debt Rating shall
be one Level below the higher of the two Levels. For purposes of clarity, the
parties hereto acknowledge that the Applicable Margin with respect to (i)
Eurodollar Rate Loans shall be the rate per annum set forth in column D in the
table below and (ii) the Facility Fee shall be the rate per annum set forth in
column E in the table below.

<Page>
                                       -2-

<Table>
<Caption>
   ------------ ------------------------ ------------------- ------------------------ ---------------
        A                  B                     C                      D                   E
   ------------ ------------------------ ------------------- ------------------------ ---------------
      LEVEL      FIXED CHARGE COVERAGE   SENIOR DEBT RATING   EURODOLLAR RATE LOANS    FACILITY FEE
                         RATIO
   ------------ ------------------------ ------------------- ------------------------ ---------------
       <S>       <C>                       <C>                         <C>                  <C>
        I        GREATER THAN   2.50:1     S&P: A-                     37.0                  8.0
                 OR EQUAL TO               Moody's:   A3 or
                                           better
   ------------ ------------------------ ------------------- ------------------------ ---------------
       II        GREATER THAN   2.25:1     S&P: BBB+                   40.0                 10.0
                 OR EQUAL TO               Moody's:   Baa1 or
                                           better
   ------------ ------------------------ ------------------- ------------------------ ---------------
       III       GREATER THAN   2.00:1     S&P: BBB                    51.0                 11.5
                 OR EQUAL TO               Moody's:   Baa2  or
                                           better
   ------------ ------------------------ ------------------- ------------------------ ---------------
       IV        GREATER THAN   1.85:1     S&P: BBB-                   66.0                 14.0
                 OR EQUAL TO               Moody's:   Baa3  or
                                           better
   ------------ ------------------------ ------------------- ------------------------ ---------------
       V         GREATER THAN   1.75:1     S&P: BB+                    76.5                 19.5
                 OR EQUAL TO               Moody's:   Ba1  or
                                           better
   ------------ ------------------------ ------------------- ------------------------ ---------------
       VI        LESS THAN      1.75:1     lower than                  76.5                 23.5
                                           S&P: BB+
                                           Moody's:   Ba1  or
                                           unrated
   ------------ ------------------------ ------------------- ------------------------ ---------------
</Table>

        Notwithstanding the foregoing, (a) for the period commencing on the
Closing Date through the date immediately preceding the first Adjustment Date to
occur after the Closing Date, the Applicable Margin shall be that corresponding
to Level III in the table above, (b) if the Borrower fails to deliver any
Compliance Certificate pursuant to Section 5.4(c) hereof then, for the period
commencing on the date such Compliance Certificate was due through the date
immediately preceding the Adjustment Date that occurs immediately following the
date on which such Compliance Certificate is delivered, the Applicable Margin
shall be the Applicable Margin corresponding to Level VI above, and (c) for any
day on which the outstanding principal amount of Revolving Credit Loans exceeds
an amount equal to thirty-three percent (33%) of the Total Commitment, the
Applicable Margin with respect to Eurodollar Rate Loans set forth in column D in
the table above shall be increased by a rate per annum equal to twelve and
one-half (12.5) Basis Points.

        ARRANGER. Fleet Securities, Inc., a Massachusetts corporation.

        ASSIGNMENT AND ACCEPTANCE. See Section 16.1 hereof.

        BALANCE SHEET DATE. February 3, 2001.

        BANKS. As defined in the preamble hereto, which term shall include any
other Person who becomes an assignee of any rights and obligations of a Bank
pursuant to Section 16 hereof.

        BASE RATE LOANS. Any Revolving Credit Loans bearing interest calculated
by reference to the Prime Rate.

        BASIS POINT. One one-hundredth of one percent (0.01%).

<Page>
                                       -3-

        BORROWER. As defined in the preamble hereto.

        BUSINESS DAY. Any day on which banking institutions in Boston,
Massachusetts and New York, New York, are open for the transaction of banking
business and, in the case of Eurodollar Rate Loans, also a day which is a
Eurodollar Business Day.

        CAPITAL STOCK. With respect to any corporation, partnership, trust,
unincorporated association, joint venture, limited liability company, or other
legal or business entity, any and all shares, interests, participations or other
equivalent (however designated) of capital stock of such entity, any and all
limited or general partnership interests and equivalent ownership interests in
such entity, any and all warrants and options to purchase any of the foregoing,
and any securities convertible into any of the foregoing.

        CAPITALIZED LEASES. Leases under which the Borrower or any of its
Subsidiaries is the lessee or obligor, the discounted future rental payment
obligations under which are required to be capitalized on the balance sheet of
the lessee or obligor in accordance with generally accepted accounting
principles.

        CERCLA. The Comprehensive Environmental Response, Compensation and
Liability Act of 1980.

        CLOSING DATE. The first date on which the conditions set forth in
Section 8 hereof have been satisfied, which shall be no later than June 30,
2001.

        CODE. The Internal Revenue Code of 1986.

        COMMITMENT. The agreement of each Bank, subject to the terms and
conditions of this Credit Agreement, to make Revolving Credit Loans to the
Borrower.

        COMMITMENT AMOUNT. With respect to each Bank, the amount of such Bank's
Commitment set forth on SCHEDULE 1 attached hereto, as the same may be reduced
from time to time in accordance with the terms of this Credit Agreement; or if
the Total Commitment is terminated pursuant to the provisions hereof, zero.

        COMMITMENT PERCENTAGE. With respect to each Bank, the percentage set
forth on SCHEDULE 1 attached hereto as such Bank's percentage of the Total
Commitment.

        COMPLIANCE CERTIFICATE. See Section 5.4(c) hereof.

        CONFIDENTIAL INFORMATION. All information relating to the Borrower or
any of its Subsidiaries that is labeled by the Borrower or such Subsidiary as
confidential at the time such information is supplied by the Borrower or such
Subsidiary to a Bank, other than information which (a) is public knowledge or
generally available to the public, or (b) is obtained by any of the Banks,
whether prior to or after disclosure to such Bank by the Borrower or any of its
Subsidiaries, from a source other than the Borrower or any of its Subsidiaries,
provided that such information is not known by such Bank to have been disclosed
by any party in violation of a confidentiality agreement with the Borrower or
any of its Subsidiaries, any other obligation of nondisclosure with respect to
the Borrower or any of its Subsidiaries or any applicable statutory or
regulatory limitation imposed on the disclosure of such information.

        CONSOLIDATED or CONSOLIDATED. With reference to any term defined herein,
shall mean that term as applied to the accounts of the Borrower and its
Subsidiaries, consolidated in accordance with generally accepted accounting
principles.

        CONSOLIDATED EBITDA. For any fiscal period of the Borrower, the
consolidated Earnings Before Interest and Taxes of the Borrower and its
Subsidiaries for such period PLUS, to the extent deducted in the calculation
thereof, and without duplication, the aggregate amount of depreciation and
amortization of

<Page>
                                       -4-

Borrower and its Subsidiaries for such period, determined on a consolidated
basis for such Persons in accordance with Generally Accepted Accounting
Principles.

        CONSOLIDATED NET INCOME (or DEFICIT). The consolidated net income (or
deficit) of the Borrower and its Subsidiaries, after deduction of all expenses,
interest, taxes, and other proper charges, determined in accordance with
generally accepted accounting principles.

        CONSOLIDATED TANGIBLE NET WORTH. The excess of Consolidated Total Assets
over Consolidated Total Liabilities, and less the sum of:

            (a)   the total book value of all assets of the Borrower and its
Subsidiaries properly classified as intangible assets under generally accepted
accounting principles, including such items as lease acquisition costs, deferred
charges, goodwill, the purchase price of acquired assets in excess of the fair
market value thereof, trademarks, trade names, service marks, brand names,
copyrights, patents and licenses, and rights with respect to the foregoing; PLUS

            (b)   all amounts representing any write-up in the book value of any
assets of the Borrower or its Subsidiaries resulting from a revaluation thereof
subsequent to the Balance Sheet Date, excluding adjustments to translate foreign
assets and liabilities for changes in foreign exchange rates made in accordance
with generally accepted accounting principles.

        CONSOLIDATED TOTAL ASSETS. All assets of the Borrower and its
Subsidiaries determined on a consolidated basis in accordance with generally
accepted accounting principles.

        CONSOLIDATED TOTAL INTEREST EXPENSE. For any period, the aggregate
amount of interest required to be paid or accrued by the Borrower and its
Subsidiaries during such period on all Indebtedness of the Borrower and its
Subsidiaries outstanding during all or any part of such period, whether such
interest was or is required to be reflected as an item of expense or
capitalized, including payments consisting of interest in respect of Capitalized
Leases, and including facility fees, commitment fees, usage fees, agency fees,
balance deficiency fees, and similar fees or expenses in connection with the
borrowing of money, as determined in accordance with generally accepted
accounting principles.

        CONSOLIDATED TOTAL LIABILITIES. All liabilities of the Borrower and its
Subsidiaries determined on a consolidated basis in accordance with generally
accepted accounting principles.

        CONTINGENT LIABILITIES. Any guaranties, endorsements, obligations to
reimburse the issuer in respect of any letters of credit, agreements to purchase
or provide funds for the payment of obligations of others, or other liabilities
which would be classified as contingent in accordance with generally accepted
accounting principles consistently applied, excluding, however, (a) product
warranties given in the ordinary course of business, (b) endorsements of checks
or other negotiable instruments for deposit or collection in the ordinary course
of business, and (c) reimbursement obligations in respect of documentary trade
letters of credit.

        CONVERSION REQUEST. A notice given by the Borrower to the Agent of the
Borrower's election to convert or continue a Revolving Credit Loan in accordance
with Section 2.9 hereof.

        CREDIT AGREEMENT. This Revolving Credit Agreement, including the
Schedules and Exhibits hereto.

        DEFAULT. See Section 10.1 hereof.

        DELINQUENT BANK. See Section 12.5.3 hereof.

        DISTRIBUTION. The declaration or payment of any dividend on or in
respect of any shares of any class of Capital Stock of the Borrower, other than
dividends payable solely in shares of common stock of

<Page>
                                       -5-

the Borrower; the purchase, redemption, or other retirement of any shares of any
class of Capital Stock of the Borrower, directly or indirectly through a
Subsidiary of the Borrower or otherwise; the return of capital by the Borrower
to its shareholders as such; or any other distribution on or in respect of any
shares of any class of Capital Stock of the Borrower.

        DOCUMENTATION AGENTS. As defined in the preamble hereto.

        DOLLARS or $. Dollars in lawful currency of the United States of
America.

        DOMESTIC LENDING OFFICE. Initially, the office of each Bank designated
as such in SCHEDULE 1 attached hereto; thereafter, such other office of such
Bank, if any, located within the United States that will be making or
maintaining Base Rate Loans.

        DOMESTIC SUBSIDIARY. Any Subsidiary that is organized under the laws of
the United States of America or any of the States (or the District of Columbia)
thereof.

        DRAWDOWN DATE. The date on which any Revolving Credit Loan is made or is
to be made, and the date on which any Revolving Credit Loan is converted or
continued in accordance with Section 2.9 hereof.

        EARNINGS BEFORE INTEREST AND TAXES. Consolidated earnings (or deficit)
from the operations of the Borrower and its Subsidiaries, after deducting all
expenses and other proper charges other than interest expense and taxes, and
excluding all extraordinary and nonrecurring items of income or loss, as
determined in accordance with generally accepted accounting principles.

        ELIGIBLE ASSIGNEE. Any of (a) a commercial bank or finance company
organized under the laws of the United States, or any State thereof or the
District of Columbia, and having total assets in excess of $1,000,000,000; (b) a
savings and loan association or savings bank organized under the laws of the
United States, or any State thereof or the District of Columbia, and having a
net worth of at least $100,000,000, calculated in accordance with generally
accepted accounting principles; (c) a commercial bank organized under the laws
of any other country which is a member of the Organization for Economic
Cooperation and Development (the "OECD"), or a political subdivision of any such
country, and having total assets in excess of $1,000,000,000, or the central
bank of any country which is a member of the OECD, PROVIDED, in each case, that
such bank (i) is acting through a branch or agency located in the country in
which it is organized or another country which is also a member of the OECD and
(ii) has delivered to the Agent, on the date on which the Assignment and
Acceptance to which such Eligible Assignee is a party becomes effective, the
forms referred to in Section 3.3.3 hereof; and (d) if, but only if, any Event of
Default has occurred and is continuing, any other bank, insurance company,
commercial finance company or other financial institution or other Person
approved by the Agent, such approval not to be unreasonably withheld.

        EMPLOYEE BENEFIT PLAN. Any employee benefit plan within the meaning of
Section 3(3) of ERISA maintained or contributed to by the Borrower or any ERISA
Affiliate, other than a Multiemployer Plan.

        ENVIRONMENTAL LAWS. Any judgment, decree, order, law, license, rule or
regulation pertaining to environmental matters, including without limitation,
those arising under the Resource Conservation and Recovery Act ("RCRA"), CERCLA,
the Superfund Amendments and Reauthorization Act of 1986 ("SARA"), the Federal
Clean Water Act, the Federal Clean Air Act, the Toxic Substances Control Act, or
any state or local statute, regulation, ordinance, order or decree relating to
health, safety or the environment.

        ENVIRONMENTAL NOTICE. Any notice to the Borrower or any of its
Subsidiaries from any third party including, without limitation: any federal,
state or local governmental authority, (a) that it has been identified by the
United States Environmental Protection Agency as a potentially responsible party
under CERCLA with respect to a site listed on the National Priorities List, 40
C.F.R. Part 300 Appendix B; (b) that any Hazardous Substances which it has
generated, transported or disposed of has been found at any site at which a
federal, state or local agency or other third party has conducted or has ordered
that the Borrower

<Page>
                                       -6-

or any of its Subsidiaries conduct a remedial investigation, removal or other
response action pursuant to any Environmental Law; or (c) that it is or shall be
a named party to any claim, action, cause of action, complaint, or legal or
administrative proceeding in connection with the release of Hazardous
Substances.

        ERISA. The Employee Retirement Income Security Act of 1974.

        ERISA AFFILIATE. Any Person which is treated as a single employer with
the Borrower under Section 414 of the Code.

        ERISA REPORTABLE EVENT. A reportable event with respect to a Guaranteed
Pension Plan within the meaning of Section 4043 of ERISA and the regulations
promulgated thereunder as to which the requirement of notice has not been
waived.

        EUROCURRENCY RESERVE RATE. For any day with respect to a Eurodollar Rate
Loan, the maximum rate (expressed as a decimal) at which any lender subject
thereto would be required to maintain reserves under Regulation D of the Board
of Governors of the Federal Reserve System (or any successor or similar
regulations relating to such reserve requirements) against "EUROCURRENCY
LIABILITIES" (as that term is used in Regulation D), if such liabilities were
outstanding. The Eurocurrency Reserve Rate shall be adjusted automatically on
and as of the effective date of any change in the Eurocurrency Reserve Rate.

        EURODOLLAR BUSINESS DAY. Any day on which commercial banks are open for
international business (including dealings in Dollar deposits) in London or such
other interbank market as may be selected by the Agent in its sole discretion
acting in good faith.

        EURODOLLAR LENDING OFFICE. Initially, the office of each Bank designated
as such in SCHEDULE 1 attached hereto; thereafter, such other office of such
Bank, if any, that shall be making or maintaining Eurodollar Rate Loans.

        EURODOLLAR RATE. For any Interest Period with respect to a Eurodollar
Rate Loan, the rate of interest equal to (a) the rate (rounded upwards to the
nearest 1/16 of one percent) per annum at which the Reference Bank's Eurodollar
Lending Office is offered Dollar deposits two (2) Eurodollar Business Days prior
to the beginning of such Interest Period in the interbank eurodollar market
where the eurodollar and foreign currency and exchange operations of such
Eurodollar Lending Office are customarily conducted, for delivery on the first
day of such Interest Period for the number of days comprised therein and in an
amount comparable to the amount of the Eurodollar Rate Loan to which such
Interest Period applies, divided by (b) a number equal to 1.00 MINUS the
Eurocurrency Reserve Rate.

        EURODOLLAR RATE LOANS. Any Revolving Credit Loans bearing interest
calculated by reference to the Eurodollar Rate.

        EVENT OF DEFAULT. See Section 10.1 hereof.

        FACILITY FEE. See Section 3.2 hereof.

        FEE LETTER. See Section 3.1 hereof.

        FIXED CHARGE COVERAGE RATIO. See Section 7.1 hereof.

        FLEET. Fleet National Bank, a national banking association, in its
individual capacity.

        GENERALLY ACCEPTED ACCOUNTING PRINCIPLES or GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES. (a) When used in Section 7 hereof, whether directly or
indirectly through reference to a capitalized term used therein, means (i)
principles that are consistent with the principles promulgated or adopted by the
Financial Accounting Standards Board and its predecessors, in effect for the
fiscal year ended on the Balance Sheet Date, and (ii) to the extent consistent
with such principles, the accounting practice of the Borrower reflected in its

<Page>
                                       -7-

financial statements for the year ended on the Balance Sheet Date, and (b) when
used in general, other than as provided above, means principles that are (i)
consistent with the principles promulgated or adopted by the Financial
Accounting Standards Board and its predecessors, as in effect from time to time,
and (ii) consistently applied with past financial statements of the Borrower
adopting the same principles, provided that in each case referred to in this
definition of "GENERALLY ACCEPTED ACCOUNTING PRINCIPLES" a certified public
accountant would, insofar as the use of such accounting principles is pertinent,
be in a position to deliver an unqualified opinion (other than a qualification
regarding changes in generally accepted accounting principles) as to financial
statements in which such principles have been properly applied.

        GUARANTEED PENSION PLAN. Any employee pension benefit plan within the
meaning of Section 3(2) of ERISA maintained or contributed to by the Borrower or
any ERISA Affiliate the benefits of which are guaranteed on termination in full
or in part by the PBGC pursuant to Title IV of ERISA, other than a Multiemployer
Plan.

        GUARANTIES. The Guaranty by each Guarantor in favor of the Agent for the
benefit of the Banks, dated as of the date hereof, and each additional guaranty
executed by a Subsidiary acquired or formed after the date hereof.

        GUARANTORS. Those Subsidiaries of the Borrower listed on SCHEDULE 2
attached hereto, as such schedule may be modified from time to time in
accordance with Section 3.13 hereof.

        HAZARDOUS SUBSTANCES. Any hazardous waste, as defined by 42 U.S.C.
Section 6903(5), any hazardous substances as defined by 42 U.S.C. Section
9601(14), any pollutant or contaminant as defined by 42 U.S.C.ss.9601(33) and
any toxic substances, oil or hazardous materials or other chemicals or
substances regulated by any Environmental Laws.

        INDEBTEDNESS. All obligations, contingent and otherwise, that in
accordance with generally accepted accounting principles should be classified
upon the obligor's balance sheet as liabilities, or to which reference should be
made by footnotes thereto, including in any event and whether or not so
classified: (a) all debt and similar monetary obligations, whether direct or
indirect; (b) all liabilities secured by any mortgage, pledge, security
interest, lien, charge or other encumbrance existing on property owned or
acquired subject thereto, whether or not the liability secured thereby shall
have been assumed; (c) all obligations in respect of interest rate protection
arrangements and exchange rate protection arrangements; and (d) all guarantees,
endorsements and other contingent obligations whether direct or indirect in
respect of indebtedness of others, including any obligation to supply funds to
or in any manner to invest in, directly or indirectly, the debtor, to purchase
indebtedness, or to assure the owner of indebtedness against loss, through an
agreement to purchase goods, supplies, or services for the purpose of enabling
the debtor to make payment of the indebtedness held by such owner or otherwise,
and the obligations to reimburse the issuer in respect of any letters of credit.

        INELIGIBLE SECURITIES. Securities which may not be underwritten or dealt
in by member banks of the Federal Reserve System under Section 16 of the Bank
Act of 1993 (12 U.S.C. Section 24, Seventh), as amended.

        INTEREST PAYMENT DATE. (a) As to any Base Rate Loan, the last day of the
calendar quarter which includes the Drawdown Date thereof; and (b) as to any
Eurodollar Rate Loan in respect of which the Interest Period is (i) 3 months or
less, the last day of such Interest Period and (ii) more than 3 months, the date
that is 3 months from the first day of such Interest Period, the last day of
each 3 month period thereafter, and, in addition, the last day of such Interest
Period.

        INTEREST PERIOD. With respect to each Revolving Credit Loan (a)
initially, the period commencing on the Drawdown Date of such Revolving Credit
Loan and ending on the last day of one of the periods set forth below, as
selected by the Borrower in a Loan Request (i) for any Base Rate Loan, the last
day of the calendar quarter; and (ii) for any Eurodollar Rate Loan, 1, 2, 3 or 6
months; and (b) thereafter, each period commencing on the last day of the next
preceding Interest Period applicable to such Revolving Credit Loan

<Page>
                                       -8-

and ending on the last day of one of the periods set forth above, as selected by
the Borrower in a Conversion Request; PROVIDED that all of the foregoing
provisions relating to Interest Periods are subject to the following:

            (A)   if any Interest Period with respect to a Eurodollar Rate
        Loan would otherwise end on a day that is not a Eurodollar Business Day,
        that Interest Period shall be extended to the next succeeding Eurodollar
        Business Day unless the result of such extension would be to carry such
        Interest Period into another calendar month, in which event such
        Interest Period shall end on the immediately preceding Eurodollar
        Business Day;

            (B)   if any Interest Period with respect to a Base Rate Loan would
        end on a day that is not a Business Day, that Interest Period shall end
        on the next succeeding Business Day;

            (C)   if the Borrower shall fail to give notice as provided in
        Section 2.9 hereof, the Borrower shall be deemed to have requested a
        conversion of the affected Eurodollar Rate Loan to a Base Rate Loan and
        the continuance of all Base Rate Loans as Base Rate Loans on the last
        day of the then current Interest Period with respect thereto;

            (D)   any Interest Period relating to any Eurodollar Rate Loan that
        begins on the last Eurodollar Business Day of a calendar month (or on a
        day for which there is no numerically corresponding day in the calendar
        month at the end of such Interest Period) shall end on the last
        Eurodollar Business Day of a calendar month; and

            (E)   any Interest Period relating to any Revolving Credit Loan that
        would otherwise extend beyond the Maturity Date shall end on the
        Maturity Date.

        INVESTMENTS. All expenditures made and all liabilities incurred
(contingently or otherwise) for the acquisition of stock or Indebtedness of, or
for loans, advances, capital contributions or transfers of property to, or in
respect of any guaranties (or other commitments as described under
Indebtedness), or obligations of, any Person. In determining the aggregate
amount of Investments outstanding at any particular time: (a) the amount of any
Investment represented by a guaranty shall be taken at not less than the
principal amount of the obligations guaranteed and still outstanding; (b) there
shall be included as an Investment all interest accrued with respect to
Indebtedness constituting an Investment unless and until such interest is paid;
(c) there shall be deducted in respect of each such Investment any amount
received as a return of capital (but only by repurchase, redemption, retirement,
repayment, liquidating dividend or liquidating distribution); (d) there shall
not be deducted in respect of any Investment any amounts received as earnings on
such Investment, whether as dividends, interest or otherwise, except that
accrued interest included as provided in the foregoing clause (b) may be
deducted when paid; and (e) there shall not be deducted from the aggregate
amount of Investments any decrease in the value thereof.

        LOAN DOCUMENTS. This Credit Agreement, the Revolving Credit Notes, the
Guaranties, the Fee Letter and any other documents delivered pursuant to this
Credit Agreement.

        LOAN REQUEST. See Section 2.2 hereof.

        MAJORITY BANKS. As of any date, except as otherwise provided below, the
Banks holding at least fifty-one percent (51%) of the outstanding principal
amount of the Revolving Credit Notes on such date; and if no such principal is
outstanding, the Banks whose aggregate Commitment Amounts constitute at least
fifty-one percent (51%) of the Total Commitment.

        MARGIN REGULATIONS. See Section 4.13 hereof.

        MATURITY DATE. June 24, 2002.

        MEASUREMENT PERIOD. See Section 7.1 hereof.

<Page>
                                       -9-

        MOODY'S. Moody's Investors Service, Inc.

        MULTIEMPLOYER PLAN. Any multiemployer plan within the meaning of Section
3(37) of ERISA maintained or contributed to by the Borrower or any ERISA
Affiliate.

        OBLIGATIONS. All indebtedness, obligations and liabilities of any of the
Borrower and its Subsidiaries to any of the Banks and the Agent, individually or
collectively, existing on the date of this Credit Agreement or arising
thereafter, direct or indirect, joint or several, absolute or contingent,
matured or unmatured, liquidated or unliquidated, secured or unsecured, arising
by contract, operation of law or otherwise, arising or incurred under this
Credit Agreement or any of the other Loan Documents or in respect of any of the
Revolving Credit Loans made, or any of the Revolving Credit Notes or other
instruments at any time evidencing any thereof.

        OPTION LOANS. See Section 6.3 hereof.

        OUTSTANDING or OUTSTANDING. With respect to the Revolving Credit Loans,
the aggregate unpaid principal thereof as of any date of determination.

        PBGC. The Pension Benefit Guaranty Corporation created by Section 4002
of ERISA and any successor entity or entities having similar responsibilities.

        PERMITTED LIENS. Liens, security interests and other encumbrances
permitted under Section 6.2 hereof.

        PERSON. Any individual, corporation, partnership, trust, unincorporated
association, business, or other legal entity, and any government or any
governmental agency or political subdivision thereof.

        PRIME RATE. The higher of (a) the annual rate of interest announced from
time to time by Fleet at its office in Boston, Massachusetts, as its "prime
rate" and (b) one-half of one percent (1/2%) per annum above the Federal Funds
Effective Rate. For the purposes of this definition, "FEDERAL FUNDS EFFECTIVE
RATE" shall mean for any day, the rate per annum equal 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 that is a Business Day, the average of the quotations for such day on such
transactions received by the Agent from three funds brokers of recognized
standing selected by the Agent.

        RATE ADJUSTMENT PERIOD. See definition of Applicable Margin.

        REAL ESTATE. All real property at any time owned or leased (as lessee or
sublessee) by the Borrower or any of its Subsidiaries.

        RECORD. The grid attached to a Revolving Credit Note, or the
continuation of such grid, or any other similar record, including computer
records, maintained by any Bank with respect to any Revolving Credit Loan
referred to in such Revolving Credit Note.

        REFERENCE BANK. Fleet.

        RENTAL EXPENSE. All obligations of the Borrower or any of its
Subsidiaries under any rental agreements or leases of real property, other than
(a) obligations that can be terminated by the giving of notice without liability
to the Borrower or such Subsidiary in excess of the liability for rent due as of
the date on which such notice is given and under which no penalty or premium is
paid as a result of any such termination, and (b) obligations in respect of
Capitalized Leases.

        REPLACEMENT BANK. See Section 3.12 hereof.

<Page>
                                      -10-

        REVOLVER PERIOD. The period beginning on the Closing Date to and
including the day immediately preceding the Maturity Date.

        REVOLVING CREDIT LOANS. One or more revolving credit loans funded by the
Banks in accordance with their respective Commitment Percentages.

        REVOLVING CREDIT NOTE. See Section 2.4 hereof.

        S&P. Standard & Poor's Ratings Group, a division of McGraw-Hill, Inc.

        SECURITIZATION. The securitization by the Borrower and certain of its
Subsidiaries of up to $200,000,000 of third-party accounts receivable on the
terms and conditions set forth in the (a) Receivables Purchase Agreement, dated
as of October 27, 2000, among the Borrower, Lincolnshire Funding, LLC, Corporate
Receivables Corporation, the financial institutions from time to time party
thereto as Purchasers, and Citicorp North America, Inc., as Agent, and (b)
Receivables Sale Agreement, dated as of October 27, 2000, among the Borrower,
Quill Corporation, Staples Contract & Commercial, Inc. and Hackensack Funding,
LLC, each as delivered to the Agent prior to the Closing Date and as in effect
on the Closing Date, and in each case as amended with the consent of the Banks,
and any replacement or successor accounts receivable financing facility which
contains terms and conditions which are reasonably satisfactory to the Banks.

        SECTION 20 SUBSIDIARY. A Subsidiary of the bank holding company
controlling any Bank, which Subsidiary has been granted authority by the Federal
Reserve Board to underwrite and deal in certain Ineligible Securities.

        SENIOR DEBT RATING. The rating issued by S&P or Moody's with respect to
unsecured Indebtedness of the Borrower not maturing within twelve months, issued
without third-party credit enhancement, and not subordinated by its term in
right of payment to other Indebtedness of the Borrower. In the event that no
such ratings are available on such unsecured Indebtedness of the Borrower, the
Senior Debt Rating shall be the rating implied, in the reasonable discretion of
the Agent, to such unsecured Indebtedness by reference to the Subordinated
Debentures or such other Indebtedness of the Borrower as shall be so rated.

        STOCKHOLDERS' EQUITY. As at any date of determination, the sum of (a)
the capital accounts including common stock and preferred stock, but excluding
treasury stock of the Borrower PLUS (b) the earned surplus and capital surplus
of the Borrower (excluding adjustments to translate foreign assets and
liabilities for changes in foreign exchange rates made in accordance with
Financial Accounting Standards Board Statement No. 52), as determined in
accordance with generally accepted accounting principles.

        SUBORDINATED DEBT. Unsecured Indebtedness of the Borrower or any of its
Subsidiaries that is expressly subordinated and made junior to the payment and
performance of the Obligations, and evidenced as such by a written instrument
containing subordination provisions in form and substance approved by the
Majority Banks in writing.

        SUBSIDIARY. Any corporation, association, trust, or other business
entity of which the designated parent shall at any time own directly or
indirectly through a Subsidiary or Subsidiaries at least a majority (by number
of votes) of the outstanding Voting Stock and the accounts of which are
consolidated with the Borrower in accordance with Generally Accepted Accounting
Principles.

        SUBSTITUTED BANK. See Section 3.12 hereof.

        TOTAL COMMITMENT. The sum of the Commitment Amounts of the Banks, as in
effect from time to time. The Total Commitment as of the Closing Date is
$200,000,000.

<Page>
                                      -11-

        TOTAL FUNDED INDEBTEDNESS. As at any date of determination, on a
consolidated basis, the aggregate (without duplication) of (a) all outstanding
Indebtedness of the Borrower and its Subsidiaries relating to the borrowing of
money or the obtaining of credit (including, without limitation, standby letters
of credit), plus (b) all obligations of the Borrower and its Subsidiaries as
lessees under Capitalized Leases.

        TYPE. As to any Revolving Credit Loan, its nature as a Base Rate Loan or
a Eurodollar Rate Loan.

        VOTING STOCK. Stock or similar interests, of any class or classes
(however designated), the holders of which are at the time entitled, as such
holders, to vote for the election of a majority of the directors (or persons
performing similar functions) of the corporation, association, trust or other
business entity involved, whether or not the right so to vote exists by reason
of the happening of a contingency.

        Section 1.2. RULES OF INTERPRETATION.

                     (a) A reference to any document or agreement shall include
such document or agreement as amended, modified or supplemented from time to
time in accordance with its terms and the terms of this Credit Agreement.

                     (b) The singular includes the plural and the plural
includes the singular.

                     (c) A reference to any law includes any amendment or
 modification to such law.

                     (d) A reference to any Person includes its permitted
 successors and permitted assigns.

                     (e) Accounting terms not otherwise defined herein have the
meanings assigned to them by generally accepted accounting principles applied on
a consistent basis by the accounting entity to which they refer.

                     (f) The words "INCLUDE", "INCLUDES" and "INCLUDING" are not
 limiting.

                     (g) All terms not specifically defined herein or by
generally accepted accounting principles, which terms are defined in the Uniform
Commercial Code as in effect in the Commonwealth of Massachusetts, have the
meanings assigned to them therein.

                     (h) Reference to a particular "Section" refers to that
section of this Credit Agreement unless otherwise indicated.

                     (i) The words "HEREIN", "HEREOF", "HEREUNDER" and words of
like import shall refer to this Credit Agreement as a whole and not to any
particular section or subdivision of this Credit Agreement.

                    Section 2. THE REVOLVING CREDIT FACILITY.

        Section 2.1. COMMITMENT TO LEND REVOLVING CREDIT LOANS. Subject to the
terms and conditions set forth in this Credit Agreement, each of the Banks
severally agrees from time to time during the Revolver Period to make Revolving
Credit Loans to the Borrower in such amounts as are requested by the Borrower,
PROVIDED, that the sum of the aggregate principal amount of Revolving Credit
Loans made by each Bank (after giving effect to all amounts requested) shall not
at any time exceed such Bank's Commitment Amount, and PROVIDED, FURTHER, that
(i) at no time shall the outstanding aggregate principal amount of all Revolving
Credit Loans made by all Banks exceed the Total Commitment, and (ii) at all
times the outstanding aggregate principal amount of all Revolving Credit Loans
made by each Bank shall equal such Bank's Commitment Percentage of the
outstanding aggregate principal amount of all Revolving Credit Loans made
pursuant to the terms of this Credit Agreement. Subject to the terms and
conditions set forth in

<Page>
                                      -12-

this Credit Agreement, the Borrower may borrow, repay and reborrow Revolving
Credit Loans from time to time during the Revolver Period upon notice by the
Borrower to the Agent given in accordance with Section 2.2 hereof. Each request
for a Revolving Credit Loan hereunder shall constitute a representation and
warranty by the Borrower that the conditions set forth in Section 8 and 9
hereof, in the case of the initial Revolving Credit Loans to be made on the
Closing Date, and Section 9 hereof, in the case of all other Revolving Credit
Loans, shall have been satisfied on the date of such request.

        Section 2.2. REQUESTS FOR REVOLVING CREDIT LOANS. The Borrower shall
give to the Agent written notice in the form of EXHIBIT A attached hereto (or
telephonic notice confirmed in a writing in the form of EXHIBIT A attached
hereto) of each Revolving Credit Loan requested hereunder (a "LOAN REQUEST") not
later than (a) 12:00 noon (Boston time) on the proposed Drawdown Date of any
Base Rate Loan and (b) 12:00 noon (Boston time) three (3) Eurodollar Business
Days prior to the proposed Drawdown Date of any Eurodollar Rate Loan. Each such
notice shall specify (i) the principal amount of the Revolving Credit Loan
requested, (ii) the proposed Drawdown Date of such Revolving Credit Loan, (iii)
the Interest Period for such Revolving Credit Loan and (iv) the Type of such
Revolving Credit Loan. Promptly upon receipt of any such notice, the Agent shall
notify each of the Banks thereof. Each Loan Request shall be irrevocable and
binding on the Borrower and shall obligate the Borrower to accept the Revolving
Credit Loan requested from the Banks on the proposed Drawdown Date. Each Loan
Request shall be (A) in a minimum aggregate amount of $1,000,000 or an integral
multiple thereof with respect to Base Rate Loans and (B) in a minimum aggregate
amount of $2,000,000 or an integral multiple of $l,000,000 with respect to
Eurodollar Rate Loans.

        Section 2.3. FUNDS FOR REVOLVING CREDIT LOANS.

                  Section 2.3.1. FUNDING PROCEDURES. Not later than 1:30 p.m.
(Boston time) on the proposed Drawdown Date of any Revolving Credit Loans, each
of the relevant Banks will make available to the Agent, at the Agent's Head
Office, in immediately available funds, the amount of such Bank's Commitment
Percentage of the amount of the requested Revolving Credit Loans. Upon receipt
from each Bank of such amount, and upon receipt of the documents required by
Sections 8 and 9 hereof and the satisfaction of the other conditions set forth
therein, to the extent applicable, the Agent will make available to the Borrower
the aggregate amount of such Revolving Credit Loans made available to the Agent
by the relevant Banks. The failure or refusal of any Bank to make available to
the Agent its Commitment Percentage of the requested Revolving Credit Loans on
any Drawdown Date shall not excuse any other Bank from making available to the
Agent the amount of such other Bank's Commitment Percentage of any requested
Revolving Credit Loans.

                  Section 2.3.2. ADVANCES BY AGENT. The Agent may, unless
notified to the contrary by any Bank prior to a Drawdown Date, assume that such
Bank has made available to the Agent on such Drawdown Date the amount of such
Bank's Commitment Percentage of the Revolving Credit Loans to be made on such
Drawdown Date, and the Agent may (but it shall not be required to), in reliance
upon such assumption, make available to the Borrower a corresponding amount. If
any Bank makes available to the Agent such amount on a date after such Drawdown
Date, such Bank shall pay to the Agent on demand an amount equal to the product
of (a) the average computed for the period referred to in clause (c) below, of
the weighted average interest rate paid by the Agent for federal funds acquired
by the Agent during each day included in such period, TIMES (b) the amount of
such Bank's Commitment Percentage of such Revolving Credit Loans, TIMES (c) a
fraction, the numerator of which is the number of days that elapse from and
including such Drawdown Date to the date on which the amount of such Bank's
Revolving Credit Loans shall become immediately available to the Agent, and the
denominator of which is 365. A statement of the Agent submitted to such Bank
with respect to any amounts owing under this Section 2.3.2 shall be PRIMA FACIE
evidence of the amount due and owing to the Agent by such Bank. If the amount of
such Bank's Revolving Credit Loans is not made available to the Agent by such
Bank within three (3) Business Days following such Drawdown Date, the Agent
shall be entitled to recover such amount from the Borrower on demand, with
interest thereon at the rate per annum applicable to the Revolving Credit Loans
made on such Drawdown Date and the Borrower may take the actions permitted under
Section 3.12 hereof to replace such Bank. Any payment by the Borrower to the
Agent of any Revolving Credit Loans pursuant to this Section 2.3.2 shall be

<Page>
                                      -13-

deemed to be a payment of the Loans that were to be made by the Bank that failed
to make such Revolving Credit Loans.

        Section 2.4. THE REVOLVING CREDIT NOTES. The Revolving Credit Loans
shall be evidenced by separate promissory notes of the Borrower in substantially
the form of EXHIBIT B attached hereto (each a "REVOLVING CREDIT NOTE"), dated as
of the Closing Date and completed with appropriate insertions. A Revolving
Credit Note shall be payable to the order of each Bank in a principal amount
equal to such Bank's Commitment Amount or, if less, the outstanding amount of
all Revolving Credit Loans made by such Bank, PLUS interest accrued thereon, as
set forth below. The Borrower irrevocably authorizes each Bank to make, at or
about the time of the Drawdown Date of any Revolving Credit Loan or at the time
of receipt of any payment of principal on such Bank's Revolving Credit Note, an
appropriate notation on the Record attached to such Bank's Revolving Credit Note
reflecting the making of such Revolving Credit Loan or (as the case may be) the
receipt of such payment. The outstanding amount of the Revolving Credit Loans
set forth on such Bank's Record shall be PRIMA FACIE evidence of the principal
amount thereof owing and unpaid to such Bank, but the failure to record, or any
error in so recording, any such amount on such Bank's Record shall not limit or
otherwise affect the obligations of the Borrower hereunder or under any
Revolving Credit Note to make payments of principal of or interest on any
Revolving Credit Note when due.

        Section 2.5. REDUCTION OF TOTAL COMMITMENT. The Borrower shall have the
right at any time and from time to time prior to the Maturity Date upon three
(3) Business Days' prior written notice to the Agent to reduce by $5,000,000 or
an integral multiple thereof or terminate entirely the Total Commitment,
whereupon the Commitment Amount of each Bank shall be reduced PRO RATA in
accordance with its Commitment Percentage by the amount specified in such notice
or, as the case may be, terminated. Promptly after receiving any notice of the
Borrower delivered pursuant to this Section 2.5, the Agent will notify the Banks
of the substance thereof. Upon the effective date of any such reduction or
termination, the Borrower shall pay to the Agent for the respective accounts of
the Banks the full amount of the Facility Fee then accrued on the amount of the
reduction. No reduction or termination of the Total Commitment may be
reinstated.

        Section 2.6. MANDATORY REPAYMENTS OF REVOLVING CREDIT LOANS. If at any
time the outstanding aggregate principal amount of the Revolving Credit Loans
exceeds the Total Commitment, then the Borrower shall immediately pay the amount
of such excess to the Agent for application to the Revolving Credit Loans for
the respective accounts of the Banks. Each prepayment of Revolving Credit Loans
shall be allocated among the Banks, in proportion, as nearly as practicable to
the respective unpaid principal amount of each Bank's Revolving Credit Note,
with adjustments to the extent practicable to equalize any prior payments or
repayments not exactly in proportion.

        Section 2.7. OPTIONAL REPAYMENTS OF REVOLVING CREDIT LOANS. The Borrower
shall have the right, at its election, to repay the outstanding amount of the
Revolving Credit Loans, as a whole or in part, at any time without penalty or
premium, PROVIDED that any full or partial repayment of the outstanding amount
of any Eurodollar Rate Loans pursuant to this Section 2.7 may be made only on
the last day of the Interest Period relating thereto unless the Borrower pays
each Bank, in accordance with Section 3.10, the costs and expenses incurred by
such Bank as a result of the repayment of such Eurodollar Rate Loan on a day
other than the last day of the Interest Period relating thereto. The Borrower
shall give the Agent, prior written notice no later than 10:00 a. m., Boston
time, on the date of any proposed repayment pursuant to this Section 2.7 of Base
Rate Loans, and three (3) Eurodollar Business Days' notice of any proposed
repayment pursuant to this Section 2.7 of Eurodollar Rate Loans, in each case
specifying the proposed date of repayment of such Revolving Credit Loans and,
the principal amount to be repaid. Each such partial repayment of the Revolving
Credit Loans shall be in an integral multiple of $5,000,000, shall be
accompanied by the payment of accrued interest on the principal repaid to the
date of repayment and shall be applied, in the absence of instruction by the
Borrower, first to the principal of Base Rate Loans and then to the principal of
Eurodollar Rate Loans. Each partial repayment shall be allocated among the
Banks, in proportion, as nearly as practicable, to the respective unpaid
principal amount of each Bank's applicable Revolving Credit Note being repaid,
with adjustments to the extent practicable to equalize any prior repayments not
exactly in proportion.

<Page>
                                      -14-

        Section 2.8. INTEREST ON REVOLVING CREDIT LOANS. (a) During the Revolver
Period, except as otherwise provided in Section 3.11 hereof,

                     (i) each Base Rate Loan shall bear interest for the period
commencing with the Drawdown Date thereof and ending on the last day of the
Interest Period with respect thereto at the rate per annum equal to the Base
Rate, PROVIDED THAT for any day on which the outstanding principal amount of
Revolving Credit Loans exceeds an amount equal to thirty-three percent (33%) of
the Total Commitment, each Base Rate Loan shall bear interest at the rate per
annum equal to the Base Rate PLUS one hundred twenty-five thousandths of one
percent (0.125%); and

                     (ii) each Eurodollar Rate Loan shall bear interest for the
period commencing with the Drawdown Date thereof and ending on the last day of
the Interest Period with respect thereto at the rate per annum equal to the
Eurodollar Rate determined for such Interest Period PLUS the Applicable Margin;
and

        (b) The Borrower promises to pay interest on each Revolving Credit Loan
in arrears on each Interest Payment Date applicable with respect thereto.

        Section 2.9. CONVERSION OPTIONS.

                  Section 2.9.1. CONVERSION TO DIFFERENT TYPE OF REVOLVING
CREDIT LOAN. The Borrower may elect from time to time to convert any outstanding
Revolving Credit Loan to a Revolving Credit Loan of another Type, PROVIDED that
(a) with respect to any such conversion of a Eurodollar Rate Loan to a Base Rate
Loan, the Borrower shall give the Agent at least one (1) Business Day's prior
written notice of such election; (b) with respect to any such conversion of a
Base Rate Loan to a Eurodollar Rate Loan, the Borrower shall give the Agent at
least three (3) Eurodollar Business Days' prior written notice of such election;
(c) with respect to any such conversion of a Eurodollar Rate Loan into a Base
Rate Loan, such conversion shall only be made on the last day of the Interest
Period with respect thereto; and (d) no Base Rate Loan may be converted into a
Eurodollar Rate Loan when any Default or Event of Default has occurred and is
continuing. On the date on which such conversion is being made each Bank shall
take such action as is necessary to transfer its Commitment Percentage of such
Revolving Credit Loans to its Domestic Lending Office or its Eurodollar Lending
Office, as the case may be. All or any part of outstanding Revolving Credit
Loans of any Type may be converted into a Revolving Credit Loan of another Type
as provided herein, PROVIDED that any partial conversion shall be in an
aggregate principal amount of $2,000,000 or a whole multiple of $1,000,000 in
excess thereof. Each Conversion Request relating to the conversion of a
Revolving Credit Loan to a Eurodollar Rate Loan shall be irrevocable by the
Borrower.

                  Section 2.9.2. CONTINUATION OF TYPE OF REVOLVING CREDIT LOAN.
Any Revolving Credit Loan of any Type may be continued as a Revolving Credit
Loan of the same Type upon the expiration of an Interest Period with respect
thereto by compliance by the Borrower with the notice provisions contained in
Section 2.9.1 hereof; PROVIDED that no Eurodollar Rate Loan may be continued as
such when any Default or Event of Default has occurred and is continuing, but
shall be automatically converted to a Base Rate Loan on the last day of the
first Interest Period relating thereto ending during the continuance of any
Default or Event of Default of which officers of the Agent active upon the
Borrower's account have actual knowledge. The Agent shall notify the Banks and
the Borrower promptly when any such automatic conversion contemplated by this
Section 2.9.2 is scheduled to occur.

                  Section 2.9.3. EURODOLLAR RATE LOANS. Any conversion to or
from Eurodollar Rate Loans shall be in such amounts and be made pursuant to such
elections so that, after giving effect thereto, the aggregate principal amount
of all Eurodollar Rate Loans having the same Interest Period shall not be less
than $2,000,000 or a whole multiple of $1,000,000 in excess thereof.

<Page>
                                      -15-

                  Section 3. CERTAIN GENERAL PROVISIONS; FEES.

        Section 3.1. AGENT FEES. The Borrower shall pay the fees (the "AGENT
FEES") to the Agent and the Arranger in the amounts and at the times set forth
in that certain letter agreement, dated as of April 24, 2001 (as such agreement
may be amended and in effect from time to time, the "FEE LETTER"), by and among
the Borrower, the Agent and the Arranger.

        Section 3.2. FACILITY FEE. During the Revolver Period, the Borrower
agrees to pay to the Agent for the accounts of the Banks in accordance with
their respective Commitment Percentages (except to the extent otherwise provided
below) a facility fee (the "FACILITY FEE"), which shall be calculated for each
day at a per annum rate as set forth in the definition of Applicable Margin with
respect to the Facility Fee in effect at such time on the Total Commitment. The
Facility Fee shall be payable quarterly in arrears on the last day of each
calendar quarter for the calendar quarter then ended commencing on the first
such date following the Closing Date, with a final payment on the Maturity Date
or any earlier date on which the Total Commitment shall terminate.

        Section 3.3. FUNDS FOR PAYMENTS.

                  Section 3.3.1. PAYMENTS TO AGENT. All payments of principal,
interest, Facility Fees and any other amounts due hereunder or under any of the
other Loan Documents shall be made to the Agent, for the respective accounts of
the Banks and the Agent, at the Agent's Head Office or at such other location in
the Boston, Massachusetts, area that the Agent may from time to time designate,
in each case in immediately available funds.

                  Section 3.3.2. NO OFFSET, ETC. All payments by the Borrower
hereunder and under any of the other Loan Documents shall be made without setoff
or counterclaim and free and clear of and without deduction for any taxes,
levies, imposts, duties, charges, fees, deductions, withholdings, compulsory
loans, restrictions or conditions of any nature now or hereafter imposed or
levied by any jurisdiction or any political subdivision thereof or taxing or
other authority therein unless the Borrower is compelled by law to make such
deduction or withholding. If any such obligation is imposed upon the Borrower
with respect to any amount payable by it hereunder or under any of the other
Loan Documents, other than (a) with respect to taxes based upon the Agent's or
any Bank's net income, or (b) with respect to amounts owing to a Bank that (i)
is not incorporated under the laws of the United States of America or a state
thereof and (ii) has not delivered to the Agent the forms referred to in
Section 3.3.3 hereof, the Borrower will pay to the Agent, for the account of the
Banks or (as the case may be) the Agent, on the date on which such amount is due
and payable hereunder or under such other Loan Document, such additional amount
in Dollars as shall be necessary to enable the Banks or the Agent to receive the
same net amount which the Banks or the Agent would have received on such due
date had no such obligation been imposed upon the Borrower. The Borrower will
deliver promptly to the Agent certificates or other valid vouchers for all taxes
or other charges deducted from or paid with respect to payments made by the
Borrower hereunder or under such other Loan Document.

                  Section 3.3.3. WITHHOLDING. Each Bank that is a party to this
Credit Agreement and that is not incorporated under the laws of the United
States of America or a state thereof agrees that it will deliver to the Agent,
within seven (7) Business Days of the Closing Date, or, in the case of a Bank
which becomes a Bank pursuant to an Assignment and Acceptance, on the date which
such Assignment and Acceptance becomes effective, a copy of United States
Internal Revenue Service form 1001 or 4224 (or other applicable form prescribed
by the United States Internal Revenue Service), in each case certifying that
such Bank is entitled to receive payments under this Credit Agreement and the
Revolving Credit Notes without deduction or withholding of any United States
federal income taxes.

        Section 3.4. COMPUTATIONS. All computations of interest on Base Rate
Loans shall be based on a 365-day or 366-day year, as applicable, and all
computations of interest on Eurodollar Rate Loans and of Facility Fees and other
fees shall be based on a 360-day year, and, in each case, paid for the actual
number of days elapsed. Except as otherwise provided in the definition of the
term "INTEREST PERIOD" with respect to Eurodollar Rate Loans, whenever a payment
hereunder or under any of the other Loan Documents becomes

<Page>
                                      -16-

due on a day that is not a Business Day, the due date for such payment shall be
extended to the next succeeding Business Day, and interest shall accrue during
such extension.

        Section 3.5. INABILITY TO DETERMINE EURODOLLAR RATE. In the event, prior
to the commencement of any Interest Period relating to any Eurodollar Rate Loan,
the Agent shall determine or be notified by the Majority Banks that adequate and
reasonable methods do not exist for ascertaining the Eurodollar Rate that would
otherwise determine the rate of interest to be applicable to any Eurodollar Rate
Loan during any Interest Period, the Agent shall forthwith give notice of such
determination (which shall be conclusive and binding on the Borrower and the
Banks) to the Borrower and the Banks. In such event (a) any Loan Request or
Conversion Request with respect to Eurodollar Rate Loans shall be automatically
withdrawn and shall be deemed a request for Base Rate Loans, (b) each Eurodollar
Rate Loan will automatically, on the last day of the then current Interest
Period relating thereto, become a Base Rate Loan, and (c) the obligations of the
Banks to make Eurodollar Rate Loans shall be suspended until the Agent or the
Majority Banks, as applicable, determine that the circumstances giving rise to
such suspension no longer exist, whereupon the Agent or, as the case may be, the
Agent upon the instruction of the Majority Banks, shall so notify the Borrower
and the Banks.

        Section 3.6. ILLEGALITY. Notwithstanding any other provisions herein, if
any present or future law, regulation, treaty or directive or in the
interpretation or application thereof shall make it unlawful for any Bank to
make or maintain Eurodollar Rate Loans, such Bank shall forthwith give notice of
such circumstances to the Borrower and the other Banks and thereupon the
commitment of such Bank to make Eurodollar Rate Loans or convert Revolving
Credit Loans of another Type to Eurodollar Rate Loans shall forthwith be
suspended and such Bank's Revolving Credit Loans then outstanding as Eurodollar
Rate Loans, if any, shall be converted automatically to Base Rate Loans on the
last day of each Interest Period applicable to such Eurodollar Rate Loans or
within such earlier period as may be required by law. The Borrower hereby agrees
promptly to pay the Agent for the account of such Bank, upon demand by such
Bank, any additional amounts necessary to compensate such Bank for any costs
incurred by such Bank in making any conversion in accordance with this Section
3.6, including any interest or fees payable by such Bank to lenders of funds
obtained by it in order to make or maintain its Eurodollar Loans hereunder.

        Section 3.7. ADDITIONAL COSTS, ETC. If any change after the Closing Date
to any present applicable law or if any future applicable law, which expression,
as used herein, includes statutes, rules and regulations thereunder and
interpretations thereof by any competent court or by any governmental or other
regulatory body or official charged with the administration or the
interpretation thereof and requests, directives, instructions and notices at any
time or from time to time hereafter made upon or otherwise issued to any Bank or
the Agent by any central bank or other fiscal, monetary or other authority
(whether or not having the force of law), shall:

                     (a)   subject any Bank or the Agent to any tax, levy,
impost, duty, charge, fee, deduction or withholding of any nature with respect
to this Credit Agreement, the other Loan Documents, such Bank's Commitment or
the Revolving Credit Loans (other than taxes based upon or measured by the
income or profits of such Bank or the Agent), or

                     (b)   materially change the basis of taxation (except for
changes in taxes on income or profits) of payments to any Bank of the principal
of or the interest on any Revolving Credit Loans or any other amounts payable to
any Bank or the Agent under this Credit Agreement or any of the other Loan
Documents, or

                     (c)   impose or increase or render applicable (other than
to the extent specifically provided for elsewhere in this Credit Agreement) any
special deposit, reserve, assessment, liquidity, capital adequacy or other
similar requirements (whether or not having the force of law) against assets
held by, or deposits in or for the account of, or loans by, or letters of credit
issued by, or commitments of an office of any Bank, or

<Page>
                                      -17-

                     (d)   impose on any Bank or the Agent any other conditions
or requirements with respect to this Credit Agreement, the other Loan Documents,
the Revolving Credit Loans, such Bank's Commitment, or any class of loans or
commitments of which any of the Revolving Credit Loans or such Bank's Commitment
forms a part, and the result of any of the foregoing is:

                          (i)   to increase the cost to any Bank of making,
funding, issuing, renewing, extending or maintaining any of the Revolving Credit
Loans or such Bank's Commitment, or

                         (ii)   to reduce the amount of principal, interest, or
other amount payable to such Bank or the Agent hereunder on account of such
Bank's Commitment, or any of the Revolving Credit Loans, or

                        (iii)   to require such Bank or the Agent to make any
payment or to forego any interest or other sum payable hereunder, the amount
of which payment or foregone interest or other sum is calculated by reference
to the gross amount of any sum receivable or deemed received by such Bank or
the Agent from the Borrower hereunder, then, in each such case and to the
extent that the amount such additional cost, reduction, payment, foregone
interest or other sum is not reflected in the Base Rate or the Eurodollar
Rate, the Borrower will, upon demand made by such Bank or (as the case may
be) the Agent at any time and from time to time and as often as the occasion
therefor may arise, pay to such Bank or the Agent such additional amounts as
will be sufficient to compensate such Bank or the Agent for such additional
cost, reduction, payment or foregone interest or other sum (without
duplication for recovery of such amounts under any other provision hereof),
PROVIDED that the Borrower shall not be liable to any Bank or the Agent for
costs incurred more than sixty (60) days prior to receipt by the Borrower of
such demand for payment from such Bank or (as the case may be) the Agent
unless such costs were incurred prior to such 60-day period solely as a
result of such present or future applicable law being retroactive to a date
which occurred prior to such 60-day period.

        Section 3.8. CAPITAL ADEQUACY. If after the Closing Date any Bank or the
Agent determines that the adoption of or change in any law, governmental rule,
regulation, policy, guideline or directive (whether or not having the force of
law) regarding capital requirements for banks or bank holding companies or any
change in the interpretation or application thereof by a court or governmental
authority with appropriate jurisdiction has the effect of reducing the return on
such Bank's or the Agent's commitment with respect to any Revolving Credit Loans
to a level below that which such Bank or the Agent could have achieved but for
such adoption, change or compliance (taking into consideration such Bank's or
the Agent's then existing policies with respect to capital adequacy and assuming
full utilization of such entity's capital) by any amount deemed by such Bank or
(as the case may be) the Agent to be material, then such Bank or the Agent may
notify the Borrower of such fact. To the extent that the amount of such
reduction in the return on capital is not reflected in the Base Rate or the
Eurodollar Rate then the Borrower agrees to pay such Bank or (as the case may
be) the Agent for the amount of such reduction in the return on capital as and
when such reduction is determined upon presentation by such Bank or (as the case
may be) the Agent of a certificate in accordance with Section 3.9 hereof,
PROVIDED that the Borrower shall not be liable to any Bank or the Agent for
costs incurred more than sixty (60) days prior to receipt by the Borrower of the
notice referred to in the immediately preceding sentence from such Bank or (as
the case may be) the Agent. Each Bank shall allocate such cost increases among
its customers in good faith and on an equitable basis.

        Section 3.9. CERTIFICATE. A certificate setting forth any additional
amounts payable pursuant to Sections 3.7 or 3.8 hereof and a brief explanation
of such amounts which are due, submitted by any Bank or the Agent to the
Borrower, shall be conclusive, absent manifest error, that such amounts are due
and owing. If the Borrower is required to pay any additional amounts pursuant to
Sections 3.7 or 3.8 hereof with respect to any Bank, the Borrower may, following
payment in full of the amount or amounts due set forth in such certificate, take
the actions permitted by Section 3.12 hereof to replace such Bank.

<Page>
                                      -18-

        Section 3.10. INDEMNITY. The Borrower agrees to indemnify each Bank and
to hold each Bank harmless from and against all redeployment costs and expenses
that such Bank may sustain or incur as a consequence of (a) default by the
Borrower in payment of the principal amount of or any interest on any Eurodollar
Rate Loan as and when due and payable, including any such cost or expense
arising from interest or fees payable by such Bank to lenders of funds obtained
by it in order to maintain its Eurodollar Rate Loans, (b) default by the
Borrower in making a borrowing or conversion after the Borrower has given (or is
deemed to have given) a Loan Request or a Conversion Request relating thereto in
accordance with Sections 2.2 or 2.9 hereof, or (c) the making of any payment of
a Eurodollar Rate Loan or the making of any conversion of any such Revolving
Credit Loan to a Base Rate Loan on a day that is not the last day of the
applicable Interest Period with respect thereto, including interest or fees
payable by such Bank to lenders of funds obtained by it in order to maintain any
such Revolving Credit Loans.

        Section 3.11. INTEREST ON OVERDUE AMOUNTS. Overdue principal and (to the
extent permitted by applicable law) interest on the Revolving Credit Loans and
all other overdue amounts payable hereunder or under any of the other Loan
Documents, if not repaid on or before the fifth calendar day following the day
such payment was due, shall bear interest from the due date thereof, compounded
monthly and payable on demand at any time from and after the fifth calendar day
following the day such payment was due, at a rate per annum equal to two percent
(2%) above the Base Rate until such amount shall be paid in full (after as well
as before judgment).

        Section 3.12. REPLACEMENT OF INDIVIDUAL BANKS. Upon the happening of any
of the events set forth in Sections 2.3.2, 3.6, 3.7, or 3.8, the Borrower may
(PROVIDED that at the time no Default or Event of Default exists or would result
after giving effect to the Borrower's action) prepay in full all Revolving
Credit Loans and other obligations owing by the Borrower to each affected Bank
(a "SUBSTITUTED BANK"), together with all amounts payable by the Borrower under
Section 3.10 hereof with respect to such prepayment, and terminate the
Commitment(s) of such Bank(s) subject to the following conditions:

                     (a)   the Borrower shall have delivered to the Agent not
less than ten (10) Business Days prior to the exercise of its rights under this
Section 3.12 a written commitment in form and substance satisfactory to the
Agent and each of the Banks from a banking institution (the "REPLACEMENT BANK")
reasonably acceptable to the Agent and each of the remaining Banks (other than
the Substituted Bank) in which such Replacement Bank agrees to become a "BANK"
under this Credit Agreement, having a Commitment Amount in the amount of the
Substituted Bank's Commitment Amount;

                     (b)   the Borrower shall have given appropriate notice of
any prepayment under this Section 3.12 as required by Section 2.7 and subject to
all other provisions of this Credit Agreement; and

                     (c)   simultaneously with any prepayment of all Revolving
Credit Loans and other obligations owing by the Borrower to a Substituted Bank
under this Section 3.12, the Substituted Bank shall have assigned pursuant to
Section 16 hereof of this Credit Agreement the Commitment of such Substituted
Bank to the Replacement Bank and such Replacement Bank shall have become a Bank
under this Credit Agreement, having a Commitment Amount in the amount of such
Substituted Bank's Commitment Amount and such Replacement Bank shall have
simultaneously funded all such Revolving Credit Loans prepaid hereunder.

        Section 3.13. GUARANTIES. The payment and performance of the Obligations
shall be guaranteed by each Guarantor pursuant to the Guaranties, each of which
shall be in the form of EXHIBIT E hereto. The Agent and the Banks hereby agree
that they shall, upon the written request of the Borrower and at the cost and
expense of the Borrower, release any Guarantor from its obligations to the Agent
and the Banks under the Guaranty to which such Guarantor is a party if, and only
if, (a) such Guarantor is no longer a Subsidiary of the Borrower, (b) no Default
or Event of Default shall have occurred and be continuing on the date of such
release, and (c) the Borrower shall have delivered to the Agent and the Banks on
the date of such release a certificate signed by an authorized officer of the
Borrower and evidence satisfactory to the Agent and the Banks showing compliance
with the provisions of clauses (a) and (b) hereof. The Borrower shall deliver to
the Banks an updated SCHEDULE 2 upon the release or addition of any Guarantor of
its obligations as provided in this Section 3.13.

<Page>
                                      -19-

                   Section 4. REPRESENTATIONS AND WARRANTIES.

        The Borrower represents and warrants to the Banks and the Agent as
follows:

        Section 4.1. CORPORATE AUTHORITY.

                  Section 4.1.1. INCORPORATION; GOOD STANDING. The Borrower and
each Guarantor (a) is a corporation or, as the case may be, a Massachusetts
Business Trust duly organized, validly existing and in good standing under the
laws of its state of incorporation or organization, (b) has all requisite
corporate or, as the case may be, trust power to own its property and conduct
its business as now conducted and as presently contemplated, and (c) is in good
standing as a foreign corporation and is duly authorized to do business in each
jurisdiction where such qualification is necessary except where a failure to be
so qualified would not have a materially adverse effect on the business, assets
or financial condition of the Borrower.

                  Section 4.1.2. AUTHORIZATION. The execution, delivery and
performance of this Credit Agreement and the other Loan Documents by the
Borrower and each Guarantor which is or is to become a party thereto, and the
transactions contemplated hereby and thereby (a) are within the corporate or, as
the case may be, trust authority of such Person, (b) have been duly authorized
by all necessary corporate or, as the case may be, trust proceedings, (c) do not
conflict with or result in any breach or contravention of any provision of law,
statute, rule or regulation to which such Person is subject which would have a
material adverse effect either individually or in the aggregate on the Borrower
and its Subsidiaries taken as a whole or on the ability of such Person to
fulfill its obligations under this Credit Agreement and the other Loan Documents
to which it is a party, (d) do not conflict with or result in any breach or
contravention of any judgment, order, writ, injunction, license or permit
applicable to the Borrower or any Guarantor and (e) do not conflict with any
provision of the corporate charter or bylaws or, as the case may be, the
Agreement and Declaration of Trust of, or any agreement or other instrument
binding upon, the Borrower or any Guarantor.

                  Section 4.1.3. ENFORCEABILITY. The execution and delivery of
this Credit Agreement and the other Loan Documents to which the Borrower or any
Guarantor is or is to become a party will result in valid and legally binding
obligations of such Person enforceable against it in accordance with the
respective terms and provisions hereof and thereof, except as enforceability is
limited by bankruptcy, insolvency, reorganization, moratorium or other laws
relating to or affecting generally the enforcement of creditors' rights and
except to the extent that availability of the remedy of specific performance or
injunctive relief is subject to the discretion of the court before which any
proceeding therefor may be brought.

        Section 4.2. GOVERNMENTAL APPROVALS. The execution, delivery and
performance by the Borrower and the Guarantors of this Credit Agreement and the
other Loan Documents to which the Borrower or any Guarantor is or is to become a
party and the transactions contemplated hereby and thereby do not require the
approval or consent of, or filing with, any governmental agency or authority
other than those already obtained.

        Section 4.3. TITLE TO PROPERTIES; LEASES. Except as indicated on
SCHEDULE 4.3 hereto, the Borrower and its Subsidiaries own all of the assets
reflected in the consolidated balance sheet of the Borrower as at the Balance
Sheet Date or acquired since that date (except property and assets sold or
otherwise disposed of in the ordinary course of business since that date),
subject to no rights of others, including any mortgages, leases, conditional
sales agreements, title retention agreements, liens or other encumbrances except
Permitted Liens.

        Section 4.4. FINANCIAL STATEMENTS. (a) There has been furnished to each
of the Banks a consolidated balance sheet of the Borrower and its Subsidiaries
as at the Balance Sheet Date, and consolidated statements of income and cash
flow of the Borrower and its Subsidiaries for the fiscal year then ended,
certified by Ernst & Young. Such balance sheet and statements of income and cash
flows have been prepared in accordance with generally accepted accounting
principles and fairly present the financial condition of the Borrower and its
Subsidiaries as at the close of business on the date thereof and the results

<Page>
                                      -20-

of operations for the fiscal year then ended. There are no contingent
liabilities of the Borrower or any of its Subsidiaries as of such date involving
material amounts, known to the officers of the Borrower, which were not
disclosed in such balance sheet and the notes related thereto.

        (b) There has been furnished to each of the Banks an audited
consolidated balance sheet of the Borrower and its Subsidiaries as at the
Balance Sheet Date, and audited consolidated statements of income and cash flow
of the Borrower and its Subsidiaries for the fiscal year then ended. Such
balance sheet and statements of income and cash flows have been prepared in
accordance with generally accepted accounting principles and fairly present the
financial condition of the Borrower and its Subsidiaries as at the close of
business on the date thereof and the results of operations for the fiscal
quarter then ended (subject to year-end adjustments). There are no contingent
liabilities of the Borrower or any of its Subsidiaries as of such date involving
material amounts, known to the officers of the Borrower, which were not
disclosed in such balance sheet and the notes related thereto.

        Section 4.5. NO MATERIAL CHANGES, ETC. Since the Balance Sheet Date
there has occurred no change in the operations, business, properties, assets or
financial condition of the Borrower and its Subsidiaries as shown on or
reflected in the consolidated balance sheet of the Borrower and its Subsidiaries
as at the Balance Sheet Date, or the consolidated statements of income and cash
flows for the fiscal year then ended, other than changes in the ordinary course
of business that have not had any materially adverse effect either individually
or in the aggregate on the business, assets or financial condition of the
Borrower and its Subsidiaries taken as a whole. Since the Balance Sheet Date,
the Borrower has not made any Distributions except Distributions made in
compliance with Section 6.4 hereof.

        Section 4.6. FRANCHISES, PATENTS, COPYRIGHTS, ETC. The Borrower and each
of its Subsidiaries possesses all franchises, patents, copyrights, trademarks,
trade names, licenses and permits, and rights in respect of the foregoing,
adequate for the conduct of its business substantially as now conducted without
known conflict with any rights of others.

        Section 4.7. LITIGATION. Except as set forth in SCHEDULE 4.7 hereto,
there are no actions, suits, proceedings or investigationS of any kind pending
or, to the best of the Borrower's knowledge, threatened against the Borrower or
any of its Subsidiaries before any court, tribunal or administrative agency or
board that, if adversely determined, might, either in any case or in the
aggregate, materially adversely affect the properties, assets, financial
condition or business of the Borrower and its Subsidiaries taken as a whole, or
materially impair the right of the Borrower and each of its Subsidiaries to
carry on business substantially as now conducted by it, or result in any
substantial liability not adequately covered by insurance, or for which adequate
reserves are not maintained on the consolidated balance sheet of the Borrower
and its Subsidiaries or which question the validity of this Credit Agreement or
any of the other Loan Documents, or any action taken or to be taken pursuant
hereto or thereto.

        Section 4.8. COMPLIANCE WITH OTHER INSTRUMENTS, LAWS, ETC. Neither the
Borrower nor any of its Subsidiaries is in violation of any provision of its
charter documents, bylaws, or any agreement or instrument to which it may be
subject or by which it or any of its properties may be bound or any decree,
order, judgment, statute, license, rule or regulation, in any of the foregoing
cases in a manner that could result in the imposition of substantial penalties
or materially and adversely affect the financial condition, properties or
business of the Borrower and its Subsidiaries taken as a whole.

        Section 4.9. TAX STATUS. The Borrower and each of its Subsidiaries (a)
has made or filed all applicable federal and state income and all other tax
returns, reports and declarations required by any jurisdiction to which it is
subject, (b) has paid all taxes and other governmental assessments and charges
shown or determined to be due on such returns, reports and declarations, except
those being contested in good faith and by appropriate proceedings and (c) has
set aside on its books provisions reasonably adequate for the payment of all
taxes for periods subsequent to the periods to which such returns, reports or
declarations apply. Except as set forth on SCHEDULE 4.9 attached hereto, there
are no unpaid taxes in any material amount claimed to be due by the taxing
authority of any jurisdiction, and the officers of the Borrower know of no basis
for any such claim.

<Page>
                                      -21-

        Section 4.10. NO EVENT OF DEFAULT. No Default or Event of Default has
occurred and is continuing.

        Section 4.11. HOLDING COMPANY AND INVESTMENT COMPANY ACTS. 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", as
such terms are defined in the Public Utility Holding Company Act of 1935; nor is
such Person a "REGISTERED INVESTMENT COMPANY", or a "PRINCIPAL UNDERWRITER" of a
"REGISTERED INVESTMENT COMPANY", or a company controlled by a "REGISTERED
INVESTMENT COMPANY", as such terms are defined in the Investment Company Act of
1940.

        Section 4.12. EMPLOYEE BENEFIT PLANS.

                  Section 4.12.1. IN GENERAL. Each Employee Benefit Plan has
been maintained and operated in compliance in all material respects with the
provisions of ERISA and, to the extent applicable, the Code, including but not
limited to the provisions thereunder respecting prohibited transactions.

                  Section 4.12.2. TERMINABILITY OF WELFARE PLANS. Under each
Employee Benefit Plan which is an employee welfare benefit plan within the
meaning of Section 3(1) or Section 3(2)(B) of ERISA, no benefits are due unless
the event giving rise to the benefit entitlement occurs prior to plan
termination (except as required by Title I, Part 6 of ERISA). The Borrower or an
ERISA Affiliate, as appropriate, may terminate each such Plan at any time (or at
any time subsequent to the expiration of any applicable bargaining agreement) in
the discretion of the Borrower or such ERISA Affiliate without liability to any
Person.

                  Section 4.12.3. GUARANTEED PENSION PLANS. Each contribution
required to be made to a Guaranteed Pension Plan, whether required to be made to
avoid the incurrence of an accumulated funding deficiency, the notice or lien
provisions of Section 302(f) of ERISA, or otherwise, has been timely made. No
waiver of an accumulated funding deficiency or extension of amortization periods
has been received with respect to any Guaranteed Pension Plan. No liability to
the PBGC (other than required insurance premiums, all of which have been paid)
has been incurred by the Borrower or any ERISA Affiliate with respect to any
Guaranteed Pension Plan and there has not been any ERISA Reportable Event, or
any other event or condition which presents a material risk of termination of
any Guaranteed Pension Plan by the PBGC. Based on the latest valuation of each
Guaranteed Pension Plan (which in each case occurred within twelve months of the
date of this representation), and on the actuarial methods and assumptions
employed for that valuation, except as set forth on SCHEDULE 4.12 attached
hereto, the aggregate benefit liabilities of all such Guaranteed Pension Plans
within the meaning of Section 4001 of ERISA did not exceed the aggregate value
of the assets of all such Guaranteed Pension Plans, disregarding for this
purpose the benefit liabilities and assets of any Guaranteed Pension Plan with
assets in excess of benefit liabilities.

                  Section 4.12.4. MULTIEMPLOYER PLANS. Neither the Borrower nor
any ERISA Affiliate has incurred any material liability (including secondary
liability) to any Multiemployer Plan as a result of a complete or partial
withdrawal from such Multiemployer Plan under Section 4201 of ERISA or as a
result of a sale of assets described in Section 4204 of ERISA. Neither the
Borrower nor any ERISA Affiliate has been notified that any Multiemployer Plan
is in reorganization or insolvent under and within the meaning of Section 4241
or Section 4245 of ERISA or that any Multiemployer Plan intends to terminate or
has been terminated under Section 4041A of ERISA.

        Section 4.13. REGULATIONS U AND X; ETC. The proceeds of the Revolving
Credit Loans shall be used for the purposes described in Section 5.12 hereof. No
portion of any Revolving Credit Loan is to be used for the purpose of purchasing
or carrying any "MARGIN SECURITY" or "MARGIN STOCK" (as such terms are used in
Regulations U and X of the Board of Governors of the Federal Reserve System, 12
C.F.R. Parts 221 and 224 (the "MARGIN REGULATIONS")) in violation of the Margin
Regulations.

        Section 4.14. ENVIRONMENTAL COMPLIANCE. The Borrower has taken all
reasonably necessary steps to investigate the past and present condition and
usage of the Real Estate and the operations conducted thereon and, based upon
such diligent investigation, has determined that:

<Page>
                                      -22-

                  (a)   none of the Borrower, its Subsidiaries nor any operator
of the Real Estate or any operations thereon is in violation, or alleged
violation, of any Environmental Laws, which violation would have a material
adverse effect on the business, assets or financial condition of the Borrower
and its Subsidiaries taken as a whole;

                  (b)   neither the Borrower nor any of its Subsidiaries has
received any Environmental Notice during the last five (5) years that has the
potential to materially affect the assets, liabilities, financial condition or
operations of the Borrower and its Subsidiaries taken as a whole, except as set
forth on SCHEDULE 4.14 hereto;

                  (c)   except as set forth on SCHEDULE 4.14 attached hereto:
(i) no portion of the Real Estate has been used for the handling, processing,
storage or disposal of Hazardous Substances; and no underground tank or other
underground storage receptacle for Hazardous Substances is located on any
portion of the Real Estate; in each case except in accordance with applicable
Environmental Laws the noncompliance with which would have a material adverse
effect on the business, assets or financial condition of the Borrower and its
Subsidiaries, taken as a whole; (ii) in the course of any activities conducted
by the Borrower or operators of its properties, no Hazardous Substances have
been generated or are being used on the Real Estate except in accordance with
applicable Environmental Laws the noncompliance with which would have a material
adverse effect on the business, assets or financial condition of the Borrower
and its Subsidiaries, taken as a whole; (iii) there have been no releases or
threatened releases of Hazardous Substances on, upon, into or from the
properties of the Borrower or any of its Subsidiaries, which releases would have
a material adverse effect on the business, assets or financial condition of the
Borrower and its Subsidiaries, taken as a whole; (iv) to the best of the
Borrower's knowledge, there have been no releases on, upon, from or into any
real property in the vicinity of any of the Real Estate which, through soil or
groundwater contamination, may have come to be located on the Real Estate and
which would have a material adverse effect on the Borrower and its Subsidiaries,
taken as a whole; and (v) in addition, any Hazardous Substances that have been
generated on any of the Real Estate have, to the best of the Borrower's
knowledge, been transported offsite only as required under and in compliance
with applicable Environmental Laws.

        Section 4.15. SUBSIDIARIES, ETC. As of the Closing Date, other than
those Subsidiaries of the Borrower described on SCHEDULE 4.15(a) attached
hereto, the Borrower has no other Subsidiaries. As of the Closing Date, except
as set forth on SCHEDULE 4.15(b) attached hereto, neither the Borrower nor any
Subsidiary of the Borrower is engaged in any joint venture or partnership with
any other Person. As of the Closing Date, except as set forth on SCHEDULE
4.15(b) attached hereto, neither the Borrower nor any Subsidiary of the Borrower
owns or has acquired an equity interest of fifty percent (50%) or less in any
other Person. The Borrower hereby agrees to deliver to the Banks an updated
SCHEDULE 4.15(a), SCHEDULE 4.15(b) or SCHEDULE 4.15(c), as applicable, upon the
acquisition or formation by the Borrower of any Subsidiary, the formation of any
joint venture or partnership by the Borrower or any of its Subsidiaries with any
other Person or the acquisition by the Borrower or any of its Subsidiaries of an
equity interest of fifty percent (50%) or less in any other Person, in each case
in accordance with the provisions of this Credit Agreement.

                Section 5. AFFIRMATIVE COVENANTS OF THE BORROWER.

        The Borrower covenants and agrees that, so long as any Revolving Credit
Loan or Revolving Credit Note is outstanding or any Bank has any obligation to
make any Revolving Credit Loans:

        Section 5.1. PUNCTUAL PAYMENT. The Borrower will duly and punctually pay
or cause to be paid the principal and interest on the Revolving Credit Loans,
the Facility Fee, the Agent Fees and all other amounts provided for in this
Credit Agreement and the other Loan Documents to which the Borrower is a party,
all in accordance with the terms of this Credit Agreement and such other Loan
Documents.

        Section 5.2. MAINTENANCE OF OFFICE. The Borrower will maintain its chief
executive office in Framingham, Massachusetts, or at such other place in the
United States of America as the Borrower shall

<Page>
                                      -23-

designate upon written notice to the Agent, where notices, presentations and
demands to or upon the Borrower in respect of the Loan Documents to which the
Borrower is a party may be given or made.

        Section 5.3. RECORDS AND ACCOUNTS. The Borrower will (a) keep, and cause
each of its Subsidiaries to keep, true and accurate records and books of account
in which full, true and correct entries will be made in accordance with
generally accepted accounting principles and (b) maintain adequate accounts and
reserves for all taxes, depreciation, depletion, obsolescence and amortization
of its properties and the properties of its Subsidiaries, contingencies, and
other reserves.

        Section 5.4. FINANCIAL STATEMENTS, CERTIFICATES AND INFORMATION. The
Borrower will deliver to the Agent (and the Agent will promptly, after receipt
thereof, deliver to the Banks):

                  (a)   as soon as practicable, but in any event not later than
one hundred ten (110) days after the end of each fiscal year of the Borrower,
the consolidated balance sheet of the Borrower and its Subsidiaries as at the
end of such year, and the related consolidated statement of income and
consolidated statement of cash flow for such year, each setting forth in
comparative form the figures for the previous fiscal year and all such
consolidated statements to be in reasonable detail, prepared in accordance with
generally accepted accounting principles, and certified without qualification by
Ernst & Young or by other independent certified public accountants reasonably
satisfactory to the Agent;

                  (b)   as soon as practicable, but in any event not later than
sixty-five (65) days after the end of each of the first three fiscal quarters of
the Borrower, copies of the unaudited consolidated balance sheet of the Borrower
and its Subsidiaries as at the end of such quarter, and the related consolidated
statement of income and consolidated statement of cash flow for the portion of
the Borrower's fiscal year then elapsed, all in reasonable detail and prepared
in accordance with generally accepted accounting principles, together with a
certification by the chief financial officer or the treasurer of the Borrower
that to the best of the Borrower's knowledge, the information contained in such
financial statements fairly presents the financial position of the Borrower and
its Subsidiaries on the date thereof (subject to year-end adjustments);

                  (c)   simultaneously with the delivery of the financial
statements referred to in subsections (a) and (b) above, a statement certified
by the chief financial officer or the treasurer of the Borrower in substantially
the form of EXHIBIT C attached hereto (a "COMPLIANCE CERTIFICATE") and setting
forth in reasonable detail computations evidencing compliance with the covenants
contained in Section 7 hereof and (if applicable) reconciliations to reflect
changes in generally accepted accounting principles since the Balance Sheet
Date;

                  (d)   from time to time such other financial data and
information as the Agent or any Bank may reasonably request; and

                  (e)   (i) promptly upon becoming aware of the occurrence of
any actual or claimed "EVENT OF TERMINATION" under and as defined in any of the
documents relating to the Securitization, notice thereof, which notice shall
describe such Event of Termination and indicate what steps the Borrower and its
Subsidiaries are taking to remedy the same and (ii) promptly upon request
therefor, such other information with respect to the Securitization as the Agent
shall reasonably request.

All Confidential Information concerning the Borrower supplied by the Borrower to
the Banks pursuant to the terms hereof will be held in confidence by the Banks
and the Banks shall not disclose such Confidential Information except that the
Borrower authorizes each Bank to disclose any Confidential Information obtained
pursuant to this Credit Agreement or any other Loan Document (i) to any bank
regulatory authority, (ii) to any independent auditor or counsel or participant
or potential assignee or potential participant of such Bank, provided that such
independent auditor or counsel or participant or potential assignee or potential
participant enters into a confidentiality agreement with the Borrower
substantially similar to such Bank's agreement with the Borrower, and (iii) to
all other appropriate governmental

<Page>
                                      -24-

regulatory authorities to the extent required by such Bank by law or subpoena,
but only to the extent permitted by applicable laws and regulations, including
those applying to classified material.

        Section 5.5. NOTICES. The Borrower will promptly notify the Agent for
the benefit of the Banks in writing of the occurrence of any Default or Event of
Default. The Borrower will promptly give notice to the Agent for the benefit of
the Banks (a) of any material violation of any Environmental Law that the
Borrower or any of its Subsidiaries reports in writing or is reportable by such
Person in writing (or for which any written report supplemental to any oral
report is made) to any federal, state or local environmental agency and (b) upon
becoming aware thereof, of any inquiry, proceeding, investigation, or other
action, including a notice from any agency of potential environmental liability,
or any federal, state or local environmental agency or board, that has the
potential to materially affect the assets, liabilities, financial conditions or
operations of the Borrower. The Borrower will give notice to the Agent for the
benefit of the Banks in writing within fifteen (15) days of becoming aware of
any litigation or proceedings threatened in writing or any pending litigation
and proceedings affecting the Borrower or any of its Subsidiaries or to which
the Borrower or any of its Subsidiaries is or becomes a party involving an
uninsured claim against the Borrower or any of its Subsidiaries that could
reasonably be expected to have a materially adverse effect on the Borrower and
its Subsidiaries taken as a whole and stating the nature and status of such
litigation or proceedings. The Borrower will, and will cause each of its
Subsidiaries to, give notice to the Agent for the benefit of the Banks, in
writing, in form and detail satisfactory to the Agent, within ten (10) days of
any judgment not covered by insurance, final or otherwise, against the Borrower
or any of its Subsidiaries in an amount in excess of $1,000,000.

        Section 5.6. CORPORATE EXISTENCE; MAINTENANCE OF PROPERTIES. The
Borrower will do or cause to be done all things necessary tO preserve and keep
in full force and effect its corporate existence, rights and franchises and
those of its Subsidiaries. It (a) will cause all of its properties and those of
its Subsidiaries used or useful in the conduct of its business or the business
of its Subsidiaries to be maintained and kept in good condition, repair and
working order and supplied with all necessary equipment, (b) will cause to be
made all necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Borrower may be necessary so that the
business carried on in connection therewith may be properly and advantageously
conducted at all times, and (c) will, and will cause each of its Subsidiaries
to, continue to engage primarily in the businesses now conducted by them and in
related businesses; PROVIDED that nothing in this Section 5.6 shall prevent the
Borrower from discontinuing the operation and maintenance of any of its
properties or any of those of its Subsidiaries if such discontinuance is, in the
judgment of the Borrower, desirable in the conduct of its or their business and
does not in the aggregate materially adversely affect the business of the
Borrower and its Subsidiaries on a consolidated basis.

        Section 5.7. INSURANCE. The Borrower will, and will cause each of its
Subsidiaries to, maintain with financially sound and reputable insurers
insurance with respect to its properties and business against such casualties
and contingencies as shall be in accordance with the general practices of
businesses engaged in similar activities in similar geographic areas and in
amounts, containing such terms, in such forms and for such periods as may be
reasonable and prudent.

        Section 5.8. TAXES. The Borrower will, and will cause each of its
Subsidiaries to, duly pay and discharge, or cause to be paid and discharged,
before the same shall become overdue, all taxes, assessments and other
governmental charges imposed upon it and its real properties, sales and
activities, or any part thereof, or upon the income or profits therefrom, as
well as all claims for labor, materials, or supplies that if unpaid might by law
become a lien or charge upon any of its property; PROVIDED that any such tax,
assessment, charge, levy or claim need not be paid if the validity or amount
thereof shall currently be contested in good faith by appropriate proceedings
and if the Borrower or such Subsidiary shall have set aside on its books
adequate reserves with respect thereto; and PROVIDED FURTHER that the Borrower
and each Subsidiary of the Borrower will pay all such taxes, assessments,
charges, levies or claims forthwith upon the commencement of proceedings to
foreclose any lien that may have attached as security therefor or shall have
obtained such bonding as may be required to release such lien.

<Page>
                                      -25-

        Section 5.9. INSPECTION OF PROPERTIES AND BOOKS, ETC. The Borrower shall
permit the Banks, through the Agent or any of the Banks' other designated
representatives, no more frequently than once each calendar year, or more
frequently as determined by the Banks upon the occurrence and during the
continuance of an Event of Default, to visit and inspect any of the properties
of the Borrower or any of its Subsidiaries, and each such inspection, if no
Event of Default has occurred and is continuing, shall be at the Banks' expense.
The Borrower shall also permit the Banks, through the Agent or any of the Banks'
other designated representatives, to examine the books of account of the
Borrower and its Subsidiaries (and to make copies thereof and extracts
therefrom), and to discuss the affairs, finances and accounts of the Borrower
and its Subsidiaries with, and to be advised as to the same by, its and their
officers, all at such reasonable times and intervals as the Agent or any Bank
may reasonably request. The Borrower authorizes the Agent and, if accompanied by
the Agent, the Banks to communicate directly with the Borrower's independent
certified public accountants and authorizes such accountants to disclose to the
Agent and the Banks any and all financial statements and other supporting
financial documents and schedules with respect to the business, financial
condition and other affairs of the Borrower or any of its Subsidiaries.

        Section 5.10. COMPLIANCE WITH LAWS, CONTRACTS, LICENSES, AND PERMITS.
The Borrower will, and will cause each of its Subsidiaries to, comply with (a)
the applicable laws and regulations wherever its business is conducted,
including all Environmental Laws, (b) the provisions of its charter documents
and by-laws, (c) all agreements and instruments by which it or any of its
properties may be bound and (d) all applicable decrees, orders, and judgments,
in each case if noncompliance with which would have a material adverse effect on
the business, assets or financial condition of the Borrower and its
Subsidiaries, taken as a whole, or on the ability of the Borrower or any of the
Guarantors to fulfill its obligations under this Credit Agreement or any of the
other Loan Documents to which such Person is a party. If any authorization,
consent, approval, permit or license from any officer, agency or instrumentality
of any government shall become necessary or required in order that the Borrower
may fulfill any of its obligations hereunder or any of the other Loan Documents
to which the Borrower is a party, the Borrower will, or (as the case may be)
will cause such Subsidiary to, immediately take or cause to be taken all
reasonable steps within the power of the Borrower or such Subsidiary to obtain
such authorization, consent, approval, permit or license and furnish the Agent
and the Banks with evidence thereof.

        Section 5.11. EMPLOYEE BENEFIT PLANS. The Borrower will (i) promptly
upon request of the Agent, furnish to the Agent a copy of the most recent
actuarial statement required to be submitted under Section 103(d) of ERISA and
Annual Report, Form 5500, with all required attachments, in respect of each
Guaranteed Pension Plan and (ii) promptly upon receipt or dispatch, furnish to
the Agent any notice, report or demand sent or received in respect of a
Guaranteed Pension Plan under Sections 302, 4041, 4042, 4043, 4063, 4065, 4066
and 4068 of ERISA, or in respect of a Multiemployer Plan, under Sections 4041A,
4202, 4219, 4242, or 4245 of ERISA.

        Section 5.12. USE OF PROCEEDS. The Borrower will use the proceeds of the
Revolving Credit Loans solely for working capital and general corporate
purposes, including, without limitation, for the acquisition of assets and or
Capital Stock of Persons in the same line of business as the Borrower or any
Subsidiary of the Borrower, to the extent permitted under this Credit Agreement.

        Section 5.13. LICENSES AND PERMITS. The Borrower will maintain and renew
any and all licenses or permits now held or hereafter acquired by the Borrower
or any of its Subsidiaries unless the loss, suspension, revocation or failure to
renew any such licenses or permits would not have a material adverse effect on
the business or financial condition of the Borrower and such Subsidiary.

        Section 5.14. FURTHER ASSURANCES. The Borrower will, and will cause each
of the Guarantors to, cooperate with the Banks and the Agent and execute such
further instruments and documents as the Banks or the Agent shall reasonably
request to carry out to their satisfaction the transactions contemplated by this
Credit Agreement and the other Loan Documents.

<Page>
                                      -26-

             Section 6. CERTAIN NEGATIVE COVENANTS OF THE BORROWER.

        The Borrower covenants and agrees that, so long as any Revolving Credit
Loan or Revolving Credit Note is outstanding or any Bank has any obligation to
make any Revolving Credit Loans:

        Section 6.1. RESTRICTIONS ON INDEBTEDNESS. The Borrower will not, and
will not permit any of its Subsidiaries to, create, incur, assume, guarantee or
become or remain liable, contingently or otherwise, with respect to Indebtedness
other than:

                  (a)   Indebtedness to the Banks and the Agent arising under
any of the Loan Documents;

                  (b)   current liabilities of the Borrower or such Subsidiary
incurred in the ordinary course of business not incurred through (i) the
borrowing of money, or (ii) the obtaining of credit except for credit on an open
account basis customarily extended and in fact extended in connection with
normal purchases of goods and services;

                  (c)   Indebtedness in respect of taxes, assessments,
governmental charges or levies and claims for labor, materials and supplies to
the extent that payment therefor shall not at the time be required to be made in
accordance with the provisions of Section 5.8 hereof;

                  (d)   Indebtedness in respect of judgments or awards that have
been in force for less than the applicable period for taking an appeal so long
as execution is not levied thereunder or in respect of which the Borrower or
such Subsidiary shall at the time in good faith be prosecuting an appeal or
proceedings for review and in respect of which a stay of execution shall have
been obtained pending such appeal or review;

                  (e)   endorsements for collection, deposit or negotiation and
warranties of products or services, in each case incurred in the ordinary course
of business;

                  (f)   Indebtedness in respect of documentary letters of credit
issued in the ordinary course of business;

                  (g)   Indebtedness of the Borrower in respect of interest rate
protection arrangements and exchange rate protection arrangements;

                  (h)   Indebtedness existing on the Closing Date and listed and
described on SCHEDULE 6.1(h) hereto or any refinancing thereof on substantially
similar terms as the Indebtedness being refinanced;

                  (i)   Subordinated Debt;

                  (j)   obligations under Capitalized Leases;

                  (k)   Indebtedness incurred by the Borrower and its
Subsidiaries under the Securitization;

                  (l)   Indebtedness in respect of (i) intercompany loans and
guaranties from the Borrower to any of its Subsidiaries or of any of its
Subsidiaries' obligations or (ii) intercompany loans and guaranties between
Subsidiaries of the Borrower or (iii) intercompany loans and guaranties from any
Guarantor to the Borrower or of any of the Borrower's obligations or (iv)
guaranties from any Subsidiary of the Borrower of any of the Borrower's
obligations, PROVIDED that the Investments corresponding to such Indebtedness
are permitted under Sections 6.3(j) or 6.3(k) hereof;

                  (m)   Indebtedness incurred in connection with the acquisition
after the Closing Date of any real or personal property by the Borrower or any
Subsidiary of the Borrower as contemplated by Section 6.2(ix) hereof;

<Page>
                                      -27-

                  (n)   Indebtedness of the Borrower and its Subsidiaries in
respect of Investments in and contingent obligations to make Investments in
non-Guarantor Subsidiaries; PROVIDED THAT the Investments corresponding to such
Indebtedness are permitted under Section 6.3(k) hereof;

                  (o)   Indebtedness secured by a lien on Real Estate of the
Borrower or its Subsidiaries; PROVIDED that the aggregate amount of Indebtedness
permitted pursuant to this Section 6.1(o) shall not, at any time, exceed the
fair market value of the ReaL Estate securing such Indebtedness;

                  (p)   other Indebtedness of the Borrower and its Subsidiaries
(whether or not such Subsidiaries are Guarantors), PROVIDED that (i) with
respect to Indebtedness incurred by the Borrower or a Guarantor, such
Indebtedness contains covenants that are no more restrictive on the Borrower or
such Guarantor than the covenants contained in this Credit Agreement and (ii)
immediately after such incurrence of Indebtedness, and after giving effect
thereto on a PRO FORMA basis, no Default or Event of Default shall then exist;

                  (q)   Indebtedness of the Borrower and its Subsidiaries
incurred pursuant to that certain Revolving Credit Agreement, dated as of
November 13, 1997, as amended, by and among the Borrower, the lending
institutions party thereto, Fleet National Bank (f/k/a BankBoston, N.A.), as
administrative and documentation agent for such lending institutions, The Chase
Manhattan Bank, as syndication agent for such lending institutions, and the
co-agents named therein; and

                  (r)   Indebtedness consisting of Investments permitted
under Section 6.3(n) hereof.

Notwithstanding the foregoing, at no time shall the aggregate amount of
Indebtedness of the Borrower and its Subsidiaries consisting of guaranties and
other Contingent Liabilities (excluding (i) Indebtedness permitted pursuant to
Section 6.1 to the extent such Indebtedness (or if such Indebtedness is a
Contingent Liability of the Borrower and/or its Subsidiaries, the underlying
Indebtedness relating to such Contingent Liability) is included in the
calculation of Total Funded Indebtedness) and (ii) obligations in respect of
documentary letters of credit) exceed, in the aggregate, 15% of the
Stockholders' Equity of the Borrower at such time. For purposes of this Section,
the amount of Contingent Liabilities in respect of interest rate protection
arrangements and exchange rate protection arrangements permitted under Section
6.1(g) at any time shall be the net liability of the Borrower and its
Subsidiaries under such arrangements at such time, calculated on a basis
satisfactory to the Agent in accordance with accepted practice.

        Section 6.2. RESTRICTIONS ON LIENS. The Borrower will not, and will not
permit any of its Subsidiaries to, (a) create or incur or suffer to be created
or incurred or to exist any lien, encumbrance, mortgage, pledge, charge,
restriction or other security interest of any kind upon any of its property or
assets of any character whether now owned or hereafter acquired, or upon the
income or profits therefrom; (b) transfer any of such property or assets or the
income or profits therefrom for the purpose of subjecting the same to the
payment of Indebtedness or performance of any other obligation in priority to
payment of its general creditors; (c) acquire, or agree or have an option to
acquire, any property or assets upon conditional sale or other title retention
or purchase money security agreement, device or arrangement; (d) suffer to exist
for a period of more than thirty (30) days after the same shall have been
incurred any Indebtedness or claim or demand against it that if unpaid might by
law or upon bankruptcy or insolvency under the laws of the United States of
America or any state thereof, or otherwise, be given any priority whatsoever
over its general creditors; or (e) sell, assign, pledge or otherwise transfer
any accounts, contract rights, general intangibles, chattel paper or
instruments, with or without recourse; PROVIDED that the Borrower and any
Subsidiary of the Borrower may create or incur or suffer to be created or
incurred or to exist:

                        (i)   liens in favor of the Borrower on all or part of
the assets of Subsidiaries of the Borrower securing Indebtedness owing by
Subsidiaries of the Borrower to the Borrower;

                        (ii)  liens to secure taxes, assessments and other
government charges and liens to secure claims for labor, material or supplies,
in each case in respect of obligations not overdue or

<Page>
                                      -28-

which are being contested in good faith and by appropriate proceedings and for
which the Borrower or such Subsidiary has set aside on its books adequate
reserves with respect thereto;

                        (iii) deposits or pledges made in connection with, or to
secure payment of, worker's compensation, unemployment insurance, old age
pensions or other social security obligations;

                        (iv)  liens in respect of judgments or awards that have
been in force for less than the applicable period for taking an appeal so long
as execution is not levied thereunder or in respect of which the Borrower or
such Subsidiary is at the time in good faith prosecuting an appeal and in
respect of which a stay of execution shall have been obtained pending such
appeal or shall have obtained an unsecured bond sufficient to release such lien;

                        (v)   liens of carriers, warehousemen, mechanics and
materialmen, and other like liens, in respect of obligations not overdue or, if
such obligations are overdue, being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary shall have set aside
on its books adequate reserves with respect thereto, PROVIDED that no proceeding
to foreclose any such lien shall have been commenced;

                        (vi)  encumbrances on Real Estate consisting of
easements, rights of way, zoning restrictions, restrictions on the use of real
property and defects and irregularities in the title thereto, landlord's or
lessor's liens under Capitalized Leases to which the Borrower or a Subsidiary of
the Borrower is a party, and other minor liens or encumbrances none of which in
the opinion of the Borrower interferes materially with the use of the property
affected in the ordinary conduct of the business of the Borrower and its
Subsidiaries, which defects do not individually or in the aggregate have a
materially adverse effect on the business of the Borrower individually or of the
Borrower and its Subsidiaries on a consolidated basis;

                        (vii) liens existing on the Closing Date and listed on
SCHEDULE 6.2 attached hereto or liens on the same assets in connection with the
refinancing of such existing liens;

                        (viii) liens arising in the ordinary course of business
of the Borrower or a Subsidiary of the Borrower none of which in the opinion of
the Borrower interferes materially with the use of the property affected in the
ordinary course of business of the Borrower and its Subsidiaries and which do
not, individually or in the aggregate, have a materially adverse effect on the
business of the Borrower or such Subsidiary individually or of the Borrower and
its Subsidiaries on a consolidated basis;

                        (ix)  purchase money security interests in or purchase
money mortgages on real or personal property acquired after the Closing Date to
secure purchase money Indebtedness of the Type permitted by Section 6.1(m)
hereof, incurred in connection with the acquisition of such property, which
security interests or mortgages cover only the real or personal property so
acquired;

                        (x)   liens on accounts receivable of the Borrower
and/or its Subsidiaries that are the subject of and secure the accounts
receivable financing facility permitted under Section 6.1(k) hereof;

                        (xi)  liens securing other permitted Indebtedness that
does not exceed $10,000,000 in the aggregate;

                        (xii) liens in respect of the interests of lessors under
Capitalized Leases; and

                        (xiii) liens on Real Estate securing Indebtedness
permitted under Section 6.1(o) hereof.

        Section 6.3. RESTRICTIONS ON INVESTMENTS. The Borrower will not, and
will not permit any of its Subsidiaries to, make or permit to exist or to remain
outstanding any Investment except Investments in:

                  (a)   marketable direct or guaranteed obligations of the
United States of America;

<Page>
                                      -29-

                  (b)   demand deposits, certificates of deposit, bankers
acceptances and time deposits of (i) United States or Canadian banks having
total assets in excess of $1,000,000,000 or (ii) a commercial bank organized
under the laws of any other country which is a member of the Organization for
Economic Cooperation and Development (the "OECD"), or a political subdivision of
such country, and having total assets in excess of $1,000,000,000, PROVIDED that
such bank is acting through a branch or agency located in the country in which
its is organized or another country which is a member of the OECD;

                  (c)   (i) securities commonly known as "commercial paper"
denominated in Dollars which at the time of purchase have been rated and the
ratings for which are not less than "P 1" if rated by Moody's, and not less than
"A 1" if rated by S&P; and (ii) securities commonly known as "short-term bank
notes" issued by any Bank denominated in Dollars which at the time of purchase
have been rated and the ratings for which are not less than "P 2" if rated by
Moody's, and not less than "A 2" if rated by S&P;

                  (d)   Investments existing on the Closing Date and listed on
SCHEDULE 6.3 attached hereto;

                  (e)   Investments with respect to Indebtedness permitted
by Section 6.1(k) hereof so long as such entities remain Subsidiaries of the
Borrower;

                  (f)   taxable or tax-exempt securities which at the time of
purchase have been rated and the ratings for which are not less than A 3 if
rated by Moody's, and not less than A- if rated by S&P;

                  (g)   Investments consisting of loans and advances to
employees of the Borrower or any Subsidiary of the Borrower, not exceeding
$1,000,000 in the aggregate at any one time outstanding;

                  (h)   options to invest in or to lease real property to be
used in the operations of the Borrower or any Subsidiary of the Borrower;

                  (i)   guaranties by endorsement of negotiable instruments for
deposit or collection or similar transactions effected in the ordinary course of
business;

                  (j)   (i) the Borrower's or any Subsidiary's guaranty of the
Indebtedness of any Guarantor or the Borrower, (ii) any other Investments by the
Borrower or any Guarantor in any Guarantor or the Borrower, and (iii) any
Investments (other than loans) by any Subsidiary of the Borrower in any
Guarantor or the Borrower;

                  (k)   Investments by the Borrower or any Subsidiary of the
Borrower in any of the Borrower's Subsidiaries (other than Guarantors), PROVIDED
that the aggregate amount of (i) such Investments in, intercompany loans to and
guaranties of, the obligations of such Subsidiaries and (ii) Investments
otherwise permitted by Section 6.3(m) hereof, shall at no time exceed 65% of the
Stockholders' Equity of the Borrower, and PROVIDED, FURTHER, that the aggregate
amount of Investments in, intercompany loans to and guaranties of, the
obligations of each Domestic Subsidiary (other than Guarantors) shall not exceed
$35,000,000 at any time;

                  (l)   Investments by the Borrower or any Subsidiary of the
Borrower to acquire any Person, PROVIDED that such acquisition is permitted
under Section 6.6 hereof;

                  (m)   Investments by the Borrower or any Subsidiary of the
Borrower to acquire up to a fifty percent (50%) equity interest in another
Person, PROVIDED that (i) such Person is in the same line of business as the
Borrower or such Subsidiary, as applicable, (ii) the aggregate amount of (A)
such Investments in such Person, (B) existing Investments made by the Borrower
or any Subsidiary of the Borrower pursuant to this Section 6.3(m), and (C)
Investments otherwise permitted by Section 6.3(k) hereof, shall at no time
exceed 65% of the Stockholders' Equity of the Borrower, and (iii) the
consideration for such interest shall be the exchange by the Borrower or such
Subsidiary as applicable, of a certain number of shares of its

<Page>
                                      -30-

common stock for equity securities of the other Person and/or the payment in
cash in an aggregate cash amount for any such Investment not to exceed
$50,000,000; and

                  (n)   Investments in respect of (i) loans made by the Borrower
to certain of its employees and other Persons and (ii) guaranties of loans made
by third parties to certain of the Borrower's employees and other Persons (such
loans made by the Borrower and such loans made by third parties and guaranteed
by the Borrower are referred to herein, collectively, as the "OPTION LOANS"),
PROVIDED that (A) the aggregate principal amount of the Option Loans made and
guaranteed by the Borrower during the period from October 29, 1999 through
October 31, 2000 shall not exceed $30,000,000, (B) the aggregate principal
amount of Option Loans made and guaranteed by the Borrower during each twelve
(12) month period beginning on November 1st of each year (commencing with
November 1, 2000) and ending on October 31st of the following year shall not
exceed $12,000,000, and (C) the proceeds of the Option Loans will be paid by
such Persons to the Borrower as consideration for the purchase by such Persons
of Staples.com stock pursuant to the Borrower's stock option and stock purchase
plans.

        Section 6.4. DISTRIBUTIONS. The Borrower will not declare any dividend
or make any Distribution if any Default or Event oF Default has occurred and is
continuing or would result after giving effect to such Distribution.

        Section 6.5. EMPLOYEE BENEFIT PLANS. Neither the Borrower nor any ERISA
Affiliate will engage in any "PROHIBITED TRANSACTION" within the meaning of
Section 406 of ERISA or Section 4975 of the Code which could result in a
material liability for the Borrower or any of its Subsidiaries; or permit any
Guaranteed Pension Plan to incur an "ACCUMULATED FUNDING DEFICIENCY", as such
term is defined in Section 302 of ERISA, whether or not such deficiency is or
may be waived; or fail to contribute to any Guaranteed Pension Plan to an extent
which, or terminate any Guaranteed Pension Plan in a manner which, could result
in the imposition of a lien or encumbrance on the assets of the Borrower or any
of its Subsidiaries pursuant to Section 302(f) or Section 4068 of ERISA; or
permit or take any action which would result in the aggregate benefit
liabilities (with the meaning of Section 4001 of ERISA) of all Guaranteed
Pension Plans exceeding the value of the aggregate assets of such Plans,
disregarding for this purpose the benefit liabilities and assets of any such
Plan with assets in excess of benefit liabilities.

        Section 6.6. MERGER AND CONSOLIDATION. The Borrower will not, and will
not permit any of its Subsidiaries to, merge or consolidate with any other
Person; enter into any stock or asset acquisitions (other than the acquisition
of assets in the ordinary course of such Person's business and other than the
acquisition of stock permitted under Section 6.3(k) hereof); enter into any
joint venture or partnerships (except to the extent permitted under Section 6.3
hereof); or enter into any new lines of business or otherwise change the conduct
of the Borrower's or such Subsidiary's business as presently conducted; other
than (a) the merger or consolidation of one or more Subsidiaries of the Borrower
with and into the Borrower, PROVIDED that the Borrower is the surviving entity,
(b) the merger or consolidation of two or more Subsidiaries of the Borrower,
PROVIDED that, if one of the Subsidiaries is a Guarantor, that the Guarantor is
the surviving entity, or (c) the acquisition (whether of stock or assets or by
means of a merger) of any other Person, PROVIDED that (i) immediately after such
acquisition, and after giving effect thereto on a PRO FORMA basis, no Default or
Event of Default shall then exist, (ii) if required by applicable law, the board
of directors and the shareholders or the equivalent, of such other Person has
approved such acquisition, (iii) such other Person is in the business of selling
office services, products and/or supplies, (iv) in connection with any such
acquisition involving an aggregate consideration (including assumption of
Indebtedness) in an amount greater than ten percent (10%) of the Consolidated
Tangible Net Worth of the Borrower and its Subsidiaries, determined immediately
prior to such acquisition, the Borrower shall have delivered to the Agent and
the Banks prior written notice of the proposed acquisition, (v) if the Borrower
or a Guarantor and such other Person merge, the Borrower or such Guarantor is
the surviving entity, and (vi) contemporaneously with such acquisition, the
requirements of Section 5.14, if applicable, shall have been satisfied.

        Section 6.7. DISPOSITION OF ASSETS AND SALE-LEASEBACK TRANSACTIONS. The
Borrower will not, and will not permit any of its Subsidiaries to, dispose of or
sell assets other than:

<Page>
                                      -31-

                  (a)   the disposition of assets in the ordinary course of
business,

                  (b)   sale-leaseback transactions and other dispositions of
assets that do not have a materially adverse effect on the business, assets or
financial condition of the Borrower or any of its Subsidiaries, PROVIDED that
(i) the aggregate net book value of the assets to be sold PLUS the net book
value of all other assets of the Borrower and its Subsidiaries sold under this
clause (b) during the period of time from the Closing Date through the date of
such sale does not, at the time of such sale, exceed 25% of the Consolidated
Total Assets of the Borrower and its Subsidiaries, (ii) such assets are sold in
an arm's length transaction for fair market value (after giving effect to all
tax benefits, if any, associated with such sale), and (iii) the Borrower shall,
if an Event of Default exists or would result from such sale, prepay the
Revolving Credit Loans by an amount equal to (A) 50% of the amount by which the
aggregate net sale proceeds of all assets sold pursuant to this clause (b)
exceeds $20,000,000 but is less than or equal to $50,000,000 PLUS (B) 100% of
the amount by which the aggregate net sale proceeds of all assets sold pursuant
to this clause (b) exceeds $50,000,000, and

                  (c)   the sale of accounts receivable of the Borrower and/or
its Subsidiaries pursuant to the Securitization.

        Section 6.8. SUBORDINATED DEBT. The Borrower will not effect or permit
any change in or amendment to any document or instrument pertaining to the
subordination, covenants, events of default, terms of payment or required
prepayments of any Subordinated Debt, give any notice of redemption or
prepayment or offer to repurchase under any such document or instrument or,
directly or indirectly, make any payment of principal of or interest on or in
redemption, retirement or repurchase of any Subordinated Debt, except that (a)
the Borrower may make regularly scheduled payments when required by the terms of
the Subordinated Debt, and (b) the Borrower may refinance all or a portion of
the Subordinated Debt so long as such refinancing Subordinated Debt (i) has a
maturity that is no earlier than the Subordinated Debt being refinanced and (ii)
is subordinated to the Obligations on terms at least as favorable to the Agent
and the Banks, in the opinion of the Agent and the Majority Banks, as the
Subordinated Debt being refinanced.

                 Section 7. FINANCIAL COVENANTS OF THE BORROWER.

        The Borrower covenants and agrees that, so long as any Revolving Credit
Loan or Revolving Credit Note is outstanding or any Bank has any obligation to
make any Revolving Credit Loans:

        Section 7.1. FIXED CHARGE COVERAGE RATIO. As at the end of each fiscal
quarter of the Borrower, the Borrower will not permit the ratio (the "FIXED
CHARGE COVERAGE RATIO") of (a) the sum of (i) Earnings Before Interest and Taxes
for the period of the four consecutive fiscal quarters (the "MEASUREMENT
PERIOD") ending on such date PLUS (ii) the Rental Expense for such Measurement
Period, to (b) the sum of (i) the Consolidated Total Interest Expense for such
Measurement Period PLUS (ii) the Rental Expense for such Measurement Period, to
be less than 1.50 to 1.

        Section 7.2. FUNDED DEBT TO EBITDA RATIO. As at the end of each fiscal
quarter of the Borrower, the Borrower will not permit the ratio of (a) Total
Funded Indebtedness as at such date to (b) Consolidated EBITDA for the period of
four consecutive fiscal quarters then ending, to be greater than 3.00 to 1.

        Section 7.3. MINIMUM CONSOLIDATED TANGIBLE NET WORTH. The Borrower will
not permit Consolidated Tangible Net Worth to be, as at the end of any fiscal
quarter, less than the sum of (a) $1,000,000,000, PLUS (b) 50% of the cumulative
positive Consolidated Net Income (calculated as at the end of each of the fiscal
quarters beginning with the first fiscal quarter ending after January 30, 1999),
with no deductions for losses, PLUS (c) 50% of the aggregate book value of all
additional Capital Stock issued by the Borrower since January 30, 1999.

<Page>
                                      -32-

                         Section 8. CLOSING CONDITIONS.

        The obligations of the Banks to make the initial Revolving Credit Loans
shall be subject to the satisfaction of the following conditions precedent:

        Section 8.1. LOAN DOCUMENTS. Each of the Loan Documents shall have been
duly executed and delivered by the respective parties thereto, shall be in full
force and effect and shall be in form and substance satisfactory to each of the
Banks. The Agent shall have received a fully executed copy of each such
document.

        Section 8.2. CERTIFIED COPIES OF CHARTER DOCUMENTS. The Agent shall have
received from the Borrower and each of the Guarantors a copy, certified by a
duly authorized officer of such Person to be true and complete on the Closing
Date, of each of (a) its charter or other incorporation documents as in effect
on such date of certification, and (b) its by-laws as in effect on such date.

        Section 8.3. CORPORATE ACTION. All corporate action necessary for the
valid execution, delivery and performance by the Borrower and each of the
Guarantors of this Credit Agreement and the other Loan Documents to which it is
or is to become a party shall have been duly and effectively taken, and evidence
thereof satisfactory to the Banks shall have been provided to the Agent.

        Section 8.4. INCUMBENCY CERTIFICATE. The Agent shall have received from
the Borrower and each of the Guarantors an incumbency certificate, dated as of
the Closing Date, signed by a duly authorized officer of the Borrower and each
Guarantor, as applicable, and giving the name and bearing a specimen signature
of each individual who shall be authorized: (a) to sign, in the name and to the
benefit of each of the Borrower and the Guarantors, each of the Loan Documents;
(b) with respect to the Borrower, to make Loan Requests and Conversion Requests;
and (c) to give notices and to take other action on its behalf under the Loan
Documents.

        Section 8.5. OPINION OF COUNSEL. The Agent shall have received favorable
legal opinions addressed to the Banks and the Agent, dated as of the Closing
Date, in form and substance satisfactory to the Banks and the Agent, from (a)
Jack A. VanWoerkom, Esq., general counsel to the Borrower and the Guarantors,
and (b) Hale and Dorr, special counsel to the Borrower and the Guarantors.

        Section 8.6. PAYMENT OF FEES. The Borrower shall have paid to the Agent
and the Arranger, as appropriate, the Agent Fees and all other fees and expenses
(including without limitation all reasonable legal fees and disbursements of the
Agent's Special Counsel) required to be paid by it.

        Section 8.7. COMPLIANCE CERTIFICATE. The Borrower shall have delivered
to the Banks a Compliance Certificate, dated as of the Closing Date, and based
on the financial statements of the Borrower for the fiscal quarter ended May 5,
2001.

        Section 8.8. NO MATERIAL ADVERSE CHANGE. The Agent shall be satisfied
that there shall have occurred no material adverse change in the business,
operations, assets, properties or condition of the Borrower or its Subsidiaries
since the Balance Sheet Date.

                    Section 9. CONDITIONS TO ALL BORROWINGS.

        The obligations of the Banks to make any Revolving Credit Loan, whether
on or after the Closing Date, shall also be subject to the satisfaction of the
following conditions precedent:

        Section 9.1. REPRESENTATIONS TRUE; NO EVENT OF DEFAULT. Each of the
representations and warranties of any of the Borrower and its Subsidiaries
contained in this Credit Agreement, the other Loan Documents or in any document
or instrument delivered pursuant to or in connection with this Credit Agreement
shall be true as of the date as of which they were made and shall also be true
at and as of the time of the making of such Revolving Credit Loan, with the same
effect as if made at and as of that time (except to the extent of changes
resulting from transactions contemplated or permitted by this Credit Agreement
and the other

<Page>
                                      -33-

Loan Documents and changes occurring in the ordinary course of business that
singly or in the aggregate are not materially adverse, and to the extent that
such representations and warranties relate expressly to an earlier date) and no
Default or Event of Default shall have occurred and be continuing.

        Section 9.2. NO LEGAL IMPEDIMENT. No change shall have occurred in any
law or regulations thereunder or interpretations thereof that in the reasonable
opinion of any Bank would make it illegal for such Bank to make such Revolving
Credit Loan.

        Section 9.3. GOVERNMENTAL REGULATION. Each Bank shall have received such
statements in substance and form reasonably satisfactory to such Bank as such
Bank shall require for the purpose of compliance with any applicable regulations
of the Comptroller of the Currency or the Board of Governors of the Federal
Reserve System.

        Section 9.4. PROCEEDINGS AND DOCUMENTS. All proceedings in connection
with the transactions contemplated by this Credit Agreement, the other Loan
Documents and all other documents incident thereto shall be reasonably
satisfactory in substance and in form to the Banks and to the Agent and the
Agent's Special Counsel, and the Banks, the Agent and such counsel shall have
received all information and such counterpart originals or certified or other
copies of such documents as the Agent may reasonably request.

                Section 10. EVENTS OF DEFAULT; ACCELERATION; ETC.

        Section 10.1. EVENTS OF DEFAULT AND ACCELERATION. If any of the
following events ("EVENTS OF DEFAULT" or, if the giving of notice or the lapse
of time or both is required, then, prior to such notice or lapse of time,
"DEFAULTS") shall occur and be continuing:

                  (a)   the Borrower shall fail to pay any principal of the
Revolving Credit Loans when the same shall become due and payable, whether at
the stated date of maturity or any accelerated date of maturity or at any other
date fixed for payment;

                  (b)   the Borrower or any Guarantor shall fail to pay any
interest on the Revolving Credit Loans, the Facility Fee, the Agent Fees or
other sums due hereunder or under any of the other Loan Documents, within five
(5) Business Days of the date when the same shall become due and payable,
whether at the stated date of maturity or any accelerated date of maturity or at
any other date fixed for payment;

                  (c)   the Borrower (i) shall fail to comply with any of its
covenants contained in Sections 5.4, 5.5, 5.10, 6 or 7 hereof, or (ii) shall
fail to comply with its covenant contained in Section 5.6 hereof and such
failure shall continue for thirty (30) days;

                  (d)   the Borrower or any of its Subsidiaries shall fail to
perform any term, covenant or agreement contained herein or in any of the other
Loan Documents (other than those specified elsewhere in this Section 10.1) for
thirty (30) days after written notice of such failure has been given to the
Borrower by the Agent;

                  (e)   any material representation or warranty of the Borrower
or any of its Subsidiaries in this Credit Agreement or any of the other Loan
Documents or in any other document or instrument delivered pursuant to or in
connection with this Credit Agreement shall prove to have been false in any
material respect upon the date when made or deemed to have been made or
repeated;

                  (f)   the Borrower or any of its Subsidiaries shall fail to
pay at maturity, or within any applicable period of grace, any obligation for
borrowed money or credit received or in respect of any Capitalized Leases or any
obligations with respect to interest rate protection arrangements or exchange
rate protection arrangements which, in the aggregate, represents Indebtedness
(calculated, with respect to interest rate protection arrangements and exchange
rate protection arrangements based on the notional

<Page>
                                      -34-

principal amount thereof) of $10,000,000 or more, or fail to observe or perform
any material term, covenant or agreement contained in any agreement by which it
is bound, evidencing or securing borrowed money or credit received or in respect
of any Capitalized Leases or evidencing any interest rate protection arrangement
or exchange rate protection arrangement which in the aggregate represents
Indebtedness (calculated, with respect to interest rate protection arrangements
and exchange rate protection arrangements based on the notional principal amount
thereof) of $10,000,000 or more, and for such period of time as would permit
(assuming the giving of appropriate notice if required) the holder or holders
thereof or of any obligations issued thereunder to accelerate the maturity
thereof;

                  (g)   the Borrower or any of its Subsidiaries shall make an
assignment for the benefit of creditors, or admit in writing its inability to
pay or generally fail to pay its debts as they mature or become due, or shall
petition or apply for the appointment of a trustee or other custodian,
liquidator or receiver of the Borrower or any of its Subsidiaries or of any
substantial part of the assets of the Borrower or any of its Subsidiaries or
shall commence any case or other proceeding relating to the Borrower or any of
its Subsidiaries under any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, dissolution or liquidation or similar law of any
jurisdiction, now or hereafter in effect, or shall take any action to authorize
or in furtherance of any of the foregoing, or if any such petition or
application shall be filed or any such case or other proceeding shall be
commenced against the Borrower or any of its Subsidiaries and shall not have
been dismissed within sixty (60) days, or the Borrower or any of its
Subsidiaries shall indicate its approval thereof, consent thereto or
acquiescence therein;

                  (h)   a decree or order is entered appointing any such
trustee, custodian, liquidator or receiver or adjudicating the Borrower or any
of its Subsidiaries bankrupt or insolvent, or approving a petition in any such
case or other proceeding, or a decree or order for relief is entered in respect
of the Borrower or any Subsidiary of the Borrower in an involuntary case under
federal bankruptcy laws as now or hereafter constituted;

                  (i)   there shall remain in force, undischarged, unsatisfied
and unstayed, for more than thirty (30) days, whether or not consecutive, any
final judgment against the Borrower or any of its Subsidiaries that, with other
outstanding final judgments, undischarged, against the Borrower or any of its
Subsidiaries exceeds in the aggregate $10,000,000;

                  (j)   with respect to any Guaranteed Pension Plan, an ERISA
Reportable Event shall have occurred and the Majority Banks shall have
determined in their reasonable discretion that such event reasonably could be
expected to result in liability of the Borrower or any of its Subsidiaries to
the PBGC or such Guaranteed Pension Plan in an aggregate amount exceeding
$10,000,000 and such event in the circumstances occurring reasonably could
constitute grounds for the termination of such Guaranteed Pension Plan by the
PBGC or for the appointment by the appropriate United States District Court of a
trustee to administer such Guaranteed Pension Plan; or a trustee shall have been
appointed by the United States District Court to administer such Plan; or the
PBGC shall have instituted proceedings to terminate such Guaranteed Pension
Plan;

                  (k)   the holders of all or any part of the Subordinated Debt
shall accelerate the maturity of all or any part of the Subordinated Debt or the
Subordinated Debt shall be prepaid, redeemed or repurchased in whole or in part,
in each case in violation of the provisions of this Credit Agreement;

                  (l)   if any of the Loan Documents shall be canceled,
terminated, revoked or rescinded, in each case otherwise than in accordance with
the terms thereof or with the express prior written agreement, consent or
approval of the Banks, or any action at law, suit or in equity or other legal
proceeding to cancel, revoke or rescind any of the Loan Documents shall be
commenced by or on behalf of the Borrower or any of its Subsidiaries party
thereto or any of their respective stockholders, or any court or any other
governmental or regulatory authority or agency of competent jurisdiction shall
make a determination that, or issue a judgment, order, decree or ruling to the
effect that, any one or more of the Loan Documents is illegal, invalid or
unenforceable in accordance with the terms thereof; or

<Page>
                                      -35-

                  (m)   a "CHANGE IN CONTROL" shall have occurred (which for the
purposes of this subsection (m) shall mean the occurrence of any of the
following events):

                     (i)   the acquisition by any Person (including any
syndicate or group deemed to be a "PERSON" under Section 13(d)(3) of the
Securities and Exchange Act of 1934, as amended) of beneficial ownership,
directly or indirectly, through a purchase, merger or other acquisition
transaction or series of transactions, of shares of Capital Stock of the
Borrower entitling such Person to exercise 50% or more of the total voting power
of all shares of Capital Stock of the Borrower entitled to vote generally in the
elections of directors (any shares of voting stock of which such person or group
is the beneficial owner that are not then outstanding being deemed outstanding
for purposes of calculating such percentage);

                    (ii)   any consolidation of the Borrower with, or merger of
the Borrower into, any other Person, any merger of another Person into the
Borrower, or any sale or transfer of all or substantially all of the assets of
the Borrower to another Person (other than a transfer of assets to one or more
Guarantors or a merger (A) which does not result in any reclassification,
conversion, exchange or cancellation of outstanding shares of Capital Stock of
the Borrower or (B) which is effected solely to change the jurisdiction of
incorporation of the Borrower); or

                   (iii)   during any consecutive two-year period, individuals
who at the beginning of such period constituted the Board of Directors of the
Borrower (together with any new directors whose election by such Board of
Directors or whose nomination for election by the stockholders of the Borrower
was approved by a vote of 66-2/3% of the directors then still in office who were
either directors at the beginning of such period or whose election or nomination
for election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors of the Borrower then in office;

                  (n)   any of (i) the Borrower or any of its Subsidiaries shall
fail to make any payment under the Securitization when the same becomes due and
payable (whether by scheduled maturity, required prepayment, acceleration,
demand, or otherwise), and any such failure shall continue after the applicable
grace period, if any, specified in the documents relating to the Securitization,
or (ii) the "TERMINATION DATE" (under and as defined in the Receivables Purchase
Agreement, dated as of October 27, 2000, among the Borrower, Lincolnshire
Funding, LLC, Corporate Receivables Corporation, the financial institutions from
time to time party thereto as Purchasers, and Citicorp North America, Inc., as
Agent) shall have been declared to have occurred pursuant to Section 7.01 of
such Receivables Purchase Agreement, or (iii) any "EVENT OF TERMINATION" (under
and as defined in any of the documents relating to the Securitization) shall
occur and continue after the applicable grace period, if any, specified in such
documents if either, pursuant to such documents, (A) the existence of such Event
of Termination would cause the Termination Date to occur or (B) the existence of
such Event of Termination would permit the Purchaser under such documents to
declare the Termination Date to have occurred and such Event of Termination
continues unremedied or unwaived for a period of more than ninety (90) days
after the date that the Agent gives notice to the Borrower of such Event of
Termination;

then, and in any such event, so long as the same may be continuing, the Agent
may, and upon the request of the Majority Banks shall, by notice in writing to
the Borrower declare all amounts owing with respect to this Credit Agreement,
the Revolving Credit Notes and the other Loan Documents to be, and they shall
thereupon forthwith become, immediately due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower; PROVIDED that in the event of any Event of Default
specified in Sections 10.1(g) or 10.1(h) hereof, all such amounts shall become
immediately due and payable automatically and without any requirement of notice
from the Agent or any Bank.

        Section 10.2. TERMINATION OF COMMITMENTS. If any one or more of the
Events of Default specified in Sections 10.1(g) or 10.1(h) hereof shall occur,
any unused portion of the credit hereunder shall forthwith terminate and each of
the Banks shall be relieved of all further obligations to make Revolving Credit
Loans to the Borrower. If any other Event of Default shall have occurred and be
continuing, the Agent may and, upon the request of the Majority Banks, shall, by
notice to the Borrower, terminate the unused portion of

<Page>
                                      -36-

the credit hereunder, and upon such notice being given such unused portion of
the credit hereunder shall terminate immediately and each of the Banks shall be
relieved of all further obligations to make Revolving Credit Loans. No
termination of the credit hereunder shall relieve the Borrower of any of the
Obligations.

        Section 10.3. REMEDIES. In case any one or more of the Events of Default
shall have occurred and be continuing, and whether or not the Banks shall have
accelerated the maturity of the Revolving Credit Loans pursuant to Section 10.1
hereof, each Bank, if owed any amount with respect to the Revolving Credit Loans
and upon the consent of the Majority Banks, may proceed to protect and enforce
its rights by suit in equity, action at law or other appropriate proceeding,
whether for the specific performance of any covenant or agreement contained in
this Credit Agreement and the other Loan Documents or any instrument pursuant to
which the Obligations to such Bank are evidenced, including as permitted by
applicable law the obtaining of the EX PARTE appointment of a receiver, and, if
such amount shall have become due, by declaration or otherwise, proceed to
enforce the payment thereof or any other legal or equitable right of such Bank.
No remedy herein conferred upon any Bank or the Agent or the holder of any
Revolving Credit Note is intended to be exclusive of any other remedy and each
and every remedy shall be cumulative and shall be in addition to every other
remedy given hereunder or now or hereafter existing at law or in equity or by
statute or any other provision of law.

                               Section 11. SETOFF.

        Regardless of the adequacy of any collateral, during the continuance of
any Event of Default, any deposits or other sums credited by or due from any of
the Banks to the Borrower and any securities or other property of the Borrower
in the possession of such Bank may be applied to or set off by such Bank against
the payment of Obligations and any and all other liabilities, direct, or
indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, of the Borrower to such Bank. Each of the Banks agrees with
each other Bank that (a) if an amount to be set off is to be applied to
Indebtedness of the Borrower to such Bank, other than Indebtedness evidenced by
the Revolving Credit Notes held by such Bank, such amount shall be applied
ratably to such other Indebtedness (except that no amounts shall be applied to
documentary letters of credit) and to the Indebtedness evidenced by all such
Revolving Credit Notes held by such Bank, and (b) if such Bank shall receive
from the Borrower, whether by voluntary payment, exercise of the right of
setoff, counterclaim, cross action, enforcement of the claim evidenced by the
Revolving Credit Notes held by such Bank by proceedings against the Borrower at
law or in equity or by proof thereof in bankruptcy, reorganization, liquidation,
receivership or similar proceedings, or otherwise, and shall retain and apply to
the payment of the Revolving Credit Note or Revolving Credit Notes held by such
Bank any amount in excess of its ratable portion of the payments received by all
of the Banks with respect to the Revolving Credit Notes held by all of the
Banks, such Bank will make such disposition and arrangements with the other
Banks with respect to such excess, either by way of distribution, PRO TANTO
assignment of claims, subrogation or otherwise as shall result in each Bank
receiving in respect of the Revolving Credit Notes held by it, its proportionate
payment as contemplated by this Credit Agreement; PROVIDED that if all or any
part of such excess payment is thereafter recovered from such Bank, such
disposition and arrangements shall be rescinded and the amount restored to the
extent of such recovery, but without interest.

                             Section 12. THE AGENTS.

        Section 12.1. AUTHORIZATION.

        (a)     The Agent is authorized to take such action on behalf of each of
the Banks and to exercise all such powers as are hereunder and under any of the
other Loan Documents and any related documents delegated to the Agent, together
with such powers as are reasonably incident thereto, PROVIDED that no duties or
responsibilities not expressly assumed herein or therein shall be implied to
have been assumed by the Agent.

        (b)     The relationship between the Agent and the Banks is and shall be
that of an independent contractor. The use of the term "AGENT" herein is for
convenience only and is used to describe, as a form of

<Page>
                                      -37-

convention, the independent contractual relationship between the Agent and each
of the Banks. Nothing contained in this Agreement or any of the other Loan
Documents shall be construed to create an agency, trust or other fiduciary
relationship between the Agent and any of the Banks.

        (c)     As an independent contractor empowered by the Banks to exercise
certain rights and perform certain duties and responsibilities hereunder and
under the other Loan Documents, the Agent is nevertheless a "REPRESENTATIVE" of
the Banks, as that term is defined in Article 1 of the Uniform Commercial Code,
for purposes of actions for the benefit of the Banks with respect to all
collateral security and guaranties contemplated by the Loan Documents. Such
actions include the designation of the Agent as "SECURED PARTY", "MORTGAGEE",
"LIENHOLDER" or the like on all financing statements, motor vehicle titles and
other documents and instruments, whether recorded or otherwise, relating to the
attachment, perfection, priority or enforcement of any security interests,
mortgages, liens or deeds of trust in collateral security intended to secure the
payment or performance of any of the Obligations, all for the benefit of the
Banks and the Agent.

        Section 12.2. EMPLOYEES AND AGENTS. The Agent may exercise its powers
and execute its duties by or through employees or agents and shall be entitled
to take, and to rely on, advice of counsel concerning all matters pertaining to
its rights and duties under this Credit Agreement and the other Loan Documents.
The Agent may utilize the services of such Persons as the Agent in its sole
discretion may reasonably determine, and all reasonable fees and expenses of any
such Persons shall be paid by the Borrower.

        Section 12.3. NO LIABILITY. Neither the Agent nor any of its
shareholders, directors, officers or employees nor any other Person assisting
them in their duties nor any agent or employee thereof, shall be liable to the
Banks for any waiver, consent or approval given or any action taken, or omitted
to be taken, in good faith by it or them hereunder or under any of the other
Loan Documents, or in connection herewith or therewith, or be responsible for
the consequences of any oversight or error of judgment whatsoever, except that
the Agent or such other Person, as the case may be, may be liable for losses due
to its willful misconduct or gross negligence.

        Section 12.4. NO REPRESENTATIONS. The Agent shall not be responsible for
the execution or validity or enforceability of this Credit Agreement, the
Revolving Credit Notes, any of the other Loan Documents or any instrument at any
time constituting, or intended to constitute, collateral security for the
Revolving Credit Notes, or for the value of any such collateral security or for
the validity, enforceability or collectability of any such amounts owing with
respect to the Revolving Credit Notes, or for any recitals or statements,
warranties or representations made herein or in any of the other Loan Documents
or in any certificate or instrument hereafter furnished to it by or on behalf of
the Borrower or any of its Subsidiaries, or be bound to ascertain or inquire as
to the performance or observance of any of the terms, conditions, covenants or
agreements herein or in any instrument at any time constituting, or intended to
constitute, collateral security for the Revolving Credit Notes or to inspect any
of the properties, books or records of the Borrower or any of its Subsidiaries.
The Agent shall not be bound to ascertain whether any notice, consent, waiver or
request delivered to it by the Borrower or any holder of any of the Revolving
Credit Notes shall have been duly authorized or is true, accurate and complete.
The Agent has not made nor does it now make any representations or warranties,
express or implied, nor does it assume any liability to the Banks, with respect
to the creditworthiness or financial conditions of the Borrower or any of its
Subsidiaries. Each Bank acknowledges that it has, independently and without
reliance upon the Agent or any other Bank, and based upon such information and
documents as it has deemed appropriate, made its own credit analysis and
decision to enter into this Credit Agreement.

        Section 12.5. PAYMENTS.

                  Section 12.5.1. PAYMENTS TO AGENT. A payment by the Borrower
to the Agent hereunder or any of the other Loan Documents for the account of any
Bank shall constitute a payment to such Bank. The Agent agrees promptly to
distribute to each Bank such Bank's PRO RATA share of payments received by the
Agent for the account of the Banks except as otherwise expressly provided herein
or in any of the other Loan Documents.

<Page>
                                       38

                  Section 12.5.2. DISTRIBUTION BY AGENT. If in the opinion of
the Agent the distribution of any amount received by it in such capacity
hereunder, under the Revolving Credit Notes or under any of the other Loan
Documents might involve it in liability, it may refrain from making distribution
until its right to make distribution shall have been adjudicated by a court of
competent jurisdiction. If a court of competent jurisdiction shall adjudge that
any amount received and distributed by the Agent is to be repaid, each Person to
whom any such distribution shall have been made shall either repay to the Agent
its proportionate share of the amount so adjudged to be repaid or shall pay over
the same in such manner and to such Persons as shall be determined by such
court.

                  Section 12.5.3. DELINQUENT BANKS. Notwithstanding anything to
the contrary contained in this Credit Agreement or any of the other Loan
Documents, any Bank that fails (a) to make available to the Agent its PRO RATA
share of any Revolving Credit Loan or (b) to comply with the provisions of
Section 11 hereof with respect to making dispositions and arrangements with the
other Banks, where such Bank's share of any payment received, whether by setoff
or otherwise, is in excess of its PRO RATA share of such payments due and
payable to all of the Banks, in each case as, when and to the full extent
required by the provisions of this Credit Agreement, shall be deemed delinquent
(a "DELINQUENT BANK") and shall be deemed a Delinquent Bank until such time as
such delinquency is satisfied. A Delinquent Bank shall be deemed to have
assigned any and all payments due to it from the Borrower, whether on account of
outstanding Revolving Credit Loans, interest, fees or otherwise, to the
remaining nondelinquent Banks for application to, and reduction of, their
respective PRO RATA shares of all outstanding Revolving Credit Loans. The
Delinquent Bank hereby authorizes the Agent to distribute such payments to the
nondelinquent Banks in proportion to their respective PRO RATA shares of all
outstanding Revolving Credit Loans. A Delinquent Bank shall be deemed to have
satisfied in full a delinquency when and if, as a result of application of the
assigned payments to all outstanding Revolving Credit Loans of the nondelinquent
Banks, the Banks' respective PRO RATA shares of all outstanding Revolving Credit
Loans have returned to those in effect immediately prior to such delinquency and
without giving effect to the nonpayment causing such delinquency.

        Section 12.6. HOLDERS OF REVOLVING CREDIT NOTES. The Agent may deem and
treat the payee of any Revolving Credit Note as the absolute owner or purchaser
thereof for all purposes hereof until it shall have been furnished in writing
with a different name by such payee or by a subsequent holder, assignee or
transferee.

        Section 12.7. INDEMNITY. The Banks ratably agree hereby to indemnify and
hold harmless the Agent from and against any and all claims, actions and suits
(whether groundless or otherwise), losses, damages, costs, expenses (including
any expenses for which the Agent has not been reimbursed by the Borrower as
required by Section 14 hereof), and liabilities of every nature and character
arising out of or related to this Credit Agreement, the Revolving Credit Notes
or any of the other Loan Documents or the transactions contemplated or evidenced
hereby or thereby, or the Agent's actions taken hereunder or thereunder, except
to the extent that any of the same shall be directly caused by the Agent's
willful misconduct or gross negligence.

        Section 12.8. AGENT AS BANK; ETC. In its individual capacity, Fleet
shall have the same obligations and the same rights, powers and privileges in
respect to its Commitment and the Revolving Credit Loans made by it, and as the
holder of any of the Revolving Credit Notes, as it would have were it not also
the Agent.

        Section 12.9. RESIGNATION. The Agent may resign at any time by giving
sixty (60) days' prior written notice thereof to the Banks and the Borrower.
Upon any such resignation, the Majority Banks shall have the right to appoint a
successor Agent. Unless a Default or Event of Default shall have occurred and be
continuing, such successor Agent shall be reasonably acceptable to the Borrower.
If no successor Agent shall have been so appointed by the Majority Banks and
shall have accepted such appointment within thirty (30) days after the retiring
Agent's giving of notice of resignation, then the retiring Agent may, on behalf
of the Banks, appoint a successor Agent reasonably acceptable to the Borrower,
which shall be a financial institution having a rating of not less than A or its
equivalent by S&P. Upon the acceptance of any appointment as Agent hereunder by
a successor Agent, such successor Agent shall thereupon succeed to

<Page>
                                      -39-

and become vested with all the rights, powers, privileges and duties of the
retiring Agent, and the retiring Agent shall be discharged from its duties and
obligations hereunder. After any retiring Agent's resignation, the provisions of
this Credit Agreement and the other Loan Documents shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as Agent.

        Section 12.10. NOTIFICATION OF DEFAULTS AND EVENTS OF DEFAULT. Each Bank
hereby agrees that, upon learning of the existence of a Default or an Event of
Default, it shall promptly notify the Agent thereof. The Agent hereby agrees
that upon receipt of any notice under this Section 12.10 it shall promptly
notify the other Banks and the Borrower of the existence of such Default or
Event of Default.

        Section 12.11. DUTIES OF DOCUMENTATION AGENTS. Neither of the
Documentation Agents shall have any right, power, obligation, liability,
responsibility or duty under this Credit Agreement or any of the other Loan
Documents other than those applicable to them in their capacity as Banks.

                              Section 13. EXPENSES.

        The Borrower agrees to pay (a) the Agent's reasonable costs of producing
and reproducing this Credit Agreement, the other Loan Documents and the other
agreements and instruments mentioned herein, (b) any taxes (including any
interest and penalties in respect thereto) payable by the Agent or any of the
Banks (other than taxes based upon the Agent's or any Bank's net income or taxes
not payable by the Borrower pursuant to the provisions of this Credit Agreement)
on the transactions contemplated by this Credit Agreement (the Borrower hereby
agreeing to indemnify the Agent and each Bank with respect thereto), (c) the
reasonable fees, expenses and disbursements of the Agent's Special Counsel or
any local counsel to the Agent incurred in connection with the preparation,
administration or interpretation of the Loan Documents and other instruments
mentioned herein, each closing hereunder, and amendments, modifications,
approvals, consents or waivers hereto or hereunder, (d) the reasonable fees,
expenses and disbursements of the Agent incurred by the Agent in connection with
the preparation, administration or interpretation of the Loan Documents and
other instruments mentioned herein, including all insurance premiums and
surveyor, engineering and appraisal charges, (e) all reasonable out-of-pocket
expenses (including, without limitation, reasonable attorneys' fees (including
the allocated costs of in-house counsel) and costs and reasonable accounting,
appraisal, investment banking and similar professional fees and charges)
incurred by the Agent or any Bank in connection with (i) the enforcement of or
preservation of rights under any of the Loan Documents against the Borrower or
any of its Subsidiaries or the administration thereof after the occurrence of an
Event of Default and (ii) any other litigation, proceeding or dispute whether
arising hereunder or otherwise, in any way related to any Bank's or the Agent's
relationship with the Borrower or any of its Subsidiaries (other than any
litigation, proceeding or dispute referred to in Section 14 hereof) but only if
such Bank or the Agent is the prevailing party in such litigation, proceeding or
dispute, and (f) all reasonable fees, expenses and disbursements of the Agent
incurred in connection with UCC searches. The Borrower shall not pay the fees,
expenses and disbursements incurred by any Bank other than the Agent in
connection with the review and preparation of this Credit Agreement, the other
Loan Documents and the other agreements and instruments mentioned herein. The
covenants of this Section 13 shall survive payment or satisfaction of all other
Obligations.

                          Section 14. INDEMNIFICATION.

        The Borrower agrees to indemnify and hold harmless the Agent, the
Arranger and the Banks from and against any and all claims, actions and suits
whether groundless or otherwise, and from and against any and all liabilities,
losses, damages and expenses of every nature and character arising out of this
Credit Agreement or any of the other Loan Documents or the transactions
contemplated hereby including, without limitation, (a) any actual or proposed
use by the Borrower or any of its Subsidiaries of the proceeds of any of the
Revolving Credit Loans, (b) the Borrower or any of its Subsidiaries entering
into or performing this Credit Agreement or any of the other Loan Documents or
(c) with respect to the Borrower and its Subsidiaries and their respective
properties and assets, the violation of any Environmental Law, the presence,
disposal, escape, seepage, leakage, spillage, discharge, emission, release or
threatened release of any Hazardous Substances or any action, suit, proceeding
or investigation brought or threatened with

<Page>
                                      -40-

respect to any Hazardous Substances (including, but not limited to, claims with
respect to wrongful death, personal injury or damage to property), in each case
including, without limitation, the reasonable fees and disbursements of counsel
incurred in connection with any such investigation, litigation or other
proceeding. In litigation, or the preparation therefor, the Banks, the Arranger
and the Agent shall be entitled to select their own counsel and, in addition to
the foregoing indemnity, the Borrower agrees to pay promptly the reasonable fees
and expenses of such counsel. If, and to the extent that the obligations of the
Borrower under this Section 14 are unenforceable for any reason, the Borrower
hereby agrees to make the maximum contribution to the payment in satisfaction of
such obligations which is permissible under applicable law. The covenants
contained in this Section 14 shall survive payment or satisfaction in full of
all other Obligations.

                     Section 15. SURVIVAL OF COVENANTS, ETC.

        All covenants, agreements, representations and warranties made herein,
in the Revolving Credit Notes, in any of the other Loan Documents or in any
documents or other papers delivered by or on behalf of the Borrower or any of
its Subsidiaries pursuant hereto shall be deemed to have been relied upon by the
Banks and the Agent, notwithstanding any investigation heretofore or hereafter
made by any of them, and shall survive the making by the Banks of any of the
Revolving Credit Loans or the issuance of any Letters of Credit, as herein
contemplated, and shall continue in full force and effect so long as any amount
due under this Credit Agreement or the Revolving Credit Notes or the other Loan
Documents remains outstanding or any Bank has any obligation to make any
Revolving Credit Loans, and for such further time as may be otherwise expressly
specified in this Credit Agreement. All statements contained in any certificate
or other paper delivered to any Bank or the Agent at any time by or on behalf of
the Borrower or any of its Subsidiaries pursuant hereto or in connection with
the transactions contemplated hereby shall constitute representations and
warranties by the Borrower or such Subsidiary hereunder.

                    Section 16. ASSIGNMENT AND PARTICIPATION.

        Section 16.1. CONDITIONS TO ASSIGNMENT BY BANKS. Except as provided
herein, each Bank may assign to one or more Eligible Assignees all or a portion
of its interests, rights and obligations under this Credit Agreement (including
all or a portion of its Commitment Percentage and Commitment and the same
portion of the Revolving Credit Loans at the time owing to it and the Revolving
Credit Notes held by it); PROVIDED that (a) each of the Agent and the Borrower
shall have given its prior written consent to such assignment, which consent, in
each case, will not be unreasonably withheld, (b) each such assignment shall be
of a constant, and not a varying, percentage of all the assigning Bank's rights
and obligations under this Credit Agreement, (c) each assignment shall be in an
amount that is a minimum of $5,000,000 or an integral multiple of $500,000 in
excess thereof, unless such assignment is to an existing Bank, in which case
there shall be no such minimum amount, and (d) the parties to such assignment
shall execute and deliver to the Agent, for recording in the Register (as
hereinafter defined), an Assignment and Acceptance, substantially in the form of
EXHIBIT D attached hereto (an "ASSIGNMENT AND ACCEPTANCE"), together with any
Revolving Credit Notes subject to such assignment. Upon such execution,
delivery, acceptance and recording, from and after the effective date specified
in each Assignment and Acceptance, which effective date shall be at least five
(5) Business Days after the execution thereof, (i) the assignee thereunder shall
be a party hereto and, to the extent provided in such Assignment and Acceptance,
have the rights and obligations of a Bank hereunder, and (ii) the assigning Bank
shall, to the extent provided in such assignment and upon payment to the Agent
of the registration fee referred to in Section 16.3 hereof, be released from its
obligations under this Credit Agreement.

        Section 16.2. CERTAIN REPRESENTATIONS AND WARRANTIES; LIMITATIONS;
COVENANTS. By executing and delivering an Assignment and Acceptance, the parties
to the assignment thereunder confirm to and agree with each other and the other
parties hereto as follows: (a) other than the representation and warranty that
it is the legal and beneficial owner of the interest being assigned thereby free
and clear of any adverse claim, the assigning Bank makes no representation or
warranty, express or implied, and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Credit Agreement, the other Loan
Documents or any other instrument or document furnished

<Page>
                                      -41-

pursuant hereto or the attachment, perfection or priority of any security
interest or mortgage; (b) the assigning Bank makes no representation or warranty
and assumes no responsibility with respect to the financial condition of the
Borrower and its Subsidiaries or any other Person primarily or secondarily
liable in respect of any of the Obligations, or the performance or observance by
the Borrower and its Subsidiaries or any other Person primarily or secondarily
liable in respect of any of the Obligations of any of their obligations under
this Credit Agreement or any of the other Loan Documents or any other instrument
or document furnished pursuant hereto or thereto; (c) such assignee confirms
that it has received a copy of this Credit Agreement, together with copies of
the most recent financial statements referred to in Sections 4.4 and 5.4 hereof
and such other documents and information as it has deemed appropriate to make
its own credit analysis and decision to enter into such Assignment and
Acceptance; (d) such assignee will, independently and without reliance upon the
assigning Bank, the Agent or any other Bank and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Credit Agreement; (e)
such assignee represents and warrants that it is an Eligible Assignee; (f) such
assignee appoints and authorizes the Agent to take such action as agent on its
behalf and to exercise such powers under this Credit Agreement and the other
Loan Documents as are delegated to the Agent by the terms hereof or thereof,
together with such powers as are reasonably incidental thereto; (g) such
assignee agrees that it will perform in accordance with their terms all of the
obligations that by the terms of this Credit Agreement are required to be
performed by it as a Bank; and (h) such assignee represents and warrants that it
is legally authorized to enter into such Assignment and Acceptance.

        Section 16.3. REGISTER. The Agent shall maintain a copy of each
Assignment and Acceptance delivered to it and a register or similar list (the
"REGISTER") for the recordation of the names and addresses of the Banks and the
Commitment Percentage of, and principal amount of the Revolving Credit Loans
owing to the Banks from time to time. The entries in the Register shall be
conclusive, in the absence of manifest error, and the Borrower, the Agent and
the Banks may treat each Person whose name is recorded in the Register as a Bank
hereunder for all purposes of this Credit Agreement. The Register shall be
available for inspection by the Borrower and the Banks at any reasonable time
and from time to time upon reasonable prior notice. Upon each such recordation,
other than with respect to assignments by any Bank to (a) any Affiliate of such
Bank, (b) any of the twelve (12) Federal Reserve Banks as provided in Section
16.8 hereof or (c) any other Bank hereunder, the assigning Bank agrees to pay to
the Agent a registration fee in the sum of $2,500.

        Section 16.4. NEW REVOLVING CREDIT NOTES. Upon its receipt of an
Assignment and Acceptance executed by the parties to such assignment, together
with each Note subject to such assignment, the Agent shall (a) record the
information contained therein in the Register, and (b) give prompt notice
thereof to the Borrower and the Banks (other than the assigning Bank). Within
five (5) Business Days after receipt of such notice, the Borrower, at its own
expense, shall execute and deliver to the Agent, in exchange for each
surrendered Revolving Credit Note, a new Revolving Credit Note to the order of
such Eligible Assignee in an amount equal to the amount assumed by such Eligible
Assignee pursuant to such Assignment and Acceptance and, if the assigning Bank
has retained some portion of its obligations hereunder, a new Revolving Credit
Note to the order of the assigning Bank in an amount equal to the amount
retained by it hereunder. Such new Revolving Credit Notes shall provide that
they are replacements for the surrendered Revolving Credit Notes, shall be in an
aggregate principal amount equal to the aggregate principal amount of the
surrendered Revolving Credit Notes, shall be dated the effective date of such
Assignment and Acceptance and shall otherwise be substantially the form of the
assigned Revolving Credit Notes. The surrendered Revolving Credit Notes shall be
canceled and returned to the Borrower.

        Section 16.5. PARTICIPATIONS. Each Bank may sell participations to one
or more banks or other entities in all or a portion of such Bank's rights and
obligations under this Credit Agreement and the other Loan Documents; PROVIDED
that (a) each such participation shall be in an amount of not less than
$5,000,000, (b) any such sale or participation shall not affect the rights and
duties of the selling Bank hereunder to the Borrower and (c) the only rights
granted to the participant pursuant to such participation arrangements with
respect to waivers, amendments or modifications of the Loan Documents shall be
the rights to approve waivers, amendments or modifications that would (i) reduce
the principal of or the interest rate on any

<Page>
                                      -42-

Revolving Credit Loans, (ii) extend the term or increase the amount of the
Commitment of such Bank as it relates to such participant, (iii) reduce the
amount of any Facility Fees to which such participant is entitled, (iv) extend
any regularly scheduled payment date for principal or interest or (v) release
any collateral for the Obligations.

        Section 16.6. DISCLOSURE. The Borrower agrees that in addition to
disclosures made in accordance with standard and customary banking practices any
Bank may disclose information obtained by such Bank pursuant to this Credit
Agreement to assignees or participants and with the written consent of the
Borrower, such consent not to be unreasonably withheld, potential assignees or
participants hereunder; PROVIDED that such assignees or participants or
potential assignees or participants shall agree (a) to treat in confidence such
information unless such information otherwise becomes public knowledge, (b) not
to disclose such information to a third party, except as required by law or
legal process, (c) not to make use of such information for purposes of
transactions unrelated to such contemplated assignment or participation and (d)
to enter into a confidentiality agreement with the Borrower evidencing the
foregoing.

        Section 16.7. ASSIGNEE OR PARTICIPANT AFFILIATED WITH THE BORROWER. If
any assignee Bank is an Affiliate of the Borrower, then any such assignee Bank
shall have no right to vote as a Bank hereunder or under any of the other Loan
Documents for purposes of granting consents or waivers or for purposes of
agreeing to amendments or other modifications to any of the Loan Documents or
for purposes of making requests to the Agent pursuant to Sections 10.1 or 10.2
hereof, and the determination of the Majority Banks shall for all purposes of
this Credit Agreement and the other Loan Documents be made without regard to
such assignee Bank's interest in any of the Revolving Credit Loans. If any Bank
sells a participating interest in any of the Revolving Credit Loans to a
participant, and such participant is the Borrower or an Affiliate of the
Borrower, then such transferor Bank shall promptly notify the Agent of the sale
of such participation. A transferor Bank shall have no right to vote as a Bank
hereunder or under any of the other Loan Documents for purposes of granting
consents or waivers or for purposes of agreeing to amendments or modifications
to any of the Loan Documents or for purposes of making requests to the Agent
pursuant to Sections 10.1 or 10.2 hereof to the extent that such participation
is beneficially owned by the Borrower or any Affiliate of the Borrower, and the
determination of the Majority Banks shall for all purposes of this Credit
Agreement and the other Loan Documents be made without regard to the interest of
such transferor Bank in the Revolving Credit Loans to the extent of such
participation.

        Section 16.8. MISCELLANEOUS ASSIGNMENT PROVISIONS. Any assigning Bank
shall retain its rights to be indemnified pursuant to Section 14 hereof with
respect to any claims or actions arising prior to the date of such assignment.
If any assignee Bank is not incorporated under the laws of the United States of
America or any state thereof, it shall, prior to the date on which any interest
or fees are payable hereunder or under any of the other Loan Documents for its
account, deliver to the Borrower and the Agent certification as to its exemption
from deduction or withholding of any United States federal income taxes.
Anything contained in this Section 16 to the contrary notwithstanding, any Bank
may at any time pledge all or any portion of its interest and rights under this
Credit Agreement (including all or any portion of its Revolving Credit Notes) to
any of the twelve Federal Reserve Banks organized under Section 4 of the Federal
Reserve Act, 12 U.S.C. Section 341 and may at any time assign all or any portion
of its interest and rights under this Credit Agreement (including all or any
portion of its Revolving Credit Notes) to any Affiliate of such Bank (provided
that such assignment to such Affiliate does not impose any additional tax
liabilities on the Borrower), in each case without payment to the Agent of the
registration fee as provided in Section 16.3 hereof. No such pledge or
assignment or the enforcement thereof shall release the Pledgor or Assignor Bank
from its obligations hereunder or under any of the other Loan Documents.

        Section 16.9. ASSIGNMENT BY BORROWER. The Borrower shall not assign or
transfer any of its rights or obligations under any of the Loan Documents
without the prior written consent of each of the Banks.

                            Section 17. NOTICES, ETC.

        Except as otherwise expressly provided in this Credit Agreement, all
notices and other communications made or required by this Credit Agreement or
the Revolving Credit Notes shall be in

<Page>
                                      -43-

writing and shall be delivered in hand, mailed by United States registered or
certified first class mail, postage prepaid, sent by overnight courier, or sent
by telegraph, telecopy, facsimile or telex and confirmed by delivery via courier
or postal service, addressed as follows:

                  (a)   if to the Borrower, at 500 Staples Drive, Framingham,
MA 01701, Attention: Mr. William Swanson, or at such other address for notice as
the Borrower shall last have furnished in writing to the Person giving the
notice, with a copy to Jack A. VanWoerkom, Esq., Senior Vice President and
General Counsel, Staples, Inc., 500 Staples Drive, Framingham, MA 01701;

                  (b)   if to the Agent, at 100 Federal Street, Boston,
Massachusetts 02110, USA, Attention: Susan Pardus-Galland, Director, or such
other address for notice as the Agent shall last have furnished in writing to
the Person giving the notice; and

                  (c)   if to any Bank, at such Bank's address set forth on
SCHEDULE 1 hereto, or such other address for notice as such Bank shall have last
furnished in writing to the Person giving the notice.

        Any such notice or demand shall be deemed to have been duly given or
made and to have become effective (i) if delivered by hand, overnight courier or
facsimile to a responsible officer of the party to which it is directed, at the
time of the receipt thereof by such officer and (ii) if sent by registered or
certified first-class mail return receipt requested, postage prepaid, on the
third Business Day following the mailing thereof.

                           Section 18. GOVERNING LAW.

        THIS CREDIT AGREEMENT AND, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED
THEREIN, EACH OF THE OTHER LOAN DOCUMENTS ARE CONTRACTS UNDER THE LAWS OF THE
COMMONWEALTH OF MASSACHUSETTS AND SHALL FOR ALL PURPOSES BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID COMMONWEALTH (EXCLUDING THE
LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW). THE BORROWER AGREES THAT ANY
SUIT FOR THE ENFORCEMENT OF THIS CREDIT AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS OR
ANY FEDERAL COURT SITTING IN SUCH STATE AND CONSENTS TO THE NONEXCLUSIVE
JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE
UPON THE BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN SECTION 17 HEREOF. THE
BORROWER HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN
INCONVENIENT COURT.

                              Section 19. HEADINGS.

        The captions in this Credit Agreement are for convenience of reference
only and shall not define or limit the provisions hereof.

                            Section 20. COUNTERPARTS.

        This Credit Agreement and any amendment hereof may be executed in
several counterparts and by each party on a separate counterpart, each of which
when executed and delivered shall be an original, and all of which together
shall constitute one instrument. In proving this Credit Agreement it shall not
be necessary to produce or account for more than one such counterpart signed by
the party against whom enforcement is sought.

<Page>
                                      -44-

                       Section 21. ENTIRE AGREEMENT, ETC.

        The Loan Documents and any other documents executed in connection
herewith or therewith express the entire understanding of the parties with
respect to the transactions contemplated hereby. Neither this Credit Agreement
nor any term hereof may be changed, waived, discharged or terminated, except as
provided in Section  23 hereof.

                        Section 22. WAIVER OF JURY TRIAL.

        The Borrower hereby waives its right to a jury trial with respect to any
action or claim arising out of any dispute in connection with this Credit
Agreement, the Revolving Credit Notes or any of the other Loan Documents, any
rights or obligations hereunder or thereunder or the performance of which rights
and obligations. Except as prohibited by law, the Borrower hereby waives any
right it may have to claim or recover in any litigation referred to in the
preceding sentence any special, exemplary, punitive or consequential damages or
any damages other than, or in addition to, actual damages. The Borrower (a)
certifies that no representative, agent or attorney of any Bank or the Agent has
represented, expressly or otherwise, that such Bank or the Agent would not, in
the event of litigation, seek to enforce the foregoing waivers and (b)
acknowledges that the Agent and the Banks have been induced to enter into this
Credit Agreement, the other Loan Documents to which it is a party by, among
other things, the waivers and certifications contained herein.

                 Section 23. CONSENTS, AMENDMENTS, WAIVERS, ETC.

        Any consent or approval required or permitted by this Credit Agreement
to be given by the Banks may be given, and any term of this Credit Agreement,
the other Loan Documents or any other instrument related hereto or mentioned
herein may be amended, and the performance or observance by the Borrower or any
of its Subsidiaries of any terms of this Credit Agreement, the other Loan
Documents or such other instrument or the continuance of any Default or Event of
Default may be waived (either generally or in a particular instance and either
retroactively or prospectively) with, but only with, the written consent of the
Borrower and the written consent of the Majority Banks. Notwithstanding the
foregoing, the rate of interest on the Revolving Credit Notes, the term of the
Revolving Credit Notes, the regularly scheduled payment date for principal or
interest on the Revolving Credit Notes, the Commitment Amounts of the Banks, and
the scheduled payment date for and the amount of any Facility Fees hereunder,
may not be changed without the written consent of the Borrower and the written
consent of each Bank affected thereby; the principal amount of any Revolving
Credit Loans may not be forgiven without the written consent of each Bank
affected thereby; this Section 23 may not be changed without the written consent
of the Borrower and the written consent of all of the Banks; the definition of
Majority Banks may not be amended without the written consent of all of the
Banks; the Agent may not release any guaranty for the Obligations (except as
provided in Section 3.13 hereof) without the written consent of all the Banks;
and the amount of the Agent Fees payable for the account of the Agent and
Section 12 hereof may not be amended without the written consent of the Agent.
No waiver shall extend to or affect any obligation not expressly waived or
impair any right consequent thereon. No course of dealing or delay or omission
on the part of the Agent or any Bank in exercising any right shall operate as a
waiver thereof or otherwise be prejudicial thereto. No notice to or demand upon
the Borrower shall entitle the Borrower to other or further notice or demand in
similar or other circumstances.

           Section 24. TREATMENT OF CERTAIN CONFIDENTIAL INFORMATION.

        Section 24.1. SHARING OF INFORMATION WITH SECTION 20 SUBSIDIARY. The
Borrower, for itself and each of its Subsidiaries, in connection with any
financial advisory or investment banking services provided from time to time by
a Section 20 Subsidiary to the Borrower or one or more of its Subsidiaries,
hereby authorizes (a) such Section 20 Subsidiary to share with the Agent and
each Bank any information delivered to such Section 20 Subsidiary by the
Borrower or any of its Subsidiaries, and (b) the Agent and each Bank to share
with such Section 20 Subsidiary any information delivered to the Agent or such
Bank by the Borrower or any of its Subsidiaries pursuant to this Credit
Agreement, or in connection with the decision of such Bank to enter into this
Credit Agreement; it being understood, in each case, that any such Section 20

<Page>
                                      -45-

Subsidiary receiving such information shall be bound by the confidentiality
provisions of this Credit Agreement. Such authorization shall survive the
payment and satisfaction in full of all of Obligations.

        Section 24.2. CONFIDENTIALITY. Each of the Banks and the Agent agrees,
on behalf of itself and each of its affiliates, directors, officers, employees
and representatives, to use reasonable precautions to keep confidential, in
accordance with their customary procedures for handling confidential information
of the same nature and in accordance with safe and sound banking practices, any
non-public information supplied to it by the Borrower or any of its Subsidiaries
pursuant to this Credit Agreement that is identified by such Person as being
confidential at the time the same is delivered to the Banks or the Agent,
provided that nothing herein shall limit the disclosure of any such information
(a) after such information shall have become public other than through a
violation of this Section 24, (b) to the extent required by statute, rule,
regulation or judicial process, (c) to counsel for any of the Banks or the
Agent, (d) to bank examiners or any other regulatory authority having
jurisdiction over any Bank or the Agent, or to auditors or accountants, (e) to
the Agent, any Bank or, subject to Section 24.1, any Section 20 Subsidiary, (f)
in connection with any litigation to which any one or more of the Banks, the
Agent or any Section 20 Subsidiary is a party, or in connection with the
enforcement of rights or remedies hereunder or under any other Loan Document,
(g) to a Subsidiary or affiliate of such Bank as provided in Section 16 or (h)
to any assignee or participant (or prospective assignee or participant) so long
as such assignee or participant agrees to be bound by the provisions of Section
16.6.

        Section 24.3. PRIOR NOTIFICATION. Unless specifically prohibited by
applicable law or court order, each of the Banks and the Agent shall, prior to
disclosure thereof, notify the Borrower of any request for disclosure of any
such non-public information by any governmental agency or representative thereof
(other than any such request in connection with an examination of the financial
condition of such Bank by such governmental agency) or pursuant to legal
process.

        Section 24.4. OTHER. In no event shall any Bank or the Agent be
obligated or required to return any materials furnished to it or any Section 20
Subsidiary by the Borrower or any of its Subsidiaries. The obligations of each
Bank under this Section 24 shall supersede and replace the obligations of such
Bank under any confidentiality letter in respect of this financing signed and
delivered by such Bank to the Borrower prior to the date hereof and shall be
binding upon any assignee of, or purchaser of any participation in, any interest
in any of the Revolving Credit Loans from any Bank.

                            Section 25. SEVERABILITY.

        The provisions of this Credit Agreement are severable and if any one
clause or provision hereof shall be held invalid or unenforceable in whole or in
part in any jurisdiction, then such invalidity or unenforceability shall affect
only such clause or provision, or part thereof, in such jurisdiction, and shall
not in any manner affect such clause or provision in any other jurisdiction, or
any other clause or provision of this Credit Agreement in any jurisdiction.

                     Section 26. TRANSITIONAL ARRANGEMENTS.

        By its signature below, the Borrower acknowledges and agrees that the
Commitments under and as defined in that certain Revolving Credit Agreement,
dated as of June 26, 2000, as amended (the "EXISTING 364-DAY CREDIT FACILITY"),
by and among the Borrower, the lending institutions party thereto and Fleet
National Bank, as agent, are hereby irrevocably terminated.

                            [SIGNATURE PAGES FOLLOW]

<Page>
                                      -46-

        IN WITNESS WHEREOF, the undersigned have duly executed this Credit
Agreement as a sealed instrument as of the date first set forth above.

                                        STAPLES, INC.

                                        By: /s/  William Swanson
                                           -------------------------------------
                                           Title: Treasurer

                                        FLEET NATIONAL BANK, individually and as
                                        Agent

                                        By: /s/   Susan L. Pardus-Galland
                                           -------------------------------------
                                           Title: Director

                                        CITIBANK, N.A., individually and as
                                        Documentation Agent

                                        By: /s/   Robert A. Snell
                                           -------------------------------------
                                           Title: Vice President

                                        FIRST UNION NATIONAL BANK, individually
                                        and as Documentation Agent

                                        By: /s/   First Union National Bank
                                           -------------------------------------
                                           Title:

                                        ABN AMRO BANK N.V.

                                        By: /s/   Ineke Garbacz
                                           -------------------------------------
                                           Title: Group Vice President

                                        By: /s/   Yen Poon
                                           -------------------------------------
                                           Title: AVP

                                        THE BANK OF NEW YORK

                                        By: /s/   Charlotte Sohn Fuiks
                                           -------------------------------------
                                           Title: Vice President

                                        THE BANK OF NOVA SCOTIA

                                        By: /s/   T.M. Pitcher
                                           -------------------------------------
                                           Title: Authorized Signatory

<Page>
                                      -47-

                                        THE CHASE MANHATTAN BANK

                                        By: /s/   Chase Manhattan Bank
                                           -------------------------------------
                                           Title: Vice President

                                        DEUTSCHE BANK AG NEW YORK BRANCH
                                        AND/OR CAYMAN ISLANDS BRANCH

                                        By: /s/   Thomas A. Foley
                                           -------------------------------------
                                           Title: Vice President

                                        By: /s/   David G. Dickinson, JR
                                           -------------------------------------
                                           Title: Vice President

                                        FIRSTAR BANK, N.A.

                                        By: /s/   Thomas L. Boyer
                                           -------------------------------------
                                           Title: Vice President

                                        HSBC BANK USA

                                        By: /s/   Adriana D. Collins
                                           -------------------------------------
                                           Title: First Vice President

                                        KBC BANK N.V.

                                        By: /s/   Robert Snauffer
                                           -------------------------------------
                                           Title: Vice President

                                        By: /s/   Wei-Chun Wang
                                           -------------------------------------
                                           Title: Associate

                                        UNION BANK OF CALIFORNIA, N.A.

                                        By: /s/   Theresa L. Rocha
                                           -------------------------------------
                                           Title: Vice President<Page>
                                                                    EXHIBIT 10.1

          CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED
             SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
          PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE SYMBOL
         "[****]" HAS BEEN INSERTED IN PLACE OF THE PORTIONS SO OMITTED.

                                                                           DRAFT

                           AIRLINE SERVICES AGREEMENT

                                      AMONG

                            PINNACLE AIRLINES CORP.,

                             PINNACLE AIRLINES, INC.

                                       AND

                            NORTHWEST AIRLINES, INC.

                            DATED AS OF MARCH 1, 2002

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                                 Page
                                                                                                                 ----
<S>                                                                                                               <C>
ARTICLE I    DEFINITIONS...........................................................................................1

           Section 1.01    Definitions.............................................................................1

ARTICLE II    PROVISION OF REGIONAL AIRLINE SERVICES..............................................................10

           Section 2.01    Operation of Scheduled Flights.........................................................10
           Section 2.02    Use of Designator, NW Identification and Related Matters...............................10
           Section 2.03    Use of Other Designators...............................................................10
           Section 2.04    Personnel and Dispatch Control.........................................................11
           Section 2.05    Inventory Management...................................................................11
           Section 2.06    Passenger Fares........................................................................11
           Section 2.07    DOT Certification......................................................................11
           Section 2.08    Compliance With Governmental Regulations...............................................11
           Section 2.09    Quality of Service.....................................................................11
           Section 2.10    Service Standards......................................................................12
           Section 2.11    Service Recovery.......................................................................12
           Section 2.12    Annual Operating Plan..................................................................13
           Section 2.13    Inflight Food, Beverages and Supplies..................................................13
           Section 2.14    Exclusivity Arrangements...............................................................14
           Section 2.15    Other Operations.......................................................................14

ARTICLE III    EQUIPMENT..........................................................................................15

           Section 3.01    Use of the Equipment...................................................................15
           Section 3.02    Fleet Size and Related Matters.........................................................15
           Section 3.03    Lease of the Equipment.................................................................17
           Section 3.04    Terms of the Leases....................................................................17
           Section 3.05    Manufacturer Benefits Agreement........................................................17
           Section 3.06    Equipment Maintenance, Servicing and Cleaning..........................................17
           Section 3.07    Third Party Guarantees and Warranties..................................................18
           Section 3.08    Related Transfer Arrangements..........................................................18
           Section 3.09    Equipment Financing Coordination.......................................................19
           Section 3.10    Spare Parts Inventory; Application of Credits..........................................19

ARTICLE IV    ANCILLARY ARRANGEMENTS..............................................................................19

           Section 4.01    Coordination with Pinnacle.............................................................19
           Section 4.02    Ground Handling........................................................................20
           Section 4.03    Facilities.............................................................................21
           Section 4.04    Data Communications....................................................................23
           Section 4.05    Security...............................................................................23
           Section 4.06    Reservation Services...................................................................23

                                       i
<Page>

                                                                                                                 Page
                                                                                                                 ----

           Section 4.07    Ticketing Services and Ticketing Procedures............................................23
           Section 4.08    Baggage Handling Services..............................................................24
           Section 4.09    Air Cargo Handling Services............................................................25
           Section 4.10    Use of COMAT...........................................................................26
           Section 4.11    Slots and Route Authorities............................................................26
           Section 4.12    Emergency Response and Family Assistance...............................................26

ARTICLE V    REVENUES, PAYMENTS AND SETOFF........................................................................26

           Section 5.01    Revenues...............................................................................26
           Section 5.02    Payments to Pinnacle...................................................................26
           Section 5.03    Initial Block Hour and Cycle Rates; IOP Program Adjustment.............................28
           Section 5.04    Ground Handling Rates..................................................................29
           Section 5.05    Fixed Costs............................................................................30
           Section 5.06    Fuel...................................................................................30
           Section 5.07    Direct Expenses........................................................................32
           Section 5.08    Billing................................................................................34
           Section 5.09    Monthly Margin Calculation and Payment.................................................34
           Section 5.10    Annual Margin Adjustment Payment.......................................................34
           Section 5.11    Rate Adjustments.......................................................................36
           Section 5.12    Revised Monthly Margin Calculation and Payment.........................................37
           Section 5.13    Revised Annual Margin Adjustment Payment...............................................38
           Section 5.14    Non-Scheduled Flight Refund............................................................40
           Section 5.15    Incentives and Penalties...............................................................40
           Section 5.16    Pinnacle Change of Control.............................................................42
           Section 5.17    Credit Card Chargebacks................................................................42
           Section 5.18    Returned Checks........................................................................43
           Section 5.19    Most Favored Nations...................................................................43

ARTICLE VI    REPORTING OBLIGATIONS, AUDITING, INSPECTIONS AND CONFIDENTIALITY/PUBLICITY..........................44

           Section 6.01    Reporting Obligations..................................................................44
           Section 6.02    Audits.................................................................................44
           Section 6.03    Inspections............................................................................45
           Section 6.04    Confidentiality/Publicity..............................................................45

ARTICLE VII    NORTHWEST IDENTIFICATION...........................................................................45

           Section 7.01    Identification License.................................................................45
           Section 7.02    Designator License.....................................................................45
           Section 7.03    New Identifications....................................................................46
           Section 7.04    Use of Identification..................................................................46
           Section 7.05    Quality Control........................................................................46
           Section 7.06    Reservation of Rights..................................................................46
           Section 7.07    Ownership..............................................................................46
           Section 7.08    Termination............................................................................46

                                       ii
<Page>

                                                                                                                 Page
                                                                                                                 ----

           Section 7.09    Bankruptcy.............................................................................47

ARTICLE VIII    TAXES AND FEES....................................................................................47

           Section 8.01    Taxes and Fees.........................................................................47
           Section 8.02    Ticket Taxes and Fees..................................................................47
           Section 8.03    Refunds of Tax.........................................................................48

ARTICLE IX    LIABILITY, INDEMNIFICATION AND INSURANCE............................................................48

           Section 9.01    Independent Contractor.................................................................48
           Section 9.02    Indemnification........................................................................49
           Section 9.03    Insurance..............................................................................49

ARTICLE X    TERM AND TERMINATION.................................................................................51

           Section 10.01    Term..................................................................................51
           Section 10.02    Termination by Either Party...........................................................51
           Section 10.03    Termination by Northwest..............................................................52

ARTICLE XI    MISCELLANEOUS.......................................................................................53

           Section 11.01    Limitation on Performance.............................................................53
           Section 11.02    Mutual Cooperation....................................................................53
           Section 11.03    Representations and Warranties........................................................53
           Section 11.04    Assignment............................................................................53
           Section 11.05    Governing Law.........................................................................53
           Section 11.06    Interline and Other Agreements........................................................53
           Section 11.07    Notices...............................................................................54
           Section 11.08    Parties...............................................................................54
           Section 11.09    Counterparts..........................................................................54
           Section 11.10    Severability..........................................................................54
           Section 11.11    Captions, Section Headings and Table of Contents......................................55
           Section 11.12    Availability of Equitable Remedies; Procedures........................................55
           Section 11.13    Exhibits..............................................................................55
           Section 11.14    Integration and Entire Agreement......................................................56
           Section 11.15    Relationship of Parties...............................................................56
</Table>

                                      iii
<Page>

                                    EXHIBITS

           Exhibit A-1         Aircraft Lease Form
           Exhibit A-2         Engine Lease Form
           Exhibit B           Hub City Facility Charges
           Exhibit C           Parity Pay Agreement

                                       i
<Page>

                           AIRLINE SERVICES AGREEMENT

       THIS AIRLINE SERVICES AGREEMENT (the "Agreement") is made as of the 1st
day of March, 2002 by and among PINNACLE AIRLINES CORP., a Delaware corporation
("Pinnacle Corp."), PINNACLE AIRLINES, INC., a Georgia corporation and wholly
owned subsidiary of Pinnacle Corp. ("Pinnacle"), and NORTHWEST AIRLINES, INC., a
Minnesota corporation ("Northwest").

                                   WITNESSETH:

       WHEREAS, Pinnacle Corp., Pinnacle and Northwest desire to make certain
arrangements between them which will enable Pinnacle to provide Northwest with
commercial regional jet and turboprop air transportation services;

       WHEREAS, Pinnacle Corp., Pinnacle and Northwest are each willing to
perform in the manner and upon the conditions and terms hereinafter set forth;

       NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Northwest, Pinnacle Corp. and Pinnacle do hereby agree as follows:

                                   ARTICLE I

                                  DEFINITIONS

       SECTION 1.01 DEFINITIONS. For all purposes of this Agreement, except as
otherwise expressly provided or unless the context otherwise requires:

              (1) the terms as defined in this Article have the meanings
       assigned to them in this Article and include the plural as well as the
       singular;

              (2) all accounting terms not otherwise defined herein have the
       meanings assigned to them in accordance with generally accepted
       accounting principles; and

              (3) the words "herein", "hereof" and "hereunder" and other words
       of similar import refer to this Agreement as a whole and not to any
       particular Article, or other subdivision.

       "ACARS" means the Aircraft Communications Addressing and Reporting System
which provides communications between the Aircraft and Pinnacle with respect to
operational matters.

       "AFFILIATE" means, as applied to a Person, any other Person directly or
indirectly controlling, controlled by, or under common control with, that
Person. For purposes of this definition "control" (including, with correlative
meanings, the terms "controlling", "controlled

<Page>

by" and "under common control with"), as applied to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of that Person, whether through the
ownership of voting securities, by contract or otherwise. After an initial
public offering of Pinnacle Corp.'s stock, Pinnacle Corp. and Pinnacle will not
be Affiliates of Northwest.

       "AIR CARGO" means air freight, United States mail and small package
services appropriate for the Aircraft.

       "AIR CARGO HANDLING SERVICES" means the Air Cargo handling services to be
performed pursuant to SECTION 4.09.

       "AIRCRAFT" means (i) the twenty (20) Saab 340 turboprop aircraft in
Pinnacle's fleet as of the Effective Date, (ii) the thirty-four (34) CRJ-200/440
Canadair Regional Jet aircraft in Pinnacle's fleet as of the Effective Date,
(iii) the forty-nine (49) additional CRJ-200 or CRJ-440 Canadair Regional Jet
aircraft when and as such aircraft are added to Pinnacle's fleet pursuant to
SECTION 3.02; and (iv) up to two hundred twenty-one (221) additional CRJ-200/440
Canadair Regional Jet aircraft when, as and if such aircraft are added to
Pinnacle's fleet pursuant to SECTION 3.02. Any Aircraft removed from Pinnacle's
fleet cease to be "Aircraft" hereunder upon the date of such removal.

       "AIRCRAFT RENTAL EXPENSE" means the Basic Rent charged in the Leases
between Northwest and Pinnacle which shall be [****] per Aircraft per month for
the CRJ-200/440 Canadair Regional Jet Aircraft and the Basic Rent paid by
Pinnacle pursuant to the Leases between Pinnacle and third parties with respect
to the Saab 340 turboprop aircraft operated by Pinnacle.

       "AIRLINK CARRIER" means an airline operating regional jet and/or
turboprop air transportation services as a Northwest Airlink carrier pursuant to
an airline services agreement between such airline and Northwest.

       "AIRLINE ASSETS" means those assets used, as of the date of
determination, in the relevant Person's operation as an air carrier.

       "ANNUAL OPERATING PLAN" shall have the meaning ascribed to such term in
SECTION 2.12.

       "AVAILABLE SEAT DAY" OR "ASD" means a seat on an Aircraft each day after
such Aircraft has been placed in service by Pinnacle and remains in service for
Northwest (including non-scheduled Aircraft). For purposes of this definition
only, each Canadair Regional Jet Aircraft in Pinnacle's fleet shall be deemed to
be a 50-seat Aircraft. A 50-seat Aircraft placed in service by Pinnacle on
January 1st would have 1,550 available seat days in January (50 seats times 31
days).

       "BAGGAGE HANDLING SERVICES" means the baggage handling services to be
performed pursuant to SECTION 4.08.

       "BASIC RENT" shall have the meaning ascribed to such term in the Leases.

                                       2
<Page>

       "BENEFICIAL OWNERSHIP" has the meaning given such term as defined as of
the date hereof in Rules 13d-3 and 13d-5 under the Securities Exchange Act of
1934, as amended.

       "BLOCK HOUR" means the period of time (in minutes) beginning when an
Aircraft first moves from the ramp blocks in connection with a Scheduled Flight,
a Non-Scheduled Flight or a Charter Flight and ending when the Aircraft next
comes to a stop at the ramp at any station or other point of termination as
recorded by ACARS or another mutually agreed system, divided by sixty (60).

       "BLOCK HOUR PAYMENT" means the payment for Block Hours to be made
pursuant to SECTION 5.02(B).

       "BLOCK HOUR RATE" shall have the meaning ascribed to such term in SECTION
5.03.

       "BLOCK HOUR REPORT" means the report to be prepared by Pinnacle pursuant
to SECTION 5.02(A).

       "BOMBARDIER AGREEMENT" means the Aircraft Heavy Maintenance Service
Agreement between Bombardier Services Corporation and Northwest Airlines, Inc.,
dated February 1, 2002, as amended or extended by Northwest; provided, however,
any material expansion of the scope of services to be performed under the
Bombardier Agreement shall be subject to the reasonable approval of Pinnacle.

       "CAPITAL STOCK" of any Person means any and all shares, interests, rights
to purchase, options, warrants, participation or other equivalents of or
interests in (however designated) the equity of such Person, including any
preferred stock.

       "CHARTER FLIGHTS" means charter flights using the Aircraft, which charter
flights, operational arrangements and the compensation to be received by
Pinnacle in respect thereof are mutually agreed to by Pinnacle and Northwest
from time to time.

       "COMAT" means company material, including but not limited to priority
aircraft maintenance parts.

       "COMPLEMENTARY SERVICE CITIES" means those Service Cities which both
Northwest and Pinnacle serve or may subsequently serve and which are not Hub
Cities.

       "CPPI" means the percent increase, if any, in the PPI for finished goods
published by the United States Department of Labor, Bureau of Labor Statistics,
which increase occurred during the immediately preceding calendar year, defined
as (PPI at end of prior calendar year/PPI at end of two years prior)-1, but in
no event in excess of five percent (5%) and in no event less than zero.

       "CYCLE" means an actual takeoff at an origin city and landing at a
destination city of an Aircraft in connection with a Scheduled Flight, a
Non-Scheduled Flight or a Charter Flight.

       "CYCLE PAYMENT" means the payment for Cycles to be made pursuant to
SECTION 5.02(B).

                                       3
<Page>

       "CYCLE RATE" shall have the meaning ascribed to such term in SECTION
5.03.

       "CYCLE REPORT" means the report to be prepared by Pinnacle pursuant to
SECTION 5.02(A).

       "DEFAULT" means the occurrence of an event set forth in SECTION 10.02 or
SECTION 10.03, and the expiration of any cure period provided therein without
cure or other remedial action having occurred, permitting termination of this
Agreement.

       "DESIGNATOR" means "NW" or such other designator code selected by
Northwest from time to time in its sole discretion to identify Northwest's own
flights.

       "DIRECT COSTS" means Northwest's or Pinnacle's, as applicable, actual
cost for goods and services without any surcharge for administrative or general
overhead expenses.

       "DOT" means the United States Department of Transportation or any
successor to its functions with respect to the regulation of air transportation.

       "DOT CERTIFICATION" means any and all certifications and approvals by the
DOT, the FAA and other regulatory agencies required for Pinnacle to operate the
Aircraft and to perform pursuant to the terms of this Agreement and all
Governmental Regulations.

       "EFFECTIVE DATE" means the date specified in SECTION 10.01 of this
Agreement.

       "EQUIPMENT" means the Aircraft and Spare Engines.

       "EQUIPMENT RENTAL EXPENSE" means the Aircraft Rental Expense and the
Spare Engine Rental Expense.

       "FAA" means the Federal Aviation Administration or any successor
organization.

       "FACILITY LEASES" shall have the meaning ascribed to such term in SECTION
4.03(G).

       "FIXED COST PAYMENT" means the payment for fixed costs to be made
pursuant to SECTION 5.02(B).

       "FLEET VALUE" means the total value of the Aircraft in Pinnacle's fleet
used in calculating the premium for Pinnacle's hull insurance (including war
risk).

       "FUEL BURN PENALTY PAYMENT" shall have the meaning ascribed to such term
in SECTION 5.06(D).

       "FUEL PRICE" shall have the meaning ascribed to such term in SECTION
5.06(B).

       "GAAP" means generally accepted accounting practice and principles at the
time prevailing in the United States for companies engaged in businesses similar
to that of Pinnacle, consistently applied.

                                       4
<Page>

       "GE AGREEMENTS" means the Engine Service Agreement between Northwest
Airlines, Inc. and GE Engine Services, Inc., dated July 17, 2001, as amended or
extended by Northwest, and the General Terms Agreement between General Electric
Company and Northwest Airlines, Inc. for CF34-3B1 Turbofan Engines and Support,
dated July 11, 2001, as amended or extended by Northwest; provided, however, any
material expansion of the scope of services to be performed under the GE
Agreements shall be subject to the reasonable approval of Pinnacle.

       "GOVERNMENTAL REGULATIONS" means the rules and regulations prescribed by
an airport authority at a Service City or by any local, state or federal unit of
government having authority and jurisdiction to regulate the business and
affairs of an air carrier having DOT Certification, including without
limitation, the DOT and the FAA.

       "GROUND HANDLING FUNCTIONS" shall have the meaning ascribed to such term
in SECTION 4.02.

       "GROUND HANDLING PAYMENT" means the payment for ground handling to be
made pursuant to SECTION 5.02(B).

       "GROUND HANDLING RATE" shall have the meaning ascribed to such term in
SECTION 5.04.

       "HOLDING COMPANY" means, as applied to a Person, any other Person of whom
such person is, directly or indirectly, a Subsidiary.

       "HUB CITIES" means Memphis, Tennessee ("MEM"), Minneapolis/St. Paul,
Minnesota ("MSP"), Detroit, Michigan ("DTW") and any other city in the United
States where Northwest, together with its subsidiaries and Airlink Carriers
operating under Northwest's Designator, operate an average of more than fifty
(50) departures per day during any Northwest Schedule Period.

       "IDENTIFICATION" means a trade name, trademark, service mark, graphic,
logo, distinctive color scheme or other trade dress, domain name and/or other
identification or indication of source or origin.

       "IOP PAYMENT" means the payment for IOP Program Incidents to be made
pursuant to Section 5.02(b).

       "IOP PROGRAM INCIDENT" shall mean Northwest's request that Pinnacle
cancel one or more Scheduled Flights as a result of Northwest's initiation of
its Irregular Operating Procedures Program.

       "LEASE" means (i) the leases, subleases and/or sub-subleases entered into
or to be entered into pursuant to SECTION 3.03 in respect of the CRJ-200/440
Aircraft substantially in the form of Exhibit A-1, (ii) the leases, subleases
and/or sub-subleases entered into or to be entered into pursuant to SECTION 3.03
in respect of Spare Engines substantially in the form of Exhibit A-2, and (iii)
the leases between Pinnacle and third parties with respect to the Saab 340
turboprop aircraft operated by Pinnacle.

                                       5
<Page>

       "MAINTENANCE FACILITIES" shall have the meaning ascribed to such term in
SECTION 4.03(C).

       "MAINTENANCE PROGRAM" shall have the meaning ascribed to such term in the
Leases.

       "MAJOR CARRIER" means an air carrier (other than Pinnacle and its
successors and any Subsidiary thereof or Northwest Airlines, Inc. and its
successors and any Subsidiary thereof), the annual passenger revenues of which
(including its Subsidiaries' predecessor entities) for the most recently
completed fiscal year for which audited financial statements are available are
in excess of the Revenue Threshold as of the date of determination (or the U.S.
dollar equivalent thereof).

       "MARGIN" means the operating margin determined in accordance with
SECTIONS 5.10 and 5.13.

       "MARGIN ADJUSTMENT PAYMENT" means the payment to be made pursuant to
Sections 5.10 and 5.13.

       "MARGIN PAYMENT" means the payment to be made pursuant to SECTIONS 5.09
and 5.12.

       "MARKET MARGIN RATE" OR "MMR" means the weighted (by revenue) average
full year operating margin of the five largest (by revenue) publicly traded U.S.
domestic regional airlines operating primarily regional jet aircraft; provided,
however, that if the result of this calculation is greater than 14 percent, the
MMR shall be 14 percent, and if the result is less than 10 percent, the MMR
shall be 10 percent. The MMR shall be initially calculated with respect to
calendar year 2006 and it shall be re-calculated with respect to each fifth year
thereafter so long as this Agreement remains in effect.

       "MESABA" means Mesaba Aviation, Inc., a Minnesota corporation, and/or
Mesaba Holdings, Inc., a Minnesota corporation, and their respective successors
and/or assigns.

       "MONTHLY SEAT DAYS" shall have the meaning ascribed to such term in
SECTION 5.05.

       "MONTHLY SEAT DAYS REPORT" means the report to be prepared by Pinnacle
pursuant to SECTION 5.02(A).

       "NON-SCHEDULED FLIGHTS" means all flights using the Aircraft which are
not Scheduled Flights or Charter Flights.

       "NORTHWEST SCHEDULE PERIOD" means the planned duration of various time
periods for which Northwest's flight schedule is for sale in computer
reservation systems.

       "NORTHWEST TICKETS" shall have the meaning ascribed to such term in
SECTION 4.07(A).

                                       6
<Page>

       "NOTE" means the promissory note of Pinnacle Corp. to be issued to NWA
Inc. in partial consideration of the transfer by NWA Inc. of all of the
outstanding common stock of Pinnacle to Pinnacle Corp., in the principal amount
of $150,000,000.00.

       "NW IDENTIFICATION" means any Identification specifically selected by
Northwest from time to time in its sole discretion for use by Pinnacle in
connection with the Regional Airline Services (including without limitation
"Northwest Airlink" or any similar name).

       "OPTION TERM" means (i) a period of six (6) months following the date of
termination if this Agreement is terminated by Northwest pursuant to SECTION
10.02 or SECTION 10.03; or (ii) a period of thirty (30) days following the date
of termination if this Agreement is terminated by Northwest pursuant to SECTION
10.01.

       "PERFORMANCE CRITERIA" shall have the meaning ascribed to such term in
SECTION 5.14(A).

       "PERFORMANCE PERIOD" means each six (6) month period ending on a June 30
or December 31 occurring during the term of this Agreement.

       "PERSON" means an individual, partnership, corporation, business trust,
joint stock company, limited liability company, unincorporated association,
joint venture or other entity of whatever nature.

       "PINNACLE AFFECTED COMPANY" means (a) Pinnacle and its successor, (b) any
Holding Company of Pinnacle, or (c) any Subsidiary of Pinnacle or its successor
or of any Holding Company of Pinnacle, that in each such case owns, directly or
indirectly, all or substantially all of the Airline Assets of Pinnacle or its
successor, such Holding Companies of Pinnacle and such Subsidiaries, taken as a
whole.

       "PINNACLE CHANGE OF CONTROL" means:

              (i) the acquisition by any individual, entity or group (within the
       meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
       1934, as amended) of Beneficial Ownership of 20% or more of the Capital
       Stock or Voting Power of a Pinnacle Affected Company; provided, however,
       that a Pinnacle Change of Control will not be deemed to have occurred if
       the holder of Pinnacle Corp.'s Series A Preferred Stock has taken any
       action pursuant to Pinnacle Corp's certificate of incorporation to permit
       an acquisition contemplated by this clause (i) or

              (ii) the direct or indirect acquisition by a Major Carrier, any of
       its Affiliates or any combination thereof of Beneficial Ownership of 10%
       or more of the Capital Stock or Voting Power of a Pinnacle Affected
       Company.

                                       7
<Page>

       "PINNACLE IDENTIFICATION" means any Identification selected by Pinnacle
from time to time for use in connection with the business of Pinnacle and/or
Pinnacle Corp.

       "PPI" means Producer Price Index for finished goods published by the
United States Department of Labor, Bureau of Labor Statistics, and, if no longer
published, any comparable successor index selected by Northwest.

       "PRIMARY SERVICE CITIES" means those Service Cities to which Pinnacle
provides service, but which are not served by Northwest.

       "QECS" mean quick engine change kits.

       "REGIONAL AIRLINE SERVICES" means the provisioning by Pinnacle to
Northwest of Scheduled Flights and Charter Flights using the Aircraft in
accordance with this Agreement.

       "RENEWAL TERM" shall have the meaning ascribed to such term in SECTION
10.01.

       "REVENUE PASSENGER MILE" OR "RPM" means the number of miles a revenue
passenger is flown on a Scheduled flight or a Charter Flight.

       "REVENUE THRESHOLD" means five hundred million dollars ($500,000,000), as
such amount may be increased based on the amount by which, for any date of
determination, the most recently published Consumer Price Index for all-urban
consumers published by the Department of Labor (the "CPI") has increased to such
date above the CPI for calendar year 2001. For purposes hereof, the CPI for
calendar year 2001 is the monthly average of the CPI for the 12 months ending on
December 31, 2001.

       "SAAB LEASE" means the leases and/or subleases entered into in respect of
the twenty-four (24) Saab 340 turboprop aircraft in Pinnacle's fleet as of the
Effective Date.

       "SCHEDULED FLIGHTS" means revenue passenger flights (other than Charter
Flights) using the Aircraft which, regardless of frequency, are held out to the
public and published in the customary and applicable schedule distribution
systems, such as the Official Airline Guide, or published by Northwest in its
own system timetables. In addition, Scheduled Flights shall include all
regularly scheduled flights which are not revenue passenger flights as
determined by Northwest in its sole discretion.

       "SERVICE CITIES" means those cities identified from time to time by
Northwest to which Pinnacle shall provide Regional Airline Services.

       "SPARE ENGINE RENTAL EXPENSE" means the Basic Rent charged in the Leases
between Northwest and Pinnacle for the Spare Engines.

       "SPARE ENGINES" means (i) the three (3) General Electric CF34-3B1 spare
engines (including QECs where applicable in accordance with the respective Spare
Engine Lease) in Pinnacle's fleet as of the Effective Date, (ii) the three (3)
additional CF34-3B1 spare engines (including QECs where applicable in accordance
with the respective Spare Engine Lease) when and as such spare engines are added
to Pinnacle's fleet pursuant to SECTION 3.02;

                                       8
<Page>

and (iii) additional CF34-3B1 spare engines (including QECs where applicable in
accordance with the respective Spare Engine Lease) when, as and if such spare
engines are added to Pinnacle's fleet pursuant to SECTION 3.02. Any Spare Engine
removed from Pinnacle's fleet ceases to be a "Spare Engine" hereunder upon the
date of such removal.

       "SUBSIDIARY" of any Person means any corporation, association,
partnership, joint venture, limited liability company or other business entity
of which more than 40% of the total Voting Power thereof or the Capital Stock
thereof is at the time Beneficially Owned or controlled, directly or indirectly
by (1) such Person, (2) such Person and one or more Subsidiaries of such Person,
or (3) one or more Subsidiaries of such Person.

       "SUPPORT AGREEMENTS" shall have the meaning ascribed to such term in
SECTION 3.08.

       "TERMINATION DATE" means the date on which this Agreement terminates
pursuant to Article X.

       "TICKET TAXES AND FEES" means any taxes pursuant to Sections 4261 or 4271
of the U.S. Internal Revenue Code of 1986, as amended or succeeded, on any
amounts paid by customers for transportation of persons or packages by air, and
any passenger facility charges, U.S. security fees or other security charges,
stamp taxes, excise taxes, value-added taxes (in the nature of a sales or use
tax), gross receipts taxes (in the nature of a sales or use tax), U.S. APHIS
user fees, U.S. Customs user fees, U.S. Immigration user fees, and any other
taxes and/or user fees imposed by any domestic or foreign governmental entity or
taxing authority on a per-passenger basis on any amounts paid by customers for
transportation of persons or packages by air.

       "TICKETING SERVICES" means the ticketing services to be performed
pursuant to SECTION 4.07.

       "TOTAL OPERATING COST" means all expenses directly associated with the
provision of Regional Airline Services under this Agreement, including but not
limited to those generally recognized as overhead, determined in accordance with
GAAP. For the avoidance of doubt, Total Operating Cost does not include net
interest expense, principal and interest payments under the Note and those items
that are classified as extraordinary on the audited financial statements.

       "TOTAL OPERATING INCOME" means Total Operating Revenue minus Total
Operating Cost.

       "TOTAL OPERATING REVENUE" means the amounts Pinnacle receives from
Northwest pursuant to SECTION 5.02 or SECTION 5.15 (including penalties
accounted for as a reduction to revenue) of this Agreement, plus any revenues
Pinnacle receives as a result of performing ground handling services for Mesaba
or other airlines (as and if approved by Northwest), plus any payments Pinnacle
receives from a governmental entity intended to reimburse Pinnacle for lost
revenue, an inability to cover incurred operating expenses, or as a
reimbursement or offset to incurred expenses.

                                       9
<Page>

       "TRAFFIC REFERRAL" shall have the meaning ascribed to such term in
SECTION 4.07(E).

       "TRAFFIC MANIFEST" shall have the meaning ascribed to such term in
Section 4.09(A).

       "VOTING POWER" means, as of the date of determination, the voting power
in the general election of directors, managers or trustees, as applicable.

                                   ARTICLE II

                     PROVISION OF REGIONAL AIRLINE SERVICES

       SECTION 2.01 OPERATION OF SCHEDULED FLIGHTS. Subject to the terms and
conditions of this Agreement, Pinnacle shall use the Aircraft to operate
Scheduled Flights and Charter Flights as shall be designated by Northwest from
time to time in Northwest's sole discretion. All schedules and aircraft routing
for such Scheduled Flights and all utilization of the Aircraft shall be
determined by Northwest from time to time, in its sole discretion, subject to
the reasonable operating constraints of Pinnacle taking into consideration
reasonable maintenance, crew training and Aircraft rotation requirements.
Scheduled block times and minimum turn times shall be mutually agreed to by
Pinnacle and Northwest and set in conformity with standard industry practices
and Aircraft type.

       SECTION 2.02 USE OF DESIGNATOR, NW IDENTIFICATION AND RELATED MATTERS.
Subject to the applicable provisions of Article VII below, Pinnacle shall
operate the Scheduled Flights provided under this Agreement using the
Designator. The Scheduled Flights shall be identified by Pinnacle solely with
flight numbers assigned by Northwest. Subject to the applicable provisions of
Article VII below, Pinnacle shall use only the NW Identification for the
Aircraft (except as otherwise required by Governmental Regulations), and for all
facilities (including maintenance facilities), signage, equipment, uniforms and
advertising, promotional and business materials in any form or media that are
used in connection with the Regional Airline Services; provided, however, all
Pinnacle uniforms (including the use of the NW Identification thereon) shall be
determined by Northwest, provided that such uniforms shall at all times be
consistent with Northwest's existing uniform standards. Pinnacle shall not use
the Pinnacle Identification for the Aircraft (except as required by Governmental
Regulation), facilities (including maintenance facilities), signage, equipment,
uniforms or advertising, promotional or business materials in any form or media
that are used in connection with the Regional Airline Services; provided,
however, nothing in the foregoing prohibition shall preclude Pinnacle from using
the Pinnacle Identification for general corporate purposes, investor relations,
on crew wings and employee service pins, and for other purposes that do not
involve interaction with customers or passengers.

       SECTION 2.03 USE OF OTHER DESIGNATORS. Pinnacle shall not use on the
Aircraft the airline designator, Identification, or any other identifying
feature of a foreign or United States airline other than Northwest, without the
express prior written consent of Northwest, or unless Northwest directs Pinnacle
to use such other designator, Identification, or identifying feature.

                                       10
<Page>

       SECTION 2.04 PERSONNEL AND DISPATCH CONTROL. Pinnacle shall be
responsible for providing all crews (flight and cabin) to operate the Scheduled
Flights and any Charter Flights and for all aspects (personnel and other) of
dispatch control, including but not limited to load control.

       SECTION 2.05 INVENTORY MANAGEMENT. Northwest shall have complete control
over all inventory management functions for all Scheduled Flights operated
pursuant to this Agreement, including, without limitation, overbooking levels,
discount seat levels, and allocation of seats among the various fare buckets. In
performing Pinnacle's inventory management, Northwest shall conform in all
material respects to its own procedures and standards, taking into account the
type of Aircraft operated by Pinnacle.

       SECTION 2.06 PASSENGER FARES. Northwest shall be the sole authority for
filing tariffs for Scheduled Flights operated pursuant to this Agreement, and
Northwest shall establish all passenger fares for Scheduled Flights operated
pursuant to this Agreement. All charges for filing of fares or tariffs for
Scheduled Flights operated pursuant to this Agreement shall be paid by
Northwest.

       SECTION 2.07 DOT CERTIFICATION. Pinnacle has and shall maintain DOT
Certification and all other permits, licenses, certificates and insurance
required by governmental authorities and Article IX hereof to enable Pinnacle to
perform the services required by this Agreement.

       SECTION 2.08 COMPLIANCE WITH GOVERNMENTAL REGULATIONS. All flight
operations, dispatch operations and flights and all other operations undertaken
by Pinnacle pursuant to this Agreement shall be conducted and operated by
Pinnacle in strict compliance with all Governmental Regulations, including,
without limitation, those relating to airport security, the use and
transportation of hazardous materials, flight crew and mechanic qualifications
and licensing requirements, crew training and hours. All Equipment shall be
operated and maintained by Pinnacle in strict compliance with all Governmental
Regulations, Pinnacle's own operations manuals and maintenance manuals and
procedures, and all applicable equipment manufacturer's instructions. At all
times, Pinnacle shall operate with the highest standards of care.

       SECTION 2.09 QUALITY OF SERVICE. Northwest policies, procedures,
performance standards and means of measurement thereof concerning the provision
of air passenger and air cargo services shall be applicable to all services
provided by Pinnacle under this Agreement. Pinnacle shall achieve at least the
same quality of airline service provided by Northwest, subject to limitations
imposed by the type of Aircraft used by Pinnacle, its route network, the
availability of equipment and facilities at the Service Cities and the
performance by Northwest of its obligations under this Agreement. Pinnacle shall
maintain adequate staffing levels to ensure at least the same level of customer
service and operational efficiency that Northwest achieves; Pinnacle shall
cooperate with Northwest in any way necessary or desirable to provide such
comparable level of customer service in connection with the operation of
Regional Airline Services; and Pinnacle shall maintain new hire and recurrent
training programs for all job descriptions which are reasonably acceptable to
Northwest.

                                       11
<Page>

       SECTION 2.10 SERVICE STANDARDS. Without limiting SECTION 2.09, Pinnacle
shall achieve the following specific performance standards.

            (a) MINIMUM COMPLETION FACTOR. Pinnacle shall achieve not less than
a [****] completion factor for all Scheduled Flights which are scheduled to be
operated by Pinnacle during each Performance Period. Scheduled Flights which are
cancelled at Northwest's request will not be included in calculating Pinnacle's
completion factor, and station overflys due to no passenger load will not be
considered a cancellation.

            (b) MINIMUM ON-TIME RELIABILITY. Pinnacle shall achieve a [****]
on-time arrival within zero minutes' factor and a [****] on-time departure
within zero minutes' factor for all Scheduled Flights which are scheduled to be
operated by Pinnacle during each Performance Period. Scheduled Flights which are
delayed at Northwest's request will not be included in calculating Pinnacle's
on-time arrival and on-time departure factors.

            (c) MISHANDLED LUGGAGE FACTOR. The number of incidents of mishandled
luggage by Pinnacle shall not exceed [****] enplaned revenue passengers during
any Performance Period. The number of incidences of mishandled luggage shall be
determined by Northwest by dividing (i) the total number of Pinnacle caused
claims at Primary Service Cities, Complementary Service Cities and the Hub
Cities during the applicable Performance Period, by (ii) the total number of
enplaned revenue passengers during such Performance Period as reported by
Northwest. Notwithstanding the foregoing, the parties agree that incidents of
mishandled luggage where DTW is the responsible station and such incidents are
not due to Pinnacle's actions, those incidents will not be included in the
mishandled luggage factor unless and until Pinnacle performs luggage handling
for its Scheduled Flights at DTW. In the event incidents of mishandled luggage
at DTW are excluded from the mishandled luggage factor pursuant to the preceding
sentence, the number of enplaned revenue passengers at DTW during the
corresponding time period will also be excluded from the mishandled luggage
factor, and no penalties or incentives will be applicable as to such passengers.
The parties further agree that mishandled luggage at MSP will not be included in
the mishandled luggage factor in the event Mesaba fails to perform luggage
handling in accordance with Pinnacle's requirements and Northwest is unable to
make sufficient space available at MSP to allow Pinnacle to perform luggage
handling for its Scheduled Flights or make other mutually satisfactory luggage
handling arrangements.

            (d) CUSTOMER COMPLAINTS FACTOR. The number of customer complaints
received by Northwest in respect of Regional Airline Services shall not exceed
[****] enplaned revenue passengers during any Performance Period. The number of
customer complaints shall be determined by Northwest by dividing (i) the total
number of Pinnacle -caused complaints during the applicable Performance Period,
by (ii) the total number of enplaned revenue passengers during such Performance
Period as reported by Northwest.

       SECTION 2.11 SERVICE RECOVERY

            (a) PASSENGER AMENITIES. Pinnacle agrees to provide passenger
amenities, including, without limitation, denied boarding compensation, which
Northwest provides under Rule 245 of the Domestic General Rules No. 1 issued by
Airline Tariff Publishing Co. and ATA

                                       12
<Page>

Resolution No. 120.20 or pursuant to any similar contractual arrangement now
existing or hereafter in effect or applicable to Northwest. In any Primary
Service City or Hub City, Pinnacle agrees to pay the full cost of providing such
passenger amenities with the exception of denied boarding compensation resulting
from inventory oversales or other actions of Northwest. In any Primary Service
City or Hub City, for denied boarding compensation resulting from inventory
oversales or the actions of Northwest, Pinnacle will pay the appropriate amount
of denied boarding compensation to the affected passengers and will invoice
Northwest for such amount pursuant to SECTION 5.08 below. Any such invoice will
include sufficient detail and supporting documentation to allow Northwest to
verify the invoiced amount. In Complementary Service Cities, Northwest will
provide all passenger amenities, including but not limited to baggage delivery,
at its sole cost.

       (b) DESTINATION BY OTHER MEANS. If Pinnacle transports a revenue
passenger to his or her destination by another means (bus, train, taxi, etc.)
due to a flight cancellation, Northwest shall reimburse Pinnacle for the actual
transportation costs incurred to transport the passenger by such other means;
provided, however, that if the flight cancellation is necessitated by acts of
Pinnacle (e.g., crew curfews, maintenance-related delays, etc.), Pinnacle will
pay the costs incurred to transport the passenger by such other means. Pinnacle
shall use its best efforts to minimize the transportation of passengers by other
means and the costs associated therewith.

       SECTION 2.12 ANNUAL OPERATING PLAN. At least 90 days prior to January 1
of each year during the term of this Agreement, Pinnacle and Northwest shall
confer and prepare an operating plan for the succeeding calendar year, which
plan shall include (i) Northwest's forecast with respect to the schedule and
routing for all Scheduled Flights for such year, (ii) Northwest's forecast of
the Service Cities to which Pinnacle shall operate Regional Airline Services,
(iii) Northwest's forecast of specific dates for the commencement of service to
new Service Cities, if any, (iv) Northwest's forecast of the number of Aircraft
to be added to or removed from Pinnacle's fleet (subject to SECTION 3.02), and
(v) such other matters as Northwest and Pinnacle shall determine (as amended in
accordance with this SECTION 2.12, the "Annual Operating Plan"). Northwest and
Pinnacle shall meet and confer on a quarterly basis (or more frequently if
requested by either Northwest or Pinnacle) to review the implementation of the
Annual Operating Plan and to discuss any changes to the Annual Operating Plan.
In the event Northwest elects to alter the Annual Operating Plan during the
course of a year, Northwest shall use its reasonable best efforts to provide at
least sixty (60) days prior notice to Pinnacle. Notwithstanding the foregoing
provisions of SECTION 2.12, Northwest shall promptly notify Pinnacle of any
determination by Northwest to increase or decrease Pinnacle's fleet size, and,
except as provided in SECTION 3.02(A)(II) and SECTION 3.02 (A)(III) below,
Northwest shall give Pinnacle no less than ninety (90) days prior notice.
Northwest agrees that any substantial increases in Pinnacle's fleet size
pursuant to the preceding sentence are subject to Pinnacle's reasonable
operating constraints.

       SECTION 2.13 INFLIGHT FOOD, BEVERAGES AND SUPPLIES. Unless otherwise
mutually agreed, Pinnacle will provide Aircraft catering services, food and
beverages for passengers and crews on Scheduled Flights in accordance with
Northwest's specifications and directions and at Pinnacle's sole cost. Pinnacle
shall be solely responsible for maintaining all licenses necessary for the
serving of inflight food and beverages on Scheduled Flights. Northwest shall
furnish Pinnacle, at Northwest's sole cost, adequate supplies of its customary

                                       13
<Page>

inflight supplies including, but not limited to, the Northwest inflight
magazine, cups, napkins, pillows, blankets, trash bags, sick sacks, lavatory
supplies, creamers, swizzle sticks and sugar in a form similar or identical to
that used by Northwest. Notwithstanding anything to the contrary in this
Agreement, Northwest may, at its option, require Pinnacle upon ninety (90) days
prior written notice to utilize Northwest or a Northwest-designated contract
agent to provide catering services, food and beverages for passengers and crews
on Scheduled Flights, provided that (i) the Block Hour Rates set forth in
SECTION 5.03 below are adjusted as necessary to eliminate the costs of catering
services, food and beverages that were included in establishing the Block Hour
Rates, and the Direct Costs to Pinnacle of the new arrangement will be
reimbursed pursuant to Section 5.07 below, and (ii) the service standards
applicable to any such Northwest-designated contract agent are either reasonably
satisfactory to Pinnacle or no less stringent than the standards applicable to
Northwest's own operations.

       SECTION 2.14 EXCLUSIVITY ARRANGEMENTS. During the term of this Agreement,
neither Pinnacle Corp., Pinnacle, nor any Affiliate of Pinnacle Corp. shall
operate any flights to or from the Hub Cities using its own airline code or the
airline code, logo, or any other identifying feature of a foreign or United
States airline (other than Northwest) without the express prior written consent
of Northwest. Nothing in this Agreement shall preclude Northwest from (i)
entering into code share, alliance or other commercial cooperation arrangements
with any other airline, or (ii) entering into similar or other arrangements with
other carriers for the provisioning of regional airline services using Canadair
Regional Jets, turboprop aircraft or any other aircraft to or from the Hub
Cities, the same Service Cities or elsewhere.

       SECTION 2.15 OTHER OPERATIONS. Pinnacle Corp. and/or an Affiliate of
Pinnacle Corp. may acquire aircraft and operate air transportation services in
its own name or on behalf of or in cooperation with an airline other than
Northwest, subject to the following conditions:

       (a) Pinnacle Corp. and/or its Affiliates shall not engage in any such
activity until the earlier of the date on which Pinnacle has eighty-three
CRJ-200/440 Aircraft in its fleet and May 1, 2004;

       (b) During the term of this Agreement, no officers, employees,
facilities, Equipment or other assets of Pinnacle shall be used in connection
with such activity without Northwest's prior written approval; provided,
however, that on or after May 1, 2003, officers of Pinnacle may engage in
planning and coordination with respect to such activities to the extent that
such planning and coordination does not have an adverse impact on Pinnacle's
performance of Regional Airline Services hereunder;

       (c) This Agreement shall be amended in accordance with SECTION 5.19
("Most Favored Nations") below; and

       (d) The aircraft operated by Pinnacle Corp. or an Affiliate of Pinnacle
Corp. pursuant to this Section 2.15 (i) shall not have more seats than the
greater of forty-four (44) seats and the highest number of seats that a jet
aircraft may have and still have one less seat than an aircraft defined as a
"regional jet" under Northwest's collective bargaining agreement with its

                                       14
<Page>

pilots, and (ii) shall not otherwise cause Northwest to be in violation of its
collective bargaining agreement with its pilots.

                                  ARTICLE III

                                   EQUIPMENT

       SECTION 3.01 USE OF THE EQUIPMENT. Pinnacle agrees (a) that the Equipment
shall be used only to provide and/or support the Regional Airline Services
contemplated by this Agreement, (b) that the Equipment shall not be used by
Pinnacle for any other purpose without the prior written consent of Northwest,
and (c) that Pinnacle shall not acquire, lease or operate any aircraft or spare
engines other than the Aircraft and Spare Engines.

       SECTION 3.02 FLEET SIZE AND RELATED MATTERS.

       (a) DETERMINATION OF FLEET SIZE. As of the Effective Date, Pinnacle's
fleet consisted of twenty (20) Saab 340 turboprop aircraft, thirty-four (34)
CRJ-200/440 Canadair Regional Jet aircraft and three (3) Spare Engines.

              (i) EQUIPMENT ADDITIONS. Northwest and Pinnacle agree that (A)
       subject to Bombardier timely delivering Canadair Regional Jet Aircraft to
       Northwest as scheduled as of the Effective Date, an additional forty-nine
       (49) CRJ-200/440 Canadair Regional Jet Aircraft shall be added to
       Pinnacle's fleet on or before April 30, 2004, (B) three (3) Spare Engines
       shall be added to Pinnacle's fleet on or before December 31, 2004, (C) an
       additional one (1) Spare Engine shall be added to Pinnacle's fleet if
       Pinnacle demonstrates to Northwest's reasonable satisfaction that such
       Spare Engine is required for Pinnacle's operations under this Agreement,
       (D) Northwest shall have the right to cause from time to time up to an
       additional two hundred twenty-one (221) CRJ-200/440 Canadair Regional Jet
       Aircraft to be added to Pinnacle's fleet, and (E) Northwest shall have
       the right to cause from time to time up to an additional twenty-seven
       (27) Spare Engines to be added to Pinnacle's fleet.

              (ii) EQUIPMENT REMOVAL RIGHTS. Northwest and Pinnacle agree that
       (A) Northwest shall have the right from time to time to cause Pinnacle to
       assign the Saab Leases to Northwest (or its designee) or to sublease to
       Northwest (or its designee) any or all of the Saab 340 Aircraft; and (B)
       from and after that time when Pinnacle has more than eighty-three (83)
       CRJ-200/440 Aircraft, Northwest shall have the right upon at least ninety
       (90) days prior written notice to require the removal of CRJ-200/440
       Aircraft and related Spare Engines selected by Northwest from Pinnacle's
       fleet provided that at no time shall the number of such Aircraft and
       Spare Engines removed pursuant to this SECTION 3.02(A)(II)(B) cause the
       number of Aircraft in Pinnacle's fleet to be less than eighty-three (83)
       or cause the number of Spare Engines in Pinnacle's fleet to be less than
       six (6) or, if an additional Spare Engine has been added to Pinnacle's
       fleet pursuant to SECTION 3.02(A)(I)(C), seven (7).

                                       15
<Page>

              (iii) ADDITIONAL EQUIPMENT REMOVAL RIGHTS. Notwithstanding SECTION
       3.02(A)(II)(B), in the event of (A) a labor action or other event giving
       rise to Northwest's right to terminate this Agreement pursuant to SECTION
       10.03(E) and (B) Northwest has not yet exercised its termination rights,
       (1) Northwest shall have the right to terminate Leases for, and take
       immediate possession of, up to thirty-three (33) CRJ 200/440 Aircraft and
       related Spare Engines selected by Northwest, and (2) if the labor action
       or other event continues beyond 45 days Northwest shall have the right to
       select and terminate Leases for, and take immediate possession of, up to
       that number of CRJ 200/440 Aircraft in excess of fifty (50) and the
       related Spare Engines.

              (iv) FLEET CONTINUATION OPTION. In the event Northwest terminates
       this Agreement on February 29, 2012 pursuant to SECTION 10.01 below,
       Pinnacle shall have the option to retain eighty-three (83) Aircraft and
       seven (7) Spare Engines in its fleet until February 28, 2017; provided,
       however, that in order to exercise this option Pinnacle must provide
       Northwest written notice on or before February 28, 2011 of its intent to
       exercise the option. In the event Pinnacle exercises this option, (A)
       Northwest and Pinnacle shall enter into new Leases for the retained
       Aircraft which shall be substantially in the form of Exhibit A-1,
       provided that Northwest may require Pinnacle to establish maintenance
       reserves in accordance with the terms set forth in the form of Lease
       attached and that the Aircraft Rental Expense for each such Aircraft
       shall be the greater of fair market rental or [****] per Aircraft per
       month, (B) Northwest and Pinnacle shall enter into new Leases for the
       retained Spare Engines which shall be substantially in the form of
       Exhibit A-2, provided that Northwest may require Pinnacle to establish
       maintenance reserves in accordance with the terms set forth in the form
       of Lease attached and the Spare Engine Rental Expense for each such Spare
       Engine shall be the greater of the fair market rental or the
       then-existing Spare Engine Rental Expense for such Spare Engine, and (C)
       the retained Aircraft shall be re-painted as soon as possible after the
       Termination Date at Pinnacle's sole expense to remove all NW
       Identification from the Aircraft, including but not limited to
       re-painting the red tails of the Aircraft.

              (v) UNSCHEDULED AIRCRAFT. Subject to Pinnacle's approval, which
       shall not be unreasonably withheld, Northwest shall determine the
       appropriate level of unscheduled Aircraft to be included in Pinnacle's
       fleet from time to time.

              (vi) SPARE ENGINE REQUIREMENTS. Subject to Section 3.02(a)(i)
       above, Northwest and Pinnacle shall mutually determine the appropriate
       quantity of Spare Engines to be included in Pinnacle's fleet from time to
       time.

       (b) INDUCTION AND TERMINATION COSTS. All one-time expenses which are
associated with inducting Equipment shall be paid one hundred percent (100%) by
Pinnacle. All return costs and expenses associated with the return of Equipment
shall be paid one hundred percent (100%) by Pinnacle without reimbursement by
Northwest; provided, however, in the event Northwest exercises its Equipment
removal rights pursuant to SECTION 3.02(A)(II)(B) above, Pinnacle shall not be
required to meet the return conditions in the Leases for the Aircraft and Spare
Engines that are thus removed from Pinnacle's fleet unless Northwest intends to
return such Equipment to the lessor under the Leases.

                                       16
<Page>

       (c) AIRCRAFT RE-CERTIFICATION. Northwest may, at its sole option, direct
Pinnacle to take such actions as are necessary to cause 44-seat Aircraft to be
re-certificated as 50-seat Aircraft or to take such actions as are necessary to
cause 50-seat Aircraft to be re-certificated as 44-seat Aircraft and all Direct
Costs which are associated with such Aircraft re-certifications shall be paid
one hundred percent (100%) by Northwest. Any such Aircraft re-certifications
will be accomplished within a mutually agreed time frame, but in any event
within sixty (60) days unless otherwise directed by Northwest.

       SECTION 3.03 LEASE OF THE EQUIPMENT. As of the Effective Date, Pinnacle
and Northwest (and/or an Affiliate of Northwest) have entered into Leases with
respect to the thirty-four (34) CRJ-200/440 Aircraft and three (3) Spare Engines
in Pinnacle's fleet and agree to enter into (or, as to Northwest, Northwest
agrees to cause such affiliate as Northwest may designate to enter into) a Lease
with respect to each additional CRJ-200/440 Aircraft and each additional Spare
Engine added to Pinnacle's fleet when and as Northwest takes delivery of such
additional Equipment if Northwest has determined to use such Equipment for
Regional Airline Services pursuant to this Agreement.

       SECTION 3.04 TERMS OF THE LEASES. Each Lease for the CRJ-200/440 Aircraft
A-1 and the Spare Engines shall be substantially in the forms of Exhibit A-1 and
Exhibit A-2, respectively, and shall include the following terms:

       (a) subject to Section 3.02 (a)(iv) above, the term of each Lease shall
be for a period ending on the Termination Date; provided, however, no Lease
shall be for a term longer than the term of the related head lease, if any;

       (b) the rent for Aircraft shall equal the Aircraft Rental Expense and
shall be payable monthly in advance;

       (c) the rent for Spare Engines shall equal the Spare Engine Rental
Expense and shall be payable monthly in advance; and

       (d) the Leases shall include such terms as are necessary to conform
provisions of the Leases to the head lease and to any ancillary documents
actually entered into by Northwest or its affiliate in connection with such
Equipment (to the extent Northwest requests conformation).

       SECTION 3.05 MANUFACTURER BENEFITS AGREEMENT. Northwest and Pinnacle have
concurrently entered into a Manufacturer Benefits Agreement.

       SECTION 3.06 EQUIPMENT MAINTENANCE, SERVICING AND CLEANING. Pinnacle
shall be responsible for all aspects of the maintenance in accordance with the
Maintenance Program (including any maintenance or modifications required by FAA
airworthiness directives and all routine and non-routine maintenance), servicing
and cleaning of the Equipment (except for ground handling as specified in
SECTION 4.02); provided, however, that with respect to the Canadair Regional Jet
Aircraft and Spare Engines, Pinnacle shall utilize General Electric for all
major shop-level engine maintenance and shall utilize Bombardier for heavy
airframe maintenance in accordance with the GE Agreements and the Bombardier
Agreement. In the

                                       17
<Page>

event Pinnacle is or becomes a party to such Agreements, Pinnacle shall not
execute any amendment or side letter to any of those Agreements without
Northwest's prior written consent. In the event spare engine and/or spare parts
pooling agreements are established for Airlink Carriers, Pinnacle will
participate in such agreements so long as such agreements reasonably address
Pinnacle's inventory needs, logistics requirements and configuration concerns.
In the event Northwest enters into agreements for auxiliary power unit (APU)
maintenance, avionics maintenance and/or landing gear overhauls with respect to
the Aircraft, Pinnacle shall utilize the vendors in such agreements for such
services; provided, however, Pinnacle's utilization of such vendors shall be
subject to (i) termination of Pinnacle's existing vendor contracts, if any, and
Northwest's payment of any early termination penalties imposed pursuant to
Pinnacle's contracts and (ii) reasonably satisfactory arrangements in respect of
Pinnacle's operational requirements.

       SECTION 3.07 THIRD PARTY GUARANTEES AND WARRANTIES. Pinnacle shall
administer, track and pursue warranty and guaranty claims under the purchase,
support and service agreements for the Equipment, so as to minimize operating
costs for the Equipment. Such efforts shall include establishment of all systems
and procedures necessary to track and submit warranty and guaranty claims,
including providing reports and information required to be provided under the
purchase, support or services agreement. Pinnacle shall not operate or maintain
the Equipment in a manner that could result in any warranty or guaranty being
terminated or voided, without the prior written consent of Northwest.

       SECTION 3.08 RELATED TRANSFER ARRANGEMENTS.

       (a) All leases and subleases of ground support equipment, tooling and
spare parts inventory agreements and vendor and/or maintenance agreements with
respect to the Equipment (collectively "Support Agreements") entered into by
Pinnacle after the Effective Date shall be assignable to Northwest without the
consent of the other party to such Support Agreement on termination of this
Agreement. Pinnacle shall, at Northwest's option, assign such Support Agreements
as Northwest shall designate to Northwest on termination of this Agreement.
Pinnacle shall use its best efforts to obtain the consent of the other party to
any such Support Agreements in effect as of the Effective Date and, subject to
obtaining such consents, if necessary, shall, at Northwest's option, assign such
Support Agreements as Northwest shall designate to Northwest on termination of
this Agreement. On termination of this Agreement and during the Option Term,
Northwest shall have the option to purchase from Pinnacle all ground support
equipment, tooling and spare parts inventory then owned by Pinnacle which are
used with or related to the Equipment for an amount equal to such assets' then
fair market value or depreciated book value, whichever is less. In the event
Northwest invokes its Equipment removal rights hereunder, on the Equipment
removal date and for a period of thirty (30) days thereafter, Northwest shall
have the option to purchase from Pinnacle all ground support equipment, tooling
and spare parts inventory then owned by Pinnacle which are used with or related
to the returning Equipment for an amount equal to such assets' then fair market
value or depreciated book value, whichever is less.

       (b) SUPPORT AGREEMENT CONTINUATION OPTION. Notwithstanding Section
3.08(a) above, in the event Pinnacle exercises its fleet continuation option in
Section 3.02(a)(iv) above, Pinnacle may continue in effect the Support
Agreements reasonably required to support the retained Aircraft and Spare
Engines until the earlier of the expiration date for the Support

                                       18
<Page>

Agreement and February 28, 2017. In such circumstances, (i) Pinnacle shall, at
Northwest's option, assign such retained Support Agreements as Northwest shall
designate to Northwest on February 28, 2017, and (ii) on February 28, 2017 and
for a period of thirty (30) days thereafter, Northwest shall have the option to
purchase from Pinnacle all ground support equipment, tooling and spare parts
inventory then owned by Pinnacle which are used with or related to the Aircraft
and/or Spare Engines for an amount equal to such assets' then fair market value
or depreciated book value, whichever is less.

       SECTION 3.09 EQUIPMENT FINANCING COORDINATION

       . Pinnacle shall coordinate and cooperate with Northwest with respect to
Equipment sale, purchase and lease transactions. Such coordination and
cooperation shall include, but is not limited to, cooperating with Northwest in
structuring the closing of Equipment sale, purchase or lease transactions in a
manner that will minimize the imposition of any local, city, county, state,
provincial, federal or foreign taxes or other governmental transfer charges
related to such transactions, providing Northwest with financial information
(audited and unaudited) that Northwest may then provide to third parties,
assisting in raising capital through the sale of either debt and/or equity in
connection with the financing or leasing of the Equipment where and as requested
by Northwest (including but not limited to participating in meeting with the
manufacturer, potential investors and sources of financing or lease equity to
discuss Pinnacle's financial and operational performance and outlook), and full
cooperation in meeting appropriate return conditions of each Equipment upon
expiration of the Equipment's Lease.

       SECTION 3.10 SPARE PARTS INVENTORY; APPLICATION OF CREDITS. Northwest
may, at its option, purchase spare parts inventory items designated by Northwest
from Bombardier or other third parties and either sell such parts to Pinnacle at
Northwest's Direct Cost or lease such parts to Pinnacle. Terms of the spare
parts lease agreement, including but not limited to, administration of
inventory, scope of inventory purchase, lease conditions and reimbursement
mechanisms, will be mutually agreed. Northwest and Pinnacle shall from time to
time determine the most economical use of manufacturer, supplier or servicer
credits obtained from third parties in connection with the Regional Airline
Services provided pursuant to this Agreement. If it is determined that the most
economical use of credits provided to Northwest is through Pinnacle's use,
Northwest may require Pinnacle to purchase such credits from Northwest at the
face value of the credits. However, in no event shall Pinnacle be required to
purchase credits from Northwest that it cannot utilize within 180 days of the
date of purchase from Northwest.

                                   ARTICLE IV

                             ANCILLARY ARRANGEMENTS

       SECTION 4.01 COORDINATION WITH PINNACLE.

       (a) SCHEDULES AND TIMETABLES. Northwest shall file and maintain schedules
with all applicable schedule distribution systems for all Scheduled Flights, and
such schedules

                                       19
<Page>

shall be filed and maintained by Northwest together with the schedules for its
flights. Northwest shall include and list all Scheduled Flights providing
Regional Airline Services in the schedule publication program of Northwest.
Northwest shall, at its expense and sole discretion, furnish to Pinnacle an
adequate supply of current printed Northwest timetables and contracts of
carriage consistent with Governmental Regulations and Northwest's timetable
publication program. Northwest shall include Scheduled Flights operated by
Pinnacle in all appropriate flight information systems on which Northwest
flights are listed.

       (b) TRAVEL PRIVILEGES. Northwest and Pinnacle shall mutually agree upon
the travel privileges which each shall make available to the employees and
directors of the other.

       (c) UNITED STATES WEATHER BUREAU INFORMATION. Upon request of Pinnacle or
its flight crews, Northwest shall at its sole cost furnish Pinnacle such United
States Weather Bureau information or data as may be available to Northwest
pursuant to a separate written agreement; provided, however, that neither
Northwest nor its employees will be responsible or liable for the accuracy
thereof. So long as Northwest shall maintain its communications link with the
National Weather Service, Northwest shall provide the necessary communications
to permit Pinnacle to continue providing weather data to the National Weather
Service. Northwest shall provide any available National Weather Service data
through computer link-up to Pinnacle.

       (d) INFORMATION SYSTEMS. Northwest and Pinnacle have concurrently entered
into a separate written agreement with respect to the information systems
support Northwest will provide to Pinnacle.

       SECTION 4.02 GROUND HANDLING.

       (a) PASSENGER AND RAMP HANDLING. Northwest will provide the Ground
Handling Functions at all Complementary Service Cities at the rates set forth in
SECTION 5.04(A); provided, however, that Northwest may, at its option, require
Pinnacle upon ninety (90) days prior written notice to provide the Ground
Handling Functions at Complementary Service Cities at a rate to be mutually
agreed. At a Primary Service City, Pinnacle shall employ its own ground support
equipment and personnel or a contract agent to perform the following functions:
(a) all gate check-in activities, (b) all passenger enplaning/deplaning
services, including but not limited to sky cap and wheel chair services, (c)
aircraft loading/unloading services, including but not limited to airside
busing, (d) passenger ticketing, (e) aircraft cleaning, including but not
limited to overnight cleaning, (f) jetbridge maintenance, and (g) janitorial
services (collectively, the "Ground Handling Functions"). At DTW and MSP,
Pinnacle shall use its own personnel and equipment or a contract agent to
perform the Ground Handling Functions described in this SECTION 4.02, except for
(i) passenger ticketing, (ii) airside busing, sky cap and wheel chair services,
(iii) jetbridge maintenance, and (iv) janitorial services, all of which services
Northwest shall provide [****]. At MEM, Pinnacle shall use only its own
personnel and equipment or a contract agent to perform the Ground Handling
functions described in this SECTION 4.02, except for (i) passenger ticketing,
and (ii) airside busing, sky cap and wheel chair services, all of which services
Northwest shall provide [****]. Notwithstanding anything to the contrary in this
Agreement, Northwest may, at its option, require Pinnacle upon ninety (90) days
prior written notice to utilize Northwest or a Northwest-designated contract
agent to perform the Ground Handling Functions at any or all of the Hub Cities,
Complementary Service Cities and Primary

                                       20
<Page>

Service Cities, provided that (i) the ground handling rates set forth in SECTION
5.04(A) below are adjusted as necessary to reimburse Pinnacle for the Direct
Cost of utilizing Northwest or a contract agent, as the case may be, and (ii)
the service standards applicable to any such Northwest-designated contract agent
are either reasonably satisfactory to Pinnacle or no less stringent than the
standards applicable to Northwest's own operations.

       (b) DEICING AND GLYCOL. At MEM, MSP and the Primary Service Cities,
Pinnacle shall use its own personnel and equipment or a contract agent to
perform deicing services for the Aircraft. Northwest shall provide, [****], all
deicing services in DTW and at Complementary Service Cities. Notwithstanding
anything to the contrary in this Agreement, Northwest may, at its option,
require Pinnacle upon ninety (90) days prior written notice to utilize Northwest
or a Northwest-designated contract agent to perform deicing services for the
Aircraft at MEM, MSP and the Primary Service Cities, provided that the service
standards applicable to any such Northwest-designated contract agent are either
reasonably satisfactory to Pinnacle or no less stringent than the standards
applicable to Northwest's own operations.

       SECTION 4.03 FACILITIES.

       (a) HUB CITIES. Pinnacle will sublease from Northwest airport facilities
at the Hub Cities as set forth in mutually agreeable sublease agreements. The
applicable Hub City facility charges are set forth in Exhibit B. In the event
Pinnacle requires additional facilities at any of the Hub Cities caused by the
expansion of Regional Airline Services, Northwest shall use its reasonable
efforts to obtain such facilities and provide them to Pinnacle at no additional
charge to Pinnacle. Northwest and Pinnacle agree that Northwest may relocate
Pinnacle to comparable facilities at the Hub Cities, provided that Northwest
pays Pinnacle's reasonable relocation expenses.

       (b) SERVICE CITIES. At Complementary Service Cities, Northwest shall
provide Pinnacle with the Ground Handling Functions pursuant to SECTION 4.02
hereof, utilizing Northwest's owned and/or leased premises and equipment
(including jetbridges) located thereon. Northwest shall cooperate with
Pinnacle's efforts to become a signatory carrier at such airports; provided,
however, that if Pinnacle becomes a signatory carrier at any such airport
Pinnacle shall vote as directed by Northwest on any matters submitted to the
signatory carriers for a vote. At Primary Service Cities, Pinnacle shall be
solely responsible for all of its facilities requirements, including but not
limited to jetbridges; provided, however, if Northwest owns and/or leases
facilities at a Primary Service City and elects to provide Ground Handling
Functions to Pinnacle, Northwest shall provide such services to Pinnacle
pursuant to SECTION 4.02 hereof, utilizing Northwest's owned and/or leased
premises and equipment (including jetbridges) located thereon. Northwest will
determine in its sole discretion whether a jetbridge will be used at a Primary
Service City.

       (c) MAINTENANCE FACILITIES. Except as provided in Section 3.06,
maintenance facilities used to perform maintenance on the Equipment
("Maintenance Facilities") pursuant to lease or ownership arrangements entered
into after the Effective Date, shall be at such locations and pursuant to terms
mutually agreeable to both parties. In the event Northwest provides the
Maintenance Facility to Pinnacle, it will do so according to the terms of a
mutually agreeable lease or sublease. Northwest shall reimburse Pinnacle on a
monthly basis in accordance with

                                       21
<Page>

SECTIONS 5.07 and 5.08 for such Maintenance Facilities expenses incurred by
Pinnacle. The cost to Pinnacle for Maintenance Facilities leased or owned by
Pinnacle as of the Effective Date or thereafter, will be reimbursed in
accordance with SECTIONS 5.07 and 5.08.

       (d) LANDING FEES. Pinnacle shall be responsible for landing fees at all
airports to which it provides Regional Airline Services pursuant to this
Agreement and at all airports to which a Scheduled Flight, Non-Scheduled Flight
or Charter Flight is diverted.

       (e) SIGNAGE. Subject to Governmental Regulations, Pinnacle shall display
at all ticketing and check-in locations such signage or other forms of
advertisement to identify and promote Northwest's service as Northwest may
specify and as approved by the relevant airport authority. All signage utilizing
the NW Identification shall be provided by Northwest at its sole cost, shall be
the property of Northwest and shall be subject to the applicable provisions of
Article VII below. Pinnacle shall not use the Pinnacle Identification on any
signage or other forms of advertisement used to identify or promote the Regional
Airlines Services (except as otherwise required by Governmental Regulations).

       (f) RELATED TRANSFER ARRANGEMENTS. All leases and subleases of facilities
used in connection with Regional Airline Services, including Maintenance
Facilities for the Equipment (collectively, "Facilities Leases") entered into by
Pinnacle after the Effective Date shall be assignable to Northwest without the
consent of the other party to such Facility Lease on termination of this
Agreement or the withdrawal of Scheduled Flights from such airport, provided
that if the consent of the facility lessor is required by contract or
Governmental Regulations, Pinnacle will use its best efforts to obtain such
consent at the time the Facility Lease is entered into and to incorporate such
consent in the terms of the Facility Lease. Pinnacle shall, at Northwest's
option, assign such Facilities Leases as Northwest shall designate to Northwest
on termination of this Agreement or the withdrawal of Scheduled Flights from
such airport. Pinnacle shall use its best efforts to obtain the consent of the
other party to such Facilities Leases in effect as of the Effective Date and,
subject to obtaining such consents, if necessary, shall, at Northwest's option,
assign such Facilities Leases as Northwest shall designate to Northwest on
termination of this Agreement or the withdrawal of Scheduled Flights from such
airport. On termination of this Agreement and during the Option Term, Northwest
shall have the option to purchase from Pinnacle all facilities used in
connection with Regional Airline Services, including Maintenance Facilities for
the Equipment, then owned by Pinnacle for an amount equal to such assets' then
fair market value or depreciated book value, whichever is less. On the
withdrawal of Scheduled Flights from an airport and for a period of thirty (30)
days thereafter, Northwest shall have the option to purchase from Pinnacle all
facilities used in connection with Regional Airline Services at such airport,
including Maintenance Facilities for the Equipment, then owned by Pinnacle for
an amount equal to such assets' then fair market value or depreciated book
value, whichever is less.

       (g) MAINTENANCE FACILITIES CONTINUATION OPTION. Notwithstanding Section
4.03(f) above, in the event Pinnacle exercises its fleet continuation option in
Section 3.02(a)(iv) above, Pinnacle may continue in effect all leases and
subleases of Maintenance Facilities reasonably required to support the retained
Aircraft and Spare Engines until the earlier of the expiration date for such
agreement and February 28, 2017. In such circumstances, (i) Pinnacle shall, at
Northwest's option, assign such retained leases and subleases of Maintenance
Facilities

                                       22
<Page>

as Northwest shall designate to Northwest on February 28, 2017, and (ii) on
February 28, 2017 and for a period of thirty (30) days thereafter, Northwest
shall have the option to purchase from Pinnacle all Maintenance Facilities for
the retained Aircraft and Spare Engines then owned by Pinnacle for an amount
equal to such assets' then fair market value or depreciated book value,
whichever is less.

       SECTION 4.04 DATA COMMUNICATIONS. Northwest shall provide to Pinnacle at
all Service Cities and Hub Cities [****] telephone data circuit lines, the use
of computer reservation terminals, printers and modems, including hardware,
software and maintenance support for such equipment.

       SECTION 4.05 SECURITY. Northwest will provide for Pinnacle's use the
security equipment in place, as of the Effective Date, at all Complementary
Service Cites, at all existing Primary Service Cities and the Hub Cities.
Northwest agrees to provide, at Northwest's sole expense, for Pinnacle's use at
all new Primary Service Cities the same type of security equipment. Any
additional security equipment required due to future Governmental Regulations
shall be provided by Pinnacle at its sole expense at Primary Service Cities, and
shall be provided by Northwest at its sole expense at Hub Cities and
Complementary Service Cities. At all Complementary Service Cities and the Hub
Cities, Northwest agrees to pay Pinnacle's allocated share of all maintenance
expenses associated with all security equipment and to pay Pinnacle's allocated
share of all personnel expenses (including overtime) associated with the
operation of the equipment and all airport security-related functions,
including, without limitation, passenger screening and activities related to
security directives imposed by Governmental Regulations. At Primary Service
Cities, Pinnacle agrees to pay all or its allocated share of all maintenance
expenses associated with all security equipment and to pay all or its allocated
share of all personnel expenses (including overtime) associated with the
operation of the equipment and all airport security related functions,
including, without limitation, passenger screening and activities related to
security directives imposed by Governmental Regulations. Notwithstanding the
foregoing, the parties acknowledge and agree that as of the Effective Date the
U.S. government is in the process of taking over airport security, and the
parties will negotiate in good faith regarding any changes to this Agreement
that may be necessary as a result.

       SECTION 4.06 RESERVATION SERVICES. During the term of this Agreement,
Northwest shall handle, at its sole expense, reservations for all passenger air
transportation on Scheduled Flights operated pursuant to this Agreement.
Reservations shall be handled in the same manner and subject to the same
standards utilized by Northwest for its own reservations. All reservations shall
be made in the name of Northwest unless otherwise required by Governmental
Regulations. Northwest shall be sole owner of any customer or passenger data
relating to the Scheduled Flights and related reservation services.

       SECTION 4.07 TICKETING SERVICES AND TICKETING PROCEDURES.

       (a) TICKETING SERVICES. At all of its ticketing locations, Northwest
shall, at its sole expense, sell, issue and exchange tickets for passenger air
transportation on all Scheduled Flights to be operated pursuant to this
Agreement utilizing Northwest ticket stock and all related accounting forms
printed with the Northwest logo, name and format ("Northwest Tickets").
Northwest hereby appoints Pinnacle as its agent, and Pinnacle hereby agrees to
act as

                                       23
<Page>

Northwest's agent, at all Pinnacle ticketing locations in connection with the
sale and issuance of all passenger tickets by Pinnacle and with the same duties
owed to Northwest in that capacity as is customary in the industry between
airlines. At all of its ticketing locations, Pinnacle shall sell, issue and
exchange Northwest Tickets for passenger air transportation on all Scheduled
Flights to be operated pursuant to this Agreement and to be provided by and over
the routes of Northwest (collectively, "Ticketing Services"). Nothing in this
SECTION 4.07(A) shall be deemed to alter or conflict with the provisions of
SECTION 9.01 hereof. Air carriers and other agencies other than Northwest may
also issue tickets for travel to be performed by Pinnacle .

       (b) TICKETING PROCEDURES. The procedures followed and standards applied
by Pinnacle in performing the Ticketing Services shall conform in all material
respects to Northwest's own procedures and standards applicable to the issuance
of Northwest Tickets and to the collection and remittance of the proceeds of
such sales. Pinnacle employees performing Ticketing Services shall adhere to
Northwest's procedures and standards as shall be provided to Pinnacle in
writing. In accordance with SECTION 8.02 below, Pinnacle shall be responsible
for collecting and shall pay to Northwest any Ticket Taxes and Fees required to
be collected under applicable law on Tickets sold by Pinnacle utilizing
Northwest ticket stock.

       (c) FREQUENT FLYER PROGRAM. Pinnacle agrees to accept Northwest frequent
flyer tickets and to provide transportation services pursuant to such tickets at
no charge to Northwest. All travel under the frequent flyer program solely on
Pinnacle shall entitle a passenger to such credit as shall be equivalent to the
credit offered on Northwest for comparable mileage segments. Northwest will
provide such credit to members of its frequent flyer program who travel on
Pinnacle at no charge to Pinnacle.

       (d) SUPPLIES. Northwest shall, at its sole expense, provide an adequate
supply of ticket office forms and specialized supplies (such as baggage tags,
but excluding normal office supplies such as paper, stationery, envelopes, memo
pads and the like) bearing the NW Identification for use by Pinnacle subject to
the applicable provisions of Article VII below.

       (e) TICKETING COSTS. All travel agency commissions attributable to
Scheduled Flights shall be Northwest's expense. Northwest shall pay all computer
reservation system fees attributable to passengers on Scheduled Flights. In the
event Governmental Regulations preclude the payment of these fees by Northwest
and Pinnacle then pays them, Northwest shall immediately begin paying Pinnacle a
"Traffic Referral" commission on a semi-monthly basis in an amount equal to such
fees formerly paid by Northwest for Pinnacle. Such commission shall be
retroactive to the date on which such fees were no longer lawfully paid by
Northwest and shall be included in the semi-monthly payments to be made by
Northwest pursuant to SECTION 5.02.

       SECTION 4.08 BAGGAGE HANDLING SERVICES. "Baggage Handling Services" shall
consist of the following:

       (a) At all Complementary and Hub Cities, Pinnacle and Northwest shall
exchange and transfer baggage in accordance with procedures to be mutually
agreed upon and generally utilized by the parties.

                                       24
<Page>

       (b) The procedures utilized in performing such Baggage Handling Services
shall conform in all respects to Northwest's own standards and procedures as
adapted to Pinnacle's Aircraft and operations.

       (c) For purposes of baggage claims, Pinnacle will be treated as if it
were a party to standard industry ticketing and baggage agreements with
Northwest and other air carriers. Pinnacle will make available at the request of
any passenger excess valuation insurance, if any, offered by Northwest to the
extent such insurance covers Pinnacle's flights and Northwest's flights. SECTION
4.09 AIR CARGO HANDLING SERVICES. "Air Cargo Handling Services" shall consist of
the following:

       (a) At each location at which Northwest operates Ticketing Services,
Northwest shall at no charge to Pinnacle accept Air Cargo for shipment on
flights to be operated by and over the routes of Pinnacle or Northwest.
Northwest shall issue air waybills covering Air Cargo and shall prepare a
"Transfer Manifest" for each Pinnacle flight on which there shall be an Air
Cargo shipment which transfer manifest shall set forth all Air Cargo to be
carried on the flight.

       (b) Northwest hereby appoints Pinnacle as its agent, and Pinnacle hereby
agrees to act as Northwest's agent, at all Pinnacle ticketing locations in
connection with the sale and issuance of all air waybills by Pinnacle and with
the same duties owed to Northwest in that capacity as is customary in the
industry between airlines. Pinnacle agrees to observe all Northwest procedures
and standards applicable to the issuance of air waybills and to the collection
and remittance of the proceeds of such sales. Pinnacle employees performing such
duties shall adhere to Northwest's procedures and standards as shall be provided
to Pinnacle in writing. In accordance with SECTION 8.02 below, Pinnacle shall be
responsible for collecting and shall pay to Northwest any Ticket Taxes and Fees
required to be collected under applicable law on air waybills sold by Pinnacle
utilizing Northwest air waybills. Nothing in this SECTION 4.09(B) shall be
deemed to alter or conflict with the provisions of SECTION 9.01 hereof. Air
carriers other than Northwest may also issue air waybills for cargo
transportation to be performed by Pinnacle.

       (c) Pinnacle shall provide Air Cargo handling services at Pinnacle's
ticketing locations for and on behalf of Northwest for Air Cargo carried solely
on Pinnacle or on both an Pinnacle flight and a Northwest flight. Such handling
services shall be performed in accordance with Northwest's procedures and
standards as provided to Pinnacle in writing, including but not limited to (1)
accepting all Air Cargo that Northwest accepts, such as pets/AVI (other live
animals), human remains, Priority Service (SPC) freight and perishables, unless
otherwise mutually agreed, and (2) keeping facilities open at least one and
one-half (1.5) hours before and one (1) hour after each Scheduled Flight for
customers to deliver and pick up Air Cargo.

       (d) For Air Cargo carried solely on Pinnacle or on both an Pinnacle
flight and a Northwest flight, Pinnacle and Northwest shall charge rates in
accordance with Northwest's applicable rates and tariffs; such revenues shall be
paid 100% to and retained by Northwest.

                                       25
<Page>

       (e) For purposes of Air Cargo claims, Pinnacle will be treated as if it
were a party to standard industry ticketing and baggage agreements with
Northwest and other air carriers.

       (f) Northwest shall, at its sole expense, supply Pinnacle with all
necessary Air Cargo forms and supplies in an agreed upon form with the NW
Identification, subject to the applicable provisions of Article VII below.
Northwest and Pinnacle shall utilize such forms and supplies when accepting Air
Cargo for transport on Pinnacle's flights.

       SECTION 4.10 USE OF COMAT. Northwest and Pinnacle shall each provide to
the other, at no cost to the other and on a non-discriminatory basis, access to
its respective COMAT system for the movement and acquisition of priority
aircraft maintenance parts and other company material. Northwest's failure to
deliver timely a maintenance component via COMAT, whether timely or at all,
shall not cause an affected Scheduled Flight to be excluded in calculating
Pinnacle's on-time performance and completion factors. All access shall be
consistent with Northwest's and Pinnacle's respective published COMAT procedures
and policies, as amended from time to time. Northwest shall provide to Pinnacle
at no cost and on a non-discriminatory basis, access to Northwest's VIP express
cargo service to the extent necessary for Aircraft out of service recovery.

       SECTION 4.11 SLOTS AND ROUTE AUTHORITIES. During the term of this
Agreement (including any Renewal Terms) or upon the expiration or termination of
this Agreement, Northwest may, in its sole discretion, require Pinnacle to
transfer to Northwest or its designee at no charge any airport takeoff or
landing slots, route authorities or other regulatory authorities as Northwest
shall designate which have been or are being used for Regional Airlines Services
under this Agreement.

       SECTION 4.12 EMERGENCY RESPONSE AND FAMILY ASSISTANCE. Northwest and
Pinnacle shall enter into a separate written agreement with respect to emergency
response and family assistance services to be provided to Pinnacle by Northwest
at no charge in connection with the Regional Airlines Services operated under
this Agreement.

                                   ARTICLE V

                          REVENUES, PAYMENTS AND SETOFF

       SECTION 5.01 REVENUES. Pinnacle acknowledges and agrees that all revenues
resulting from the sale and issuance of passenger tickets and cargo air waybills
associated with the operation of the Aircraft and all other sources of revenue
associated with the operation of the Aircraft are the sole property of
Northwest, including without limitation ticket change fees, unaccompanied minor
fees, beverage services, excess baggage fees and nonrevenue pass travel charges.

       SECTION 5.02 PAYMENTS TO PINNACLE .

                                       26
<Page>

       (a) REPORTS. Pinnacle shall provide to Northwest periodic reports with
respect to the number of actual, completed Block Hours and Cycles of regional
jet and turboprop service flown by Pinnacle (each in respect of Scheduled
Flights, Charter Flights and Non-Scheduled Flights) in accordance with the
following schedule in each calendar month during the term of this Agreement:

       DAY OF MONTH REPORT DUE                 PERIOD COVERED BY REPORT
       -----------------------                 ------------------------

                22                             1st - 15th of Month

                7                              Complete Previous Month

Pinnacle shall also provide Northwest periodic reports with respect to its
Monthly Seat Days in accordance with the following schedule in each calendar
month during the term of this Agreement:

       DAY OF MONTH REPORT DUE                 PERIOD COVERED BY REPORT
       -----------------------                 ------------------------

                7                              Complete Previous Month

       (b) PAYMENT SCHEDULE. Northwest shall remit to Pinnacle by wire transfer
of immediately available funds by the close of business on the 30th day of each
calendar month (or the next banking day if the 30th is a bank holiday), as a
provisional payment, Pinnacle's Block Hour Payment, Cycle Payment, IOP Payment,
Ground Handling Payment and any payments due pursuant to SECTION 5.06 below for
the period covered by the Block Hour Report and Cycle Report furnished by
Pinnacle on the 22nd day of the month.

Northwest shall remit to Pinnacle by wire transfer of immediately available
funds by the close of business on the 15th day of each month (or the next
banking day if the 15th is a bank holiday), as a final payment, Pinnacle's Block
Hour Payment, Cycle Payment, IOP Payment, Ground Handling Payment, Fixed Cost
Payment, Monthly Margin Payment, any payments due pursuant to SECTION 5.06 or
SECTION 5.07 below for the preceding month and any payments due with respect to
Charter Flights, less the amount of the provisional payment made on the 30th day
of the preceding month.

For purposes of this SECTION 5.02, the above referenced payments to Pinnacle
shall be calculated as follows for any applicable period:

              (i) the Block Hour Payment will be equal to the then applicable
       Block Hour Rate multiplied by the number of actual, completed Block Hours
       reported in Pinnacle's Block Hour Report for such period for Scheduled
       Flights and Non-Scheduled Flights, plus

              (ii) the Cycle Payment will be equal to the then applicable Cycle
       Rate multiplied by the number of actual, completed Cycles reported in
       Pinnacle's Cycle Report for such period for Scheduled Flights and
       Non-Scheduled Flights, plus

                                       27
<Page>

              (iii) the IOP Payment, if any, will be determined in accordance
       with Section 5.03(c) below.

              (iv) the Ground Handling Payment will be equal to the then
       applicable Ground Handling Rate multiplied by the number of actual,
       completed Cycles reported in Pinnacle's Cycle Report for such period for
       Scheduled Flights and Non-Scheduled Flights, plus

              (v) any payments due pursuant to SECTION 5.06 below, plus

              (vi) with respect to the payment to be made on the 15th day of
       each month, Pinnacle's Fixed Cost Payment determined in accordance with
       SECTION 5.05 below and any payments due pursuant to SECTION 5.07 below,
       plus

              (vii) with respect to the payment to be made on the 15th day of
       each month, the Monthly Margin Payment determined in accordance with
       SECTION 5.09 or SECTION 5.12 below, as applicable, plus

              (viii) with respect to the payment to be made on the 15th day of
       each month, any payment due with respect to Charter Flights.

Adjustments arising from Northwest's audit of the Block Hour Report, Cycle
Report and/or Monthly Seat Days Report may be made within ninety (90) days
following the end of each month. Any reference to the 30th day of a month in
this Section 5 will be deemed to mean the last day of February with respect to
that month.

       SECTION 5.03 INITIAL BLOCK HOUR AND CYCLE RATES; IOP PROGRAM ADJUSTMENT

       (a) INITIAL BLOCK HOUR RATE. The Block Hour Rate for the time period
through December 31, 2004 shall be as follows for the applicable period:

                                         Blended Block            Block
                                           Hour Rate            Hour Rate
       PERIOD                             CRJ-200/440            SAAB 340
       ------                             -----------            --------
       Effective Date - 12/31/02             [****]               [****]
       01/01/03 - 12/31/03                   [****]
       01/01/04 - 12/31/04                   [****]

       (b) INITIAL CYCLE RATE. The Cycle Rate for the time period through
December 31, 2004 shall be as follows for the applicable period:

                                       28
<Page>

                                          Blended Cycle            Cycle
                                               Rate                 Rate
       PERIOD                              CRJ-200/440            SAAB 340
       ------                              -----------            --------
       Effective Date - 12/31/02              [****]               [****]
       01/01/03 - 12/31/03                    [****]
       01/01/04 - 12/31/04                    [****]

       (c) IOP PROGRAM INCIDENT ADJUSTMENT. If during any month during the term
of this Agreement Pinnacle cancels one or more Scheduled Flights in connection
with one or more IOP Program Incidents, Northwest shall pay to Pinnacle an
amount determined in accordance with the following formula:

                     P=((IBH)*(BHR)* [****]) + ((ICYC)*(CYCR)* [****])

                     Where,

                     P is the IOP Payment to be made to Pinnacle ,
                     IBH       is the number of scheduled Block Hours cancelled
                               in connection with the IOP Program Incident(s),
                               calculated by the following formula: IBH=Pinnacle
                               scheduled Block Hours cancelled * (((% points of
                               Pinnacle's Scheduled Flights in Hub cancelled)-(%
                               points of Northwest scheduled flights in Hub
                               cancelled))/(% points of Pinnacle's Scheduled
                               Flights in Hub cancelled)),
                     BHR is the then applicable Block Hour Rate in which such
                     IOP Program Incident(s) occurred,
                     ICYC is the number of scheduled Cycles cancelled in
                     connection with the IOP Program Incident(s),
                               calculated by the following formula:
                               ICYC=Pinnacle's scheduled Cycles cancelled * (((%
                               points of Pinnacle's Scheduled Flights in Hub
                               cancelled)-(% points of Northwest scheduled
                               flights in Hub cancelled))/(% points of
                               Pinnacle's Scheduled Flights in Hub cancelled))),
                               and
                   CYCR is the then applicable Cycle Rate in which such IOP
                   Program Incident(s) occurred.

       SECTION 5.04 GROUND HANDLING RATES.

       For each year in the Annual Operating Plan prepared in accordance with
SECTION 2.12, the departures for the year will be categorized into the six
categories in the table below. The Ground Handling Rate for the time period
through December 31, 2004 for the Canadair Regional Jet Aircraft operated by
Pinnacle shall be the weighted average of the rates set forth in the following
table for the applicable period:

                                       29
<Page>

<Table>
<Caption>
                              Effective Date -         01/01/03-                01/01/04-
       STATION                12/31/02                 12/31/03                 12/31/04
       -------                --------                 --------                 --------
<S>                              <C>                    <C>                      <C>
       DTW                       [****]                 [****]                   [****]
       MEM                       [****]                 [****]                   [****]
       MSP                       [****]                 [****]                   [****]
       Comp. Cities              [****]                 [****]                   [****]
       PSCother                  [****]                 [****]                   [****]
       PSCpin                    [****]                 [****]                   [****]
</Table>

       Comp.Cities means Complementary Service Cities.

       PSCother means a Primary Service City where Pinnacle utilizes a contract
       agent to perform the Ground Handling Functions.

       PSCpin means a Primary Service City where Pinnacle personnel perform the
       Ground Handling Functions.

       Example: If Pinnacle's 2003 Annual Operating Plan includes 25,000 annual
       departures in MEM, 40,000 annual departures in DTW, 35,000 annual
       departures in MSP, 50,000 annual departures in Complementary Service
       Cities, 30,000 annual departures in PSCpin and 20,000 annual departures
       in PSCother, the Ground Handling Rate shall be calculated as follows:

       Ground Handling Rate =
       [(25,000*[****])+(40,000*[****])+(35,000*[****])+(50,000*[****])
       +(30,000*[****])+(20,000*[****])]/200,000 = [****]

       SECTION 5.05 FIXED COSTS. Pinnacle's Fixed Cost Payment arising from
operation of the Aircraft shall be calculated on a monthly basis as follows:

       Fixed Cost Payment = [****] where,

       [****]

       [****]

       [****]

       [****]

       [****]

       [****]

       [****]

       SECTION 5.06 FUEL.

       (a) FUEL ADMINISTRATION. As soon as practicable, Northwest will provide
to Pinnacle the following fuel-related administrative services: (i) negotiation
of fuel supply, fuel

                                       30
<Page>

storage and into-plane service contracts for the Aircraft, (ii) payment of all
into-plane and fuel invoices in respect of the Aircraft, (iii) monthly
reconciliations (by the 15th of the following month) with respect to fuel
boarded, inventory and purchases, and (iv) monthly reports with respect to fuel
boarded by station, flight and Aircraft.

       (b) In the event Northwest is unable to execute the administrative
functions as outlined in SECTION 5.06 (a) (ii) and (iii), above, and until such
time that it can, the following procedures will apply:

              (i) Current reporting mechanisms in place as of the Effective Date
       of this Agreement will continue with Pinnacle reporting to Northwest by
       the 15th day of the following month, the actual gallons boarded and the
       fuel price paid (including into-plane fees and taxes).

              (ii) Current payment mechanisms in place as of the Effective Date
       of this Agreement will continue with the exception that the applicable
       monthly Margin (per SECTION 5.09) will only be paid on the actual fuel
       boarded multiplied by the lesser of the actual fuel price, including
       into-plane fees and taxes, and $.78/gallon (the "Fuel Price"). In
       addition, no adjustment will be made to bring Pinnacle's fuel expense up
       to $.78/gallon. The reimbursement will be through the SECTION 5.02 wire
       transfer occurring on the 15th day of the following month.

       (c) FUEL PAYMENT. On and after the date on which Northwest executes the
administrative functions outlined in Section 5.06(a) (ii) and (iii) above,
Northwest will charge Pinnacle on a pre-pay basis the last week of each month
for fuel to be boarded for the 1st -15th of the succeeding month. Pinnacle will
pay for that fuel through a set-off of the amount due from the SECTION 5.02 wire
transfer on the 15th of the month for which the prepay is occurring. Northwest
will reimburse Pinnacle for this pre-pay amount through the SECTION 5.02 wire
transfer on the 30th of the month. Likewise, Northwest will charge Pinnacle on a
pre-pay basis the second week of the month for fuel to be boarded for the
16th-end of month. Pinnacle will pay for that fuel through a set-off of the
SECTION 5.02 wire transfer on the 30th of the month for which the prepay is
occurring. By the 15th of the following month, Northwest will reconcile the
pre-paid fuel expense for the preceding month with the actual expense (at a
price not to exceed the Fuel Price), and charge or credit Pinnacle with the
difference, including reimbursement for the second half pre-pay. This
reimbursement and month end adjustment for the preceding month will be handled
via the SECTION 5.02 wire transfer occurring the 15th day of the following month
through additional payment or set-off.

       The pre-pay will be based on using half of Pinnacle's prior month actual
boarded volume at the Fuel Price.

       Pinnacle shall have the right to audit on a semi-annual basis the
determination of the number of gallons of aircraft fuel boarded and shall report
any disputes to Northwest. Any dispute not reported to Northwest within thirty
(30) days of the conclusion of such audit shall be deemed waived.

                                       31
<Page>

       Northwest's fuel department shall have the right to audit on a monthly
basis the determination of the number of gallons of aircraft fuel boarded and
fuel price paid and shall report any disputes to Pinnacle. Any dispute not
reported to Pinnacle within thirty (30) days of the conclusion of such audit
shall be deemed waived.

       (d) PINNACLE REPORTING PROCEDURES. Pinnacle will provide to Northwest the
following fuel administrative service assistance: (i) Timely Fuel Management
System ("FMS") data entry by Pinnacle at Primary Service Cities including
month-end reconciling to the fixed base operator ("FBO") by the end of the
second business day, (ii) FMS coverage by Pinnacle when regular FMS person is on
vacation, leave, etc., (iii) Pinnacle will train new Pinnacle employees on FMS
due to turnover, vacation, etc., (iv) problems at FBO regarding supply of fuel
slips and bill of lading receipts will be addressed by Pinnacle personnel first
before involving Northwest Fuel Department.

       (e) FUEL BURN REVIEW PROCEDURES - CRJ. Northwest and Pinnacle agree to
review the fuel burn performance of the CRJ Aircraft for compliance with the
performance measure (burn rate ceiling) set below. Either party may initiate the
audit of the actual fuel burn against the set measure. The performance measure
includes both scheduled and non-scheduled fuel usage/expense. The ceiling is the
Northwest budgeted scheduled fuel burn per scheduled Block Hour [****] for
non-scheduled usage. For example, the 2002 performance measure (ceiling) is
equal to the Northwest scheduled fuel burn rate of [****] gallons per scheduled
block hour [****], which sets the ceiling at [****].

       In the event that the CRJ Aircraft's actual fuel burn for the period of
review is above the ceiling the parties will work together in good faith to
explain the variance relative to the ceiling and to resolve the cause of the
variance. If it is determined that actual fuel burn was above the ceiling for
reasons within the control of Pinnacle, Pinnacle will pay a Fuel Burn Penalty
Payment to Northwest and such payment shall be made in accordance with SECTION
5.08. The Fuel Burn Penalty Payment shall be calculated as follows:

       Fuel Burn Penalty Payment = [(total fuel expense/actual fuel price) /
scheduled Block Hours - performance ceiling] * completed scheduled Block Hours *
actual fuel price (not to exceed $.78 per gallon) + Margin applicable to the
fuel expense reimbursement pursuant to SECTION 5.09 or 5.12.

       SECTION 5.07 DIRECT EXPENSES. Northwest will reimburse Pinnacle for the
following expenses at the Direct Cost to Pinnacle. Reimbursement for these
expenses paid or accrued by Pinnacle in the prior month will be included in the
wire transfer to Pinnacle on the 15th of each month pursuant to SECTION 5.02(B)
above. Pinnacle will be responsible for providing Northwest with a copy of all
third party invoices and evidence of payment needed to determine the expense
amount and the timeliness of payment.

       (a) Equipment Rental Expense - less any performance guarantee payments or
credits that Pinnacle receives from the manufacturers.

       (b) Aviation Insurance - Aircraft hull insurance and aviation liability
insurance, including war risk liability and hull war risk insurance, subject to
the following:

                                       32
<Page>

              (i) in the event that Pinnacle obtains aviation insurance coverage
       as part of Northwest's aviation insurance placement, the rates used to
       determine Pinnacle's share of the aviation insurance expenses shall be
       the same as the rates used to determine Northwest's expense for such
       insurance, and Pinnacle's aviation liability insurance (including war
       risk liability) expense shall be the lesser of the expense based on the
       actual rates or [****] per Pinnacle RPM and Pinnacle's hull insurance
       (including hull war risk insurance) expense shall be the lesser of the
       expense based on the actual rates or [****] per dollar ($) of Pinnacle
       Fleet Value; and

              (ii) in the event that Pinnacle does not obtain aviation insurance
       under Northwest's placement, Pinnacle's aviation insurance expense shall
       be equal to [****] per Pinnacle RPM for aviation liability insurance
       (including war risk liability) and [****] per dollar ($) of Pinnacle
       Fleet Value for hull insurance (including hull war risk insurance) and
       such expense amount shall be the amount with respect to which a margin
       payment pursuant to Section 5.09 or 5.12 shall be made. If Pinnacle's
       actual aviation insurance expense exceeds the amounts above, the
       incremental insurance expense above the foregoing limits will be
       reimbursed by Northwest. In the event Pinnacle's actual aviation
       insurance expense is below the limits, Pinnacle shall remit to Northwest
       (through a set-off of the next amount due from the Section 5.02 wire
       transfer) an amount equal to the difference.

       (c) Engine maintenance - The CRJ 200/440 engine maintenance performed
pursuant to the GE Agreements less any warranty payments or credits that
Pinnacle receives, including but not limited to those from GE. If Northwest and
Pinnacle agree at any time to have the engine work performed elsewhere, the
reimbursement amount will be adjusted to take into account the new arrangement.
Notwithstanding the foregoing, Northwest will not reimburse Pinnacle for engine
maintenance performed pursuant to the GE Agreements which is accomplished
unreasonably in advance of the time such maintenance is required in accordance
with the Maintenance Program or which is accomplished for the sole purpose of
satisfying return conditions under the Lease.

       (d) Airframe maintenance - The CRJ 200/440 airframe maintenance performed
pursuant to Bombardier Agreement less any warranty payments or credits that
Pinnacle receives, including but not limited to those from Bombardier. If
Northwest and Pinnacle agree at any time to have the maintenance work performed
elsewhere, the reimbursement amount will be adjusted to take into account the
new arrangement. Notwithstanding the foregoing, Northwest will not reimburse
Pinnacle for airframe maintenance performed pursuant to the Bombardier Agreement
which is accomplished unreasonably in advance of the time such maintenance is
required in accordance with the Maintenance Program or which is accomplished for
the sole purpose of satisfying return conditions under the Lease.

       (e) Deicing services and glycol - subject to the provisions of Section
4.02(b) and reimbursed accordingly:

       (i)    Deicing services and glycol at Primary Service Cities and Hub
              Cities where a contracted agent is performing the service.

                                       33
<Page>

       (ii)   Glycol at Primary Service Cities and Hub Cities where Pinnacle
              performs the deicing function.

       (f) Maintenance Facilities, subject to the provisions of SECTION 4.03(C).

       (g) Jet bridges-In the event Northwest requires Pinnacle to enter into
agreements for new jet bridges in 2002, Northwest agrees to reimburse Pinnacle
for the depreciation or lease expenses incurred in 2002 only.

       (h) CRJ 200/440 auxiliary power unit (APU) maintenance expense, CRJ
200/440 avionics maintenance expense and CRJ 200/440 landing gear overhaul
expense less any warranty payments or credits that Pinnacle receives with
respect to any of the foregoing expenses.

       (i) Hub City facility charges pursuant to Exhibit B.

       (j) Airport security-related equipment maintenance expenses and personnel
expenses incurred by Pinnacle pursuant to SECTION 4.05.

       Notwithstanding the foregoing, Northwest will not reimburse Pinnacle for
any late payment charges, penalties and/or fees which Express incurs in
connection with payment of the expenses listed above.

       SECTION 5.08 BILLING. Northwest and Pinnacle shall bill each other on a
monthly basis in respect of amounts owed to each other under this Agreement not
contemplated under SECTION 5.02. If such billed items are not paid by the party
within sixty (60) days of the statement date, the aggregate amount of undisputed
items may be offset against or included in the next scheduled wire transfer
pursuant to SECTION 5.02(B). Disputed amounts must be paid when the dispute is
resolved, provided that such amount may be set off against or included in the
next scheduled wire transfer pursuant to SECTION 5.02(B) if the formerly
disputed amount is not paid within seven (7) days of resolution. Northwest may
also offset against the next scheduled wire transfer pursuant to SECTION 5.02(B)
the amount of any payment (including those under any Lease or the Note) with
respect to which Pinnacle shall have defaulted and shall have failed to cure
before the expiration of any applicable grace period.

       SECTION 5.09 MONTHLY MARGIN CALCULATION AND PAYMENT. The monthly Margin
Payment for the time period through December 31, 2006 shall be calculated as
follows:

       Monthly Margin Payment = (payments due to Pinnacle pursuant to SECTIONS
5.03, 5.04, 5.05, 5.06 and 5.07) * .14 / .86

       SECTION 5.10 ANNUAL MARGIN ADJUSTMENT PAYMENT. For the time period
through December 31, 2006, the parties will calculate Pinnacle's Margin in
accordance with SECTION 5.10(A) and, if required pursuant to SECTION 5.10(B)
below, one party will make a Margin Adjustment Payment to the other party.

                                       34
<Page>

       (a) CALCULATION OF THE TOTAL OPERATING COST AND THE MARGIN. Not later
than ninety (90) days following the end of 2002, 2003, 2004, 2005 and 2006,
Pinnacle shall deliver to Northwest its audited financial statements including
the calculation of its operating margin for Regional Airline Services provided
under this Agreement for the prior year (the "Margin") by dividing (x)
Pinnacle's Total Operating Income for Regional Airline Services for such year by
(y) Pinnacle's Total Operating Revenue for Regional Airline Services for such
year, subject to the following:

       In calculating the Margin, the amount of any incentives or penalties
(accounted for as a reduction to revenue) pursuant to SECTION 5.06, SECTION 5.14
and/or SECTION 5.15 below and any Saab rental revenue will not be included in
Pinnacle's Total Operating Revenue, and the following expenses will not be
included in Pinnacle's Total Operating Cost:

              (1) Increment above predicted employee bonuses and incentives.
       Predicted bonus and incentive levels are the amounts used in calculating
       the Block Hour, Cycle and Fixed Cost Rates for 2002, 2003, 2004, 2005 and
       2006, respectively.

              (2) Increment above market pay rates for Pinnacle's employees per
       the Parity Pay Agreement in Exhibit C.

              (3) The amount of any penalties pursuant to SECTION 5.15 (if not
       accounted for as a reduction to revenue).

              (4) The amount of any depreciation expense associated with capital
       expenditures in excess of $250,000 which are designated by Northwest as
       Section 5.10(a)(4) items because Northwest has determined that such
       capital expenditures are not necessary after taking into consideration
       the Annual Operating Plan and Pinnacle's obligations under this
       Agreement, within seventy-five (75) days after receiving written notice
       from Pinnacle of such capital expenditure pursuant to Section 6.01(a)(iv)
       below.

              (5) The amount of any Fuel Burn Penalty Payment pursuant to
       SECTION 5.06(D) (if not accounted for as a reduction to revenue).

              (6) The amount of any asset write-downs (excluding normal
       depreciation) or extraordinary charges as defined by GAAP.

              (7) Rental expense associated with the Saab 340 fleet not flown by
       Pinnacle.

              (8) The amount of any fines or penalties paid by Pinnacle to any
       governmental entity.

              (9) The CRJ 200/440 Aircraft and Spare Engine return costs
       including termination costs incurred by Pinnacle pursuant to Section
       3.02(b) above.

              (10) The amount of any late payment charges, penalties and/or fees
       incurred by Pinnacle.

              (11) The amount of any payment from Pinnacle to Northwest pursuant
       to Section 5.14 (if not accounted for as a reduction to revenue).

                                       35
<Page>

       The Margin shall be expressed as a decimal rounded to the fourth place.
The calculation of the Margin shall be derived from Pinnacle's reported
financial statements for such year and shall be determined in accordance with
GAAP.

       (b) ANNUAL MARGIN ADJUSTMENT PAYMENT. With respect to each calendar year
through and including 2006 (with the exception of 2002 for which the applicable
period is March 1, 2002 through December 31, 2002), if the Margin is less than
12%, Pinnacle shall receive from Northwest an amount determined as follows:

                     Ppin = [Total Operating Cost/.88] - Rev

                     where

                     Ppin is the amount payable to Pinnacle,
                     Rev is Total Operating Revenue for Regional Airline
                     Services for the applicable calendar year excluding any
                     incentives paid to Pinnacle pursuant to SECTION 5.15, and

                     Total Operating Cost excludes Items 1-11 in SECTION 5.10(A)
                     above.

With respect to each calendar year through and including 2006, if the Margin is
greater than 16%, Northwest shall receive from Pinnacle an amount determined as
follows:

                     Pnw = Rev - [Total Operating Cost/.84]

                     where,

                     Pnw is the amount payable to Northwest,
                     Rev is Total Operating Revenue for Regional Airline
                     Services for the applicable calendar year excluding any
                     incentives paid to Pinnacle pursuant to SECTION 5.15, and

                     Total Operating Cost excludes items 1-11 in SECTION 5.10(A)
                     above.

An amount payable pursuant to this SECTION 5.10(B) is a "Margin Adjustment
Payment." Northwest shall add in or setoff, as appropriate, any Margin
Adjustment Payment in the next wire transfer due to Pinnacle .

       (c) AUDIT OF TOTAL OPERATING COST AND THE MARGIN. Northwest shall have
the right to audit the calculation of the Total Operating Cost, the Margin and
the Margin Adjustment Payment, and shall report any disputes to Pinnacle. Any
dispute not reported to Pinnacle in writing within ninety (90) days of the
receipt of the audited financial statements and Margin calculation by Northwest
shall be deemed waived. The payment in respect of any dispute shall be handled
as a disputed amount in accordance with SECTION 5.08.

                                       36
<Page>

       SECTION 5.11 RATE ADJUSTMENTS. For the calendar year 2005, the Block
Hour, Cycle, Ground Handling and Fixed Cost Rates will be adjusted as described
below.

       (a) ONE TIME ADJUSTMENT FACTOR. Effective for the twelve-month period
beginning on January 1, 2005 the Block Hour Rate, Cycle Rate, and Ground
Handling rates (other than the rate for ground handling at Complementary Service
Cities) used for the 2004 calendar year will be multiplied by a One Time
Adjustment Factor (OTAF) and multiplied by (1 + CPPI). These adjusted rates will
be used for the twelve-month period beginning January 1, 2005. The OTAF will be
calculated as follows:

              (1) Determine Pinnacle's actual operating expenses for the
       twelve-month period ending December 31, 2004, excluding [****]

              (2) Determine the actual payment made to Pinnacle for the twelve
       month period ending December 31, 2004, excluding [****].

              (3) Divide the result of step (1) by the result of step (2).

       (b) INFLATION ADJUSTMENT. Effective for 2006, the Block Hour Rate, Cycle
Rate, and Ground Handling Rates (other than the rate for ground handling at
Complementary Service Cities) used for 2005 will be multiplied by (1+CPPI) to
establish the 2006 rates.

       (c) FIXED COST PAYMENT ADJUSTMENT. Effective for 2005 and 2006, the Fixed
Cost Payment formula will be multiplied by the OTAF.

       (d) Effective for 2007 the payment rates and mechanisms set forth in
SECTIONS 5.02 through 5.07 will be re-set through good faith negotiations
utilizing a payment methodology consistent with the methodology utilized through
2006; provided, however, that any increment above market pay rates for
Pinnacle's employees, per the Parity Pay Agreement in Exhibit C, will not be
considered in re-setting such Rates. The Rates for 2008, 2009, 2010 and 2011
will be determined by multiplying the prior year's Rates by (1+CPPI).

       (e) So long as this Agreement remains in effect, the payment rates and
mechanisms set forth in SECTIONS 5.02 through 5.07 will be re-set every fifth
year through good faith negotiations, commencing with the Rates effective for
2012, utilizing a payment methodology consistent with the methodology utilized
during the prior five (5) year period; provided, however, that any increment
above market pay rates for Pinnacle's employees, per the Parity Pay Agreement in
Exhibit C, will not be considered in re-setting such Rates. The Rates for the
years between each adjustment year will be determined by multiplying the prior
year's rates by (1 + CPPI).

       (f) In the event the parties are unable to reach agreement on new payment
rates and mechanisms through good faith negotiations, the Rates will be set
utilizing the following procedure: (i) The parties shall attempt to agree upon
an impartial industry expert to act as sole arbitrator. If the parties are
unable to agree upon an expert to so act, each party shall appoint an expert,
and the two experts so appointed shall appoint a third expert; (ii) Each party
shall submit a set of proposed Rates to the arbitrator(s); and (iii) The
arbitrator(s) shall choose a set of Rates from those submitted without modifying
either.

                                       37
<Page>

       SECTION 5.12 REVISED MONTHLY MARGIN CALCULATION AND PAYMENT. Effective
January 1, 2007, the monthly Margin Payment shall be calculated as follows:

                     Monthly Margin Payment = (payments due to Pinnacle pursuant
                     to SECTIONS 5.03, 5.04, 5.05, 5.06 and 5.07 (all adjusted
                     pursuant to SECTION 5.11)) * MMR / (1-MMR)

                     Where, MMR is the Market Margin Rate.

       SECTION 5.13 REVISED ANNUAL MARGIN ADJUSTMENT PAYMENT. Effective for 2007
and each calendar year thereafter, the parties will calculate Pinnacle's Margin
in accordance with SECTION 5.13(A) and, if required pursuant to SECTION 5.13(B)
below, one party will make a Margin Adjustment Payment to the other party.

       (a) CALCULATION OF THE TOTAL OPERATING COST AND THE MARGIN. Not later
than ninety (90) days following the end of 2007 and each subsequent calendar
year during the term of this Agreement, Pinnacle shall deliver to Northwest its
audited financial statements including the calculation of its operating margin
for Regional Airline Services provided under this Agreement for the prior year
(the "Margin") by dividing (x) Pinnacle's Total Operating Income for Regional
Airline Services for such year by (y) Pinnacle's Total Operating Revenue for
Regional Airline Services for such year, subject to the following:

       In calculating the Margin, the amount of any incentives or penalties
(accounted for as a reduction to revenue) pursuant to SECTION 5.06, SECTION 5.14
and/or SECTION 5.15 below and any Saab rental revenue will not be included in
Pinnacle's Total Operating Revenue, and the following expenses will not be
included in Pinnacle's Total Operating Cost:

              (1) Increment above predicted employee bonuses and incentives.
       Predicted bonus and incentive levels are the amounts used in calculating
       the Block Hour, Cycle and Fixed cost rates for 2006, grown each year by
       multiplying by (1 + CPPI).

              (2) The amount of any penalties pursuant to SECTION 5.15 (if not
       accounted for as a reduction to revenue).

              (3) The amount of any depreciation expense associated with capital
       expenditures in excess of $250,000 which are designated by Northwest as
       Section 5.13(a)(3) items because Northwest has determined that such
       capital expenditures are not necessary after taking into consideration
       the Annual Operating Plan and Pinnacle's obligations under this
       Agreement, within seventy-five (75) days after receiving written notice
       from Pinnacle of such capital expenditure pursuant to Section 6.01(a)(iv)
       below.

              (4) The amount of any Fuel Burn Penalty Payment pursuant to
       SECTION 5.06(D) (if not accounted for as a reduction to revenue).

              (5) The amount of any asset write-downs (excluding normal
       depreciation) or extraordinary charges as defined by GAAP.

              (6) Rental expense associated with the Saab 340 fleet not flown by
       Pinnacle.

                                       38
<Page>

              (7) The amount of any fines or penalties paid by Pinnacle to any
       governmental entity.

              (8) The CRJ 200/440 Aircraft and Spare Engine return costs
       including termination costs incurred by Pinnacle pursuant to Section 3.02
       (b) above.

              (9) The amount of any late payment charges, penalties and/or fees
       incurred by Pinnacle.

              (10) The amount of any payment from Pinnacle to Northwest pursuant
       to SECTION 5.14 (if not accounted for as a reduction to revenue).

       The Margin shall be expressed as a decimal rounded to the fourth place.
The calculation of the Margin shall be derived from Pinnacle's reported
financial statements for such year and shall be determined in accordance with
GAAP.

       (b) ANNUAL ADJUSTMENT TO MARGIN PAYMENT

       With respect to each calendar year effective 2007, if the Margin is
greater than MMR but less than or equal to (MMR + 0.05), Northwest shall receive
from Pinnacle an amount determined as follows:

                     Pnw = (Rev - [Total Operating Cost/(1 - MMR)]) / 2

                     where,

                     Pnw is the amount payable to Northwest,

                     Rev is Total Operating Revenue for Regional Airline
                     Services for the applicable calendar year excluding any
                     incentives paid to Pinnacle pursuant to SECTION 5.15, and
                     Total Operating Cost excludes items 1-10 in SECTION 5.13(A)
                     above.

                     With respect to each calendar year effective 2007, if the
Margin is greater than (MMR + 0.05), Northwest shall receive from Pinnacle an
amount determined as follows:

                     Pnw = (Rev - [Total Operating Cost/(0.975 - MMR)])

                     where,

                     Pnw is the amount payable to Northwest,

                     Rev is Total Operating Revenue for Regional Airline
                     Services for the applicable calendar year excluding any
                     incentives paid to Pinnacle pursuant to SECTION 5.15, and
                     Total Operating Cost excludes items 1-10 in SECTION 5.13(A)
                     above.

                                       39
<Page>

       An amount payable pursuant to this SECTION 5.13(B) is a "Margin
Adjustment Payment." Northwest shall add in or setoff, as appropriate, any
Margin Adjustment Payment in the next wire transfer due to Pinnacle .

       (b) AUDIT OF TOTAL OPERATING COST AND THE MARGIN. Northwest shall have
the right to audit the calculation of the Total Operating Cost, the Margin and
the Margin Adjustment Payment, and shall report any disputes to Pinnacle. Any
dispute not reported to Pinnacle in writing within ninety (90) days of the
receipt of the audited financial statements and Margin calculation by Northwest
shall be deemed waived. The payment in respect of any dispute shall be handled
as a disputed amount in accordance with SECTION 5.08.

       SECTION 5.14 NON-SCHEDULED FLIGHT REFUND

       . With respect to each calendar year during the term of this Agreement,
Northwest shall within thirty (30) days from the receipt of the final Block Hour
and Cycle Report received pursuant to Section 5.02 for the immediately preceding
year, calculate and notify Pinnacle of the ratio of actual Block Hours for
Non-Scheduled Flights to actual Block Hours for Scheduled Flights and the ratio
of actual Cycles for Non-Scheduled Flights to actual Cycles for Scheduled
Flights. In the event that either ratio exceeds [****], Pinnacle shall remit to
Northwest (through a set-off of the next amount due from the SECTION 5.02 wire
transfer) an amount equal to the following:

       REFUND CALCULATION:

       Actual Block Hours and/or Cycles for Non-Scheduled Flights in excess of
       [****] of the actual Block Hours and Cycles for Scheduled Flights,
       respectively, multiplied by the Block Hour Rate, Cycle Rate and Ground
       Handling Rate, respectively, in effect for the immediately preceding year
       pursuant to Section 5.03 or 5.04 and as adjusted pursuant to Section
       5.11, plus the amount of any Margin Payments previously paid by Northwest
       to Pinnacle in connection with such excess Block Hours and/or Cycles;
       provided, however, that no refund will be paid to Northwest with respect
       to Non-Scheduled Flights which are Aircraft delivery flights.

       SECTION 5.16 INCENTIVES AND PENALTIES.

       (a) Pinnacle shall be subject to certain performance incentives and
penalties as described in this SECTION 5.15(A) ("Performance Criteria") which
shall be added to or deducted from the Block Hour Payment. If Pinnacle exceeds
any operational criterion an incentive payment shall be made by Northwest. If
Pinnacle does not achieve the performance criterion, then a penalty shall be
charged against amounts owing to Pinnacle. Any incentive payment or penalty
charge incurred by meeting or failing to meet Performance Criteria shall be made
in the wire transfer due on the 30th day of the second month following the end
of the Performance Period in question pursuant to SECTION 5.02(B). The
applicable performance incentives and penalties are as follows:

       (i) Completion Factor (calculated in accordance with SECTION 2.10 (A)):

                                       40
<Page>

<Table>
<Caption>
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------
                                   Additional                                                                       Additional
                                     Penalty           Penalty             Neutral               Incentive           Incentive
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------
<S>                             <C>                <C>              <C>                     <C>                  <C>

Performance Level                    [****]            [****]               [****]                [****]              [****]
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------
Penalty/Incentive per enplaned       [****]            [****]               [****]                [****]              [****]
revenue passenger
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------

       (ii) On-Time Factors (calculated in accordance with SECTION 2.10(B)):

       Departure [****]

------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------
                                   Additional          Penalty             Neutral               Incentive          Additional
                                     Penalty                                                                         Incentive
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------
Performance Level                    [****]            [****]               [****]                [****]              [****]
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------
Penalty/Incentive per enplaned       [****]            [****]               [****]                [****]              [****]
revenue passenger
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------

       Arrival [****]

------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------
                                   Additional          Penalty             Neutral               Incentive          Additional
                                     Penalty                                                                         Incentive
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------
Performance Level                    [****]            [****]               [****]                [****]              [****]
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------
Penalty/Incentive per enplaned       [****]            [****]               [****]                [****]              [****]
revenue passenger
------------------------------- ------------------ ---------------- ----------------------- -------------------- ------------------

       (iii) Luggage Mishandled (calculated in accordance with SECTION 2.10(C)):

----------------------------------- ------------------- ------------------- --------------- -------------------- ------------------
                                    Additional Penalty       Penalty           Neutral           Incentive          Additional
                                                                                                                     Incentive
----------------------------------- ------------------- ------------------- --------------- -------------------- ------------------
Performance Level (incidents per          [****]              [****]            [****]            [****]              [****]
1,000 enplaned revenues passengers)
----------------------------------- ------------------- ------------------- --------------- -------------------- ------------------
Penalty/Incentive per enplaned            [****]              [****]            [****]            [****]              [****]
revenue passenger
----------------------------------- ------------------- ------------------- --------------- -------------------- ------------------

                                       41
<Page>

       (iv) Customer complaints (calculated in accordance with SECTION 2.10(D)):

----------------------------------- ------------------- ----------------- ----------------- -------------------- ------------------
                                    Additional Penalty      Penalty           Neutral            Incentive          Additional
                                                                                                                     Incentive
----------------------------------- ------------------- ----------------- ----------------- -------------------- ------------------
Performance Level (incidents per          [****]             [****]            [****]             [****]              [****]
1,000 enplaned revenue passengers)
----------------------------------- ------------------- ----------------- ----------------- -------------------- ------------------
Penalty/Incentive per enplaned            [****]             [****]            [****]             [****]              [****]
revenue passenger
----------------------------------- ------------------- ----------------- ----------------- -------------------- ------------------
</Table>

The parties will review the penalty and incentive levels for customer complaints
after the first year this Agreement is in effect and make such adjustments as
are mutually agreed.

       (b) RECONCILIATION OF PERFORMANCE STANDARDS. For each Performance Period,
(i) Northwest shall determine the total number of enplaned revenue passengers on
Scheduled Flights operated by Pinnacle, (ii) Pinnacle shall prepare a
reconciliation of its actual performance to the targeted performance with
respect to its completion factor and its on-time factor and (iii) Northwest
shall prepare a reconciliation of Pinnacle's actual performance to targeted
performance with respect to Pinnacle's incidences of mishandled luggage and its
number of customer complaints. Such reconciliations will be completed and
delivered to the other within thirty (30) days after the end of each Performance
Period. Northwest and Pinnacle will have the right to audit the reconciliation
prepared by the other and shall report any discrepancies to the other. Any
discrepancy not reported in writing within sixty (60) days of the end of any
Performance Period shall be deemed waived. The payment of in respect of any
discrepancy shall be handled as a disputed amount in accordance with SECTION
5.08.

       (c) ADDITIONAL PERFORMANCE CRITERIA. During the term of this Agreement,
Northwest may propose other performance criteria for Pinnacle's operations
pursuant to this Agreement. The parties agree that they will meet upon the
introduction of additional performance goals for Northwest's operations, to
develop similar performance targets for Pinnacle, taking into account the
differences in operations between the two companies, and shall use their best
commercially reasonable efforts to develop a system of incentives and penalties
for Pinnacle's performance with respect thereto in a manner consistent with the
performance standards agreed to herein.

       SECTION 5.17 PINNACLE CHANGE OF CONTROL. In the event a Pinnacle Change
of Control shall have occurred, SECTIONS 5.09, 5.10, 5.12 and 5.13 shall be
terminated effective immediately.

       SECTION 5.18 CREDIT CARD CHARGEBACKS.

       (a) Pinnacle shall be billed for credit card chargebacks resulting from
Pinnacle's noncompliance with Northwest's credit card acceptance procedures.
Northwest shall apply the same card acceptance procedures and standards to
Pinnacle as applied to Northwest by

                                       42
<Page>

Northwest's credit card contractors. Northwest will inform Pinnacle in writing
regarding any material changes in Northwest's agreements with its credit card
contractors to the extent such changes will impact the procedures and standards
to be applied by Pinnacle.

       (b) With respect to all credit card charge forms returned to Pinnacle by
Northwest, Northwest will furnish Pinnacle with a complete written explanation
of the reason therefor accompanied by relevant documentation received from the
credit card issuer or credit card holder.

       (c) Upon receipt of a chargeback, Pinnacle shall have a reasonable period
of time, but not to exceed 30 days, to review the validity of the chargeback
notice. If the chargeback is valid (within the scope of the circumstances for
the chargeback), Pinnacle shall remit to Northwest within 30 days a gross amount
equal to such credit card charge form. If, in Pinnacle's good faith opinion, the
chargeback is not valid, Pinnacle will so notify Northwest and provide Northwest
with a complete written explanation of the transaction together with any
necessary supporting documentation within the 30-day period.

       (d) All revisions to Northwest's credit card acceptance procedures must
be in writing and must be submitted to Pinnacle at least 30 days in advance of
the effective date of such procedures or such shorter notification period as
Northwest may utilize in notifying its own personnel.

       SECTION 5.19 RETURNED CHECKS.

       (a) Pinnacle shall be billed pursuant to SECTION 5.08 above for all
returned checks resulting from Pinnacle's non-compliance with Northwest's check
acceptance procedures.

       (b) Northwest will furnish Pinnacle with a complete written explanation
of the reason, therefore, accompanied with the relevant documentation.

       (c) Pinnacle shall refund Northwest the full amount of the dishonored
check within 30 days. If, in Pinnacle's reasonable opinion, the charge is not
valid, Pinnacle will so notify Northwest and provide Northwest with a complete
written explanation of the transaction together with any necessary supporting
documentation within the 30-day period.

       (d) All revisions to Northwest's check acceptance procedures will be in
writing and will be submitted to Pinnacle at least 30 days in advance of the
effective date of such procedures or such shorter notification period as
Northwest may utilize in notifying its own personnel.

       SECTION 5.20 MOST FAVORED NATIONS. If an Pinnacle Affected Company enters
into an agreement with a Major Carrier to provide regional airline services on a
capacity purchase or other similar economic basis on terms and conditions that
are in the aggregate less favorable to the Pinnacle Affected Company than the
terms and conditions of this Agreement are to Pinnacle, Northwest and Pinnacle
will amend this Agreement (effective as of the date of the

                                       43
<Page>

agreement with the Major Carrier) to conform the terms and conditions of this
Agreement to the terms and conditions of the agreement with the Major Carrier.

                                   ARTICLE VI

                             REPORTING OBLIGATIONS,
               AUDITING, INSPECTIONS AND CONFIDENTIALITY/PUBLICITY

       SECTION 6.01 REPORTING OBLIGATIONS.

       (a) Certain Notices to Northwest. Pinnacle shall give prompt written
notice to Northwest of (i) any litigation involving an uninsured claim of more
than $1,000,000 against Pinnacle, (ii) any proceeding before any governmental
agency which, if adversely determined, would materially and adversely affect
Pinnacle's financial condition, affairs, operations or prospects, (iii) any
other matter which would materially and adversely affect the financial
condition, affairs, operations or prospects of Pinnacle or its ability to
perform its obligations under this Agreement, and (iv) any proposed
extraordinary capital expenditures and all capital expenditures in excess of
$250,000. Pinnacle shall also report to Northwest not later than the last day of
each month its completion factor and on-time factor for the prior month.

       (b) Financial and Reporting Covenants. Pinnacle Corp., Pinnacle and all
Affiliates of Pinnacle Corp. shall provide to Northwest promptly following the
filing or providing thereof copies of all financial statements, reports, notices
and proxy statements filed with or provided to the Securities and Exchange
Commission or the United States Department of Transportation. Pinnacle Corp. and
Pinnacle shall also promptly provide to Northwest notice of and adequate
information regarding any material weaknesses or reportable conditions noted in
any management letters received by either Company from its independent auditors
and the company's responses thereto. Pinnacle Corp., Pinnacle and all Affiliates
of Pinnacle Corp. shall also provide Northwest with monthly financial
statements, annual expense budgets and periodic business plans and related
projections.

       (c) Certain Notices to Pinnacle. Northwest shall report to Pinnacle not
later than the last day of each month the number of incidences of mishandled
luggage and the number of customer complaints for the previous month related to
the Regional Airline Services provided hereunder. Upon the reasonable prior
written request by Pinnacle, Northwest shall make available its books and
records related to incidences of mishandled luggage and customer complaints in
connection with the Regional Airline Services provided hereunder.

       SECTION 6.02 AUDITS.

       (a) Compliance Audits. Upon the reasonable prior written request by
Northwest, Pinnacle Corp. and Pinnacle shall make available their respective
books and the books of all of their Subsidiaries and Affiliates, including but
not limited to general ledger backup (monthly) for financial statements and
records for operations with respect to this Agreement for inspection by
Northwest. Northwest shall also be entitled to make copies and notes of such
information as it deems necessary and to discuss such records and the finances
and

                                       44
<Page>

accounts of Pinnacle Corp. and Pinnacle with each Company's Chief Financial
Officer or other employee or agent of Pinnacle Corp. or Pinnacle knowledgeable
about such records.

       (b) Inventory Audits. At Northwest's request, during the term of this
Agreement Pinnacle and Northwest shall conduct an annual inventory audit of all
spare parts, tooling and ground support equipment owned by Northwest and leased
to Pinnacle or owned by Northwest and supplied to Pinnacle. Such audit shall not
be requested more than one time per calendar year. In conducting such audit, the
parties shall tabulate the quantity and type of all spare parts and ground
support equipment including recognition of spare parts and ground support
equipment which were scrapped in the preceding year(s). Such audit, when
completed and agreed to by both parties, shall be final.

       SECTION 6.03 INSPECTIONS. Northwest shall be entitled to conduct on-site
observations of Pinnacle's in-flight service, flight, maintenance, technical
operations, gate-check in service, ground operations, Aircraft cleaning and any
and all other services and operations performed under this Agreement to monitor
Pinnacle's operations in the same manner as similar functions are evaluated at
Northwest. The purpose of such inspections shall be to determine Pinnacle's
compliance with applicable Governmental Regulations, state and local laws,
equipment manufacturer's instructions and the standards established by this
Agreement. Pinnacle's operation will be evaluated according to the same standard
as Northwest taking into account the differences in size and operational
capabilities between the two airlines. Such inspections may be announced or
unannounced, but under no circumstances shall they interfere with the operation
of Pinnacle's business. Northwest shall report the findings of any such
inspection to Pinnacle in writing. Pinnacle shall provide a timely written
response detailing a plan of corrective action to remedy any deficiencies noted
in an inspection. If any deficiency comes to the attention of Pinnacle through
audits or any other means, Pinnacle shall take immediate corrective action.

       SECTION 6.04 CONFIDENTIALITY/PUBLICITY. Each of Northwest and Pinnacle
agrees that, except as otherwise required by Governmental Regulations or any
other applicable law, it shall not disclose to others and shall keep
confidential the terms of this Agreement and any confidential, non-public
information concerning the other that it obtains as a result of or pursuant to
this Agreement. Pinnacle shall not issue any press release or public
announcement relating to new Scheduled Flights, the cessation of Scheduled
Flights in any Service City, schedule changes, customer initiatives, marketing
programs or promotions, without Northwest's prior written approval of the press
release or public announcement. In any such press release or public
announcement, Pinnacle shall identify itself as a Northwest Airlink carrier.

                                  ARTICLE VII

                            NORTHWEST IDENTIFICATION

       SECTION 7.01 IDENTIFICATION LICENSE. Northwest hereby grants to Pinnacle
a non-exclusive, non-transferable, non-sublicensable license to use the NW
Identification in connection with its operation of the Regional Airline Services
as authorized hereunder.

                                       45
<Page>

       SECTION 7.02 DESIGNATOR LICENSE. Northwest hereby grants to Pinnacle a
non-exclusive, non-transferable, non-sublicensable license to use the Designator
in connection with its operation of the Scheduled Flights as authorized
hereunder.

       SECTION 7.03 NEW IDENTIFICATIONS. From time to time in its sole
discretion, Northwest may change any NW Identifications and/or Designators upon
notice to Pinnacle. After receipt of such notice, Pinnacle shall, as soon as
practicable, but no later than thirty (30) days thereafter, commence use solely
of the new NW Identifications and/or Designators and cease all use of any
superseded ones. Northwest shall reimburse Pinnacle for the reasonable
out-of-pocket expenses incurred by Pinnacle in making such changes.

       SECTION 7.04 USE OF IDENTIFICATION. Northwest shall have exclusive
control over the use and display of all NW Identifications and Designators, and
Pinnacle shall comply with all policies and guidelines of Northwest in this
regard. Pinnacle shall use the NW Identifications and Designators in good faith,
in a dignified manner and in compliance with good trademark practice. Pinnacle
shall use the NW Identifications and Designators exactly as prescribed by
Northwest, and shall not use (i) any stylization, abbreviation or variation
thereof or (ii) the NW Identifications and Designators in connection or
combination with any other Identification, in each case, without Northwest's
prior written consent, which may be withheld in its sole discretion.

       SECTION 7.05 QUALITY CONTROL. Pinnacle shall use the NW Identifications
and Designators only in connection with products and services that comply with
the high standards of quality associated with Northwest. At Northwest's request,
Pinnacle shall submit representative samples to Northwest of all uses by
Pinnacle of the NW Identifications and Designators pursuant to this Agreement,
including SECTIONS 2.02, 4.03(F), 4.07(D) and 4.09(E). Pinnacle shall receive
the prior written approval of Northwest for any new uses of the NW
Identifications and Designators, including on any advertising and promotional
materials. Once such approval is received, Pinnacle need not resubmit such
materials for approval unless they contain non-trivial modifications.

       SECTION 7.06 RESERVATION OF RIGHTS. All rights not expressly granted to
Pinnacle hereunder are expressly reserved by Northwest, including without
limitation the right to use or license others to use any NW Identifications or
Designators. Pinnacle shall not use the NW Identification or Designator except
as expressly authorized herein, and has no right to use any other Identification
of Northwest other than the specific NW Identification in the exact form
prescribed by Northwest from time to time.

       SECTION 7.07 OWNERSHIP. Pinnacle hereby acknowledges that, as between the
parties, Northwest is the sole owner of the names "Northwest" and "Northwest
Airlink," the initials "NW," and any Designators or NW Identifications related
thereto or otherwise licensed to Pinnacle hereunder. Pinnacle agrees not to
directly or indirectly question attack, contest or impugn the validity and/or
Northwest's rights in the Designators and NW Identifications, including without
limitation by attempting to register title to or any intellectual property
rights in same or by participating in any action or proceeding adverse to
Northwest in this regard. Pinnacle agrees to cooperate fully with Northwest in
all actions to enforce, police and defend

                                       46
<Page>

Northwest's rights in the Designators and NW Identifications, subject to
reimbursement for its out-of-pocket expenses.

       SECTION 7.08 TERMINATION. Should this Agreement expire or terminate for
any reason, the licenses in SECTIONS 7.01 and 7.02 shall immediately terminate
(although SECTIONS 7.07 and 7.08 shall survive), and Pinnacle shall promptly,
but in any event within ninety (90) days (one hundred twenty (120) days with
respect to any distinctive color scheme), take all such actions as may be
necessary to change its facilities, equipment, uniforms, supplies and other
materials to cease all use of any Designators and NW Identifications and to
avoid any customer confusion or the suggestion or appearance that Pinnacle
continues to have an operating relationship with Northwest.

       SECTION 7.09 BANKRUPTCY. The parties intend that the identity of Pinnacle
as the licensee hereunder is a material condition to Northwest's granting of the
licenses in 7.01 and 7.02, and that this Agreement should be construed overall
as a contract for the personal services of Pinnacle. Therefore, in the event
Pinnacle becomes subject to a bankruptcy proceeding, the parties intend that
this Agreement shall not be assumed and/or assigned by Pinnacle or its
representative without Northwest's consent.

                                  ARTICLE VIII

                                 TAXES AND FEES

       SECTION 8.01 TAXES AND FEES.

       (a) Pinnacle shall be liable for and pay the amount of any taxes (other
than Ticket Taxes and Fees which are addressed separately in Section 8.02
below), duties, license fees, assessments, and other charges, together with any
interest and penalties thereon, levied, assessed, or imposed by any federal,
foreign, state, or local taxing or airport authority related or attributable to
performance of Regional Airline Services pursuant to this Agreement.

       (b) Excluded from the coverage of SECTION 8.01(a) are any taxes based on
the net income of Northwest.

       SECTION 8.02 TICKET TAXES AND FEES.

       (a) For all sales by Pinnacle using Northwest ticket stock or air
waybills, Pinnacle shall be responsible for (1) collecting all Ticket Taxes and
Fees, and (2) remitting such Ticket Taxes and Fees to Northwest at the same time
as the revenues to which the Ticket Taxes and Fees relate are received by
Northwest. Northwest then shall be responsible for remitting such Ticket Taxes
and Fees to the appropriate governmental entities and taxing authorities.

       (a) Pinnacle shall indemnify, defend, and hold harmless Northwest and its
officers, directors, employees, agents, and its affiliates (the "NW
Indemnitees") from and against all assessments or payments for Ticket Taxes and
Fees related to all sales by Pinnacle using Northwest ticket stock or air
waybills, and any interest and/or penalties related thereto. This

                                       47
<Page>

indemnification specifically includes, but is not limited to, assessments or
payments under Sections 4261, 4263, 4271, 4291, 6662, 6672, 6861, or 7275 of the
Internal Revenue Code of 1986, as amended, and any successor provisions.
Pinnacle further agrees as part of this indemnification to reimburse the NW
Indemnitees for any reasonable out-of-pocket expenses, including attorneys' fees
and expenses, the NW Indemnitees have incurred in connection with any such
assessment or payment. The obligations of Pinnacle under this SECTION 8.02(B)
shall remain in effect and shall survive without limitation the termination of
this Agreement.

       SECTION 8.03 REFUNDS OF TAX. Pinnacle shall use its reasonable best
efforts to seek any and all applicable refunds or credits of excise, sales, use,
value-added, or similar transactional taxes paid by Pinnacle that are reimbursed
by Northwest pursuant to this Agreement. Pinnacle shall retain ten percent (10%)
of the amount of any such refund, credit or other benefit (inclusive of
interest) it receives, and the remaining ninety percent (90%) (inclusive of
interest) shall be paid to Northwest within ten (10) days of its receipt or
recognition of benefit by Pinnacle.

                                   ARTICLE IX

                    LIABILITY, INDEMNIFICATION AND INSURANCE

       SECTION 9.01 INDEPENDENT CONTRACTOR.

       (a) Except for the limited purpose described in SECTION 5.01 hereof,
Pinnacle shall act as an independent contractor. The employees, agents and/or
independent contractors of Pinnacle engaged in performing any of the services
Pinnacle is obligated to perform pursuant to this Agreement shall be employees,
agents and independent contractors of Pinnacle for all purposes and under no
circumstances shall employees, agents or independent contractors of Pinnacle be
deemed to be employees, agents or independent contractors of Northwest. Except
for the limited purpose described in SECTION 5.01 hereof, in its performance of
obligations under this Agreement, Pinnacle shall act, for all purposes, as an
independent contractor and not as an agent for Northwest. Northwest shall have
no supervisory power or control over any employees, agents or independent
contractors engaged by Pinnacle in connection with Pinnacle's performance of its
obligations hereunder, and all complaints or requested changes in procedure
shall, in all events, be transmitted by Northwest to a designated representative
of Pinnacle. Nothing contained in this Agreement is intended to limit or
condition Pinnacle's control over its operation or the conduct of its business
as an air carrier, and Pinnacle assumes all risks of financial losses which may
result from the operation of the air services to be provided by Pinnacle
hereunder.

       (b) Northwest shall act as an independent contractor. The employees,
agents and/or independent contractors of Northwest engaged in performing any of
the services Northwest is to perform pursuant to this Agreement shall be
employees, agents and independent contractors of Northwest for all purposes and
under no circumstances shall employees, agents and independent contractors of
Northwest be deemed to be employees, agents or independent contractors of
Pinnacle. In performing its obligations under this Agreement, Northwest shall
act, for all purposes, as an independent contractor and not as an agent for
Pinnacle. Pinnacle shall

                                       48
<Page>

have no supervisory power or control over any employees, agents or independent
contractors engaged by Northwest in connection with the performance of its
obligations hereunder, and all complaints or requested changes in procedure
shall, in all events, be transmitted by Pinnacle to a designated representative
of Northwest. Nothing contained in this Agreement is intended to limit or
condition Northwest's control over its operation or the conduct of its business
as an air carrier.

       SECTION 9.02 INDEMNIFICATION.

       (a) Each party assumes full responsibility for any and all liability to
its own officers, employees or agents on account of injury or death resulting
from or sustained in the performance of their respective services under this
Agreement. Each party shall indemnify, defend, protect, save and hold harmless
the other party, its officers, employees, and agents from and against any and
all liabilities, claims, demands, suits, judgments, damages and losses
(including the costs, fees and expenses in connection therewith and incident
thereto) brought against the other party, its officers, employees or agents by
or on behalf of any other person, by reason of damage to or destruction of
property of any such person, or injury to or death of such person, caused by or
arising out of any act or omission by the indemnifying party occurring while
this Agreement is in effect. Notwithstanding the foregoing, neither party shall
be liable for indemnifying the other for claims of third parties if caused by
the gross negligence or willful misconduct of the other. Each party shall give
the other party prompt and timely notice if it has actual knowledge of any claim
made or suit instituted against the other party which in any way results in
indemnification hereunder, and the other party shall have the right to
compromise or participate in the defense of such claim or suit to the extent of
its own interest.

       (b) Northwest shall indemnify Pinnacle against any physical loss of or
damage to the Aircraft caused by Northwest's negligent operation of ground
support equipment or other acts or omissions of Northwest in performing Ground
Handling Functions pursuant to SECTION 4.02 above; provided, however, that
Northwest's liability shall be limited to any such loss or damage to the
Aircraft not exceeding the amount of the deductible with respect to such
Aircraft under Pinnacle's hull risk insurance policy, except that loss or damage
in respect of any incident below $3,000 shall not be indemnified. For the
avoidance of doubt, Northwest shall not be liable to Pinnacle for any
consequential loss or damage arising from physical loss of or damage to the
Aircraft, and Pinnacle shall not make any claim against Northwest and shall
indemnify it against any liability in respect of any and all such consequential
loss or damage howsoever arising.

       (c) The obligations of Pinnacle and Northwest under the indemnity and
insurance provisions contained herein shall remain in effect and shall survive
without limitation the termination of this Agreement with respect to any
occurrence or claims arising during the term of or in connection with this
Agreement.

       SECTION 9.03 INSURANCE.

       (a) Pinnacle agrees, at its sole expense, to maintain in full force and
effect the following insurance coverage with respect to Regional Airline
Services:

                                       49
<Page>

              (1) Workers' compensation and occupational disease insurance,
       subject to the laws of the states wherein this Agreement is being
       performed. Such coverage shall include employers liability insurance with
       a minimum limit of $1,000,000 per incident.

              (2) Comprehensive aviation bodily injury and property damage
       liability insurance with limits of not less than $1 billion combined
       single limit per occurrence (or such other minimum amount as may be
       reasonably requested by Northwest from time to time in the event Pinnacle
       no longer obtains airline liability insurance coverage as part of the
       Northwest's aviation insurance placement), including, but not limited to,
       aircraft liability, passenger legal liability, premises and property
       damage liability, hangar keepers liability and baggage and cargo
       liability. Such insurance shall include personal injury and contractual
       liability, and shall also include war risk and allied perils, hijack and
       confiscation coverage with a limit of not less than $1 billion per
       incident.

              (3) All risk hull insurance on the Aircraft, including hull war
       risk coverage as required by Northwest.

       (b) Prior to the commencement of Regional Airline Services under this
Agreement and at least annually thereafter, certificates of insurance in a form
satisfactory to Northwest shall be delivered to Northwest evidencing compliance
with the insurance terms of this Agreement. All of the above policies shall have
deductible amounts as established by Northwest, and, in any event, all of the
above insurance shall be written through an insurance company or companies
reasonably satisfactory to Northwest, and the certificates of insurance shall be
of a type that unconditionally obligates the insurer to notify Northwest in
writing at least thirty (30) days (or such lesser period as may be available for
war peril coverage) in advance of the effective date in the event of any
material change in or cancellation of such insurance. The policies of insurance
required by paragraphs (2) and (3) of SECTION 9.03(A) shall provide coverage for
events which occur during the policy period, are continuing in nature and not on
a claims made basis, and shall include endorsements that provide:

              (1) That the Underwriters acknowledge that the indemnification and
       hold harmless provisions of this Agreement are insured under Pinnacle's
       blanket contractual liability coverage.

              (2) That Northwest, its officers, agents and employees are named
       as additional insureds thereunder.

              (3) That the insurance is primary with respect to the matters
       within such coverage, irrespective of any insurance carried by Northwest.

              (4) That with respect to the interest of Northwest, the insurance
       shall not be invalidated by any breach of warranty by Pinnacle.

              (5) That provide a severability of interest/cross liability
       endorsement.

              (6) That the insurer shall waive its subrogation rights against
       Northwest, its officers, agents and employees.

                                       50
<Page>

              (7) That any waiver of rights of subrogation against other parties
       by Pinnacle will not affect the coverage provided with respect to
       Northwest.

       The parties acknowledge and agree that endorsements (2) through (7) above
are only applicable in the event Pinnacle obtains liability insurance coverage
that is not part of Northwest's aviation insurance placement.

       (c) In the event the U.S. Government reimburses Pinnacle or its
Affiliates for excess insurance costs incurred as a result of the September 11,
2001 terrorist attacks or other such occurrences, Pinnacle will promptly remit
such reimbursement, including the applicable Margin Payment, if any, to
Northwest in immediately available funds.

                                   ARTICLE X

                              TERM AND TERMINATION

       SECTION 10.01 TERM. This Agreement shall commence on and shall be
effective as of March 1, 2002 (the "Effective Date") and, unless earlier
terminated as provided herein, shall continue in effect until February 29, 2012
and shall thereafter automatically be extended for successive five (5) year
renewal periods (each a "Renewal Term") unless (i) Northwest gives not less than
two years' advance notice of non-renewal prior to February 29, 2012 or the
commencement of any Renewal Term, in which case the Agreement will terminate on
February 29, 2012 or the last day of the then applicable Renewal Term, as the
case may be.

       SECTION 10.02 TERMINATION BY EITHER PARTY.

       (a) In the event that Pinnacle Corp., Pinnacle or Northwest (i) makes a
general assignment for the benefit of creditors or becomes insolvent, (ii) files
a voluntary petition in bankruptcy, (iii) petitions for or acquiesces in the
appointment of any receiver, trustee or similar officer to liquidate or conserve
its business or any substantial part of its assets, (iv) commences under the
laws of any competent jurisdiction any proceeding involving its insolvency,
bankruptcy, reorganization, readjustment of debt, dissolution, liquidation or
any other similar proceeding for the relief of financially distressed debtors,
(v) becomes the object of any proceeding or action of the type described in
(iii) or (iv) above and such proceeding or action remains undismissed or
unstayed for a period of at least thirty (30) days, or (vi) is divested of a
substantial part of its assets for a period of at least thirty (30) days, then
any of the other parties may by written notice terminate this Agreement
immediately.

       (b) Except as otherwise provided in SECTION 10.03, in the event of a
breach of a nonmonetary provision of this Agreement by either party remaining
uncured for more than thirty (30) days after receipt of written notification of
such default by the nondefaulting party, or in the case of a breach requiring
more than thirty (30) days notice to cure, the defaulting party does not begin
and pursue with due diligence a method of cure within thirty (30) days after
receipt of written notification specifying in reasonable detail the nature of
such default from the nondefaulting party, then the nondefaulting party may
terminate this Agreement at its sole option.

                                       51
<Page>

       (c) In the event of a breach of a monetary provision of this Agreement by
either party and such default remaining uncured for more than thirty (30) days
after receipt of written notification specifying in reasonable detail the nature
of such default from the nondefaulting party, then the nondefaulting party may
terminate this Agreement at its sole option.

       SECTION 10.03 TERMINATION BY NORTHWEST. Notwithstanding the provisions of
SECTION 10.02(B), Northwest shall have the right to terminate this Agreement
immediately and at its sole option if:

       (a) Pinnacle shall default in the payment of any amount due under any
Lease and such default shall continue for more than the period of grace, if any,
specified therein and shall not have been waived.

       (b) Pinnacle shall default with respect to any other terms of any Lease,
such default shall continue for more than the period of grace, if any, specified
therein and shall not have been waived.

       (c) Pinnacle shall fail to comply with the provisions of SECTION 9.03
and, as a result thereof, the insurance required thereunder is not in effect.

       (d) Pinnacle shall fail to comply with the provisions of SECTION 6.03.

       (e) More than fifty percent (50%) of the Aircraft do not operate any
Scheduled Flights for more than seven (7) consecutive days or twenty-five
percent (25%) of the Aircraft do not operate any Scheduled Flights for more than
twenty-one (21) consecutive days, other than as a result of (1) an FAA order
which grounds all commercial flights of all air carriers or grounds a specific
Aircraft type of all air carriers, (2) a scheduling action by Northwest, or (3)
Northwest's inability to perform its obligations under this Agreement as a
result of a strike by Northwest employees.

       (f) Pinnacle's FAA or DOT Certification is for any reason suspended or
revoked or otherwise not in full force and effect so as to permit Pinnacle to
perform the Regional Airline Services required under this Agreement.

       (g) A Pinnacle Change of Control shall have occurred.

       (h) Pinnacle or a Pinnacle Affected Company shall commence operating an
aircraft type which causes Northwest to be in violation of its collective
bargaining agreement with its pilots or a Pinnacle Affected Company operates an
aircraft with more seats than the greater of (i) forty-four (44) seats, and (ii)
the highest number of seats that a jet aircraft may have and still have one less
seat than an aircraft defined as a "regional jet" under Northwest's collective
bargaining agreement with its pilots.

       (i) The person elected to replace Philip H. Trenary as Chief Executive
Officer of Pinnacle and Pinnacle Corp. and any successor Chief Executive Officer
of Pinnacle and Pinnacle Corp. shall not be reasonably acceptable to Northwest.

                                       52
<Page>

       (j) Pinnacle shall default in the payment of any amount due under the
Note and such default shall continue for more than the period of grace, if any,
specified therein and shall not have been waived.

       (k) Pinnacle shall default with respect to the material terms of any
other agreement between Pinnacle and Northwest, and such default shall continue
for more than the period of grace, if any, specified therein and shall not have
been waived.

                                   ARTICLE XI

                                  MISCELLANEOUS

       SECTION 11.01 LIMITATION ON PERFORMANCE. The obligation of either
Northwest or Pinnacle to perform under the terms of this Agreement shall be
limited or modified by, and neither carrier shall be deemed to be in default
hereunder as a result of any of the following causes:

       (a) Acts of God or the public enemy, civil war, insurrections or riots;
fires, floods, explosions, embargoes, earthquakes or serious accidents,
epidemics, or quarantine restrictions; any act of government, governmental
priorities, allocations, orders or Governmental Regulations affecting materials
or facilities, inability after due and timely diligence to procure materials,
accessories, equipment or parts; or due to any other cause to the extent it is
beyond that carrier's practical control or not occasioned by that carrier's
fault or negligence.

       (b) Cessation, slow-down or interruption of work, or any other labor
disturbance involving Northwest.

       SECTION 11.02 MUTUAL COOPERATION. Northwest and Pinnacle shall use their
reasonable best efforts to cooperate with each other in performing their
respective obligations under this Agreement.

       SECTION 11.03 REPRESENTATIONS AND WARRANTIES. Except as expressly set
forth herein, neither Northwest nor Pinnacle shall make any representations or
warranties, expressed or implied, under or in connection with this Agreement.

       SECTION 11.04 ASSIGNMENT. This Agreement may not be assigned by any party
without the prior written consent of the other parties.

       SECTION 11.05 GOVERNING LAW. This Agreement shall be governed in
accordance with the laws of the State of Minnesota, notwithstanding the choice
of law provisions thereof.

       SECTION 11.06 INTERLINE AND OTHER AGREEMENTS. Northwest agrees, to the
extent it has the right to do so, to permit Pinnacle to avail itself of all its
rights, privileges and amenities pursuant to its interline agreements and all
industry trade or other agreements between Northwest and any other air carriers.
Northwest shall take all action and execute such documents as may be necessary
to enable Pinnacle to avail itself of the maximum benefits afforded by such

                                       53
<Page>

agreements. Subject to Northwest's prior written approval, Pinnacle may enter
interline agreements with air carriers other than those air carriers covered by
the two preceding sentences.

       SECTION 11.07 NOTICES. All notices given hereunder shall be given in
writing and shall be delivered in person or deposited in the United States mail,
certified or registered mail, return receipt requested, with adequate postage
prepaid, or given by Pinnacle courier, telex, facsimile, or other expedient
written means, addressed as follows:

       If to Northwest:              Northwest Airlines, Inc.
                                     Department A6100
                                     2700 Lone Oak Parkway
                                     Eagan, Minnesota 55121
                                     Attn: Vice President - Market Planning
                                     Facsimile No: (612) 727-7113

                                     Northwest Airlines, Inc.
                                     Department A1180
                                     2700 Lone Oak Parkway
                                     Eagan, Minnesota 55121
                                     Attn: General Counsel
       With copies to:               Facsimile No: (612)726-7123

                                     Northwest Airlines, Inc.
                                     Department A6030
                                     2700 Lone Oak Parkway
                                     Eagan, MN 55121
                                     Attn: Director of Airlink Planning
                                     Facsimile No: (612) 727-7110

       If to Pinnacle:               Pinnacle Airlines, Inc.
                                     1689 Nonconnah Parkway
                                     Suit 111
                                     Attn: President
                                     Facsimile No: 901-348-4103

or to such other address as the respective parties hereto shall designate by
notice in writing to the other party. Notices shall be deemed received and given
on the date of delivery or the date of refusal of delivery as shown by the
return receipt.

       SECTION 11.08 PARTIES. Except as provided to the contrary herein, this
Agreement, and the rights and obligations created hereunder, shall be binding
upon and inure to the benefit of the respective parties hereto and their
respective successors and permitted assigns.

       SECTION 11.09 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which shall
constitute one agreement.

                                       54
<Page>

       SECTION 11.10 SEVERABILITY. If any term of this Agreement shall be
judicially determined to be illegal, invalid or unenforceable at law or in
equity, it shall be deemed to be void and of no force and effect to the extent
necessary to bring such term within the provisions of any such applicable law or
laws, and such terms as so modified and the balance of the terms of this
Agreement shall remain enforceable.

       SECTION 11.11 CAPTIONS, SECTION HEADINGS AND TABLE OF CONTENTS. Captions,
section headings and the Table of Contents used herein are for convenience only
and are not a part of this Agreement and shall not be used in construing it.

       SECTION 11.12 AVAILABILITY OF EQUITABLE REMEDIES; PROCEDURES.

       (a) In the event of a breach by either party of any provision of this
Agreement, the nonbreaching party may give notice thereof to the breaching
party, which notice shall specify in reasonable detail the nature of the breach
and shall demand that the breaching party either cure the breach or refrain from
conduct constituting the breach (herein the "conduct"), as may be applicable. If
(i) the breaching party has not cured the breach or refrained from the conduct,
as may be applicable, within ten (10) days following receipt of the notice from
the nonbreaching party, or (ii) the breaching party does not begin within ten
(10) days following receipt of the notice to pursue with reasonable diligence a
method of cure or begin to take steps toward ceasing the conduct where the
breach or conduct is such that it requires more than ten (10) days to cure or to
cease, as may be applicable, then the nonbreaching party may seek to compel
performance by the breaching party in accordance with the provisions of
paragraph (b) below. If, upon receiving a notice contemplated by this paragraph
(a), a breaching party believes that a breach has not occurred or that the
conduct specified in the notice does not constitute a breach of the provisions
of this Agreement, but the breaching party nonetheless cures the alleged breach
or refrains from the conduct within ten (10) days following receipt of such
notice, such party may thereafter proceed in accordance with the provisions of
paragraph (b) below to seek a determination of whether a breach occurred or
whether the specified conduct constituted a breach of the provisions of this
Agreement.

       (b) Because a breach of the provisions of this Agreement could not
adequately be compensated by money damages, any party shall be entitled,
following notification in accordance with the provisions of paragraph (a) above,
to an injunction restraining such breach or threatened breach and to specific
performance of any provision of this Agreement and, in either case, no bond or
other security shall be required in connection therewith, and the parties hereby
consent to the issuance of such injunction and to the ordering of specific
performance. Further, in the event any party refrains from the conduct of any
activity alleged in a notice received pursuant to paragraph (a) above to
constitute a breach of the provisions of this Agreement, such party may
thereafter proceed promptly to bring an action in the District Court, County of
Hennepin, State of Minnesota, for an expedited judicial determination as to
whether the conduct specified constitutes a breach of the provisions of this
Agreement and, upon a determination that the conduct does not constitute a
breach, such party may promptly thereafter recommence such conduct.

                                       55
<Page>

       SECTION 11.13 EXHIBITS. The Exhibits attached hereto are intended to be
an integral part of this Agreement and are incorporated into the Agreement by
reference for all purposes.

       SECTION 11.14 INTEGRATION AND ENTIRE AGREEMENT. This Agreement (including
the Exhibits) and the ancillary documents entered into in connection therewith
are intended by the parties as a complete statement of the entire agreement and
understanding of the parties with respect to the subject matter hereof and all
matters between the parties related to the subject matter herein and therein set
forth. This Agreement may only be amended or modified by a written agreement
between Pinnacle, on the one hand, and Northwest, on the other, which
specifically references this Agreement and expressly provides for such
amendment.

       SECTION 11.15 RELATIONSHIP OF PARTIES. Nothing in this Agreement shall be
interpreted or construed as establishing between the parties a partnership,
joint venture or other similar arrangement.

                                       56
<Page>

       IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date and year first above written.

PINNACLE AIRLINES, INC.                     NORTHWEST AIRLINES, INC.

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

   -----------------------------------          --------------------------------
   Title:                                       Title:

PINNACLE AIRLINES CORP.

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

   -----------------------------------
   Title:

                                       57
<Page>

                                   EXHIBIT A-1

                               AIRCRAFT LEASE FORM

     Please refer to Exhibit 10.2 to Pinnacle Corp.'s Registration Statement
                       on Form S-1 (File No. 333-83354).

<Page>

                                   EXHIBIT A-2

                                ENGINE LEASE FORM

     Please refer to Exhibit 10.3 to Pinnacle Corp.'s Registration Statement
                       on Form S-1 (File No. 333-83354).

<Page>

                                    EXHIBIT B

                            HUB CITY FACILITY CHARGES

Rental rates chargeable to Pinnacle for the sub-leased space at the Hub Cities
shall be as follows:

           MSP -- [****] per month

           DTW -- [****] per month

           MEM -- [****] per month

<Page>

                                    EXHIBIT C

                              PARITY PAY AGREEMENT

PARITY PAY AGREEMENT

The parties agree that labor costs resulting from pay rates in excess of Parity
Pay Rates for the pilot, flight attendant, customer service/reservations agent,
ramp service, and mechanic workgroups will be excluded from Total Operating Cost
when calculating the Margin pursuant to SECTION 5.10(A) and 5.13(A).

The parties agree that labor costs resulting from any significant work rule
and/or Premium changes, in lieu of above Parity Pay Rates will be excluded from
Total Operating Cost when calculating the Margin pursuant to SECTION 5.10(A) and
5.13(A).

The parties agree that labor costs resulting from benefits which are in excess
of industry parity for the pilot, flight attendant, customer
service/reservations agent, ramp service, and mechanic workgroups will be
excluded from Total Operating Cost when calculating the Margin pursuant to
SECTION 5.10(A) and 5.13(A).

The following definitions are used throughout this parity pay agreement:

       "COMPARISON AIRLINES" shall have the meaning throughout Exhibit C as the
five largest (by revenue) publicly traded U.S. domestic regional airlines
operating primarily regional jet aircraft.

       "PREMIUMS" shall mean separate line, longevity, shift, license, skill or
other premiums.

       "RAA" shall mean the Regional Airline Association, Washington, D.C.

Definitions provided in the sections below are applicable only to the section in
which such terms appear.

PILOT AND FLIGHT ATTENDANT EMPLOYEES

A.  PROCEDURES

Pinnacle's Pay Rates for the pilot and flight attendant workgroups plus hourly
impact of any Bonus Rate are compared to Parity Pay Rates.

If Pay Rates exceed Parity Pay Rates in any classification, the labor cost for
that classification will be multiplied by the overage percentage and such
product will be deducted from Total Operating Cost for purposes of calculating
the Margin.

Significant work rule and Premiums changes are evaluated on a case by case
basis.

B.  DEFINITIONS

       "PAY RATES" shall be the top of scale hourly rates of pay excluding
Premiums.

<Page>

       "BONUS RATE" shall be the average bonus payment divided by the timeframe
covered (based on 2,080 hours per year).

       "PARITY PAY RATES" shall be the simple average of the Pay Rates at the
Comparison Airlines within a classification. In the event that a comparison
airline reduces or eliminates its Premiums and simultaneously increases its
basic hourly rates, the portion of the basic hourly rate equal to the Premiums
shall be excluded in determining Parity Pay Rates.

CUSTOMER SERVICE/RESERVATIONS AGENT, RAMP SERVICE AND MECHANIC EMPLOYEES

A.  PROCEDURES

Pinnacle's actual Pay for customer service/reservations agent, ramp service, and
mechanic workgroups is compared to projected Parity Pay.

If Pay exceeds Parity Pay in any classification, the difference will be deducted
from Total Operating Cost for purposes of calculating the Margin.

Significant work rule and Premiums changes are evaluated on a case-by-case
basis.

B.  DEFINITIONS

       "PAY" is the sum of all customer service/reservation, agent, ramp service
and mechanic employees pay, including any bonus payments, within a
classification (i.e. customer service agents) and shall exclude Premiums and any
overtime premium.

       "PARITY PAY" shall be the sum of all customer service/reservation, agent,
ramp service and mechanic employees Pay re-calculated using the Parity Pay Scale
in place of actual Pay rates.

       "PARITY PAY SCALE" shall be constructed by taking the average pay rates
for Pay steps for all levels new hire to year 10 (top step) of the Comparison
Airlines as reported by the RAA.

BENEFITS - ALL EMPLOYEES

A.  PROCEDURES

Pinnacle's actual Benefits for all above employee groups are compared to the
average Benefits of the same or similar classifications of the Comparison
Airlines as reported by the RAA.

B.  DEFINITIONS

       "BENEFITS" include but are not limited to pension, 401(k), health and
dental insurance, life and disability insurance, and other post retirement
benefits. Benefits are evaluated on an individual basis (i.e. Pinnacle's pilot
pension is compared to the average pilot pension at the Comparison Airlines as
reported by the RAA).

DATA REQUIREMENTS

                                       2
<Page>

In order to assess compliance with the Parity Pay Agreement, Pinnacle agrees to
provide Northwest with data including but not limited to the following:

     -    Total labor costs by workgroup or classification (e.g. pilot)

     -    Pay scales to the extent they exist for all Pinnacle's workgroups.

     -    Pay scales for the Comparison Airlines as reported by the RAA for
          requested workgroups.

     -    Individual employees' information including workgroup, longevity or
          hire date, bonus payments received, hourly rate(s) of pay, hours paid
          at hourly rate(s) of pay, projected hours paid at each pay step (1 -
          10) if not currently paid based on a defined pay scale, for requested
          workgroups.

                                       3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00037-of-00352.parquet"}]]