Document:

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                                                                    EXHIBIT 10.1

          AMENDED AND RESTATED CREDIT AGREEMENT, dated as of June 13, 2000,
among WEIGH-TRONIX, LLC, a Delaware limited liability company ("Holdings"), SWT
FINANCE B.V., a limited liability company organized under the laws of the
Netherlands (the "Borrower"), WEIGH-TRONIX CANADA, ULC, a company incorporated
under the laws of Nova Scotia (the "Canadian Borrower"; and collectively with
the Borrower, the "Borrowers"), the several banks and other financial
institutions or entities from time to time parties to this Agreement (the
"Lenders"), LEHMAN BROTHERS INC., as sole advisor, LEHMAN BROTHERS INC. and
FLEETBOSTON ROBERTSON STEPHENS INC. , as co-arrangers and co-book managers (in
such capacity, the "Arrangers"), LEHMAN COMMERCIAL PAPER INC., as syndication
agent (in such capacity, the "Syndication Agent"), and FLEET NATIONAL BANK, as
administrative agent (in such capacity, the "Administrative Agent") and FLEET
NATIONAL BANK, as security agent pursuant to the terms of a Security Trust Deed
(with respect to the Collateral (as defined below) located in England, Scotland
and the Channel Islands), dated June 13, 2000 (the "English Security Trust
Deed"), between, among others, certain parties to this Agreement, and the terms
of a Security Trust Deed (with respect to the Collateral located in Ireland),
dated June 13, 2000 (the "Irish Security Trust Deed"), between, among others,
certain parties to this Agreement (in such capacities, the "Security Agent")

                                 W I T N E S S E T H:

          WHEREAS, the Borrower, the Canadian Borrower, certain of Holdings'
other subsidiaries, the banks parties thereto and Fleet National Bank (formerly
known as BankBoston, N.A.), as Fronting Lender and agent thereunder, are parties
to the Revolving Credit and Term Loan Agreement, dated as of May 1, 1998 (as
amended, supplemented or otherwise modified, the "Existing Credit Agreement");

          WHEREAS, Weigh-Tronix UK Limited, a limited liability company
organized under the laws of England and Wales (the "Purchaser"), is party to an
agreement, dated as of March 8, 2000 (the "Acquisition Agreement"), among
Purchaser and Marconi Corporation plc (the "Seller"), pursuant to which the
Purchaser has agreed to acquire from the Seller all of the issued and
outstanding share capital of GEC Avery International Limited ("Avery") and
Maatschappij van Berkel's Patent B.V. ("Berkel" and together with Avery, "Avery
Berkel");

          WHEREAS, in order to finance such acquisition, to refinance certain
outstanding indebtedness of Holdings and its subsidiaries and to pay fees and
expenses in connection therewith, Holdings and the Borrowers have requested that
the Existing Credit Agreement be amended and restated and the Lenders, the
Arrangers, the Syndication Agent and the Administrative Agent are willing to so
amend and restate the Existing Credit Agreement upon and subject to the terms
and conditions hereinafter set forth;

          NOW, THEREFORE, in consideration of the premises and the agreements
hereinafter set forth, the parties hereto hereby agree to amend and restate the
Existing Credit Agreement as follows:
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                            SECTION 1.  DEFINITIONS

          1.1  Defined Terms.  As used in this Agreement, the terms listed
in this Section 1.1 shall have the respective meanings set forth in this
Section 1.1.

          "Accounts Receivable":  all rights of any Guarantor, Borrower or any
     of their Subsidiaries to payment under any contract or otherwise in respect
     of goods sold, leased or otherwise marketed in the ordinary course of
     business and all rights of any Guarantor, Borrower or any of their
     Subsidiaries to payment for services rendered in the ordinary course of
     business and all sums of money or other proceeds due thereon pursuant to
     transactions with account debtors, except for that portion of the sum of
     money or other proceeds due thereon that relate to sales, use or property
     taxes in conjunction with such transactions, recorded on books of account
     in accordance with generally accepted accounting principles in the country
     of domicile of the relevant Person.

          "Acquisition":  as defined in Section 5.1.

          "Acquisition Agreement":  as defined in the recitals hereto.

          "Acquisition Documentation":  collectively, the Acquisition Agreement
     and all schedules, exhibits, annexes and amendments thereto and all side
     letters and agreements affecting the terms thereof or entered into in
     connection therewith, in each case, as amended, supplemented or otherwise
     modified from time to time.

          "Adjustment Date":  as defined in the Pricing Grid.

          "Administrative Agent":  as defined in the preamble hereto.

          "Affiliate":  as to any Person, any other Person that, directly or
     indirectly, is in control of, is controlled by, or is under common control
     with, such Person.  For purposes of this definition, "control" of a Person
     means the power, directly or indirectly, either to (a) vote 10% or more of
     the securities having ordinary voting power for the election of directors
     (or persons performing similar functions) of such Person or (b) direct or
     cause the direction of the management and policies of such Person, whether
     by contract or otherwise.

          "Agents":  the collective reference to the Syndication Agent, the
     Administrative Agent and the Security Agent, which term shall include, for
     purposes of Section 9 only, the Issuing Lender.

          "Aggregate Exposure":  with respect to any Lender at any time, an
     amount equal to (a) until the Closing Date, the aggregate amount of such
     Lender's Commitments at such time and (b) thereafter, the sum of (i) the
     aggregate then unpaid principal amount of such Lender's Term Loans and (ii)
     the amount of such Lender's Revolving Credit
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     Commitment then in effect or, if the Revolving Credit Commitments have been
     terminated, the Dollar Equivalent of the amount of such Lender's Revolving
     Extensions of Credit then outstanding.

          "Aggregate Exposure Percentage"  with respect to any Lender at any
     time, the ratio (expressed as a percentage) of such Lender's Aggregate
     Exposure at such time to the sum of the Aggregate Exposures of all Lenders
     at such time.

          "Agreement":  this Amended and Restated Credit Agreement, as amended,
     supplemented or otherwise modified from time to time.

          "Applicable Margin":  for each Type of Loan, the rate per annum set
     forth opposite such Type of Loan under the relevant column heading below:

                                                            Eurocurrency
                                          Base Rate Loans       Loans
                                          ---------------   ------------
          Revolving Credit Loans and
            Swing Line Loans                   2.25%            3.25%
          Tranche A Term Loans                 2.25%            3.25%
          Tranche B Term Loans                 2.75%            3.75%;

     provided, that on and after the first Adjustment Date, the Applicable
     Margins will be determined pursuant to the Pricing Grid; provided, further,
     that prior to the completion of two full fiscal quarters of the Borrower
     after the Closing Date, the Applicable Margins shall not be reduced below
     the highest point on the Pricing Grid.

          "Arrangers":  as defined in the preamble hereto.

          "Asset Sale":  any Disposition of Property or series of related
     Dispositions of Property (excluding any such Disposition permitted by
     clause (a), (b), (c), (d) or (e) of Section 7.5) which yields gross
     proceeds to Holdings or any of its Subsidiaries (valued at the initial
     principal amount thereof in the case of non-cash proceeds consisting of
     notes or other debt securities and valued at fair market value in the case
     of other non-cash proceeds) in excess of $100,000.

          "Assignee":  as defined in Section 10.6(c).

          "Assignor":  as defined in Section 10.6(c).

          "Available Revolving Credit Commitment":  with respect to any
     Revolving Credit Lender at any time, an amount equal to the excess, if any,
     of (a) such Lender's Revolving Credit Commitment then in effect over (b)
     the Dollar Equivalent of such Lender's Revolving Extensions of Credit then
     outstanding; provided, that in calculating any Lender's Revolving
     Extensions of Credit for the purpose of determining such Lender's
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     Available Revolving Credit Commitment pursuant to Section 2.11(a), the
     aggregate principal amount of Swing Line Loans then outstanding shall be
     deemed to be zero.

          "Base Rate":  for any day, a rate per annum (rounded upwards, if
     necessary, to the next 1/16 of 1%) equal to the greatest of (a) the rate of
     interest per annum publicly announced by the Reference Lender as its base
     rate in effect at its principal office in New York City in effect on such
     day (the "Base Reference Rate"), (b) the Base CD Rate in effect on such day
     plus 1% and (c) the Federal Funds Effective Rate in effect on such day plus
     1/2 of 1%.  For purposes hereof:  "Base CD Rate" shall mean the sum of (a)
     the product of (i) the Three-Month Secondary CD Rate and (ii) a fraction,
     the numerator of which is one and the denominator of which is one minus the
     C/D Reserve Percentage and (b) the C/D Assessment Rate; and "Three-Month
     Secondary CD Rate" shall mean, for any day, the secondary market rate for
     three-month certificates of deposit reported as being in effect on such day
     (or, if such day shall not be a Business Day, the next preceding Business
     Day) by the Board through the public information telephone line of the
     Federal Reserve Bank of New York (which rate will, under the current
     practices of the Board, be published in Federal Reserve Statistical Release
     H.15(519) during the week following such day), or, if such rate shall not
     be so reported on such day or such next preceding Business Day, the average
     of the secondary market quotations for three-month certificates of deposit
     of major money center banks in New York City received at approximately
     10:00 A.M., New York City time, on such day (or, if such day shall not be a
     Business Day, on the next preceding Business Day) by the Reference Lender
     from three New York City negotiable certificate of deposit dealers of
     recognized standing selected by it.  Any change in the Base Rate due to a
     change in the Base Reference Rate, the Base CD Rate or the Federal Funds
     Effective Rate shall be effective as of the opening of business on the
     effective day of such change in the Base Reference Rate, the Three-Month
     Secondary CD Rate or the Federal Funds Effective Rate, respectively.

          "Base Rate Loans":  Loans for which the applicable rate of interest is
     based upon the Base Rate.

          "Benefitted Lender":  as defined in Section 10.7.

          "Board":  the Board of Governors of the Federal Reserve System of the
     United States (or any successor).

          "Borrower" and "Borrowers":  as defined in the preamble hereto.

          "Borrowing Base":  at the relevant time of reference thereto, an
     amount determined by the Administrative Agent (absent manifest error) by
     reference to the most recent Borrowing Base Report delivered to the Lenders
     and the Administrative Agent pursuant to Section 6.2(f), as adjusted
     pursuant to the provisions below, which is equal to the sum in Dollars, of:

          (a)  80% of Eligible Accounts Receivable for which invoices have been
     issued and are payable; plus
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          (b) 50% of the net book value (determined on a first-in first-out
     basis at lower of cost or market) of Eligible Inventory;

     The Administrative Agent may, in its reasonable discretion, from time to
     time, upon ten (10) days' prior notice to the Borrowers, (x) reduce the
     lending formula with respect to Eligible Accounts Receivable to the extent
     that the Administrative Agent reasonably and in good faith determines that:
     (i) the dilution with respect of the Accounts Receivable for any period has
     increased in any material respect above historical levels, or (ii) the
     general creditworthiness of account debtors or other obligors of the
     Borrowers, the Guarantors or any Subsidiary has declined or (y) reduce the
     lending formula(s) with respect to Eligible Inventory to the extent that
     the Administrative Agent determines that: (i) the number of days of the
     turnover of the inventory of the Borrowers, the Guarantors or any
     Subsidiary for any period has changed in any material adverse respect, (ii)
     the liquidation value of the Eligible Inventory, or any category thereof,
     has decreased, or (iii) the nature and quality of the inventory of the
     Borrowers, the Guarantors or any Subsidiary has deteriorated in any
     material respect or the mix of such inventory has changed materially and
     adversely.  In determining whether to reduce the lending formula(s), the
     Administrative Agent may consider events, conditions, contingencies or
     risks which are also considered in determining Eligible Accounts Receivable
     or Eligible Inventory.

          "Borrowing Base Report":  a Borrowing Base Report signed by the chief
     financial officers of the Borrowers and in substantially the form of
     Exhibit H hereto.

          "Borrowing Date":  any Business Day specified by the relevant Borrower
     as a date on which such Borrower requests the relevant Lenders to make
     Loans hereunder.

          "Business Day":  (i) for all purposes other than as covered by clause
     (ii) below, a day other than a Saturday, Sunday or other day on which
     commercial banks in New York City are authorized or required by law to
     close and (ii) with respect to all notices and determinations in connection
     with, and payments of principal and interest on, Eurocurrency Loans
     denominated in Dollars or Loans denominated in any Optional Currency, any
     day which is a Business Day described in clause (i) and which is also (x) a
     day for trading by and between banks in deposits in Dollars or such
     Optional Currency in the interbank eurodollar or eurocurrency market, as
     the case may be, and (y) a day on which commercial banks in the principal
     financial center of the country of the applicable currency are located are
     not authorized or required by law to close; provided, further, that when
     used in connection with a Loan denominated in Euro, the term "Business Day"
     shall mean any day on which the Trans-European Automated Real-Time Gross
     Settlement Express Transfer System (TARGET) (or, if such clearing system
     ceases to be operative, such other clearing system (if any) determined by
     the Administrative Agent to be a suitable replacement) is open for
     settlement of payment in Euro.

          "Canadian Borrower":  as defined in the preamble hereto.
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          "Capital Expenditures":  for any period, with respect to any Person,
     the aggregate of all expenditures by such Person for the acquisition or
     leasing (pursuant to a capital lease) of fixed or capital assets or
     additions to equipment (including replacements, capitalized repairs and
     improvements during such period) which are required to be capitalized under
     GAAP on a balance sheet of such Person.

          "Capital Lease Obligations":  with respect to any Person, the
     obligations of such Person to pay rent or other amounts under any lease of
     (or other arrangement conveying the right to use) real or personal
     property, or a combination thereof, which obligations are required to be
     classified and accounted for as capital leases on a balance sheet of such
     Person under GAAP; and, for the purposes of this Agreement, the amount of
     such obligations at any time shall be the capitalized amount thereof at
     such time determined in accordance with GAAP.

          "Capital Stock":  any and all shares, interests, participations or
     other equivalents (however designated) of capital stock of a corporation,
     any and all equivalent ownership interests in a Person (other than a
     corporation) and any and all warrants, rights or options to purchase any of
     the foregoing.

          "Cash Equivalents":  (a) marketable direct obligations issued by, or
     unconditionally guaranteed by, the United States Government or issued by
     any agency thereof and backed by the full faith and credit of the United
     States, in each case maturing within one year from the date of acquisition;
     (b) certificates of deposit, time deposits, eurodollar time deposits or
     overnight bank deposits having maturities of six months or less from the
     date of acquisition issued by any Lender or by any commercial bank
     organized under the laws of the United States of America or any state
     thereof having combined capital and surplus of not less than $500,000,000;
     (c) commercial paper of an issuer rated at least A-2 by Standard & Poor's
     Ratings Services ("S&P") or P-2 by Moody's Investors Service, Inc.
     ("Moody's"), or carrying an equivalent rating by a nationally recognized
     rating agency, if both of the two named rating agencies cease publishing
     ratings of commercial paper issuers generally, and maturing within six
     months from the date of acquisition; (d) repurchase obligations of any
     Lender or of any commercial bank satisfying the requirements of clause (b)
     of this definition, having a term of not more than 30 days with respect to
     securities issued or fully guaranteed or insured by the United States
     government; (e) securities with maturities of one year or less from the
     date of acquisition issued or fully guaranteed by any state, commonwealth
     or territory of the United States, by any political subdivision or taxing
     authority of any such state, commonwealth or territory or by any foreign
     government, the securities of which state, commonwealth, territory,
     political subdivision, taxing authority or foreign government (as the case
     may be) are rated at least A by S&P or A2 by Moody's; (f) securities with
     maturities of six months or less from the date of acquisition backed by
     standby letters of credit issued by any Lender or any commercial bank
     satisfying the requirements of clause (b) of this definition; and (g)
     shares of money market mutual or similar funds which invest exclusively in
     assets satisfying the requirements of clauses (a) through (f) of this
     definition.
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          "C/D Assessment Rate":  for any day, the annual assessment rate in
     effect on such day that is payable by a member of the Bank Insurance Fund
     maintained by the Federal Deposit Insurance Corporation (the "FDIC")
     classified as well-capitalized and within supervisory subgroup "B" (or a
     comparable successor assessment risk classification) within the meaning of
     12 C.F.R. (S) 327.4 (or any successor provision) to the FDIC (or any
     successor) for the FDIC's (or such successor's) insuring time deposits at
     offices of such institution in the United States.

          "C/D Reserve Percentage":  for any day, that percentage (expressed as
     a decimal) which is in effect on such day, as prescribed by the Board, for
     determining the maximum reserve requirement for a Depositary Institution
     (as defined in Regulation D of the Board as in effect from time to time) in
     respect of new non-personal time deposits in Dollars having a maturity of
     30 days or more.

          "Closing Date":  the date on which the conditions precedent set forth
     in Section 5.1 shall have been satisfied, which date shall be not later
     than June 30, 2000.

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

          "Collateral":  all Property of the Loan Parties, now owned or
     hereafter acquired, upon which a Lien is purported to be created by any
     Security Document.

          "Commitment":  with respect to any Lender, each of the Tranche A Term
     Loan Commitment, the Tranche B Term Loan Commitment and the Revolving
     Credit Commitment of such Lender.

          "Commitment Fee Rate":   1/2 of 1% per annum; provided, that on and
     after the first Adjustment Date occurring after the completion of two full
     fiscal quarters of the Borrower after the Closing Date, the Commitment Fee
     Rate will be determined pursuant to the Pricing Grid.

          "Commonly Controlled Entity":  an entity, whether or not incorporated,
     that is under common control with Holdings within the meaning of Section
     4001 of ERISA or is part of a group that includes Holdings and that is
     treated as a single employer under Section 414 of the Code.

          "Compliance Certificate":  a certificate duly executed by a
     Responsible Officer substantially in the form of Exhibit B.

          "Confidential Information Memorandum":  the Confidential Information
     Memorandum dated April 2000 and furnished to the initial Lenders in
     connection with the syndication of the Facilities.

          "Consolidated Current Assets":  at any date, all amounts (other than
     cash and Cash Equivalents) that would, in conformity with GAAP, be set
     forth opposite the
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     caption "total current assets" (or any like caption) on a consolidated
     balance sheet of Holdings and its Subsidiaries at such date.

          "Consolidated Current Liabilities":  at any date, all amounts that
     would, in conformity with GAAP, be set forth opposite the caption "total
     current liabilities" (or any like caption) on a consolidated balance sheet
     of Holdings and its Subsidiaries at such date, but excluding (a) the
     current portion of any Funded Debt of Holdings and its Subsidiaries and
     (b), without duplication, all Indebtedness consisting of Revolving Credit
     Loans or Swing Line Loans, to the extent otherwise included therein.

          "Consolidated EBITDA":  of any Person for any period, Consolidated Net
     Income of such Person and its Subsidiaries for such period plus, without
     duplication and to the extent reflected as a charge in the statement of
     such Consolidated Net Income for such period, the sum of (a) income tax
     expense, (b) Consolidated Interest Expense of such Person and its
     Subsidiaries, amortization or writeoff of debt discount and debt issuance
     costs and commissions, discounts and other fees and charges associated with
     Indebtedness, (c) depreciation and amortization expense, (d) amortization
     of intangibles (including, but not limited to, goodwill) and organization
     costs, (e) any extraordinary, unusual or non-recurring expenses or losses
     (including, whether or not otherwise includable as a separate item in the
     statement of such Consolidated Net Income for such period, losses on sales
     of assets outside of the ordinary course of business) and (f) any other
     non-cash charges, and minus, to the extent included in the statement of
     such Consolidated Net Income for such period, the sum of (a) interest
     income (except to the extent deducted in determining Consolidated Interest
     Expense), (b) any extraordinary, unusual or non-recurring income or gains
     (including, whether or not otherwise includable as a separate item in the
     statement of such Consolidated Net Income for such period, gains on the
     sales of assets outside of the ordinary course of business) and (c) any
     other non-cash income, all as determined on a consolidated basis; provided
     that for purposes of calculating Consolidated EBITDA of Holdings and its
     Subsidiaries for any period, (i) the Consolidated EBITDA of any Person
     acquired by Holdings or its Subsidiaries during such period shall be
     included on a pro forma basis for such period (assuming the consummation of
     such acquisition and the incurrence or assumption of any Indebtedness in
     connection therewith occurred on the first day of such period and assuming
     adequately documented reductions in management compensation, rental
     expenses and, with the prior written approval of the Agents (which approval
     shall not be unreasonably withheld), other reasonable cost savings,
     expenses and other income statement or operating statement adjustments
     which are attributable to the change in ownership and/or management
     resulting from such acquisition shall be deemed to have been realized on
     the first day of such period) if the consolidated balance sheet of such
     acquired Person and its consolidated Subsidiaries as at the end of the
     period preceding the acquisition of such Person and the related
     consolidated statements of income and stockholders' equity and of cash
     flows for the period in respect of which Consolidated EBITDA is to be
     calculated (x) have been previously provided to the Administrative Agent
     and the Lenders and (y) either (1) have been reported on without a
     qualification arising out of the scope of the audit by independent
     certified public accountants of nationally recognized standing or (2) have
     been found acceptable by the Administrative Agent and (ii) the Consolidated
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     EBITDA of any Person Disposed of by Holdings or its Subsidiaries during
     such period shall be excluded for such period (assuming the consummation of
     such Disposition and the repayment of any Indebtedness in connection
     therewith occurred on the first day of such period); provided, further,
     that for purposes of computing the Consolidated Leverage Ratio,
     Consolidated Fixed Charge Coverage Ratio and Consolidate Interest Coverage
     Ratio as at September 30, 2000, December 31, 2000, March 31, 2001, June 30,
     2001, September 30, 2001, December 31, 2001, March 31, 2002 and June 30,
     2002, there shall be added to Consolidated EBITDA $8,000,000, $8,000,000,
     $8,000,000, $7,000,000, $6,000,000, $4,000,000, $2,000,000 and $1,000,000,
     respectively.

          "Consolidated Fixed Charge Coverage Ratio":  for any period, the ratio
     of (a) Consolidated EBITDA of Holdings and its Subsidiaries for such period
     minus the aggregate amount actually paid by Holdings and its Subsidiaries
     in cash during such period on account of Capital Expenditures minus the
     aggregate amount of taxes paid in cash during such period to (b)
     Consolidated Fixed Charges for such period.

          "Consolidated Fixed Charges":  for any period, the sum (without
     duplication) of (a) Consolidated Interest Expense of Holdings and its
     Subsidiaries for such period and (b) scheduled payments made during such
     period on account of principal of Indebtedness of Holdings or any of its
     Subsidiaries (including scheduled principal payments in respect of the Term
     Loans), minus non-cash interest expense and amortization in such period or
     write-off of fees and expenses in such period relating to financing
     activities.

          "Consolidated Interest Coverage Ratio":  for any period, the ratio of
     (a) Consolidated EBITDA of Holdings and its Subsidiaries for such period to
     (b) Consolidated Interest Expense of Holdings and its Subsidiaries for such
     period.

          "Consolidated Interest Expense":  of any Person for any period, total
     interest expense (including that attributable to Capital Lease Obligations)
     of such Person and its Subsidiaries for such period with respect to all
     outstanding Indebtedness of such Person and its Subsidiaries (including,
     without limitation, all commissions, discounts and other fees and charges
     owed by such Person with respect to letters of credit and bankers'
     acceptance financing and net costs of such Person under Hedge Agreements in
     respect of interest rates to the extent such net costs are allocable to
     such period in accordance with GAAP) and including commitment fees, agency
     fees, facility fees, balance deficiency fees and similar fees or expenses
     in connection with the borrowing of money, plus, in any event, any cash
     dividends paid during such period with respect to the PIK Preferred Stock.

          "Consolidated Leverage Ratio":  as at the last day of any period of
     four consecutive fiscal quarters of Holdings, the ratio of (c) Consolidated
     Total Debt on such day to (d) Consolidated EBITDA of Holdings and its
     Subsidiaries for such period.

          "Consolidated Leverage Ratio Stepdown Date":  the first date on which
     the aggregate Purchase Prices of the type referred to in Section
     7.8(j)(iii) expended and/or
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     incurred in any fiscal year exceeds $10,000,000 in reliance on the proviso
     contained in Section 7.8(j).

          "Consolidated Net Income":  of any Person for any period, the
     consolidated net income (or loss) of such Person and its Subsidiaries for
     such period, determined on a consolidated basis in accordance with GAAP;
     provided, that in calculating Consolidated Net Income of Holdings and its
     consolidated Subsidiaries for any period, there shall be excluded (a) the
     income (or deficit) of any Person accrued prior to the date it becomes a
     Subsidiary of Holdings or is merged into or consolidated with Holdings or
     any of its Subsidiaries, (b) the income (or deficit) of any Person (other
     than a Subsidiary of Holdings) in which Holdings or any of its Subsidiaries
     has an ownership interest (a "Joint Venture"), except to the extent that
     any such income is actually received by Holdings or such Subsidiary in the
     form of dividends or similar distributions; provided, that up to $600,000
     of the actual income in any fiscal year of all Joint Ventures which would
     otherwise be excluded from the determination of Consolidated Net Income of
     Holdings and its consolidated Subsidiaries pursuant to this clause (b)
     (without giving effect to this proviso) may be included therein,
     notwithstanding that such amount may not have been so received by Holdings
     or such Subsidiary, to the extent such amount is legally and contractually
     capable of being distributed to Holdings or such Subsidiary at the option
     of Holdings or such Subsidiary; provided, further, that, if in any
     subsequent period all or any portion of such amount ceases to be legally
     and contractually capable of being distributed to Holdings or such
     Subsidiary at the option of Holdings or such Subsidiary, then there shall
     be deducted from the determination of Consolidated Net Income of Holdings
     and its consolidated Subsidiaries for such period such amount or portion,
     as the case may be, and (c) the undistributed earnings of any Subsidiary of
     Holdings to the extent that the declaration or payment of dividends or
     similar distributions by such Subsidiary is not at the time permitted by
     the terms of any Contractual Obligation (other than under any Loan
     Document) or Requirement of Law applicable to such Subsidiary.

          "Consolidated Tangible Net Worth":  at any date, all amounts that
     would, in conformity with GAAP, be included on a consolidated balance sheet
     of Holdings and its Subsidiaries under stockholders' equity at such date,
     after deducting therefrom:  (i) any surplus resulting from the write-up of
     assets subsequent to March 31, 2000, (ii) goodwill, including any amounts
     (however designated on the balance sheet) representing the cost of
     acquisitions of Subsidiaries in excess of underlying tangible assets, (iii)
     patents, trademarks, copyrights, (iv) leasehold improvements not
     recoverable at the expiration of a lease, and (v) deferred charges
     (including, but not limited to, unamortized debt discount and expense,
     organization expenses and experimental and development expenses, but
     excluding prepaid expenses).

          "Consolidated Total Debt":  at any date, the aggregate principal
     amount of all Indebtedness of Holdings and its Subsidiaries at such date,
     determined on a consolidated basis in accordance with GAAP.

          "Consolidated Working Capital":  at any date, the difference of (a)
     Consolidated Current Assets on such date less (b) Consolidated Current
     Liabilities on such date.
<PAGE>

                                                                              11

          "Continuing Directors":  the directors of Holdings on the Closing
     Date, after giving effect to the Acquisition and the other transactions
     contemplated hereby, and each other director of Holdings, if, in each case,
     such other director's nomination for election to the board of directors of
     Holdings is recommended by at least 66-2/3% of the then Continuing
     Directors or such other director receives the vote of the Permitted
     Investors in his or her election by the shareholders of Holdings.

          "Contractual Obligation":  as to any Person, any provision of any
     security issued by such Person or of any agreement, instrument or other
     undertaking to which such Person is a party or by which it or any of its
     Property is bound.

          "Control Investment Affiliate":  as to any Person, any other Person
     that (a) directly or indirectly, is in control of, is controlled by, or is
     under common control with, such Person and (b) is organized by such Person
     primarily for the purpose of making equity or debt investments in one or
     more companies.  For purposes of this definition, "control" of a Person
     means the power, directly or indirectly, to direct or cause the direction
     of the management and policies of such Person, whether by contract or
     otherwise.

          "Conversion Date":  the date on which all or any portion of the PIK
     Preferred Stock is converted into the Seller Subordinated Notes in
     compliance with Section 7.6(g).

          "Default":  any of the events specified in Section 8, whether or not
     any requirement for the giving of notice, the lapse of time, or both, has
     been satisfied.

          "Derivatives Counterparty":  as defined in Section 7.6.

          "Disposition":  with respect to any Property, any sale, lease, sale
     and leaseback, assignment, conveyance, transfer or other disposition
     thereof; and the terms "Dispose" and "Disposed of" shall have correlative
     meanings.

          "Dollar Equivalent":  on any particular date, with respect to any
     amount denominated in Dollars, such amount of Dollars, and with respect to
     any amount denominated in a currency other than Dollars, the amount (as
     conclusively ascertained by the Administrative Agent absent manifest error)
     of Dollars which could be purchased by the Administrative Agent (in
     accordance with its normal banking practices) in the London foreign
     currency markets with such amount of such currency at the spot rate of
     exchange prevailing at or about 11:00 a.m. (London time) on such date.

          "Dollars" and "$":  lawful currency of the United States of America.

          "Domestic Subsidiary":  any Subsidiary of Holdings organized under the
     laws of any jurisdiction within the United States of America.

          "Domestic Guarantor":  any of Holdings and any Domestic Subsidiary
     which is or becomes a party to the Guarantee and Collateral Agreement.
<PAGE>

                                                                              12

          "ECF Percentage":  with respect to any fiscal year of Holdings, 75%;
     provided, that, with respect to any fiscal year of Holdings ending on or
     after March 31, 2002, the ECF Percentage shall be 50% if the Consolidated
     Leverage Ratio as of the last day of such fiscal year is not greater than
     3.75 to 1.0.

          "Eligible Accounts Receivable":  the aggregate of the unpaid portions
     of Accounts Receivable of the Borrowers or Guarantors (net of any credits,
     rebates, offsets, holdbacks or other adjustments or commissions payable to
     third parties that are adjustments to such Accounts Receivable):

          (i) that the Guarantors and Borrowers reasonably and in good faith
     determine to be collectible;

          (ii) that are with account debtors or other obligors that (A) are not
     Affiliates of the Borrowers or Guarantors, (B) purchased the goods or
     services giving rise to the relevant Account Receivable in an arm's length
     transaction, and (C) are not insolvent or involved as debtors in any case
     or proceeding, whether voluntary or involuntary, under any bankruptcy,
     reorganization, arrangement, insolvency, adjustment of debt, dissolution,
     liquidation or similar law of any jurisdiction and (D) are, in the
     Administrative Agent's reasonable judgment, creditworthy;

          (iii)  that are in payment of obligations that have been fully
     performed, do not consist of progress billings or bill and hold invoices
     and are not subject to dispute or any other similar claims that would
     reduce the cash amount payable therefor;

          (iv) that are not subject to any Lien other than those created by the
     Loan Documents;

          (v) in which the Administrative Agent has a valid and perfected first
     priority security interest;

          (vi) that are not outstanding for more than ninety (90) days past the
     date of the respective invoices therefor in the case of goods or ninety
     (90) days past the end of the calendar month following the provision
     thereof in the case of services;

          (vii)  that are not due from an account debtor or other obligor
     located in Minnesota unless the applicable Borrower or Guarantor (A) has
     received a certificate of authority to do business and is in good standing
     in such state or (B) has filed a notice of business activities report with
     the appropriate office or agency of such state for the current year;

          (viii)  to the extent that the Accounts Receivable owing from any
     single account debtor or other obligor do not exceed fifteen percent (15%)
     of the aggregate amount of all Accounts Receivable of the Borrowers and
     Guarantors owing from all account debtors and other obligors;
<PAGE>

                                                                              13

          (ix) that are payable in Dollars, Canadian Dollars, Australian
     Dollars, Sterling, Dutch Guilders, German Marks, French Francs, Swiss
     Francs, Belgian Francs, Italian Lira, Austrian Schillings, Spanish Pesetas,
     or Euro;

          (x) that are not payable from an office located in any country listed
     on Schedule C hereto; and

          (xi) that are not secured by a letter of credit, bank guarantee,
     indemnity or other similar instrument unless the Administrative Agent has a
     prior, perfected security interest in such instrument.

          "Eligible Inventory":  with respect to the Guarantors and Borrowers,
     finished goods and raw materials and component parts inventory owned by
     such Person; provided that Eligible Inventory shall not include any
     inventory:

          (i) held on consignment, or not otherwise owned by such Person, or of
     a type no longer sold by such Person;

          (ii) which has been returned by a customer and is unavailable for sale
     to another customer or is damaged or is held under any title retention
     arrangements or subject to any legal encumbrance other than Liens permitted
     by Section 7.3;

          (iii)  which is not in the possession of such Person unless the
     Administrative Agent has received a waiver from the party in possession of
     such inventory in form and substance satisfactory to the Administrative
     Agent;

          (iv) which is held by such Person on property leased by such Person,
     unless the Administrative Agent has received a waiver from the lessor of
     such leased property and, if any, sublessor thereof in form and substance
     satisfactory to the Administrative Agent; provided, however, the Borrowers
     shall not be required to satisfy the requirements of this paragraph (iv)
     until the date which is 60 days after the Closing Date or such later date
     as approved by the Administrative Agent;

          (v) as to which appropriate Uniform Commercial Code financing
     statements showing such Guarantor or Borrower as debtor and the
     Administrative Agent as secured party have not been filed in the proper
     filing office or offices (or other appropriate steps under applicable law
     have not been taken) in order to perfect the Administrative Agent's
     security interest therein;

          (vi) which has been shipped to a customer of such Guarantor or
     Borrower regardless of whether such shipment is on a consignment basis;

          (vii)  which is not located within the United States of America, the
     United Kingdom, the Netherlands, Canada or Australia; or
<PAGE>

                                                                              14

          (viii)  which the Administrative Agent reasonably deems to be obsolete
     or not marketable.

          "EMU":  the Economic and Monetary Union as contemplated in the Treaty.

          "EMU Legislation":  legislative measures of the European Council
     (including without limitation European Council regulations) for the
     introduction of, changeover to or operation of the Euro in one or more
     member states.

          "English Security Trust Deed":  as defined in the preamble hereto.

          "Environmental Laws":  any and all laws, rules, orders, regulations,
     statutes, ordinances, guidelines, codes, decrees, or other legally
     enforceable requirements (including, without limitation, common law) of any
     international authority, foreign government, the United States, or any
     state, local, municipal or other governmental authority, regulating,
     relating to or imposing liability or standards of conduct concerning
     protection of the environment or of human health, or employee health and
     safety, as has been, is now, or may at any time hereafter be, in effect.

          "Environmental Permits":  any and all permits, licenses, approvals,
     registrations, notifications, exemptions and other authorizations required
     under any Environmental Law.

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

          "Euro" and "(EURODOLLAR)":  the single currency of Participating
     Member States introduced in accordance with the provisions of Article 123
     of the Treaty and, in respect of all payments to be made under this
     Agreement in Euro, means immediately available, freely transferable funds.

          "Eurocurrency Base Rate":  with respect to each day during each
     Interest Period pertaining to a Loan denominated in Dollars or any Optional
     Currency, the rate per annum equal to the rate at which the Reference
     Lender is offered deposits in Dollars or such Optional Currency, as the
     case may be, at or about 11:00 A.M., London time, two Business Days prior
     to the beginning of such Interest Period in the interbank eurocurrency
     market where its eurocurrency and foreign currency and exchange operations
     are then being conducted with respect to the relevant currency for delivery
     on the first day of such Interest Period for the number of days comprised
     therein, plus the Mandatory Cost.

          "Eurocurrency Loans":  Loans for which the applicable rate of interest
     is based upon the Eurocurrency Rate.
<PAGE>

                                                                              15

          "Eurocurrency Rate":  with respect to each day during each Interest
     Period, a rate per annum determined for such day in accordance with the
     following formula (rounded upward to the nearest 1/100th of 1%):

                            Eurocurrency Base Rate
                   ----------------------------------------
                   1.00 - Eurocurrency Reserve Requirements

          "Eurocurrency Reserve Requirements":  for any day,  the aggregate
     (without duplication) of the maximum rates (expressed as a decimal
     fraction) of reserve requirements in effect on such day (including, without
     limitation, basic, supplemental, marginal and emergency reserves) under any
     regulations of the Board or other Governmental Authority having
     jurisdiction with respect thereto dealing with reserve requirements
     prescribed for eurocurrency funding (currently referred to as "Eurocurrency
     Liabilities" in Regulation D of the Board) maintained by a member bank of
     the Federal Reserve System.

          "Eurocurrency Tranche":  the collective reference to Eurocurrency
     Loans the then current Interest Periods with respect to all of which begin
     on the same date and end on the same later date (whether or not such Loans
     shall originally have been made on the same day).

          "Event of Default":  any of the events specified in Section 8,
     provided that any requirement for the giving of notice, the lapse of time,
     or both, has been satisfied.

          "Excepted UK Subsidiaries": the collective reference to Hallamshire
     Ltd., Deben Systems Ltd. and G.W.S. Weighing Systems Limited.

          "Excess Cash Flow":  for any fiscal year of Holdings, the difference,
     if any, of (a) the sum, without duplication, of (i) Consolidated Net Income
     for such fiscal year, (ii) the amount of all non-cash charges (including
     depreciation and amortization) deducted in arriving at such Consolidated
     Net Income, (iii) the amount of the decrease, if any, in Consolidated
     Working Capital for such fiscal year, (iv) the aggregate net amount of
     non-cash loss on the Disposition of Property by Holdings and its
     Subsidiaries during such fiscal year (other than sales of inventory in the
     ordinary course of business), to the extent deducted in arriving at such
     Consolidated Net Income and (v) the net increase during such fiscal year
     (if any) in deferred tax accounts of Holdings minus (b) the sum, without
     duplication, of (i) the amount of all non-cash credits included in arriving
     at such Consolidated Net Income, (ii) the aggregate amount actually paid by
     Holdings and its Subsidiaries in cash during such fiscal year on account of
     Capital Expenditures (excluding the principal amount of Indebtedness
     incurred in connection with such expenditures and any such expenditures
     financed with the proceeds of any Reinvestment Deferred Amount), (iii) the
     aggregate amount of all prepayments of Revolving Credit Loans and Swing
     Line Loans during such fiscal year to the extent accompanying permanent
     optional reductions of the Revolving Credit Commitments and all optional
     prepayments of the Term Loans during such fiscal year, (iv) the aggregate
     amount of all regularly scheduled principal payments of Funded Debt
     (including, without limitation,
<PAGE>

                                                                              16

     the Term Loans) of Holdings and its Subsidiaries made during such fiscal
     year (other than in respect of any revolving credit facility to the extent
     there is not an equivalent permanent reduction in commitments thereunder),
     (v) the amount of the increase, if any, in Consolidated Working Capital for
     such fiscal year, (vi) the aggregate net amount of non-cash gain on the
     Disposition of Property by Holdings and its Subsidiaries during such fiscal
     year (other than sales of inventory in the ordinary course of business), to
     the extent included in arriving at such Consolidated Net Income, and (vii)
     the net decrease during such fiscal year (if any) in deferred tax accounts
     of Holdings; provided, that the determination of Excess Cash Flow for the
     fiscal year ended March 31, 2001 shall be made for the period from July 1,
     2000 through and including March 31, 2001.

          "Excess Cash Flow Application Date":  as defined in Section 2.14(c).

          "Excluded Subsidiaries":  any Foreign Subsidiary in respect of which
     the guaranteeing by such Subsidiary of the Obligations or the provision of
     other credit support by such Subsidiary for the Obligations, would, in the
     good faith judgment of Holdings, be legally prohibited without the
     following of certain procedures which are, in the opinion of the Agents,
     not reasonably available to Holdings or any of its Subsidiaries.

          "Existing Credit Agreement":  as defined in the recitals hereto.

          "Facility":  each of (a) the Tranche A Term Loan Commitments and the
     Tranche A Term Loans made thereunder (the "Tranche A Term Loan Facility"),
     (b) the Tranche B Term Loan Commitments and the Tranche B Term Loans made
     thereunder (the "Tranche B Term Loan Facility") and (c) the Revolving
     Credit Commitments and the extensions of credit made thereunder (the
     "Revolving Credit Facility").

          "Federal Funds Effective Rate":  for any day, 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 on
     the next succeeding Business Day by the Federal Reserve Bank of New York,
     or, if such rate is not so published for any day which is a Business Day,
     the average of the quotations for the day of such transactions received by
     the Reference Lender from three federal funds brokers of recognized
     standing selected by it.

          "Foreign Collateral Documents":  the documents set forth on Schedule A
     hereto, together with any further security documents executed by any
     Foreign Guarantor  or by any Domestic Guarantor which owns the Capital
     Stock of a Foreign Subsidiary pursuant to Section 6.9.

          "Foreign Guarantees":  the documents set forth on Schedule B hereto,
     together with any document, instrument or agreement entered into after the
     Closing Date pursuant to 6.9 providing for the guarantee of all or any part
     of the Obligations by any Foreign Subsidiary.
<PAGE>

                                                                              17

          "Foreign Guarantor":  any Foreign Subsidiary that is a party to a
     Foreign Guarantee.

          "Foreign Subsidiary":  any Subsidiary of Holdings that is not a
     Domestic Subsidiary.

          "FQ1", "FQ2 ", "FQ3", and "FQ4": when used with a numerical year
     designation, means the first, second, third or fourth fiscal quarters,
     respectively, of such fiscal year of Holdings (e.g., FQ1 2001 means the
     first fiscal quarter of Holdings' 2001 fiscal year, which ends June 30,
     2001).

          "Fronted Loans":  that portion of the Revolving Credit Loans which is
     funded by the Fronting Lender and is not funded directly by another Lender.

          "Fronting Fee":  as defined in Section 2.11(b).

          "Fronting Lender":  Fleet National Bank, acting through its London
     branch, as Fronting Lender and any other Person who replaces Fleet National
     Bank as Fronting Lender pursuant to the provisions of Sections 2.6 and 2.7;
     provided, that for purposes of this Agreement, in the event the Fronting
     Lender is also a Lender, such Person's funding requirements in its capacity
     as Fronting Lender shall not include its independent requirement in its
     individual capacity to fund as a Lender.

          "Fronting Loan Event":  a "Fronting Loan Event" shall be deemed to
     occur if at any time it should become illegal or would violate any law,
     order, regulation or policy (including without limitation any internal
     banking or other lending policy of the Fronting Lender) or would otherwise
     not be practicable for the Fronting Lender to hold the Fronted Loans.

          "Funded Debt":  with respect to any Person, all Indebtedness of such
     Person of the types described in clauses (a) through (e) of the definition
     of "Indebtedness" in this Section.

          "Funding Office":  the office specified from time to time by the
     Administrative Agent as its funding office by notice to the Borrowers and
     the Lenders.

          "GAAP":  generally accepted accounting principles in the United States
     of America as in effect from time to time, except that for purposes of
     Section 7.1, GAAP shall be determined on the basis of such principles in
     effect on the date hereof and consistent with those used in the preparation
     of the most recent audited financial statements referred to in Section
     4.1(b).

          "Governmental Authority":  any nation or government, any state or
     other political subdivision thereof and any entity exercising executive,
     legislative, judicial, regulatory or administrative functions of or
     pertaining to government.
<PAGE>

                                                                              18

          "Guarantee and Collateral Agreement":  the Guarantee and Collateral
     Agreement to be executed and delivered by each Domestic Guarantor,
     substantially in the form of Exhibit A, as the same may be amended,
     supplemented or otherwise modified from time to time.

          "Guarantee Obligation":  as to any Person (the "guaranteeing person"),
     any obligation of (a) the guaranteeing person or (b) another Person
     (including, without limitation, any bank under any letter of credit) to
     induce the creation of which the guaranteeing person has issued a
     reimbursement, counterindemnity or similar obligation, in either case
     guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends
     or other obligations (the "primary obligations") of any other third Person
     (the "primary obligor") in any manner, whether directly or indirectly,
     including, without limitation, any obligation of the guaranteeing person,
     whether or not contingent, (i) to purchase any such primary obligation or
     any Property constituting direct or indirect security therefor, (ii) to
     advance or supply funds (1) for the purchase or payment of any such primary
     obligation or (2) to maintain working capital or equity capital of the
     primary obligor or otherwise to maintain the net worth or solvency of the
     primary obligor, (iii) to purchase Property, securities or services
     primarily for the purpose of assuring the owner of any such primary
     obligation of the ability of the primary obligor to make payment of such
     primary obligation or (iv) otherwise to assure or hold harmless the owner
     of any such primary obligation against loss in respect thereof; provided,
     however, that the term Guarantee Obligation shall not include endorsements
     of instruments for deposit or collection in the ordinary course of
     business.  The amount of any Guarantee Obligation of any guaranteeing
     person shall be deemed to be the lower of (a) an amount equal to the stated
     or determinable amount of the primary obligation in respect of which such
     Guarantee Obligation is made and (b) the maximum amount for which such
     guaranteeing person may be liable pursuant to the terms of the instrument
     embodying such Guarantee Obligation, unless such primary obligation and the
     maximum amount for which such guaranteeing person may be liable are not
     stated or determinable, in which case the amount of such Guarantee
     Obligation shall be such guaranteeing person's maximum reasonably
     anticipated liability in respect thereof as determined by the Borrower in
     good faith.

          "Guarantors":  the collective reference to each Domestic Guarantor and
     each Foreign Guarantor.

          "Hedge Agreements":  all interest rate swaps, caps or collar
     agreements or similar arrangements entered into by Holdings or its
     Subsidiaries providing for protection against fluctuations in interest
     rates or currency exchange rates or the exchange of nominal interest
     obligations, either generally or under specific contingencies.

          "Indebtedness":  of any Person at any date, without duplication, (a)
     all indebtedness of such Person for borrowed money, (b) all obligations of
     such Person for the deferred purchase price of Property or services (other
     than trade payables incurred in the ordinary course of such Person's
     business), (c) all obligations of such Person evidenced by notes, bonds,
     debentures or other similar instruments, (d) all indebtedness
<PAGE>

                                                                              19

     created or arising under any conditional sale or other title retention
     agreement with respect to Property acquired by such Person (even though the
     rights and remedies of the seller or lender under such agreement in the
     event of default are limited to repossession or sale of such Property), (e)
     all Capital Lease Obligations of such Person, (f) all obligations of such
     Person, contingent or otherwise, as an account party or applicant under
     acceptance, letter of credit or similar facilities, (g) all obligations of
     such Person, contingent or otherwise, to purchase, redeem, retire or
     otherwise acquire for value any Capital Stock of such Person, (h) all
     Guarantee Obligations of such Person in respect of obligations of the kind
     referred to in clauses (a) through (g) above; (i) all obligations of the
     kind referred to in clauses (a) through (h) above secured by (or for which
     the holder of such obligation has an existing right, contingent or
     otherwise, to be secured by) any Lien on Property (including, without
     limitation, accounts and contract rights) owned by such Person, whether or
     not such Person has assumed or become liable for the payment of such
     obligation, (j) for the purposes of Section 8(e) only, all obligations of
     such Person in respect of Hedge Agreements and (k) the liquidation value of
     any preferred Capital Stock of such Person or its Subsidiaries that (1) is
     mandatorily redeemable on any date prior to the date which is six months
     after the final maturity date of the Term Loans and (2) is held by any
     Person other than the issuer thereof and its Wholly Owned Subsidiaries.

          "Indemnified Liabilities":  as defined in Section 10.5.

          "Indemnitee":  as defined in Section 10.5.

          "Initial Public Offering":  an underwritten public offering by
     Holdings of Capital Stock of Holdings or any Subsidiary or parent thereof
     pursuant to a registration statement filed with the Securities and Exchange
     Commission in accordance with the Securities Act of 1933, as amended.

          "Insolvency":  with respect to any Multiemployer Plan, the condition
     that such Plan is insolvent within the meaning of Section 4245 of ERISA.

          "Insolvent":  pertaining to a condition of Insolvency.

          "Intellectual Property":  the collective reference to all rights,
     priorities and privileges relating to intellectual property, whether
     arising under United States, multinational or foreign laws or otherwise,
     including, without limitation, copyrights, copyright licenses, patents,
     patent licenses, trademarks, trademark licenses, technology, know-how and
     processes, and all rights to sue at law or in equity for any infringement
     or other impairment thereof, including the right to receive all proceeds
     and damages therefrom.

          "Interest Payment Date":  (a) as to any Base Rate Loan, the last day
     of each March, June, September and December to occur while such Loan is
     outstanding and the final maturity date of such Loan, (b) as to any
     Eurocurrency Loan having an Interest Period of three months or shorter, the
     last day of such Interest Period, (c) as to any Eurocurrency Loan having an
     Interest Period longer than three months, each day that is
<PAGE>

                                                                              20

     three months, or a whole multiple thereof, after the first day of such
     Interest Period and the last day of such Interest Period and (d) as to any
     Loan (other than any Revolving Credit Loan that is a Base Rate Loan and any
     Swing Line Loan), the date of any repayment or prepayment made in respect
     thereof.

          "Interest Period":  as to any Eurocurrency Loan, (a) initially, the
     period commencing on the borrowing or conversion date, as the case may be,
     with respect to such Eurocurrency Loan and ending one, two, three or six
     months thereafter, as selected by the relevant Borrower in its notice of
     borrowing or notice of conversion, as the case may be, given with respect
     thereto; and (b) thereafter, each period commencing on the last day of the
     next preceding Interest Period applicable to such Eurocurrency Loan and
     ending one, two, three or six months thereafter, as selected by the
     relevant Borrower by irrevocable notice to the Administrative Agent not
     less than three Business Days prior to the last day of the then current
     Interest Period with respect thereto; provided that, all of the foregoing
     provisions relating to Interest Periods are subject to the following:

                    (i) if any Interest Period would otherwise end on a day
          that is not a Business Day, such Interest Period shall be extended to
          the next succeeding 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 Business Day;

                    (ii) any Interest Period that would otherwise extend
          beyond the Revolving Credit Termination Date or beyond the date final
          payment is due on the Tranche A Term Loans or the Tranche B Term
          Loans, as the case may be, shall end on the Revolving Credit
          Termination Date or such due date, as applicable; and

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

          "Investments":  as defined in Section 7.8.

          "Irish Security Trust Deed":  as defined in the preamble hereto.

          "Issuing Lender":  Fleet National Bank.

          "L/C Commitment":  $10,000,000.

          "L/C Obligations":  at any time, an amount equal to the sum of (a) the
     Dollar Equivalent of the aggregate then undrawn and unexpired amount of the
     then outstanding Letters of Credit and (b) the Dollar Equivalent of the
     aggregate amount of drawings under Letters of Credit that have not then
     been reimbursed pursuant to Section 3.5.
<PAGE>

                                                                              21

          "Lehman Entity": any of Lehman Commercial Paper Inc. or any of its
     affiliates (including Syndicated Loan Funding Trust).

          "Lender Addendum":  with respect to any initial Lender, a Lender
     Addendum, substantially in the form of Exhibit J, to be executed and
     delivered by such Lender on the Closing Date as provided in Section 10.17.

          "Lenders":  as defined in the preamble hereto, and, in any event, to
     include, unless the context otherwise requires, the Fronting Lender.

          "Letter of Credit Application":  as defined in Section 3.1(a).

          "Letter of Credit Fee":  as defined in Section 3.6.

          "Letter of Credit Participation":  as defined in Section 3.1(d).

          "Letters of Credit":  as defined in Section 3.1(a).

          "Lien":  any mortgage, pledge, hypothecation, assignment, deposit
     arrangement, encumbrance, lien (statutory or other), charge or other
     security interest or any preference, priority or other security agreement
     or preferential arrangement of any kind or nature whatsoever (including,
     without limitation, any conditional sale or other title retention agreement
     and any capital lease having substantially the same economic effect as any
     of the foregoing).

          "Loan":  any loan made by any Lender pursuant to this Agreement.

          "Loan Documents":  this Agreement, the Security Documents, the Letter
     of Credit Applications and the Notes.

          "Loan Parties":  Holdings, the Borrowers and each Subsidiary of
     Holdings that is a party to a Loan Document.

          "Majority Facility Lenders":  with respect to any Facility, the
     holders of more than 50% of the aggregate unpaid principal amount of the
     Term Loans or the Total Revolving Extensions of Credit, as the case may be,
     outstanding under such Facility (or, in the case of the Revolving Credit
     Facility, prior to any termination of the Revolving Credit Commitments, the
     holders of more than 50% of the Total Revolving Credit Commitments).

          "Majority Revolving Credit Facility Lenders":  the Majority Facility
     Lenders in respect of the Revolving Credit Facility.

          "Mandatory Cost" means, with respect to any Lender, the cost imputed
     to such Lender of compliance with the requirements of the Bank of England,
     the Financial
<PAGE>

                                                                              22

     Services Authority and/or the European Central Bank during the relevant
     Interest Period, determined in accordance with Schedule C.

          "Material Adverse Effect":  (i) when used on the Closing Date, shall
     mean a material adverse condition or material adverse change in or
     affecting (a) the Acquisition, (b) the condition (financial or otherwise),
     results of operation, assets, liabilities or management (collectively, the
     "Business") of Avery Berkel and their Subsidiaries, taken as a whole, or
     that calls into question in any material respect the accuracy of the
     Projections or any of the material assumptions on which the Projections
     were prepared to the extent that, as the Projections relate to Avery Berkel
     and their Subsidiaries, they present a no more favorable picture of Avery
     Berkel and their Subsidiaries, taken as a whole, than the projections
     provided to Holdings by the Seller, (c) the Business of Holdings and its
     Subsidiaries, taken as a whole, which could reasonably be determined to
     constitute a material adverse condition or material adverse change in or
     affecting the Business of the Company and Avery Berkel and their respective
     Subsidiaries, taken as a whole, or (d) the validity or enforceability of
     this Agreement or any of the other Loan Documents or the rights or remedies
     of the Agents or the Lenders hereunder or thereunder, and (ii) when used at
     any time after the Closing Date, shall mean a material adverse effect on
     (c) the Acquisition, (d) the business, assets, property or condition
     (financial or otherwise) of Holdings and its Subsidiaries taken as a whole
     or (e) the validity or enforceability of this Agreement or any of the other
     Loan Documents or the rights or remedies of the Agents or the Lenders
     hereunder or thereunder.

          "Materials of Environmental Concern":  any gasoline or petroleum
     (including crude oil or any fraction thereof) or petroleum products,
     polychlorinated biphenyls, urea-formaldehyde insulation, asbestos,
     pollutants, contaminants, radioactivity, and any other substances or forces
     of any kind, whether or not any such substance or force is defined as
     hazardous or toxic under any Environmental Law, that is regulated pursuant
     to or could give rise to liability under any Environmental Law.

          "Mortgaged Properties":  the real properties listed on Schedule 1.1,
     as to which the Administrative Agent for the benefit of the Lenders shall
     be granted a Lien pursuant to the Mortgages.

          "Mortgages":  each of the mortgages and deeds of trust made by any
     Loan Party in favor of, or for the benefit of, the Administrative Agent for
     the benefit of the Lenders, as the same may be amended, supplemented or
     otherwise modified from time to time.

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

          "National Currency Unit":  the unit of currency (other than the Euro)
     of a Participating Member State.

          "Net Cash Proceeds":  (a)  in connection with any Asset Sale or any
     Recovery Event, the proceeds thereof in the form of cash and Cash
     Equivalents (including any such
<PAGE>

                                                                              23

     proceeds received by way of deferred payment of principal pursuant to a
     note or installment receivable or purchase price adjustment receivable or
     otherwise, but only as and when received) of such Asset Sale or Recovery
     Event, net of attorneys' fees, accountants' fees, investment banking fees,
     amounts required to be applied to the repayment of Indebtedness secured by
     a Lien expressly permitted hereunder on any asset which is the subject of
     such Asset Sale or Recovery Event (other than any Lien pursuant to a
     Security Document) and other customary fees and expenses actually incurred
     in connection therewith and net of taxes paid or reasonably estimated to be
     payable as a result thereof (after taking into account any available tax
     credits or deductions and any tax sharing arrangements), (b) in connection
     with any issuance or sale of equity securities or debt securities or
     instruments or the incurrence of loans, the cash proceeds received from
     such issuance or incurrence, net of attorneys' fees, investment banking
     fees, accountants' fees, underwriting discounts and commissions and other
     customary fees and expenses actually incurred in connection therewith and
     (c) in connection with any Purchase Price Refund, the cash amount thereof,
     net of any expenses incurred in the collection thereof.

          "Non-Excluded Taxes":  as defined in Section 2.22(a).

          "Non-U.S. Lender":  as defined in Section 2.22(d).

          "Note":  any promissory note evidencing any Loan.

          "Obligations":  the unpaid principal of and interest on (including,
     without limitation, interest accruing after the maturity of the Loans and
     Reimbursement Obligations and interest accruing after the filing of any
     petition in bankruptcy, or the commencement of any insolvency,
     reorganization or like proceeding, relating to either Borrower, whether or
     not a claim for post-filing or post-petition interest is allowed in such
     proceeding) the Loans, the Reimbursement Obligations and all other
     obligations and liabilities of the Borrowers to an Agent or to any Lender
     (or, in the case of Specified Hedge Agreements, any affiliate of any
     Lender), whether direct or indirect, absolute or contingent, due or to
     become due, or now existing or hereafter incurred, which may arise under,
     out of, or in connection with, this Agreement, any other Loan Document, the
     Letters of Credit, any Specified Hedge Agreement or any other document
     made, delivered or given in connection herewith or therewith, whether on
     account of principal, interest, reimbursement obligations, fees,
     indemnities, costs, expenses (including, without limitation, all fees,
     charges and disbursements of counsel to the Administrative Agent or to any
     Lender that are required to be paid by the Borrowers pursuant hereto) or
     otherwise; provided, that (i) obligations of the Borrowers or any
     Subsidiary under any Specified Hedge Agreement shall be secured and
     guaranteed pursuant to the Security Documents only to the extent that, and
     for so long as, the other Obligations are so secured and guaranteed and
     (ii) any release of Collateral or Guarantors effected in the manner
     permitted by this Agreement shall not require the consent of holders of
     obligations under Specified Hedge Agreements.
<PAGE>

                                                                              24

          "Optional Currency":  Sterling and Euro, so long as such currency is
     freely convertible into Dollars and is traded on any recognized
     eurocurrency interbank market selected by the Administrative Agent in good
     faith.

          "Optional Currency Sublimit":  $25,000,000.

          "Other Taxes":  any and all present or future stamp or documentary
     taxes or any other excise or property taxes, charges or similar levies
     arising from any payment made hereunder or from the execution, delivery or
     enforcement of, or otherwise with respect to, this Agreement or any other
     Loan Document.

          "Overnight Rate":  for any day, (a) as to Loans or Letters of Credit
     denominated in Dollars, the weighted average interest rate paid by the
     Administrative Agent for federal funds acquired by the Administrative
     Agent, and (b) as to Loans or Letters of Credit denominated in an Optional
     Currency, the rate of interest per annum at which overnight deposits in the
     applicable Optional Currency, in an amount approximately equal to the
     amount with respect to which such rate is being determined, would be
     offered for such day by the Administrative Agent to major banks in the
     London interbank market.

          "Participant":  as defined in Section 10.6(b).

          "Participating Member State":  a member state of the European
     Communities that adopts the Euro as its currency in accordance with EMU
     Legislation.

          "Payment Office":  the office specified from time to time by the
     Administrative Agent as its payment office by notice to the Borrowers and
     the Lenders.

          "PBGC":  the Pension Benefit Guaranty Corporation established pursuant
     to Subtitle A of Title IV of ERISA (or any successor).

          "Permitted Investors":  the collective reference to the Sponsor and
     its Control Investment Affiliates.

          "Person":  an individual, partnership, corporation, limited liability
     company, business trust, joint stock company, trust, unincorporated
     association, joint venture, Governmental Authority or other entity of
     whatever nature.

          "PIK Preferred Stock":  the 12% Senior Exchangeable PIK Preferred
     Stock of Holdings.

          "Plan":  at a particular time, any employee benefit plan that is
     covered by ERISA and in respect of which Holdings or a Commonly Controlled
     Entity is (or, if such plan were terminated at such time, would under
     Section 4069 of ERISA be deemed to be) an "employer" as defined in Section
     3(5) of ERISA.

          "Pricing Grid":  the pricing grid attached hereto as Annex A.
<PAGE>

                                                                              25

          "Pro Forma Balance Sheet":  as defined in Section 4.1(a).

          "Projections":  as defined in Section 6.2(c).

          "Property":  any right or interest in or to property of any kind
     whatsoever, whether real, personal or mixed and whether tangible or
     intangible, including, without limitation, Capital Stock.

          "Purchase":  any acquisition, whether in a single transaction or
     series of related transactions, by Holdings or any one or more of its
     Subsidiaries of (a) all or a substantial part of the assets, or of a
     business, unit or division, of any Person, whether through purchase of
     assets or securities, by merger or otherwise; (b) any Person that becomes a
     Subsidiary after giving effect to such acquisition; or (c) control (as
     defined in clause (b) of the definition of "Affiliate") of a partnership,
     joint venture or other Person.

          "Purchase Price":  with respect to any Purchase, the sum (without
     duplication) of (a) the amount of cash paid by Holdings and its
     Subsidiaries in connection with such Purchase, (b) the sum of (i) the value
     (as determined for purposes of such Purchase in accordance with the
     applicable acquisition agreement) of all Capital Stock of Holdings issued
     or given as consideration in connection with such Purchase and (ii) the
     Qualified Net Cash Equity Proceeds applied to finance such Purchase, (c)
     the principal amount (or, if less, the accreted value) at the time of such
     Purchase of all Indebtedness incurred, assumed or acquired by Holdings and
     its Subsidiaries in connection with such Purchase, (d) all additional
     purchase price amounts in connection with such Purchase in the form of
     earnouts, deferred purchase price and other contingent obligations that
     should be recorded as a liability on the balance sheet of Holdings and its
     Subsidiaries in accordance with GAAP, Regulation S-X under the Securities
     Act of 1933, as amended, or any other rule or regulation of the United
     States Securities and Exchange Commission, (e) all amounts paid by Holdings
     and its Subsidiaries in respect of covenants not to compete, consulting
     agreements and other affiliated contracts in connection with such Purchase,
     and (f) the aggregate fair market value of all other consideration given by
     Holdings and its Subsidiaries in connection with such Purchase.

          "Purchase Price Refund":  any amount received by Holdings or any
     Subsidiary as a result of a purchase price adjustment or similar event in
     connection with any acquisition of Property by Holdings or any Subsidiary.

          "Qualified Net Cash Equity Proceeds":  the Net Cash Proceeds of any
     offering of Capital Stock of Holdings so long as (a) such offering was made
     in express contemplation of a Purchase, (b) such Capital Stock is not
     mandatorily redeemable and (c) such Purchase is consummated within 90 days
     after receipt by Holdings of such Net Cash Proceeds.

          "Recovery Event":  any settlement of or payment in respect of any
     property or casualty insurance claim or any condemnation proceeding
     relating to any asset of Holdings or any of its Subsidiaries.
<PAGE>

                                                                              26

          "Reference Lender":  Fleet National Bank.

          "Refunded Swing Line Loans":  as defined in Section 2.9.

          "Refunding Date":  as defined in Section 2.9.

          "Register":  as defined in Section 10.6(d).

          "Regulation H":  Regulation H of the Board as in effect from time to
     time.

          "Regulation U":  Regulation U of the Board as in effect from time to
     time.

          "Reimbursement Obligation":  the obligation of the Borrower to
     reimburse the Issuing Lender pursuant to Section 3.2 for amounts drawn
     under Letters of Credit issued by the Issuing Lender.

          "Reinvestment Deferred Amount":  with respect to any Reinvestment
     Event, the aggregate Net Cash Proceeds received by Holdings or any of its
     Subsidiaries in connection therewith that are not applied to prepay the
     Term Loans pursuant to Section 2.14(b) as a result of the delivery of a
     Reinvestment Notice.

          "Reinvestment Event":  any Asset Sale, Purchase Price Refund or
     Recovery Event in respect of which Holdings has delivered a Reinvestment
     Notice.

          "Reinvestment Notice":  a written notice executed by a Responsible
     Officer stating that no Default or Event of Default has occurred and is
     continuing and that Holdings (through a Subsidiary) intends and expects to
     use all or a specified portion of the Net Cash Proceeds of an Asset Sale,
     Purchase Price Refund or Recovery Event to acquire assets useful in its
     business.

          "Reinvestment Prepayment Amount":  with respect to any Reinvestment
     Event, the Reinvestment Deferred Amount relating thereto less any amount
     with respect to which a binding, irrevocable commitment to make a
     particular expenditure to acquire assets useful in Holdings' business has
     been entered into prior to the relevant Reinvestment Prepayment Date and
     which are actually expended by the date which is the later to occur of (a)
     one year after such Reinvestment Event and (b) 90 days after the entry into
     such commitment.

          "Reinvestment Prepayment Date":  with respect to any Reinvestment
     Event, the earlier of (a) the date occurring one year after such
     Reinvestment Event and (b) the date on which Holdings shall have determined
     not to, or shall have otherwise ceased to, acquire assets useful in
     Holdings' business with all or any portion of the relevant Reinvestment
     Deferred Amount.

          "Reorganization":  with respect to any Multiemployer Plan, the
     condition that such plan is in reorganization within the meaning of Section
     4241 of ERISA.
<PAGE>

                                                                              27

          "Reportable Event":  any of the events set forth in Section 4043(c) of
     ERISA, other than those events as to which the thirty day notice period is
     waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC
     Reg. (S) 4043.

          "Required Lenders":  at any time, the holders of more than 50% of (a)
     until the Closing Date, the Commitments and (b) thereafter, the sum of (i)
     the Dollar Equivalent of the aggregate unpaid principal amount of the Term
     Loans then outstanding and (ii) the Total Revolving Credit Commitments then
     in effect or, if the Revolving Credit Commitments have been terminated, the
     Dollar Equivalent of the Total Revolving Extensions of Credit then
     outstanding.

          "Requirement of Law":  as to any Person, the Certificate of
     Incorporation and By-Laws or other organizational or governing documents of
     such Person, and any law, treaty, rule or regulation or determination of an
     arbitrator or a court or other Governmental Authority, in each case
     applicable to or binding upon such Person or any of its Property or to
     which such Person or any of its Property is subject.

          "Responsible Officer":  the chief executive officer, president or
     chief financial officer of Holdings.

          "Restricted Payments":  as defined in Section 7.6.

          "Revolving Credit Commitment":  as to any Lender, the obligation of
     such Lender, if any, to make Revolving Credit Loans (or, in the case of
     Revolving Credit Loans denominated in any Optional Currency, to purchase a
     risk participation from the Fronting Lender in such Revolving Credit Loans
     made to the Borrower by the Fronting Lender pursuant to Section 2.6) and
     participate in Swing Line Loans and Letters of Credit, the Dollar
     Equivalent of which is in an aggregate principal and/or face amount not to
     exceed the amount set forth under the heading "Revolving Credit Commitment"
     opposite such Lender's name on Schedule 1 to the Lender Addendum delivered
     by such Lender, or, as the case may be, in the Assignment and Acceptance
     pursuant to which such Lender became a party hereto, as the same may be
     changed from time to time pursuant to the terms hereof.  The original
     aggregate amount of the Total Revolving Credit Commitments is $50,000,000.

          "Revolving Credit Commitment Period":  the period from and including
     the Closing Date to the Revolving Credit Termination Date.

          "Revolving Credit Lender":  each Lender that has a Revolving Credit
     Commitment or that is the holder of Revolving Credit Loans.

          "Revolving Credit Loans":  as defined in Section 2.4.

          "Revolving Credit Percentage":  as to any Revolving Credit Lender at
     any time, the percentage which such Lender's Revolving Credit Commitment
     then constitutes of the Total Revolving Credit Commitments (or, at any time
     after the Revolving Credit Commitments shall have expired or terminated,
     the percentage which the aggregate
<PAGE>

                                                                              28

     amount of such Lender's Revolving Extensions of Credit then outstanding
     constitutes the amount of the Total Revolving Extensions of Credit then
     outstanding).

          "Revolving Credit Termination Date":  June 30, 2005.

          "Revolving Extensions of Credit":  as to any Revolving Credit Lender
     at any time, an amount equal to the sum of (a) the Dollar Equivalent of the
     aggregate principal amount of all Revolving Credit Loans made by such
     Lender then outstanding, (b) such Lender's Revolving Credit Percentage of
     the Dollar Equivalent of the L/C Obligations then outstanding and (c) such
     Lender's Revolving Credit Percentage of the Dollar Equivalent of the
     aggregate principal amount of Swing Line Loans then outstanding.

          "SEC":  the Securities and Exchange Commission (or successors thereto
     or an analogous Governmental Authority).

          "Security Agent": as defined in the preamble hereto.

          "Security Documents":  the collective reference to the Guarantee and
     Collateral Agreement, the Mortgages, the Foreign Collateral Documents, the
     Foreign Guarantees and all other security documents hereafter delivered to
     the Administrative Agent granting a Lien on any Property of any Person to
     secure the obligations and liabilities of any Loan Party under any Loan
     Document or under any Specified Hedge Agreement.

          "Seller": as defined in the recitals hereto.

          "Seller Subordinated Notes":  as defined in Section 7.6(g).

          "Senior Subordinated Note Indenture":  the Indenture entered into by
     the Borrower and the Guarantors in connection with the issuance of the
     Senior Subordinated Notes, together with all instruments and other
     agreements entered into by the Borrower or the Guarantors in connection
     therewith, as the same may be amended, supplemented or otherwise modified
     from time to time in accordance with Section 7.9.

          "Senior Subordinated Notes":  the subordinated notes of the Borrower
     issued on the Closing Date pursuant to the Senior Subordinated Note
     Indenture.

          "Single Employer Plan":  any Plan that is covered by Title IV of
     ERISA, but which is not a Multiemployer Plan.

          "Solvent":  with respect to any Person, as of any date of
     determination, (a) the amount of the "present fair saleable value" of the
     assets of such Person will, as of such date, exceed the amount of all
     "liabilities of such Person, contingent or otherwise", as of such date, as
     such quoted terms are determined in accordance with applicable federal and
     state laws governing determinations of the insolvency of debtors, (b) the
     present fair saleable value of the assets of such Person will, as of such
     date, be greater than the amount that will be required to pay the liability
     of such Person on its debts as such debts become absolute and matured, (c)
     such Person will not have, as of such date, an unreasonably small amount of
     capital with which to conduct its business, and (d) such
<PAGE>

                                                                              29

     Person will be able to pay its debts as they mature. For purposes of this
     definition, (i) "debt" means liability on a "claim", and (ii) "claim" means
     any (x) right to payment, whether or not such a right is reduced to
     judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured,
     disputed, undisputed, legal, equitable, secured or unsecured or (y) right
     to an equitable remedy for breach of performance if such breach gives rise
     to a right to payment, whether or not such right to an equitable remedy is
     reduced to judgment, fixed, contingent, matured or unmatured, disputed,
     undisputed, secured or unsecured.

          "Specified Change of Control":  a "Change of Control", or like event,
     as defined in the Senior Subordinated Note Indenture.

          "Specified Hedge Agreement":  any Hedge Agreement (a) entered into by
     (i) Holdings or any of its Subsidiaries and (ii) any Lender or any
     affiliate thereof, as counterparty and (b) that has been designated by such
     Lender and Holdings, by notice to the Administrative Agent and the
     Syndication Agent, as a Specified Hedge Agreement.  The designation of any
     Hedge Agreement as a Specified Hedge shall not create in favor of the
     Lender or affiliate thereof that is a party thereto any rights in
     connection with the management or release of any Collateral or of the
     obligations of any Guarantor under the Guarantee and Collateral Agreement,
     any Foreign Guarantee or any Foreign Collateral Document.

          "Sponsor":  Berkshire Partners, LLC, a Massachusetts limited liability
     company.

          "Sterling" and "(Pounds)":  pounds sterling in lawful currency of the
     United Kingdom.

          "Subsequent Participant":  any member state that adopts the Euro as
     its lawful currency after the date hereof.

          "Subsidiary":  as to any Person, a corporation, partnership, limited
     liability company or other entity of which shares of stock or other
     ownership interests having ordinary voting power (other than stock or such
     other ownership interests having such power only by reason of the happening
     of a contingency) to elect a majority of the board of directors or other
     managers of such corporation, partnership or other entity are at the time
     owned, or the management of which is otherwise controlled, directly or
     indirectly through one or more intermediaries, or both, by such Person.
     Unless otherwise qualified, all references to a "Subsidiary" or to
     "Subsidiaries" in this Agreement shall refer to a Subsidiary or
     Subsidiaries of Holdings.

          "Swing Line Commitment":  the obligation of the Swing Line Lender to
     make Swing Line Loans pursuant to Section 2.8 in an aggregate principal
     amount at any one time outstanding not to exceed $7,000,000.

          "Swing Line Lender":  Fleet National Bank, in its capacity as the
     lender of Swing Line Loans.

          "Swing Line Loans":  as defined in Section 2.8.
<PAGE>

                                                                              30

          "Swing Line Participation Amount":  as defined in Section 2.9.

          "Term Loan Facilities":  the collective reference to the Tranche A
     Term Loan Facility and the Tranche B Term Loan Facility.

          "Term Loan Lenders":  the collective reference to the Tranche A Term
     Loan Lenders and the Tranche B Term Loan Lenders.

          "Term Loans":  the collective reference to the Tranche A Term Loans
     and the Tranche B Term Loans.

          "Total Net Assets":  of any Person at any time, the book value of all
     assets of such Person at such time determined on a consolidated basis in
     accordance with GAAP.

          "Total Revolving Credit Commitments":  at any time, the aggregate
     amount of the Revolving Credit Commitments then in effect.

          "Total Revolving Extensions of Credit":  at any time, the aggregate
     amount of the Revolving Extensions of Credit of the Revolving Credit
     Lenders outstanding at such time.

          "Tranche A Term Loan":  as defined in Section 2.1.

          "Tranche A Term Loan Commitment":  as to any Tranche A Term Loan
     Lender, the obligation of such Lender to make Tranche A Term Loans to the
     Borrower hereunder in Dollars and Sterling, the Dollar Equivalent of the
     principal amounts of which shall not exceed the amount set forth under the
     heading "Tranche A Term Loan Commitment" opposite such Tranche A Term Loan
     Lender's name on Schedule 1 to the Lender Addendum delivered by such
     Tranche A Term Loan Lender, or, as the case may be, in the Assignment and
     Acceptance pursuant to which such Lender became a party hereto, as the same
     may be changed from time to time pursuant to the terms hereof.  The
     original aggregate principal amount of the Tranche A Term Loan Commitments
     is $30,000,000.

          "Tranche A Term Loan Facility":  as defined in the definition of
     "Facility" in this Section 1.1.

          "Tranche A Term Loan Lender":  each Lender that has a Tranche A Term
     Loan Commitment or is the holder a Tranche A Term Loan.

          "Tranche A Term Loan Percentage":  as to Tranche A Term Loan Lender at
     any time, the percentage which such Lender's aggregate Tranche A Term Loan
     Commitment then constitutes of the aggregate Tranche A Term Loan
     Commitments of all of the Tranche A Term Loan Lenders (or, at any time
     after the Closing Date, the percentage which the aggregate principal amount
     of such Lender's Tranche A Term Loans then outstanding constitutes of the
     aggregate principal amount of the Tranche A Term Loans of all the Tranche A
     Term Loan Lenders then outstanding).
<PAGE>

                                                                              31

          "Tranche B Term Loan":  as defined in Section 2.1.

          "Tranche B Term Loan Commitment":  as to any Tranche B Term Loan
     Lender, the obligation of such Lender to make Tranche A Term Loans to the
     Borrower and the Canadian Borrower hereunder in Dollars and Sterling, the
     Dollar Equivalent of the principal amounts of which shall not exceed the
     amount set forth under the heading "Tranche B Term Loan Commitment"
     opposite such Lender's name on Schedule 1 to the Lender Addendum delivered
     by such Lender, or, as the case may be, in the Assignment and Acceptance
     pursuant to which such Lender became a party hereto, as the same may be
     changed from time to time pursuant to the terms hereof.  The original
     aggregate amount of the Tranche B Term Loan Commitments is $40,000,000.

          "Tranche B Term Loan Facility":  as defined in the definition of
     "Facility" in this Section 1.1.

          "Tranche B Term Loan Lender":  each Lender that has a Tranche B Term
     Loan Commitment or is the holder of a Tranche B Term Loan.

          "Tranche B Term Loan Percentage":  as to any Lender at any time, the
     percentage which such Lender's aggregate Tranche B Term Loan Commitment
     then constitutes of the aggregate Tranche B Term Loan Commitments of all
     the Tranche B Term Loan Lenders (or, at any time after the Closing Date,
     the percentage which the aggregate principal amount of such Lender's
     Tranche B Term Loans then outstanding constitutes of the aggregate
     principal amount of the Tranche B Term Loans of all of the Tranche B Term
     Loan Lenders then outstanding).

          "Transferee":  as defined in Section 10.15.

          "Treaty":  the Treaty establishing the European Economic Community,
     being the Treaty of Rome of March 25, 1957 as amended by the Single
     European Act 1987, the Maastricht Treaty (the Treaty on European Union)
     (which was signed on February 7, 1992 and came into force on November 1,
     1993) and the Treaty of Amsterdam (which was signed on October 2, 1997) and
     as may, from time to time, be further amended, supplemented or otherwise
     modified.

          "Type":  as to any Loan, its nature as a Base Rate Loan or a
     Eurocurrency Loan.

          "Wholly Owned Guarantor":  any Guarantor that is a Wholly Owned
     Subsidiary of Holdings.

          "Wholly Owned Subsidiary":  as to any Person, any other Person all of
     the Capital Stock of which (other than directors' qualifying shares
     required by law) is owned by such Person directly and/or through other
     Wholly Owned Subsidiaries.

          1.2  Other Definitional Provisions.  (a)  Unless otherwise specified
therein, all terms defined in this Agreement shall have the defined meanings
when used in the other Loan Documents or any certificate or other document made
or delivered pursuant hereto or thereto.
<PAGE>

                                                                              32

          (b) As used herein and in the other Loan Documents, and any
certificate or other document made or delivered pursuant hereto or thereto,
accounting terms relating to Holdings, the Borrower and its Subsidiaries not
defined in Section 1.1 and accounting terms partly defined in Section 1.1, to
the extent not defined, shall have the respective meanings given to them under
GAAP.

          (c) The words "hereof", "herein" and "hereunder" and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and Section, Schedule and
Exhibit references are to this Agreement unless otherwise specified.

          (d) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

                  SECTION 2.  AMOUNT AND TERMS OF COMMITMENTS

          2.1  Term Loan Commitments.  Subject to the terms and conditions
hereof, (a) the Tranche A Term Loan Lenders severally agree to make term loans
in Dollars and Sterling (each, a "Tranche A Term Loan") to the Borrower on the
Closing Date in an amount for each Tranche A Term Loan Lender not to exceed the
amount of the Tranche A Term Loan Commitment of such Lender and (b) the Tranche
B Term Loan Lenders severally agree to make term loans in Dollars and Sterling
(each, a "Tranche B Term Loan") to the Borrower and the Canadian Borrower on the
Closing Date in an amount for each Tranche B Term Loan Lender not to exceed the
amount of the Tranche B Term Loan Commitment of such Lender; provided, that the
Canadian Borrower may only borrow up to $5,000,000 under the Tranche B Term Loan
Commitment.  The Term Loans made in Dollars may from time to time be
Eurocurrency Loans or Base Rate Loans and the Term Loans made in Sterling shall
be made and maintained as Eurocurrency Loans, in each case as determined by the
relevant Borrower and notified to the Administrative Agent in accordance with
Sections 2.2 and 2.15.

          2.2  Procedure for Term Loan Borrowing.  The Borrowers shall give the
Administrative Agent irrevocable notice (which notice must be received by the
Administrative Agent (i) prior to 10:00 A.M., New York City time, three Business
Days prior to the anticipated Closing Date, in the case of Eurocurrency Loans
denominated in Dollars, (ii) prior to 10:00 A.M., New York City time, one
Business Day prior to the anticipated Closing Date, in the case of Base Rate
Loans and (iii) prior to 10:00 A.M., London time, three Business Days prior to
the anticipated Closing Date, in the case of Eurocurrency Loans denominated in
Sterling), in each case, requesting that the Term Loan Lenders make the Term
Loans on the Closing Date and specifying the amount and currency to be borrowed.
Upon receipt of such notice the Administrative Agent shall promptly notify each
Term Loan Lender thereof.  Not later than 11:00 A.M., New York time, on the
Closing Date each Term Loan Lender shall make available to the Administrative
Agent at the Funding Office an amount in immediately available funds equal to
the Term Loan or Term Loans to be made by such Lender.  The Administrative Agent
shall make available to the Borrowers the aggregate of the amounts made
available to the Administrative Agent by the Term Loan Lenders, in like funds as
received by the Administrative Agent.
<PAGE>

                                                                              33

          2.3  Repayment of Term Loans.  (a)  The Tranche A Term Loan of each
Tranche A Lender shall mature in 20 consecutive quarterly installments,
commencing on September 30, 2000, each of which shall be in an amount equal to
such Lender's Tranche A Term Loan Percentage multiplied by the percentage set
forth below opposite such installment of the initial aggregate principal amount
of Tranche A Term Loans (ratably between the Tranche A Term Loans made in
Dollars and the Tranche A Term Loans made in Sterling):

           Installment                    Percentage
           -----------                    ----------
           September 30, 2000                1.25%
           December 31, 2000                 1.25%
           March 31, 2001                    1.25%
           June 30, 2001                     1.25%
           September 30, 2001                2.50%
           December 31, 2001                 2.50%
           March 31, 2002                    2.50%
           June 30, 2002                     2.50%
           September 30, 2002                3.75%
           December 31, 2002                 3.75%
           March 31, 2003                    3.75%
           June 30, 2003                     3.75%
           September 30, 2003                5.00%
           December 31, 2003                 5.00%
           March 31, 2004                    5.00%
           June 30, 2004                     5.00%
           September 30, 2004               12.50%
           December 31, 2004                12.50%
           March 31, 2005                   12.50%
           June 30, 2005                    12.50%

          (b)  The Tranche B Term Loan of each Tranche B Lender shall mature in
28 consecutive quarterly installments, commencing on September 30, 2000, each of
which shall be in an amount equal to such Lender's Tranche B Term Loan
Percentage multiplied by the percentage set forth below opposite such
installment of the initial aggregate principal amount of Tranche B Term Loans
(ratably between the Tranche B Term Loans made in Dollars and the Tranche B Term
Loans made in Sterling and ratably between the Tranche B Term Loans made to the
Borrower and the Tranche B Term Loans made to the Canadian Borrower):

           Installment                   Percentage
           -----------                   ----------
           September 30, 2000              0.1875%
           December 31, 2000               0.1875%
           March 31, 2001                  0.1875%
           June 30, 2001                   0.1875%
           September 30, 2001                0.25%
           December 31, 2001                 0.25%
<PAGE>

                                                                              34

           March 31, 2002                    0.25%
           June 30, 2002                     0.25%
           September 30, 2002                0.25%
           December 31, 2002                 0.25%
           March 31, 2003                    0.25%
           June 30, 2003                     0.25%
           September 30, 2003                0.25%
           December 31, 2003                 0.25%
           March 31, 2004                    0.25%
           June 30, 2004                     0.25%
           September 30, 2004              0.3125%
           December 31, 2004               0.3125%
           March 31, 2005                  0.3125%
           June 30, 2005                   0.3125%
           September 30, 2005               11.25%
           December 31, 2005                11.25%
           March 31, 2006                   11.25%
           June 30, 2006                    11.25%
           September 30, 2006               12.50%
           December 31, 2006                12.50%
           March 31, 2007                   12.50%
           June 30, 2007                    12.50%

          2.4  Revolving Credit Commitments.  (a)  Subject to the terms and
conditions hereof, the Revolving Credit Lenders severally agree to make
revolving credit loans ("Revolving Credit Loans") to the Borrower in Dollars and
any Optional Currency from time to time during the Revolving Credit Commitment
Period so long as, after giving effect thereto, (A) the Available Revolving
Credit Commitment of each Revolving Credit Lender would be equal to or greater
than zero, (B) the Total Revolving Extensions of Credit denominated in any
Optional Currency would not exceed the Optional Currency Sublimit and (C) the
Total Revolving Extensions of Credit would not exceed the Borrowing Base.
During the Revolving Credit Commitment Period the Borrower may use the Revolving
Credit Commitments by borrowing, prepaying the Revolving Credit Loans in whole
or in part, and reborrowing, all in accordance with the terms and conditions
hereof; provided, that notwithstanding anything to the contrary contained
herein, with respect to any Revolving Credit Loan denominated in any Optional
Currency, each Lender's Revolving Credit Percentage of the amount of such
Revolving Credit Loan shall be fronted by the Fronting Lender (with each
Revolving Credit Lender hereby agreeing to participate in the risk associated
with such Revolving Credit Loan in accordance with Section 2.6).  The Revolving
Credit Loans made in Dollars may from time to time be Eurocurrency Loans or Base
Rate Loans and the Revolving Credit Loans made in Sterling and Euro shall be
made and maintained as Eurocurrency Loans, in each case, as determined by the
Borrower and notified to the Administrative Agent in accordance with Sections
2.5 and 2.15, provided that no Revolving Credit Loan shall be made as a
Eurocurrency Loan after the day that is one month prior to the Revolving Credit
Termination Date.

          (b)  The Borrower shall repay all outstanding Revolving Credit Loans
on the Revolving Credit Termination Date.
<PAGE>

                                                                              35

          2.5  Procedure for Revolving Credit Borrowing.   The Borrower may
borrow under the Revolving Credit Commitments on any Business Day during the
Revolving Credit Commitment Period, provided that the Borrower shall give the
Administrative Agent irrevocable notice (which notice must be received by the
Administrative Agent (i) prior to 12:00 Noon, New York City time, three Business
Days prior to the requested Borrowing Date, in the case of Eurocurrency Loans
denominated in Dollars, (ii) prior to 12:00 Noon, New York City time, one
Business Day prior to the requested Borrowing Date, in the case of Base Rate
Loans and (iii) prior to 12:00 Noon, London time, three Business Days prior to
the requested Borrowing Date, in the case of Eurocurrency Loans denominated in
Sterling or Euro), specifying (x) the amount, currency and Type of Revolving
Credit Loans to be borrowed, (y) the requested Borrowing Date and (z) in the
case of Eurocurrency Loans, the length of the initial Interest Period therefor.
Each borrowing of Revolving Credit Loans under the Revolving Credit Commitments
shall be in an amount equal to (x) in the case of Base Rate Loans, $500,000 or a
whole multiple thereof (or, if the then aggregate Available Revolving Credit
Commitments are less than $500,000, such lesser amount) and (y) in the case of
Eurocurrency Loans, 1,000,000 units of the relevant currency or a whole multiple
of 500,000 units in excess thereof; provided, that the Swing Line Lender may
request, on behalf of the Borrower, borrowings of Base Rate Loans under the
Revolving Credit Commitments in other amounts pursuant to Section 2.9.  Upon
receipt of any such notice from the Borrower, the Administrative Agent shall
promptly notify each Revolving Credit Lender and the Fronting Lender thereof.
Each Revolving Credit Lender will make its Revolving Credit Percentage of the
amount of each borrowing of Revolving Credit Loans available to the
Administrative Agent for the account of the Borrower at the Funding Office (i)
prior to 12:00 Noon, New York City time, in the case of Loans denominated in
Dollars, and (ii) prior to 12:00 Noon, London time, in the case of Loans
denominated in Sterling or Euro in each case, on the Borrowing Date requested by
the Borrower in funds immediately available to the Administrative Agent;
provided, that, to the extent such Revolving Credit Loan is to be made in any
Optional Currency, the Revolving Credit Lenders shall not be required to so make
available its Revolving Credit Percentage of such Revolving Credit Loan, and, in
reliance on the agreement of each Revolving Credit Lender to participate in the
risk associated with such Revolving Credit Loan in accordance with Section 2.6,
such Revolving Credit Loan will be provided entirely by the Fronting Lender to
the Administrative Agent in the manner described above.  Such borrowing will
then be made available to the Borrower by the Administrative Agent in like funds
as received by the Administrative Agent.

          2.6  Fronting Provisions for Revolving Credit Loans.  As promptly as
practicable following each date upon which the Administrative Agent receives a
payment of interest hereunder on account of a Revolving Credit Loans denominated
in any Optional Currency, the Administrative Agent shall distribute to the
Fronting Lender such amount.  Promptly upon receipt of such amount, the Fronting
Lender shall convert into Dollars (based upon the actual exchange rate then
applicable to the Fronting Lender) the amount equal to the portion of such
interest payment which constitutes the Applicable Margin thereof (or, with
respect to each Revolving Credit Lender which funded the purchase of a
participating interest in such Revolving Credit Loan pursuant to Section 2.7,
such Revolving Credit Lender's applicable Revolving Credit Percentage of the
full amount of such interest payment applicable to the period commencing upon
such funding).  In consideration of the agreement of the Revolving Credit
Lenders to purchase participating interests in the Revolving Credit Loans
denominated in any
<PAGE>

                                                                              36

Optional Currency, the Fronting Lender hereby agrees to pay to the
Administrative Agent, for the ratable accounts of each Revolving Credit Lender,
a risk participation fee in an amount equal to the proceeds received by the
Fronting Lender from such conversion into Dollars; provided, however, that with
respect to each Revolving Credit Lender which has funded the purchase of
participating interests in the Revolving Credit Loans on account of which such
interest was paid pursuant to Section 2.7, the Fronting Lender shall instead pay
to the Administrative Agent, for the account of such Revolving Credit Lender
which has so funded such purchase, the amount equal to such Revolving Credit
Lender's applicable Revolving Credit Percentage of the proceeds received by the
Fronting Lender from such conversion. Such amount shall be payable in Dollars on
the date upon which the Fronting Lender receives the proceeds of such
conversion.

          2.7  Contingent Funding Arrangements.  (a)  Each of the Revolving
Credit Lenders hereby unconditionally and irrevocably agrees to purchase (in
Dollars) an undivided participating interest in its ratable share, determined by
reference to its Revolving Credit Percentage, of all Revolving Credit Loans
denominated in an Optional Currency made by the Fronting Lender as the
Administrative Agent may at any time request, provided that:

          (i) the Administrative Agent and the Fronting Lender hereby agree
     that, unless an Event of Default has occurred and is continuing or a
     Fronting Loan Event has occurred, such Persons will not request any such
     purchase of participating interests; and

          (ii) in the event that any Event of Default specified in Section 8(f)
     shall have occurred with respect to the Borrower, each Lender shall be
     deemed to have purchased, automatically and without request, such
     participating interest in the Revolving Credit Loans denominated in an
     Optional Currency made by the Fronting Lender to the Borrower.

          (b) Any such request shall be made in writing to each Revolving Credit
Lender and shall specify the amount of Dollars (based upon the actual exchange
rate at which the Administrative Agent anticipates being able to obtain the
relevant Optional Currency on the relevant date, with any excess payment being
refunded to the Revolving Credit Lenders and any deficiency remaining payable by
the Revolving Credit Lenders) required from such Revolving Credit Lender in
order to effect the purchase by such Revolving Credit Lender of a participating
interest in the amount equal to its applicable Revolving Credit Percentage times
the aggregate then outstanding principal amount (in the applicable Optional
Currency) of the Revolving Credit Loans denominated in an Optional Currency
which have been fronted by the Fronting Lender.  Promptly upon receipt of such
request, each Revolving Credit Lender shall deliver to the Administrative Agent
(in immediately available funds) the amount so specified by the Administrative
Agent.  The Administrative Agent shall convert such amounts into the relevant
Optional Currency and shall promptly deliver the proceeds of such conversion to
the Fronting Lender in immediately available funds.  Promptly following receipt
thereof, the Fronting Lender will deliver to each Revolving Credit Lender
(through the Administrative Agent) a certificate setting forth the amount of the
Revolving Credit Loans purchased by such Revolving Credit Lender, dated the date
of receipt of such funds and in such amount.

          (c)  From and after such purchase, (i) all outstanding Revolving
Credit Loans (whether denominated in Dollars or the relevant Optional Currency
and including those
<PAGE>

                                                                              37

Revolving Credit Loans advanced by the Fronting Lender) shall be deemed to have
been converted into Base Rate Loans denominated in Dollars (with such conversion
constituting, for purposes of Section 2.23, a conversion of a Revolving Credit
Loan of one Type into a Revolving Credit Loan of another Type prior to the
expiration of the relevant Interest Period), (ii) any further Revolving Credit
Loans to be made to the Borrower shall be made in Dollars by each Revolving
Credit Lender in accordance with each such Revolving Credit Lender's applicable
Revolving Credit Percentage, (iii) all amounts from time to time accruing, and
all amounts from time to time payable, on account of such Revolving Credit Loans
(including any interest and other amounts which were accrued but unpaid on the
date of such purchase) shall be payable in Dollars as if such Revolving Credit
Loans had originally been made in Dollars and shall be distributed by the
Administrative Agent to the Revolving Credit Lenders, on account of such
participating interests.

          (d)  Notwithstanding anything to the contrary contained in this
Section 2.7, the failure of any Revolving Credit Lender to purchase its
participating interest in any Revolving Credit Loans shall not relieve any other
Revolving Credit Lender of its obligations hereunder to purchase its
participating interest in a timely manner, but no Revolving Credit Lender shall
be responsible for the failure of any other Revolving Credit Lender to purchase
the participating interest to be purchased by such other Revolving Credit
Lenders on any date.

          (e)  If any amount required to be paid by any Revolving Credit Lender
pursuant to Section 2.7(a) is not paid to the Administrative Agent within one
Business Day following the date upon which such Revolving Credit Lender receives
a request from the Administrative Agent that such Revolving Credit Lender fund
its participating interest relating to such Revolving Credit Loan, such
Revolving Credit Lender shall pay to the Administrative Agent on demand an
amount equal to the product of (i) such amount, times (ii) the daily average
Federal Funds Effective Rate, as quoted by the Administrative Agent, during the
period from and including the date such payment is required to be made to the
date on which such payment is immediately available to the Administrative Agent,
times (iii) a fraction the numerator of which is the number of days that elapse
during such period and the denominator of which is 360.  If any such amount
required to be paid by any Revolving Credit Lender pursuant to Section 2.7(a) is
not in fact made available to the Administrative Agent within three Business
Days following the date upon which such Revolving Credit Lender receives a
request from the Administrative Agent that such Revolving Credit Lender fund its
participating interest relating to such Revolving Credit Loan, the
Administrative Agent shall be entitled to recover from the Borrower, on demand,
such amount with interest thereon calculated from such due date at the rate per
annum applicable to Revolving Credit Loans which are Base Rate Loans.  A
certificate from the Administrative Agent submitted to any Revolving Credit
Lender with respect to any amounts owing under this Section 2.7(e) shall be
conclusive in the absence of manifest error.  Amounts payable by any Revolving
Credit Lender pursuant to this Section 2.7(e) shall be paid to the
Administrative Agent, for the account of the Fronting Lender; provided that, if
the Administrative Agent (in its sole discretion) has elected to fund on behalf
of such Revolving Credit Lender the amounts owing to the Fronting Lender, then
the amounts shall be paid to the Administrative Agent, for its own account.

          (f)  Whenever, at any time after the Fronting Lender has received from
any Revolving Credit Lender such Revolving Credit Lender's participating
interest in a Revolving
<PAGE>

                                                                              38

Credit Loan pursuant to Section 2.7(e) above, the Fronting Lender receives any
payment on account thereof, such Fronting Lender will distribute to the
Administrative Agent, for the account of such Revolving Credit Lender, such
Revolving Credit Lender's participating interest in such amount (appropriately
adjusted, in the case of interest payments, to reflect the period of time during
which such Revolving Credit Lender's participating interest was outstanding and
funded) in like funds received; provided, however, that in the event that any
such payment received by the Fronting Lender is required to be returned, such
Revolving Credit Lender will return to the Fronting Lender any portion thereof
previously distributed by the Fronting Lender to the Revolving Credit Lender in
like funds as such payment is required to be returned by the Fronting Lender.

          (g)  Each Revolving Credit Lender's obligation to purchase
participating interests pursuant to this Section 2.7 shall be absolute and
unconditional and shall not be affected by any circumstance, including (i) any
set-off, counterclaim, recoupment, defense or other right which such Revolving
Credit Lender may have against the Fronting Lender, the Borrower or any other
Person for any reason whatsoever; (ii) the occurrence and continuation of any
Default or Event of Default; (iii) any adverse change in the condition
(financial or otherwise) of any Person party hereto; (iv) any breach of any of
the Loan Documents by any Person; or (v) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing.

          (h)  The Fronting Lender may resign at any time by giving sixty days'
prior written notice thereof to the Revolving Credit Lenders and the Borrower.
Upon any such resignation, the Majority Facility Lenders in respect of the
Revolving Credit Facility shall have the right to appoint a successor Fronting
Lender.  Unless a Default or Event of Default shall have occurred and be
continuing, such successor Fronting Lender shall be reasonably acceptable to the
Borrower.  If no successor Fronting Lender shall have been so appointed by the
Majority Facility Lenders in respect of the Revolving Credit Facility and shall
have accepted such appointment within thirty days after the retiring Fronting
Lender's giving of notice of resignation, then the retiring Fronting Lender may,
on behalf of the Revolving Credit Lenders, appoint a successor Fronting Lender,
which shall be a financial institution having a rating of not less than A or its
equivalent by Standard & Poor's Ratings Group.  Upon the acceptance of any
appointment as Fronting Lender hereunder by a successor Fronting Lender, such
successor Fronting Lender shall thereupon succeed to and become vested with all
the rights, powers, privileges and duties of the retiring Fronting Lender, and
the retiring Fronting Lender shall be discharged from its duties and obligations
hereunder.  After any retiring Fronting Lender's resignation, the provisions of
this 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 Fronting Lender.

          2.8  Swing Line Commitment.  (a)  Subject to the terms and conditions
hereof, the Swing Line Lender agrees that, during the Revolving Credit
Commitment Period, it will make available to the Borrower in the form of swing
line loans in Dollars ("Swing Line Loans") a portion of the credit otherwise
available to the Borrower under the Revolving Credit Commitments; provided that
(i) the aggregate principal amount of Swing Line Loans outstanding at any time
shall not exceed the Swing Line Commitment then in effect (notwithstanding that
the Swing Line Loans outstanding at any time, when aggregated with the Swing
Line Lender's other outstanding Revolving Credit Loans hereunder, may exceed the
Swing Line Commitment then in effect or such Swing Line Lender's Revolving
Credit Commitment then in effect), (ii) the
<PAGE>

                                                                              39

Borrower shall not request, and the Swing Line Lender shall not make, any Swing
Line Loan if, after giving effect to the making of such Swing Line Loan, the
aggregate amount of the Available Revolving Credit Commitments would be less
than zero and (iii) the Borrower shall not request, and the Swing Line Lender
shall not make, any Swing Line Loan if, after giving effect to the making of
such Swing Line Loan, the Total Revolving Extensions of Credit would exceed the
Borrowing Base. During the Revolving Credit Commitment Period, the Borrower may
use the Swing Line Commitment by borrowing, repaying and reborrowing, all in
accordance with the terms and conditions hereof. Swing Line Loans shall be Base
Rate Loans only.

          (b)  The Borrower shall repay all outstanding Swing Line Loans on the
Revolving Credit Termination Date.

          2.9  Procedure for Swing Line Borrowing; Refunding of Swing Line
Loans.  (a)  The Borrower may borrow under the Swing Line Commitment on any
Business Day during the Revolving Credit Commitment Period, provided, the
Borrower shall give the Swing Line Lender irrevocable telephonic notice
confirmed promptly in writing (which telephonic notice must be received by the
Swing Line Lender not later than 11:00 A.M., New York City time, on the proposed
Borrowing Date), specifying (i) the amount to be borrowed and (ii) the requested
Borrowing Date.  Each borrowing under the Swing Line Commitment shall be in an
amount equal to $250,000 or a whole multiple of $100,000 in excess thereof.  Not
later than the close of business in New York City on the Borrowing Date
specified in the borrowing notice in respect of any Swing Line Loan, the Swing
Line Lender shall make available to the Administrative Agent at the Funding
Office an amount in immediately available funds equal to the amount of such
Swing Line Loan.  The Administrative Agent shall make the proceeds of such Swing
Line Loan available to the Borrower on such Borrowing Date in like funds as
received by the Administrative Agent.

          (b)  The Swing Line Lender, at any time and from time to time in its
sole and absolute discretion may, on behalf of the Borrower (which hereby
irrevocably directs the Swing Line Lender to act on its behalf), on one Business
Day's notice given by the Swing Line Lender no later than 12:00 Noon, New York
City time, request each Revolving Credit Lender to make, and each Revolving
Credit Lender hereby agrees to make, a Revolving Credit Loan in Dollars, in an
amount equal to such Revolving Credit Lender's Revolving Credit Percentage of
the aggregate amount of the Swing Line Loans (the "Refunded Swing Line Loans")
outstanding on the date of such notice, to repay the Swing Line Lender.  Each
Revolving Credit Lender shall make the amount of such Revolving Credit Loan
available to the Administrative Agent at the Funding Office in immediately
available funds, not later than 10:00 A.M., New York City time, one Business Day
after the date of such notice.  The proceeds of such Revolving Credit Loans
shall be made immediately available by the Administrative Agent to the Swing
Line Lender for application by the Swing Line Lender to the repayment of the
Refunded Swing Line Loans.

          (c)  If prior to the time a Revolving Credit Loan would have otherwise
been made pursuant to Section 2.9(b), one of the events described in Section
8(f) shall have occurred and be continuing with respect to the Borrower, or if
for any other reason, as determined by the Swing Line Lender in its sole
discretion, Revolving Credit Loans may not be made as contemplated by Section
2.9(b), each Revolving Credit Lender shall, on the date such Revolving Credit
Loan was to have been made pursuant to the notice referred to in Section 2.9(b)
(the "Refunding Date"),
<PAGE>

                                                                              40

purchase for cash an undivided participating interest in the then outstanding
Swing Line Loans by paying to the Swing Line Lender an amount (the "Swing Line
Participation Amount") equal to (i) such Revolving Credit Lender's Revolving
Credit Percentage times (ii) the sum of the aggregate principal amount of Swing
Line Loans then outstanding which were to have been repaid with such Revolving
Credit Loans.

          (d)  Whenever, at any time after the Swing Line Lender has received
from any Revolving Credit Lender such Lender's Swing Line Participation Amount,
the Swing Line Lender receives any payment on account of the Swing Line Loans,
the Swing Line Lender will distribute to such Lender its Swing Line
Participation Amount (appropriately adjusted, in the case of interest payments,
to reflect the period of time during which such Lender's participating interest
was outstanding and funded and, in the case of principal and interest payments,
to reflect such Lender's pro rata portion of such payment if such payment is not
sufficient to pay the principal of and interest on all Swing Line Loans then
due); provided, however, that in the event that such payment received by the
Swing Line Lender is required to be returned, such Revolving Credit Lender will
return to the Swing Line Lender any portion thereof previously distributed to it
by the Swing Line Lender.

          (e)  Each Revolving Credit Lender's obligation to make the Loans
referred to in Section 2.9(b) and to purchase participating interests pursuant
to Section 2.9(c) shall be absolute and unconditional and shall not be affected
by any circumstance, including, without limitation, (i) any setoff,
counterclaim, recoupment, defense or other right which such Revolving Credit
Lender or the Borrower may have against the Swing Line Lender, the Borrower or
any other Person for any reason whatsoever; (ii) the occurrence or continuance
of a Default or an Event of Default or the failure to satisfy any of the other
conditions specified in Section 5; (iii) any adverse change in the condition
(financial or otherwise) of the Borrower; (iv) any breach of this Agreement or
any other Loan Document by the Borrower, any other Loan Party or any other
Revolving Credit Lender; or (v) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing.

          2.10  Repayment of Loans; Evidence of Debt.  (a)  Each Borrower (or,
in the case of clauses (ii) and (iii) below, the Borrower) hereby
unconditionally promises to pay to the Administrative Agent for the account of
the appropriate Revolving Credit Lender or Term Loan Lender, as the case may be,
(i) the then unpaid principal amount of each Revolving Credit Loan of such
Revolving Credit Lender, on the Revolving Credit Termination Date (or on such
earlier date on which the Loans become due and payable pursuant to Section 8),
(ii) the then unpaid principal amount of each Swing Line Loan of such Swing Line
Lender on the Revolving Credit Termination Date (or on such earlier date on
which the Loans become due and payable pursuant to Section 8) and (iii) the
principal amount of each Term Loan of such Term Loan Lender made to such
Borrower, in installments according to the amortization schedule set forth in
Section 2.3 (or on such earlier date on which the Loans become due and payable
pursuant to Section 8).  Each Borrower hereby further agrees to pay interest on
the unpaid principal amount of the Loans made to it from time to time
outstanding from the date hereof until payment in full thereof at the rates per
annum, and on the dates, set forth in Section 2.17.  Except as otherwise
provided herein, the principal amount of each Loan (and any interest thereon)
shall be repayable in the currency in which such Loan was made.
<PAGE>

                                                                              41

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

          (c)  The Administrative Agent, on behalf of the Borrowers, shall
maintain the Register pursuant to Section 10.6(e), and a subaccount therein for
each Lender, in which shall be recorded (i) the amount and currency of each Loan
made hereunder and any Note evidencing such Loan, the Type of such Loan and each
Interest Period applicable thereto, (ii) the amount of any principal or interest
due and payable or to become due and payable from the relevant Borrower to each
Lender hereunder and (iii) both the amount of any sum received by the
Administrative Agent hereunder from the relevant Borrower and each Lender's
share thereof.

          (d)  The entries made in the Register and the accounts of each Lender
maintained pursuant to Section 2.10(b) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of the Borrowers therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such account, or any error therein, shall not in any manner affect the
obligation of the Borrowers to repay (with applicable interest) the Loans made
to the Borrowers by such Lender in accordance with the terms of this Agreement.

          (e)  The Borrowers agree that, upon the request to the Administrative
Agent by any Lender, the relevant Borrower will execute and deliver to such
Lender a promissory note of such Borrower evidencing any Term Loans, Revolving
Credit Loans or Swing Line Loans, as the case may be, of such Lender,
substantially in the forms of Exhibit G-1, G-2 or G-3, respectively, with
appropriate insertions as to date and principal amount.

          2.11  Commitment Fees, Fronting Fees, etc.  (a)  The Borrower agrees
to pay to the Administrative Agent for the account of each Revolving Credit
Lender a commitment fee for the period from and including the Closing Date to
the last day of the Revolving Credit Commitment Period, computed at the
Commitment Fee Rate on the average daily amount of the Available Revolving
Credit Commitment of such Lender during the period for which payment is made,
payable quarterly in arrears on the last day of each March, June, September and
December and on the Revolving Credit Termination Date, commencing on the first
of such dates to occur after the date hereof.

          (b)  The Borrower agrees to pay to the Fronting Lender for the account
of the Fronting Lender a fronting fee (the "Fronting Fee") calculated at the
rate of 1/8 of 1% per annum on the average principal amount of Fronted Loans
outstanding (including amounts requested) during each calendar quarter or
portion thereof from the Closing Date to the date of repayment of such Fronted
Loans.  The Fronting Fee shall be payable in arrears on each Interest Payment
Date pertaining to such Fronted Loans for the immediately preceding Interest
Period.

          (c)  The Borrower agrees to pay to the Syndication Agent the fees in
the amounts and on the dates previously agreed to in writing by the Borrower (or
any of its affiliates) and the Syndication Agent.
<PAGE>

                                                                              42

          (d)  The Borrower agrees to pay to the Administrative Agent the fees
in the amounts and on the dates from time to time agreed to in writing by the
Borrower (or any of its affiliates) and the Administrative Agent.

          2.12  Termination or Reduction of Revolving Credit Commitments.  The
Borrower shall have the right, upon not less than three Business Days' notice to
the Administrative Agent, to terminate the Revolving Credit Commitments or, from
time to time, to reduce the aggregate amount of the Revolving Credit
Commitments; provided that no such termination or reduction of Revolving Credit
Commitments shall be permitted if, after giving effect thereto and to any
prepayments of the Revolving Credit Loans and Swing Line Loans made on the
effective date thereof, the Total Revolving Extensions of Credit would exceed
the Total Revolving Credit Commitments.  Any such reduction shall be in an
amount equal to $1,000,000, or a whole multiple thereof, and shall reduce
permanently the Revolving Credit Commitments then in effect.

          2.13  Optional Prepayments.  (a) The Borrowers may at any time and
from time to time prepay the Loans, in whole or in part, without premium or
penalty (except as otherwise provided herein), upon irrevocable notice delivered
to the Administrative Agent at least three Business Days prior thereto in the
case of Eurocurrency Loans and at least one Business Day prior thereto in the
case of Base Rate Loans, which notice shall specify the date and amount of
prepayment and whether the prepayment is of Eurocurrency Loans or Base Rate
Loans; provided, that (i) if a Eurocurrency Loan is prepaid on any day other
than the last day of the Interest Period applicable thereto, the Borrower shall
also pay any amounts owing pursuant to Section 2.23 and (ii) no prior notice is
required for the prepayment of Swing Line Loans.  Upon receipt of any such
notice the Administrative Agent shall promptly notify each relevant Lender
thereof.  If any such notice is given, the amount specified in such notice shall
be due and payable on the date specified therein, together with (except in the
case of Revolving Credit Loans that are Base Rate Loans and Swing Line Loans)
accrued interest to such date on the amount prepaid.  Partial prepayments of
Term Loans and Revolving Credit Loans shall be in an aggregate principal amount
of  500,000 units of the relevant currency or a whole multiple thereof.  Partial
prepayments of Swing Line Loans shall be in an aggregate principal amount of
$100,000 or a whole multiple thereof.

          2.14  Mandatory Prepayments and Commitment Reductions.  (a)  If any
Capital Stock (other than Capital Stock issued to (i) any Permitted Investor or
other shareholder of Holdings which was a shareholder on the Closing Date, (ii)
employees of Holdings or any of its Subsidiaries within seven months following
the Closing Date for an aggregate amount of Net Cash Proceeds not to exceed
$650,000 or (iii) any employee or director of Holdings or any Subsidiary
pursuant to any stock option plan approved by the Board of Directors of Holdings
in the ordinary course of business and consistent with past practices for an
aggregate amount of Net Cash Proceeds not to exceed $500,000 during any
consecutive 12-month period) shall be issued, or Indebtedness (excluding any
Indebtedness incurred in accordance with Section 7.2) incurred, by Holdings or
any of its Subsidiaries, on the date of such issuance or incurrence, the Term
Loans shall be prepaid by an amount equal to the amount of such Net Cash
Proceeds, as set forth in Section 2.14(e).
<PAGE>

                                                                              43

          (b)  If on any date Holdings or any of its Subsidiaries shall receive
Net Cash Proceeds from any Asset Sale, Purchase Price Refund or Recovery Event
then, unless a Reinvestment Notice shall be delivered in respect thereof, on
such date the Term Loans shall be prepaid by an amount equal to the amount of
such Net Cash Proceeds, as set forth in Section 2.14(e); provided, that,
notwithstanding the foregoing, on each Reinvestment Prepayment Date the Term
Loans shall be prepaid by an amount equal to the Reinvestment Prepayment Amount
with respect to the relevant Reinvestment Event, as set forth in Section
2.14(e).

          (c)  If, for any fiscal year of Holdings commencing with the fiscal
year ending March 31, 2001, there shall be Excess Cash Flow, on the relevant
Excess Cash Flow Application Date, the Term Loans shall be prepaid by an amount
equal to the ECF Percentage of such Excess Cash Flow,  as set forth in Section
2.14(e).  Each such prepayment and commitment reduction shall be made on a date
(an "Excess Cash Flow Application Date") no later than five days after the
earlier of (i) the date on which the financial statements of Holdings referred
to in Section 6.1(a), for the fiscal year with respect to which such prepayment
is made, are required to be delivered to the Lenders and (ii) the date such
financial statements are actually delivered.

          (d)  If, other than as a result of the circumstances described in
Section 2.27, the Total Revolving Extensions of Credit shall at any time exceed
the lesser of (i) the Total Revolving Credit Commitments then in effect and (ii)
the Borrowing Base then in effect, the Borrower shall immediately repay
outstanding Revolving Extensions of Credit by at least the amount equal to such
excess, as set forth in Section 2.14(e), with any such repayment being applied,
first, to repay any then outstanding Swing Line Loans, second, to repay any then
outstanding Revolving Credit Loans and, third, to cash collateralize the L/C
Obligations in a manner reasonably satisfactory to the Administrative Agent.

          (e)  The application of any prepayment of Loans under any Facility
pursuant to this Section shall be made, first, to Base Rate Loans under such
Facility and, second, to Eurocurrency Loans under such Facility.  Each
prepayment of the Loans under this Section shall be accompanied by accrued
interest to the date of such prepayment on the amount prepaid.

          (f)  Notwithstanding anything contained in this Agreement, in no event
shall the aggregate of (x) the mandatory prepayments with respect to the Loans
made to the Canadian Borrower made on or before the fifth anniversary of the
Closing Date (the "Fifth Anniversary") pursuant to this Section 2.14 and (y) the
scheduled repayments with respect to such Loans made on or before the Fifth
Anniversary pursuant to Section 2.3(b) exceed 25% of the principal amount of
such Loans made on the Closing Date (the "Threshold Amount").  Any amount
otherwise required to be paid in respect of such Loans pursuant to Sections
2.3(b) and 2.14 in excess of the Threshold Amount (the "Excess Amount") shall
not be required to be paid under such Sections at the times prescribed therein.
The Excess Amount will instead be paid on the First Business Day after the Fifth
Anniversary or upon an Event of Default pursuant to Section 8.

          2.15  Conversion and Continuation Options. (a)  The Borrowers may
elect from time to time to convert Eurocurrency Loans denominated in Dollars to
Base Rate Loans by giving the Administrative Agent at least two Business Days'
prior irrevocable notice of such election, provided that any such conversion of
Eurocurrency Loans may be made only on the last day of an Interest Period with
respect thereto.  The Borrowers may elect from time to time to
<PAGE>

                                                                              44

convert Base Rate Loans to Eurocurrency Loans denominated in Dollars by giving
the Administrative Agent at least three Business Days' prior irrevocable notice
of such election (which notice shall specify the length of the initial Interest
Period therefor), provided that no Base Rate Loan under a particular Facility
may be converted into a Eurocurrency Loan (i) when any Event of Default has
occurred and is continuing and the Administrative Agent has, or the Majority
Facility Lenders in respect of such Facility have, determined in its or their
sole discretion not to permit such conversions or (ii) after the date that is
one month prior to the final scheduled termination or maturity date of such
Facility. Upon receipt of any such notice the Administrative Agent shall
promptly notify each relevant Lender thereof.

          (b)  The Borrowers may elect to continue any Eurocurrency Loan as such
upon the expiration of the then current Interest Period with respect thereto by
giving irrevocable notice to the Administrative Agent, in accordance with the
applicable provisions of the term "Interest Period" set forth in Section 1.1, of
the length of the next Interest Period to be applicable to such Loans, provided
that no Eurocurrency Loan under a particular Facility may be continued as such
(i) when any Event of Default has occurred and is continuing and the
Administrative Agent has, or the Majority Facility Lenders in respect of such
Facility have, determined in its or their sole discretion not to permit such
continuations or (ii) after the date that is one month prior to the final
scheduled termination or maturity date of such Facility, and provided, further,
that if the Borrowers shall fail to give any required notice as described above
in this paragraph or if such continuation is not permitted pursuant to the
preceding proviso, any such Eurocurrency Loans denominated in Dollars shall be
automatically converted to Base Rate Loans on the last day of such then expiring
Interest Period and any such Eurocurrency Loans denominated in any Optional
Currency shall be automatically continued as Eurocurrency Loans on the last day
of such then expiring Interest Period with a new Interest Period of one month.
Upon receipt of any such notice the Administrative Agent shall promptly notify
each relevant Lender thereof.

          2.16  Minimum Amounts and Maximum Number of Eurocurrency Tranches.
Notwithstanding anything to the contrary in this Agreement, all borrowings,
conversions, continuations and optional prepayments of Eurocurrency Loans and
all selections of Interest Periods shall be in such amounts and be made pursuant
to such elections so that, (a) after giving effect thereto, the aggregate
principal amount of the Eurocurrency Loans comprising each Eurocurrency Tranche
shall be equal to approximately the Dollar Equivalent of $5,000,000 or a whole
multiple of approximately the Dollar Equivalent of $1,000,000 in excess thereof
and (b) no more than ten Eurocurrency Tranches shall be outstanding at any one
time.

          2.17  Interest Rates and Payment Dates.  (a)  Each Eurocurrency Loan
shall bear interest for each day during each Interest Period with respect
thereto at a rate per annum equal to the Eurocurrency Rate determined for such
day plus the Applicable Margin.

          (b)  Each Base Rate Loan shall bear interest at a rate per annum equal
to the Base Rate plus the Applicable Margin.

          (c) (i) If all or a portion of the principal amount of any Loan or
Reimbursement Obligation shall not be paid when due (whether at the stated
maturity, by acceleration or otherwise) or if at any time any other Event of
Default shall have occurred and be continuing, all outstanding Loans and
Reimbursement Obligations (whether or not overdue) shall bear interest at
<PAGE>

                                                                              45

a rate per annum that is equal to (x) in the case of the Loans, the rate that
would otherwise be applicable thereto pursuant to the foregoing provisions of
this Section plus 2% or (y) in the case of Reimbursement Obligations denominated
in Dollars, the rate applicable to Base Rate Loans under the Revolving Credit
Facility plus 2% and in the case of Reimbursement Obligations denominated in
Sterling or Euro, the rate applicable to Eurocurrency Loans under the Revolving
Credit Facility plus 2%, and (ii) if all or a portion of any interest payable on
any Loan or Reimbursement Obligation or any commitment fee or other amount
payable hereunder shall not be paid when due (whether at the stated maturity, by
acceleration or otherwise), such overdue amount shall bear interest at a rate
per annum equal to the rate then applicable to Base Rate Loans, in the case of
amounts due in Dollars, and Eurocurrency Loans, in the case of amounts due in
Sterling or Euro, in each case, under the relevant Facility plus 2% (or, in the
case of any such other amounts that do not relate to a particular Facility, the
rate then applicable to Base Rate Loans, in the case of amounts due in Dollars,
and Eurocurrency Loans, in the case of amounts due in Sterling or Euro, in each
case, under the Revolving Credit Facility plus 2%), in each case, with respect
to clauses (i) and (ii) above, from the date of such non-payment until such
amount is paid in full (after as well as before judgment).

          (d)  Interest shall be payable in arrears on each Interest Payment
Date, provided that interest accruing pursuant to paragraph (c) of this Section
shall be payable from time to time on demand.

          2.18  Computation of Interest and Fees.  (a)  Interest, fees,
commissions payable pursuant hereto shall be calculated on the basis of a 360-
day year for the actual days elapsed, except that, (i) with respect to Base Rate
Loans on which interest is calculated on the basis of the Base Reference Rate,
the interest thereon shall be calculated on the basis of a 365- (or 366-, as the
case may be) day year for the actual days elapsed and (ii) with respect to Loans
denominated in Sterling, the interest rate thereon shall be calculated on the
basis of a 365-day year for the actual days elapsed.  The Administrative Agent
shall as soon as practicable notify the Borrower and the relevant Lenders of
each determination of a Eurocurrency Rate.  Any change in the interest rate on a
Loan resulting from a change in the Base Rate or the Eurocurrency Reserve
Requirements shall become effective as of the opening of business on the day on
which such change becomes effective.  The Administrative Agent shall as soon as
practicable notify the relevant Borrower and the relevant Lenders of the
effective date and the amount of each such change in interest rate.

          (b)  Each determination of an interest rate by the Administrative
Agent pursuant to any provision of this Agreement shall be conclusive and
binding on the Borrowers and the Lenders in the absence of manifest error.  The
Administrative Agent shall, at the request of the Borrower, deliver to the
Borrower a statement showing the quotations used by the Administrative Agent in
determining any interest rate pursuant to Section 2.17(a).

          (c)  For the purposes of the Interest Act (Canada), whenever any
interest, fee or commission payable under this Agreement is calculated using a
rate based on a year of 360 days or 365 days, as the case may be, the rate
determined pursuant to such calculation, when expressed as an annual rate, is
equivalent to (x) the applicable rate based on a year of 360 days or 365 days,
as the case may be, (y) multiplied by the actual number of days in the calendar
year in which the period for which such interest or fee is payable (or
compounded) ends, and (z) divided
<PAGE>

                                                                              46

by 360 or 365, as the case may be, the principle of deemed reinvestment of
interest does not apply to any interest calculation under this Agreement, and
the rates of interest stipulated in this Agreement are intended to be nominal
rates and not effective rates or yields.

          2.19  Inability to Determine Interest Rate.  If prior to the first day
of any Interest Period:

          (a)  the Administrative Agent shall have determined (which
determination shall be conclusive and binding upon the Borrowers) that, by
reason of circumstances affecting the relevant market, adequate and reasonable
means do not exist for ascertaining the Eurocurrency Rate with respect to the
currency in which a Loan or a requested Loan is denominated (the "Affected
Currency") for such Interest Period, or

          (b)  the Administrative Agent shall have received notice from the
Majority Facility Lenders in respect of the relevant Facility that the
Eurocurrency Rate determined or to be determined with respect to the Affected
Currency for such Interest Period will not adequately and fairly reflect the
cost to such Lenders (as conclusively certified by such Lenders) of making or
maintaining their affected Loans during such Interest Period,

the Administrative Agent shall give telecopy or telephonic notice thereof to the
Borrower and the relevant Lenders as soon as practicable thereafter.  If such
notice is given (w) any Eurocurrency Loans under the relevant Facility requested
to be made on the first day of such Interest Period shall be made as Base Rate
Loans in Dollars, (x) any Loans under the relevant Facility denominated in
Dollars that were to have been converted on the first day of such Interest
Period to Eurocurrency Loans shall be continued as Base Rate Loans, (y) any
outstanding Eurocurrency Loans under the relevant Facility denominated in
Dollars shall be converted, on the last day of the then current Interest Period
with respect thereto, to Base Rate Loans and (z) any outstanding Eurocurrency
Loans under the relevant Facility denominated in any Optional Currency shall be
repaid on the first day of such Interest Period.  Until such notice has been
withdrawn by the Administrative Agent, no further Eurocurrency Loans under the
relevant Facility shall be made or continued as such, nor shall the Borrower
have the right to convert Loans under the relevant Facility to Eurocurrency
Loans.

          2.20  Pro Rata Treatment and Payments.  (a)  Each borrowing by the
Borrowers from the Lenders hereunder, each payment by the Borrowers on account
of any commitment fee or Letter of Credit Fee, and any reduction of the
Commitments of the Lenders, shall be made pro rata according to the respective
Tranche A Term Loan Percentages, Tranche B Term Loan Percentages or Revolving
Credit Percentages, as the case may be, of the relevant Lenders.  Each payment
(other than prepayments) in respect of principal or interest in respect of the
Term Loans and each payment in respect of fees payable hereunder shall be
applied to the amounts of such obligations owing to the Lenders pro rata
according to the respective amounts then due and owing to the Lenders.

          (b)  Each mandatory prepayment required by Section 2.14 to be applied
to Term Loans shall be allocated among the Term Loan Facilities pro rata
according to the respective outstanding principal amounts of Term Loans under
such Facilities.  Subject to Section 2.14(f), each mandatory prepayment to be
applied to the Tranche B Term Loans shall be allocated among
<PAGE>

                                                                              47

the Tranche B Term Loans outstanding to the Borrower and the Tranche B Term
Loans outstanding to the Canadian Borrower pro rata according to the respective
outstanding principal amounts of such Tranche B Term Loans. Each optional
prepayment in respect of the Term Loans shall be allocated among the Term Loan
Facilities pro rata according to the respective outstanding principal amounts of
Term Loans under such Facilities. Each payment (including each prepayment) of
the Term Loans outstanding under any Term Loan Facility shall be allocated among
the Term Loan Lenders holding such Term Loans pro rata based on the principal
amount of such Term Loans held by such Term Loan Lenders, and shall be applied
to the installments of such Term Loans pro rata based on the remaining
outstanding principal amount of such installments. Amounts prepaid on account of
the Term Loans may not be reborrowed.

          (c)  Each payment (including each prepayment) by the Borrower on
account of principal of and interest on the Revolving Credit Loans shall be made
pro rata according to the respective outstanding principal amounts of the
Revolving Credit Loans then held by the Revolving Credit Lenders. Each payment
in respect of Reimbursement Obligations in respect of any Letter of Credit shall
be made to the Issuing Lender.

          (d)  All payments (including prepayments) to be made by the Borrowers
hereunder, whether on account of principal, interest, fees or otherwise, shall
be made without setoff or counterclaim and shall be made prior to 12:00 Noon,
New York City time, in the case of payments made in Dollars, and 12:00 Noon,
London time, in the case of payments made in Sterling and Euro, in each case, on
the due date thereof to the Administrative Agent, for the account of the
relevant Lenders, at the Payment Office, in immediately available funds.  Any
payment made by the Borrowers after 12:00 Noon, local time, on any Business Day
shall be deemed to have been made on the next following Business Day. The
Administrative Agent shall distribute such payments to the relevant Lenders
promptly upon receipt in like funds as received.  If any payment hereunder
(other than payments on the Eurocurrency Loans) becomes due and payable on a day
other than a Business Day, such payment shall be extended to the next succeeding
Business Day.  If any payment on a Eurocurrency Loan becomes due and payable on
a day other than a Business Day, the maturity thereof shall be extended to the
next succeeding Business Day unless the result of such extension would be to
extend such payment into another calendar month, in which event such payment
shall be made on the immediately preceding Business Day.  In the case of any
extension of any payment of principal pursuant to the preceding two sentences,
interest thereon shall be payable at the then applicable rate during such
extension.

          (e)  Unless the Administrative Agent shall have been notified in
writing by any Lender prior to a borrowing that such Lender will not make the
amount that would constitute its share of such borrowing available to the
Administrative Agent, the Administrative Agent may assume that such Lender is
making such amount available to the Administrative Agent, and the Administrative
Agent may, in reliance upon such assumption, make available to the relevant
Borrower a corresponding amount.  If such amount is not made available to the
Administrative Agent by the required time on the Borrowing Date therefor, such
Lender shall pay to the Administrative Agent, on demand, such amount with
interest thereon at a rate equal to (i) the daily average Federal Funds
Effective Rate, in the case of Loans denominated in Dollars, and (ii) the
Administrative Agent's reasonable estimate of its average daily cost of funds,
in the case of
<PAGE>

                                                                              48

Loans denominated in any Optional Currency, in each case, for the period until
such Lender makes such amount immediately available to the Administrative Agent.
A certificate of the Administrative Agent submitted to any Lender with respect
to any amounts owing under this paragraph shall be conclusive in the absence of
manifest error. If such Lender's share of such borrowing is not made available
to the Administrative Agent by such Lender within three Business Days after such
Borrowing Date, the Administrative Agent shall also be entitled to recover on
demand from the relevant Borrower such amount with interest thereon at (i) the
rate per annum applicable to Base Rate Loans under the relevant Facility, in the
case of Loans denominated in Dollars, or (ii) the Administrative Agent's
reasonable estimate of its average daily cost of funds plus the Applicable
Margin applicable to Eurocurrency Loans under the Revolving Credit Facility, in
the case of Loans denominated in Sterling or Euro.

          (f)  Unless the Administrative Agent shall have been notified in
writing by a Borrower prior to the date of any payment due to be made by such
Borrower hereunder that such Borrower will not make such payment to the
Administrative Agent, the Administrative Agent may assume that such Borrower is
making such payment, and the Administrative Agent may, but shall not be required
to, in reliance upon such assumption, make available to the Lenders their
respective pro rata shares of a corresponding amount.  If such payment is not
made to the Administrative Agent by such Borrower within three Business Days
after such due date, the Administrative Agent shall be entitled to recover, on
demand, from each Lender to which any amount which was made available pursuant
to the preceding sentence, such amount with interest thereon at the rate per
annum equal to (i) the daily average Federal Funds Effective Rate, in the case
of Loans denominated in Dollars, and (ii) the Administrative Agent's reasonable
estimate of its average daily cost of funds, in the case of Loans denominated in
any Optional Currency.  Nothing herein shall be deemed to limit the rights of
the Administrative Agent or any Lender against either Borrower.

          2.21  Requirements of Law.  (a)  If the adoption of or any change in
any Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

               (i)  shall subject any Lender to any tax of any kind whatsoever
     with respect to this Agreement, any Letter of Credit, any Letter of Credit
     Application or any Eurocurrency Loan made by it, or change the basis of
     taxation of payments to such Lender in respect thereof (except for Non-
     Excluded Taxes covered by Section 2.22 and changes in the rate of tax on
     the overall net income of such Lender);

               (ii)  shall impose, modify or hold applicable any reserve,
     special deposit, compulsory loan or similar requirement against assets held
     by, deposits or other liabilities in or for the account of, advances, loans
     or other extensions of credit by, or any other acquisition of funds by, any
     office of such Lender that is not otherwise included in the determination
     of the Eurocurrency Rate hereunder; or

               (iii)  shall impose on such Lender any other condition;
<PAGE>

                                                                              49

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining Eurocurrency Loans or issuing or participating in
Letters of Credit, or to reduce any amount receivable hereunder in respect
thereof, then, in any such case, the relevant Borrower shall promptly pay such
Lender, upon its demand, any additional amounts necessary to compensate such
Lender for such increased cost or reduced amount receivable.  If any Lender
becomes entitled to claim any additional amounts pursuant to this Section, it
shall promptly notify the relevant Borrower (with a copy to the Administrative
Agent) of the event by reason of which it has become so entitled.

          (b)  If any Lender shall have determined that the adoption of or any
change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender's or such corporation's capital as a
consequence of its obligations hereunder or under or in respect of any Letter of
Credit to a level below that which such Lender or such corporation could have
achieved but for such adoption, change or compliance (taking into consideration
such Lender's or such corporation's policies with respect to capital adequacy)
by an amount deemed by such Lender to be material, then from time to time, after
submission by such Lender to the Borrowers (with a copy to the Administrative
Agent) of a written request therefor, the Borrowers shall pay to such Lender
such additional amount or amounts as will compensate such Lender or such
corporation for such reduction.

          (c)  A certificate as to any additional amounts payable pursuant to
this Section submitted by any Lender to the relevant Borrower(s) (with a copy to
the Administrative Agent) shall be conclusive in the absence of manifest error.
The obligations of the Borrowers pursuant to this Section shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

          2.22  Taxes.  (a)  All payments made by the Borrowers under this
Agreement shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding net income taxes and franchise taxes (imposed in lieu of
net income taxes) imposed on any Agent or any Lender as a result of a present or
former connection between such Agent or such Lender and the jurisdiction of the
Governmental Authority imposing such tax or any political subdivision or taxing
authority thereof or therein (other than any such connection arising solely from
such Agent's or such Lender's having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement or any
other Loan Document).  If any such non-excluded taxes, levies, imposts, duties,
charges, fees, deductions or withholdings ("Non-Excluded Taxes") or any Other
Taxes are required to be withheld from any amounts payable to any Agent or any
Lender hereunder, the amounts so payable to such Agent or such Lender shall be
increased to the extent necessary to yield to such Agent or such Lender (after
payment of all Non-Excluded Taxes and Other Taxes) interest or any such other
amounts payable hereunder at the rates or in the amounts specified in this
Agreement; provided, however, that the Borrowers shall not be required to
increase any such amounts
<PAGE>

                                                                              50

payable to any Lender with respect to any Non-Excluded Taxes (i) that are
attributable to such Lender's failure to comply with the requirements of
paragraph (d) or (e) of this Section or (ii) that are United States withholding
taxes imposed on amounts payable to such Lender at the time such Lender becomes
a party to this Agreement, except to the extent that such Lender's assignor (if
any) was entitled, at the time of assignment, to receive additional amounts from
the Borrower with respect to such Non-Excluded Taxes pursuant to Section
2.22(a).

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

          (c)  Whenever any Non-Excluded Taxes or Other Taxes are payable by a
Borrower, as promptly as possible thereafter the relevant Borrower shall send to
the Administrative Agent for the account of the relevant Agent or Lender, as the
case may be, a certified copy of an original official receipt received by such
Borrower showing payment thereof.  If such Borrower fails to pay any Non-
Excluded Taxes or Other Taxes when due to the appropriate taxing authority or
fails to remit to the Administrative Agent the required receipts or other
required documentary evidence, such Borrower shall indemnify the Agents and the
Lenders for any incremental taxes, interest or penalties that may become payable
by any Agent or any Lender as a result of any such failure.  The agreements in
this Section 2.22 shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

          (d)  Each Lender (or Transferee) that is not a citizen or resident of
the United States of America, a corporation, partnership or other entity created
or organized in or under the laws of the United States of America (or any
jurisdiction thereof), or any estate or trust that is subject to federal income
taxation regardless of the source of its income (a "Non-U.S. Lender") shall
deliver to the Borrowers and the Administrative Agent (or, in the case of a
Participant, to the Lender from which the related participation shall have been
purchased) two copies of either U.S. Internal Revenue Service Form 1001 or Form
4224, or, in the case of a Non-U.S. Lender claiming exemption from U.S. federal
withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of "portfolio interest" a statement substantially in the form of
Exhibit I and a Form W-8, or any subsequent versions thereof or successors
thereto properly completed and duly executed by such Non-U.S. Lender claiming
complete exemption from, or a reduced rate of, U.S. federal withholding tax on
all payments by the Borrowers under this Agreement and the other Loan Documents.
Such forms shall be delivered by each Non-U.S. Lender on or before the date it
becomes a party to this Agreement (or, in the case of any Participant, on or
before the date such Participant purchases the related participation).  In
addition, each Non-U.S. Lender shall deliver such forms promptly upon the
obsolescence or invalidity of any form previously delivered by such Non-U.S.
Lender.  Each Non-U.S. Lender shall promptly notify the Borrowers at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrowers (or any other form of certification
adopted by the U.S. taxing authorities for such purpose).  Notwithstanding any
other provision of this paragraph, a Non-U.S. Lender shall not be required to
deliver any form pursuant to this paragraph that such Non-U.S. Lender is not
legally able to deliver.

          (e)  A Lender that is entitled to an exemption from or reduction of
non-U.S. withholding tax under the law of the jurisdiction in which a Borrower
is located, or any treaty to
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                                                                              51

which such jurisdiction is a party, with respect to payments under this
Agreement shall deliver to such Borrower (with a copy to the Administrative
Agent), at the time or times prescribed by applicable law or reasonably
requested by such Borrower, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate, provided that such Lender is legally entitled
to complete, execute and deliver such documentation and in such Lender's
reasonable judgment such completion, execution or submission would not
materially prejudice the legal position of such Lender.

          2.23  Indemnity.  Each Borrower agrees to indemnify each Lender for,
and to hold each Lender harmless from, any loss or expense that such Lender may
sustain or incur as a consequence of (a) default by such Borrower in making a
borrowing of, conversion into or continuation of Eurocurrency Loans after such
Borrower has given a notice requesting the same in accordance with the
provisions of this Agreement, (b) default by such Borrower in making any
prepayment after such Borrower has given a notice thereof in accordance with the
provisions of this Agreement or (c) the making of a prepayment or conversion of
Eurocurrency Loans on a day that is not the last day of an Interest Period with
respect thereto.  Such indemnification may include an amount equal to the
excess, if any, of (i) the amount of interest that would have accrued on the
amount so prepaid, or not so borrowed, converted or continued, for the period
from the date of such prepayment or of such failure to borrow, convert or
continue to the last day of such Interest Period (or, in the case of a failure
to borrow, convert or continue, the Interest Period that would have commenced on
the date of such failure) in each case at the applicable rate of interest for
such Loans provided for herein (excluding, however, the Applicable Margin
included therein, if any) over (ii) the amount of interest (as reasonably
determined by such Lender) that would have accrued to such Lender on such amount
by placing such amount on deposit for a comparable period with leading banks in
the interbank eurocurrency market.  A certificate as to any amounts payable
pursuant to this Section submitted to a Borrower by any Lender shall be
conclusive in the absence of manifest error.  This covenant shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

          2.24  Illegality.  Notwithstanding any other provision herein, if the
adoption of or any change in any Requirement of Law or in the interpretation or
application thereof shall make it unlawful for any Lender to make or maintain
Eurocurrency Loans as contemplated by this Agreement, (a) the commitment of such
Lender hereunder to make Eurocurrency Loans, continue Eurocurrency Loans as such
and convert Base Rate Loans to Eurocurrency Loans shall forthwith be canceled,
(b) such Lender's Loans then outstanding as Eurocurrency Loans denominated in
Dollars, if any, shall be converted automatically to Base Rate Loans on the
respective last days of the then current Interest Periods with respect to such
Loans or within such earlier period as required by law and (c) such Lender's
Loans then outstanding as Eurocurrency Loans denominated in Sterling or Euro, if
any, shall be repaid on the respective last days of the then current Interest
Periods with respect to such Loans or within such earlier period as required by
law.  If any such conversion or repayment of a Eurocurrency Loan occurs on a day
which is not the last day of the then current Interest Period with respect
thereto, the relevant Borrower shall pay to such Lender such amounts, if any, as
may be required pursuant to Section 2.23.
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                                                                              52

          2.25  Change of Lending Office.  Each Lender agrees that, upon the
occurrence of any event giving rise to the operation of Section 2.21, 2.22(a) or
2.24 with respect to such Lender, it will, if requested by a Borrower, use
reasonable efforts (subject to overall policy considerations of such Lender) to
designate another lending office for any Loans affected by such event with the
object of avoiding the consequences of such event; provided, that such
designation is made on terms that, in the sole judgment of such Lender, cause
such Lender and its lending office(s) to suffer no economic, legal or regulatory
disadvantage, and provided, further, that nothing in this Section shall affect
or postpone any of the obligations of any Borrower or the rights of any Lender
pursuant to Section 2.21, 2.22(a) or 2.24.

          2.26  Change in Borrowing Base.  The Borrowing Base shall be
determined monthly (or at such other interval as may be specified pursuant to
Section 2.2(g)) by the Administrative Agent by reference to the Borrowing Base
Report.  The Administrative Agent shall give to the Borrower written notice of
any change in the Borrowing Base determined by the Administrative Agent.  In the
case of a reduction in the lending formula with respect to Eligible Accounts
Receivable or Eligible Inventory, such notice shall be effective five days after
its receipt by the Borrower, and in the case of any change in the general
criteria for Eligible Accounts Receivable or Eligible Inventory, such notice
shall be effective upon its receipt by the Borrower.  Prior to the time that
such notice becomes effective, the Borrowing Base shall be computed as it would
have been computed in the absence of such notice.

          2.27  Prepayments Required Due to Currency Fluctuation.  (a)  Not
later than 1:00 p.m., New York City time, on the last Business Day of each
calendar month (the "Calculation Date"), the Administrative Agent shall
determine the Dollar Equivalent of the Total Revolving Extensions of Credit as
of such date.  The Dollar Equivalent so determined shall become effective on the
first Business Day immediately following such determination (a "Reset Date") and
shall remain effective until the next succeeding Reset Date.  In the event there
are any Revolving Credit Loans or Letters of Credit outstanding on a Calculation
Date which are denominated in any Optional Currency, the Administrative Agent
shall on the Reset Date immediately following such Calculation Date provide the
Lenders and Borrower with calculations of the Dollar Equivalent of such
Revolving Credit Loans and Letters of Credit as of such Calculation Date.

          (b)  If,  as a result of fluctuations in respective currency exchange
rates, on any Reset Date the Dollar Equivalent so determined pursuant to the
immediately preceding paragraph exceeds the lesser of (i) the Total Revolving
Credit Commitments then in effect and (ii) the Borrowing Base then in effect for
three consecutive Business Days, then the Borrower shall on such date prepay the
Swing Line Loans or Revolving Credit Loans or cash collateralize the outstanding
Letters of Credit in an aggregate principal amount at least equal to such
excess.

          (c)  Without limiting the immediately preceding paragraph, if, as a
result of fluctuations in respective currency exchange rates, on any Business
Day prior to the Revolving Credit Termination Date, the Dollar Equivalent of the
Total Revolving Extensions of Credit as of such day exceeds the lesser of (i)
the Total Revolving Credit Commitments then in effect and (ii) the Borrowing
Base then in effect by 5% or more, then within two Business Days thereafter, the
Borrower shall prepay the Swing Line Loans or Revolving Credit Loans or cash
collateralize the outstanding Letters of Credit in an aggregate principal amount
at least equal to such excess.
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                                                                              53

Nothing set forth in this Section 2.27(c) shall be construed to require the
Administrative Agent to calculate compliance under this Section 2.27(c) other
than at the times set forth in Section 2.27(a).

          (d)  If, as a result of fluctuations in respective currency exchange
rates, on any Reset Date the L/C Obligations exceed the L/C Commitment by more
than 5%, then the Borrower shall on such date cash collateralize the outstanding
Letters of Credit in an aggregate principal amount at least equal to such
excess.

          2.28  Adoption of the Euro.  Each provision of this Agreement shall be
subject to such reasonable changes of construction as the Administrative Agent
may from time to time specify to be necessary or appropriate to reflect the
adoption of the Euro in any Participating Member State and any relevant market
conventions or practices relating to the Euro.  Each obligation under this
Agreement of a party to this Agreement which has been denominated in the
National Currency Unit of a Subsequent Participant state shall be redenominated
into the Euro in accordance with EMU Legislation immediately upon such
Subsequent Participant becoming a Participating Member State (but otherwise in
accordance with EMU Legislation).  If, in relation to the currency of any
Subsequent Participant, the basis of accrual of interest or fees expressed in
this Agreement with respect to such currency shall be inconsistent with any
convention or practice in the interbank market for the basis of accrual of
interest or fees in respect of the Euro, such convention or practice shall
replace such expressed basis effective as of and from the date on which such
Subsequent Participant becomes a Participating Member State; provided, that if
any Loan in the currency of such Subsequent Participant is outstanding
immediately prior to such date, such replacement shall take effect, with respect
to such Loan, at the end of the then current Interest Period.

                         SECTION 3.  LETTERS OF CREDIT

          3.1  Letter of Credit Commitments.
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                                                                              54

          (a) Subject to the terms and conditions hereof and the execution and
delivery by the Borrower of a letter of credit application on the Issuing
Lender's customary form (a "Letter of Credit Application"), the Issuing Lender,
on behalf of the Lenders and in reliance upon the agreement of the Lenders set
forth in Section 3.1(d) and upon the representations and warranties of the
Borrower contained herein, agrees to issue, extend and renew for the account of
the Borrower (either for its own account or on behalf of any Subsidiary) one or
more standby or documentary letters of credit (on a sight or time basis), bank
guarantees, indemnities, or other similar instruments, and as to such
instruments other than letters of credit, in each case, reasonably capable of
issuance by the Issuing Lender ("Letters of Credit"), denominated in Dollars or
any Optional Currency in such form as may be requested from time to time by the
Borrower and agreed to by the Issuing Lender; provided, however, that, the
Issuing Lender shall not have any obligation to issue any Letter of Credit if,
after giving effect to such issuance (i) the L/C Obligations would exceed the
L/C Commitment, (ii) the aggregate amount of the Available Revolving Credit
Commitments would be less than zero, (iii) the Total Revolving Extensions of
Credit denominated in any Optional Currency would exceed the Optional Currency
Sublimit or (iv) the Total Revolving Extensions of Credit would exceed the
Borrowing Base.  Notwithstanding the foregoing, each of the letters of credit
issued or deemed issued under the Existing Credit Agreement shall, from and
after the Closing Date, be deemed to have been issued pursuant to this Section
3.1(a); provided, that the reimbursement provisions contained in the Existing
Credit Agreement with respect to the borrowers of such letters of credit shall
remain operative with respect to such letters of credit.  Notwithstanding the
foregoing, the Issuing Lender shall have no obligation to issue any Letter of
Credit to support or secure any Indebtedness of the Borrower or any Subsidiary
to the extent that such Indebtedness was incurred prior to the proposed issuance
date of such Letter of Credit, unless in any such case the Borrower demonstrates
to the satisfaction of the Issuing Lender that (x) such prior incurred
Indebtedness was then fully secured by a prior perfected and unavoidable
security interest in collateral provided by the Borrower or such Subsidiary to
the proposed beneficiary of such Letter of Credit or (y) such prior incurred
Indebtedness was then secured or supported by a letter of credit issued for the
account of the Borrower or such Subsidiary and the reimbursement obligation with
respect to such letter of credit was fully secured by a prior perfected and
unavoidable security interest in collateral provided to the issuer of such
letter of credit by the Borrower or such Subsidiary.

          (b)  Each Letter of Credit Application shall be completed to the
satisfaction of the Issuing Lender.  In the event that any provision of any
Letter of Credit Application shall be inconsistent with any provision of this
Agreement, then the provisions of this Agreement shall, to the extent of any
such inconsistency, govern.

          (c)  Each Letter of Credit issued, extended or renewed hereunder
shall, among other things, (a) provide for the payment of sight and time drafts
for honor thereunder when presented in accordance with the terms thereof and
when accompanied by the documents described therein, and (b) have an expiry date
no later than the date which is fourteen (14) days (or, if the Letter of Credit
is confirmed by a confirmer or otherwise provides for one or more nominated
persons, forty-five (45) days) prior to the Revolving Credit Termination Date.

          (d)  Each Lender severally agrees that it shall be absolutely liable,
without regard to the occurrence of any Default or Event of Default or any other
condition precedent
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                                                                              55

whatsoever, to the extent of such Lender's Revolving Credit Percentage, to
reimburse the Issuing Lender on demand for the amount of each draft paid by the
Issuing Lender (as calculated pursuant to Section 3.2) under each Letter of
Credit to the extent that such amount is not reimbursed by the Borrower pursuant
to Section 3.2 (such agreement for a Lender being called herein the "Letter of
Credit Participation" of such Lender).

          (e)  Each such payment made by a Lender shall be treated as the
purchase by such Lender of a participating interest in the Borrower's
Reimbursement Obligation under Section 3.2 in an amount equal to such payment.
Each Lender shall share from its purchase date in accordance with its
participating interest in any interest which accrues pursuant to Section 3.2.

          3.2  Reimbursement Obligation of the Borrower.  (a) In order to induce
the Issuing Lender to issue, extend and renew each Letter of Credit and the
Lenders to participate therein, the Borrower hereby agrees to reimburse or pay
to the Issuing Lender, for the account of the Issuing Lender or (as the case may
be) the Lenders, with respect to each Letter of Credit issued, extended or
renewed by the Issuing Lender hereunder for the account of the Borrower,

          (i)  except as otherwise expressly provided in Sections 3.2(b) and
     (c), on each date that any draft presented under such Letter of Credit is
     honored by the Issuing Lender, or the Issuing Lender otherwise makes a
     payment with respect thereto (in the same currency in which such Letter of
     Credit was issued or the Dollar Equivalent thereof), (i) the amount paid by
     the Issuing Lender under or with respect to such Letter of Credit, and (ii)
     the amount of any taxes (other than taxes based upon or measured by the
     income or profits of a Lender or the Issuing Lender), fees, charges or
     other costs and expenses whatsoever incurred by the Issuing Lender or any
     Lender in connection with any payment made by the Issuing Lender or any
     Lender under, or with respect to, such Letter of Credit;

          (ii)  upon the reduction (but not termination) of the Revolving Credit
     Commitments to an amount less than the face amount of all outstanding
     Letters of Credit, an amount equal to such difference, which amount shall
     be held by the Issuing Lender for the benefit of the Lenders as cash
     collateral for all Reimbursement Obligations; and

          (iii)  upon the termination of the Revolving Credit Commitments, or
     the acceleration of the Reimbursement Obligations with respect to all
     Letters of Credit in accordance with Section 8, an amount equal to the face
     amount of all outstanding Letters of Credit, which amount shall be held by
     the Issuing Lender for the benefit of the Lenders as cash collateral for
     all Reimbursement Obligations.

Each such payment shall be made to the Issuing Lender at the Administrative
Agent's office in same day funds.  Interest on any and all amounts remaining
unpaid by the Borrower under this Section 3.2 at any time from the date such
amounts become due and payable (whether as stated in this Section 3.2, by
acceleration or otherwise) until payment in full (whether before or after
judgment) shall be payable to the Issuing Lender on demand at the rate specified
in Section 2.17 for overdue principal on the Revolving Credit Loans.

          (b) Each drawing under any Letter of Credit denominated in Dollars
shall constitute a request by the Borrower to the Administrative Agent for a
borrowing pursuant to Section 2.5 of Base Rate Loans in the amount of such
drawing (but without any requirement for
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                                                                              56

compliance with the prior notice or minimum borrowing amount provisions of
Section 2.5. The Borrowing Date with respect to such borrowing shall be the date
of such drawing and each Lender shall make its Revolving Credit Percentage of
such borrowing available to the Administrative Agent on such date to be used to
repay the Reimbursement Obligation created by such drawing. The application of
such Loans shall satisfy the Borrower's obligations under Section 3.2(a) in the
amount thereof.

          3.3  Letter of Credit Payments.  If any draft shall be presented or
other demand for payment shall be made under any Letter of Credit, the Issuing
Lender shall notify the Borrower of the date and amount of the draft presented
or demand for payment and of the date and time when it expects to pay such draft
or honor such demand for payment.  If the Borrower fails to reimburse the
Issuing Lender as provided in Section 3.2 on or before the date that such draft
is paid or other payment is made by the Issuing Lender, the Issuing Lender may
at any time thereafter notify the Lenders of the amount of any such unpaid
Reimbursement Obligation and shall specify such amount in Dollars (based upon
the actual exchange rate at which the Issuing Lender anticipates being able to
obtain the applicable Optional Currency on the date payment is to be made by the
Lenders, with any excess payment being refunded to the Lenders and any
deficiency being payable by the Lenders) required from each of the Lenders.  No
later than 3:00 p.m., New York City time, on the Business Day next following the
receipt of such notice, each Lender shall make available to the Issuing Lender,
through the Administrative Agent, in same day funds, such Lender's Revolving
Credit Percentage of such unpaid Reimbursement Obligation, together with an
amount equal to the product of (a) the average, computed for the period referred
to in clause (c) below, of the Overnight Rate for each day included in such
period, times (b) the amount equal to such Lender's Revolving Credit Percentage
of such unpaid Reimbursement Obligation, times (c) a fraction, the numerator of
which is the number of days that elapse from and including the date the Issuing
Lender paid the draft presented for honor or otherwise made payment to the date
on which such Lender's Revolving Credit Percentage of such unpaid Reimbursement
Obligation shall become immediately available to the Issuing Lender, and the
denominator of which is 365.  The responsibility of the Issuing Lender to the
Borrower and the Lenders shall be only to determine that the documents
(including each draft) delivered under each Letter of Credit in connection with
such presentment shall be in conformity in all material respects with such
Letter of Credit.  From and after such purchase of the applicable Letter of
Credit Participations, such unpaid Reimbursement Obligations shall be deemed to
have been converted into Base Rate Loans made by the Lenders, and all amounts
from time to time accruing, and all amounts from time to time payable, on
account of such unpaid Reimbursement Obligations shall be payable in Dollars as
if such Letter of Credit had originally been issued in Dollars.

          3.4  Obligations Absolute.  The Borrower's obligations under this
Section 3 shall be absolute and unconditional under any and all circumstances
and irrespective of the occurrence of any Default or Event of Default or any
condition precedent whatsoever or any setoff, counterclaim or defense to payment
which the Borrower may have or have had against the Issuing Lender, any Lender
or any beneficiary of a Letter of Credit.  The Borrower further agrees with the
Issuing Lender and the Lenders that the Issuing Lender and the Lenders shall not
be responsible for, and the Borrower's Reimbursement Obligations under Section
3.2 shall not be affected by, among other things, the validity or genuineness of
documents or of any endorsements thereon, even if such documents should in fact
prove to be in any or all respects
<PAGE>

                                                                              57

invalid, fraudulent or forged, or any dispute between or among the Borrower, the
beneficiary of any Letter of Credit or any financing institution or other party
to which any Letter of Credit may be transferred or any claims or defenses
whatsoever of the Borrower against the beneficiary of any Letter of Credit or
any such transferee. The Issuing Lender and the Lenders shall not be liable for
any error, omission, interruption or delay in transmission, dispatch or delivery
of any message or advice, however transmitted, in connection with any Letter of
Credit. The Borrower agrees that any action taken or omitted by the Issuing
Lender or any Lender under or in connection with each Letter of Credit and the
related drafts and documents, if done in good faith and without gross
negligence, shall be binding upon the Borrower and shall not result in any
liability on the part of the Issuing Lender or any Lender to the Borrower.

          3.5  Reliance by Issuer.  To the extent not inconsistent with Section
3.4, the Issuing Lender shall be entitled to rely, and shall be fully protected
in relying upon, any Letter of Credit, draft, writing, resolution, notice,
consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or
teletype message, statement, order or other document believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel, independent
accountants and other experts selected by the Issuing Lender.  The Issuing
Lender shall be fully justified in failing or refusing to take any action under
this Agreement unless it shall first have received such advice or concurrence of
the Required Lenders as it reasonably deems appropriate or it shall first be
indemnified to its reasonable satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.  The Issuing Lender shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement in
accordance with a request of the Required Lenders, and such request and any
action taken or failure to act pursuant thereto shall be binding upon the
Lenders and all future holders of the Loans or Letter of Credit Participations.

          3.6  Letter of Credit Fee.  The Borrower shall pay a fee (in each
case, a "Letter of Credit Fee") to the Issuing Lender in respect of each Letter
of Credit issued pursuant to this Agreement, calculated at the rate of the
Applicable Margin then in effect with respect to Eurocurrency Loans under the
Revolving Credit Facility on the face amount of each such Letter of Credit, for
the accounts of the Lenders in accordance with their respective Revolving Credit
Percentages, plus an amount equal to 1/4 of 1% per annum of the face amount of
such Letter of Credit, for the account of the Issuing Lender, as a fronting fee.
The Letter of Credit Fees for each Letter of Credit shall be payable quarterly
in arrears on the first day of each calendar quarter for the immediately
preceding calendar quarter and on the last day of the Revolving Credit
Commitment Period.  In respect of each Letter of Credit, the Borrower shall also
pay to the Issuing Lender, for the Issuing Lender's own account, on the date of
any issuance, extension, renewal or amendment of any Letter of Credit, or at
such other time or times as such charges are customarily made by the Issuing
Lender, for the Issuing Lender's own account, the Issuing Lender's customary
issuance, amendment, negotiation or document examination and other
administrative fees as in effect from time to time.
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                                                                              58

                  SECTION 4.  REPRESENTATIONS AND WARRANTIES

          To induce the Agents and the Lenders to enter into this Agreement and
to make the Loans and issue or participate in the Letters of Credit, Holdings
and the Borrowers hereby jointly and severally represent and warrant to each
Agent and each Lender that:

          4.1  Financial Condition.  (a)  The unaudited pro forma consolidated
balance sheet of Holdings and its consolidated Subsidiaries as at February 29,
2000 (including the notes thereto) (the "Pro Forma Balance Sheet"), copies of
which have heretofore been furnished to each Lender, has been prepared giving
effect (as if such events had occurred on such date) to (i) the consummation of
the Acquisition, (ii) the Loans to be made and the Senior Subordinated Notes to
be issued on the Closing Date and the use of proceeds thereof and (iii) the
payment of fees and expenses in connection with the foregoing.  The Pro Forma
Balance Sheet has been prepared based on the best information available to
Holdings as of the date of delivery thereof, and presents fairly on a pro forma
basis the estimated financial position of Holdings and its consolidated
Subsidiaries as at February 29, 2000, assuming that the events specified in the
preceding sentence had actually occurred at such date.

          (b)  The audited consolidated balance sheets of Holdings as at
February 29, 2000 and March 31, 1999 and the related consolidated statements of
income and of cash flows for each of the eleven month periods ended on such
dates, reported on by and accompanied by an unqualified report from
PriceWaterhouseCoopers, present fairly the consolidated financial condition of
Holdings as at such dates, and the consolidated results of its operations and
its consolidated cash flows for the respective periods then ended.  The audited
combined balance sheet of Weigh-Tronix Scale Products Business, prior to the
acquisition from Staveley Plc by Holdings (the "Predecessor") as at March 31,
1998, and the related combined statements of income and cash flow for the year
ended on such date and for the one-month period ended April 30, 1998, as
reported on and accompanied by the unqualified report from
PricewaterhouseCoopers, present fairly the combined financial condition of the
Predecessor as of such dates and the combined results of its operations and cash
flows for the respective periods then ended.  All such financial statements,
including the related schedules and notes thereto, have been prepared in
accordance with GAAP applied consistently throughout the periods involved
(except as approved by the aforementioned firm of accountants and disclosed
therein).  Holdings, the Borrowers and their respective Subsidiaries do not have
any material Guarantee Obligations, contingent liabilities and liabilities for
taxes, or any long-term leases or unusual forward or long-term commitments,
including, without limitation, any interest rate or foreign currency swap or
exchange transaction or other obligation in respect of derivatives, that are not
reflected in the most recent financial statements referred to in this paragraph.
During the period from February 29, 2000 to and including the date hereof there
has been no Disposition or Restricted Payment by Holdings of any material part
of its business or Property.

          (c)  The audited combined balance sheets of Avery Berkel as at
February 26, 2000, March 31, 1999 and March 31, 1998, and the related combined
statements of income and of cash flows for the eleven month, twelve month and
twelve month periods, respectively, ended on such dates, reported on by and
accompanied by an unqualified report from Deloitte & Touche present fairly the
combined financial condition of Avery Berkel as at such dates, and the combined
results of their respective operations and their respective combined cash flows
for the respective periods then ended.  All such financial statements, including
the related schedules and notes thereto, have been prepared in accordance with
generally accepted accounting principles in
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                                                                              59

the United Kingdom applied consistently throughout the periods involved (except
as approved by the aforementioned firm of accountants and disclosed therein).
Avery Berkel and their respective Subsidiaries do not have any material
Guarantee Obligations, contingent liabilities and liabilities for taxes, or any
long-term leases or unusual forward or long-term commitments, including, without
limitation, any interest rate or foreign currency swap or exchange transaction
or other obligation in respect of derivatives, that are not reflected in the
most recent financial statements referred to in this paragraph. During the
period from February 26, 2000 to and including the date hereof there has been no
Disposition by Avery Berkel of any material part of their respective businesses
or Properties.

          4.2  No Change.  Since February 26, 2000 there has been no development
or event that has had or could reasonably be expected to have a Material Adverse
Effect.

          4.3  Corporate Existence; Compliance with Law.  Each of Holdings, the
Borrowers and each of their respective Subsidiaries (a) is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the corporate power and authority, and the legal right, to
own and operate its Property, to lease the Property it operates as lessee and to
conduct the business in which it is currently engaged, (c) is duly qualified as
a foreign corporation and in good standing under the laws of each jurisdiction
where its ownership, lease or operation of Property or the conduct of its
business requires such qualification and (d) is in compliance with all
Requirements of Law except to the extent that the failure to comply therewith
could not, in the aggregate, reasonably be expected to have a Material Adverse
Effect.

          4.4  Corporate Power; Authorization; Enforceable Obligations.  Each
Loan Party has the corporate power and authority, and the legal right, to make,
deliver and perform the Loan Documents to which it is a party and, in the case
of the Borrowers, to borrow hereunder.  Each Loan Party has taken all necessary
corporate or other action to authorize the execution, delivery and performance
of the Loan Documents to which it is a party and, in the case of the Borrowers,
to authorize the borrowings on the terms and conditions of this Agreement.  No
consent or authorization of, filing with, notice to or other act by or in
respect of, any Governmental Authority or any other Person is required in
connection with the Acquisition,  the borrowings hereunder or the execution,
delivery, performance, validity or enforceability of this Agreement or any of
the other Loan Documents, except (i) consents, authorizations, filings and
notices described in Schedule 4.4, which consents, authorizations, filings and
notices have been obtained or made and are in full force and effect, (ii) the
filings referred to in Section 4.19 and (iii) the "whitewash" procedures
referred to in Section 5.1(x).  Each Loan Document has been or, in the case of
the Foreign Guarantees and Foreign Collateral Documents, will be upon
consummation of the "whitewash" procedures referred to in Section 5.1(x), duly
executed and delivered on behalf of each Loan Party that is a party thereto.
This Agreement constitutes, and each other Loan Document upon execution will
constitute, a legal, valid and binding obligation of each Loan Party that is a
party thereto, enforceable against each such Loan Party in accordance with its
terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement
of creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).
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                                                                              60

          4.5  No Legal Bar.  The execution, delivery and performance of this
Agreement and the other Loan Documents, the issuance of Letters of Credit, the
borrowings hereunder and the use of the proceeds thereof will not violate any
Requirement of Law or any Contractual Obligation of Holdings, the Borrowers or
any of their Subsidiaries and will not result in, or require, the creation or
imposition of any Lien on any of their respective properties or revenues
pursuant to any Requirement of Law or any such Contractual Obligation (other
than the Liens created by the Security Documents).  No Requirement of Law or
Contractual Obligation applicable to Holdings, the Borrowers or any of their
Subsidiaries could reasonably be expected to have a Material Adverse Effect.

          4.6  No Material Litigation.  No litigation, investigation or
proceeding of or before any arbitrator or Governmental Authority is pending or,
to the knowledge of Holdings or the Borrowers, threatened by or against
Holdings, the Borrowers or any of their Subsidiaries or against any of their
respective properties or revenues (a) with respect to any of the Loan Documents
or any of the transactions contemplated hereby or thereby, or (b) that could
reasonably be expected to have a Material Adverse Effect.

          4.7  No Default.  Neither Holdings, the Borrowers nor any of their
Subsidiaries is in default under or with respect to any of its Contractual
Obligations in any respect that could reasonably be expected to have a Material
Adverse Effect.  No Default or Event of Default has occurred and is continuing.

          4.8  Ownership of Property; Liens.  Each of Holdings, the Borrowers
and their Subsidiaries has title in fee simple to, or a valid leasehold interest
in, all its real property, and good title to, or a valid leasehold interest in,
all its other material Property, and none of  its real property or any other
Property is subject to any Lien except as permitted by Section 7.3.  Set forth
on Schedule 4.8 is a complete listing of all real property and related
facilities owned or leased by Holdings or any of its Subsidiaries and the
relevant owners or lessees thereof.

          4.9  Intellectual Property.  Holdings, the Borrowers and each of their
respective Subsidiaries owns, or is licensed to use, all Intellectual Property
necessary for the conduct of its business as currently conducted.  No material
claim has been asserted and is pending by any Person challenging or questioning
the use of any Intellectual Property or the validity or effectiveness of any
Intellectual Property, nor does Holdings or any of the Borrowers know of any
valid basis for any such claim.  The use of Intellectual Property by Holdings,
the Borrowers and their Subsidiaries does not infringe on the rights of any
Person in any material respect.

          4.10  Taxes.  Each of Holdings, the Borrowers and each of their
Subsidiaries has filed or caused to be filed all Federal, state and other
material tax returns that are required to be filed and has paid all taxes shown
to be due and payable on said returns or on any assessments made against it or
any of its Property and all other taxes, fees or other charges imposed on it or
any of its Property by any Governmental Authority (other than immaterial taxes
or any taxes the amount or validity of which are currently being contested in
good faith by appropriate proceedings and with respect to which reserves in
conformity with GAAP have been provided on the books of Holdings, the Borrowers
or their Subsidiaries, as the case may be); and no tax Lien has been filed, and,
to the knowledge of Holdings and the Borrowers, no claim is being asserted by
any taxing authority, with respect to any such tax, fee or other charge.
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                                                                              61

          4.11  Federal Regulations.  No part of the proceeds of any Loans will
be used for "purchasing" or "carrying" any "margin stock" within the respective
meanings of each of the quoted terms under Regulation U as now and from time to
time hereafter in effect or for any purpose that violates the provisions of the
Regulations of the Board.  If requested by any Lender or the Administrative
Agent, the Borrowers will furnish to the Administrative Agent and each Lender a
statement to the foregoing effect in conformity with the requirements of FR Form
G-3 or FR Form U-1 referred to in Regulation U.

          4.12  Labor Matters. There are no strikes or other labor disputes
against Holdings, the Borrower or any of their Subsidiaries pending or, to the
knowledge of Holdings or the Borrowers, threatened that (individually or in the
aggregate) could reasonably be expected to have a Material Adverse Effect.
Hours worked by and payment made to employees of Holdings, the Borrowers and
their Subsidiaries have not been in violation of the Fair Labor Standards Act or
any other applicable Requirement of Law dealing with such matters that
(individually or in the aggregate) could reasonably be expected to have a
Material Adverse Effect.  All payments due from Holdings, the Borrowers or any
of their Subsidiaries on account of employee health and welfare insurance that
(individually or in the aggregate) could reasonably be expected to have a
Material Adverse Effect if not paid have been paid or accrued as a liability on
the books of Holdings, the relevant Borrower or the relevant Subsidiary.

          4.13  ERISA.  Neither a Reportable Event nor an "accumulated funding
deficiency" (within the meaning of Section 412 of the Code or Section 302 of
ERISA) has occurred during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Plan, and each Plan
has complied in all material respects with the applicable provisions of ERISA
and the Code.  No termination of a Single Employer Plan has occurred, and no
Lien in favor of the PBGC or a Plan has arisen, during such five-year period.
The present value of all accrued benefits under each Single Employer Plan (based
on those assumptions used to fund such Plans) did not, as of the last annual
valuation date prior to the date on which this representation is made or deemed
made, exceed the value of the assets of such Plan allocable to such accrued
benefits by a material amount.  Neither Holdings nor any Commonly Controlled
Entity has had a complete or partial withdrawal from any Multiemployer Plan that
has resulted or could reasonably be expected to result in a material liability
under ERISA, and neither Holdings nor any Commonly Controlled Entity would
become subject to any material liability under ERISA if Holdings or any such
Commonly Controlled Entity were to withdraw completely from all Multiemployer
Plans as of the valuation date most closely preceding the date on which this
representation is made or deemed made.  No such Multiemployer Plan is in
Reorganization or Insolvent.

          4.14  Investment Company Act; Other Regulations.  No Loan Party is an
"investment company", or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended.  No Loan
Party is subject to regulation under any Requirement of Law (other than
Regulation X of the Board) which limits its ability to incur Indebtedness.

          4.15  Subsidiaries.  (a) The Subsidiaries listed on Schedule 4.15
constitute all the Subsidiaries of Holdings on the date hereof.  Schedule 4.15
sets forth as of the Closing Date the
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                                                                              62

name and jurisdiction of incorporation of each Subsidiary and, as to each
Subsidiary, the percentage of each class of Capital Stock owned by each Loan
Party.

          (b)  There are no outstanding subscriptions, options, warrants, calls,
rights or other agreements or commitments (other than stock options granted to
employees or directors and directors' qualifying shares) of any nature relating
to any Capital Stock of Holdings, the Borrowers or any Subsidiary, other than
the warrants granted to the Seller in connection with the Acquisition for the
purchase of up to 5% of the Capital Stock of Holdings and other than the PIK
Preferred Stock.

          4.16  Use of Proceeds.  The proceeds of the Term Loans shall be used
to finance a portion of the Acquisition and to pay related fees and expenses.
The proceeds of the Revolving Credit Loans and the Swing Line Loans, and the
Letters of Credit, shall be used for general corporate purposes; provided, that
up to $29,900,000 of the Revolving Credit Loans may be used to finance the
Acquisition and to pay related fees and expenses.

          4.17  Environmental Matters.  Other than exceptions to any of the
following representations and warranties that could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect:

          (a)  Holdings and its Subsidiaries:  (i) are, and within the period of
all applicable statutes of limitation have been, in compliance with all
applicable Environmental Laws; (ii) hold all Environmental Permits (each of
which is in full force and effect) required for any of their current or intended
operations or for any property owned, leased, or otherwise operated by any of
them; (iii) are, and within the period of all applicable statutes of limitation
have been, in compliance with all of their Environmental Permits; and (iv)
reasonably believe that:  each of their Environmental Permits will be timely
renewed and complied with, without material expense; any additional
Environmental Permits that may be required of any of them will be timely
obtained and complied with, without material expense; and compliance with any
Environmental Law that is or is expected to become applicable to any of them
will be timely attained and maintained, without material expense.

          (b)  Materials of Environmental Concern are not present at, on, under,
in, or about any real property now or formerly owned, leased or operated by
Holdings or any of its Subsidiaries, or at any other location (including,
without limitation, any location to which Materials of Environmental Concern
have been sent for re-use or recycling or for treatment, storage, or disposal)
which could reasonably be expected to (i) give rise to liability of Holdings or
any of its Subsidiaries under any applicable Environmental Law or otherwise
result in costs to Holdings or any of its Subsidiaries, or (ii) interfere with
Holdings' or any of its Subsidiaries' continued operations, or (iii) impair the
fair saleable value of any real property owned or leased by Holdings or any of
its Subsidiaries.

          (c)  There is no judicial, administrative, or arbitral proceeding
(including any notice of violation or alleged violation) under or relating to
any Environmental Law to which Holdings or any of its Subsidiaries is, or to the
knowledge of Holdings or any of its Subsidiaries will be, named as a party that
is pending or, to the knowledge of Holdings or any of its Subsidiaries,
threatened.
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                                                                              63

          (d)  Neither Holdings nor any of its Subsidiaries has received any
written request for information, or been notified that it is a potentially
responsible party under or relating to the federal Comprehensive Environmental
Response, Compensation, and Liability Act or any similar Environmental Law, or
with respect to any Materials of Environmental Concern.

          (e)  Neither Holdings nor any of its Subsidiaries has entered into or
agreed to any consent decree, order, or settlement or other agreement, or is
subject to any judgment, decree, or order or other agreement, in any judicial,
administrative, arbitral, or other forum for dispute resolution, relating to
compliance with or liability under any Environmental Law.

          (f)  Neither Holdings nor any of its Subsidiaries has assumed or
retained, by contract or operation of law, any liabilities of any kind, fixed or
contingent, known or unknown, under any Environmental Law or with respect to any
Material of Environmental Concern.

          4.18  Accuracy of Information, etc.  No statement or information
contained in this Agreement, any other Loan Document, the Confidential
Information Memorandum or any other document, certificate or statement furnished
to the Syndication Agent, the Administrative Agent, the Arrangers or the Lenders
or any of them, by or on behalf of any Loan Party for use in connection with the
transactions contemplated by this Agreement or the other Loan Documents,
contained as of the date such statement, information, document or certificate
was so furnished (or, in the case of the Confidential Information Memorandum, as
of the date of this Agreement), any untrue statement of a material fact or
omitted to state a material fact necessary in order to make the statements
contained herein or therein not misleading in light of the circumstances under
which such statements were made.  The projections and pro forma financial
information contained in the materials referenced above are based upon good
faith estimates and assumptions believed by management of Holdings to be
reasonable at the time made, it being recognized by the Lenders that such
financial information as it relates to future events is not to be viewed as fact
and that actual results during the period or periods covered by such financial
information may differ from the projected results set forth therein by a
material amount.  As of the date hereof, to the best of Holdings' and each of
the Borrower's knowledge, the representations and warranties contained in the
Acquisition Documentation are true and correct in all material respects.  There
is no fact known to any Loan Party that could reasonably be expected to have a
Material Adverse Effect that has not been expressly disclosed herein, in the
other Loan Documents, in the Confidential Information Memorandum or in any other
documents, certificates and statements furnished to the Agents and the Lenders
for use in connection with the transactions contemplated hereby and by the other
Loan Documents.

          4.19  Security Documents.  (a)  The Guarantee and Collateral Agreement
is effective to create in favor of the Administrative Agent, for the benefit of
the Lenders, a legal, valid and enforceable security interest in the Collateral
described therein and proceeds thereof.  In the case of the Pledged Stock
described in the Guarantee and Collateral Agreement, when any stock certificates
representing such Pledged Stock are delivered to the Administrative Agent, and
in the case of the other Collateral described in the Guarantee and Collateral
Agreement, when financing statements in appropriate form are filed in the
offices specified on Schedule 4.19(a)-1  (which financing statements have been
duly completed and executed and delivered to the Administrative Agent) and such
other filings as are specified on Schedule 3 to the Guarantee and
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                                                                              64

Collateral Agreement (all of which filings have been duly completed), the
Guarantee and Collateral Agreement shall constitute a fully perfected Lien on,
and security interest in, all right, title and interest of the Loan Parties in
such Collateral and the proceeds thereof, as security for the Obligations (as
defined in the Guarantee and Collateral Agreement), in each case prior and
superior in right to any other Person (except, in the case of Collateral other
than Pledged Stock, Liens permitted by Section 7.3). Schedule 4.19(a)-2 lists
each UCC Financing Statement that (i) names any Loan Party as debtor and (ii)
will remain on file after the Closing Date. Schedule 4.19(a)-3 lists each UCC
Financing Statement that (i) names any Loan Party as debtor and (ii) will be
terminated on or prior to the Closing Date; and on or prior to the Closing Date,
Holdings will have delivered to the Administrative Agent, or caused to be filed,
duly completed UCC termination statements, signed by the relevant secured party,
in respect of each UCC Financing Statement listed in Schedule 4.19(a)-3.

          (b)  Each of the Foreign Collateral Documents is effective to create
in favor of the Administrative Agent, for the benefit of the Lenders, a legal,
valid and enforceable security interest in the Collateral described therein and
proceeds thereof.  In the case of the Collateral described in any such Foreign
Collateral Document, when the action specified in such Foreign Collateral
Document have been taken, such Foreign Collateral Document shall constitute a
fully perfected Lien on, and security interest in, all right, title and interest
of the Loan Parties in such Collateral and the proceeds thereof, as security for
the Obligations (as defined in such Foreign Collateral Document), in each case
prior and superior in right to any other Person (except, in the case of
Collateral other than any pledged stock described therein, Liens permitted by
Section 7.3).

          (c)  Each of the Mortgages is effective to create in favor of the
Administrative Agent, for the benefit of the Lenders, a legal, valid and
enforceable Lien on the Mortgaged Properties described therein and proceeds
thereof; and when the Mortgages are filed in the offices specified on Schedule
4.19(b) (in the case of the Mortgages to be executed and delivered on the
Closing Date) or in the recording office designated by Holdings (in the case of
any Mortgage to be executed and delivered pursuant to Section 6.9 (b)), each
Mortgage shall constitute a fully perfected Lien on, and security interest in,
all right, title and interest of the Loan Parties in the Mortgaged Properties
described therein and the proceeds thereof, as security for the Obligations (as
defined in the relevant Mortgage), in each case prior and superior in right to
any other Person (other than Persons holding Liens or other encumbrances or
rights permitted by the relevant Mortgage and by Sections 7.3(a), (e), (i) and
(j)).  Each of the Mortgaged Properties are correctly described in the related
Mortgage and such Mortgage will take effect in respect of the entire interest
owned by Holdings or any Subsidiary in respect of each such Mortgaged Property.

          4.20  Solvency.  Each Loan Party is, and after giving effect to the
Acquisition and the incurrence of all Indebtedness and obligations being
incurred in connection herewith and therewith will be and will continue to be,
Solvent.

          4.21  Senior Indebtedness.  The Obligations constitute "Senior Debt"
of the Borrower under and as defined in the Senior Subordinated Note Indenture.
The obligations of each Guarantor under the Guarantee and Collateral Agreement
and each Foreign Guarantee constitute "Senior Debt" of such Guarantor under and
as defined in the Senior Subordinated Note Indenture.
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                                                                              65

          4.22  Regulation H.  No Mortgage encumbers improved real property
which is located in an area that has been identified by the Secretary of Housing
and Urban Development as an area having special flood hazards and in which flood
insurance has been made available under the National Flood Insurance Act of 1968
(except any Mortgaged Properties as to which such flood insurance as required by
Regulation H has been obtained and is in full force and effect as required by
this Agreement).

          4.23  Real/Heritable Properties.  The real/heritable Properties owned
and leased by Holdings, the Borrowers and the Subsidiaries:

          (a)  are not subject to any Lien (in respect of those Mortgaged
Properties situated in Scotland meaning existing standard securities and/or
other heritable charges) (other than under Sections 7.3(e) and (h)); and

          (b) that are referred to in the Security Documents as being subject to
Mortgages are correctly described in the Security Documents and that the
relevant Mortgage (or standard securities in respect of the Mortgaged Properties
situated in Scotland) will take effect in respect of the entire interest owned
by Holdings, the Borrowers or any Subsidiary in respect of each such
real/heritable Property.

                       SECTION 5.  CONDITIONS PRECEDENT

          5.1  Conditions to Initial Extension of Credit.  The agreement of each
Lender to make the initial extension of credit requested to be made by it
hereunder is subject to the satisfaction, prior to or concurrently with the
making of such extension of credit on the Closing Date, of the following
conditions precedent:

          (a)  Loan Documents.  The Administrative Agent shall have received (i)
this Agreement, executed and delivered by a duly authorized officer of Holdings
and the Borrowers, (ii) the Guarantee and Collateral Agreement, executed and
delivered by a duly authorized officer of Holdings and each Domestic Guarantor,
(iii) each Foreign Guarantee, executed and delivered by a duly authorized
officer of the Foreign Guarantor party thereto (other than those Foreign
Guarantees covered by paragraph (x) below), (iv) each Foreign Collateral
Document, executed and delivered by a duly authorized officer of the Foreign
Guarantor party thereto (other than those Foreign Guarantees covered by
paragraph (x) below), (v) a Mortgage covering each of the Mortgaged Properties,
executed and delivered by a duly authorized officer of each party thereto (other
than those Foreign Guarantees covered by paragraph (x) below), and (vi) for the
account of each relevant Lender, Notes conforming to the requirements hereof and
executed and delivered by a duly authorized officer of the relevant Borrower.

          (b)  Acquisition, etc.  The following transactions shall have been
consummated, in each case on terms and conditions reasonably satisfactory to the
Lenders:

               (i) the Purchaser shall have acquired from the Seller all of the
     issued and outstanding share capital of Avery and Berkel, pursuant to the
     Acquisition
<PAGE>

                                                                              66

     Documentation (the "Acquisition") for an aggregate purchase price not
     exceeding $182,500,000 (including fees and expenses), and no material
     provision of the Acquisition Documentation shall have been waived, amended,
     supplemented or otherwise modified;

               (ii) Holdings shall have received at least $40,300,000 from the
     proceeds of equity issued by Holdings to funds managed by the Sponsor and
     by existing management of Holdings, and such proceeds shall have been
     contributed to the Purchaser to finance the Acquisition;

               (iii) the Borrower shall have received at least euro 100,000,000
     in gross cash proceeds from the issuance of the Senior Subordinated Notes;
     and

               (iv) Holdings shall have issued to the Seller the PIK Preferred
     Stock in an aggregate amount equal to euro 10,000,000 on terms and
     conditions satisfactory to the Agents.

          (c)  Pro Forma Balance Sheet; Financial Statements.  The Lenders shall
have received (i) the Pro Forma Balance Sheet, (ii) the financial statements
described in Sections 4.1(b) and (c), (iii) unaudited (but reviewed by
independent accountants for Holdings) consolidated income and cash flow
statements of Holdings for the ten-month period ended February 28, 1999, (iv)
unaudited (but reviewed by independent accountants for Avery Berkel) combined
financial statements for Avery and Berkel (combined) for the eleven-month period
ended February 27, 1999, and (v) summary unaudited pro forma combined financial
date for Holdings and Avery Berkel as of and for the latest twelve-month period
ended February 29, 2000, prepared in a manner described in the notes thereto;
and such financial statements shall not, in the reasonable judgment of the
Lenders, reflect any material adverse change in the consolidated financial
condition of Holdings, Avery Berkel, as reflected in the financial statements or
projections contained in the Confidential Information Memorandum.

          (d)  Approvals.  All governmental and third party approvals (including
landlords' and other consents) necessary in connection with the Acquisition, the
continuing operations of Holdings and its Subsidiaries and the transactions
contemplated hereby shall have been obtained and be in full force and effect,
and all applicable waiting periods shall have expired without any action being
taken or threatened by any competent authority which would restrain, prevent or
otherwise impose adverse conditions on the Acquisition or the financing
contemplated hereby.

          (e)  Related Agreements.  The Administrative Agent shall have received
(in a form reasonably satisfactory to the Administration Agent), with a copy for
each Lender, true and correct copies, certified as to authenticity by the
Borrower, of the Senior Subordinated Note Indenture and such other documents or
instruments as may be reasonably requested by the Syndication Agent or the
Administrative Agent, including, without limitation, a copy of the Senior
Subordinated Note Indenture and any other material debt instrument, security
agreement or other material contract to which the Loan Parties may be a party.

          (f)  Fees.  The Lenders, the Syndication Agent and the Administrative
Agent shall have received all fees required to be paid, and all expenses for
which invoices have been presented (including reasonable fees, disbursements and
other charges of counsel to the Agents),
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                                                                              67

on or before the Closing Date. All such amounts will be paid with proceeds of
Loans made on the Closing Date and will be reflected in the funding instructions
given by Holdings to the Administrative Agent on or before the Closing Date.

          (g)  Business Plan.  The Lenders shall have received a satisfactory
business plan and written analysis of the business and prospects of Holdings and
its Subsidiaries (including Avery and Berkel).

          (h)  Solvency Analysis.  The Lenders shall have received a reasonably
satisfactory solvency analysis certified by the chief financial officer of
Holdings which shall certify the solvency of Holdings and its Subsidiaries
considered as a whole after giving effect to the Acquisition and the other
transactions contemplated hereby.

          (i)  Lien Searches.  The Administrative Agent shall have received the
results of a recent lien search (or comparable procedure under local law) in
each of the jurisdictions in which Uniform Commercial Code financing statement
or other filings or recordations should be made to evidence or perfect security
interests in all assets of the Loan Parties, and such search shall reveal no
liens on any of the assets of the Loan Party, except for Liens permitted by
Section 7.3.

          (j)  Environmental Matters.  The Administrative Agent shall have
received letters from the environmental consultants which prepared the
environmental assessments of Avery and Berkel and their respective Subsidiaries
permitting the Agents and the Lenders to rely on the environmental assessment as
if addressed to and prepared for each of them.

          (k)  Expenses.  The Administrative Agent shall have received
satisfactory evidence that the fees and expenses to be incurred in connection
with the Acquisition and the financing thereof shall not exceed $18,500,000.

          (l)  Closing Certificate.  The Administrative Agent shall have
received a certificate of each Loan Party, dated the Closing Date, substantially
in the form of Exhibit C, with appropriate insertions and attachments.

          (m)  Legal Opinions.  The Administrative Agent shall have received the
following executed legal opinions:

               (i) the legal opinion of Hutchins, Wheeler & Ditmar, US counsel
     to Holdings and its Subsidiaries, substantially in the form of Exhibit F;

               (ii) the legal opinion of Ashurst Morris Crisp, UK counsel to
     Holdings and its Subsidiaries, in form and substance satisfactory to the
     Agents;

               (iii) the legal opinion of Linklaters & Alliance, UK counsel to
     the Lenders, in form and substance satisfactory to the Agents;

               (iv) the legal opinion of Trenite van Doome, Netherlands counsel
     to the Borrower, in form and substance satisfactory to the Agents;
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                                                                              68

               (v) the legal opinions of (A) McCarthy Tetrault, (B) Baxter
     Harris, (C) Stewart McKelvey Stirling Scales and (D) Aikins, MacCaulay &
     Thorvaldson, Canadian counsel to the Canadian Borrower, in form and
     substance satisfactory to the Agents;

               (vi) to the extent consented to by the relevant counsel, each
     legal opinion, if any, delivered in connection with the Acquisition
     Agreement, accompanied by a reliance letter in favor of the Lenders; and

               (vii) the legal opinion of local counsel in each jurisdiction
     in which Collateral is being provided to secure the obligations under the
     Loan Documents, and of such other special and local counsel as may be
     required by the Administrative Agent.

     Each such legal opinion shall cover such other matters incident to the
     transactions contemplated by this Agreement as the Administrative Agent may
     reasonably require.

          (n)  Pledged Stock; Stock Powers; Acknowledgment and Consent; Pledged
Notes. The Administrative Agent shall have received (i) the certificates
representing the shares of Capital Stock pledged pursuant to the Guarantee and
Collateral Agreement and, to the extent required by local law, each Foreign
Collateral Document, together with an undated stock power or stock transfer form
for each such certificate executed in blank by a duly authorized officer of the
pledgor thereof, (ii) an Acknowledgment and Consent, substantially in the form
of Annex II to the Guarantee and Collateral Agreement, duly executed by any
issuer of Capital Stock pledged pursuant to the Guarantee and Collateral
Agreement that is not itself a party to the Guarantee and Collateral Agreement
and (iii) each promissory note pledged pursuant to the Guarantee and Collateral
Agreement or any Foreign Collateral Document endorsed (without recourse) in
blank (or accompanied by an executed transfer form in blank satisfactory to the
Administrative Agent) by the pledgor thereof, to the extent required by law.

          (o)  Filings, Registrations and Recordings.  Each document (including,
without limitation, any Uniform Commercial Code financing statement) required by
the Security Documents or under law or reasonably requested by the
Administrative Agent to be filed, registered or recorded in order to create in
favor of the Administrative Agent, for the benefit of the Lenders, a perfected
Lien on the Collateral described therein, prior and superior in right to any
other Person (other than with respect to Liens expressly permitted by Section
7.3), shall have been or, upon completion of the "whitewash" procedures referred
to in Section 5.1(x) and the satisfaction of the conditions set forth in Section
5.1(y), will be, filed, registered or recorded or shall have been delivered to
the Administrative Agent be in proper form for filing, registration or
recordation.

          (p)  Title Insurance; Flood Insurance. With respect to each Mortgaged
Property located in the United States of America: (i)  If requested by the
Administrative Agent, the Administrative Agent shall have received, and the
title insurance company issuing the policy referred to in clause (ii) below (the
"Title Insurance Company") shall have received, maps or plats of an as-built
survey of the sites of the Mortgaged Properties certified to the Administrative
Agent and the Title Insurance Company in a manner satisfactory to them, dated a
date satisfactory to the Administrative Agent and the Title Insurance Company by
an independent
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                                                                              69

professional licensed land surveyor satisfactory to the Administrative Agent and
the Title Insurance Company, which maps or plats and the surveys on which they
are based shall be made in accordance with the Minimum Standard Detail
Requirements for Land Title Surveys jointly established and adopted by the
American Land Title Association and the American Congress on Surveying and
Mapping in 1992, and, without limiting the generality of the foregoing, there
shall be surveyed and shown on such maps, plats or surveys the following: (A)
the locations on such sites of all the buildings, structures and other
improvements and the established building setback lines; (B) the lines of
streets abutting the sites and width thereof; (C) all access and other easements
appurtenant to the sites; (D) all roadways, paths, driveways, easements,
encroachments and overhanging projections and similar encumbrances affecting the
site, whether recorded, apparent from a physical inspection of the sites or
otherwise known to the surveyor; (E) any encroachments on any adjoining property
by the building structures and improvements on the sites; (F) if the site is
described as being on a filed map, a legend relating the survey to said map; and
(G) the flood zone designations, if any, in which the Mortgaged Properties are
located.

               (ii)   The Administrative Agent shall have received in respect of
     each Mortgaged Property a mortgagee's title insurance policy (or policies)
     or marked up unconditional binder for such insurance.  Each such policy
     shall (A) be in an amount satisfactory to the Administrative Agent; (B) be
     issued at ordinary rates; (C) insure that the Mortgage insured thereby
     creates a valid first Lien on such Mortgaged Property free and clear of all
     defects and encumbrances, except as disclosed therein; (D) name the
     Administrative Agent for the benefit of the Lenders as the insured
     thereunder; (E) be in the form of ALTA Loan Policy - 1970 (Amended 10/17/70
     and 10/17/84) (or equivalent policies); (F) contain such endorsements and
     affirmative coverage as the Administrative Agent may reasonably request and
     (G) be issued by title companies satisfactory to the Administrative Agent
     (including any such title companies acting as co-insurers or reinsurers, at
     the option of the Administrative Agent).  The Administrative Agent shall
     have received evidence satisfactory to it that all premiums in respect of
     each such policy, all charges for mortgage recording tax, and all related
     expenses, if any, have been paid.

               (iii)    If requested by the Administrative Agent, the
     Administrative Agent shall have received (A) a policy of flood insurance
     that (1) covers any parcel of improved real property that is encumbered by
     any Mortgage (2) is written in an amount not less than the outstanding
     principal amount of the indebtedness secured by such Mortgage that is
     reasonably allocable to such real property or the maximum limit of coverage
     made available with respect to the particular type of property under the
     National Flood Insurance Act of 1968, whichever is less, and (3) has a term
     ending not later than the maturity of the indebtedness secured by such
     Mortgage and (B) confirmation that Holdings has received the notice
     required pursuant to Section 208(e)(3) of Regulation H of the Board.

               (iv)   The Administrative Agent shall have received a copy of all
     recorded documents referred to, or listed as exceptions to title in, the
     title policy or policies referred to in clause (ii) above and a copy of all
     other material documents affecting the Mortgaged Properties.
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                                                                              70

          (q)  Mortgaged Properties in England and Wales.  The Administrative
Agent shall have received in respect of those Mortgaged Properties situated in
England and Wales:

               (i)  all title documents to such Mortgaged Properties;

               (ii)  a clear Land Charges Registry search against whichever of
     Holdings, either Borrower or a Subsidiary is the legal and beneficial owner
     of any such Mortgaged Property or results of H M Land Registry searches in
     favor of the Administrative Agent on the appropriate forms against all
     registered titles giving not less than 10 Business Days' priority beyond
     the date of the relevant Mortgage and showing no adverse entries;

               (iii)  certificates of title together with a letter readdressing
     such certificates of title to the Administrative Agent both in a form
     approved by the Administrative Agent's attorneys from;

               (1) Slaughter and May in respect of Soho Foundry, Foundry Lane,
               Smethwick and of 72/76 Baggrave Street, Leicester; and

               (2) Harrison & Clark in respect of Sertec House, Walsall Road,
               Walsall and of Intec Site, Woodruff Way, Tamebridge, Walsall;

               (iv)  an effective discharge of all Liens affecting such
     Mortgaged Properties;

               (v)  appropriate Land Registry application forms or an
     undertaking from the Borrowers' attorneys (in a form approved by the
     Administrative Agent's attorneys to provide the same) duly completed and
     accompanied by all necessary fees of the Land Registry; and

               (vi)  a certificate from Ashurst Morris Crisp addressed to the
     Administrative Agent in a form approved by the Administrative Agent's
     attorneys.

          (r)  Mortgaged Properties in Scotland.  The Administrative Agent shall
have received in respect of those Mortgaged Properties situated in Scotland:

               (i)  all title documents to such Mortgaged Properties (or an
     undertaking from attorneys approved by the Administrative Agent's attorneys
     in a form approved by the Administrative Agent's attorneys to provide the
     title documents);

               (ii)  clear searches in the Property Registers for the Mortgaged
     Properties situated in Scotland for 10 years or if earlier from the date of
     the foundation Writ to date and in the Personal Registers against all
     relevant interested parties for the appropriate prescriptive periods;

               (iii)  an effective discharge of all existing standard securities
     and other heritable charges affecting such Mortgaged Properties;
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                                                                              71

               (iv)  appropriate Land Registry application forms duly completed
     and accompanied by all necessary fees of the Land Registry;

               (v)  a certificate from DLA addressed to the Administrative Agent
     in a form approved by the Administrative Agent's attorneys; and

               (vi) validly executed standard securities over such Mortgaged
     Properties in favor of the Administrative Agent in forms approved by the
     Administrative Agent's attorneys.

          (s)  Mortgaged Properties in Jersey.  The Administrative Agent shall
have received in respect of those Mortgaged Properties situated in Jersey:

               (i)  a copy of the Deeds of Acquisition of such Mortgaged
     Properties by GEC Avery Limited (under its former name of W & T Avery
     Limited);

               (ii)  a certificate from Ogier & Le Masurier addressed to the
     Administrative Agent confirming that the freeholds of such Mortgaged
     Properties are owned by GEC Avery Limited and are free of all registered
     charges; and

               (iii) an executed billet in respect of the Foreign Guarantee of
     GEC Avery Limited.

          (t)  Mortgaged Properties in Guernsey.  The Administrative Agent shall
have received in respect of those Mortgaged Properties situated in Guernsey, a
copy of the conveyances of such Mortgaged Properties to GEC Avery Limited (under
its former name of W & T Avery Limited).

          (u)  Insurance.  The Administrative Agent shall have received
insurance certificates satisfying the requirements of Section 5.3 of the
Guarantee and Collateral Agreement.

          (v)  Reports.  Holdings shall have caused to be prepared a final due
diligence report of Ashurst Morris Crisp, as well as certain insurance reports,
in each case relating to Avery Berkel, and the Lenders shall have received
copies of such reports.

          (w)  Borrowing Base Report  The Administrative Agent shall have
received from Holdings the initial Borrowing Base Report dated as of the Closing
Date.

          (x)  Whitewash.  Within one Business Day of the Closing Date, all
requirements of Sections 151 through 158 of the Companies Act 1985 (England)
necessary to permit the Foreign Guarantors organized under the laws of the
England and Wales and Ireland, to which such requirements are applicable, to
enter into the Foreign Guarantees and Foreign Security Documents to which they
are parties shall have been satisfied.

          (y)  Conditions Subsequent Related to Mortgaged Properties in Jersey
and Guernsey.  Within ten Business Days of the Closing Date:

               (i) With respect of those Mortgaged Properties situated in
          Jersey:
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                                                                              72

               (A) prior to the registration of the charge against such
          Mortgaged Properties, Ogier & Le Masurier shall have received
          authorization from GEC Avery Limited to apply to the Royal Court of
          Jersey to record the change of name from W & T Avery Limited to GEC
          Avery Limited; and

               (B) the originals of the Foreign Guarantee and billet referred to
          in Section 5.1(s)(iii) shall have been remitted to Ogier & Le Masurier
          to enable the billet to be registered as a charge against such
          Mortgaged Properties and Ogier & Le Masurier shall have registered
          such billet with the Judicial Greffe in Jersey.

               (ii) With respect of those Mortgaged Properties situated in
     Guernsey:

               (A) the Administrative Agent shall have received a certificate
          from Ogier & Le Masurier addressed to the Administrative Agent
          confirming that GEC Avery Limited shall have consented to a bond;

               (B) prior to the registration of the bond against such Mortgaged
          Properties, Ogier & Le Masurier shall have received authorization from
          GEC Avery Limited in the form of a power of attorney to appear before
          the Conveyancing Court of Guernsey to consent to the bond; and

               (C) Ogier & Le Masurier shall have appeared before the
          Conveyancing Court of Guernsey and consented to the bond and the bond
          shall have been registered in Guernsey against such Mortgaged
          Properties.

          5.2  Conditions to Each Extension of Credit.  The agreement of each
Lender to make any extension of credit requested to be made by it hereunder on
any date (including, without limitation, its initial extension of credit) is
subject to the satisfaction of the following conditions precedent:

          (a)  Representations and Warranties.  Each of the representations and
warranties made by any Loan Party in or pursuant to the Loan Documents shall be
true and correct on and as of such date as if made on and as of such date,
except to the extent any of such representations and warranties relate to a
specific date, in which case such representations and warranties shall be true
and correct on and as of such date.

          (b)  No Default.  No Default or Event of Default shall have occurred
and be continuing on such date or after giving effect to the extensions of
credit requested to be made on such date.

Each borrowing by and issuance of a Letter of Credit on behalf of the Borrowers
hereunder shall constitute a representation and warranty by Holdings and the
Borrowers as of the date of such extension of credit that the conditions
contained in this Section 5.2 have been satisfied.
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                                                                              73

                       SECTION 6.  AFFIRMATIVE COVENANTS

          Holdings and the Borrowers hereby jointly and severally agree that, so
long as the Commitments remain in effect, any Letter of Credit remains
outstanding or any Loan or other amount is owing to any Lender or any Agent
hereunder, each of Holdings and each of the Borrowers shall and shall cause each
of its Subsidiaries to:

          6.1  Financial Statements.  Furnish to each Agent and each Lender:

          (a)  as soon as available, but in any event within 90 days after the
end of each fiscal year of Holdings, a copy of the audited consolidated balance
sheet of Holdings and its consolidated Subsidiaries as at the end of such year
and the related audited consolidated statements of income and of cash flows for
such year, setting forth in each case in comparative form the figures as of the
end of and for the previous year, reported on without qualification or
exception, by PriceWaterhouseCoopers LLP or other independent certified public
accountants of nationally recognized standing;

          (b)  as soon as available, but in any event not later than 45 days
after the end of each quarterly period of each fiscal year of Holdings, the
unaudited consolidated and consolidating balance sheets of Holdings and its
consolidated Subsidiaries as at the end of such quarter and the related
unaudited consolidated and consolidating statements of income and of cash flows
for such quarter and the portion of the fiscal year through the end of such
quarter (provided, that, no such consolidating statements of cash flows shall be
required for the fiscal quarter ended June 30, 2000), setting forth in each case
in comparative form the figures as of the end of and for the corresponding
period in the previous year and a comparison of such figures to the budget with
respect to such period previously delivered to the Lenders, certified by a
Responsible Officer as being fairly stated in all material respects (subject to
normal year-end audit adjustments) and a narrative discussion and analysis of
the financial condition and results of operations of Holdings and its
Subsidiaries for such fiscal quarter and for the period from the beginning of
the then current fiscal year to the end of such fiscal quarter, as compared to
the portion of the Projections covering such periods and to the comparable
periods of the previous year and to its budget with respect to such period
previously delivered to the Lenders; and

          (c)  as soon as available, but in any event not later than 45 days
after the end of each month occurring during each fiscal year of Holdings (other
than the third, sixth, ninth and twelfth such month), the unaudited consolidated
and consolidating balance sheets of Holdings and its Subsidiaries as at the end
of such month and the related unaudited consolidated and consolidating
statements of income and of cash flows for such month and the portion of the
fiscal year through the end of such month, setting forth in each case in
comparative form the figures as of the end of and for the corresponding period
in the previous year and a comparison of such figures to the budget with respect
to such period previously delivered to the Lenders, certified by a Responsible
Officer as being fairly stated in all material respects (subject to normal year-
end audit adjustments); provided, that, no such consolidating information shall
be required for the first fiscal year following the Closing Date and no such
consolidating statements of cash flows shall be required pursuant to this
paragraph at any time;

all such financial statements to be complete and correct in all material
respects and to be prepared in reasonable detail and in accordance with GAAP
applied consistently throughout the
<PAGE>

                                                                              74

periods reflected therein and with prior periods (except as approved by such
accountants or officer, as the case may be, and disclosed therein).

          6.2  Certificates; Other Information.  Furnish to each Agent and each
Lender, or, in the case of clause (h), to the relevant Lender:

          (a)  concurrently with the delivery of the financial statements
referred to in Section 6.1(a), a certificate of the independent certified public
accountants reporting on such financial statements stating that in making the
examination necessary therefor no knowledge was obtained of any Default or Event
of Default, except as specified in such certificate;

          (b)  concurrently with the delivery of any financial statements
pursuant to Section 6.1, (i) a certificate of a Responsible Officer stating
that, to the best of such Responsible Officer's knowledge, each Loan Party
during such period has observed or performed all of its covenants and other
agreements, and satisfied every condition, contained in this Agreement and the
other Loan Documents to which it is a party to be observed, performed or
satisfied by it, and that such Responsible Officer has obtained no knowledge of
any Default or Event of Default except as specified in such certificate and (ii)
in the case of quarterly financial statements, (x) a Compliance Certificate
containing all information and calculations necessary for determining compliance
by Holdings and its Subsidiaries with the provisions of this Agreement referred
to therein as of the last day of the fiscal quarter of Holdings and (y) to the
extent not previously disclosed to the Administrative Agent, a listing of any
county or state within the United States where any Loan Party keeps inventory or
equipment and of any Intellectual Property acquired by any Loan Party since the
date of the most recent list delivered pursuant to this clause (y) (or, in the
case of the first such list so delivered, since the Closing Date) or any
location where any Foreign Guarantor has any assets and where local law requires
any filing to be made and in which a filing has not previously been made;

          (c)  as soon as available, and in any event no later than the end of
each fiscal year of Holdings, a detailed consolidated and consolidating budget
for the following fiscal year (broken down on a consolidated basis by month)
(including a projected consolidated and consolidating balance sheet of Holdings
and its Subsidiaries as of the end of the following fiscal year, and the related
consolidated and consolidating statements of projected cash flow, projected
changes in financial position, projected income and projected calculations for
purposes of compliance with Section 7.1), and, as soon as available, significant
revisions, if any, of such budget and projections with respect to such fiscal
year (collectively, the "Projections"), which Projections shall in each case be
accompanied by a certificate of a Responsible Officer stating that such
Projections are based on reasonable estimates, information and assumptions and
that such Responsible Officer has no reason to believe that such Projections are
incorrect or misleading in any material respect;

          (d)  no later than 10 Business Days prior to the effectiveness
thereof, copies of substantially final drafts of any proposed amendment,
supplement, waiver or other modification with respect to the Senior Subordinated
Note Indenture or the Acquisition Agreement;

          (e)  within five days after the same are sent, copies of all financial
statements and reports that Holdings or the Borrower sends to the holders of any
class of its debt securities or
<PAGE>

                                                                              75

public equity securities and, within five days after the same are filed, copies
of all financial statements and reports that Holdings or the Borrower may make
to, or file with, the SEC or any similar foreign regulatory authority;

          (f) within 20 days after the end of each calendar month or at such
earlier time as the Administrative Agent may reasonably request, a Borrowing
Base Report setting forth the Borrowing Base as at the end of such calendar
month or other date so requested by the Administrative Agent;

          (g) within 20 days after the end of each fiscal quarter, an Accounts
Receivable aging report; and

          (h)  promptly, such additional financial and other information as any
Lender may from time to time reasonably request.

          6.3  Payment of Obligations.  Pay, discharge or otherwise satisfy at
or before maturity or before they become delinquent, as the case may be, all its
material obligations of whatever nature, except where the amount or validity
thereof is currently being contested in good faith by appropriate proceedings
and reserves in conformity with GAAP with respect thereto have been provided on
the books of Holdings or its Subsidiaries, as the case may be.

          6.4  Conduct of Business and Maintenance of Existence, etc.    (a)
(i)   Preserve, renew and keep in full force and effect its corporate or other
existence and (ii) take all reasonable action to maintain all rights, privileges
and franchises necessary or desirable in the normal conduct of its business,
except, in each case, as otherwise permitted by Section 7.4 and except, in the
case of clause (ii) above, to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect and (b) comply with all
Contractual Obligations and Requirements of Law, except to the extent that
failure to comply therewith could not, in the aggregate, reasonably be expected
to have a Material Adverse Effect.

          6.5  Maintenance of Property; Insurance.  (a)  Keep all Property and
systems useful and necessary in its business in good working order and
condition, ordinary wear and tear excepted and (b) maintain with financially
sound and reputable insurance companies insurance on all its Property in at
least such amounts and against at least such risks (but including in any event
public liability, product liability and business interruption) as are usually
insured against in the same general area by companies engaged in the same or a
similar business.

          6.6  Inspection of Property; Books and Records; Discussions;
Collateral Reports.  (a)  Keep proper books of records and account in which
full, true and correct entries in conformity with GAAP and all Requirements of
Law shall be made of all dealings and transactions in relation to its business
and activities, (b) permit representatives of any Lender to visit and inspect
any of its properties and examine and make abstracts from any of its books and
records at any reasonable time and as often as may reasonably be desired and to
discuss the business, operations, properties and financial and other condition
of Holdings and its Subsidiaries with officers and employees of Holdings and its
Subsidiaries and with its independent certified public accountants and (c) no
more frequently than two times during each calendar year (one of which shall
correspond to the preparation of Holdings' annual financial
<PAGE>

                                                                              76

statements), or more frequently as determined by the Administrative Agent if an
Event of Default shall have occurred and be continuing, upon the request of the
Administrative Agent, obtain and deliver to the Administrative Agent, or, if the
Administrative Agent so elects, cooperate with the Administrative Agent in the
Administrative Agent's obtaining, at the expense of Holdings and the Borrowers,
a report of an independent collateral auditor satisfactory to the Administrative
Agent (which may be affiliated with one of the Lenders) with respect to the
Accounts Receivable and inventory components included in the Borrowing Base,
which report shall indicate whether or not the information set forth in the
Borrowing Base Report most recently delivered is accurate and complete in all
material respects based upon a review by such auditors of the Accounts
Receivable (including verification with respect to the amount, aging, identity
and credit of the respective account debtors and the billing practices of the
Holdings or its applicable Subsidiaries) and inventory (including verification
as to the value, location and respective types).

          6.7  Notices.  Promptly give written notice to the Administrative
Agent and each Lender of:

          (a)  the occurrence of any Default or Event of Default;

          (b)  any (i) default or event of default under any Contractual
Obligation of Holdings or any of its Subsidiaries or (ii) litigation,
investigation or proceeding which may exist at any time between Holdings or any
of its Subsidiaries and any Governmental Authority, that in either case, if not
cured or if adversely determined, as the case may be, could reasonably be
expected to have a Material Adverse Effect;

          (c)  any litigation or proceeding affecting Holdings or any of its
Subsidiaries in which the amount involved is $1,000,000 or more and not covered
by insurance or in which injunctive or similar relief affecting any material
activity, operation or property of Holdings or any such Subsidiary is sought;

          (d)  the following events, as soon as possible and in any event within
30 days after Holdings knows or has reason to know thereof:  (i) the occurrence
of any Reportable Event with respect to any Plan, a failure to make any required
contribution to a Plan, the creation of any Lien in favor of the PBGC or a Plan
or any withdrawal from, or the termination, Reorganization or Insolvency of, any
Multiemployer Plan or (ii) the institution of proceedings or the taking of any
other action by the PBGC or Holdings or any Commonly Controlled Entity or any
Multiemployer Plan with respect to the withdrawal from, or the termination,
Reorganization or Insolvency of, any Plan; and

          (e)  any development or event that has had or could reasonably be
expected to have a Material Adverse Effect.

Each notice pursuant to this Section shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action Holdings or the relevant Subsidiary proposes to take
with respect thereto.

          6.8  Environmental Laws.  (a)  Comply in all material respects with,
and ensure compliance in all material respects by all tenants and subtenants, if
any, with, all applicable
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                                                                              77

Environmental Laws, and obtain and comply in all material respects with and
maintain, and ensure that all tenants and subtenants obtain and comply in all
material respects with and maintain, any and all licenses, approvals,
notifications, registrations or permits required by applicable Environmental
Laws.

          (b)  Conduct and complete all investigations, studies, sampling and
testing, and all remedial, removal and other actions required under
Environmental Laws and promptly comply in all material respects with all lawful
orders and directives of all Governmental Authorities regarding Environmental
Laws.

          6.9  Additional Collateral, etc.  (a)  With respect to any Property
acquired after the Closing Date by Holdings or any of the Guarantors (other than
(x) any Property described in paragraph (b) or paragraph (c) of this Section,
(y) any Property subject to a Lien expressly permitted by Section 7.3(g) and (z)
Property acquired by an Excluded Subsidiary) as to which the Administrative
Agent, for the benefit of the Lenders, does not have a perfected Lien, promptly
(i) execute and deliver to the Administrative Agent such amendments to the
Guarantee and Collateral Agreement or relevant Foreign Security Document or such
other documents as the Administrative Agent deems necessary or advisable to
grant to the Administrative Agent, for the benefit of the Lenders, a security
interest in such Property and (ii) take all actions necessary or advisable to
grant to the Administrative Agent, for the benefit of the Lenders, a perfected
first priority security interest in such Property, including without limitation,
the filing of Uniform Commercial Code financing statements or similar filings in
such jurisdictions as may be required by the Guarantee and Collateral Agreement
or Foreign Security Document, as the case may be, or by law or as may be
requested by the Administrative Agent.

          (b)  With respect to any fee interest in any real property having a
value (together with improvements thereof) of at least $1,000,000 acquired after
the Closing Date by Holdings or any of its Subsidiaries (other than any such
real property owned by an Excluded Subsidiary or subject to a Lien expressly
permitted by Section 7.3(g)), promptly (i) execute and deliver a first priority
Mortgage in favor of the Administrative Agent, for the benefit of the Lenders,
covering such real property, (ii) if requested by the Administrative Agent,
provide the Lenders with (x) title and extended coverage insurance covering such
real property in an amount at least equal to the purchase price of such real
property (or such other amount as shall be reasonably specified by the
Administrative Agent) as well as, if the real property is located in the United
States of America, a current ALTA survey thereof, together with a surveyor's
certificate and (y) any consents or estoppels reasonably deemed necessary or
advisable by the Administrative Agent in connection with such Mortgage, each of
the foregoing in form and substance reasonably satisfactory to the
Administrative Agent and (iii) if requested by the Administrative Agent, deliver
to the Administrative Agent legal opinions relating to the matters described
above, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent.

          (c)  With respect to any new Subsidiary (other than an Excluded
Subsidiary) created or acquired after the Closing Date (which, for the purposes
of this paragraph, shall include any existing Subsidiary that ceases to be an
Excluded Subsidiary), by Holdings or any of its Subsidiaries which (along with
any of its Subsidiaries) has Total Net Assets in excess of $750,000 or which had
(for the most recently concluded four fiscal quarter period) Consolidated
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                                                                              78

EBITDA in excess of $500,000, promptly (i) execute and deliver to the
Administrative Agent such amendments to the Guarantee and Collateral Agreement,
if such new Subsidiary is a Domestic Subsidiary, or a Foreign Guarantee and
Foreign Collateral Document in conformity with local law, if such new Subsidiary
is a Foreign Subsidiary, as the Administrative Agent deems necessary or
advisable to grant to the Administrative Agent, for the benefit of the Lenders,
a perfected first priority security interest in the Capital Stock of such new
Subsidiary that is owned by Holdings or any of its Subsidiaries, (ii) deliver to
the Administrative Agent the certificates representing such Capital Stock,
together with undated stock powers, in blank, executed and delivered by a duly
authorized officer of Holdings or such Subsidiary, as the case may be, or take
such actions as are required under local law to perfect the security interest in
such Capital Stock, (iii) cause such new Subsidiary (A) to become a party to the
Guarantee and Collateral Agreement, if such new Subsidiary is a Domestic
Subsidiary, or to execute a Foreign Guarantee and a Foreign Collateral Document
in conformity with local law, if such new Subsidiary is a Foreign Subsidiary,
and (B) to take such actions necessary or advisable to grant to the
Administrative Agent for the benefit of the Lenders a perfected first priority
security interest in the Collateral described in the Guarantee and Collateral
Agreement or the new Foreign Collateral Document, as the case may be, with
respect to such new Subsidiary, including, without limitation, the filing of
Uniform Commercial Code financing statements or similar filings in such
jurisdictions as may be required by the Guarantee and Collateral Agreement or
Foreign Collateral Document, as the case may be, or by law or as may be
requested by the Administrative Agent, and (iv) if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent.

          (d)  With respect to any new Excluded Subsidiary which (along with any
of its Subsidiaries) has Total Net Assets in excess of $750,000 or which had
(for the most recently concluded four fiscal quarter period) Consolidated EBITDA
in excess of $500,000, created or acquired after the Closing Date by Holdings or
any of its Subsidiaries (other than by any Excluded Subsidiaries), promptly (i)
execute and deliver to the Administrative Agent such amendments to the Guarantee
and Collateral Agreement or the relevant Foreign Collateral Document or such
other documents as the Administrative Agent deems necessary or advisable in
order to grant to the Administrative Agent, for the benefit of the Lenders, a
perfected first priority security interest in the Capital Stock of such new
Subsidiary that is owned by Holdings or any of its Subsidiaries (other than any
Excluded Subsidiaries), (ii) deliver to the Administrative Agent the
certificates representing such Capital Stock, together with undated stock
powers, in blank, executed and delivered by a duly authorized officer of
Holdings or such Subsidiary, as the case may be, or take such actions as are
required by local law and take all such other action as may be necessary or, in
the opinion of the Administrative Agent, desirable to perfect the Lien of the
Administrative Agent thereon, and (iii) if requested by the Administrative
Agent, deliver to the Administrative Agent legal opinions relating to the
matters described above, which opinions shall be in form and substance, and from
counsel, reasonably satisfactory to the Administrative Agent.

          (e)  Within 180 days following the Closing Date, to the extent the
Excepted UK Subsidiaries have not been dissolved or sold in compliance with the
terms of this Agreement, cause the Excepted UK Subsidiaries to become parties to
a Foreign Guarantee and Foreign
<PAGE>

                                                                              79

Collateral Document, substantially in the forms of such documents executed on
the Closing Date by the Foreign Guarantors organized under the laws of the
United Kingdom, take the steps referred to in Section 5.1(w) with respect to the
Excepted UK Subsidiaries, provide corporate resolutions and constituent
documents for the Excepted UK Subsidiaries substantially similar to those
provided on the Closing Date by the other Foreign Guarantors organized under the
laws of the United Kingdom, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent, and take all such other action as may be necessary or, in the opinion of
the Administrative Agent, desirable to perfect the Lien of the Administrative
Agent on the assets owned by the Excepted UK Subsidiaries.

          (f)  If at any time the portion of the Total Net Assets of Holdings
and its Subsidiaries constituted by the sum of (i) the Total Net Assets of all
of the non-Guarantor Subsidiaries, taken as a whole, and (ii) the Total Net
Assets of all Guarantor Subsidiaries which do not at such time constitute
Collateral exceeds 25%, or the portion of the Consolidated EBITDA of Holdings
and its Subsidiaries constituted by the Consolidated EBITDA of all of the non-
Guarantor Subsidiaries, taken as a whole, exceeds 12.5%, in each such case (any
such case constituting a "Deficiency Condition"), either (A) cause one or more
non-Guarantor Subsidiaries to become party to a Foreign Guarantee and Foreign
Collateral Document, provide corporate resolutions and constituent documents for
any such Subsidiaries and deliver to the Administrative Agent legal opinions
relating to the matters described above or (B) pledge additional assets of any
Guarantor Subsidiary which do not at such time constitute Collateral, in each
such case, in form and substance reasonably satisfactory to the Administrative
Agent, and take all such other action as may be necessary or, in the opinion of
the Administrative Agent, desirable to perfect the Lien of the Administrative
Agent on the assets owned by any such Subsidiaries, such that after giving
effect thereto no Deficiency Condition exists.

          6.10  Further Assurances.  From time to time execute and deliver, or
cause to be executed and delivered, such additional instruments, certificates or
documents, and take all such actions, as the Administrative Agent may reasonably
request for the purposes of implementing or effectuating the provisions of this
Agreement and the other Loan Documents, or of more fully perfecting or renewing
the rights of the Administrative Agent and the Lenders with respect to the
Collateral (or with respect to any additions thereto or replacements or proceeds
thereof or with respect to any other property or assets hereafter acquired by
Holdings or any Guarantor which may be deemed to be part of the Collateral)
pursuant hereto or thereto.  Upon the exercise by the Administrative Agent or
any Lender of any power, right, privilege or remedy pursuant to this Agreement
or the other Loan Documents which requires any consent, approval, recording,
qualification or authorization of any Governmental Authority, Holdings will
execute and deliver, or will cause the execution and delivery of, all
applications, certifications, instruments and other documents and papers that
the Administrative Agent or such Lender may be required to obtain from Holdings
or any of its Subsidiaries for such governmental consent, approval, recording,
qualification or authorization.
<PAGE>

                                                                              80

                        SECTION 7.  NEGATIVE COVENANTS

          Holdings and the Borrowers hereby jointly and severally agree that, so
long as the Commitments remain in effect, any Letter of Credit remains
outstanding or any Loan or other amount is owing to any Lender or any Agent
hereunder, each of Holdings and each of the Borrowers shall not, and shall not
permit any of its Subsidiaries to, directly or indirectly:

          7.1  Financial Condition Covenants.

          (a)  Consolidated Leverage Ratio.  Permit the Consolidated Leverage
Ratio as at the last day of any period of four consecutive fiscal quarters of
Holdings (or, if less, the number of full fiscal quarters subsequent to the
Closing Date) ending with any fiscal quarter set forth below to exceed the ratio
set forth below opposite such fiscal quarter:

Fiscal Quarter                                 Consolidated Leverage Ratio
--------------                                 ---------------------------
FQ2 2000                                         5.00 to 1.00

FQ3 2000                                         4.75 to 1.00

FQ4 2000                                         4.65 to 1.00

FQ1 2001 - FQ2 2001                              4.50 to 1.00

FQ3 2001 - FQ2 2002                              4.25 to 1.00

FQ3 2002 - FQ4 2002                              4.00 to 1.00

FQ1 2003 - FQ2 2003                              3.85 to 1.00

FQ3 2003 - FQ4 2003                              3.75 to 1.00

FQ1 2004 - FQ2 2004                              3.65 to 1.00

FQ3 2004 - FQ4 2004 (or, if earlier, the         3.50 to 1.00
 Consolidated Leverage Ratio Stepdown Date)

FQ1 2005 - FQ2 2005                              3.35 to 1.00

FQ3 2005 - FQ4 2005                              3.25 to 1.00

FQ1 2006 and thereafter                          3.00 to 1.00

; provided, that for the purposes of determining the ratio described above as at
the end of FQ2 2000, FQ3 2000 and FQ4 2000, Consolidated EBITDA for the relevant
period shall be deemed to equal the sum of (i) Consolidated EBITDA (without
giving effect to the second proviso in the definition thereof) for such fiscal
quarter (and, in the case of the latter two such determinations, each previous
fiscal quarter commencing after the Closing Date) multiplied by 4, 2 and 4/3,
respectively, and (ii) the relevant amount of the add-back for such fiscal
quarter set forth in the second proviso to the definition of "Consolidated
EBITDA"; provided, further, that from and
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                                                                              81

after any Conversion Date until the date of any repayment of the Seller
Subordinated Notes, the foregoing ratios shall be increased by 0.25 (or such
less amount based on the ratable amount of PIK Preferred Stock converted into
Seller Subordinated Notes on such date).

          (b)  Consolidated Interest Coverage Ratio.  Permit the Consolidated
Interest Coverage Ratio for any period of four consecutive fiscal quarters of
Holdings (or, if less, the number of full fiscal quarters subsequent to the
Closing Date) ending with any fiscal quarter set forth below to be less than the
ratio set forth below opposite such fiscal quarter:

Fiscal Quarter                          Consolidated Interest Coverage Ratio
--------------                          ------------------------------------
FQ2 2000                                    1.80 to 1.00

FQ3 2000                                    1.90 to 1.00

FQ4 2000 - FQ1 2001                         1.95 to 1.00

FQ2 2001 - FQ4 2001                         2.00 to 1.00

FQ1 2002 - FQ2 2002                         2.05 to 1.00

FQ3 2002                                    2.10 to 1.00

FQ4 2002 - FQ2 2004                         2.15 to 1.00

FQ3 2004 - FQ1 2005                         2.25 to 1.00

FQ2 2005 - FQ4 2005                         2.35 to 1.00

FQ1 2006 and thereafter                     2.50 to 1.00

          (c)  Consolidated Fixed Charge Coverage Ratio.  Permit the
Consolidated Fixed Charge Coverage Ratio for any period of four consecutive
fiscal quarters of Holdings (or, if less, the number of full fiscal quarters
subsequent to the Closing Date) ending with any fiscal quarter set forth below
to be less than the ratio set forth below opposite such fiscal quarter:

Fiscal Quarter                         Consolidated Fixed Charge Coverage Ratio
--------------                         ----------------------------------------
FQ2 2000 - FQ4 2000                          1.10 to 1.00

FQ1 2001 - FQ2 2001                          1.15 to 1.00

FQ3 2001 - FQ4 2001                          1.20 to 1.00

FQ1 2002 - FQ2 2002                          1.25 to 1.00

FQ3 2002 - FQ1 2003                          1.30 to 1.00

FQ2 2003                                     1.25 to 1.00
<PAGE>

                                                                              82

FQ3 2003                                     1.20 to 1.00

FQ4 2003                                     1.15 to 1.00

FQ1 2004                                     1.10 to 1.00

FQ2 2004 and thereafter                      1.00 to 1.00

          (d)  Maintenance of Net Worth.  Permit Consolidated Tangible Net Worth
as of the last day of any fiscal quarter of Holdings ending during any fiscal
year set forth below to be less than the amount set forth below opposite such
fiscal year:

Fiscal Quarter                              Consolidated Tangible Net Worth
--------------                              -------------------------------
FQ2 2000 - FQ1 2001                               ($130,000,000)

FQ2 2001                                          ($127,500,000)

FQ3 2001                                          ($125,000,000)

FQ4 2001                                          ($122,500,000)

FQ1 2002                                          ($120,000,000)

FQ2 2002                                          ($117,500,000)

FQ3 2002                                          ($115,000,000)

FQ4 2002                                          ($112,500,000)

FQ1 2003                                          ($110,000,000)

FQ2 2003                                          ($107,500,000)

FQ3 2003                                          ($105,000,000)

FQ4 2003                                          ($102,500,000)

FQ1 2004                                          ($100,000,000)

FQ2 2004                                           ($97,500,000)

FQ3 2004                                           ($95,000,000)

FQ4 2004                                           ($92,500,000)

FQ1 2005                                           ($90,000,000)

FQ2 2005                                           ($87,500,000)

FQ3 2005                                           ($85,000,000)
<PAGE>

                                                                              83

FQ4 2005                                           ($82,500,000)

FQ1 2006                                           ($80,000,000)

FQ2 2006                                           ($77,500,000)

FQ3 2006                                           ($75,000,000)

FQ4 2006 and thereafter                            ($72,500,000)

          7.2  Limitation on Indebtedness.  Create, incur, assume or suffer to
exist any Indebtedness, except:

          (a)  Indebtedness of any Loan Party pursuant to any Loan Document;

          (b)  Indebtedness of either Borrower to any Subsidiary and of any
Wholly Owned  Guarantor to either Borrower or any other Subsidiary;

          (c)  Indebtedness (including, without limitation, Capital Lease
Obligations) secured by Liens permitted by Section 7.3(g) in an aggregate
principal amount not to exceed $2,500,000 at any one time outstanding;

          (d)  Indebtedness outstanding on the date hereof and listed on
Schedule 7.2(d) and any refinancings, refundings, renewals or extensions thereof
(without any increase in the principal amount thereof or any shortening of the
maturity of any principal amount thereof);

          (e)  Guarantee Obligations made in the ordinary course of business by
Holdings or any of its Subsidiaries of obligations of either Borrower or any
Guarantor;

          (f)  (i) Indebtedness of the Borrower in respect of the Senior
Subordinated Notes in an aggregate principal amount not to exceed euro
100,000,000 and (ii) Guarantee Obligations of any Guarantor in respect of such
Indebtedness; provided that such Guarantee Obligations are subordinated to the
obligations of such Guarantor under the Guarantee and Collateral Agreement and
the Foreign Guarantees to the same extent as the obligations of the Borrower in
respect of the Senior Subordinated Notes are subordinated to the Obligations;

          (g)  (i) unsecured Indebtedness incurred or assumed in connection with
any Permitted Acquisitions, in an aggregate principal amount not to exceed
$5,000,000 at any one time outstanding and (ii) secured Indebtedness assumed in
connection with any Permitted Acquisitions so long as the aggregate principal
amount of all such secured Indebtedness does not exceed $5,000,000 at any one
time outstanding and any such security interest covers only the real or personal
property acquired in such Permitted Acquisition;

          (h)  Indebtedness of Holdings in respect of any promissory notes
issued by Holdings to certain members of its management as permitted by 7.9(d)
hereof as payment for the redemption by Holdings of certain shares of its
Capital Stock issued to such member;

          (i)  unsecured Indebtedness of any non-Guarantor Subsidiary to either
Borrower or any Guarantor in an aggregate principal amount for all non-Guarantor
Subsidiaries not to exceed $5,000,000 at any one time outstanding (of which no
more than $1,000,000 may be loans
<PAGE>

                                                                              84

to entities domiciled in any one country) and which, when combined with the
Investments described in Section 7.8(k), shall not exceed $7,500,000; provided
that such loans are evidenced by promissory notes or other instruments which
shall be pledged to the Administrative Agent;

          (j)  Indebtedness in the form of earnouts payable to management of
Persons acquired in connection with a Permitted Acquisition, in an aggregate
principal amount not to exceed $4,000,000;

          (k)  Indebtedness of Holdings in the form of the Seller Subordinated
Notes in connection with the conversion of the PIK Preferred Stock described in
Section 7.6(g) in an aggregate principal amount not to exceed euro 10,000,000
(plus any accrued dividends thereon paid prior to such conversion in the form of
additional PIK Preferred Stock); and

          (l)  additional unsecured Indebtedness of any Subsidiary in an
aggregate principal amount (for all Subsidiaries) not to exceed $3,000,000 at
any one time outstanding.

          7.3  Limitation on Liens.  Create, incur, assume or suffer to exist
any Lien upon any of its Property, whether now owned or hereafter acquired,
except for:

          (a)  Liens for taxes not yet due or which are being contested in good
faith by appropriate proceedings, provided that adequate reserves with respect
thereto are maintained on the books of Holdings or its Subsidiaries, as the case
may be, in conformity with GAAP;

          (b)  carriers', warehousemen's, mechanics', materialmen's, repairmen's
or other like Liens arising in the ordinary course of business which are not
overdue for a period of more than 30 days or that are being contested in good
faith by appropriate proceedings;

          (c)  pledges or deposits in connection with workers' compensation,
unemployment insurance and other social security legislation;

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

          (e)  easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business that, in the aggregate,
are not substantial in amount and which do not in any case materially detract
from the value of the Property subject thereto or materially interfere with the
ordinary conduct of the business of Holdings or any of its Subsidiaries;

          (f)  Liens in existence on the date hereof listed on Schedule 7.3(f),
securing Indebtedness permitted by Section 7.2(d), provided that no such Lien is
spread to cover any additional Property after the Closing Date and that the
amount of Indebtedness secured thereby is not increased;

          (g)  Liens securing Indebtedness of Holdings or any Subsidiary
incurred pursuant to Section 7.2(c) to finance the acquisition of fixed or
capital assets, provided that (i) such Liens
<PAGE>

                                                                              85

shall be created substantially simultaneously with the acquisition of such fixed
or capital assets, (ii) such Liens do not at any time encumber any Property
other than the Property financed by such Indebtedness, (iii) the amount of
Indebtedness secured thereby is not increased and (iv) the amount of
Indebtedness initially secured thereby is not less than 80%, or more than 100%
of the purchase price of such fixed or capital asset;

          (h)  Liens created pursuant to the Security Documents;

          (i)  any interest or title of a lessor under any lease entered into by
Holdings or any other Subsidiary in the ordinary course of its business and
covering only the assets so leased; and

          (j)  liens securing Indebtedness permitted under Section 7.2(g)(ii);
provided that such lien was in existence prior to the Permitted Acquisition and
extends only to the real or personal property subject to such lien prior to the
Permitted Acquisition and not to any other property.

          7.4  Limitation on Fundamental Changes.  Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or Dispose of all or substantially all
of its Property or business, except that:

          (a)  any Subsidiary of Holdings may be merged or consolidated (i) with
or into either Borrower (provided that the relevant Borrower shall be the
continuing or surviving corporation), (ii) with or into any Guarantor (provided
that (x) the Guarantor shall be the continuing or surviving corporation or (y)
simultaneously with such transaction, the continuing or surviving corporation
shall become a Guarantor and Holdings and the Borrowers shall comply with
Section 6.9 in connection therewith) or (iii) if such Subsidiary is not a
Guarantor, with or into another Subsidiary which is not a Guarantor; and

          (b)  any Subsidiary of Holdings may Dispose of any or all of its
assets (upon voluntary liquidation or otherwise) to Holdings or any Guarantor or
if such Subsidiary is not a Guarantor, to another Subsidiary which is not a
Guarantor.

          7.5  Limitation on Disposition of Property.  Dispose of any of its
Property (including, without limitation, receivables and leasehold interests),
whether now owned or hereafter acquired, or, in the case of any Subsidiary,
issue or sell any shares of such Subsidiary's Capital Stock to any Person,
except:

          (a)  the Disposition of obsolete, redundant or worn out property in
the ordinary course of business;

          (b)  the sale of inventory in the ordinary course of business;

          (c)  Dispositions permitted by Section 7.4(b);

          (d)  the sale or issuance of any Subsidiary's Capital Stock (i) to
Holdings or any Guarantor or (ii) if such Subsidiary is not wholly-owned by a
Guarantor, on a proportionate basis
<PAGE>

                                                                              86

(based on ownership percentage) to any other non-Guarantor Subsidiary which at
the time of such sale or issuance owns Capital Stock in the selling or issuing
Subsidiary;

          (e)  the sale of the West Bromwich facility at fair market value and
on commercially reasonable terms;

          (f)  the sale (as a stock sale or asset sale) of the slicer facility
owned by Berkel in LaPorte, Indiana;

          (g)  the Disposition of other assets having a fair market value not to
exceed $5,000,000 in the aggregate for any fiscal year of Holdings; and

          (h)  Dispositions constituting Recovery Events, provided, that the
requirements of Section 2.14(b) are complied with in connection therewith.

          7.6  Limitation on Restricted Payments.  Declare or pay any dividend
on, or make any payment on account of, or set apart assets for a sinking or
other analogous fund for, the purchase, redemption, defeasance, retirement or
other acquisition of, any Capital Stock of Holdings or any Subsidiary, whether
now or hereafter outstanding, or make any other distribution in respect thereof,
either directly or indirectly, whether in cash or property or in obligations of
Holdings or any Subsidiary, or enter into any derivatives or other transaction
with any financial institution, commodities or stock exchange or clearinghouse
(a "Derivatives Counterparty") obligating Holdings or any Subsidiary to make
payments to such Derivatives Counterparty as a result of any change in market
value of any such Capital Stock (collectively, "Restricted Payments"), except
that:

          (a)  any Subsidiary may make Restricted Payments to Holdings or any
Guarantor or if such Subsidiary is not a Guarantor, to another Subsidiary which
is not a Guarantor and which is the first Subsidiary's immediate parent;

          (b)  Holdings may make Restricted Payments in the form of common stock
of Holdings;

          (c)  so long as no Default or Event of Default shall have occurred and
be continuing, Holdings may (i) purchase Holdings' common stock or common stock
options from present or former directors, officers or employees of Holdings or
any Subsidiary upon the death, disability or termination of employment of such
officer or employee, provided, that the aggregate amount of payments under this
clause (i) subsequent to the date hereof (net of any proceeds received by
Holdings subsequent to the date hereof in connection with resales of any common
stock or common stock options so purchased) shall not exceed $5,000,000 during
the term of this Agreement and $2,000,000 in any consecutive twelve-month period
and (ii) pay quarterly management services fees to the Sponsor pursuant to the
Management Agreement in an aggregate amount not to exceed (x) $125,000 in any
fiscal quarter plus (y) the amount of management services fees, if any, which
are in arrears under the Management Agreement, provided, however, that the
aggregate amount of all fees to be paid in any fiscal quarter under this
subparagraph (ii) shall not exceed 150% of the amount otherwise required to be
paid by clause (x) of this subparagraph (ii); and provided, further, that such
payments shall not be made
<PAGE>

                                                                              87

earlier than ten (10) days prior to the date such payments are due and payable
pursuant to the terms of the Management Agreement;

          (d)  Holdings may make a Restricted Payment in the form of promissory
notes issued by Holdings to repurchase or redeem equity interests pursuant to
certain buy-back arrangements with certain members of Holdings' management,
provided that (i) no Default or Event of Default then exists or would result
after the making of such Restricted Payment, (ii) the terms of such notes are
acceptable to the Agents in all respects and (iii) such notes contain
subordination provisions acceptable to the Agents;

          (e)  Holdings may redeem, on or after December 31, 2005, the Class C
membership interests in the Company pursuant to the terms of its operating
agreement with respect to such interests as in effect on the Closing Date;

          (f)  Holdings may pay dividends on the PIK Preferred Stock in the form
of additional PIK Preferred Stock, and at any time after the third anniversary
of the Closing Date so long as no Default or Event of Default shall have
occurred and is then continuing or would occur as a result thereof, Holdings may
pay cash dividends on the PIK Preferred Stock in an amount not to exceed euro
1,200,000 in any consecutive twelve month period (plus 12% of the amount by
which the outstanding amount of the PIK Preferred Stock shall have increased as
a result of the payment of dividends thereon in the form of additional PIK
Preferred Stock); and

          (g)  at any time after the first anniversary of the Closing Date and
so long as the Consolidated Interest Coverage Ratio (excluding the add-backs
specified in the second proviso of the definition of "Consolidated EBITDA") at
the end of the most recently concluded fiscal quarter is not less than 2.50 to
1.00, Holdings may, at the request of the holders of the PIK Preferred Stock,
convert all or a portion of the PIK Preferred Stock into senior subordinated
notes (the "Seller Subordinated Notes") of the Borrower having terms (including
as to maturity) substantially identical to the Senior Subordinated Notes.

          7.7  Limitation on Capital Expenditures.  Make or commit to make any
Capital Expenditure, except Capital Expenditures of Holdings and its
Subsidiaries in the ordinary course of business not exceeding $12,500,000 in any
fiscal year (or, during the period from the Closing Date to March 31, 2001,
$10,000,000); provided, that (i) up to 50% of any such amount referred to above,
if not so expended in the fiscal year for which it is permitted, may be carried
over for expenditure in the next succeeding fiscal year and (ii) Capital
Expenditures made pursuant to this clause (a) during any fiscal year shall be
deemed made, first, in respect of amounts permitted for such fiscal year as
provided above and second, in respect of amounts carried over from the prior
fiscal year pursuant to subclause (i) above.

          7.8  Limitation on Investments.  Make any advance, loan, extension of
credit (by way of guaranty or otherwise) or capital contribution to, or purchase
any Capital Stock, bonds, notes, debentures or other debt securities of, or any
assets constituting an ongoing business from, or make any other investment in,
any other Person (all of the foregoing, "Investments"), except:

          (a)  extensions of trade credit in the ordinary course of business;
<PAGE>

                                                                              88

          (b)  investments in Cash Equivalents;

          (c)  Investments arising in connection with the incurrence of
Indebtedness permitted by Section 7.2(b) and (e);

          (d)  loans and advances to employees of Holdings, the Borrowers or any
Subsidiaries of Holdings in the ordinary course of business (including, without
limitation, for travel, entertainment and relocation expenses and for the
purchase of Capital Stock in Holdings) in an aggregate amount for Holdings, the
Borrowers and Subsidiaries of Holdings not to exceed $1,500,000 at any one time
outstanding;

          (e)  the Acquisition;

          (f)  Investments in assets useful in the Borrower's business made by
the Borrower or any of its Subsidiaries with the proceeds of any Reinvestment
Deferred Amount;

          (g)  Investments (other than those relating to the incurrence of
Indebtedness permitted by Section 7.8(c)) by Holdings or any of its Subsidiaries
in either Borrower or any Person that, prior to such Investment, is a Guarantor;

          (h)  Investments consisting of promissory notes or other obligations
or securities received as proceeds of asset dispositions permitted by Section
7.5;

          (i)  Investments in connection with Hedge Agreements so long as such
arrangements are in the ordinary course of business and not for speculative
purposes;

          (j) any Purchase of any Person or business, either through the
purchase of the assets (including the goodwill) of such Person or business or
the purchase of 100% of the Capital Stock of such Person, if each of the
following conditions is satisfied: (i) the requirements of Section 6.9 have been
satisfied with respect to such Purchase and Holdings shall be in pro forma
compliance with Section 7.1 both before and after giving effect to such Purchase
(as if such acquisition had been consummated on the first day of the relevant
period and assuming adequately documented reductions in management compensation,
rental expenses and, with the prior written approval of the Agents (which
approval shall not be unreasonably withheld), other reasonable cost savings,
expenses and other income statement or operating statement adjustments which are
attributable to the change in ownership and/or management resulting from such
acquisition shall be deemed to have been realized on the first day of such
period); (ii) no Default or Event of Default has occurred and is continuing, or
would occur after giving effect to such Purchase; (iii) the aggregate Purchase
Prices of all such Purchases, shall not exceed $10,000,000 in any fiscal year
(iv) any such Purchase shall have been approved by the Board of Directors or
such comparable governing body of the Person or business being acquired (all
such Purchases, the "Permitted Acquisitions") and (v) after giving effect to any
such Purchase, the sum of (i) cash or Cash Equivalents on the Company's balance
sheet in excess of $5,000,000 and (ii) the aggregate of the Available Revolving
Credit Commitments of all the Lenders shall be at least $10,000,000 ; provided,
that if at any time after the first anniversary of the Closing Date the
Consolidated Leverage Ratio as of the last day of the most recently completed
fiscal quarter for which the relevant financial information is available both
before and after giving pro forma effect
<PAGE>

                                                                              89

for such Permitted Acquisition is less than 3.50 to 1.0, then the amount
referred to in clause (iii) shall be increased to $15,000,000 (and if
availability under this proviso is utilized the Consolidated Leverage Ratio
Stepdown Date shall occur);

          (k)  Investments in non-Guarantor Subsidiaries of Holdings, provided
that the parent of such Subsidiary remains a Borrower or Guarantor hereunder,
the aggregate amount of such Investments shall not exceed $5,000,000 and the
aggregate amount of such Investments, when combined with the aggregate amount of
intercompany loans made in reliance on Section 7.2(i) and outstanding at such
time, shall not exceed $7,500,000; and

          (l)  in addition to investments otherwise expressly permitted by this
Section 7.8, investments by Holdings or any of its Subsidiaries in an aggregate
amount (valued at cost) not to exceed $5,000,000 in the aggregate during the
term of this Agreement.

          7.9  Limitation on Optional Payments and Modifications of Debt
Instruments, etc.   (a)  Make or offer to make any optional or voluntary
payment, prepayment, repurchase or redemption of, or otherwise voluntarily or
optionally defease, the Senior Subordinated Notes or the Seller Subordinated
Notes, or segregate funds for any such payment, prepayment, repurchase,
redemption or defeasance, or enter into any derivative or other transaction with
any Derivatives Counterparty obligating  Holdings or any Subsidiary to make
payments to such Derivatives Counterparty as a result of any change in market
value of the Senior Subordinated Notes or the Seller Subordinated Notes, (b)
amend, modify or otherwise change, or consent or agree to any amendment,
modification, waiver or other change to, any of the terms of the Senior
Subordinated Notes or the Seller Subordinated Notes (other than any such
amendment, modification, waiver or other change which (i) would extend the
maturity or reduce the amount of any payment of principal thereof, reduce the
rate or extend the date for payment of interest thereon or relax any covenant or
other restriction applicable to Holdings or any of its Subsidiaries and (ii)
does not involve the payment of a consent fee),  (c) designate any Indebtedness
(other than the Obligations) as "Designated Senior Debt" for the purposes of the
Senior Subordinated Note Indenture or make any similar designation with respect
to the Seller Subordinated Notes or (d) amend its certificate of incorporation
in any manner determined by the Administrative Agent to be adverse to the
Lenders.

          7.10  Limitation on Transactions with Affiliates.  Enter into any
transaction, including, without limitation, any purchase, sale, lease or
exchange of Property, the rendering of any service or the payment of any
management, advisory or similar fees (other than the management fees payable
pursuant to the terms of Section 7.6(c)(ii) and the fees payable to the Sponsor
on the Closing Date in connection with the Acquisition and the other
transactions contemplated hereby in amounts previously disclosed to the
Lenders), with any Affiliate (other than Holdings, the Borrowers or any
Guarantor) unless such transaction is (a) otherwise permitted under this
Agreement, (b) in the ordinary course of business of Holdings, the Borrowers or
such Guarantor, as the case may be, and (c) upon fair and reasonable terms no
less favorable to Holdings, the Borrowers or such Guarantor, as the case may be,
than it would obtain in a comparable arm's length transaction with a Person that
is not an Affiliate.

          7.11  Limitation on Sales and Leasebacks.  Enter into any arrangement
with any Person providing for the leasing by Holdings or any Subsidiary of real
or personal property
<PAGE>

                                                                              90

which has been or is to be sold or transferred by Holdings or such Subsidiary to
such Person or to any other Person to whom funds have been or are to be advanced
by such Person on the security of such property or rental obligations of
Holdings or such Subsidiary.

          7.12  Limitation on Changes in Fiscal Periods.  Permit the fiscal year
of Holdings to end on a day other than March 31 or change Holdings' method of
determining fiscal quarters.

          7.13  Limitation on Negative Pledge Clauses.  Enter into or suffer to
exist or become effective any agreement that prohibits or limits the ability of
Holdings or any of its Subsidiaries to create, incur, assume or suffer to exist
any Lien upon any of its Property or revenues, whether now owned or hereafter
acquired, to secure the Obligations or, in the case of any Guarantor, its
obligations under the Guarantee and Collateral Agreement, the Foreign Collateral
Documents or the Foreign Guarantees, as the case may be, other than (a) this
Agreement and the other Loan Documents and (b) any agreements governing any
purchase money Liens or Capital Lease Obligations otherwise permitted hereby (in
which case, any prohibition or limitation shall only be effective against the
assets financed thereby).

          7.14  Limitation on Restrictions on Subsidiary Distributions.  Enter
into or suffer to exist or become effective any consensual encumbrance or
restriction on the ability of any Subsidiary to (a) make Restricted Payments in
respect of any Capital Stock of such Subsidiary held by, or pay any Indebtedness
owed to, Holdings or any other Subsidiary, (b) make Investments in Holdings or
any other Subsidiary or (c) transfer any of its assets to Holdings or any other
Subsidiary, except for such encumbrances or restrictions existing under or by
reason of (i) any restrictions existing under the Loan Documents and (ii) any
restrictions with respect to a Subsidiary imposed pursuant to an agreement that
has been entered into in connection with the Disposition of all or substantially
all of the Capital Stock or assets of such Subsidiary permitted hereunder.

          7.15  Limitation on Lines of Business.  Enter into any business,
either directly or through any Subsidiary, except for those businesses in which
Holdings and its Subsidiaries are engaged on the date of this Agreement (after
giving effect to the Acquisition) or that are reasonably related thereto.

          7.16  Limitation on Amendments to Acquisition Documentation.  (a)
Amend, supplement or otherwise modify (pursuant to a waiver or otherwise) the
terms and conditions of the indemnities and licenses furnished to Holdings or
any of its Subsidiaries pursuant to the Acquisition Documentation such that
after giving effect thereto such indemnities or licenses shall be materially
less favorable to the Loan Parties or the Lenders with respect thereto or (b)
otherwise amend, supplement or otherwise modify the terms and conditions of the
Acquisition Documentation except to the extent that any such amendment,
supplement or modification could not reasonably be expected to have a Material
Adverse Effect.

          7.17  Limitation on Activities of Holdings.  In the case of Holdings,
notwithstanding anything to the contrary in this Agreement or any other Loan
Document, (a) conduct, transact or otherwise engage in, or commit to conduct,
transact or otherwise engage in, any business or operations other than those
incidental to its ownership of the Capital Stock of Weigh-Tronix, Inc. and SWT
Holdings B.V. or incident to the issuance of the PIK Preferred
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                                                                              91

Stock and the Seller Subordinated Notes and the transactions in connection
therewith permitted by this Agreement, (b) incur, create, assume or suffer to
exist any Indebtedness or other liabilities or financial obligations, except (i)
nonconsensual obligations imposed by operation of law, (ii) pursuant to the Loan
Documents to which it is a party and the Senior Subordinated Note Indenture,
(iii) obligations with respect to its Capital Stock and (iv) pursuant to the
Seller Subordinated Notes, or (c) own, lease, manage or otherwise operate any
properties or assets (including cash (other than cash received in connection
with dividends made by any Subsidiary in accordance with Section 7.6 pending
application in the manner contemplated by said Section) and cash equivalents)
other than the ownership of shares of Capital Stock of Weigh-Tronix, Inc. and
SWT Holdings B.V.

          7.18  Limitation on Hedge Agreements.  Enter into any Hedge Agreement
other than Hedge Agreements entered into in the ordinary course of conducting
its business, and not for speculative purposes, to protect against changes in
interest rates, foreign exchange rates or for commodity price protection.

                         SECTION 8.  EVENTS OF DEFAULT

          If any of the following events shall occur and be continuing:

          (a)  Either Borrower shall fail to pay any principal of any Loan or
Reimbursement Obligation when due in accordance with the terms hereof; or either
Borrower shall fail to pay any interest on any Loan or Reimbursement Obligation,
or any other amount payable hereunder or under any other Loan Document, within
five days after any such interest or other amount becomes due in accordance with
the terms hereof; or

          (b)  Any representation or warranty made or deemed made by any Loan
Party herein or in any other Loan Document or that is contained in any
certificate, document or financial or other statement furnished by it at any
time under or in connection with this Agreement or any such other Loan Document
shall prove to have been inaccurate in any material respect on or as of the date
made or deemed made or furnished; or

          (c)   (i) Any Loan Party shall default in the observance or
performance of any agreement contained in Section 5.1(x), Section 5.1(y), clause
(i) or (ii) of Section 6.4(a) (with respect to Holdings and the Borrowers only),
Section 6.7(a) or Section 7, or in Sections 5.5, 5.6 or 5.7 of the Guarantee and
Collateral Agreement or (ii) an "Event of Default" under and as defined in any
Mortgage shall have occurred and be continuing; or

          (d)  Any Loan Party shall default in the observance or performance of
any other agreement contained in this Agreement or any other Loan Document
(other than as provided in paragraphs (a) through (c) of this Section), and such
default shall continue unremedied for a period of 30 days; or

          (e)  Holdings or any of its Subsidiaries shall (i) default in making
any payment of any principal of any Indebtedness (including, without limitation,
any Guarantee Obligation, but excluding the Loans and Reimbursement Obligations)
on the scheduled or original due date with
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                                                                              92

respect thereto; or (ii) default in making any payment of any interest on any
such Indebtedness beyond the period of grace, if any, provided in the instrument
or agreement under which such Indebtedness was created; or (iii) default in the
observance or performance of any other agreement or condition relating to any
such Indebtedness or contained in any instrument or agreement evidencing,
securing or relating thereto, or any other event shall occur or condition exist,
the effect of which default or other event or condition is to cause, or to
permit the holder or beneficiary of such Indebtedness (or a trustee or agent on
behalf of such holder or beneficiary) to cause, with the giving of notice if
required, such Indebtedness to become due prior to its stated maturity or to
become subject to or mandatory offer to purchase by the obligor thereunder or
(in the case of any such Indebtedness constituting a Guarantee Obligation) to
become payable; provided, that a default, event or condition described in clause
(i), (ii) or (iii) of this paragraph (e) shall not at any time constitute an
Event of Default unless, at such time, one or more defaults, events or
conditions of the type described in clauses (i), (ii) and (iii) of this
paragraph (e) shall have occurred and be continuing with respect to Indebtedness
the outstanding principal amount of which exceeds in the aggregate $2,500,000;
or

          (f)  (i) Holdings or any of its Subsidiaries shall commence any case,
proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief entered
with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
seeking reorganization, arrangement, adjustment, winding-up, liquidation,
dissolution, composition or other relief with respect to it or its debts, or (B)
seeking appointment of a receiver, trustee, custodian, conservator or other
similar official for it or for all or any substantial part of its assets, or
Holdings or any of its Subsidiaries shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against Holdings or
any of its Subsidiaries any case, proceeding or other action of a nature
referred to in clause (i) above that (A) results in the entry of an order for
relief or any such adjudication or appointment or (B) remains undismissed,
undischarged or unbonded for a period of 60 days; or (iii) there shall be
commenced against Holdings or any of its Subsidiaries any case, proceeding or
other action seeking issuance of a warrant of attachment, execution, distraint
or similar process against all or any substantial part of its assets that
results in the entry of an order for any such relief that shall not have been
vacated, discharged, or stayed or bonded pending appeal within 60 days from the
entry thereof; or (iv) Holdings or any of its Subsidiaries shall take any action
in furtherance of, or indicating its consent to, approval of, or acquiescence
in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v)
Holdings or any of its Subsidiaries shall generally not, or shall be unable to,
or shall admit in writing its inability to, pay its debts as they become due; or

          (g)  (i)Any Person shall engage in any "prohibited transaction" (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any Plan,
(ii) any "accumulated funding deficiency" (as defined in Section 302 of ERISA),
whether or not waived, shall exist with respect to any Plan or any Lien in favor
of the PBGC or a Plan shall arise on the assets of the Borrower or any Commonly
Controlled Entity, (iii) a Reportable Event shall occur with respect to, or
proceedings shall commence to have a trustee appointed, or a trustee shall be
appointed, to administer or to terminate, any Single Employer Plan, which
Reportable Event or commencement of proceedings or appointment of a trustee is,
in the reasonable opinion of the Required Lenders, likely to result in the
termination of such Plan for purposes of Title IV of ERISA, (iv) any Single
Employer Plan shall terminate for purposes of Title IV of ERISA, (v)
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                                                                              93

Holdings or any Commonly Controlled Entity shall, or in the reasonable opinion
of the Required Lenders is likely to, incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan or
(vi) any other event or condition shall occur or exist with respect to a Plan;
and in each case in clauses (i) through (vi) above, such event or condition,
together with all other such events or conditions, if any, could, in the sole
judgment of the Required Lenders, reasonably be expected to have a Material
Adverse Effect; or

          (h)  One or more judgments or decrees shall be entered against
Holdings or any of its Subsidiaries involving for Holdings and its Subsidiaries
taken as a whole a liability (not paid or fully covered by insurance as to which
the relevant insurance company has acknowledged coverage) of $1,000,000 or more,
and all such judgments or decrees shall not have been vacated, discharged,
stayed or bonded pending appeal within 30 days from the entry thereof; or

          (i)  Any of the Security Documents shall cease, for any reason (other
than by reason of the express release thereof pursuant to Section 10.15), to be
in full force and effect, or any Loan Party or any Affiliate of any Loan Party
shall so assert, or any Lien created by any of the Security Documents shall
cease to be enforceable and of the same effect and priority purported to be
created thereby; or

          (j)  The guarantee contained in Section 2 of the Guarantee and
Collateral Agreement or in any Foreign Guarantee shall cease, for any reason
(other than by reason of the express release thereof pursuant to Section 10.15),
to be in full force and effect or any Loan Party or any Affiliate of any Loan
Party shall so assert; or

          (k) (i) at any time prior to the Initial Public Offering of Holdings,
the Permitted Investors shall cease to have the power to vote or direct the
voting of securities having more than  50% of the ordinary voting power for the
election of directors of Holdings (determined on a fully diluted basis); (ii) at
any time after the Initial Public Offering of Holdings, (A) any person or group
of persons (within the meaning of Section 13 or 14 of the Securities Exchange
Act of 1934, as amended (the "Exchange Act")), other than the Permitted
Investors or any other Person who owns Capital Stock in Holdings on the date
hereof, shall become, or obtain rights (whether by means or warrants, options or
otherwise) to become, the "beneficial owner" (as defined in Rules 13(d)-3 and
13(d)-5 under the Exchange Act) of 20% or more of the outstanding shares of
common stock or membership interests of Holdings or (B) the Permitted Investors
shall cease to have the power to vote or direct the voting of securities having
more than 35% of the ordinary voting power for the election of directors of
Holdings (determined on a fully diluted basis); (iii) the board of directors of
Holdings shall cease to consist of a majority of Continuing Directors; (iv)
Holdings shall cease to own and control, of record and beneficially, directly or
indirectly, 100% of each class of outstanding Capital Stock of each Borrower
free and clear of all Liens (except Liens created by the Security Documents); or
(v) a Specified Change of Control shall occur;

          (l)  The Senior Subordinated Notes or the Seller Subordinated Notes or
the guarantees thereof shall cease, for any reason, to be validly subordinated
to the Obligations or the obligations of the Guarantors under the Guarantee and
Collateral Agreement or any Foreign Guarantee, as the case may be, as provided
in the Senior Subordinated Note Indenture or the Seller Subordinated Notes, as
the case may be, or any Loan Party, any Affiliate of any Loan
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                                                                              94

Party, the trustee in respect of the Senior Subordinated Notes or the Seller
Subordinated Notes (if any) or the holders of at least 25% in aggregate
principal amount of the Senior Subordinated Notes or the Seller Subordinated
Notes shall so assert;

then, and in any such event, (A) if such event is an Event of Default specified
in clause (i) or (ii) of paragraph (f) above with respect to either Borrower,
automatically the Commitments shall immediately terminate and the Loans
hereunder (with accrued interest thereon) and all other amounts owing under this
Agreement and the other Loan Documents (including, without limitation, all
amounts of L/C Obligations, whether or not the beneficiaries of the then
outstanding Letters of Credit shall have presented the documents required
thereunder) shall immediately become due and payable, and (B) if such event is
any other Event of Default, either or both of the following actions may be
taken:  (i) with the consent of the Majority Revolving Credit Facility Lenders,
the Administrative Agent may, or upon the request of the Majority Revolving
Credit Facility Lenders, the Administrative Agent shall, by notice to the
Borrower declare the Revolving Credit Commitments to be terminated forthwith,
whereupon the Revolving Credit Commitments shall immediately terminate; and (ii)
with the consent of the Required Lenders, the Administrative Agent may, or upon
the request of the Required Lenders, the Administrative Agent shall, by notice
to the Borrowers, declare the Loans hereunder (with accrued interest thereon)
and all other amounts owing under this Agreement and the other Loan Documents
(including, without limitation, all amounts of L/C Obligations, whether or not
the beneficiaries of the then outstanding Letters of Credit shall have presented
the documents required thereunder) to be due and payable forthwith, whereupon
the same shall immediately become due and payable.  In the case of all Letters
of Credit with respect to which presentment for honor shall not have occurred at
the time of an acceleration pursuant to this paragraph, the Borrower shall at
such time deposit in a cash collateral account opened by the Administrative
Agent an amount equal to the aggregate then undrawn and unexpired amount of such
Letters of Credit.  Amounts held in such cash collateral account shall be
applied by the Administrative Agent to the payment of drafts drawn under such
Letters of Credit, and the unused portion thereof after all such Letters of
Credit shall have expired or been fully drawn upon, if any, shall be applied to
repay other obligations of the Borrower hereunder and under the other Loan
Documents.  After all such Letters of Credit shall have expired or been fully
drawn upon, all Reimbursement Obligations shall have been satisfied and all
other obligations of the Borrower hereunder and under the other Loan Documents
shall have been paid in full, the balance, if any, in such cash collateral
account shall be returned to the Borrower (or such other Person as may be
lawfully entitled thereto).

                            SECTION 9.  THE AGENTS

          9.1  Appointment.  Each Lender hereby irrevocably designates and
appoints the Agents as the agents of such Lender under this Agreement and the
other Loan Documents, and each Lender irrevocably authorizes each Agent, in such
capacity, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to such Agent by the terms of this
Agreement and the other Loan Documents, together with such other powers as are
reasonably incidental thereto.   Notwithstanding any provision to the contrary
elsewhere in this Agreement, no Agent shall have any duties or responsibilities,
except those expressly set forth herein, or any fiduciary relationship with any
Lender, and no implied covenants, functions, responsibilities,
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                                                                              95

duties, obligations or liabilities shall be read into this Agreement or any
other Loan Document or otherwise exist against any Agent. As are independent
contractors empowered by the Lenders to exercise certain rights and perform
certain duties and responsibilities hereunder and under the other Loan
Documents, the Agents are nevertheless "representatives" of the Lenders, as that
term is defined in Article 1 of the Uniform Commercial Code, for purposes of
actions for the benefit of the Agents with respect to all collateral security
and guaranties contemplated by the Loan Documents. Such actions include the
designation of the Administrative Agent as "secured party", "mortgagee" or the
like on all financing statements and other documents and instruments, whether
recorded or otherwise, relating to the attachment, perfection, priority or
enforcement of any security interests, mortgages 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 Agents.

          9.2  Delegation of Duties.  Each Agent may execute any of its duties
under this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties.  No Agent shall be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

          9.3  Exculpatory Provisions.  Neither any Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates shall be
(i) liable for any action lawfully taken or omitted to be taken by it or such
Person under or in connection with this Agreement or any other Loan Document
(except to the extent that any of the foregoing are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted
from its or such Person's own gross negligence or willful misconduct) or (ii)
responsible in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by any Loan Party or any officer thereof
contained in this Agreement or any other Loan Document or in any certificate,
report, statement or other document referred to or provided for in, or received
by the Agents under or in connection with, this Agreement or any other Loan
Document or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or for any failure
of any Loan Party a party thereto to perform its obligations hereunder or
thereunder.  The Agents shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of any Loan Party.

          9.4  Reliance by Agents.  Each Agent shall be entitled to rely, and
shall be fully protected in relying, upon any instrument, writing, resolution,
notice, consent, certificate, affidavit, letter, telecopy, telex or teletype
message, statement, order or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to the Loan Parties), independent accountants and other
experts selected by such Agent.  The Agents may deem and treat the payee of any
Note as the owner thereof for all purposes unless such Note shall have been
transferred in accordance with Section 10.6 and all actions required by such
Section in connection with such transfer shall have been taken.  Each Agent
shall be fully justified in failing or refusing to take any action under this
Agreement or any other Loan Document unless it shall first receive such advice
or concurrence of the Required Lenders (or, if so specified by this Agreement,
all Lenders) as it deems appropriate or it shall
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                                                                              96

first be indemnified to its satisfaction by the Lenders against any and all
liability and expense that may be incurred by it by reason of taking or
continuing to take any such action. Each Agent shall in all cases be fully
protected in acting, or in refraining from acting, under this Agreement and the
other Loan Documents in accordance with a request of the Required Lenders (or,
if so specified by this Agreement, all Lenders or any other instructing group of
Lenders specified by this Agreement), and such request and any action taken or
failure to act pursuant thereto shall be binding upon all the Lenders and all
future holders of the Loans.

          9.5  Notice of Default.  No Agent shall be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default hereunder unless
such Agent shall have received notice from a Lender, Holdings or a Borrower
referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a "notice of default".  In the event that the
Administrative Agent shall receive such a notice, the Administrative Agent shall
give notice thereof to the Lenders.  The Administrative Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably
directed by the Required Lenders (or, if so specified by this Agreement, all
Lenders or any other instructing group of Lenders specified by this Agreement);
provided that unless and until the Administrative Agent shall have received such
directions, the Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable in the best interests of the
Lenders.

          9.6  Non-Reliance on Agents and Other Lenders.  Each Lender expressly
acknowledges that neither any of the Agents nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or affiliates have
made any representations or warranties to it and that no act by any Agent
hereafter taken, including any review of the affairs of a Loan Party or any
affiliate of a Loan Party, shall be deemed to constitute any representation or
warranty by any Agent to any Lender.  Each Lender represents to the Agents that
it has, independently and without reliance upon any Agent or any other Lender,
and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Loan Parties and their
affiliates and made its own decision to make its Loans hereunder and enter into
this Agreement.  Each Lender also represents that it will, independently and
without reliance upon any Agent or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Loan Parties and their affiliates.  Except for notices, reports and other
documents expressly required to be furnished to the Lenders by the
Administrative Agent hereunder, no Agent shall have any duty or responsibility
to provide any Lender with any credit or other information concerning the
business, operations, property, condition (financial or otherwise), prospects or
creditworthiness of any Loan Party or any affiliate of a Loan Party that may
come into the possession of such Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates.

          9.7  Indemnification.  The Lenders agree to indemnify each Agent in
its capacity as such (to the extent not reimbursed by Holdings or the Borrowers
and without limiting the
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                                                                              97

obligation of Holdings or the Borrowers to do so), ratably according to their
respective Aggregate Exposure Percentages in effect on the date on which
indemnification is sought under this Section (or, if indemnification is sought
after the date upon which the Commitments shall have terminated and the Loans
shall have been paid in full, ratably in accordance with such Aggregate Exposure
Percentages immediately prior to such date), for, and to save each Agent
harmless from and against, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever that may at any time (including, without limitation, at
any time following the payment of the Loans) be imposed on, incurred by or
asserted against such Agent in any way relating to or arising out of, the
Commitments, this Agreement, any of the other Loan Documents or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by such Agent
under or in connection with any of the foregoing; provided that no Lender shall
be liable for the payment of any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements that are found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted from such Agent's gross negligence or
willful misconduct. The agreements in this Section shall survive the payment of
the Loans and all other amounts payable hereunder.

          9.8  Agent in Its Individual Capacity.  Each Agent and its affiliates
may make loans to, accept deposits from and generally engage in any kind of
business with any Loan Party as though such Agent were not an Agent.  With
respect to its Loans made or renewed by it and with respect to any Letter of
Credit issued or participated in by it, each Agent shall have the same rights
and powers under this Agreement and the other Loan Documents as any Lender and
may exercise the same as though it were not an Agent, and the terms "Lender" and
"Lenders" shall include each Agent in its individual capacity.

          9.9  Successor Agents.  The Administrative Agent may resign as
Administrative Agent upon 10 days' notice to the Lenders and the Borrower.  If
the Administrative Agent shall resign as Administrative Agent under this
Agreement and the other Loan Documents, then the Required Lenders shall appoint
from among the Lenders a successor agent for the Lenders, which successor agent
shall (unless an Event of Default under Section 8(a) or Section 8(f) with
respect to either Borrower shall have occurred and be continuing) be subject to
approval by the Borrower (which approval shall not be unreasonably withheld or
delayed), whereupon such successor agent shall succeed to the rights, powers and
duties of the Administrative Agent, and the term "Administrative Agent" shall
mean such successor agent effective upon such appointment and approval, and the
former Administrative Agent's rights, powers and duties as Administrative Agent
shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Agreement or any
holders of the Loans.  If no successor agent has accepted appointment as
Administrative Agent by the date that is 10 days following a retiring
Administrative Agent's notice of resignation, the retiring Administrative
Agent's resignation shall nevertheless thereupon become effective, and the
Lenders shall assume and perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Required Lenders appoint a successor
agent as provided for above.  The Syndication Agent may, at any time, by notice
to the Lenders and the Administrative Agent, resign as Syndication Agent
hereunder, whereupon the duties, rights, obligations and responsibilities of the
Syndication Agent hereunder shall automatically be assumed by, and inure to the
benefit of, the Administrative Agent, without any further act by the Syndication
Agent, the
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                                                                              98

Administrative Agent or any Lender. After any retiring Agent's resignation as
Agent, the provisions of this Section 9 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Agent under this
Agreement and the other Loan Documents.

          9.10  Authorization to Release Liens and Guarantees.  The
Administrative Agent is hereby irrevocably authorized by each of the Lenders to
effect any release of Liens or guarantee obligations contemplated by Section
10.15.

          9.11  The Arrangers.  The Arrangers, in their capacity as such, shall
have no duties or responsibilities, and shall incur no liability, under this
Agreement and the other Loan Documents.

          9.12  Execution of Security Trust Deeds.  Each Lender irrevocably
authorizes the Security Agent to sign the English Security Trust Deed and the
Irish Security Trust Deed and each Deed of Accession delivered to the Security
Agent thereunder on its behalf and agrees to be bound by the terms of the
English Security Trust Deed and the Irish Security Trust Deed.

                          SECTION 10.  MISCELLANEOUS

          10.1  Amendments and Waivers.  Neither this Agreement or any other
Loan Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section 10.1.  The
Required Lenders and each Loan Party party to the relevant Loan Document may, or
(with the written consent of the Required Lenders) the Agents and each Loan
Party party to the relevant Loan Document may, from time to time, (a) enter into
written amendments, supplements or modifications hereto and to the other Loan
Documents (including amendments and restatements hereof or thereof) for the
purpose of adding any provisions to this Agreement or the other Loan Documents
or changing in any manner the rights of the Lenders or of the Loan Parties
hereunder or thereunder or (b) waive, on such terms and conditions as may be
specified in the instrument of waiver, any of the requirements of this Agreement
or the other Loan Documents or any Default or Event of Default and its
consequences; provided, however, that no such waiver and no such amendment,
supplement or modification shall:

               (i) forgive the principal amount or extend the final scheduled
     date of maturity of any Loan or Reimbursement Obligation, extend the
     scheduled date of any amortization payment in respect of any Term Loan,
     reduce the stated rate of any interest or fee payable hereunder or extend
     the scheduled date of any payment thereof, or increase the amount or extend
     the expiration date of any Commitment of any Lender, in each case without
     the consent of each Lender directly affected thereby;

               (ii) amend, modify or waive any provision of this Section or
     reduce any percentage specified in the definition of Required Lenders,
     consent to the assignment or transfer by either Borrower of any of its
     rights and obligations under this Agreement and the other Loan Documents,
     release all or substantially all of the Collateral or release all or
     substantially all of the Guarantors from their guarantee obligations under
     the Guarantee and Collateral Agreement and the Foreign Guarantees, in each
     case without the consent of all Lenders;
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                                                                              99

               (iii) amend, modify or waive any condition precedent to any
     extension of credit under the Revolving Credit Facility set forth in
     Section 5.2 (including, without limitation, the waiver of an existing
     Default or Event of Default required to be waived in order for such
     extension of credit to be made) without the consent of any Majority
     Revolving Credit Facility Lenders;

               (iv) reduce the percentage specified in the definition of
     Majority Facility Lenders with respect to any Facility without the written
     consent of all Lenders under such Facility;

               (v) amend, modify or waive any provision of Section 9 without the
     consent of any Agent affected thereby;

               (vi) amend, modify or waive any provision of Section 2.8 or 2.9
     without the written consent of the Swing Line Lender;

               (vii) amend, modify or waive any provision of Section 2.20
     without the consent of each Lender directly affected thereby; or

               (viii) amend, modify or waive any provision of Section 3 without
     the consent of the Issuing Lender.

          Any such waiver and any such amendment, supplement or modification
shall apply equally to each of the Lenders and shall be binding upon the Loan
Parties, the Lenders, the Administrative Agent and all future holders of the
Loans.  In the case of any waiver, the Loan Parties, the Lenders and the
Administrative Agent shall be restored to their former position and rights
hereunder and under the other Loan Documents, and any Default or Event of
Default waived shall be deemed to be cured and not continuing; but no such
waiver shall extend to any subsequent or other Default or Event of Default, or
impair any right consequent thereon.  Any such waiver, amendment, supplement or
modification shall be effected by a written instrument signed by the parties
required to sign pursuant to the foregoing provisions of this Section; provided,
that delivery of an executed signature page of any such instrument by facsimile
transmission shall be effective as delivery of a manually executed counterpart
thereof.

          For the avoidance of doubt, this Agreement may be amended (or amended
and restated) with the written consent of the Required Lenders, the
Administrative Agent and each Loan Party to each relevant Loan Document (x) to
add one or more additional credit facilities to this Agreement and to permit the
extensions of credit from time to time outstanding thereunder and the accrued
interest and fees in respect thereof (collectively, the "Additional Extensions
of Credit") to share ratably in the benefits of this Agreement and the other
Loan Documents with the Term Loans and Revolving Extensions of Credit and the
accrued interest and fees in respect thereof and (y) to include appropriately
the Lenders holding such credit facilities in any determination of the  Required
Lenders and Majority Revolving Facility Lenders; provided, however, that no such
amendment shall permit the Additional Extensions of Credit to share ratably with
or with preference to the Term Loans in the application of mandatory prepayments
<PAGE>

                                                                             100

without the consent of the Majority Facility Lenders in respect of the Tranche A
Term Loan Facility and the Tranche B Term Loan Facility.

          10.2  Notices.  All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
telecopy), and, unless otherwise expressly provided herein, shall be deemed to
have been duly given or made when delivered, or three Business Days after being
deposited in the mail, postage prepaid, or, in the case of telecopy notice, when
received, addressed (a) in the case of Holdings, the Borrowers and the Agents,
as follows and (b) in the case of the Lenders, as set forth in an administrative
questionnaire delivered to the Administrative Agent or (c) in the case of any
party, to such other address as such party may hereafter notify to the other
parties hereto:

     Holdings:                Weigh-Tronix, LLC
                              293 S. Main Street
                              Providence, Rhode Island  02903
                              Attention:  Chief Financial Officer
                              Telephone:  (401) 272-4402
                              Facsimile:  (401) 751-8829
         with a copy to:      Berkshire Partners, LLC
                              One Boston Place
                              33rd Floor
                              Boston, MA  02108
                              Attention: Bradley M. Bloom
                              Telephone:  (617) 227-0050
                              Facsimile:  (617) 227-6105

     The Borrower:            SWT Finance B.V.
                              c/o Weigh-Tronix, LLC
                              293 S. Main Street
                              Providence, Rhode Island  02903
                              Attention:  Chief Financial Officer
                              Telephone:  (401) 272-4402
                              Facsimile:  (401) 751-8829

         with a copy to:      Berkshire Partners, LLC
                              One Boston Place
                              33rd Floor
                              Boston, MA  02108
                              Attention: Bradley M. Bloom
                              Telephone:  (617) 227-0050
                              Facsimile:  (617) 227-6105

     The Canadian Borrower:   Weigh-Tronix Canada, ULC
                              c/o Weigh-Tronix, LLC
                              293 S. Main Street
                              Providence, Rhode Island  02903
                              Attention:  Chief Financial Officer
<PAGE>

                                                                             101

                              Telephone:  (401) 272-4402
                              Facsimile:  (401) 751-8829

          with a copy to:     Berkshire Partners, LLC
                              One Boston Place
                              33rd Floor
                              Boston, MA  02108
                              Attention: Bradley M. Bloom
                              Telephone:  (617) 227-0050
                              Facsimile:  (617) 227-6105

     The Syndication Agent:   Lehman Commercial Paper Inc.
                              3 World Financial Center
                              New York, New York 10285
                              Attention:  Andrew Keith
                              Telecopy:  (212) 526-7691
                              Telephone:  (212) 526-4059

     The Administrative Agent
      (in respect of
      borrowings in Dollars): Fleet National Bank
                              100 Federal Street
                              MA DE 10307C
                              Boston, Massachusetts 02110
                              Attention: Al Lima
                              Telephone:  (617) 346-4665
                              Facsimile:  (617) 346-5833

          with copies to:     Fleet National Bank
                              100 Federal Street
                              MA DE 10011B
                              Boston, Massachusetts 02110
                              Attention: Connie Moore
                              Telephone:  (617) 434-9383
                              Facsimile:  (617) 434-4929

               and            Lehman Commercial Paper Inc.
                              3 World Financial Center
                              New York, New York 10285
                              Attention:  Andrew Keith
                              Telecopy:  (212) 526-7691
                              Telephone:  (212) 526-4059

     The Administrative Agent
       (in respect of borrowings
       in Euro and Sterling): Fleet National Bank
                              39 Victoria Street
<PAGE>

                                                                             102

                              London SW1H OEE
                              Attention: Mike Rowe
                              Telephone:  44 (0) 207-932-9253
                              Facsimile:  44 (0) 207-932-9364

          with copies to:     Fleet National Bank
                              100 Federal Street
                              MA DE 10011B
                              Boston, Massachusetts 02110
                              Attention: Connie Moore
                              Telephone:  (617) 434-9383
                              Facsimile:  (617) 434-4929
               and            Lehman Commercial Paper Inc.
                              3 World Financial Center
                              New York, New York 10285
                              Attention:  Andrew Keith
                              Telecopy:  (212) 526-7691
                              Telephone:  (212) 526-4059

     The Administrative Agent
        (in respect of all
        other notices):       Fleet National Bank
                              100 Federal Street
                              MA DE 10307C
                              Boston, Massachusetts 02110
                              Attention: Al Lima
                              Telephone:  (617) 346-4665
                              Facsimile:  (617) 346-5833

          with copies to:     Fleet National Bank
                              100 Federal Street
                              MA DE 10011B
                              Boston, Massachusetts 02110
                              Attention: Connie Moore
                              Telephone:  (617) 434-9383
                              Facsimile:  (617) 434-4929

               and            Lehman Commercial Paper Inc.
                              3 World Financial Center
                              New York, New York 10285
                              Attention:  Andrew Keith
                              Telecopy:  (212) 526-7691
                              Telephone:  (212) 526-4059

     Issuing Lender:          As notified by the Issuing Lender to the
                              Administrative Agent and the Borrower
<PAGE>

                                                                             103

provided that any notice, request or demand to or upon any Agent, the Issuing
Lender or any Lender shall not be effective until received.

          10.3  No Waiver; Cumulative Remedies.  No failure to exercise and no
delay in exercising, on the part of any Agent or any Lender, any right, remedy,
power or privilege hereunder or under the other Loan Documents shall operate as
a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights,
remedies, powers and privileges herein provided are cumulative and not exclusive
of any rights, remedies, powers and privileges provided by law.

          10.4  Survival of Representations and Warranties.  All representations
and warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the making of the
Loans and other extensions of credit hereunder.

          10.5  Payment of Expenses.  Each of Holdings and each of the Borrowers
agrees (a) to pay or reimburse the Agents for all their reasonable out-of-pocket
costs and expenses incurred in connection with the syndication of the Facilities
(other than fees payable to syndicate members) and the development, preparation
and execution of, and any amendment, supplement or modification to, this
Agreement and the other Loan Documents and any other documents prepared in
connection herewith or therewith, and the consummation and administration of the
transactions contemplated hereby and thereby, including, without limitation, the
reasonable fees and disbursements and other charges of counsel to the
Administrative Agent, (b) to pay or reimburse each Lender and the Agents for all
their costs and expenses incurred in connection with the enforcement or
preservation of any rights under this Agreement, the other Loan Documents and
any such other documents, including, without limitation, the fees and
disbursements of counsel (including the allocated fees and disbursements and
other charges of in-house counsel) to each Lender and of counsel to the Agents,
(c) to pay, indemnify, or reimburse each Lender and the Agents for, and hold
each Lender and the Agents harmless from, any and all recording and filing fees
and any and all liabilities with respect to, or resulting from any delay in
paying, stamp, excise and other taxes, if any, which may be payable or
determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or
any amendment, supplement or modification of, or any waiver or consent under or
in respect of, this Agreement, the other Loan Documents and any such other
documents, and (d) to pay, indemnify or reimburse each Lender, each Agent, their
respective affiliates, and their respective officers, directors, trustees,
employees, advisors, agents and controlling persons (each, an "Indemnitee") for,
and hold each Indemnitee harmless from and against any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect
to the execution, delivery, enforcement, performance and administration
<PAGE>

                                                                             104

of this Agreement, the other Loan Documents and any such other documents,
including, without limitation, any of the foregoing relating to the use of
proceeds of the Loans or the violation of, noncompliance with or liability
under, any Environmental Law applicable to the operations of Holdings, any of
its Subsidiaries or any of the Properties and the fees and disbursements and
other charges of legal counsel in connection with claims, actions or proceedings
by any Indemnitee against Holdings or the Borrowers hereunder (all the foregoing
in this clause (d), collectively, the "Indemnified Liabilities"), provided,
neither Holdings nor either Borrower shall have any obligation hereunder to any
Indemnitee with respect to Indemnified Liabilities to the extent such
Indemnified Liabilities are found by a final and nonappealable decision of a
court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of such Indemnitee. Without limiting the foregoing, and to
the extent permitted by applicable law, Holdings and the Borrowers agree not to
assert and to cause their respective Subsidiaries not to assert, and hereby
waive and agree to cause their respective Subsidiaries so to waive, all rights
for contribution or any other rights of recovery with respect to all claims,
demands, penalties, fines, liabilities, settlements, damages, costs and expenses
of whatever kind or nature, under or related to Environmental Laws, that any of
them might have by statute or otherwise against any Indemnitee. All amounts due
under this Section shall be payable not later than 30 days after written demand
therefor. The agreements in this Section shall survive repayment of the Loans
and all other amounts payable hereunder.

          10.6  Successors and Assigns; Participations and Assignments.  (a)
This Agreement shall be binding upon and inure to the benefit of Holdings, the
Borrowers, the Lenders, the Agents, all future holders of the Loans and their
respective successors and assigns, except that neither Holdings nor either
Borrower may assign or transfer any of its rights or obligations under this
Agreement without the prior written consent of the Agents and each Lender.

          (b)  Any Lender may, without the consent of Holdings or the Borrowers,
in accordance with applicable law, at any time sell to one or more banks,
financial institutions or other entities (each, a "Participant") participating
interests in any Loan owing to such Lender, any Commitment of such Lender or any
other interest of such Lender hereunder and under the other Loan Documents.  In
the event of any such sale by a Lender of a participating interest to a
Participant, such Lender's obligations under this Agreement to the other parties
to this Agreement shall remain unchanged, such Lender shall remain solely
responsible for the performance thereof, such Lender shall remain the holder of
any such Loan for all purposes under this Agreement and the other Loan
Documents, and Holdings, the Borrowers and the Agents shall continue to deal
solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and the other Loan Documents.  In no event
shall any Participant under any such participation have any right to approve any
amendment or waiver of any provision of any Loan Document, or any consent to any
departure by any Loan Party therefrom, except to the extent that such amendment,
waiver or consent would require the consent of all Lenders pursuant to Section
10.1.  Holdings and the Borrowers agree that if amounts outstanding under this
Agreement and the Loans are due or unpaid, or shall have been declared or shall
have become due and payable upon the occurrence of an Event of Default, each
Participant shall, to the maximum extent permitted by applicable law, be deemed
to have the right of setoff in respect of its participating interest in amounts
owing under this Agreement to the same extent as if the amount of its
participating interest were owing directly to it as a
<PAGE>

                                                                             105

Lender under this Agreement, provided that, in purchasing such participating
interest, such Participant shall be deemed to have agreed to share with the
Lenders the proceeds thereof as provided in Section 10.7(a) as fully as if such
Participant were a Lender hereunder. Holdings and the Borrowers also agree that
each Participant shall be entitled to the benefits of Sections 2.21, 2.22 and
2.23 with respect to its participation in the Commitments and the Loans
outstanding from time to time as if such Participant were a Lender; provided
that, in the case of Section 2.22, such Participant shall have complied with the
requirements of said Section, and provided, further, that no Participant shall
be entitled to receive any greater amount pursuant to any such Section than the
transferor Lender would have been entitled to receive in respect of the amount
of the participation transferred by such transferor Lender to such Participant
had no such transfer occurred.

          (c)  Any Lender (an "Assignor") may, in accordance with applicable law
and upon written notice to the Administrative Agent, at any time and from time
to time assign to any Lender or any affiliate or Control Investment Affiliate
thereof or, with the consent of Holdings and the Agents and, in the case of any
assignment of Revolving Credit Commitments, the written consent of the Issuing
Lender and the Swing Line Lender (which, in each case, shall not be unreasonably
withheld or delayed) (provided (x) that no such consent need be obtained by any
Lehman Entity for a period of 180 days following the Closing Date and (y) the
consent of Holdings need not be obtained with respect to any assignment of Term
Loans), to an additional bank, financial institution or other entity (an
"Assignee") all or any part of its rights and obligations under this Agreement
pursuant to an Assignment and Acceptance, substantially in the form of Exhibit
E, executed by such Assignee and such Assignor (and, where the consent of
Holdings, the Agents or the Issuing Lender or the Swing Line Lender is required
pursuant to  the foregoing provisions, by Holdings and such other Persons) and
delivered to the Administrative Agent for its acceptance and recording in the
Register; provided that no such assignment to an Assignee (other than any Lender
or any affiliate thereof) shall be in an aggregate principal amount of less than
$2,500,000 (other than in the case of an assignment of all of a Lender's
interests under this Agreement), unless otherwise agreed by Holdings and the
Agents.  Any such assignment need not be ratable as among the Facilities.  Upon
such execution, delivery, acceptance and recording, from and after the effective
date determined pursuant to such Assignment and Acceptance, (x) 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 Lender hereunder
with Commitments and/or Loans as set forth therein, and (y) the Assignor
thereunder shall, to the extent provided in such Assignment and Acceptance, be
released from its obligations under this Agreement (and, in the case of an
Assignment and Acceptance covering all of an Assignor's rights and obligations
under this Agreement, such Assignor shall cease to be a party hereto, except as
to Sections 2.21, 2.22 and 10.5 in respect of the period prior to such effective
date).  Notwithstanding any provision of this Section, the consent of Holdings
shall not be required for any assignment that occurs at any time when any Event
of Default shall have occurred and be continuing.

          (d)  The Administrative Agent shall, on behalf of Holdings and the
Borrowers, maintain at its address referred to in Section 10.2 a copy of each
Assignment and Acceptance delivered to it and a register (the "Register") for
the recordation of the names and addresses of the Lenders and the Commitment of,
and principal amount of the Loans owing to, each Lender from time to time.  The
entries in the Register shall be conclusive, in the absence of manifest
<PAGE>

                                                                             106

error, and Holdings, the Borrowers, each Agent and the Lenders shall treat each
Person whose name is recorded in the Register as the owner of the Loans and any
Notes evidencing such Loans recorded therein for all purposes of this Agreement.
Any assignment of any Loan, whether or not evidenced by a Note, shall be
effective only upon appropriate entries with respect thereto being made in the
Register (and each Note shall expressly so provide). Any assignment or transfer
of all or part of a Loan evidenced by a Note shall be registered on the Register
only upon surrender for registration of assignment or transfer of the Note
evidencing such Loan, accompanied by a duly executed Assignment and Acceptance;
thereupon one or more new Notes in the same aggregate principal amount shall be
issued to the designated Assignee, and the old Notes shall be returned by the
Administrative Agent to the relevant Borrower marked "canceled". The Register
shall be available for inspection by Holdings, the Borrowers or any Lender (with
respect to any entry relating to such Lender's Loans) at any reasonable time and
from time to time upon reasonable prior notice.

          (e)  Upon its receipt of an Assignment and Acceptance executed by an
Assignor and an Assignee (and, in any case where the consent of any other Person
is required by Section 10.6(c), by each such other Person) together with payment
to the Administrative Agent of a registration and processing fee of $3,500
(except that no such registration and processing fee shall be payable (y) in
connection with an assignment by or to any Lehman Entity or (z) in the case of
an Assignee which is already a Lender or is an affiliate of a Lender or a Person
under common management with a Lender), the Administrative Agent shall (i)
promptly accept such Assignment and Acceptance and (ii) on the effective date
determined pursuant thereto record the information contained therein in the
Register and give notice of such acceptance and recordation to the Lenders, the
Agents and Holdings.  On or prior to such effective date, the relevant Borrower,
at its own expense, upon request, shall execute and deliver to the
Administrative Agent (in exchange for the Revolving Credit Note and/or
applicable Term Notes, as the case may be, of the assigning Lender) a new
Revolving Credit Note and/or applicable Term Notes, as the case may be, to the
order of such Assignee in an amount equal to the Revolving Credit Commitment
and/or applicable Term Loans, as the case may be, assumed or acquired by it
pursuant to such Assignment and Acceptance and, if the Assignor has retained a
Revolving Credit Commitment and/or Term Loans, as the case may be, upon request,
a new Revolving Credit Note and/or Term Notes, as the case may be, to the order
of the Assignor in an amount equal to the Revolving Credit Commitment and/or
applicable Term Loans, as the case may be, retained by it hereunder.  Such new
Note or Notes shall be dated the Closing Date and shall otherwise be in the form
of the Note or Notes replaced thereby.

          (f)  For avoidance of doubt, the parties to this Agreement acknowledge
that the provisions of this Section concerning assignments of Loans and Notes
relate only to absolute assignments and that such provisions do not prohibit
assignments creating security interests, including, without limitation, any
pledge or assignment by a Lender of any Loan or Note to any Federal Reserve Bank
in accordance with applicable law.

          10.7  Adjustments; Set-off.  (a)  Except to the extent that this
Agreement provides for payments to be allocated to a particular Lender or to the
Lenders under a particular Facility, if any Lender (a "Benefitted Lender") shall
at any time receive any payment of all or part of the Obligations owing to it,
or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section
<PAGE>

                                                                             107

8(f), or otherwise), in a greater proportion than any such payment to or
collateral received by any other Lender, if any, in respect of such other
Lender's Obligations, such Benefitted Lender shall purchase for cash from the
other Lenders a participating interest in such portion of each such other
Lender's Obligations, or shall provide such other Lenders with the benefits of
any such collateral, as shall be necessary to cause such Benefitted Lender to
share the excess payment or benefits of such collateral ratably with each of the
Lenders; provided, however, that if all or any portion of such excess payment or
benefits is thereafter recovered from such Benefitted Lender, such purchase
shall be rescinded, and the purchase price and benefits returned, to the extent
of such recovery, but without interest.

          (b)  In addition to any rights and remedies of the Lenders provided by
law, each Lender shall have the right, without prior notice to Holdings or
either Borrower, any such notice being expressly waived by Holdings and each
Borrower to the extent permitted by applicable law, upon any amount becoming due
and payable by Holdings or either Borrower hereunder (whether at the stated
maturity, by acceleration or otherwise), to set off and appropriate and apply
against such amount any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by such Lender or
any branch or agency thereof to or for the credit or the account of Holdings or
such Borrower, as the case may be.  Each Lender agrees promptly to notify
Holdings and the relevant Borrower and the Administrative Agent after any such
setoff and application made by such Lender, provided that the failure to give
such notice shall not affect the validity of such setoff and application.

          10.8  Counterparts.  This Agreement may be executed by one or more of
the parties to this Agreement on any number of separate counterparts, and all of
said counterparts taken together shall be deemed to constitute one and the same
instrument.  Delivery of an executed signature page of this Agreement or of a
Lender Addendum by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof. A set of the copies of this Agreement
signed by all the parties shall be lodged with Holdings and the Administrative
Agent.

          10.9  Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          10.10  Integration.  This Agreement and the other Loan Documents
represent the entire agreement of Holdings, the Borrowers, the Agents, the
Arrangers and the Lenders with respect to the subject matter hereof and thereof,
and there are no promises, undertakings, representations or warranties by the
Arrangers, any Agent or any Lender relative to subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.

          10.11  GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS AGREEMENT SHALL BE
<PAGE>

                                                                             108

GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

          10.12  Submission To Jurisdiction; Waivers.  Each of Holdings and each
Borrower hereby irrevocably and unconditionally:

          (a)  submits for itself and its Property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the courts of the State of
New York, the courts of the United States of America for the Southern District
of New York, and appellate courts from any thereof;

          (b)  consents that any such action or proceeding may be brought in
such courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

          (c)  agrees that service of process in any such action or proceeding
may be effected by mailing a copy thereof by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to Holdings or the
relevant Borrower, as the case may be at its address set forth in Section 10.2
or at such other address of which the Administrative Agent shall have been
notified pursuant thereto;

          (d)  agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the right
to sue in any other jurisdiction; and

          (e)  waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to in
this Section any special, exemplary, punitive or consequential damages.

          10.13  Acknowledgments.  Each of Holdings and each Borrower hereby
acknowledges that:

          (a)  it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents;

          (b)  neither any Arranger, any Agent nor any Lender has any fiduciary
relationship with or duty to Holdings or either Borrower arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Arrangers, the Agents and the Lenders, on one hand, and
Holdings and the Borrowers, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor; and

          (c)  no joint venture is created hereby or by the other Loan Documents
or otherwise exists by virtue of the transactions contemplated hereby among the
Arrangers, the Agents and the Lenders or among Holdings, the Borrowers and the
Lenders.
<PAGE>

                                                                             109

          10.14  Confidentiality.  Each of the Agents and the Lenders agrees to
keep confidential all non-public information provided to it by any Loan Party
pursuant to this Agreement that is designated by such Loan Party as
confidential; provided that nothing herein shall prevent any Agent or any Lender
from disclosing any such information (a) to either Arranger, any Agent, any
other Lender or any affiliate of any thereof, (b) to any Participant or Assignee
(each, a "Transferee") or prospective Transferee that agrees to comply with the
provisions of this Section, (c) to any of its employees, directors, agents,
attorneys, accountants and other professional advisors, (d) to any financial
institution that is a direct or indirect contractual counterparty in swap
agreements or such contractual counterparty's professional advisor (so long as
such contractual counterparty or professional advisor to such contractual
counterparty agrees to be bound by the provisions of this Section, (e) upon the
request or demand of any Governmental Authority having jurisdiction over it, (f)
in response to any order of any court or other Governmental Authority or as may
otherwise be required pursuant to any Requirement of Law, (g) in connection with
any litigation or similar proceeding, (h) that has been publicly disclosed other
than in breach of this Section, (i) to the National Association of Insurance
Commissioners or any similar organization or any nationally recognized rating
agency that requires access to information about a Lender's investment portfolio
in connection with ratings issued with respect to such Lender or (j) in
connection with the exercise of any remedy hereunder or under any other Loan
Document.

          10.15  Release of Collateral and Guarantee Obligations.

          (a)  Notwithstanding anything to the contrary contained herein or in
any other Loan Document, upon request of Holdings in connection with any
Disposition of Property permitted by the Loan Documents, the Administrative
Agent shall (without notice to, or vote or consent of, any Lender, or any
affiliate of any Lender that is a party to any Specified Hedge Agreement) take
such actions as shall be required to release its security interest in any
Collateral being Disposed of in such Disposition, and to release any guarantee
obligations under any Loan Document of any Person being Disposed of in such
Disposition, to the extent necessary to permit consummation of such Disposition
in accordance with the Loan Documents.

          (b)  Notwithstanding anything to the contrary contained herein or any
other Loan Document, when all Obligations (other than obligations in respect of
any Specified Hedge Agreement) have been paid in full, all Commitments have
terminated or expired and no Letter of Credit shall be outstanding, upon request
of Holdings, the Administrative Agent shall (without notice to, or vote or
consent of, any Lender, or any affiliate of any Lender that is a party to any
Specified Hedge Agreement) take such actions as shall be required to release its
security interest in all Collateral, and to release all guarantee obligations
under any Loan Document, whether or not on the date of such release there may be
outstanding Obligations in respect of Specified Hedge Agreements.  Any such
release of guarantee obligations shall be deemed subject to the provision that
such guarantee obligations shall be reinstated if after such release any portion
of any payment in respect of the Obligations guaranteed thereby shall be
rescinded or must otherwise be restored or returned upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of either Borrower or any
Guarantor, or upon or as a result of the appointment of a receiver, intervenor
or conservator of, or trustee or similar officer for, either Borrower or any
Guarantor or any substantial part of its property, or otherwise, all as though
such payment had not been made.
<PAGE>

                                                                             110

          10.16  Accounting Changes.  In the event that any "Accounting Change"
(as defined below) shall occur and such change results in a change in the method
of calculation of financial covenants, standards or terms in this Agreement,
then Holdings and the Administrative Agent agree to enter into negotiations in
order to amend such provisions of this Agreement so as to equitably reflect such
Accounting Changes with the desired result that the criteria for evaluating
Holdings' financial condition shall be the same after such Accounting Changes as
if such Accounting Changes had not been made.  Until such time as such an
amendment shall have been executed and delivered by Holdings, the Administrative
Agent and the Required Lenders, all financial covenants, standards and terms in
this Agreement shall continue to be calculated or construed as if such
Accounting Changes had not occurred.  "Accounting Changes" refers to changes in
accounting principles required by the promulgation of any rule, regulation,
pronouncement or opinion by the Financial Accounting Standards Board of the
American Institute of Certified Public Accountants or, if applicable, the SEC.

          10.17 Delivery of Lender Addenda.  Each initial Lender shall become a
party to this Agreement by delivering to the Administrative Agent and the
Syndication Agent a Lender Addendum duly executed by such Lender, Holdings and
each Agent.

          10.18  WAIVERS OF JURY TRIAL.  HOLDINGS, THE BORROWERS, THE AGENTS AND
THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
AND FOR ANY COUNTERCLAIM THEREIN.

          10.19 Judgment Currency.  If, for the purposes of obtaining judgment
in any court, it is necessary to convert a sum due hereunder or under any other
Loan Document in one currency into another currency, the rate of exchange used
shall be that at which in accordance with normal banking procedures the
Administrative Agent could purchase the first currency with such other currency
on the Business Day preceding that on which final judgment is given.  The
obligation of each Borrower in respect of any such sum due from it to either the
Administrative Agent or any Lender hereunder or under any other Loan Document
shall, notwithstanding any judgment in a currency (the "Judgment Currency")
other than that in which such sum is denominated in accordance with the
applicable provisions of this Agreement (the "Agreement Currency"), be
discharged only to the extent that on the Business Day following receipt by the
Administrative Agent or such Lender of any sum adjudged to be so due in the
Judgment Currency, the Administrative Agent or such Lender may in accordance
with normal banking procedures purchase the Agreement Currency so purchased is
less than the sum originally due to such Administrative Agent or such Lender in
the Agreement Currency, the applicable Borrower agrees, as a separate obligation
and notwithstanding any such judgment, to indemnify the Administrative Agent or
such Lender against such loss.  If the amount of the Agreement Currency so
purchased is greater than the sum originally due to the Administrative or such
Lender in such currency, the Administrative Agent or such Lender agrees to
return the amount of any excess to the applicable Borrower (or to any other
Person who may be entitled thereto under applicable law).
<PAGE>

                                                                             111

          10.20 Quebec Security.  For greater certainty, and without limiting
the powers of the Administrative Agent hereunder or under any of the other Loan
Documents, each of the Borrowers hereby acknowledges that the Administrative
Agent shall, for purposes of holding any security granted by the Canadian
Borrower or any Foreign Guarantor on property pursuant to the laws of the
Province of Quebec to secure obligations of the Canadian Borrower or any Foreign
Guarantor under any debenture (the "Canadian Obligations"), be the holder of an
irrevocable power of attorney (fonde de pouvoir) (within the meaning of the
Civil Code of Quebec) for all present and future Lenders, Agents and hedging
counterparties pursuant to any Specified Hedge Agreement and in particular for
all present and future holders of any debenture.  Each of the Lenders (for
themselves and for all present and future affiliates that may become hedging
counterparties pursuant to any Specified Hedge Agreement) hereby irrevocably
constitutes, to the extent necessary, the Administrative Agent as the holder of
an irrevocable power of attorney (fonde de pouvoir) (within the meaning of
Article 2692 of the Civil Code of Quebec) in order to hold security granted by
the Canadian Borrower or any Foreign Guarantor in the Province of Quebec to
secure the Canadian Obligations.  Each assignee of a Lender, Agent or a hedging
counterparty pursuant to any Specified Hedge Agreement shall be deemed to have
confirmed and ratified the constitution of the Administrative Agent as the
holder of such irrevocable power of attorney (fonde de pouvoir) by execution of
the relevant assignment and assumption agreement.  Notwithstanding the
provisions of Section 32 of the Special Corporate Powers Act (Quebec), the
Administrative Agent may acquire and be the holder of any debenture.  The
Canadian Borrower hereby acknowledges that such debenture constitutes a title of
indebtedness, as such term is used in Article 2692 of the Civil Code of Quebec.
<PAGE>

                                                                             112

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

                              WEIGH-TRONIX, LLC

                              By: /s/ Weigh-Tronix, LLC
                                 --------------------------------------
                                 Name:  Weigh-Tronix, LLC
                                 Title:

                              SWT FINANCE B.V.

                              By: /s/ SWT Finance B.V.
                                 --------------------------------------
                                 Name:  SWT Finance B.V.
                                 Title:

                              WEIGH-TRONIX CANADA, ULC

                              By: /s/ Weigh-Tronix Canada, ULC
                                 --------------------------------------
                                 Name:  Weigh-Tronix Canada,ULC
                                 Title:

                              LEHMAN BROTHERS INC.,
                              as sole advisor and Arranger

                              By: /s/ Lehman Brothers Inc.
                                 --------------------------------------
                                 Name:  Lehman Brothers Inc.
                                 Title:

                              LEHMAN COMMERCIAL PAPER INC., as
                                Syndication Agent

                              By: /s/ Lehman Commercial Paper Inc.
                                 --------------------------------------
                                 Name:  Lehman Commercial Paper Inc.
                                 Title:

                              FLEETBOSTON ROBERTSON STEPHENS INC., as Arranger

                              By: /s/ Fleetboston Robertson Stephens Inc.
                                 ----------------------------------------
                                 Name:  Fleetboston Robertson Stephens Inc.
                                 Title:

                              FLEET NATIONAL BANK, as Administrative
                                Agent, as Security Agent and
                                as Fronting Lender

                              By: /s/ Fleet National Bank
                                 --------------------------------------
                                 Name:  Fleet National Bank
                                 Title:<PAGE>
                                                                    Exhibit 10.2

                               WEIGH-TRONIX, LLC

                    AMENDED AND RESTATED MEMBERS' AGREEMENT

                           DATED AS OF JUNE 13, 2000
<PAGE>

                               WEIGH-TRONIX, LLC

                    AMENDED AND RESTATED MEMBERS' AGREEMENT
                    ---------------------------------------

                               TABLE OF CONTENTS
                               -----------------

<TABLE>
<CAPTION>
                                                                       Page
                                                                       ----
<S>                                                                    <C>

ARTICLE I - DEFINITIONS..............................................     1
ARTICLE II - COVENANTS AND CONDITIONS................................     8
 Section 2.1 Restrictions on Transfers; Right of First Refusal.......     8
 Section 2.2 Call by the Company.....................................    11
 Section 2.3 Put Right...............................................    13
 Section 2.4 Take Along..............................................    14
 Section 2.5 Come Along..............................................    15
 Section 2.6 Corporate Governance....................................    16
 Section 2.7 Preemptive Rights.......................................    17
 Section 2.8 Confidentiality.........................................    18
 Section 2.9 Redemption of Class C Interests at Option of Holders (..    19
 Section 2.10 Conversion.............................................    21
 Section 2.11 Registration Rights....................................    21
ARTICLE III - MISCELLANEOUS..........................................    32
 Section 3.1 Remedies................................................    32
 Section 3.2 Entire Agreement; Amendment; Waiver.....................    33
 Section 3.3 Severability............................................    33
 Section 3.4 Notices.................................................    33
 Section 3.5 Binding Effect; Assignment..............................    34
 Section 3.6 Governing Law...........................................    34
 Section 3.7 Termination.............................................    34
 Section 3.8 Recapitalizations, Exchanges, Etc.......................    34
 Section 3.9 Action Necessary to Effectuate the Agreement............    35
 Section 3.10 Purchase for Investment; Legend on Certificate.........    35
 Section 3.11 Effectiveness of Transfers.............................    36
 Section 3.12 Other Members..........................................    36
 Section 3.13 No Waiver..............................................    36
 Section 3.14 Counterpart............................................    36
</TABLE>
<PAGE>

<TABLE>

<S>                                                                    <C>
 Section 3.15 Headings...............................................    36
 Section 3.16 Gender.................................................    36
 Section 3.17 Consent of Jurisdiction................................    37
 Section 3.18 Costs and Expenses.....................................    37
EXHIBIT A............................................................     2
 CLASS A MEMBERS.....................................................     2
 CLASS B MEMBERS.....................................................     4
 CLASS C MEMBERS.....................................................     5
 CLASS D MEMBERS.....................................................     6
 CLASS E MEMBERS.....................................................     7
 PIK PREFERRED MEMBER................................................     8

EXHIBIT A  Schedule of Members
EXHIBIT B  Put Note
</TABLE>
                                      ii
<PAGE>

                    AMENDED AND RESTATED MEMBERS' AGREEMENT

     This Amended and Restated Members' Agreement (this "Agreement") is entered
into as of the 13th day of June, 2000, by and among Weigh-Tronix, LLC, a
Delaware limited liability Company (the "Company"), those persons listed as
Berkshire Members on the signature pages hereof (collectively, the "Berkshire
Members"), those persons listed on the signature page hereof as "Other
Investors" (the "Other Investors" and, together with the Berkshire Members, the
"Investors"), The Northwestern Mutual Life Insurance Company ("Northwestern"),
and those persons listed as the Management Members on the signature pages hereof
(the "Management Members") and Marconi Inc. ("Marconi").  The Berkshire Members,
the Other Investors, Northwestern and the Management Members and Marconi are
sometimes collectively referred to herein as the "Members."  The membership
interests of the Company, including the Class A Interests, Class B Interests,
Class C Interests, Class D Interests, Class E Interests and PIK Preferred
Interests held by the Members, are collectively referred to herein as
"Interests."

     WHEREAS, each of the Members desires to enter into this Agreement for the
purpose of regulating certain aspects of the Members' relationships with regard
to the Company and certain restrictions on the Interests owned by the Members;
and

     NOW, THEREFORE, in consideration of the mutual promises, representations,
warranties, covenants and conditions set forth in this Agreement, and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

                                   ARTICLE I

                                  Definitions
                                  -----------

     For the purposes of this Agreement, the following terms shall be defined as
follows:

    An "Affiliate" of a Person shall mean a Person which, directly or
indirectly, through one or more intermediaries, controls, or is controlled by,
or is under common control with, such Person and, when used with respect to the
Company shall include any holder of Interests or other equity interests of the
Company or any officer or director of the Company.

     "Assignment Notice" shall have the meaning as set forth in Section 2.1(c).

     "Associate"  (i) when used to indicate a relationship with any Person shall
mean, (a) any corporation or organization of which such Person is an officer or
partner or is, directly or indirectly, the beneficial owner of ten percent (10%)
or more of any class of equity securities, (b) any trust or other estate in
which such Person has a substantial beneficial interest or as to which such
Person serves as a trustee or in a similar fiduciary capacity and (c) any
relative of such Person who has the same home as such Person, is a parent, aunt
or uncle, sibling, spouse, in-law, child, niece or nephew or grandchild of such
Person, or the spouse of any of them, or (ii) when used to indicate a
relationship with the Company, shall also mean a director or officer of the
Company or any Subsidiary.  Neither the Company nor any of its Subsidiaries
shall be deemed an Associate of any Member.
<PAGE>

     "Berkshire Representatives" shall have the meaning as set forth in Section
2.6.

     "Berkshire Member" shall have the meaning as set forth in the first
paragraph of this Agreement.

     "Board" or "Board of Managers" shall mean the Board of Managers of the
Company as the same shall be constituted from time to time.

     "Call Event" shall have the meaning as set forth in Section 2.2(a).

     "Call Group" shall have the meaning as set forth in Section 2.2(a).

     "Call Notice" shall have the meaning as set forth in Section 2.2(a).

     "Call Option" shall have the meaning as set forth in Section 2.2(a).

     "Call Price" shall have the meaning as set forth in Section 2.2(c).

     "Call Securities" shall have the meaning as set forth in Section 2.2(b).

     "Capital Contribution" shall have the meaning as set forth in the Operating
Agreement.

     "Cause" shall have the meaning as set forth below, except with respect to
any Management Member who is employed by the Company or one of its Subsidiaries
pursuant to an effective written employment agreement between the Company and/or
one of its Subsidiaries and such Management Member, in which event the
definition of "Cause" as set forth in such employment agreement shall be deemed
to be the definition of "Cause" herein solely for such Management Member and
only for so long as such employment agreement remains effective.

     In all other events, the term "Cause" shall mean that the Board of Managers
of the Company has determined, in its reasonable judgment, that any one or more
of the following has occurred:

          (i) the Management Member shall have been convicted of, or shall have
     pleaded guilty or nolo contendere to, any felony or any crime involving
     dishonesty or moral turpitude;

          (ii) the Management Member shall have committed any fraud,
     embezzlement, misappropriation of funds, breach of fiduciary duty or act of
     dishonesty;

          (iii)  the Management Member shall have failed to perform his duties
     and responsibilities to the Company and its Affiliates (other than by
     reason of disability);

          (iv) the Management Member shall have breached in any respect any of
     the provisions of this Agreement or any other agreement between the
     Management Member and the Company;

                                       2
<PAGE>

          (v) the Management Member shall have engaged in conduct likely to make
     the Company or any of its Affiliates subject to civil or criminal
     liabilities other than those arising from the Company's normal business
     activities; or

          (vi) a failure by the Management Member to take, or refrain from
     taking, any action as directed by of the Board of Managers of the Company.

     "Change of Control" shall mean any transaction in which (i) any Person, or
any two or more Persons acting as a group, and all Affiliates of such Person or
Persons, in each case other than Persons who are Members on the date of this
Agreement or who are Affiliates of such Members, acquire, whether by purchase,
exchange, tender offer, merger, consolidation or otherwise, such additional
Interests of the Company in one or more transactions, or series of transactions,
such that following such transaction or transactions, the aggregate Percentage
Interests in the Company of such Person or group and their Affiliates exceeds
fifty percent (50%) or (ii) all or substantially all of the assets of the
Company are sold, other than in the ordinary course of business.

     "Closing" shall have the meaning set forth in Section 2.1(e).

     "Class A Interests"  shall mean the Class A Interests of the Company, as
defined in the Company's Operating Agreement of even date herewith, including
any Class A Interests issued upon exercise of the Warrant.

     "Class B Interests" shall mean the Class B Interests of the Company, as
defined in the Company's Operating Agreement of even date herewith.

     "Class C Interests" shall mean the Class C Interests of the Company, as
defined in the Company's Operating Agreement of even date herewith.

     "Class D Interests" shall mean the Class D Interests of the Company, as
defined in the Company's Operating Agreement of even date herewith.

     "Class E Interests" shall mean the Class E Interests of the Company, as
defined in the Company's Operating Agreement of even date herewith.

     "Company" shall mean Weigh-Tronix, LLC, a Delaware limited liability
company, and its successors and assigns.

     "Designated Employee" or "Designated Employees" shall have the meaning as
set forth in Section 2.2(e).

     "Determination Date" shall mean the earliest date on which (i) the Company
or any of its Subsidiaries shall have consummated a Public Offering (ii) the
Company shall have consummated the sale of all or substantially all of its
Interests, or (iii) the Company and its Subsidiaries shall have consummated the
sale of all or substantially all of their assets or businesses.

                                       3
<PAGE>

     "Disability" shall mean permanent disability within the meaning of Section
22(e)(3) of the Internal Revenue Code of 1986, as amended, unless otherwise
defined in a separate written employment agreement between the Company and/or
one of its Subsidiaries and the person whose disability is in question.

     "Fair Market Value" shall mean, the fair value per share of the applicable
Interests as of the applicable date on the basis of a sale of such Interests in
an arms length private sale between a willing buyer and a willing seller,
neither acting under compulsion.  In determining such Fair Market Value, no
discount shall be taken for constituting a minority interest or for illiquidity
and no upward adjustment or discount shall be taken relating to the fact that
the Interests in question are subject to the restrictions and entitled to the
rights provided hereunder.  In the case of a purchase of an interest from one
who first becomes a Management Member after the date of this Agreement, such
Fair Market Value shall be determined in good faith by the Board of Managers of
the Company, which determination shall be final and binding on all parties.  In
all other instances, such Fair Market Value shall be determined in good faith by
the Board of Managers of the Company and a representative of the Member or
Members whose Interests are being valued (who shall be a person selected by
holders of a majority in interest of the applicable Interests and who shall be
hereinafter referred to as the "Representative").  If no such agreement is
reached within thirty (30) days after the applicable date, then the fair market
value shall be determined by appraisal.  All appraisals shall be undertaken by
two appraisers, one selected by the Board of Managers of the Company and one
selected by the Representative.  No Manager whose Interests are being appraised
or who is affiliated with a person whose Interests are being appraised shall
vote on the selection of the appraiser chosen by the Company.  The fair market
value shall be the fair market value arrived at by those appraisers within
thirty (30) days following the appointment of the last appraiser to be
appointed.  In the event that the two appraisers agree in good faith on such
fair market value within such a period of time, such agreed value shall be used
for purposes of this Agreement.  If the appraisers cannot agree but their
valuations are within ten percent (10%) of each other, then the fair market
value shall be the mean of the two valuations.  If the appraisers cannot agree
and the difference in the valuations is greater than ten percent (10%), then the
appraisers shall select a third appraiser who will calculate fair market value
independently, and, except as provided in the next sentence, the fair market
value of the Interests shall be the average of the two fair market values
arrived at by the appraisers who are closest in amount.  If one appraiser's
valuation is the mean of the other two valuations, such mean valuation shall be
the fair market value.  In the event that the two original appraisers cannot
agree upon a third appraiser within ten (10) days following the end of the
thirty (30) day period referred to above, then the third appraiser shall be
appointed by the American Arbitration Association in Boston, Massachusetts.

     "Good Reason" shall have the meaning as set forth below except with respect
to any Management Member who is employed by the Company or one of its
Subsidiaries pursuant to an effective written employment agreement between the
Company and/or one of its  Subsidiaries and such Management Member, in which
event the definition of "Good Reason" as set forth in such employment agreement
shall be deemed to be the definition of "Good Reason" herein solely for such
Management Member and only for so long as such employment agreement remains
effective.

                                       4
<PAGE>

     In all other events, the term "Good Reason" shall mean (i) a change of more
than forty (40) miles in the location of the Company's offices where the
employee is located or (ii) a material change in the nature or scope of the
employee's authorities, status, powers, functions, duties, responsibilities, or
reporting relationships that is determined by the employee in good faith to be
adverse to those existing before such change;

     "Indenture" means the indenture dated June 13, 2000, made by SWT Finance,
B.V., and certain other parties in relation to the EURO 100 Million Senior
Subordinated Notes 2010, together with supplemental indentures.

     "Interests" shall mean all (i) Class A, Class B, Class C, Class D, Class E
and PIK Preferred Interests held by Members from time to time, including, but
not limited to, any Interests issued upon exercise of the Warrant; (ii) the
Warrant; and (iii) securities of the Company or any successor issued in exchange
for, upon reclassification of, or as a distribution in respect of, any of the
foregoing.

     "Investment Price" shall mean an amount per Interest equal to the price, if
any, per Interest paid for such Interest at the time of initial purchase thereof
(subject to appropriate adjustments for splits, recapitalizations and the like).

     "Involuntary Transfer" shall have the meaning as set forth in Section
2.1(i).

     "Liquidity Event" shall mean a Public Offering, the sale of all or
substantially all of the assets of the Company, or a transaction which results
in a Change of Control.

     "Management Representatives" shall have the meaning as set forth in Section
2.6.

     "Management Member" shall mean initially those Persons who are shown as
Management Members on the signature page hereof, and thereafter shall include
such Persons who are added to the Company as Management Members.

     "Management Interests" shall mean all Class A Interests, Class B Interests,
Class D Interests and Class E Interests held by the Management Members.

     "Marconi" shall mean the holder, for the time being, of the PIK Preferred
Interest.

     "Member" shall have the meaning as set forth in the first paragraph of this
Agreement.

     "New Securities" shall have the meaning as set forth in Section 2.7(b).

     "Offer Price" shall have the meaning as set forth in Section 2.1(a).

     "Offered Interests" shall have the meaning as set forth in Section 2.1(a)

     "Offered Interests Electing Members" shall have the meaning as set forth in
Section 2.1(c).

                                       5
<PAGE>

     "Operating Agreement" shall mean the Second Amended and Restated Operating
Agreement of the Company as in effect from time to time.

     "Option Period" shall have the meaning as set forth in Section 2.1(b).

     "Percentage Interest" shall have the meaning set forth in the Operating
Agreement.

     "Permitted Transfer" shall mean:

          (a) a Transfer of Interests by any Member who is a natural person to
     (A) such Member's spouse, children, grandchildren, parents or siblings, (B)
     a trust for the benefit of any of them or (C) a limited partnership or
     limited liability company whose sole partners or members, as the case may
     be, are any of the persons described in clause (A) or clause (B);

          (b) a Transfer of Interests by a Member upon death to such Member's
     legal representatives, heirs or legatees, provided that such Member
     immediately prior to death was not an employee of the Company so that such
     Member's Interests are subject to the provisions of Section 2.2 of this
     Agreement;

          (c) a Transfer of Interests by (i) the initial Berkshire Members to
     any Affiliate of Berkshire Partners LLC or any of the employees, partners,
     members or affiliates of any such Affiliate or (ii) between any Berkshire
     Members;

          (d) a Transfer of Interests (including the PIK Preferred Interests)
     from any Member which is a corporation, limited liability company or
     partnership to any Affiliate of such Member;

          (e) a Transfer by Northwestern to a Qualified Institutional Investor
     or to any corporation or partnership (or other entity for collective
     investment, such as a fund) controlled by, controlling or under common
     control with Northwestern;

          (f) a Transfer by Northwestern or BancBoston Investments Inc., or any
     of their respective Permitted Transferees, to a Berkshire Member or to an
     Affiliate of a Berkshire Member, or

          (g) a Transfer by the PIK Preferred Member to any other Person,
     provided that such Transfer occurs after a first anniversary of the
     Effective Date (as defined by the Operating Agreement) and that the Company
     has given its approval to such Transfer (such approval not to be
     unreasonably withheld or delayed).

     No Permitted Transfer shall be effective unless and until the transferee of
     the Interests so transferred, if such transferee is not already a party to
     this Agreement, executes and delivers to the Company an executed
     counterpart of this Agreement in accordance with the terms of Section 3.12
     hereof.  No Permitted Transfer shall conflict with or result in any
     violation of a judgment, order, decree, statute, law, ordinance, rule or
     regulation.  For purposes of this definition, a Member shall be deemed to
     include any holder of Warrants.

                                       6
<PAGE>

     "Permitted Transferee" shall mean any person or entity who shall have
acquired and who shall hold shares pursuant to a Permitted Transfer described
above.

     "Person" shall mean an individual, corporation, partnership, trust, or
unincorporated association, or a government or any agency or political
subdivision thereof.

     "PIK Preferred Interests" shall mean the PIK Preferred Interest of the
Company, as defined in the Company's Operating Agreement of even date herewith.

     "Pro Rata Fraction" shall mean, with respect to any given Member, the
Percentage of Interest of such Member.

     "Public Offering" shall mean the first issuance of securities issued by the
Company or any successor entity (including a corporation into which the Company
is converted) pursuant to a public distribution in which all or any portion of
the Interests of the Company, or any security of a successor entity into which
such Interests may be converted, shall be listed and traded on a national
exchange or on the NASDAQ National Market System.

     "Qualified Institutional Investor" shall mean any of the following Persons:
(a) any bank, savings and loan association, savings institution, trust company
or national banking association, acting for its own account or in a fiduciary
capacity, (b) any charitable foundation, (c) any insurance company, (d) any
fraternal benefit society, (e) any pension, retirement or profit-sharing trust
or fund within the meaning of Title I of ERISA or for which any bank, trust
company, national banking association or investment adviser registered under the
Investment Advisers Act of 1940, as amended, is acting as trustee or agent, (f)
any investment company or business development company, as defined in the
Investment Company Act of 1940, as amended, (g) any small business investment
company licensed under the Small Business Investment Act of 1958, as amended,
(h) any broker or dealer registered under the Securities Exchange Act of 1934,
as amended, or any investment adviser registered under the Securities Exchange
Act of 1934, as amended, or any investment adviser registered under the
Investment Advisers Act of 1940, as amended, (i) any government, any public
employees' pension or retirement system, or any other government agency
supervising the investment of public funds, (j) any other entity all of the
equity owners of which are Institutional Holders or (k) any other Person which
may be within the definition of "qualified institutional buyer" as such term is
used in Rule 144A.

     "Schedule" shall refer to the Schedule of Members attached hereto as

Exhibit A.
---------

     "Seller" shall have the meaning as set forth in Section 2.4(a).

     "Senior Subordinated Notes" shall mean the EURO 100 Million Senior
Subordinated Notes 2010 of SWT Finance, B.V.

     "Subsidiary" with respect to any entity (the "parent") shall mean any
corporation, firm, association or trust of which such parent, at the time in
respect of which such term is used, (i) owns directly or indirectly more than
fifty percent (50%) of the equity or beneficial interest, on a consolidated
basis, and (ii) owns directly or controls with power to vote, indirectly through
one or more Subsidiaries, shares of capital stock or beneficial interest having
the power to cast for

                                       7
<PAGE>

the election of directors, trustees, managers or other officials having powers
analogous to that of directors of a corporation. Unless otherwise specifically
indicated, when used herein the term Subsidiary shall refer to a direct or
indirect Subsidiary of the Company.

     "Take Along Group" shall have the meaning as set forth in Section 2.4(a).

     "Third Party" shall mean any person other than the Company.

     "Transfer" shall mean to transfer, sell, assign, pledge, hypothecate, give,
create a security interest in or lien on, place in trust (voting or otherwise),
assign or in any other way encumber or dispose of, directly or indirectly and
whether or not by operation of law or for value, any Interests.

     "Transfer Notice" shall have the meaning as set forth in Section 2.1(a).

     "Transferring Member" shall have the meaning as set forth in Section
2.1(g).

     "Voluntary Termination" shall include a voluntary termination of employment
with the Company by a Management Member in the absence of a Good Reason, except
as otherwise specified in an effective written agreement between the Company
and/or one of its Subsidiaries and such Management Member.  The term Voluntary
Termination shall not include termination of employment due to death or
permanent disability.

     "Warrant" means the warrants to purchase a Class A Membership Interest in
the Company issued to Marconi Inc. pursuant to a Warrant Agreement dated June
13, 2000, and attached hereto as Exhibit 1.

                                   ARTICLE II

                            Covenants and Conditions
                            ------------------------

     2.1  Restrictions on Transfers; Right of First Refusal.  No Member may
Transfer all or any part of the Interests owned by him to anyone other than a
Permitted Transferee except in accordance with the following procedures:

          (a) If at any time a Member desires to Transfer Interests to anyone
other than a Permitted Transferee (each, an "Offeror"), such Offeror shall give
notice of such offer (the "Transfer Notice") to the Company.  The Transfer
Notice shall state the terms and conditions of such offer, including the name of
the prospective purchaser, the proposed purchase price per share of such
Interests (the "Offer Price"), payment terms (including a description of any
proposed non-cash consideration), the type of disposition and the number of such
Interests to be transferred ("Offered Interests").  The Transfer Notice shall
further state (i) that the Company may acquire, in accordance with the
provisions of this Agreement, any of the Offered Interests for the price and
upon the other terms and conditions, including deferred payment (if applicable),
set forth therein, and (ii) that the Company may not purchase any of such
Offered Interests unless the Company purchases all of such Offered Interests.

                                       8
<PAGE>

          (b) For a period of thirty (30) business days after receipt of the
Transfer Notice (the "Option Period"), the Company may, by notice in writing to
the Offeror delivering such Transfer Notice, elect in writing to purchase all,
but not less than all, of the Offered Interests at the Offer Price.  The closing
of the purchase of Offered Interests pursuant to Section 2.1(b) or Section
2.1(c), as the case may be, shall take place at the principal office of the
Company on the tenth (10th) day after the expiration of the Option Period.  At
such Closing, the Company shall deliver to the Offeror against delivery of
certificates duly endorsed and stock powers representing the Offered Interests
being acquired by the Company, the Offer Price, on the same terms as set forth
in the Transfer Notice (including any non-cash consideration described therein),
payable in respect of the Offered Interests being purchased by the Company.  All
of the foregoing deliveries will be deemed to be made simultaneously and none
shall be deemed completed until all have been completed.

          (c) Notwithstanding anything set forth in this Section 2.1 to the
contrary, prior to the termination of the Option Period, the Board of Managers
may, in its sole discretion, elect to assign the Company's right to purchase the
Offered Interests pursuant to this Section 2.1 to the Members, provided that the
Company and any of the Members to whom the Company assigns its right to purchase
shall collectively purchase all, but not less than all, of the Offered
Interests.  If the Board so elects, the Company shall give notice of such
assignment to each Member (the "Assignment Notice"), indicating the number of
Interests each such Member is entitled to purchase (including the right to over-
allotment of Offered Interests, if any), the Offer Price of such Interests, and
any other relevant payment terms.  Within five (5) days of the Assignment
Notice, those Members who intend to purchase the Offered Interests pursuant to
this Section 2.1(c) (the "Offered Interests Electing Members") shall notify the
Company in writing of such intention, indicating the number of Offered Interests
(including over-allotments, if any) they intend to purchase.  The right to
purchase such Offered Interests shall be allocated to the Members based upon
each Member's Pro Rata Fraction; provided, however, that if any Member does not
elect to purchase the number of Offered Interests which such Member may purchase
pursuant to this Section 2.1(c), then the Offered Interests Electing Members may
elect to purchase the remaining Offered Interests.  The right to purchase the
remaining Offered Interests shall be allocated to the Offered Interests Electing
Members based on each such Offered Interests Electing Member's Pro Rata Fraction
of all Offered Interests Electing Members.

          (d) If the Company or the Members, as the case may be, do not elect to
purchase all of the Offered Interests, all, but not less than all, of the
Offered Interests may be Transferred, but only in accordance with Sections
2.1(e) and 2.1(f) and the terms of the Transfer Notice, within sixty (60) days
after expiration of the Option Period, after which, if the Offered Interests
have not been Transferred, all restrictions contained herein shall again be in
full force and effect.

          (e) Five (5) days prior to the closing of the purchase of any Offered
Interests pursuant to Section 2.1(d) hereof (the "Closing"), the Offeror shall
notify the Company of the disposition of the Offered Interests, including the
name of each purchaser and the number of shares bought by each purchaser.  The
Closing shall take place no later than sixty (60) days after the expiration of
the Option Period.  At such Closing, each purchaser of Offered Interests shall
deliver to the Offeror against delivery of certificates duly endorsed and stock
powers representing the Offered Interests being acquired by such purchaser, the
Offer Price, on the same

                                       9
<PAGE>

terms as set forth in the Transfer Notice (including any non-cash consideration
described therein), payable in respect of the Offered Interests being purchased
by such purchaser. All of the foregoing deliveries will be deemed to be made
simultaneously and none shall be deemed completed until all have been completed.

          (f) Any Transfer of Interests pursuant to this Section 2.1 shall
remain subject to the Transfer restrictions of this Agreement and each intended
transferee pursuant to this Section shall execute and deliver to the Company a
counterpart of this Agreement, which shall evidence such transferee's agreement
that the Interests intended to be transferred shall continue to be subject to
this Agreement and that as to such Interests the transferee shall be bound by
the restrictions of this Agreement as a Member hereunder.

          (g) Any Member who is the subject of an Involuntary Transfer (as
defined below) (the "Transferring Member"), shall notify the Company in writing
within ten (10) days of such Involuntary Transfer but the failure to give such
notice shall not affect the rights of the parties hereunder.  Upon the Company's
receipt of such notice, the Company shall treat the Involuntary Transfer as an
offer under this Section 2.1. The Company shall act upon the deemed offer under
this Section within the time periods and following the applicable procedures set
forth in this Section 2.1, with the date of the deemed offer being the later of
the date of the Company's receipt of written notice setting forth the existence
of such an Involuntary Transfer and the date of such Involuntary Transfer, such
later date being the date of notification for the purpose of Section 2.1.

          (h) The purchase price for the Interests being transferred as a result
of an Involuntary Transfer under Section 2.1(g) shall be the fair market value,
as fair market value is agreed to by the Company and the transferee in each such
Involuntary Transfer, or if no such agreement is reached, as determined by an
independent appraiser selected by the Company and reasonably acceptable to the
transferee in such Involuntary Transfer.  All costs of any appraisal under this
Section 2.1(h) shall be paid by the transferee.

          (i) For purposes of this Agreement, the term "Involuntary Transfer"
shall mean any involuntary sale, transfer, encumbrance or other disposition
(other than as a result of the death of the Member) by or in which any Member
shall be deprived or divested of any right, title or interest in or to any
Interests, including without limitation, any levy of execution, transfer in
connection with bankruptcy, reorganization, insolvency or similar proceedings or
any transfer to a public officer or agency pursuant to any abandoned property or
escheat law.  A Transfer pursuant to Section 2.2 hereof shall not be deemed to
be an Involuntary Transfer.

          (j) The provisions of this Section 2.1 shall not apply to a Transfer
of Interests which (i) is a Permitted Transfer, (ii) is pursuant to Section 2.2,
(iii) is pursuant to Section 2.3, or (iv) is pursuant to Section 2.4, or, (v)
with respect to the Warrant, is permitted by the Warrant Agreement.

          (k) Notwithstanding the foregoing, in no event may a Member Transfer
any Class D or Class E Interest which remains subject to becoming Conformed
Units under the terms of the Operating Agreement, except to a Permitted
Transferee, in which case such transferred

                                       10
<PAGE>

Interests shall remain subject to becoming Conformed Units in the hands of such
Permitted Transferee.

     2.2  Call by the Company.
          -------------------

          (a) If the employment of a Management Member by the Company or any of
its Subsidiaries shall terminate (a "Call Event") for any reason, then the
Company shall have the right to purchase (the "Call Option"), by delivery of a
written notice (the "Call Notice") to such terminated Management Member no later
than ninety (90) days after the date of such Call Event, and such Management
Member and such Management Member's Permitted Transferees (the "Call Group")
shall be required to sell all (but not less than all) of the Call Securities (as
defined below) at a price per share equal to the Call Price (as defined below)
of such Call Securities as of the date the Call Notice is delivered.

          (b) For purposes of this Section 2.2, the term "Call Securities" shall
mean all of the Class A Interests, Class B Interests, Class D Interests and
Class E Interests which are owned by the members of the Call Group on the date
of such Call Event.  In the case of the Class D and Class E Interests, this call
right shall apply only to such Interests which are no longer subject to being
converted into a "Conformed Interest" under the Operating Agreement.

          (c) For purposes of this Section 2.2, the term "Call Price" shall mean

               (i)  with respect to Class A Interests,

                    (A) in the event of a termination of a Management Member's
          employment (i) by the Company without Cause, (ii) by the Executive for
          Good Reason or (iii) by virtue of the Executive's death or Disability,
          the greater of (x) the Investment Price of such Interests and (y) the
          Fair Market Value of such Interests; and

                    (B) in the event of a termination of a Management Member's
          employment (i) by the Company for Cause or (ii) by the Executive's
          Voluntary Termination, the lower of (x) the Investment Price of such
          Interests and (y) the Fair Market Value of such Interests.

               (ii) with respect to Class B, Class D and Class E Interests,

                    (A) in the event of a termination of a Management Member's
          employment (i) for Cause or (ii) by the Executive's Voluntary
          Termination (other than due to death, Disability or normal
          retirement), no consideration; and

                    (B) in the event of a termination of a Management Member's
          employment for any reason other than as set forth in Section
          2.2(c)(ii)(A) above, the Fair Market Value of such Interests.

          (d) The closing of any purchase of Call Securities by the Company
pursuant to Section 2.2(a) shall take place at the principal office of the
Company no later than the one hundred eightieth (180th) day after the Call
Event.  At such closing, the Company shall deliver to

                                       11
<PAGE>

the Call Group consideration in an amount equal to the aggregate Call Price
payable in respect of such Call Securities against delivery of original
certificates representing Interests (if such interests are certificated) and
transfer documents duly endorsed in favor of the Company representing the Call
Securities. The Company, at its option, may pay the consideration for such Call
Securities in the form of a bank or certified check or wire transfer. If the
Call Event is due to the termination of the Management Member's Employment for
Cause and the Company is unable to exercise its Call Option by payment of the
Call Price in cash because such payment would cause the Company or any
Subsidiary to be in violation of applicable law or in default under or otherwise
in violation of the terms of, or limited by the ceiling in the availability or
credit advances under, any loan, credit or investment agreements or promissory
notes to which the Company or any Subsidiary is a party (a "Default"), the
Company may exercise such Call Option, at its sole election, and pay the Call
Price by delivery of a five (5) year promissory note issued by the Company,
bearing interest at a fixed rate of interest per annum equal to the applicable
federal rate on the date of issuance for notes of that maturity, such interest
to be payable quarterly in arrears, which note shall be prepayable without
premium or penalty, and subordinated to all other funded debt of the Company and
its Subsidiaries on terms reasonably satisfactory to the holders of such funded
debt (each a "Company Note," and collectively, the "Company Notes"). If the
Company shall issue a Company Note as payment of the Call Price, the Company
shall not be obligated to make any payment of principal or interest due under a
Company Note if the Company or any Subsidiary is at the time of the delivery of
such payment, or would be upon delivery of such payment and as a consequence
thereof, in Default. In the event the Company cannot make payments of principal
and interest due under a Company Note because it is in Default, the Company will
undertake to make payment of principal and interest due under such Company Note
at such time as the Company is no longer in Default and would not be so in
Default by virtue of the delivery of such Company Note or any payment of
principal and interest due under such Company Note as contemplated herein.

          (e) Notwithstanding anything set forth in this Section 2.2 to the
contrary, prior to the exercise by the Company of its Call Option to purchase
Call Securities pursuant to this Section 2.2, the Board of Managers of the
Company may designate one or more new or existing employees of the Company or
any Subsidiary (individually a "Designated Employee" and collectively, the
"Designated Employees") or another Member who shall have the right, but not the
obligation, to exercise the Call Option and to acquire, in lieu of the Company,
some or all (as determined by the Company) of the Call Securities that the
Company is entitled to purchase from the Call Group hereunder, on the same terms
and conditions as set forth in Section 2.2(d) which apply to the purchase of
Call Securities by the Company.   Concurrently with any such purchase of Call
Securities by any such Designated Employee, such Designated Employee shall
execute a counterpart of this Agreement, whereupon such Designated Employee
shall be deemed a "Management Member" and shall have the same rights and be
bound by the same obligations as the other Management Members hereunder.

          (f) If neither the Company nor any Designated Employee or other Member
elects to exercise the Call Option and deliver a Call Notice within 90 days of a
Call Event, then the Call Option provided in this Section 2.2 shall terminate
but the Management Member and his Permitted Transferees shall continue to hold
such Call Securities pursuant to all of the other provisions of this Agreement
and other applicable agreements (including without limitation, any provisions
relating to termination of Class D and Class E Interests).

                                       12
<PAGE>

          (g) Notwithstanding the provisions of Sections 2.2 and 2.3, the
Company shall not have a Call Option with respect to Interests of a Management
Member, nor shall a Management Member have a put right with respect to Interests
if either (i) the Subsidiary or division of the Company for which such
Management Member works is sold to an unaffiliated third party, such Management
Member offers to become an employee of the buyer for at least one year following
such sale at a compensation level and with responsibilities substantially
equivalent to those in place immediately before such sale, and the buyer
declines such offer of employment, or (ii) there is an internal reorganization
or restructuring of the Company and its Subsidiaries pursuant to which such
Management Member's position is eliminated or materially changed, such
Management Member offers to continue in the employ of the Company at a
compensation level comparable to that in place immediately prior to such
reorganization or restructuring, and to assume responsibilities appropriate for
his experience and abilities, and the Company declines such offer of employment.

          (h) The Company shall have the right to redeem the PIK Preferred
Interest at any time for an amount equal to the Capital Contribution
attributable to said PIK Preferred Interest plus any and all accumulated and
unpaid guaranteed payments associated with said PIK Preferred Interest.  Payment
shall be made in cash (denominated in EUROS) on the date of redemption.

     2.3  Put Right. Notwithstanding the provisions of Section 2.2 (other than
          ---------
subparagraph (g) thereof) hereof:

          (a) If the employment of a Management Member by the Company or any of
its Subsidiaries is terminated by the Company without Cause or by such
Management Member for Good Reason, the Management Member shall have the right to
require the Company to purchase (the "Put Right") all but not less than all of
the Class A Interests owned by such Management Member (and his Permitted
Transferees) at the Investment Price for such Class A Interests.  The Put Right
shall be exercised by the Management Member by delivery of a written notice (the
"Put Notice") to the Company no later than one hundred (100) days after
termination of employment.

          (b) The closing of any purchase of Class A Interests by the Company
pursuant to Section 2.3(a) shall take place at the principal office of the
Company no later than the 180th day after termination of employment.  At such
closing, the Company shall deliver to the Management Member consideration in an
amount equal to the aggregate purchase price payable in respect of such Class A
Interests subject to the Put Right against delivery of original certificates
representing Interests and transfer documents duly endorsed in favor of the
Company representing the Class A Interests purchased at such closing.  The
Company, at its option, may pay the consideration described in the preceding
sentence in the form of a bank or certified check or wire transfer.

          (c) At any time after the first anniversary of the Effective Date as
defined in the Operating Agreement, Marconi shall have the right to require the
Company to redeem all or any portion of the PIK Preferred Interest then owned by
Marconi for an amount equal to the Capital Contribution attributable to Marconi
with respect to said PIK Preferred Interest, plus any accumulated but unpaid
guaranteed payments with respect to said PIK Preferred Interest, which

                                       13
<PAGE>

amount shall be payable to the issuer of the Senior Subordinated Notes due 2010
in consideration for the issuance to (or at the direction of) Marconi of such
further Senior Subordinated Notes of an aggregate face amount equal to the
amount payable to that issuer pursuant to this Section 2.3(d), provided however,
that said right may be exercised by Marconi only if (i) the Fixed Charge
Coverage Ratio (as defined under and calculated as described in the Indenture in
its form on the date hereof), for the Company's most recent four (4) fiscal
quarters of which internal financial statements are available immediately
preceding the relevant exchange date would have been at least 2.5 to 1.0
determined on a pro forma basis as if the Senior Subordinated Note to be issued
had been issued at the beginning of said four (4) quarter period; and (ii) no
Default or Event of Default has occurred and is continuing under (and as defined
in) the Indenture.

          (d) On the occurrence of any Change of Control, as defined under the
Indenture in the form it is on the date hereof, Marconi shall have the right (by
giving two (2) days' written notice to the Company) to require the Company to
redeem all of the PIK Preferred Interest for an amount equal to the Capital
Contribution attributable to said PIK Preferred Interest, plus any accumulated
but unpaid guaranteed payments with respect to said PIK Preferred Interest,
payable to Marconi on the date specified in said notice in cash (denominated in
Euros).

          (e) On the eleventh (11th) anniversary of the Effective Date (as
defined in the Operating Agreement) the Company shall redeem all of the PIK
Preferred Interest for an amount equal to the Capital Contribution attributable
to said PIK Preferred Interest plus any accumulated but unpaid guaranteed
payments with respect to said PIK Preferred Interest, payable to Marconi on that
anniversary in cash (denominated in Euros).

     2.4  Take Along.
          ----------

          (a) If any of the Members, individually or collectively owning more
than fifty percent (50%) of the then outstanding Interests measured by
Percentage Interest (referred to herein as the "Take-Along Group"), determine to
sell or exchange (in a business combination or otherwise) more than fifty
percent (50%) of the then outstanding Interests also so measured in one or a
series of bona fide arms-length transactions to a Third Party (the "Proposed
Transfer Percentage"), then upon fifteen (15) Business Days written notice by
the Take Along Group to each other Member, which notice shall include reasonable
details of the proposed sale or exchange including the proposed time and place
of closing and the consideration to be received by the Take Along Group (such
notice being referred to as the "Sale Request"), each other Member (other than
Marconi) (each, a "Seller") shall be obligated to, and shall sell, transfer and
deliver, or cause to be sold, transferred and delivered, to such Third Party on
the same terms as the Take Along Group, that number of Interests owned by such
Seller as shall equal the product of (A) a fraction, the numerator of which is
the Percentage Interests proposed to be transferred by the Take Along Group as
of the date of such Sale Request multiplied by the Proposed Transfer Percentage
and the denominator of which is the aggregate Percentage Interests actually
owned as of the date of such Sale Request by the Take Along Group, multiplied by
(B) the Percentage Interest actually owned as of the date of such Sale Request
by such Seller.  Each Seller shall (i) deliver certificates (if any) for all of
its Interests at the closing of the proposed Transfer, free and clear of all
claims, liens and encumbrances and (ii) if Member approval of the

                                       14
<PAGE>

transaction is required, vote his Interests in favor thereof. The provisions of
this Section 2.4 shall not apply to a Permitted Transfer or to a Transfer
pursuant to Section 2.3.

          (b) If a Sale Request shall be given which relates to the sale of
fewer than all Interests then outstanding, each of BancBoston Investments Inc.
and Northwestern may, by notice given to the Take-Along Group within seven (7)
Business Days after receipt of the Sale Request, elect to sell all of its
Interests in connection with the transaction which is the subject of the Sale
Request.  In such event, the Interests to be sold by all other Members in such
transaction will be reduced proportionately.

     2.5  Come Along.
          ----------

          (a) Except as provided in Sections 2.5(d), 2.9, 2.10 and 2.11 hereof,
no Member shall Transfer  outstanding Interests of the Company to a Third Party
who is not a Permitted Transferee without complying with the terms and
conditions set forth in Section 2.5(b) and 2.5(c) below; provided, however, that
this Section 2.5 shall not in any way limit or affect the restrictions of
Section 2.1 or the provisions of 2.5(j).

          (b) Any Member, when desiring to Transfer Interests (the
"Transferor"), shall give not less than fifteen (15) days prior written notice
of such intended Transfer to each other Member and to the Company.  Such notice
(the "Participation Notice") shall set forth the terms and conditions of such
proposed Transfer, including the name of the prospective transferee, the number
of Interests proposed to be transferred (the "Participation Securities") by the
Transferor, the purchase price per share proposed to be paid therefor and the
payment terms and type of transfer to be effectuated.  Within ten (10) days
following the delivery of the Participation Notice by the Transferor to each
other Member and to the Company, each Member desiring to participate in such
proposed Transfer (each, a "Participating Offeree") shall, by notice in writing
to the Transferor and to the Company, have the opportunity and right to sell to
the purchasers in such proposed Transfer (upon the same terms and conditions as
the Transferor) up to that number of Interests owned by such Participating
Offeree as shall equal the product of (i) a fraction, the numerator of which is
the number of Interests owned by such Participating Offeree as of the date of
such proposed Transfer and the denominator of which is the number of Interests
actually owned as of the date of such Participation Notice by the Transferor and
by all Participating Offerees multiplied by (ii) the number of Participation
Securities.  The amount of Participation Securities to be sold by the Transferor
shall be reduced to the extent necessary to provide for such sales of Interests
by Participating Offerees.

          (c) At the closing of any proposed Transfer in respect of which a
Participation Notice has been delivered, the Transferor, together with all
Participating Offerees, shall deliver to the proposed transferee certificates
evidencing the Interests to be sold thereto duly endorsed with stock powers and
shall receive in exchange therefor the consideration to be paid or delivered by
the proposed transferee in respect of such Interests as described in the
Participation Notice.

          (d) The provisions of this Section 2.5 shall not apply to (i) any
Permitted Transfer, (ii) any Transfer pursuant to Section 2.2, (iii) any
Transfer pursuant to Section 2.3, (iv)

                                       15
<PAGE>

any Transfer pursuant to Section 2.4, or (v) any Transfer by BancBoston
Investments Inc. or Northwestern of an Interest representing less than a 2%
Percentage Interest in the Company.

     2.6  Corporate Governance.
          --------------------

          (a) Initial Board.  At each annual meeting of the Members and at each
special meeting of the Members called for the purpose of electing Managers of
the Company, and at any time at which Members of the Company shall have the
right to, or shall, vote for Managers of the Company, then, and in each event,
the Members hereby agree to attend each meeting in person or by proxy and hereby
agree to vote the Interests now owned or hereafter acquired by him, her or it
(whether at a meeting or by written consent in lieu thereof) (i) so that the
Company's Board of Managers shall be designated as set forth herein, (ii) to fix
the number of members of the Board at six (6) and (iii) to elect and thereafter
to continue in office as a Manager of the Company the following:  (i) two (2)
Managers shall be persons nominated by the Berkshire Members (who shall
initially be Bradley M. Bloom and Randy Peeler (collectively the "Berkshire
Representatives"); and (ii) four (4) Managers shall be persons nominated by the
Management Members (who shall initially be John J. McCann, Larry Gunning, Roger
W. Evans and David R. Castle) (collectively, the "Management Representatives").
A vacancy in either of the positions on the Board of Managers to be occupied by
a Berkshire Representative shall be filled only by vote or written consent of a
majority in interest of the Berkshire Members and a vacancy in any of the
positions on the Board of Managers to be held by the Management Representatives
shall be filled only by vote or written consent of Management Members holding at
least eighty percent (80%) in interest of the Interests held by all Management
Members.

          (b) Independent Manager.  The parties hereto agree that they will use
their best efforts to add within six (6) months after the date hereof an
additional Manager with relevant industry experience who shall not be an
Affiliate of any other Member.

          (c) Board Expansion.  The Berkshire Members may at any time require,
by written notice to the other Members (the "Increase Notice"), that the number
of Managers constituting the Board of Managers be increased by such number of
Managers designated by the Berkshire Members that after giving effect to the
addition of such Members a majority of the Members shall have been designated by
the Berkshire Members.  Each Member agrees that such Member and its Permitted
Transferees shall take all action as may be necessary or appropriate, including
without limitation, the voting of all Interests owned by them, to so increase
the number of Managers constituting the Board of Managers and to elect the
additional Managers so designated by the Berkshire Members.

          (d) Compensation Committee. There shall be established at all times
during the term of this Agreement, a Compensation Committee of the Board of
Managers of the Company (the "Compensation Committee") which shall be comprised
of three (3) Managers as follows: one Member shall be the President of the
Company, and the other two Members shall be Berkshire Representatives.  The
Compensation Committee will determine the compensation of all senior employees
and consultants of the Company (including salary, bonus, equity participation
and benefits). The compensation of senior employees and consultants shall be
reviewed by the Compensation Committee at least annually, and the decision by a
majority of the members of the Compensation Committee will control the
Committee's actions.

                                       16
<PAGE>

          (e) Audit Committee. There shall be established at all times during
the term of this Agreement, an Audit Committee of the Board of Managers of the
Company (the "Audit Committee") which shall be comprised of two Berkshire
Representatives.  The Audit Committee will determine the Company's audit
policies, review audit reports and recommendations made by the Company's
internal audit staff and its independent auditors, meet with the Company's
independent auditors, oversee the independent auditors, and recommend the
Company's engagement of independent auditors.

          (f) Board Meetings.  The Boards of Managers of the Company shall meet
at least four times a year at a location mutually acceptable to the then members
of the Board of Managers.  Additional meetings, either telephonically or in
person, may be called in accordance with the notice requirements set forth in
the Company's Operating Agreement.

          (g) Indemnification.  The Company will maintain indemnification for
officers and Managers substantially similar to that which exists as of the date
hereof.

          (h) Observer Rights.  As long as Northwestern owns any Class C
Interests, it shall have the right to receive notice of each meeting of the
Board of Managers of the Company, and any committee thereof, to have one of its
designees attend each such meeting as a non-voting observer (at the expense of
Northwestern), and to receive copies of all materials distributed to Managers at
any such meeting.

          (i) PIK Preferred Interest Rights.  In the event of a breach of the
covenants associated with the PIK Preferred Interest as provided in or given to
Marconi in this Agreement or Operating Agreement, the holders of the PIK
Preferred Interest shall have the right to elect one (1) Manager to the
Company's Board of Managers who shall serve until said breach has been cured.
The Board will be adjusted to allow for said additional Manager.  A vacancy in
the position on the Board of Managers created pursuant to this Section 2.6(i)
shall be filled only by appointment made by Marconi.

     2.7  Preemptive Rights.
          -----------------

          (a) Preemptive Right.  The Company hereby grants to each Member so
long as it shall own any Interests, the right to purchase up to such Member's
Pro Rata Fraction of New Securities (as defined in paragraph (b) below) which
the Company, from time to time, proposes to sell or issue following the date
hereof.

          (b) Definition of New Securities.  "New Securities" shall mean any
Interests of the Company whether now authorized or not, any rights, options or
warrants to purchase Interests and any indebtedness or class of Interests of the
Company which is convertible into Interests (or which is convertible into a
security which is, in turn, convertible into Interests); provided that the term
"New Securities" does not include (i) indebtedness of the Company which is not
by its terms convertible into Interests; (ii) Interests issued as a distribution
to all Members pro rata or upon any subdivision or combination of Interests;
(iii) any employee options or similar equity rights approved by the Board of
Managers of the Company; (iv) Interests issued in exchange for the cancellation
or retirement of any debt securities of the Company or in connection with any
restructuring or other financial workout of the Company; (v) Interests issued

                                       17
<PAGE>

to selling Persons in connection with the acquisition of another corporation or
other entity by the Company or one of its Subsidiaries from such selling Person,
by merger, purchase of substantially all assets or other reorganization; (vi)
the issuance of any Interests upon the exercise or conversion of any rights,
options or warrants to purchase Interests; or (vii) not in excess of $500,000 of
Class A Interests issued to management or a Berkshire Member on or before July
29, 1998.

          (c) Notice from the Company.  In the event the Company proposes to
issue New Securities, the Company shall give each Member who has a preemptive
right under this Section 2.7 written notice of such proposal, describing the
type of New Securities and the price and the terms upon which the Company
proposes to issue the same.  For a period of fifteen (15) days following the
delivery of such notice by the Company, the Company shall be deemed to have
irrevocably offered to sell to each Member its Pro Rata Fraction of such New
Securities for the price and upon the terms specified in the notice.  Each
Member may exercise its preemptive rights hereunder by giving written notice to
the Company and stating therein the quantity of New Securities to be purchased.

          (d) Sale by the Company.  In the event any Member who has a preemptive
right under this Section 2.7 fails to exercise in full its preemptive right
within said fifteen (15) day period, the Company shall have one hundred twenty
(120) days thereafter to sell the New Securities with respect to which the
preemptive right was not exercised, at a price and upon terms no more favorable
to the purchasers thereof than specified in the Company's notice given pursuant
to Section 2.7(c).

          (e) Closing.  The Closing for any such issuance shall take place as
proposed by the Company with respect to the Interests to be issued, at which
Closing the Company shall deliver certificates for the shares in the respective
names of the purchasing Members against receipt of payment therefor.

     2.8  Confidentiality.
          ---------------

     Each Member agrees that it will keep confidential in accordance with its
internal policies and procedures in effect from time to time any written
information with respect to the Company which is furnished pursuant to this
Agreement and which is designated by the Company to it in writing as
confidential, provided that a Member may disclose any such information (i) as
has become generally available to the public (other than as a consequence of its
actions) or to such Member on a non-confidential basis from a source other than
the Company or as was known to such Member on a non-confidential basis prior to
its disclosure by the Company, (ii) as may be required or appropriate in any
report, statement or testimony submitted to any municipal, state or Federal
regulatory body having or claiming to have jurisdiction over such Member or, in
the case of Northwestern, to the National Association of Insurance Commissioners
or similar organizations or their successors, (iii) as may be required or
appropriate in response to any summons or subpoena or in connection with any
litigation, (iv) to the extent that such Member reasonably believes it
appropriate in order to protect its investment in the Interests or in order to
comply with any law, order, regulation or ruling applicable to it, (v) to its
officers, trustees, authorized representatives, employees, auditors or counsel
or to rating agencies or another holder of the Interests, (vi) to Persons who
are parties to similar confidentiality agreements, or (vii) to

                                       18
<PAGE>

the prospective transferee in connection with any contemplated transfer of any
of the Interests by such Member.

     2.9  Redemption of Class C Interests at Option of Holders ("Put").
          ------------------------------------------------------------

          (a) At any time within 180 days after December 31, 2005, if the
Company shall not have consummated prior to such date a Liquidity Event, the
Class C Members having more than fifty percent (50%) of the Class C Member
Interests outstanding as of April 29, 1998 (the "Majority Class C Holders") may
give the Company notice (a "Put Notice") of its or their intention to require
the Company to redeem ("Put") all, but not less than all, of the Class C
Interests held by such Majority Class C Members (collectively, together with
other Class C Interests as to which Members have requested repurchase as herein
provided the "Put Interests").  Upon receipt of a Put Notice, the Company shall
give a copy thereof to each other Class C Member.  Each such other Class C
Member may, by written notice to the Company within five (5) Business Days after
receipt of a copy of the Put Notice, elect to include all, but not less than
all, of its Class C Interests in the Put Notice.  Any Class C Member who fails
to give such notice to include its Class C Interest in the Put Notice, shall
thereafter have no further right to Put its Class C Interests to the Company.
The Company shall not be required to effect more than one Put pursuant to this
Section 2.9.

          (b) Put Price.  The redemption price ("Put Price") to be paid for each
Put Interest so redeemed pursuant to this Section 2.9 shall be an amount equal
to the Fair Market Value thereof.

          (c) Closing of Put.  The closing of the Put shall take place at the
principal office of the Company within one hundred twenty (120) days after the
date of the Put Notice (the "Put Date").  At the closing, the Majority Class C
Members who have participated in the Put shall receive from the Company a wire
transfer of immediately available funds in an amount equal to the total Put
Price for all Put Interests redeemed thereby pursuant to such Put.

          (d) Dividends After Put Date.  No Put Interest is entitled to any
dividends or other distributions accruing or paid after the Put Date.  On such
date all rights of the Member of such redeemed Interest will cease, and such
Interest will not be deemed to be outstanding.

          (e)  Delay by Company.
               ----------------

               (i) Upon receipt of a Put Notice from the Majority Class C
     Member(s) that they wish to sell Class C Interests to the Company, the
     Company shall immediately seek to determine in good faith a source of
     financing to fund the purchase of all Class C Interests as to which
     repurchase has been requested.  The Company hereby agrees to use its best
     efforts to complete the purchase of the Class C Interests from each Member
     which has elected to Put the Class C Interests held by such Member in
     accordance with this Section 2.9.  For this purpose "best efforts" means
     commercially reasonable terms for the Company consistent with industry
     practice.  If the Company is unable to purchase all of the Class C
     Interests as to which repurchase has been requested, then it shall purchase
     so much of such Class C Interests as it is permitted to so repurchase.  In
     the event and to the extent that the Company fails, by reason of (1)
     unavailability of

                                       19
<PAGE>

     financing as herein contemplated or (2) any contractual restriction on the
     ability of the Company to satisfy its obligation to purchase the Put
     Interests pursuant to Section 2.9 contained in any financing document or
     (3) applicable legal restrictions or prohibitions (the "Put Conditions"),
     to satisfy its obligation contained in this Section 2.9 in its entirety,
     then, and in such event, the Company shall as soon as practicable and in
     any event within ten (10) Business Days following the date of such Put
     Notice notify (the "Put Non-Compliance Notice") each Member which has
     elected to Put the Class C Interests held by such Member of its inability
     to pay the Put Price and explain in reasonable detail which of the Put
     Conditions are the basis for such inability.

               (ii) Within fifteen (15) Business Days following the date of such
     Put Non-Compliance Notice, the Company shall comply with the provisions of
     this clause (ii) of Section 2.9(e).  Any amounts which shall have become
     payable pursuant to this Section 2.9 but which are not paid when due, will
     be converted to subordinated indebtedness for borrowed money of the Company
     as provided in this Section 2.9(e), will on and as of the related Put Date
     then and thereupon be deemed to be subordinated indebtedness for borrowed
     money of the Company which shall be evidenced by a note substantially in
     the form attached hereto as Exhibit B (a "Put Note"), which Put Note shall
     be dated the Put Date, shall bear interest at the rate hereinafter stated,
     which interest shall be payable semiannually from and including the Put
     Date to, but not including, the date of actual payment thereof, and shall
     be due and payable on the second anniversary of the Put Date.  On each
     semiannual interest payment date, the Company may elect to pay interest on
     such Put Date either in cash, in which event the interest rate payable in
     respect of the Put Note for such semiannual period shall have been equal to
     twelve percent (12%) per annum (computed on the basis of a 360-day year of
     twelve 30-day months), or by the delivery of an additional note in the form
     attached hereto as Exhibit B (a "PIK Note"), in which event the interest
     rate payable in respect of the Put Note shall have been 14% per annum
     (computed on the basis of a 360-day year of twelve 30-day months) and the
     principal amount of such PIK Note shall be equal to interest at such 14%
     per annum rate.  Each Put Note, duly and properly executed, shall be
     delivered by the Company to each Member of the Put Interests within fifteen
     (15) Business Days of the date of the Put Non-Compliance Notice, together
     with an opinion of counsel to the Company and such other customary showings
     as each Member shall request evidencing that such Put Notes are a legal,
     valid and binding obligations of the Company enforceable in accordance with
     their respective terms.  The Company shall also deliver the legal opinion
     and other showings which it delivered with respect to the Put Note but
     pertaining to such PIK Note.  Thereafter on each semiannual interest
     payment date in respect of the Put Note or any PIK Note, the Company may
     elect to pay interest on and in respect of such Put Note or PIK Note, as
     the case may be, either in cash at an interest rate equal to twelve percent
     (12%) per annum (computed on the basis of a 360-day year of twelve 30-day
     months) or by the delivery of another PIK Note, in which event the interest
     rate payable in respect of such preceding semiannual interest payment
     period relating to Put Note or PIK Note, as the case may be, shall be equal
     to fourteen percent (14%) per annum (computed on the basis of a 360-day
     year of twelve 30-day months) and the principal amount of the PIK Note
     delivered in the event of such election shall be in an amount equal to
     interest at such fourteen percent (14%) per annum interest rate.

                                       20
<PAGE>

               (iii)  The Company covenants and agrees that if it is unable to
     satisfy one or more of the Put Conditions, then and in such event from and
     after the Put Date it will not at any time thereafter declare or pay any
     dividend or make any other distribution on any Interests (other than
     distributions to fund tax obligations payable in a particular class or
     series of preferred stock or Common Stock, as the case may be, to holders
     thereof) or purchase, redeem, or otherwise acquire for consideration of any
     Interests, unless and until the Company shall have satisfied and fulfilled
     its obligations contained in this Section 2.9.

     2.10  Conversion.  Each of the Members hereby agrees that upon request of
the Berkshire Members, it will, at the expense of the Company, take such action
and execute such documents as may reasonably be necessary to convert the Company
into a corporation.  In such event, Members shall be entitled to receive upon
such conversion that percentage of the securities of the corporation into which
the Company is converted as equals the percentage (and nature) of the Interests
which such Members held in the Company immediately prior to such conversion and
in the case of Marconi, the same economic rights that Marconi held with respect
to the PIK Preferred Interest immediately prior to the conversion; provided
that, (a) the Company shall have complied with all of the provisions of the
Operating Agreement, including, without limitation, those relating to
proportional adjustments and anti-dilution protection with respect to the
Interests, and (b) upon completion of such conversion the securities received by
each such Member shall be on parity.  Without limiting the foregoing, in the
event that any of the Company's subsidiaries (or any successor corporation
thereto) agrees to consummate a Public Offering of its equity securities, the
Company agrees to cause such subsidiary to enter into a stockholders agreement
with the Members on terms no less favorable than the rights, preferences and
agreements set forth in this Agreement, including, without limitation the
registration rights provisions, prior to the consummation of such Public
Offering.

     2.11  Registration Rights.
           -------------------

          (a) Definitions.  As used in this Section 2.11, the following terms
              -----------
shall have the following respective meanings:

     "Common Stock" means common stock issued by any corporation into which the
Company shall be converted.

     "Commission" means the Securities and Exchange Commission, or any other
Federal agency at the time administering the Securities Act.

     "Corporation" means any corporation which is a successor entity of the
Company .

     "Exchange Act" means the Securities Exchange Act of 1934, as amended, or
any similar Federal statute, and the rules and regulations of the Commission
issued under such Act, as they each may, from time to time, be in effect.

     "Registration Statement" means a registration statement filed by the
Corporation with the Commission for a public offering and sale of Common Stock
(other than a registration statement on Form S-8 or Form S-4, or their
successors, or any other form for a similar limited purpose, or

                                       21
<PAGE>

any registration statement covering only securities proposed to be issued in
exchange for securities or assets of another corporation).

     "Registration Expenses" means the expenses described in Section 2.11(g).

     "Registrable Shares" means (i) any shares of Common Stock hereafter
acquired by the Stockholders and any shares of Common Stock issued in respect of
such shares (because of stock splits, stock dividends, reclassification,
recapitalizations, or similar events); provided, however, that shares of Common
Stock which are Registrable Shares shall cease to be Registrable Shares upon any
sale pursuant to a Registration Statement or Rule 144 under the Securities Act.

     "Securities Act" means the Securities Act of 1933, as amended, or any
similar Federal statute, and the rules and regulations of the Commission issued
under such Act, as they each may, from time to time, be in effect.

     "Stockholder" means a Member which has become a stockholder of the
Corporation as contemplated by Section 2.10.

          (b)  Demand Registrations.
               --------------------

          (1) If the Corporation shall receive a written request (specifying
that it is being made pursuant to this Section 2.11(b)(1)) from the Berkshire
Members requesting that the Corporation file a registration statement under the
Securities Act or a similar document pursuant to any other statute then in
effect corresponding to the Securities Act, covering the registration of
Registrable Shares then owned by such Berkshire Members, the Corporation shall
promptly deliver a notice of such request to all other Members.  Members may, by
written notice to the Corporation given within twenty-five (25) days after
receipt of the copy of the Berkshire Members' request, elect to include
Registrable Shares held by them in the registration requested by the Berkshire
Members.  The Corporation shall not later than one hundred eighty (180) days
after receipt by the Corporation of such a written request from the Berkshire
Members, file a registration statement with the Commission relating to such
Registrable Shares as to which such request for a demand registration relates
and the Corporation shall use its best efforts to cause the offering of such
Registrable Shares to be registered under the Securities Act.  The Corporation
shall be obligated to effect only two (2) registrations pursuant to this Section
2.11(b)(1); provided, however, that no registration initiated hereunder shall
count as a registration initiated hereunder unless and until it shall have been
consummated.

          (2) If, pursuant to Section 2.11(c), the total amount of Registrable
Shares that all Stockholders request to be included in an offering made pursuant
to this Section 2.11(b) exceeds the amount of securities that the underwriters
reasonably believe compatible with the success of the offering, then the
Corporation will include in such registration only the number of securities
which, in the good faith opinion of such underwriters, can be sold, and
Stockholders who requested that Registrable Securities be included in such
registration shall be entitled to include Registrable Securities pro rata based
on the number of Registrable Shares each of them owns.

                                       22
<PAGE>

          (3) The underwriter of any registration requested under this Section
2.11(b) shall be selected by the Berkshire Members and shall be reasonably
acceptable to the Corporation.

          (4) The Corporation may include shares in any registration requested
under this Section 2.11(b) if the inclusion of such shares would not limit the
number of Registrable Shares sought to be included by the Berkshire Members
making the demand and the other Members which have elected to participate in
such registration, or reduce the offering price thereof; provided that if the
number of shares sold by the Berkshire Members and such other Members is less
than one-half of the number of shares subject to such registration as a result
of the shares included by the Corporation, then such registration shall be
deemed to have been effected under Section 2.11(c) hereof and shall not count as
one of the two registrations which may be requested by the Berkshire Members
making the demand pursuant to this Section  2.11(b).

          (c) Piggyback Registration.  If, at any time, the Corporation
determines to register any of its equity securities (excluding the registration
of any equity security issued to non-affiliates of the Corporation as part of a
bona fide debt offering of units comprised of such equity security and a debt
security of the Corporation) for its own account or for the account of others
under the Securities Act in connection with the public offering of such
securities, the Corporation shall, at each such time, promptly give each
Stockholder written notice of such determination no later than twenty-five (25)
business days before the effective date of any such registration.  Upon the
written request of any Stockholder received by the Corporation within fifteen
(15) days after the giving of any such notice by the Corporation, the
Corporation shall use its best efforts to cause to be registered under the
Securities Act all of the Registrable Shares of each Stockholder that such
Stockholder has requested be registered.  If the total amount of Registrable
Shares that are to be included by the Corporation (or other person (including
any Stockholder) for whose account the registration is made) for its own account
and at the request of Stockholders pursuant to this Section 2.11(c) exceeds the
amount of securities that the underwriters reasonably believe compatible with
the success of the offering, then the Corporation will include in such
registration only the number of securities which in the opinion of such
underwriters can be sold, in the following order:

               (i) first, the equity securities of the Corporation (or other
     person at whose request the registration is made);

               (ii) second, if the registration is not for the account of the
     Corporation, the equity securities of the Corporation; and

               (iii)  third, the Registrable Shares requested to be included by
     the Stockholders pro rata based on the number of Registrable Shares which
     each of them owns with the effect and result that all of the Stockholders,
     including without limitation, Berkshire Members, shall be treated equally
     and ratably in connection with any registration pursuant to this Section
     2.11(c); provided, however if an underwriter who is not an affiliate of any
     Stockholder or the Corporation, in good faith, requests for the success of
     the offering that the number of Registrable Shares to be sold by any of the
     Stockholders exercising piggyback rights pursuant to this Section 2.11(c)
     be apportioned

                                       23
<PAGE>

     or excluded, such number of Registrable Shares of such Stockholders shall
     be reduced or not included to the extent so requested by said underwriter.

          (d) Registration on Form S-3.  The Corporation shall use its best
efforts to qualify for registration on Form S-3 or any comparable or successor
form; and to that end the Corporation shall register (whether or not required by
law to do so) the Common Stock under the Exchange Act in accordance with the
provisions of the Exchange Act following the effective date of the first
registration of any securities of the Corporation on Form S-1 or any comparable
or successor form.  After the Corporation has qualified for the use of Form S-3,
in addition to the rights contained in Section 2.11(b) hereof, the Stockholders
shall have the right to request an unlimited number of registrations on Form S-3
(such requests shall be in writing and shall state the number of shares of
Registrable Shares to be disposed of and the intended methods of disposition of
such shares by such Stockholder or Stockholders), provided that in no event
shall the Corporation be required to register shares with an aggregate market
value of less than Three Million Dollars ($3,000,000) and the Corporation shall
not be required to register Shares under this Section 4 more than twice in any
twelve (12) month period.

          (e) Obligations of the Corporation.
              ------------------------------

          (1) Whenever required under Sections 2.11(b) or 2.11(c) hereof to use
its best efforts to effect the registration of any Registrable Shares, the
Corporation shall:

               (i) Prepare and file with the Commission a registration statement
     with respect to such Registrable Shares and use its best efforts to cause
     such registration statement to become and remain effective, including,
     without limitation, filing of post-effective amendments and supplements to
     any registration statement or prospectus necessary to keep the registration
     statement current;

               (ii) as expeditiously as reasonably possible, prepare and file
     with the Commission such amendments and supplements to such registration
     statement and the prospectus used in connection with such registration
     statement as may be necessary to comply with the provisions of the
     Securities Act with respect to the disposition of all securities covered by
     such registration statement and to keep each registration and qualification
     under this Agreement effective (and in compliance with the Securities Act)
     by such actions as may be necessary or appropriate for a period of up to
     one hundred eighty (180) days (if, in the reasonable discretion of the
     Stockholders owning securities covered by such registration statement, such
     period of time is necessary for the successful completion of the offering
     of such securities) after the effective date of such registration
     statement, all as requested by such Stockholders;

               (iii)  as expeditiously as reasonably possible furnish to the
     Stockholders such numbers of copies of a prospectus, including a
     preliminary prospectus, in conformity with the requirements of the
     Securities Act, and such other documents as they may reasonably request in
     order to facilitate the disposition of Registrable Shares owned by them;

                                       24
<PAGE>

               (iv) as expeditiously as reasonably possible use its best efforts
     to register and qualify the securities covered by such registration
     statement under such securities or "blue sky" laws of such jurisdictions as
     shall be reasonably appropriate for the distribution of the securities
     covered by the registration statement, provided that the Corporation shall
     not be required in connection therewith or as a condition thereto to
     qualify to do business or to file a general consent to service of process
     in any such jurisdiction, and further provided that (anything in this
     Agreement to the contrary notwithstanding with respect to the bearing of
     expenses) if any jurisdiction in which the securities shall be qualified
     shall require that expenses incurred in connection with the qualification
     of the securities in that jurisdiction be borne by selling stockholders,
     then such expenses shall be payable by selling stockholders pro rata, to
     the extent required by such jurisdiction;

               (v) use its best efforts to cause all Registrable Shares covered
     by such registration statement to be registered with or approved by such
     other governmental agencies or authorities as may be necessary to enable
     the seller or sellers thereof to consummate the disposition or such
     Registrable Shares;

               (vi) notify each seller of Registrable Shares covered by such
     registration statement, at any time when a prospectus relating thereto is
     required to be delivered under the Securities Act, upon discovery that, or
     upon the happening of any event as a result of which, the prospectus
     included in such registration statement, as then in effect, includes an
     untrue statement of a material fact or omits to state any material fact
     required to be stated therein or necessary to make the statements therein
     not misleading in the light of the circumstances under which they were
     made, and at the request of any such seller or Stockholders promptly
     prepare and furnish to such seller or Stockholders a reasonable number of
     copies of a supplement to or an amendment of such prospectus as may be
     necessary so that, as thereafter delivered to the purchasers of such
     securities, such prospectus shall not include an untrue statement of a
     material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading in the
     light of the circumstances under which they were made;

               (vii)  otherwise use its best efforts to comply with all
     applicable rules and regulations of the Commission, and make available to
     its security holders, as soon as reasonably practicable, an earnings
     statement covering the period of at least twelve months, but not more than
     eighteen months, beginning with the first full calendar month after the
     effective date of such registration statement, which earnings statement
     shall satisfy the provisions of Section 2.10(k)(1) of the Securities Act,
     and will furnish to each such seller of Registrable Shares at least two (2)
     business days prior to the filing thereof a copy of any post-effective
     amendment or supplement to such registration statement or prospectus and
     shall not file any thereof to which any such seller shall have reasonably
     objected, except to the extent required by law, on the grounds that such
     amendment or supplement does not comply in all material respects with the
     requirements of the Securities Act or of the rules or regulations
     thereunder;

                                       25
<PAGE>

               (viii)  provide and cause to be maintained a transfer agent and
     registrar for all Registrable Shares covered by such registration statement
     from and after a date not later than the effective date of such
     registration statement; and

               (ix) use its best efforts to list all Registrable Shares covered
     by such registration statement on any securities exchange on which any
     class of Registrable Shares is then listed.

          (2) The Corporation will furnish to each Stockholder on whose behalf
Registrable Shares have been registered pursuant to this Agreement a signed
counterpart, addressed to such Stockholder, of an opinion of counsel for the
Corporation dated the effective date of such registration statement, and such
opinion of counsel shall cover those matters which are customarily covered in
opinions of issuer's counsel delivered to underwriters in connection with
underwritten public offerings of securities.

          (3) To the extent then permitted under applicable professional
guidelines and standards, obtain a comfort letter from the Corporation's
independent public accountants in customary form and covering such matters of
the type customarily covered by comfort letters and an opinion from the
Corporation's counsel in customary form and covering such matters of the type
customarily covered in a public issuance of securities, in each case addressed
to the Stockholder, and provide copies thereof to the Stockholders;

          (e) In connection with the preparation and filing of each registration
statement registering Registrable Shares under this Agreement, the Corporation
will give the Stockholders on whose behalf such Registrable Shares are to be so
registered and their underwriters, if any, and their respective counsel and
accountants, the opportunity to participate in the preparation of such
registration statement, each prospectus included therein or filed with the
Commission, and each amendment thereof or supplement thereto, and will give each
of them such access to its books and records and such opportunities to discuss
the business of the Corporation with its officers, its counsel and the
independent public accountants who have certified its financial statements, as
shall be necessary, in the opinion of such Stockholders or such underwriters or
their respective counsel, in order to conduct a reasonable and diligent
investigation within the meaning of the Securities Act.

          (f) Furnish Information.  It shall be a condition precedent to the
obligations of the Corporation to take any action pursuant to this Agreement
that the Stockholders shall furnish to the Corporation such information
regarding them, the Registrable Shares held by them, and the intended method of
disposition of such securities as the Corporation shall reasonably request and
as shall be required in connection with the action to be taken by the
Corporation.

          (g) Expenses of Registration.  All expenses incurred in connection
with a registration pursuant to Sections 2.11(b) or 2.11(c) hereof (excluding
underwriters' discounts and commissions, which shall be borne by the sellers),
including without limitation all registration and qualification fees, printers'
and accounting fees, fees and disbursements of counsel for the Corporation and
the reasonable fees and disbursements of one counsel for the selling
Stockholders (which counsel shall be selected by a majority in interest of such
Stockholders) shall be borne by the Corporation; provided, however, that the
Stockholders requesting a demand

                                       26
<PAGE>

registration pursuant to Section 2.11(b)(1) may withdraw such request, in which
event so long as such Stockholders agree to pay all expenses incurred by the
Corporation in connection with such requested registration, such withdrawn
request shall be deemed for all purposes herein not to have been made.

          (h) Underwriting Requirements.  In connection with any registration of
Registrable Shares under this Agreement, the Corporation will, if requested by
the underwriters for any Registrable Shares included in such registration, enter
into an underwriting agreement with such underwriters for such offering, such
agreement to contain such representations and warranties by the Corporation, and
such other terms and provisions as are customarily contained in underwriting
agreements with respect to secondary distributions, including, without
limitation, provisions relating to indemnification and contribution.  The
Stockholders on whose behalf Registrable Shares are to be distributed by such
underwriters shall be parties to any such underwriting agreement, and the
representations and warranties by, and the other agreements on the part of the
Corporation to and for the benefit of such underwriters shall be also made to
and for the benefit of such Stockholders.  The Corporation shall use its
reasonable best efforts to cause the underwriting agreement to comply with
Section 2.11(i) to this Agreement.

          (i) Indemnification.  In the event any Registrable Shares are included
in a registration statement as provided in this Agreement:

               (1) To the fullest extent permitted by law, the Corporation will
     indemnify and hold harmless each Stockholder requesting or joining in a
     registration, any underwriter (as defined in the Securities Act) for it,
     and each person, if any, who controls such Stockholder or such underwriter
     within the meaning of the Securities Act, from and against any losses,
     claims, damages, expenses (including reasonable attorneys' fees and
     expenses and reasonable costs of investigation) or liabilities, joint or
     several, to which they or any of them may become subject under the
     Securities Act or otherwise, insofar as such losses, claims, damages,
     expenses or liabilities (or actions or proceedings, whether commenced or
     threatened, in respect thereof) arise out of or are based on any untrue or
     alleged untrue statement of any material fact contained in such
     registration statement including any preliminary prospectus or final
     prospectus contained therein or any amendments or supplements thereto, or
     arise out of or are based upon the omission or alleged omission to state
     therein a material fact required to be stated therein, or necessary to make
     the statements therein not misleading, or arise out of any alleged
     violation by the Corporation of any rule or regulation promulgated under
     the Securities Act applicable to the Corporation and relating to action or
     inaction required of the Corporation in connection with any such
     registration; provided, however, that the indemnity agreement contained in
     this Section 2.11(i)(1) shall not apply to amounts paid in settlement of
     any such loss, claim, damage, liability or action if such settlement is
     effected without the consent of the Corporation (which consent shall not be
     unreasonably withheld), nor shall the Corporation be liable to anyone for
     any such loss claim, damage, liability or action to the extent that it
     arises out of or is based upon an untrue statement or omission made in
     connection with such registration statement, preliminary prospectus, final
     prospectus or amendments or supplements thereto in reliance upon and in
     conformity with written information furnished expressly for use in
     connection with such registration by such Stockholder, underwriter or
     control person.  Such indemnity shall remain in full force and

                                       27
<PAGE>

     effect regardless of any investigation made by or on behalf of such
     Stockholder, underwriter or control person and shall survive the transfer
     of such securities by such Stockholder.

               (2) To the fullest extent permitted by law, each Stockholder
     requesting or joining in a registration will indemnify and hold harmless
     the Corporation, as the case may be, each of its directors, each of its
     officers who has signed the registration statement, each person, if any,
     who controls the Corporation within the meaning of the Securities Act, and
     each agent and any underwriter for the Corporation and any person who
     controls any such agent or underwriter and each other Stockholder and any
     person who controls such Stockholder (within the meaning of the Securities
     Act) against any losses, claims, damages or liabilities to which the
     Corporation or any such director, officer, control person, agent,
     underwriter, or other Stockholder may become subject, under the Securities
     Act or otherwise, insofar as such losses, claims, damages or liabilities
     (or actions in respect thereto) arise out of or are based upon an untrue
     statement of any material fact contained in such registration statement,
     including any preliminary prospectus or final prospectus contained therein
     or any amendments or supplements thereto, or arise out of or are based upon
     the omission to state therein a material fact required to be stated therein
     or necessary to make the statements therein not misleading, in each case to
     the extent, but only to the extent, that such untrue statement or omission
     was made in such registration statement, preliminary or final prospectus,
     or amendments or supplements thereto, in reliance upon and in conformity
     with written information furnished by such Stockholder with respect to such
     Stockholder expressly for use in connection with such registration; and
     such Stockholder will reimburse any legal or other expenses reasonably
     incurred by the Corporation or any such director, officer, control person,
     agent, underwriter, or other Stockholder in connection with investigating
     or defending any such loss, claim, damage, liability or action; provided
     however, the indemnity obligation of each such Stockholder hereunder shall
     be limited to and shall not exceed the net proceeds actually received by
     such Stockholder upon a sale of Registrable Shares pursuant to a
     registration statement hereunder; and provided, further that the indemnity
     agreement contained in this Section 2.11(i)(2) shall not apply to amounts
     paid in settlements effected without the consent of such  Stockholder
     (which consent shall not be unreasonably withheld).  Such indemnity shall
     remain in full force and effect regardless of any investigation made by or
     on behalf of the Corporation or any such director, officer, Stockholder,
     underwriter or control person and shall survive the transfer of such
     securities by such Stockholder.

               (3) Any person seeking indemnification under this Section 2.11(i)
     will (i) give prompt notice to the indemnifying party of any claim with
     respect to which it seeks indemnification (but the failure to give such
     notice will not affect the right to indemnification hereunder, unless the
     indemnifying party is materially prejudiced by such failure) and (ii)
     unless in such indemnified party's reasonable judgment a conflict of
     interest may exist between such indemnified and indemnifying parties with
     respect to such claim, permit such indemnifying party, and other
     indemnifying parties similarly situated, jointly to assume the defense of
     such claim with counsel reasonably satisfactory to the parties.  In the
     event that the indemnifying parties cannot mutually agree as to the
     selection of counsel, each indemnifying party may retain separate counsel
     to act on its

                                       28
<PAGE>

     behalf and at its expense. The indemnified party shall in all events be
     entitled to participate in such defense at its expense through its own
     counsel. If such defense is not assumed by the indemnifying party, the
     indemnifying party will not be subject to any liability for any settlement
     made without its consent (but such consent will not be unreasonably
     withheld). No indemnifying party will consent to entry of any judgment or
     enter into any settlement which does not include as an unconditional term
     thereof the giving by the claimant or plaintiff to such indemnified party
     of a release from all liability in respect of such claim or litigation. An
     indemnifying party who is not entitled to, or elects not to, assume the
     defense of a claim will not be obligated to pay the fees and expenses of
     more than one counsel for all parties indemnified by such indemnifying
     party with respect to such claim, unless in the reasonable judgment of any
     indemnified party a conflict of interest may exist between such indemnified
     party and any other of such indemnified parties with respect to such claim,
     in which event the indemnifying party shall be obligated to pay the
     reasonable fees and expenses of such additional counsel.

               (4) If for any reason the foregoing indemnification is
     unavailable to any party or insufficient to hold it harmless as and to the
     extent contemplated by the preceding paragraphs of this Section 2.11(i),
     then each indemnifying party shall contribute to the amount paid or payable
     by the indemnified party as a result of such loss, claim, damage, expense
     or liability in such proportion as is appropriate to reflect the relative
     benefits received by the Corporation, on the one hand, and the applicable
     indemnified party, as the case may be, on the other hand, and also the
     relative fault of the Corporation and any applicable indemnified party, as
     the case may be, as well as any other relevant equitable considerations.

          (j) Lock-Up Agreement.  If required by the underwriter, each
Stockholder agrees not to sell or otherwise transfer or dispose of any Common
Stock (or other securities) of the Corporation held by such Stockholder (other
than securities included in the applicable registration statement, or shares
purchased in the public market after the effective date of registration or
shares or other securities acquired other than by receipt of Interests pursuant
to the Operating Agreement or this Agreement) or any interest or future interest
therein during such period (not to exceed 180 days if such registration is the
Corporation's initial public offering and not to exceed 90 days if such
registration is other than the Corporation's initial public offering) as is
acceptable to the underwriter following the effective date of each registration
statement of the Corporation filed under the Securities Act which includes
securities to be sold to the public in an underwritten offering.  The
Corporation may impose stop transfer instructions with respect to the shares (or
securities) subject to the foregoing restriction until the end of said period.
Nothing contained herein shall be deemed or construed to require BancBoston
Investments Inc. or Northwestern to refrain from selling any Common Stock or
other securities, in whole or in part, if any such sale shall be pursuant to a
private placement to a Qualified Institutional Investor within the provisions of
an exemption from the registration requirements under the Securities Act or is
consummated within the limitations of Rule 144 promulgated under the Securities
Act.

          (k) No Inconsistent Agreements.  The Corporation agrees that it has
not entered into, and it will not hereafter enter into, any Agreement with
respect to the registration of its securities that is inconsistent with (or
superior to) the rights granted to the Stockholders in this Agreement.

                                       29
<PAGE>

          (l) Stock Split.  If, on or after the receipt by the Corporation of a
request for registration of a public offering pursuant to Section 2.11(b)
hereof, the proposed managing underwriter or underwriters of such offering
reasonably believes that the number of shares to be registered is less than the
minimum number necessary for the success of such offering, the Corporation shall
use its best efforts to cause each share of its outstanding Common Stock to be
converted into such number of shares of such Common Stock so that the number of
shares of Registrable Shares to be registered is equal to the minimum number
which such managing underwriter or underwriters reasonably believes is necessary
for the success of such offering.  If necessary in connection therewith, the
Corporation shall use its best efforts to cause to be recommended, approved and
adopted by its Board of Directors and approved and adopted by its stockholders,
and, if so approved and adopted, file and cause to become effective, an
amendment to its certificate of incorporation increasing the number of shares of
Common Stock which the Corporation is authorized to issue.  Each Stockholder
hereby agrees to vote the shares of Common Stock held by it in favor of adopting
such amendment.

          (m) Rule 144 Requirements.  After the earlier of (i) the closing of
the sale of securities of the Corporation pursuant to a Registration Statement
or (ii) the registration by the Corporation of a class of securities under
Section 12 of the Exchange Act, the Corporation agrees:

          (1) to comply with the requirements of Rule 144(c) under the
Securities Act with respect to current public information about the Corporation;

          (2) to use its best efforts to file with the Commission in a timely
manner all reports and other documents required of the Corporation under the
Securities Act and the Exchange Act (at any time after it has become subject to
such reporting requirements); and

          (3) to furnish to any holder of Registrable Shares upon request (i) a
written statement by the Corporation as to its compliance with the requirements
of said Rule 144(c), and the reporting requirements of the Securities Act and
the Exchange Act (at any time after it has become subject to such reporting
requirements), (ii) a copy of the most recent annual or quarterly report of the
Corporation, and (iii) such other reports and documents of the Corporation as
such holder may reasonably request to avail itself of any similar rule or
regulation of the Commission allowing it to sell any such securities without
registration.

          (n) Mergers, Etc.  The Corporation shall not, directly or indirectly,
enter into any merger, consolidation or reorganization in which the Corporation
shall not be the surviving corporation unless the proposed surviving corporation
shall, prior to such merger, consolidation or reorganization, agree in writing
to assume the obligations of the Corporation under this Agreement, and for that
purpose references hereunder to "Registrable Shares" shall be deemed to be
references to the securities which the Stockholders would be entitled to receive
in exchange for Registrable Shares under any such merger, consolidation or
reorganization; provided, however, that the provisions of this Section 2.11(n)
shall not apply in the event of any merger, consolidation or reorganization in
which the Corporation is not the surviving corporation if the Stockholders are
entitled to receive in exchange for their Registrable Shares consideration
consisting solely of (i) cash, (ii) securities of the acquiring corporation
which may be immediately sold to the public without registration under the
Securities Act, or (iii) securities of

                                       30
<PAGE>

the acquiring corporation which the acquiring corporation has agreed to register
within (90) days of completion of the transaction for resale to the public
pursuant to the Securities Act.

          (o) Exception to Registration. The Corporation shall not be required
to effect a registration under this Agreement if (i) in the written opinion of
counsel for the Corporation, which counsel and the opinion so rendered shall be
reasonably acceptable to the Stockholders holding Registrable Shares, such
Stockholders may sell without registration under the Act all Registrable Shares
for which they requested registration under the provisions of the Act and in the
manner and in the quantity in which the Registrable Shares were proposed to be
sold or (ii) if the Corporation determines in its good faith judgment that the
use of any prospectus would require the disclosure of material information that
the Corporation has a bona fide business purpose for preserving as confidential
or the disclosure of which would impede the Corporation's ability to consummate
a transaction which the Corporation is not otherwise required by applicable
securities laws or regulations to disclose.  Upon written notice of such
determination by the Corporation, the rights of the Stockholders to offer, sell
or distribute any Registrable Shares or to require the Corporation to take
action with respect to the registration or sale of any Registrable Shares
pursuant to this Agreement shall be suspended until the date upon which the
Corporation notifies the Stockholders in writing (the "Suspension Termination
Notice") that suspension of such rights for the grounds set forth in this
Section 15 is no longer necessary.  The Corporation agrees to give Suspension
Termination Notice as promptly as practicable following the date that such
suspension of rights is no longer necessary (but in any event any such
suspension shall be effective for a period not in excess of 180 days in any
calendar year).  If the Corporation shall give any Suspension Termination
Notice, the time periods set forth in Section 2 above shall be extended by the
number of days during which the period from and including the date of the giving
of such notice of suspension to and including the date the Corporation delivers
the Suspension Termination Notice.

     The Stockholders each agree not to offer, sell, contract to sell or
otherwise dispose of any Registrable Shares, or any securities convertible into
or exchangeable or exercisable for Registrable Shares during any period when,
and to the same extent that, any officers of the Corporation are restricted in
connection with an offering of securities by the Corporation; provided that
nothing herein contained shall be deemed or construed to require a Member to so
refrain from disposing of any securities of the Corporation acquired by it other
than by reason of the issuance of the Interests and conversion thereof into
Common Stock during any such period of time, if any such sale shall be pursuant
to a private placement to a Qualified Institutional Investor within the
provisions of an exemption from the registration requirements under the
Securities Act or is consummated within the limitations of Rule 144 promulgated
under the Securities Act.  The Corporation shall give reasonable advance notice
to each such Stockholder of such offering, which notice shall state in
reasonable detail whether or not the Corporation believes the agreement herein
contained to refrain from selling or otherwise disposing of Registrable Shares
or any securities convertible into or exchangeable or exercisable for such
Registrable Shares is applicable to such Stockholder.

          (p) Listing Application.  If shares of any class of stock of the
Corporation shall be listed on a national securities exchange, the Corporation
shall, at its expense, include in its listing application all of the shares of
the listed class then eligible for listing owned by any Stockholder.

                                       31
<PAGE>

          (q) Damages.   The Corporation recognizes and agrees that the holder
of Registrable Shares shall not have an adequate remedy if the Corporation fails
to comply with the provisions of this Agreement, and that damages will not be
readily ascertainable, and the Corporation expressly agrees that in the event of
such failure any Stockholder shall be entitled to seek specific performance of
the Corporation's obligations hereunder.

          (r) Termination.  All of the Corporation's obligations to register
Registrable Shares under this Agreement shall terminate on the fifteenth
anniversary of this Agreement.

          (s) Transfers of Rights.  The rights and obligations of each
Stockholder hereunder, may be assigned by such Stockholder to any person or
entity acquiring Registrable Shares owned by such Stockholder, and such
transferee shall be deemed a "Stockholder" for purposes of this Agreement.  Any
Registrable Shares owned by a transferee hereunder who acquired such Registrable
Shares pursuant to a Permitted Transfer, shall be deemed to be owned, for all
purposes of this Agreement, by a member of the Stockholder group of which the
transferring Stockholder is or was a member.

          (t) Covenant.  The Company (or successor corporation, as the case may
be) hereby covenants with Marconi on the same terms as it covenants with the
holders of the Senior Subordinated Notes pursuant to the Indenture (in the form
it is in on the date hereof).

          (u) The Company will not incur, create, issue, assume, guarantee or
otherwise become liable for any membership interests (or successor or similar
equity interests) in it of whatever kind which rank prior to or pari passu
(whether in point of payment or otherwise) its obligations to Marconi in
relation to the PIK Preferred Interest.

  2.12  Senior Issuances.  The Company will not incur, create, issue, assume,
guarantee or otherwise become liable for any membership interests (or successor
or similar equity interests) in it of whatever kind which rank prior to or pari
passu with (whether in point of payment or otherwise) its obligations to Marconi
in relation to the PIK Preferred Interest.

                                  ARTICLE III

                                 Miscellaneous
                                 -------------

     3.1  Remedies.   The parties to this Agreement acknowledge and agree that
the covenants of the Company and the Members set forth in this Agreement may be
enforced in equity by a decree requiring specific performance.  In the event of
a breach of any material provision of this Agreement, the aggrieved party will
be entitled to institute and prosecute a proceeding in any court of competent
jurisdiction to enforce specific performance of such provision, as well as to
obtain damages for breach of this Agreement.  Without limiting the foregoing, if
any dispute arises concerning the sale or other disposition of any of the
Interests subject to this Agreement or concerning any other provisions hereof or
the obligations of the parties hereunder, the parties to this Agreement agree
that an injunction may be issued in connection therewith (including, without
limitation, restraining the sale or other disposition of such Interests or
rescinding any such sale or other disposition).  Such remedies shall be
cumulative and non-exclusive and shall be in addition to any other rights and
remedies the parties may have under this Agreement or otherwise.

                                       32
<PAGE>

     3.2  Entire Agreement; Amendment; Waiver.  This Agreement, together with
the Exhibits hereto, and the Warrant Agreement (relating to the Warrants) sets
forth the entire understanding of the parties, and supersedes all prior
agreements and all other arrangements and communications, whether oral or
written, with respect to the subject matter hereof.  Exhibit A may be amended to
reflect changes in the composition of the Members and changes in ownership that
may occur from time to time as a result of Permitted Transfers or Transfers
permitted under Article II hereof.  Amendments to the Schedule reflecting
Permitted Transfers or Transfers permitted under Article II hereof shall become
effective when a copy of the Agreement as executed by any new transferee, are
filed with the Company, except as otherwise provided in Section 3.12 hereof.
Any other amendments to, or the termination of, this Agreement shall require the
prior written consent of the Company and a majority in interest of each of the
Berkshire Members and the Management Members; provided that no amendment which
adversely affects any Other Investor or Northwestern without a like effect on
other Members may be made without the consent of such Other Investor, Marconi or
Northwestern; provided further, that Marconi shall be entitled, for the
avoidance of doubt, to consider its interests as holder of Warrants in
determining whether to grant its consent; and provided further that in no event
may the definitions of Fair Market Value, Permitted Transfer and Qualified
Institutional Investor or Sections 2.4, 2.5, 2.6(h), 2.7 (but only insofar as it
adversely effects Northwestern's rights without a like effect on all other
Members), 2.8, 2.9 or 2.11 (but only insofar as it relates to Northwestern's
ability to include Registrable Shares in a registration and Northwestern's
ability to sell during a lock-up period), or this Section 3.2 be amended without
the written consent of Northwestern.  Notwithstanding any provisions to the
contrary contained herein, any party may waive any rights with respect to which
such party is entitled to the benefits under this Agreement.  No waiver of or
consent to any departure from any provision of this Agreement shall be effective
unless signed in writing by the party entitled to the benefit thereof.

     3.3  Severability.  The invalidity or unenforceability of any particular
provision of this Agreement shall not affect the other provisions hereof, and
this Agreement shall be construed in all respects as if the invalid or
unenforceable provision were omitted.

     3.4  Notices. All notices and other communications necessary or
contemplated under this Agreement shall be in writing and shall be delivered in
the manner specified herein or, in the absence of such specification, shall be
deemed to have been duly given three business days after mailing by certified
mail, when delivered by hand upon confirmation of receipt by telecopy, or one
day after sending by overnight delivery service, to the respective addresses of
the parties set forth below:

          (a) For notices and communications to Company to:

                         Weigh-Tronix, LLC
                         1000 Armstrong Drive
                         Fairmont, MN 56031-1000
                         Attention:  President
                         Facsimile:

          (b) for notices and communications to the Management Members, to their
     respective addresses set forth in the Schedule, in either case, with a copy
     to:

                                       33
<PAGE>

                         Hinckley, Allen & Snyder
                         1500 Fleet Center
                         Providence, Rhode Island 02903
                         Attention:  Stephen J. Carlotti, Esq.
                         Facsimile:  (401) 277-9600

          (c) for notices and communications to the Berkshire Members, to their
     respective addresses set forth in the Schedule, with a copy to:

                         Hutchins, Wheeler & Dittmar
                         A Professional Corporation
                         101 Federal Street
                         Boston, Massachusetts 02110
                         Attention:  James Westra, Esq.
                         Facsimile:  (617) 951-1295

          (d) for notices and communications to any other Members, to their
     respective addresses set forth in the Schedule.

By notice complying with the foregoing provisions of this Section 3.4, each
party shall have

the right to change the mailing address for future notices and communications to
such party.

     3.5  Binding Effect; Assignment. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and to their respective transferees,
successors and assigns; provided, however, that the rights under this Agreement
may not be assigned except as expressly provided herein, it being understood
that the Company's rights hereunder may be assigned by the Company to any
corporation which is the surviving entity in a merger, consolidation or like
event involving the Company.  No such assignment shall relieve an assignor of
its obligations hereunder.

     3.6  Governing Law.  This Agreement shall be governed by the law of the
State of Delaware (regardless of the laws that might otherwise govern under
applicable Delaware principles of conflicts of law) as to all matters, including
but not limited to matters of validity, construction, effect, performance and
remedies.

     3.7  Termination.  This Agreement shall terminate upon consummation of a
Liquidity Event; provided that if such Liquidity Event is a Public Offering,
then the provisions of Section 2.11 shall continue in full force and effect.

     3.8  Recapitalizations, Exchanges, Etc.  The provisions of this Agreement
shall apply, to the full extent set forth herein with respect to Interests, to
any and all shares of capital stock of the Company or any successor or assign of
the Company (whether by merger, consolidation, sale of assets or otherwise)
which may be issued in respect of, in exchange for, or in substitution of the
Interests, by reason of a stock dividend, stock split, stock issuance, reverse
stock split, combination, recapitalization, reclassification, merger,
consolidation or otherwise.

                                       34
<PAGE>

     3.9  Action Necessary to Effectuate the Agreement.  The parties hereto
agree to take or cause to be taken all such corporate and other action as may be
necessary to effect the intent and purposes of this Agreement.

     3.10  Purchase for Investment; Legend on Certificate.  Each of the parties
acknowledges that all of the Interests held by such party are being (or have
been) acquired for investment and not with a view to the distribution thereof
and that no transfer, hypothecation or assignment of Interests may be made
except in compliance with applicable federal and state securities laws.  If the
Interests which are now or hereafter owned by the Members and which are subject
to the terms of this Agreement are certificated then shall have endorsed in
writing, stamped or printed, thereon the following legends:

                              "TRANSFER RESTRICTED

     (a)  The securities represented by this Certificate have not been
          registered under the Securities Act of 1933, as amended, and may not
          be sold, offered for sale, pledged or hypothecated in the absence of
          an effective registration statement as to the securities under said
          Act or an opinion of counsel satisfactory to the Company and its
          counsel that such registration is not required.

     (b)  The Company is authorized to issue more than one class or series of
          securities.  A copy of the preferences, powers, qualifications and
          rights of each class or series will be furnished by the Company upon
          request and without charge.

     (c)  The securities represented by this Certificate are subject to the
          terms and conditions, including certain restrictions on transfer, of a
          Members' Agreement dated as of June 13, 2000, as amended from time to
          time, and none of such securities, or any interest therein, shall be
          transferred, pledged, encumbered or otherwise disposed of except as
          provided in that Agreement.  A copy of the Members' Agreement is on
          file with the Secretary of the Company and will be mailed to any
          properly interested person without charge within five (5) days after
          receipt of a written request."

     All shares shall also bear all legends required by federal and state
securities laws.  In the event that the Company shall receive an opinion of
counsel to a Qualified Institutional Investor (which may be internal counsel to
such Qualified Institutional Investor) that, in the opinion of such counsel, the
legend set forth in clause (a) above is not, or is no longer necessary or
required (including, without limitation, because of the availability of the
exemption afforded by Rule 144 or Rule 144A promulgated under the Securities
Act), the Company shall remove such legend from the certificates evidencing the
Interests held by such Qualified Institutional Investor or issue new
certificates without such legend in lieu thereof.

     3.11  Effectiveness of Transfers.  All Interests transferred by a Member
(other than pursuant to an effective registration statement under the Securities
Act or pursuant to a Rule 144 Transaction) shall, except as otherwise expressly
stated herein, be held by the Transferee thereof pursuant to this Agreement.
Such Transferee shall, except as otherwise expressly stated herein, have all the
rights and be subject to all of the obligations of a Member under this Agreement
(as

                                       35
<PAGE>

though such party had so agreed pursuant to Section 3.12 hereof) automatically
and without requiring any further act by such transferee or by any parties to
this Agreement. Without affecting the preceding sentence, if such transferee is
not a Member on the date of such transfer, then such transferee, as a condition
to such transfer, shall confirm such transferee's obligations hereunder in
accordance with Section 3.12 hereof. No Interests shall be transferred on the
Company's books and records, and no transfer of Interests shall be otherwise
effective, unless any such transfer is made in accordance with the terms and
conditions of this Agreement, and the Company is hereby authorized by all of the
Members to enter appropriate stop transfer notations on its transfer records to
give effect to this Agreement.

     3.12  Other Members.  Subject to the restrictions on transfers of Interests
contained herein, any person or entity who is not already a Member acquiring
Interests, shall, on or before the transfer or issuance to it of Interests, sign
a counterpart to this Agreement in form reasonably satisfactory to the Company
and shall thereby become a party to this Agreement to be bound hereunder as (i)
a Management Member if a Permitted Transferee of a Management Member or an
employee of the Company or any of its Subsidiaries or an entity all of whose
equity holders or members are employees of the Company or any of its
Subsidiaries, (ii) a Berkshire Member if a Permitted Transferee of a Berkshire
Member or an employee or affiliate of Berkshire Partners LLC or (iii) an "Other
Member" if such transferee does not fall within either clause (i) or (ii) above.
Each such additional Member shall be listed on the Schedule, as amended from
time to time.

     3.13  No Waiver.  No course of dealing and no delay on the part of any
party hereto in exercising any right, power or remedy conferred by this
Agreement shall operate as waiver thereof or otherwise prejudice such party's
rights, powers and remedies.  No single or partial exercise of any rights,
powers or remedies conferred by this Agreement shall preclude any other or
further exercise thereof or the exercise of any other right, power or remedy.

     3.14  Counterpart.  This Agreement may be executed in two or more
counterparts each of which shall be deemed an original but all of which together
shall constitute one and the same instrument, and all signatures need not appear
on any one counterpart.

     3.15  Headings.  All headings and captions in this Agreement are for
purposes of reference only and shall not be construed to limit or affect the
substance of this Agreement.

     3.16  Number; Gender. When the context so requires, the singular shall
include the plural and the plural shall include the singular and the gender of
any pronoun shall include the other gender.

     3.17  Consent to Jurisdiction.  The Company and each of the Members, by its
or his execution hereof, (i) hereby irrevocably submit to the jurisdiction of
the state courts of the Commonwealth of Massachusetts for the purposes of any
claim or action arising out of or based upon this Agreement or relating to the
subject matter hereof, and (ii) hereby waive, to the extent not prohibited by
applicable law, and agree not to assert by way of motion, as a defense or
otherwise, in any such claim or action, any claim that it or he is not subject
personally to the jurisdiction of the above-named courts, that its or his
property is exempt or immune from attachment or execution, that any such
proceeding brought in the above-named court is improper,

                                       36
<PAGE>

or that this Agreement or the subject matter hereof may not be enforced in or by
such court. The Company and each of the Members hereby consent to service of
process in any such proceeding in any manner permitted by Massachusetts law, and
agree that service of process by registered or certified mail, return receipt
requested, at its address specified pursuant to Section 3.4 hereof is reasonably
calculated to give actual notice.

     3.18  Costs and Expenses.  The Company shall pay its own costs and expenses
incurred and the reasonable costs and expenses incurred by each Management
Member in connection with this Agreement, and any and all other documents
furnished pursuant hereto or in connection herewith.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       37
<PAGE>

                               WEIGH-TRONIX, LLC

                    AMENDED AND RESTATED MEMBERS' AGREEMENT

                           Counterpart Signature Page
                           --------------------------

     IN WITNESS WHEREOF, the parties have executed this Agreement as an
instrument

under SEAL as of the date first above written.

                              WEIGH-TRONIX, LLC

                              By:  /s/ Weigh-Tronix, LLC
                                   ---------------------
                              Name:
                              Title:
<PAGE>

                               WEIGH-TRONIX, LLC

                    AMENDED AND RESTATED MEMBERS' AGREEMENT

                           Counterpart Signature Page
                           --------------------------

                              BERKSHIRE MEMBERS:

                              BERKSHIRE FUND IV INVESTMENT CORP.

                              By:  /s/ Berkshire Fund IV Investment Corp.
                                   --------------------------------------
                              Name:

                              BERKSHIRE INVESTORS, LLC

                              By:  /s/ Berkshire Investors, LLC
                                   ----------------------------
                              Name
                              Title:

                              BERKSHIRE FUND V INVESTMENT CORP.

                              By:  /s/ Berkshire Fund V Investment Corp.
                                   -------------------------------------
                              Name:
                              Title:

                                       2
<PAGE>

                               WEIGH-TRONIX, LLC

                    AMENDED AND RESTATED MEMBERS' AGREEMENT

                           Counterpart Signature Page
                           --------------------------

                              NORTHWESTERN:

                              THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

                              By: /s/ The Northwestern Mutual Life Insurance
                                  ------------------------------------------
                              Company
                              -------

                                       3
<PAGE>

                               WEIGH-TRONIX, LLC

                    AMENDED AND RESTATED MEMBERS' AGREEMENT

                           Counterpart Signature Page
                           --------------------------

                              MANAGEMENT MEMBERS:

                              /s/ John J. McCann, III
                              ------------------------
                              John J. McCann, III

                              /s/ Roger W. Evans
                              ------------------
                              Roger W. Evans

                              /s/ David R. Castle
                              -------------------
                              David R. Castle

                              /s/ Larry Gunning
                              -----------------
                              Larry Gunning

                              R&H Trust Co. [Jersey] Limited

                              By: /s/ R&H Trust Co. [Jersey] Limited
                                  ----------------------------------

                                      4
<PAGE>

                               WEIGH-TRONIX, LLC

                    AMENDED AND RESTATED MEMBERS' AGREEMENT

                               WEIGH-TRONIX, LLC

                               MEMBER'S AGREEMENT

                           Counterpart Signature Page
                           --------------------------

OTHER MEMBERS:

DISCRETIONARY SETTLEMENT      SUNAPEE SECURITIES, INC.
Dated May 6, 1998

By: /s/ Discretionary Settlement  By: /s/ Sunapee Securities, Inc.
    ----------------------------      ----------------------------

DOMINIC'S TRUST               SQUAM LAKE INVESTORS, III, L.P.
Dated May 7, 1998             By: GPI, Inc., its General Partner

By: /s/ Dominic's Trust       By: /s/ Squam Lake Investors, III, L.P.
    -------------------           -----------------------------------

NICHOLAS' TRUST               BANCBOSTON INVESTMENTS INC.
Dated May 8, 1998

By: /s/ Nicholas' Trust       By: /s/ BancBoston Investments Inc.
    -------------------           -------------------------------

W-T INVESTMENT, LLC              CRAIG L. BURR 1986 CHILDREN'S TRUST

By: /s/ W-T InvestmentBy:     By: William P. Egan, Trustee
    ------------------            ------------------------
                                 William P. Egan, Trustee

/s/ Rowland Moriarty
--------------------
Rowland Moriarty

                                       5
<PAGE>

                               WEIGH-TRONIX, LLC

                    AMENDED AND RESTATED MEMBERS' AGREEMENT

                               WEIGH-TRONIX, LLC

                               MEMBER'S AGREEMENT

                           Counterpart Signature Page
                           --------------------------

MARCONI, INC.

By: /s/ Marconi, Inc.
    -----------------

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