Document:

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DATED                                                               10 JUNE 2004

                             (1) A HINTON AND OTHERS

                                     - AND -

                             (2) STERICYCLE UK, LTD.

                                    AGREEMENT
                                   relating to

                       the sale and purchase of White Rose
                              Environmental Limited

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                                    CONTENTS

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<S>                                                                                        <C>
1.       DEFINITIONS AND INTERPRETATION.................................................    1

2.       SALE AND PURCHASE OF SHARES....................................................   11

3.       CONSIDERATION..................................................................   12

4.       COMPLETION.....................................................................   14

5.       ESCROW ACCOUNT AND CLAIMS AGAINST THE WARRANTORS...............................   15

6.       WARRANTIES.....................................................................   16

7.       WARRANTORS' COVENANTS..........................................................   18

8.       SET OFF AGAINST LOAN NOTES.....................................................   20

9.       TAXATION.......................................................................   21

10.      FURTHER ASSURANCE AND ATTORNEY.................................................   21

11.      ANNOUNCEMENTS..................................................................   22

12.      COSTS..........................................................................   22

13.      SUCCESSORS AND ASSIGNMENT......................................................   22

14.      ENTIRE AGREEMENT...............................................................   23

15.      VARIATIONS.....................................................................   23

16.      WAIVER.........................................................................   24

17.      AGREEMENT CONTINUES IN FORCE...................................................   24

18.      SEVERABILITY...................................................................   24

19.      NOTICES........................................................................   24

20.      COUNTERPARTS...................................................................   25

21.      THIRD PARTY RIGHTS.............................................................   25

22.      MISCELLANEOUS..................................................................   25

23.      GOVERNING LAW AND JURISDICTION.................................................   25

SCHEDULE 1..............................................................................   26

     Details of the Vendors, the Shares and the Consideration...........................   26
</TABLE>

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<TABLE>
<S>                                                                                        <C>
SCHEDULE 2..............................................................................   27

     Part 1.............................................................................   27

     The Company........................................................................   27

     Part 2.............................................................................   29

     The Subsidiaries...................................................................   29

SCHEDULE 3..............................................................................   31

     The Warranties.....................................................................   31

     Part 1.............................................................................   31

     General............................................................................   31

     Part 2.............................................................................   58

     Property matters...................................................................   58

     TITLE..............................................................................   58

     Part 3.............................................................................   62

     Pensions...........................................................................   62

SCHEDULE 4..............................................................................   65

     Taxation...........................................................................   65

     Part 1.............................................................................   65

     Definitions and interpretation.....................................................   65

     Part 2.............................................................................   69

     Tax Warranties.....................................................................   69

     Part 3.............................................................................   76

     Tax Covenant.......................................................................   76

     Part 4.............................................................................   79

     Limitations and Procedure..........................................................   79

SCHEDULE 5..............................................................................   90

     Completion.........................................................................   90
</TABLE>

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<TABLE>
<S>                                                                                       <C>
SCHEDULE 6..............................................................................   92

     The Properties.....................................................................   92

SCHEDULE 7..............................................................................   93

     Part 1.............................................................................   93

     Completion Accounts................................................................   93

     Preparation of Completion Accounts.................................................   93

SCHEDULE 8..............................................................................   97

     Limitation on the Warrantors' Liability............................................   97

APPENDIX 1..............................................................................  103

APPENDIX 2..............................................................................  104

APPENDIX 3..............................................................................  105
</TABLE>

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THIS AGREEMENT is made on                                           10 JUNE 2004

BETWEEN:

(1)      THE PERSONS whose names and addresses are set out in schedule 1
         ("VENDORS"); and

(2)      STERICYCLE UK, LTD., a company registered in England with number
         5141715, whose registered office is at Carmelite, 50 Victoria
         Embankment, London EC4Y 0DX ("PURCHASER").

BACKGROUND

A        White Rose Environmental Limited ("COMPANY") is a private company
         limited by shares. Further information relating to the Company and its
         Subsidiaries is set out in schedule 2.

B        The Vendors are the beneficial owners or are otherwise able to procure
         the transfer of the numbers of Shares set opposite their respective
         names in column (2) of schedule 1.

C        The Vendors have agreed to sell or procure the sale of and the
         Purchaser has agreed to purchase the Shares for the consideration and
         upon the terms and conditions set out in this agreement.

IT IS HEREBY AGREED:

1.       DEFINITIONS AND INTERPRETATION

         1.1      In this agreement the following words and expressions shall
                  (except where the context otherwise requires) have the
                  following meanings:

                  "1985 ACT" means the Companies Act 1985;

                  "1989 ACT" means the Companies Act 1989;

                  ""A" ORDINARY SHARES" means the 89,334 issued and allotted "A"
                  ordinary shares of (pound)1 each in the capital of the
                  Company;

                  "ACCOUNTS" means the audited consolidated accounts of the
                  Group comprising (inter alia) the audited consolidated balance
                  sheet as at the Accounts Date and the audited consolidated
                  profit and loss account for the period ended on the Accounts
                  Date, the notes and the cash flow statement relating thereto
                  and the reports of the directors and auditors thereon;

                  "ACCOUNTS DATE" means 31 March 2003;

                                                                               1
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                  ""B" ORDINARY SHARES" means the 55,333 issued and allotted "B"
                  ordinary shares of (pound)1 each in the capital of the
                  Company;

                  "BUSINESS DAY" means a day, other than a Saturday, Sunday or
                  public holiday, on which banks are open for commercial
                  business in the City of London;

                  "BUSINESS INTELLECTUAL PROPERTY" means all Intellectual
                  Property owned and used by any member of the Group;

                  ""C" ORDINARY SHARES" means the 55,333 issued and allotted "C"
                  ordinary shares of (pound)1 each in the capital of the
                  Company;

                  "CLAIM" means any claim for breach of or non-compliance with
                  this agreement (including any Warranty Claim or claim under
                  the Tax Covenant);

                  "COMPANIES ACTS" means the 1985 Act, the 1989 Act and the
                  Companies Consolidation (Consequential Provisions) Act 1985;

                  "COMPLETION" means the performance of all the obligations of
                  the parties to this agreement set out in clause 4;

                  "COMPLETION ACCOUNTS" means the accounts to be prepared
                  pursuant to clause 3 and schedule 7;

                  "COMPLETION BOARD MINUTES" means minutes of meetings of the
                  boards of directors of the Company and the Subsidiaries in the
                  agreed form;

                  "COMPLETION DATE" means close of business on the date of this
                  agreement;

                  "COMPUTER SYSTEMS" means the computer processors, associated
                  and peripheral equipment and computer programs used by the
                  Group at the Completion Date and documentation and data
                  entered into or created by the foregoing;

                  "CONFIDENTIAL INFORMATION" means information (however stored)
                  relating to or connected with the business, customers or
                  financial or other affairs of the Group details of which are
                  not in the public domain including, without limitation,
                  information concerning or relating to:

                  (a)      the Business Intellectual Property and any member of
                           the Group in the nature of intellectual property;

                                                                               2
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                  (b)      any technical processes, future projects, business
                           development or planning, commercial relationships and
                           negotiations; and

                  (c)      the marketing of goods or services including, without
                           limitation, customer, client and supplier lists,
                           price lists, sales targets, sales statistics, market
                           share statistics, market research reports and surveys
                           and advertising or other promotional materials and
                           details of contractual arrangements and any other
                           matters concerning the clients or customers of or
                           other persons having dealings with any member of the
                           Group;

                  "CONSIDERATION" means the consideration for the Shares set out
                  in clause 3;

                  "CUSTOMER CONTRACT" means any agreement or arrangement with
                  any customer of the Group whether or not in writing to which
                  any member of the Group is a party including all written or
                  oral amendments or modifications of the Customer Contracts or
                  supplements to the Customer Contracts;

                  "DATA ROOM DOCUMENTS" means each of the documents listed in
                  the index of documents relating to the Group which have been
                  made available for inspection by the Purchaser, a copy of
                  which index is annexed to the Disclosure Letter;

                  "DEATH IN SERVICE SCHEME" means the White Rose Environmental
                  Limited Death in Service Scheme which was established under a
                  Declaration of Trust dated 3 April 2002 and commenced on 4
                  April 2001;

                  "DISCLOSED" means fairly disclosed in the Disclosure Letter or
                  the Disclosure Documents;

                  "DISCLOSURE DOCUMENTS" means:

                  (a)      the Engineering Reports;

                  (b)      the Environmental Reports; and

                  (c)      the Data Room Documents;

                  "DISCLOSURE LETTER" means the letter of even date with this
                  agreement from the Warrantors to the Purchaser relating to the
                  Warranties together with any documents annexed to it;

                                                                               3
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                  "ENCUMBRANCE" means a mortgage, charge, pledge, lien, option,
                  restriction, equity, right to acquire, right of pre-emption,
                  grant of voting rights, third party right or interest, other
                  encumbrance or security interest of any kind or any other type
                  of preferential arrangement (including, without limitation, a
                  title transfer and retention arrangement) having similar
                  effect;

                  "ENGINEERING REPORTS" means the reports dated 13 November 2003
                  prepared by Fitchner on the incinerators operated by the Group
                  and to be addressed to the Company with a right for the
                  Purchaser to request that such reports be addressed to itself;

                  "ENVIRONMENTAL LAWS" means any law, statute, regulation and
                  legally binding, rule, guidance, policy, order, decree or
                  ruling of any Relevant Authority relating to or imposing
                  liabilities or obligations for the handling, collection,
                  transportation, transfer, processing, storage, treatment or
                  disposal of clinical waste or other waste (including those
                  intended to provide safe and healthy working conditions and to
                  reduce occupational safety and health hazards) or any other
                  legal requirements for the protection of the environment;

                  "ENVIRONMENTAL REPORTS" means the reports prepared in
                  connection with the sale of the Group contemplated by this
                  agreement by URS in relation to environmental matters
                  concerning the Group;

                  "EQUAL TREATMENT REQUIREMENTS" means

                  -        Sections 62 to 66 of the Pensions Act 1995;

                  -        Articles 137 and 141 of the EC Treaty;

                  -        The Part-time Workers (Prevention of Less Favourable
                           Treatment) Regulations 2000 (SI 2000/1551); and

                  -        The Fixed-term Employees (Prevention of Less
                           Favourable Treatment) Regulations 2002 (SI
                           2002/2034);

                  "ESCROW ACCOUNT" means an account in the joint names of the
                  Purchaser's Solicitors and the Vendors' Solicitors to be
                  established and operated in accordance with clauses 3, 5 and 8
                  and the Escrow Letter;

                                                                               4
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                  "ESCROW LETTER" means the letter in agreed form to be
                  addressed by the Purchaser and the Warrantors to the
                  Purchaser's Solicitors and the Vendors' Solicitors jointly in
                  relation to the Escrow Account;

                  "FSMA" means Financial Services and Markets Act 2000;

                  "GPP" means the White Rose Environmental Limited Group
                  Personal Pension Plan provided by Prudential;

                  "GROUP" means the Company and the Subsidiaries from time to
                  time and references to a "member of the Group" or a "Group
                  member" shall be construed accordingly;

                  "INITIAL ESCROW AMOUNT" means the amount of (pound)1.5 million
                  to be paid into the Escrow Account at Completion;

                  "INTELLECTUAL PROPERTY" includes patents, inventions,
                  know-how, trade secrets and other confidential information,
                  registered designs, copyrights, data, database rights, design
                  rights, rights affording equivalent protection to copyright,
                  database rights and design rights, semiconductor topography
                  rights, trade marks, service marks, logos, domain names,
                  business names, trade names, moral rights, and all
                  registrations or applications to register any of the aforesaid
                  items, rights in the nature of any of the aforesaid items in
                  any country or jurisdiction, rights in the nature of unfair
                  competition rights and rights to sue for passing-off;

                  "LETTERS OF CREDIT" means the irrevocable letters of credit in
                  the agreed form in favour of the Warrantors in the aggregate
                  principal amount of (pound)6.25 million to be issued by Bank
                  of America, N.A. as security for payment of the Loan Notes;

                  "LOAN NOTES" means the loan notes in the agreed form of an
                  aggregate principal amount of (pound)6.25 million to be issued
                  by the Purchaser to the Warrantors as part of the
                  Consideration and to be secured by the Letters of Credit;

                  "MANAGEMENT ACCOUNTS" means the Management Accounts (Full
                  Year) or the Management Accounts (Interim), or both, as the
                  context requires;

                  "MANAGEMENT ACCOUNTS (FULL YEAR)" means the unaudited
                  consolidated balance sheets and profit and loss accounts of
                  the Company and the Subsidiaries in the agreed form as at and
                  for the financial year ended 31 March 2004;

                                                                               5
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                  "MANAGEMENT ACCOUNTS (INTERIM)" means the unaudited
                  consolidated balance sheets and profit and loss accounts of
                  the Company and the Subsidiaries in the agreed form as at and
                  for the one month ended 30 April 2004;

                  "MATERIAL CONTRACTS" means Material Customer Contracts and
                  Material Other Contracts;

                  "MATERIAL CUSTOMER CONTRACTS" means the Customer Contracts
                  listed in appendix 1;

                  "MATERIAL OTHER CONTRACTS" means (i) all written or oral
                  agreements or arrangements for the purchase or sale of raw
                  materials, parts, supplies, products or other personal
                  property, or for the furnishing or receipt of services, which
                  involve payments by or to a Group member after the Completion
                  Date in an amount exceeding (pound)20,000 and (ii) all Vehicle
                  Leases; but excluding for the avoidance of doubt, (x) Customer
                  Contracts, (y) contracts with employees and (z) any leases
                  under which the Properties are held;

                  "NET ASSET VALUE" means the net asset value of the Group, as
                  shown in the consolidated balance sheet comprising the
                  Completion Accounts;

                  "NON-TAX CLAIM" means any Claim other than a Tax Claim;

                  "OPTION SHARES" means the 11,937 issued and allotted "D"
                  ordinary shares of (pound)1 each in the capital of the
                  Company;

                  "OTHER CUSTOMER CONTRACTS" means all Customer Contracts other
                  than Material Customer Contracts;

                  "PERMITS" means any approval, consent, license, permit,
                  registration, certificate, waiver, confirmation or other
                  authorisation issued, granted or otherwise made available by
                  any Relevant Authority relating to the handling, collection,
                  transportation, transfer, processing, storage, treatment or
                  disposal of clinical or other waste;

                  "PREVIOUS ACCOUNTS" means the audited consolidated accounts of
                  the Group comprising (inter alia) the audited consolidated
                  balance sheet as at 31 March 2002 and the audited consolidated
                  profit and loss account for the period ended on 31 March

                                                                               6
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                  2002, the notes and the cashflow statement relating thereto
                  and the reports of the directors and auditors thereon;

                  "PROPERTIES" means the leasehold land and premises described
                  in schedule 6 and any part or parts thereof;

                  "PROPRIETARY SOFTWARE" means all the software which has been
                  developed by or on behalf of any Group member and all
                  associated source code, preparatory materials, flow charts,
                  functional specifications and user and other related
                  documentation, and includes the Bravo system and the capacity
                  planning, scheduling and monitoring software used by the
                  Group;

                  "PURCHASER'S ACCOUNTANTS" means BDO Stoy Hayward LLP of 1 City
                  Square, Leeds LS1 2DP;

                  "PURCHASER'S GROUP" means (save in schedule 4) at any relevant
                  time, the Purchaser and each undertaking which is a "group
                  undertaking" (as defined in section 259 of the Companies Act)
                  of the Purchaser (including with effect from Completion, for
                  the avoidance of doubt, the Company/each Group Company) and
                  references to a "MEMBER OF THE PURCHASER'S GROUP" shall be
                  construed accordingly;

                  "RELEVANT AUTHORITY" means any government, government agency,
                  local authority or any other person or entity having
                  regulatory authority under Environmental Law and/or any court
                  of law or tribunal possessing the authority to enforce or to
                  determine rights and liabilities under Environmental Laws;

                  "REPAYMENT DATE" means the date which is one year from the
                  Completion Date;

                  "SSAP" means the statements of standard accounting practice
                  issued by the Accounting Standards Board;

                  "SCHEMES" means the GPP, the Stakeholder Scheme and the Death
                  in Service Scheme;

                  "SETTLED CLAIM" means any Unagreed Claim or other claim which
                  in any case is:

                  (a)      agreed in writing by the Purchaser and the Warrantors
                           such agreement not to be unreasonably withheld or
                           delayed following any oral agreement; or

                  (b)      determined by a court of competent jurisdiction;

                                                                               7
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                  "SHARE WARRANTIES" means the warranties contained or referred
                  to in clause 6 and schedule 3;

                  "SHARES" means the "A" Ordinary Shares, the "B" Ordinary
                  Shares and the "C" Ordinary Shares which together with the
                  Option Shares comprise the whole of the issued share capital
                  of the Company;

                  "SPECIFIED BENEFITS" means pensions, allowances, lump sums or
                  other like benefits on retirement or on death or on (or
                  following) leaving service with any Group member (other than
                  as a result of retirement or death);

                  "SPECIFIED DEPENDENT" means dependent of any Specified Person;

                  "SPECIFIED PERSON" means person who is a (present or former)
                  director, officer or employee of any Group member, or who has
                  at any time agreed to provide services to any Group member;

                  "STAKEHOLDER SCHEME" means the stakeholder pension scheme
                  designated by the Company and provided by Prudential;

                  "STANDARD SOFTWARE" means off the shelf software packages
                  generally available to the public;

                  "SUBSIDIARIES" means all the subsidiary undertakings (as
                  defined in Section 258 of the 1985 Act) of the Company at the
                  date hereof further details of which are set out in part 2 of
                  schedule 2 and "Subsidiary" shall mean any of them;

                  "TAX CLAIM" means a claim for breach of, or non compliance
                  with a Tax Warranty or a claim under the Tax Covenant;

                  "PURCHASER'S SOLICITORS" means Taylor Wessing of Carmelite, 50
                  Victoria Embankment, Blackfriars, London, EC4Y 0DX;

                  "TAX COVENANT" means any covenant set out in part 3 of
                  schedule 4;

                  "TAX WARRANTIES" means the warranties on the part of the
                  Warrantors in relation to taxation set out in part 2 of
                  schedule 4;

                  "TAXES ACT" means the Income and Corporation Taxes Act 1988;

                                                                               8
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                  "UNAGREED CLAIM" means any claim against the Warrantors for
                  breach of the Warranties or any claim under the Tax Covenant
                  which is notified in writing by the Purchaser to the
                  Warrantors stating in reasonable detail the nature of the
                  claim and the amount claimed by the Purchaser on or before the
                  second anniversary of the Completion Date, in respect of a
                  claim for breach of the Share Warranties, or on or before the
                  sixth anniversary of the Completion Date, in respect of a
                  claim for breach of the Tax Warranties or the Tax Covenant;

                  "VAT" means value added tax;

                  "VEHICLE" means a truck, trailer, van or similar commercial
                  vehicle but, for the avoidance of doubt, excluding any cars;

                  "VEHICLE LEASE" means a lease of one or more Vehicles by a
                  Group member;

                  "VENDORS' SOLICITORS" or "WARRANTORS' SOLICITORS" means DLA of
                  Princes Exchange, Princes Square, Leeds LS1 4BY;

                  "WARRANTIES" means the Share Warranties and the Tax
                  Warranties;

                  "WARRANTORS" means Andrew Peter Hinton, Nicholas Andrew Wyatt
                  and Terence John Hewitt;

                  "WARRANTY CLAIM" means any claim for breach of or
                  non-compliance with any of the Share Warranties or the Tax
                  Warranties.

                  "WRES AGREEMENT" means the agreement dated 13 October 2003
                  between (1) White Rose Environmental Limited and Facultatieve
                  Technologies Limited (2) Waste Per Se Limited and (3) WRE
                  Services Limited in respect of the sale of WRE Services
                  Limited;

         1.2      In this agreement where the context admits:

                  1.2.1    save in relation to schedule 4, words and phrases
                           which are defined or referred to in or for the
                           purposes of the Companies Acts have the same meanings
                           in this agreement (unless otherwise expressly defined
                           in this agreement);

                  1.2.2    sections 5, 6, 8 and 9 of and schedule 1 to the
                           Interpretation Act 1978 apply in the same way as they
                           do to statutes;

                                                                               9
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         1.2.3    reference to a statute, statutory provision or regulation
                  includes reference to:

                  1.2.3.1  any order, regulation, statutory instrument or other
                           subsidiary legislation at any time made under it for
                           the time being in force (whenever made);

                  1.2.3.2  any modification, amendment, consolidation,
                           re-enactment or replacement of it or provision of
                           which it is a modification, amendment, consolidation,
                           re-enactment or replacement except to the extent that
                           any modification, amendment, consolidation,
                           re-enactment or replacement made after the date of
                           this agreement would increase the liability of any of
                           the parties hereto (other than in relation to
                           Taxation which shall be dealt with in accordance with
                           the provisions of schedule 4);

         1.2.4    reference to statutory obligations shall include obligations
                  arising under Articles of the Treaty establishing the European
                  Community and regulations and directives of the European Union
                  as well as United Kingdom acts of Parliament and subordinate
                  legislation;

         1.2.5    reference to a clause, schedule or paragraph is to a clause,
                  schedule or a paragraph of a schedule of or to this agreement
                  respectively;

         1.2.6    reference to the parties to this agreement includes their
                  respective successors, permitted assigns and personal
                  representatives;

         1.2.7    reference to any party to this agreement comprising more than
                  one person includes each person constituting that party;

         1.2.8    reference to any gender includes the other genders;

         1.2.9    reference to any professional firm or company includes any
                  firm or company effectively succeeding to the whole, or
                  substantially the whole, of its practice or business;

         1.2.10   the index, headings and any descriptive notes are for ease of
                  reference only and shall not affect the construction or
                  interpretation of this agreement;

         1.2.11   this agreement incorporates the schedules to it;

                                                                              10
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         1.2.12   where any statement is qualified by the expression "to the
                  best of the knowledge information and belief of the
                  Warrantors" or "so far as the Warrantors are aware" or any
                  similar expression (each a "knowledge qualifier"), each
                  Warrantor shall be deemed to have knowledge of anything of
                  which the other Warrantors have actual knowledge including the
                  actual knowledge any of them may have having made reasonable
                  enquiry of each of Colm Croskery, Stephen Middleton and Helen
                  Inch and Dave Hughes and, in relation to the warranties set
                  out in paragraphs 6.5 to 6.9 (inclusive) and paragraphs 20.1
                  to 20.3 (inclusive) of schedule 3, Ivan Squires and John Bean.
                  For the purposes of this agreement it is agreed that the
                  Warrantors will satisfy their obligations to make reasonable
                  enquiry if they meet with each of the persons named above in
                  the presence of the Vendors' Solicitors, review with each such
                  person all of the Warranties (other than Ivan Squires and John
                  Bean), and ask each such person to confirm that he or she
                  believes that each such Warranty is true and correct (without
                  regard to any knowledge qualifier so that such persons are not
                  questioned about what they believe the Warrantors know) and,
                  if he or she cannot do so, to disclose any inaccuracies or
                  omissions that would have to be corrected in order for him or
                  her to provide such confirmation;

         1.2.13   the "agreed form" in relation to any document means the form
                  agreed between the parties to this agreement and, for the
                  purposes of identification only, initialled by or on behalf of
                  the parties.

2.       SALE AND PURCHASE OF SHARES

         2.1      Each of the Vendors shall sell or procure the sale of the
                  number of Shares set opposite his name in column (2) of
                  schedule 1 and the Purchaser shall purchase the Shares with
                  full title guarantee and free from all Encumbrances and
                  together with all rights of any nature which are now or which
                  may at any time become attached to them or accrue in respect
                  of them including all dividends and distributions declared
                  paid or made in respect of them on or after the date of this
                  agreement.

         2.2      Each of the Vendors hereby waives any right of pre-emption or
                  other restriction on transfer in respect of the Shares and the
                  Option Shares or any of them conferred on him under the
                  articles of association of the Company or otherwise.

                                                                              11
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3.       CONSIDERATION

         3.1      The Consideration payable by the Purchaser to the Vendors for
                  the purchase of the Shares shall be thirty three million one
                  hundred and eleven thousand and fifty five pounds
                  ((pound)33,111,055) subject to the following adjustments:

                  3.1.1    there shall be added an amount, if any, by which the
                           Net Asset Value is greater than(pound)12,332,544; and

                  3.1.2    there shall be deducted an amount, if any, by which
                           the Net Asset Value is less than(pound)12,332,544.

         3.2      At Completion, the Purchaser shall:

                  3.2.1    pay twenty six million eight hundred and sixty one
                           thousand and fifty five pounds ((pound)26,861,055)in
                           cash on account of the Consideration which shall be
                           apportioned between the Vendors as set out in column
                           3 of schedule 1; and

                  3.2.2    allot to the Warrantors the number of Loan Notes set
                           opposite their respective names in column 4 of
                           schedule 1.

         3.3      Within five Business Days starting on the day after agreement,
                  deemed agreement or determination of the Completion Accounts
                  in accordance with schedule 7:

                  3.3.1    if the Consideration payable under clause 3.1 exceeds
                           the aggregate amount paid under clause 3.2, the
                           Purchaser and the Warrantors shall instruct their
                           respective solicitors to pay an amount of
                           (pound)500,000 from the Escrow Account to the
                           Warrantors and the Purchaser shall pay to the
                           Warrantors the amount of the excess, both such sums
                           being apportioned between the Warrantors in the
                           proportions set out in column 5 of schedule 1; or

                  3.3.2    if the aggregate amount paid under clause 3.2 exceeds
                           the Consideration payable under clause 3.1 and the
                           amount of that excess is equal to or less than
                           (pound)500,000 the Purchaser and the Warrantors shall
                           instruct their respective Solicitors to pay (a) the
                           amount of the excess from the Escrow Account to the
                           Purchaser and (b) the difference between the amount
                           of the excess and (pound)500,000 from the Escrow
                           Account to the Warrantors in the proportions set out
                           in column 5 of schedule 1;

                                                                              12
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                  3.3.3    if the aggregate amount paid under clause 3.2 exceeds
                           the Consideration payable under clause 3.1 and the
                           amount of that excess exceeds(pound)500,000 the
                           Purchaser and the Warrantors shall instruct their
                           respective Solicitors to pay an amount
                           of(pound)500,000 from the Escrow Account to the
                           Purchaser and the Warrantors shall repay to the
                           Purchaser at the same time the amount by which such
                           excess exceeds (pound)500,000, such liability to
                           repay being apportioned between the Warrantors in the
                           proportions set out in column 5 of schedule 1. If the
                           Warrantors fail to make a repayment to the Purchaser
                           under this clause 3.3.3 within five Business Days
                           after the repayment is due, the Purchaser may
                           (without prejudice to its other rights) at any time
                           pending such repayment require the amount (including
                           all interest due under clause 3.4 to the date of
                           repayment) to be paid from the Escrow Amount, in
                           which case:

                           (a)      the Purchaser and the Warrantors shall
                                    instruct their respective solicitors to make
                                    the payment to the Purchaser; and

                           (b)      the Warrantors shall be required to pay into
                                    the Escrow Account the amount paid out of it
                                    under this clause plus an amount equal to
                                    interest on it at the rate of 5 per cent per
                                    annum over the base rate of Barclays Bank
                                    PLC (whether before or after judgment).
                                    Interest shall be paid from the date
                                    repayment should have been made by the
                                    Warrantors to the Purchaser pursuant to this
                                    clause 3.3 to the date of payment into the
                                    Escrow Account and accrues and is payable
                                    from day to day.

         3.4      In any circumstance not covered by clause 3.3.3(b), if a party
                  fails to pay any sum due by it under clause 3.3 of this
                  agreement on the due date for payment in accordance with the
                  provisions of this agreement, the party shall pay interest on
                  the amount payable from the due date until the date on which
                  the party's obligation to pay the sum is discharged at the
                  rate of 5 per cent per annum over the base rate of Barclays
                  Bank PLC (whether before or after judgment). Interest accrues
                  and is payable from day to day.

         3.5      A payment to be made under this clause 3 shall be made by
                  telegraphic transfer to an account notified by the party due
                  to receive the payment to the other party not later than two
                  Business Days before the date of the payment or if no such
                  notification is

                                                                              13
<PAGE>

                  made by cheque, provided that all amounts payable to the
                  Warrantors shall be paid to the Vendors' solicitors by
                  telegraphic transfer whose receipt shall be sufficient
                  discharge for such sum and the Purchaser shall not be required
                  to see the application thereof.

         3.6      The parties shall comply with the provision of schedule 7 with
                  respect to the matters contained in that schedule.

         3.7      In the event that any part of the consideration in the sum
                  of(pound)96,675 due to the Company after the date of this
                  agreement, pursuant to the terms of the WRES Agreement, is not
                  received by the Company in accordance with the terms of the
                  WRES Agreement, the Warrantors hereby agree to pay to the
                  Purchaser, within 5 Business Days of receipt of notice by the
                  Warrantors that a relevant sum has not been paid, an amount
                  equal to such sum which has not so been paid. The Purchaser
                  shall, if requested in writing by the Warrantors, at the cost
                  of the Warrantors, assign all and any assignable rights which
                  the Company has in respect of any such unpaid sums to the
                  Warrantors provided that prior to such assignment, the
                  Purchaser and/or the Company is indemnified to their
                  reasonable satisfaction against any costs, liabilities,
                  charges and expenses which it may incur which result directly
                  from such assignment. In the event any monies are received by
                  the Company pursuant to the terms of the WRES Agreement in
                  respect of which the Warrantors have made a payment to the
                  Company pursuant to this clause 3.7 then the Purchaser shall
                  forthwith pay an amount equal to the sum received by the
                  Company to the Warrantors. If any party fails to pay any sum
                  due by it under this clause 3.7 on the due date for payment,
                  the party shall pay interest on the amount payable from the
                  due date until the date on which the party's obligation to pay
                  the sum is discharged at the rate of 5 per cent per annum over
                  the base rate of Barclays Bank PLC (whether before or after
                  judgement). Interest accrues and is payable from day to day.

4.       COMPLETION

         4.1      Completion shall take place at the offices of the Vendors'
                  Solicitors on the Completion Date when each of the parties
                  shall comply with the provisions of schedule 5.

         4.2      The Purchaser shall not be obliged to complete the purchase of
                  the Shares under this agreement unless the Vendors comply
                  fully with their obligations under schedule 5 and unless the
                  purchase of all the Shares and Option Shares is completed but
                  the

                                                                              14
<PAGE>

                  Purchaser may nevertheless elect to complete the purchase of
                  some of the Shares and/or Option Shares without prejudice to
                  its rights against the defaulting Vendors.

5.       ESCROW ACCOUNT AND CLAIMS AGAINST THE WARRANTORS

         5.1      The Purchaser shall procure that at Completion(pound)1,500,000
                  ((pound)1,000,000 in respect of claims under the Warranties
                  and Tax Covenant and(pound)500,000 in respect of settlement of
                  the Net Asset Value) of the Consideration shall be paid into
                  the Escrow Account to be dealt with pursuant to the terms of
                  clause 3 and this clause 5. The provisions of clause 3 shall
                  apply in relation to the payment of monies out of the Escrow
                  Account in relation to the adjustment of the Consideration
                  dependent on the Net Asset Value. The remaining provisions of
                  this clause 5 and clause 8 (in respect of set off against the
                  Loan Notes) shall apply in relation to the payment of monies
                  out of the Escrow Account in relation to any Settled or
                  Unagreed Claims.

         5.2      Provided that there are no unsatisfied Settled Claims or
                  Unagreed Claims on the Repayment Date, the balance (if any) in
                  the Escrow Account (less if applicable any amount remaining in
                  the Escrow Account pending Settlement of the Net Asset Value)
                  shall be paid to the Warrantors.

         5.3      The Purchaser and the Warrantors shall procure that there
                  shall be paid out of the Escrow Account the amount of any
                  Settled Claim within five Business Days of any claim becoming
                  a Settled Claim and the amount of such payment shall pro tanto
                  satisfy the liability concerned.

         5.4      If there are any outstanding Unagreed Claims on the Repayment
                  Date then the aggregate amount of all such claims as estimated
                  either by Queen's Counsel selected by the Purchaser in its
                  reasonable discretion and at its cost or by the Purchaser
                  itself (as the case may be) shall remain in the Escrow Account
                  until such time as the relevant Unagreed Claims become Settled
                  Claims and the amount (if any) by which the amount in the
                  Escrow Account exceeds the estimated amount of the Unagreed
                  Claims shall be paid to the Warrantors. When the Unagreed
                  Claims become Settled Claims, the amount of the Settled Claims
                  shall be paid to the Purchaser and the amount of such payment
                  shall pro tanto satisfy the liability concerned and the
                  balance of the amount retained in the Escrow Account in
                  respect of the relevant claims (if any) shall be paid to the
                  Warrantors. If the Purchaser does not obtain an opinion of
                  Queen's Counsel that an outstanding Unagreed Claim is likely
                  to succeed and Queen's Counsel's best estimate of the claim,
                  then the Purchaser shall pay interest on the

                                                                              15
<PAGE>

                  excess (if any) of the amount retained in the Escrow Account
                  in respect of the Unagreed Claim over the amount of the
                  Settled Claim when the Unagreed Claim becomes a Settled Claim.
                  The rate of interest payable on such excess shall be 5 per
                  cent per annum over the base rate of Barclays Bank PLC and
                  shall accrue from day to day from the Repayment Date to the
                  date of payment and be paid within five Business Days after
                  the Unagreed Claim becomes a Settled Claim. The amount of
                  interest otherwise payable by the Purchaser shall be reduced
                  by the interest paid or payable to the Warrantors under clause
                  5.5 in respect of the excess for the period from the Repayment
                  Date to the date of the Purchaser's payment of interest on the
                  excess.

         5.5      Any interest earned on the money in the Escrow Account shall
                  be due and paid to the party entitled to the relevant amount
                  of principal.

         5.6      All amounts payable to the Warrantors from the Escrow Account,
                  pursuant to clause 3.3, this clause 5 and clause 8 shall be
                  paid to the Vendors' Solicitors by electronic funds transfer
                  whose receipt shall be sufficient discharge for such sum and
                  the Purchaser shall not be concerned to see the application
                  thereof.

6.       WARRANTIES

         6.1      As at the date of this agreement, the Warrantors severally
                  warrant to the Purchaser in the terms set out in schedule 3
                  and part 2 of schedule 4.

         6.2      Each of the Warranties shall be construed as a separate and
                  independent warranty and (except where this agreement provides
                  otherwise) shall not be limited or restricted by any other
                  Warranty.

         6.3      The rights and remedies of the Purchaser in respect of any
                  breach of any of the Warranties shall survive Completion.

         6.4      Except in respect of any misrepresentation, inaccuracy or
                  omission which has been made fraudulently each of the Vendors
                  waives and may not enforce any right which he may have in
                  respect of any misrepresentation, inaccuracy or omission in or
                  from any information or advice supplied or given by the Group
                  or its officers or employees in enabling the Vendors to enter
                  this agreement, give the Warranties or to prepare the
                  Disclosure Letter.

         6.5      The Warranties are given subject to matters Disclosed.

                                                                              16
<PAGE>

         6.6      The Purchaser acknowledges and represents to the Vendors that
                  it has not relied on any representations or warranties made by
                  the Vendors or on their behalf by any person other than those
                  included in this Agreement or any other agreement entered into
                  pursuant to or for the purposes of this Agreement.

         6.7      The Purchaser's sole remedy in the event of any breach of any
                  warranty, undertaking or covenant in this agreement or the Tax
                  Covenant or any other agreement to be entered into pursuant to
                  or for the purposes of this agreement shall be in damages for
                  breach of contract and (for the avoidance of doubt) the
                  Purchaser shall have no right to rescind or terminate this
                  agreement or any such other agreement after Completion.

         6.8      The Purchaser acknowledges and agrees that in entering into
                  this Agreement, and the documents referred to in it, it does
                  not rely on, and shall have no remedy in respect of, any
                  statement, representation, warranty or understanding (whether
                  negligently or innocently made) of any person (whether party
                  to this agreement or not) other than as expressly set out in
                  this agreement as a Warranty. Nothing in this clause shall,
                  however, operate to limit or exclude any liability for fraud.

         6.9      The provisions of schedule 8 shall have effect in respect of
                  the Vendors' liability under this agreement;

         6.10     No representations, Warranties, indemnities or other assurance
                  or comfort whatsoever are given under this agreement in favour
                  of the Purchaser in relation to the state and repair of the
                  incinerators operated by members of the Group and no
                  representations, Warranties, indemnities or other statements
                  (whether written or oral) made under or in connection with
                  this agreement shall be construed so as to relate to such
                  matters and the Purchaser will be deemed to have relied
                  exclusively on their own investigations of all such matters
                  provided that the state and repair of the incinerators may be
                  used as evidence of breach of the Warranty in paragraph 6.9 of
                  schedule 3.

         6.11     Except as set out in paragraph 20 of schedule 3, no
                  representations, Warranties indemnities or other assurance or
                  comfort whatsoever are given under this agreement in favour of
                  the Purchaser in relation to environmental matters and no
                  representations, Warranties, indemnities or other statements
                  (whether written or oral) made under or in connection with
                  this agreement shall be construed so as to relate to such
                  matters and the Purchaser will be deemed to have relied
                  exclusively on their investigations of all such matters.

                                                                              17
<PAGE>

         6.12     Except as set out in part 2 of schedule 3, no representations,
                  Warranties indemnities or other assurance or comfort
                  whatsoever are given under this agreement in favour of the
                  Purchaser in relation to the Properties and no
                  representations, Warranties, indemnities or other statements
                  (whether written or oral) made under or in connection with
                  this agreement shall be construed so as to relate to such
                  matters and save as set out in part 2 of schedule 3 the
                  Purchaser will be deemed to have relied exclusively on their
                  investigations of all such matters.

7.       WARRANTORS' COVENANTS

         7.1      Each of the Warrantors severally undertakes to and covenants
                  with the Purchaser that (except with the consent in writing of
                  the Purchaser) he will not at any time after Completion:

                  7.1.1    use or procure or cause or (so far as he is able)
                           permit the use of any name or names identical or
                           similar to or including the words "White Rose
                           Environmental" or "Sharpsmart" or any of the names or
                           names identical or similar to the Subsidiaries or any
                           colourable imitation thereof in connection with any
                           activity whatsoever;

                  7.1.2    (except as required by law) disclose or divulge to
                           any person (other than to officers or employees of
                           the Purchaser whose province it is to know the same)
                           or use (other than for the benefit of the Purchaser)
                           any Confidential Information which may be within or
                           have come to his knowledge;

                  7.1.3    do or say anything which is intended to damage the
                           goodwill or reputation of the Company or any other
                           member of the Group or of any business carried on by
                           any member of the Group.

         7.2      Each of the Warrantors severally undertakes to and covenants
                  with the Purchaser that he will not, unless otherwise agreed
                  in writing by the Purchaser, for a period of three years after
                  the date of this agreement, either on his own behalf or
                  jointly with or as an officer, manager, employee, adviser,
                  consultant or agent for any other person, directly or
                  indirectly:

                  7.2.1    approach, canvass, solicit or otherwise act with a
                           view to enticing away from or seeking in competition
                           with any business of the Company or any of the
                           Subsidiaries the custom of any person who at any time
                           during the period of

                                                                              18
<PAGE>

                           12 months preceding the Completion Date or at any
                           time thereafter prior to his ceasing to be employed
                           by the Company is or has been a customer of the
                           Company or any of the Subsidiaries and during such
                           period he shall not use his knowledge of or influence
                           over any such customer to or for his own benefit or
                           the benefit of any other person carrying on business
                           in competition with the Company or any of the
                           Subsidiaries or otherwise use his knowledge of or
                           influence over any such customer to the detriment of
                           the Company or any of the Subsidiaries;

                  7.2.2    approach, canvass, solicit, engage or employ or
                           otherwise endeavour to entice away or aid or assist
                           any other person or persons in employing or otherwise
                           retaining the services of any person who at any time
                           during the period of 12 months preceding the
                           Completion Date has been an employee (other than in a
                           junior administrative or secretarial capacity),
                           officer, manager, consultant, sub-contractor or agent
                           of the Company or any of the Subsidiaries with a view
                           to the specific knowledge or skills of such person
                           being used by or for the benefit of any person
                           carrying on business in competition with the business
                           carried on by the Company or any of the Subsidiaries;

                  7.2.3    be engaged, concerned or interested, whether as an
                           employee or in any other capacity, in any business
                           concern within Great Britain which is involved in (i)
                           the handling, collection, transportation, transfer,
                           processing, storage, treatment or disposal of
                           clinical waste or (ii) any other business in which
                           any Group member was engaged at any time during the
                           period of 24 months prior to the Completion Date.

         7.3      Each of the covenants contained in clauses 7.1 and 7.2 shall
                  constitute an entirely separate and independent restriction on
                  each of the Warrantors.

         7.4      Nothing in this clause 7 shall prohibit any of the Warrantors
                  from directly or indirectly holding shares or stock quoted or
                  dealt in on a recognised investment exchange (as defined in
                  the FSMA) so long as not more than one per cent per Warrantor
                  or five per cent on aggregate of the shares or stock of any
                  class of any one company is so held.

                                                                              19
<PAGE>

         7.5      The Warrantors and each of them agree and acknowledge that the
                  restrictions contained in this clause 7 are fair and
                  reasonable and necessary to assure to the Purchaser the full
                  value and benefit of the Shares but, in the event that any
                  such restriction shall be found to be void or unenforceable
                  but would be valid and effective if some part or parts thereof
                  were deleted, such restriction shall apply with such deletion
                  as may be necessary to make it valid and effective.

         7.6      If a breach of this clause 7 occurs, the Warrantors and the
                  Purchaser agree that damages alone are likely not to be
                  sufficient compensation and that injunctive relief is
                  reasonable and is likely to be essential to safeguard the
                  interests of the Purchaser and of any member of the Group and
                  that injunctive relief (in addition to any other equitable
                  remedies) may (subject to the discretion of the courts) be
                  obtained.

8.       SET OFF AGAINST LOAN NOTES

         8.1      In the event that there is a Settled Claim which is not
                  satisfied by a payment out of the Escrow Account pursuant to
                  clause 5, the Purchaser shall be entitled to set off the
                  amount of such Settled Claim against the Loan Notes by
                  cancellation of a relevant amount thereof, in accordance with
                  the provisions of condition 7.1 of schedule 2 of the Loan
                  Notes, the amount of such set off being apportioned between
                  the Warrantors in the proportions set out in column 5 of
                  schedule 1.

         8.2      If there are any outstanding Unagreed Claims on the redemption
                  date of the Loan Notes, the Purchaser may withhold payment of
                  a pro rata portion of each Loan Note (determined by reference
                  to the proportions set out in column 5 of schedule 1) equal in
                  the aggregate to the aggregate amount of all such outstanding
                  Unagreed Claims as estimated either by Queen's Counsel
                  selected by the Purchaser in its reasonable discretion and at
                  its cost or by the Purchaser itself (as the case may be) if,
                  and only if, within five Business Days after the redemption
                  date of the Loan Notes, the Purchaser deposits the entire
                  amount withheld into the Escrow Account by electronic funds
                  transfer. The amount deposited shall remain in the Escrow
                  Account until such time as the relevant Unagreed Claims become
                  Settled Claims. When the said Unagreed Claims become Settled
                  Claims, the amount of the Settled Claims shall be paid to the
                  Purchaser and the amount of such payment shall pro tanto
                  satisfy the liability concerned and the balance (if any) of
                  the amount deposited in the Escrow Account in respect of the
                  relevant claims shall be paid to the Warrantors in the
                  proportions set out in column 5 of schedule 1. If the
                  Purchaser does not obtain an opinion of Queen's

                                                                              20
<PAGE>

                  Counsel that an outstanding Unagreed Claim is likely to
                  succeed and Queen's Counsel's best estimate of the claim, then
                  the Purchaser shall pay interest on the excess (if any) of the
                  amount deposited into the Escrow Account in respect of the
                  Unagreed Claim over the amount of the Settled Claim when the
                  Unagreed Claim becomes a Settled Claim. The rate of interest
                  payable on such excess shall be 5 per cent per annum over the
                  base rate of Barclays Bank PLC and shall accrue from day to
                  day from the redemption date of the Loan Notes to the date of
                  payment and be paid within five Business Days after the
                  Unagreed Claim becomes a Settled Claim. The amount of interest
                  otherwise payable by the Purchaser shall be reduced by the
                  interest paid or payable to the Warrantors under clause 5.5 in
                  respect of the excess for the period from the redemption date
                  of the Loan Notes to the date of the Purchaser's payment of
                  interest on the excess.

9.       TAXATION

         The provisions of schedule 4 shall apply with respect to the matters
         contained or referred to therein.

10.      FURTHER ASSURANCE AND ATTORNEY

         10.1     On and after Completion, the Vendors shall, at the request of
                  the Purchaser, do and execute or procure to be done and
                  executed all such acts, deeds, documents and things as may be
                  necessary to give effect to this agreement.

         10.2     Each of the Vendors hereby irrevocably appoints the Purchaser
                  as its true and lawful attorney pending the Purchaser's
                  registration as a member of the Company for a period of three
                  months after the date of this agreement generally in respect
                  of the Shares and in particular to attend and vote at general
                  meetings of the Company and with power on that Vendor's behalf
                  to execute and deliver all deeds and documents and to do all
                  acts and things and exercise all rights which the Purchaser
                  would be entitled to execute, deliver and do and exercise if
                  the Purchaser was registered as the holder of the Shares with
                  power to sub-delegate this power.

         10.3     Each of the Vendors agrees that, for so long as any Shares
                  remain registered in his name, he will:

                  10.3.1   not exercise any of his rights as a member of the
                           Company or appoint any other person to exercise such
                           rights;

                                                                              21
<PAGE>

                  10.3.2   hold on trust for and pay or deliver to the Purchaser
                           any distributions or notices, documents or other
                           communications which may be received after the date
                           of this agreement by that Vendor, in his capacity as
                           a member of the Company, from the Company or any
                           third party;

                  10.3.3   on request by the Vendor, ratify all documents
                           executed and acts done by the Vendor as his attorney.

11.      ANNOUNCEMENTS

         No announcement, communication or circular concerning this agreement
         shall be made (whether before or after the Completion Date) by or on
         behalf of the parties hereto without the prior approval of the other or
         others (such approval not to be unreasonably withheld or delayed) save
         for such announcements as may be required by law in any jurisdiction or
         the US Securities and Exchange Commission.

12.      COSTS

         Subject to the provisions of paragraph 6 of part 1 of schedule 7, each
         of the parties shall bear and pay its own legal, accountancy and other
         fees and expenses incurred in and incidental to the preparation and
         implementation of this agreement and of all other documents in the
         agreed form.

13.      SUCCESSORS AND ASSIGNMENT

         13.1     This agreement shall be binding on and enure for the benefit
                  of each party's successors and personal representatives but
                  shall not be assignable except that:

                  13.1.1   the Purchaser may assign the whole or any part of the
                           benefit of this agreement (either entirely or jointly
                           with itself) to any person providing the Purchaser
                           with finance for the Consideration or to any member
                           of the Purchaser's Group; or

                  13.1.2   the Purchaser (and any assignee of the Purchaser or
                           of any such assignee) may assign to any person to
                           whom the Purchaser has sold any Shares or any of the
                           assets or businesses of any member of the Group the
                           benefit of the restrictive covenants set out in
                           clause 7.

                                                                              22
<PAGE>

         13.2     Except as otherwise expressly provided, all rights and
                  benefits under this agreement are personal to the parties and
                  may not be assigned at law or in equity without the prior
                  written consent of each other party.

14.      ENTIRE AGREEMENT

         14.1     This agreement (including the schedules to it) and any
                  documents in the agreed form and the Disclosure Letter
                  ("ACQUISITION DOCUMENTS") constitute the entire agreement
                  between the parties with respect to the subject matter of this
                  agreement.

         14.2     Except for any misrepresentation or breach of warranty which
                  constitutes fraud:

                  14.2.1   the Acquisition Documents supersede and extinguish
                           all previous agreements between the parties relating
                           to the subject matter thereof and any representations
                           and warranties previously given or made;

                  14.2.2   each party acknowledges to the other (and shall
                           execute the Acquisition Documents in reliance on such
                           acknowledgement) that it has not been induced to
                           enter into any such documents by nor relied on any
                           representation or warranty other than the warranties
                           contained in such documents;

                  14.2.3   each party hereby irrevocably and unconditionally
                           waives any right it may have to rescind this
                           agreement or any other of the Acquisition Documents
                           for any reason whatsoever or to claim damages for any
                           mis-representation;

                  14.2.4   each party hereby irrevocably and unconditionally
                           waives any right it may have to claim damages by
                           reason of any warranty not set forth in any such
                           document.

         14.3     Each of the parties acknowledges and agrees for the purposes
                  of the Misrepresentation Act 1967 and the Unfair Contract
                  Terms Act 1977 that the provisions of this clause 14 are
                  reasonable.

15.      VARIATIONS

         No variation of this agreement or any of the documents in the agreed
         form shall be valid unless it is in writing and signed by or on behalf
         of each of the parties to this agreement.

                                                                              23
<PAGE>

16.      WAIVER

         No waiver by any party to this agreement of any breach or
         non-fulfilment by any other party to this agreement of any provisions
         of this agreement shall be deemed to be a waiver of any subsequent or
         other breach of that or any other provision and no failure to exercise
         or delay in exercising any right or remedy under this agreement shall
         constitute a waiver thereof. No single or partial exercise of any right
         or remedy under this agreement shall preclude or restrict the further
         exercise of any such right or remedy.

17.      AGREEMENT CONTINUES IN FORCE

         This agreement shall remain in full force and effect so far as concerns
         any matter remaining to be performed at Completion even though
         Completion shall have taken place.

18.      SEVERABILITY

         The invalidity, illegality or unenforceability of any provisions of
         this agreement shall not affect the continuation in force of the
         remainder of this agreement.

19.      NOTICES

         19.1     Any notice to be given pursuant to the terms of this agreement
                  shall be given in writing to the party due to receive such
                  notice at its or his address set out in this agreement or such
                  other address as may have been notified to the other parties
                  in accordance with this clause 19.

         19.2     Notice shall be delivered personally or sent by prepaid
                  recorded delivery or registered post (first class if wholly
                  within the UK or otherwise by airmail) or by facsimile
                  transmission provided that the sender shall have received
                  printed confirmation of transmission.

         19.3     Any notice or other communication delivered or sent shall be
                  deemed to have been served at the time when it arrives at the
                  address to which it is delivered or sent except that if that
                  time is between 5.30 p.m. on a Relevant Day and 9.00 a.m. on
                  the next Relevant Day it shall be deemed to have been served
                  at 9.00 a.m. on the second of such Relevant Days. For the
                  purposes of this clause "Relevant Day" means any day other
                  than a Saturday, Sunday or a day which is a public holiday at
                  the postal address of the receiving party.

                                                                              24
<PAGE>

20.      COUNTERPARTS

         This agreement may be executed in any number of counterparts each of
         which when executed by one or more of the parties hereto shall
         constitute an original but all of which shall constitute one and the
         same instrument.

21.      THIRD PARTY RIGHTS

         A person who is not party to this agreement shall have no right under
         the Contracts (Rights of Third Parties) Act 1999 to enforce any term of
         this agreement. This clause does not affect any right or remedy of any
         person which exists or is available otherwise than pursuant to that
         Act.

22.      MISCELLANEOUS

         22.1     The Purchaser may release or compromise the liability of or
                  institute proceedings or obtain judgement against a Vendor
                  under this agreement, or grant to a Vendor time or other
                  indulgence without affecting the liability of any other Vendor
                  under this agreement or the Purchaser's rights against any
                  other party.

         22.2     The rights conferred on the Purchaser in this agreement are
                  cumulative and in addition to all other rights available to
                  the Purchaser.

23.      GOVERNING LAW AND JURISDICTION

         23.1     This agreement shall be governed by and construed in
                  accordance with the laws of England.

         23.2     The parties irrevocably agree that the courts of England shall
                  have exclusive jurisdiction to settle any dispute which may
                  arise out of or in connection with this agreement and that
                  accordingly, any suit, action or proceedings (together in this
                  clause 23 referred to as "PROCEEDINGS") arising out of or in
                  connection with this agreement shall be brought in such
                  courts.

IN WITNESS of which the parties or their duly authorised representatives have
executed this agreement as a deed.

                                                                              25
<PAGE>

                                   SCHEDULE 1

            DETAILS OF THE VENDORS, THE SHARES AND THE CONSIDERATION

<TABLE>
<CAPTION>
       (1)                         (2)                           (3)                     (4)              (5)
                                                                 CASH
                                                         (a)             (b)
                                                                    PAYABLE INTO
                               NO. AND CLASS        PAYABLE ON       THE ESCROW          LOAN
NAME AND ADDRESS                OF SHARES            COMPLETION       ACCOUNT            NOTES         PROPORTIONS
<S>                         <C>                  <C>                <C>             <C>                <C>
Andrew Peter Hinton         67,002 A Ordinary    (pound)7,630,842   (pound)670,005  (pound)2,791,688       44.667%
Frazer Lodge
2 Allerton Park
Leeds
West Yorkshire
LS7 4ND

Andrew Peter Hinton and     22,332, A Ordinary   (pound)3,697,180   (pound)0        (pound)0                    0%
Penelope Jane Sanders of
Frazer Lodge, 2 Allerton
Park, Leeds, West
Yorkshire LS7 4ND and
Christopher Winston
Jones of Elizabeth House,
Queen Street, Leeds,
West Yorkshire LS1
2TW as trustees of The
AP Hinton 2001
Accumulation and
Maintenance Settlement

Nicholas Andrew Wyatt       55,333 B Ordinary    (pound)7,016,516   (pound)414,998  (pound)1,729,156      27.6665%
25 South Drive
Harrogate
North Yorkshire
HG2 8AT

Terence John Hewitt         55,333 C Ordinary    (pound)7,016,516   (pound)414,998  (pound)1,729,156      27.6665%
21 Christopher Bushell
Way
Ashford
Kent
TN24 9PY
</TABLE>

                                                                              26
<PAGE>

                                   SCHEDULE 2

                                     PART 1

                                   THE COMPANY

<TABLE>
<S>                                                                 <C>
1.       REGISTERED NUMBER:                                         4057457

2.       DATE OF INCORPORATION:                                     22/08/2000

3.       PLACE OF INCORPORATION:                                    England and Wales

4.       REGISTERED OFFICE:                                         Pannell House, 6 Queen Street, Leeds LS1 2TW

5.       PRINCIPAL BUSINESS:                                        9,000 - Refuse disposal, sanitation etc

6.       AUTHORISED SHARE CAPITAL:                                  (pound)222,222

         DESCRIPTION:                                               Ordinary  shares of(pound)1 divided  into the  following
                                                                    classes:

                                                                    89,334 'A' Ordinary        55,333 'C' Ordinary
                                                                    55,333 'B' Ordinary        22,222 'D' Ordinary

         NUMBER OF SHARES:                                          222,222

7.       ISSUED SHARE CAPITAL:                                      (pound)211,937

         DESCRIPTION:                                               89,334 'A' Ordinary        55,333 'C' Ordinary
                                                                    55,333 'B' Ordinary        11,937 'D' Ordinary

         NUMBER OF SHARES:                                          211,937

         AMOUNT PAID UP:                                            (pound)211,937

8.       ISSUED LOAN CAPITAL:                                       Nil

9.       DIRECTORS - FULL NAMES AND USUAL RESIDENTIAL ADDRESSES:    Terence John               Nicholas Andrew
         RESIDENTIAL ADDRESSES:                                     Hewitt                     Wyatt
                                                                    Pannell House              Pannell House
                                                                    6 Queen Street             6 Queen Street
                                                                    Leeds                      Leeds
                                                                    LS1 2TW                    LS1 2TW
</TABLE>

                                                                              27
<PAGE>

<TABLE>
<S>                                                                 <C>
                                                                    Andrew Peter               Stephen John
                                                                    Hinton                     Middleton
                                                                    Pannell House              Pannell House
                                                                    6 Queen Street             6 Queen Street
                                                                    Leeds                      Leeds
                                                                    LS1 2TW                    LS1 2TW

10.      SECRETARY - FULL NAME AND USUAL                            Stephen John Middleton
         RESIDENTIAL ADDRESS:                                       Pannell House
                                                                    6 Queen Street
                                                                    Leeds
                                                                    LS1 2TW

11.      ACCOUNTING REFERENCE DATE:                                 31 March

12.      AUDITORS:                                                  PFK, Pannell House, 6 Queen Street, Leeds, LS1 2TW
</TABLE>

                                                                              28
<PAGE>

                                     PART 2

                                THE SUBSIDIARIES

<TABLE>
<CAPTION>
                                                                                    ISSUED
                          DATE AND                         AUTHORISED                SHARE             PERCENTAGE
   NAME AND               PLACE OF      DIRECTORS AND    SHARE  CAPITAL           CAPITAL (POUND)      OWNED BY THE
REGISTERED NO.          INCORPORATION    SECRETARY       (POUND)AND NO.)             AND NO.)            COMPANY
<S>                     <C>             <C>              <C>                      <C>                  <C>
WHITE ROSE              2 October       Terence John     (pound)78,110,000        1,000                100%
ENVIRONMENTAL           1989            Hewitt           consisting of            ordinary             subsidiary of
OPERATIONS                                               77,110,000                                    White Rose
LIMITED                 England and     Andrew Peter     ordinary shares                               Environmental
2428371                 Wales           Hinton           of(pound)1 each and                           Limited
                                        Nicholas         1,000,000                                     (Company
                                        Andrew Wyatt     deferred shares                               No. 4057547)
                                                          of(pound)1 each
                                        Stephen John
                                        Middleton
                                        (Director and
                                        Secretary)

CLINICAL WASTE          11 May 1988     Terence John     (pound)4 consisting of   (pound)4             100%
LIMITED                                 Hewitt           40 ordinary              consisting           subsidiary of
2256045                 England and                      shares of(pound)0.10     of 40                White Rose
                        Wales           Andrew Peter     each                     ordinary             Environmental
                                        Hinton                                    shares of            Operations
                                                                                  (pound)0.10 each     Ltd
                                                                                                       (Company No
                                        Nicholas                                                       2428371)
                                        Andrew Wyatt

                                        Stephen John
                                        Middleton
                                        (Secretary)

DYVELL                  15 August       Terence John     (pound)28,012            (pound)14,628        100%
(HOLDINGS)              1990            Hewitt           consisting of            consisting           subsidiary of
LIMITED                                                  28,012 ordinary          of 14,628            White Rose
2531375                 England and     Andrew Peter     shares of(pound)1        ordinary             Environmental
                        Wales           Hinton           each                     shares of(pound)1    Operations
                                                                                  each                 Limited
                                        Nicholas                                                       (Company No
                                        Andrew Wyatt                                                   2428371)

                                        Stephen John
                                        Middleton
                                        (Secretary)

DYVELL                  30 September    Terence John     (pound)1,000             (pound)2             100%
INCINERATION            1993            Hewitt           consisting of            consisting           subsidiary of
SERVICES                                                 1,000 ordinary           of 2                 Dyvell
LIMITED                 England and     Andrew Peter     shares of(pound)1        ordinary             (Holdings)
                        Wales           Hinton                                    shares of(pound)1
</TABLE>

                                                                              29
<PAGE>

<TABLE>
<CAPTION>
                                                                                    ISSUED
                          DATE AND                         AUTHORISED                SHARE             PERCENTAGE
   NAME AND               PLACE OF      DIRECTORS AND    SHARE  CAPITAL           CAPITAL (POUND)      OWNED BY THE
REGISTERED NO.          INCORPORATION    SECRETARY       (POUND)AND NO.)             AND NO.)            COMPANY
<S>                     <C>             <C>              <C>                      <C>                  <C>
2858330                                 Nicholas         each                     each                 Ltd
                                        Andrew Wyatt

                                        Stephen John
                                        Middleton
                                        (Secretary)

DYVELL LIMITED          7 June 1991     Terence John     (pound)2,000,000         (pound)1,100,000     100%
2618679                                 Hewitt           consisting of            consisting           subsidiary of
                        England and                      2,000,000                of                   Dyvell
                        Wales           Andrew Peter     ordinary shares          1,100,000            (Holdings)
                                        Hinton           of(pound)1 each          ordinary             Ltd
                                                                                  shares of(pound)1
                                        Nicholas                                  each
                                        Andrew Wyatt
                                        Stephen John
                                        Middleton
                                        (Secretary)

DYVELL WASTE            25 August       Terence John     (pound)1,000             (pound)2             100%
CARE LIMITED            1993            Hewitt           consisting of            consisting           subsidiary of
2847513                                                  1,000 ordinary           of 2                 Dyvell
                        England and     Andrew Peter     shares of(pound)1        ordinary             (Holdings)
                        Wales           Hinton           each                     shares of(pound)1     Ltd
                                                                                  each
                                        Nicholas
                                        Andrew Wyatt
                                        Stephen John
                                        Middleton
                                        (Secretary)
</TABLE>

                                                                              30
<PAGE>

                                   SCHEDULE 3

                                 THE WARRANTIES

                                     PART 1

                                     GENERAL

1.       CAPACITY AND OWNERSHIP OF SHARES

         1.1      Each Vendor has full power and authority and has taken all
                  action necessary to execute and deliver and to exercise his
                  rights and perform his obligations under this agreement and
                  each of the documents in the agreed form to be executed on or
                  before Completion which constitute valid and binding
                  obligations on each Vendor in accordance with their terms.

         1.2      The execution and delivery of, and the performance by each
                  Vendor of his obligations under each of the documents
                  mentioned in paragraph 1.1 above does not require the consent
                  of a third party and will not result in a breach of or entitle
                  any third party to terminate or avoid any agreement,
                  arrangement, order, judgment or decree of any court or any
                  governmental agency to which he is a party or by which it or
                  its assets is bound or from which he benefits.

         1.3      The Shares constitute the whole of the allotted and issued
                  share capital of the Company and have been properly allotted
                  and issued.

         1.4      The details of the share capital of each member of the Group
                  set out in Schedule 2 are correct. The Company or a Subsidiary
                  is the sole legal and beneficial owner of all the issued
                  shares in each Subsidiary.

         1.5      No person has any present, future or contingent right to call
                  for the allotment, conversion or transfer of or to be entered
                  into the register of members as the holder of any share or
                  loan capital of any member of the Group and there is no
                  Encumbrance on, over or affecting the Shares or any of them or
                  the shares in the Subsidiaries or any unissued shares in the
                  capital of the Company and there is no agreement or commitment
                  to give or create any Encumbrance or negotiations which may
                  lead to such an agreement or commitment and no claim has been
                  made by any person to be entitled to an Encumbrance in
                  relation thereto.

                                                                              31
<PAGE>

         1.6      Each Vendor is the sole legal and beneficial owner of the
                  number of Shares set out against his name in Schedule 1.

         1.7      Each Vendor is entitled to sell and transfer the full legal
                  and beneficial ownership in his Shares to the Purchaser and
                  such sale will not result in any breach of or default under
                  any agreement or other obligation binding upon the Vendors or
                  any of them or any of their respective property.

         1.8      Other than this agreement, there is no agreement, arrangement
                  or obligation requiring the creation, allotment, issue,
                  transfer, redemption or repayment of, or the grant to any
                  person of the right (whether conditional or not) to require
                  the allotment, issue, transfer, redemption or repayment of,
                  any shares in the capital of the Company or any Subsidiary
                  (including, without limitation, an option or right of
                  pre-emption or conversion).

         1.9      There is no litigation, arbitration, prosecution,
                  administrative or other legal proceedings or dispute in
                  existence or threatened against any of the Vendors in respect
                  of the Shares or the shares in the Subsidiaries or the
                  Vendors' entitlement to dispose of the Shares or the shares in
                  the Subsidiaries and there are no facts known to the
                  Warrantors or any of them which might give rise to any such
                  proceedings or any such dispute.

         1.10     None of the Shares have been the subject of a transaction at
                  an undervalue within the meaning of part IX or part VI of the
                  Insolvency Act 1986.

         1.11     The Company has not received any notice or any application or
                  notice of any intended application under the provisions of the
                  Companies Acts for the rectification of the register of
                  members of the Company.

         1.12     The Company has not exercised nor purported to exercise or
                  claim any lien over the Shares and no call on the Shares is
                  outstanding and all the Shares are fully paid up.

         1.13     The Company has not at any time given any financial assistance
                  in connection with the purchase of shares as would fall within
                  the provisions of sections 151 to 157 of the 1985 Act.

                                                                              32
<PAGE>

2.       ACCOUNTS

         2.1      The Accounts and the audited financial statements of each
                  member of the Group have been prepared in accordance with the
                  requirements of the relevant statutes and on a basis
                  consistent with that adopted in the preparation of the audited
                  accounts of each member of the Group for each of the last two
                  preceding financial years and in accordance with all financial
                  reporting standards, statements of standard accounting
                  practice and generally accepted accounting principles and
                  practices in the United Kingdom and give a true and fair view
                  of the assets and liabilities and state of affairs of each
                  member of the Group as at the Accounts Date and its profits
                  and losses for the relevant period ended on the Accounts Date.

         2.2      So far as the Warrantors are aware the Accounts make provision
                  for, reserve for or disclose, as appropriate, all known
                  liabilities, whether actual or contingent, whether or not
                  disputed, and all known capital commitments, whether actual or
                  contingent, and all bad or doubtful debts of each member of
                  the Group as at the Accounts Date.

         2.3      In the Accounts the stock in trade and work in progress of
                  each member of the Group have been treated in accordance with
                  SSAP 9 and no change has been made in basis of valuation of
                  stock and work in progress since 21 December 2000.

         2.4      The name and address of the auditors of each member of the
                  Group is set out in the Disclosure Letter.

         2.5      The Management Accounts have been prepared with due care and
                  attention and on a basis consistent with the management
                  accounts of the Company for the financial year ended on the
                  Accounts Date and, taking into account that they were prepared
                  for management purposes only and not to an audit standard, and
                  thus, among other things, do not reflect normal year-end
                  adjustments or include footnote disclosures of a type normally
                  included in audited accounts prepared in accordance with
                  generally accepted accounting principles and practices in the
                  United Kingdom, (i) the Management Accounts do not materially
                  overstate the assets and profits of the Company and do not
                  materially understate its liabilities or losses and (ii) so
                  far as the Warrantors are aware, the Management Accounts (Full
                  Year) (a) give a reasonably accurate view of the assets and
                  liabilities of each member of the Group as at 31 March 2004
                  and its profits and losses for the 12 month period ended on 31
                  March 2004 and (b) make provision for, reserve for or
                  disclose, as appropriate, all actual liabilities as at the
                  Accounts Date known to the Warrantors.

                                                                              33
<PAGE>

         2.6      No member of the Group has its records, systems, controls,
                  data or information, recorded, stored, maintained, operated or
                  otherwise wholly or partly dependent on or held by any means
                  (including any electronic, mechanical or photographic process
                  whether computerised or not) which (including all means of
                  access) are not under the exclusive ownership and direct
                  control of that member of the Group.

         2.7      Save as set out in the notes to the Accounts and in the
                  Previous Accounts such accounts have not been affected by
                  transactions undertaken by any Group member otherwise than in
                  the ordinary course of its business.

3.       BANK ACCOUNTS AND INDEBTEDNESS

         3.1      In respect of each member of the Group

                  3.1.1    a statement of all its bank, building society,
                           investment and deposit accounts and of the credit or
                           debit balances on them at the Business Day before the
                           date of this agreement is attached to the Disclosure
                           Letter;

                  3.1.2    since such statements there have been no payments out
                           of any such accounts;

                  3.1.3    the total value of the unpresented cheques drawn by
                           it does not exceed(pound)59,456;

                  3.1.4    it has not incurred any borrowings which it has not
                           repaid or satisfied;

                  3.1.5    the amount borrowed by it does not exceed any
                           limitation on its borrowing contained in its articles
                           of association or in any debenture or other deed or
                           document binding on it;

                  3.1.6    it has not received demand for repayment of any
                           borrowing or indebtedness in the nature of borrowing
                           which is repayable on demand, and there has not
                           occurred any event which would entitle (or which with
                           the giving of notice and/or the lapse of time and/or
                           a relevant determination would entitle) any person to
                           require early repayment of any borrowing or
                           indebtedness in the nature of borrowing;

                  3.1.7    it has no bank overdraft facilities, loan facilities,
                           credit facilities, acceptance credits or other
                           financial facilities outstanding or available to it;

                                                                              34
<PAGE>

                  3.1.8    it has not entered into nor is it negotiating to
                           enter into any debt factoring, discounting or
                           inventory finance arrangement;

                  3.1.9    it has not or engaged in any off balance sheet
                           financing or any financing of a type which would not
                           require to be shown or reflected in the Accounts, had
                           such arrangement or financing been entered into on or
                           before the Accounts Date; and

                  3.1.10   it has not entered into nor is it negotiating to
                           enter into any currency and/or interest rate swap
                           agreement, asset swap, future rate or forward rate
                           agreement, interest cap, collar and/or floor
                           agreement or other currency exchange or interest rate
                           protection transaction or combination of them or any
                           option or any similar arrangement.

         3.2      All Encumbrances created by or in favour of any member of the
                  Group which are required to be registered in accordance with
                  the provisions of the Companies Act or in any other relevant
                  jurisdiction have been so registered and comply with all
                  necessary formalities as to registration or otherwise in that
                  jurisdiction; and the registered particulars of Encumbrances
                  created by or in favour of any member of the Group are
                  complete and accurate.

         3.3      No member of the Group is owed any sums other than debts
                  incurred in the ordinary course of trading.

         3.4      No event has occurred causing, or which on intervention or
                  notice by any third party may cause, any floating charge
                  created by any member of the Group to crystallise or any
                  charge created by it to become enforceable, nor has any
                  crystallisation occurred or is any such enforcement in
                  process.

         3.5      So far as the Warrantors are aware no member of the Group has
                  been a third party to any transaction with any third party
                  which, in the event of such third party going into liquidation
                  or an administration order or a bankruptcy order being made in
                  relation to it or to him, would constitute a transaction at an
                  undervalue, a preference, an invalid floating charge or an
                  extortionate credit transaction or part of a general
                  assignment of debts, under sections 238 to 245 and sections
                  339 to 344 of the Insolvency Act 1986.

         3.6      No person who is or has to any time within the last three
                  years been a Director or officer of any member of the Group
                  has at any material time been subject to any

                                                                              35
<PAGE>

                  disqualification order under the Companies Act or under any
                  other legislation relating to the disqualification of
                  directors and officers, or was the subject of any
                  investigation or proceedings capable of leading to a
                  disqualification order being made.

         3.7      No member of the Group has applied for or received any
                  investment grant, building grant, grant under the Local
                  Employment Acts 1970 or 1972 or under any Industry Act or any
                  other governmental grant or allowance or loan subsidy or
                  financial assistance.

         3.8      No circumstances have arisen or could arise as a consequence
                  of events occurring on or before the date of this agreement
                  (including the execution or completion of this agreement) as a
                  result of which:

                  3.8.1    any grant, subsidy, allowance or assistance received
                           by any member of the Group Company is liable to be
                           repaid;

                  3.8.2    any grant, allowance subsidy or assistance for which
                           any member of the Group Company has made application
                           will not be paid or will be reduced.

4.       POSITION SINCE ACCOUNTS DATE

         Since the Accounts Date:

         4.1      the business of the Group has been carried on in the ordinary
                  and usual course and so as to maintain the same as a going
                  concern;

         4.2      save for the disposal of the Company's interest in WRE
                  Services Limited (details of which are disclosed in the
                  Disclosure Letter) no member of the Group has acquired or
                  disposed of or agreed to acquire or dispose of any business or
                  any material asset or assumed or acquired any material
                  liability (including a contingent liability) otherwise than in
                  the ordinary course of business;

         4.3      neither the turnover nor the expenses (direct and indirect)
                  nor the trading position nor the margin of profitability of
                  the Group shows any material deterioration by comparison with
                  the turnover, expenses, trading position and margin of
                  profitability of the Group for the corresponding period in its
                  last completed accounting reference period;

                                                                              36
<PAGE>

         4.4      there has not been any material change in the assets or
                  liabilities (including contingent liabilities) of the Group as
                  shown in the Accounts except for changes arising from routine
                  payments and from routine supplies of goods or of services in
                  the normal course of trading;

         4.5      there has not been any capitalisation of reserves of the Group
                  and the Group has not issued or agreed to issue any share or
                  loan capital other than that issued at the Accounts Date and
                  has not granted or agreed to grant any option in respect of
                  any share or loan capital and the Group has not repaid any
                  loan capital in whole or in part nor has it, by reason of any
                  default by it in its obligations, become bound or liable to be
                  called upon to repay prematurely any loan capital or borrowed
                  monies;

         4.6      there has been no resolution of or agreement by the members of
                  the Group or any class thereof (except as provided in this
                  agreement or with the prior written consent of the Purchaser)
                  and in particular there has been no capital reorganisation or
                  other change in the capital structure of the Group;

         4.7      no member of the Group has changed its accounting reference
                  period;

         4.8      no dividend or other distribution (within the meaning of that
                  expression as contained in section 209 or 210 or 418 of the
                  Income and Corporation Taxes Act 1988) has been declared, paid
                  or made by any member of the Group.

5.       BUSINESS NAME

         Neither the Company nor any Subsidiary uses any name for any purpose
         other than its full corporate name.

6.       ASSETS

         6.1      All the property and assets which are described in the
                  Accounts, the Management Accounts and/or in the books of
                  account or records of the Group as being owned by the Group
                  are:

                  6.1.1    legally and beneficially owned by a member of the
                           Group;

                  6.1.2    in the possession or under the control of the
                           Company;

                                                                              37
<PAGE>

                  6.1.3    free from all Encumbrances and there is not any
                           agreement or commitment to give or create, and no
                           claim has been made by any person entitled to any
                           Encumbrance.

         6.2      Details of all assets used by the Group which are the subject
                  of any assignment, royalty, overriding royalty, factoring
                  arrangement, leasing, retention or hiring agreement, hire
                  purchase agreement for payment on deferred terms or any
                  similar agreement or arrangement in respect of which annual
                  payments exceed (pound)5,000 are set out in the Disclosure
                  Letter.

         6.3      The plant registers of the Group are attached to the
                  Disclosure Letter and comprise a materially complete and
                  accurate record of all the plant, fixed assets including
                  machinery, equipment and Vehicles owned by the Group and
                  necessary for the continuation of the business of the Group in
                  the ordinary course of business.

         6.4      No member of the Group has assets outside the United Kingdom
                  nor does it have a branch agency or place of business or any
                  permanent establishment (as that expression is defined in the
                  relevant double taxation relief orders) outside the United
                  Kingdom.

         6.5      In the reasonable opinion of the Warrantors (having regard to
                  their previous experience of such matters) the sums expended
                  since 21 December 2000 and the maintenance works undertaken in
                  respect of fixed plant and machinery have been sufficient to
                  ensure that the plant and machinery is capable of continuing
                  to perform to the standards to which it has performed in the
                  12 months prior to the Completion Date, as measured by plant
                  availability and utilisation and compliance with applicable
                  Permits and health and safety requirements as adduced by any
                  relevant evidence which may be required to prove the same.

         6.6      Details of all capital expenditure which any member of the
                  Group has contractually committed to incur which:

                  6.6.1    relate to the repair or replacement of plant and
                           machinery; and

                  6.6.2    is in excess of(pound)20,000 per item of plant and
                           machinery

                  are disclosed in the Disclosure Letter.

                                                                              38
<PAGE>

         6.7      Each of the Vehicle Leases to which any member of the Group is
                  a party contains obligations on the lessor to fully maintain
                  the relevant Vehicle.

         6.8      No member of the Group owns any Vehicles. A list of all
                  Vehicle Leases to which any member of the Group is a party,
                  identifying each Vehicle leased by make, year, model, vehicle
                  registration number and location and the lessor, lessee, term
                  of lease and fee payable, is set out in the Disclosure Letter.

         6.9      The Warrantors are not actually aware of any capital
                  expenditure which any member of the Group must incur in the 12
                  month period following Completion which relates to the repair
                  or replacement of fixed plant and machinery which is not
                  currently contractually committed to and which would be in
                  excess of (pound)75,000 per item of fixed plant and machinery.

7.       DEBTS

         No member of the Group is owed any sums other than trade debts incurred
         in the ordinary course of business.

8.       INSURANCE

         8.1      Details of all insurance policies effected by the Group
                  (including a summary of claims and loss experience over the
                  three years to the date of this agreement) have been disclosed
                  to the Purchaser and all such insurance policies are currently
                  in full force and effect.

         8.2      Since 21 December 2000 the Group has not done or omitted to do
                  or suffered anything to be done or not to be done which has or
                  might render any policies of insurance taken out by it in
                  relation to any of the Company's assets void or voidable and
                  there are no claims outstanding under any of such policies of
                  insurance.

         8.3      The Group and its assets are and have since 21 December 2000
                  at all times been adequately insured against accident, third
                  party and other risks normally or presently insured against by
                  persons carrying on similar businesses to the business of the
                  Company. All premiums due in respect of the insurance policies
                  Disclosed have been paid and the next renewal date for each is
                  a date at least 30 days after Completion.

                                                                              39
<PAGE>

         8.4      All illnesses, accidents and injuries of which the Warrantors
                  are aware which have been suffered by any employee, workman or
                  any other third party and for which any member of the Group
                  may be liable are fully covered by insurance.

9.       RECORDS

         All the accounts, books, registers, ledgers and financial and other
         material records of any member of the Group (including all invoices and
         other records required for VAT purposes) are reasonably up to date and
         in its possession or under its control; there are no material
         inaccuracies or discrepancies contained or reflected therein.

10.      CONFIDENTIAL INFORMATION

         10.1     The Company does not use any processes and is not engaged in
                  any activities which involve the misuse or alleged misuse of
                  any confidential information belonging to any third party.

         10.2     The Warrantors are not aware of any actual or alleged misuse
                  by any person of any of its Confidential Information.

         10.3     The Group has not disclosed to any person any of its
                  Confidential Information except where such disclosure was
                  properly made in the normal course of the Group's business and
                  was made subject to an agreement under which the recipient is
                  obliged to maintain the confidentiality of such Confidential
                  Information and is restrained from further disclosing or using
                  it other than for the purposes for which it was disclosed by
                  the Group.

         10.4     Confidential Information used by the Group is kept strictly
                  confidential and the Group operates and fully complies with
                  procedures which maintain such confidentiality, which
                  confidentiality has not been breached.

11.      INTELLECTUAL PROPERTY

         11.1     The Group is the sole unencumbered legal and beneficial owner
                  and, where registered, the sole registered proprietor of all
                  the Business Intellectual Property.

         11.2     The Business Intellectual Property comprises all Intellectual
                  Property which the Purchaser will require in order to carry on
                  the business of the Group as it has been carried on during the
                  12 months prior to the Completion Date.

                                                                              40
<PAGE>

         11.3     The material particulars as to ownership and registration (and
                  applications therefor) of registrable Business Intellectual
                  Property, including priority and renewal dates where
                  applicable, are set out in the Disclosure Letter and such
                  details are accurate.

         11.4     Each and every part of the Business Intellectual Property is
                  valid, subsisting and enforceable and nothing has been done,
                  omitted to be done or permitted by any Group member or its
                  employees or agents whereby any of it has ceased or might
                  cease to be valid, subsisting and enforceable.

         11.5     None of the Business Intellectual Property is the subject of
                  any proceedings for opposition, cancellation, revocation or
                  rectification or claims notified to any Group member in
                  writing by any person (including, without limitation, from any
                  employees or former employees of the Group).

         11.6     The Group has taken all steps necessary for the maintenance
                  and full protection of all the Business Intellectual Property
                  and all rights therein.

         11.7     All application and renewal fees and costs and charges
                  regarding the Business Intellectual Property due on or before
                  Completion have been duly paid in full.

         11.8     No member of the Group has granted or entered into, or is
                  obliged to grant or enter into, any agreement, arrangement or
                  understanding (whether legally enforceable or not) for the
                  licensing to third parties or otherwise permitting or
                  authorising the use or exploitation of the Business
                  Intellectual Property by third parties or which prevent,
                  restrict or otherwise inhibit the Group's freedom to use and
                  fully exploit the Business Intellectual Property (whether now
                  or in the future).

         11.9     None of the Business Intellectual Property is currently being
                  infringed (or would be infringed if valid) or has been so
                  infringed since 21 December 2000 and so far as the Warrantors
                  are aware no third party has threatened any such infringement
                  and so far as the Warrantors are aware none of the Business
                  Intellectual Property is the subject of any claim for
                  ownership or compensation by any third party or any criminal
                  investigation or prosecution in relation thereto.

         11.10    The carrying on of the Group's business as presently
                  constituted does not require, and has not at any time
                  required, any licences or consents from or the making of
                  royalty or similar payments to any third party in respect of
                  Intellectual Property and no Group member is engaged or has
                  not in the three years immediately prior to the date

                                                                              41
<PAGE>

                  of this agreement been engaged in any activities which, and
                  none of the Group's activities, processes or products,
                  infringe any Intellectual Property or other rights belonging
                  to or vested in any third party. Insofar as any Intellectual
                  Property used by any member of the Group is not owned by that
                  or another member of the Group, its use is validly licensed to
                  the Group member under the agreements listed in the Disclosure
                  Letter.

         11.11    There are no outstanding claims against any member of the
                  Group for infringement of any Intellectual Property used (or
                  which has been used) by it and no such claims have been
                  settled by the giving of any undertakings which remain in
                  force.

         11.12    No member of the Group carries on business or sells any
                  product or service under any name other than its corporate
                  name and the trading names, trade marks, current product names
                  and other trading styles as disclosed to the Purchaser in the
                  Disclosure Letter.

12.      COMPUTER SYSTEMS

         12.1     None of the Group's records, systems, controls, data or
                  information are recorded, stored, maintained, operated or
                  otherwise wholly or partly dependent upon or held by any means
                  (including any electronic, mechanical or photographic
                  processes whether computerised or not) which (including all
                  means of access thereto and therefrom) are not under the
                  exclusive ownership and direct control of the Group.

         12.2     The Computer Systems have been satisfactorily maintained and
                  have the benefit of the maintenance agreements specified in
                  the Disclosure Letter.

         12.3     Disaster recovery plans, copies of which are set out in the
                  Disclosure Letter, are in effect and in the opinion of the
                  Warrantors are adequate to ensure that the Computer Systems
                  can be replaced or substituted without material disruption to
                  the business of the Group.

         12.4     In the event that any person providing maintenance or support
                  services for the Computer Systems ceases or is unable to do
                  so, the Group has all necessary rights to obtain the source
                  code and all related technical and other information to
                  procure the carrying out of such services by the Group's own
                  employees or by a third party.

         12.5     The Group has technically competent and trained employees to
                  ensure the proper handling operation monitoring and use of the
                  Computer Systems.

                                                                              42
<PAGE>

         12.6     The Group has adequate procedures to ensure internal and
                  external security of the Computer Systems including procedures
                  for taking and storing, on-site and off-site, back-up copies
                  of computer programs and data.

         12.7     No Group member is currently materially in breach of the terms
                  of any warranty (express or implied), licence, systems supply,
                  data supply, maintenance, service or services agreement with
                  any of its suppliers or customers in respect of Computer
                  Systems.

         12.8     The Group is registered under the Data Protection Act 1984
                  and, to the extent necessary, has notified the Data Protection
                  Commissioner under the Data Protection Act 1998 and no
                  individual has claimed compensation from the Company under the
                  Data Protection Acts 1984 and 1998.

         12.9     The Group has duly complied with and currently complies with
                  all requirements under the Data Protection Acts 1984 and 1998
                  including, without limitation:

                  12.9.1   the data protection principles set out under the Data
                           Protection Acts 1984 and 1998;

                  12.9.2   requests from individuals for access to personal data
                           held by it;

                  12.9.3   the requirements relating to the registration and/or
                           notification of processing of personal data;

                  12.9.4   where necessary, under the Data Protection Acts 1984
                           and 1998, the consent of the data subjects to the
                           processing of personal data relating to them has been
                           obtained.

         12.10    The Group has not received a notice from or been subject to
                  enquiries by the Data Protection Registrar or Commissioner
                  regarding non-compliance or alleged non-compliance by the
                  Group with any provision of the Data Protection Acts 1984 and
                  1998 (including, without limitation, the data protection
                  principles).

         12.11    No individual has alleged that any member of the Group has
                  failed to comply with the provisions of the Data Protection
                  Acts 1984 and 1998 or claimed compensation from the Company
                  under that Act including for unauthorised disclosure of
                  personal data.

                                                                              43
<PAGE>

         12.12    The data utilised by the Group in its business and/or
                  transferred by the Group to the Group's customers and/or
                  business partners has been lawfully obtained and the Group is
                  entitled to use the same, transfer the same and grant such
                  rights therein as it grants to its customers and/or business
                  partners in respect of the use of such data.

         12.13    No Group member uses any computer software other than software
                  accurate details of which are summarised in the Disclosure
                  Letter, and Standard Software.

         12.14    Each Group member possesses all necessary licences with
                  respect to its use of third party software and no licence
                  terms have been breached by any Group member.

         12.15    The rights of the Group members to use the Computer Systems
                  will not be affected by the execution of this Agreement or the
                  transaction effected by this Agreement.

         12.16    There are no royalties, licence fees or other fees payable in
                  connection with the use of any part of the Computer Systems
                  other than as expressly set out in the computer contracts
                  appended to the Disclosure Letter.

         12.17    All Proprietary Software is vested in and is legally and
                  beneficially owned solely by a Group member. So far as the
                  Warrantors are aware no third party has asserted or threatened
                  to assert any ownership rights or other adverse claims with
                  regard to any Proprietary Software.

13.      EMPLOYEES

         13.1     None of the officers, employees or consultants (if any) of the
                  Group have given or received notice terminating his employment
                  office or engagement or will be entitled to give notice as a
                  result of the provisions or performance of this agreement.

         13.2     There are no outstanding offers of employment or engagement
                  made to any person with a prospective basic salary of over
                  (pound)28,000 per annum by any Group member and there is
                  no-one with a prospective basic salary of over (pound)28,000
                  per annum who is accepting an offer of employment or
                  engagement made by any Group member that has not yet taken up
                  that employment or engagement.

         13.3     In respect of each current employee, director or consultant
                  (if any) of the Group all material particulars including their
                  full names, job titles, departments, dates of commencement of
                  employment, ages, notice periods, job location, fees, standard
                  hours of work, salaries all remuneration, incentives, bonuses,
                  expenses, profit-sharing

                                                                              44
<PAGE>

                  arrangements and other payments, share option schemes and
                  other benefits whatsoever payable are set out in the
                  Disclosure Letter.

         13.4     Particulars of all employees, officers or consultants (if any)
                  whose employment or consultancy was terminated in the last
                  twelve months from this agreement, including the reasons for
                  termination and any payment made in connection with the
                  termination are set out in the Disclosure Letter.

         13.5     The Warrantors are not actually aware (no enquiry having been
                  made other than of Helen Inch) of any current director,
                  employee or consultant (if any) who has stated that he will
                  leave office or employment or engagement otherwise than
                  through normal retirement within the 12 months following the
                  date of this agreement. No current director, employee or
                  consultant is on sick leave which as the date of this
                  agreement has continued for more than 14 consecutive days, or
                  in on maternity, paternity, parental or adoption leave or
                  either has made an application to work flexibly or is so
                  doing.

         13.6     No final written warning (referred to as a suspended dismissal
                  notice) has been given to or is currently planned to be given
                  to any current or former employee, officer or consultant (if
                  any) in the twelve months before the date of this agreement.

         13.7     All service and employment agreements and any agreements for
                  service with any director, employee or consultant (if any) of
                  any member of the Group in force at the date of this agreement
                  may be terminated by the Group member giving not more than six
                  months' notice and without giving rise to the making of a
                  payment in lieu of notice or a claim for damages or
                  compensation (other than a statutory redundancy payment or
                  payment for wrongful dismissal) or which is in suspension or
                  has been terminated but is capable of being revived or
                  enforced or in respect of which the Group member has a
                  continuing obligation.

         13.8     In relation to each of the present officers, employees or
                  consultants (if any) of each member of the Group (and so far
                  as relevant to each of its former employees) the Group member
                  has:

                  13.8.1   complied with all obligations imposed on it by
                           articles of the Treaty establishing the European
                           Community, European Commission regulations and
                           directives and all statutes, regulations and codes of
                           conduct relevant to

                                                                              45
<PAGE>

                           the relations between it and its employees, officers
                           or consultants or it and any recognised trade union
                           or appropriate representatives;

                  13.8.2   maintained adequate and suitable records regarding
                           the service of each of its employees;

                  13.8.3   complied with all collective agreements and customs
                           and practices for the time being dealing with such
                           relations or the conditions of service of its
                           employees; and

                  13.8.4   complied with all relevant orders and awards made
                           under any statute affecting the conditions of service
                           of its employees.

         13.9     No member of the Group has received an application for
                  recognition or entered into any union membership, security of
                  employment, redundancy, recognition or other collective
                  agreement (whether legally binding or not) with a trade union
                  (whether recognised or unrecognised), association of trade
                  unions, works councils, staff association or other
                  organisational or body of employees nor has any Group Company
                  done any act which might be construed as recognition.

         13.10    No member of the Group is involved in, or has been involved in
                  the last three years in, any industrial or trade dispute or
                  any dispute regarding a claim of material importance or the
                  dismissal, suspension, disciplining or varying of the terms
                  and conditions of employment of any current or former employee
                  earning a basic salary of more than (pound)28,000 per annum.

         13.11    There is no outstanding share scheme, bonus scheme
                  arrangement, employee trust (or other similar matters) to
                  which any member of the Group is party for profit sharing or
                  for payment to any of its current or former officers,
                  employees or consultants which has not been set out in the
                  Disclosure Letter.

         13.12    There is no agreement or arrangement between any member of the
                  Group and any of its current employees, officers or
                  consultants (if any) with respect to his employment, his
                  ceasing to be employed or his retirement which is not included
                  in the written terms of his employment or previous employment.

         13.13    The Group has complied with all recommendations made by the
                  Advisory Conciliation and Arbitration Service and with all
                  awards and declarations made by the Central Arbitration
                  Committee.

                                                                              46
<PAGE>

         13.14    There is no agreement, arrangement, scheme or obligation
                  (whether legal or moral) for the payment of any pensions,
                  allowances, lump sums or other like benefits on redundancy on
                  retirement or on death or during periods of sickness or
                  disablement for the benefit of any of the current or former
                  officers employees or consultants of the Group or for the
                  benefit of dependants of such persons.

         13.15    Within the two years preceding the date of this agreement, no
                  Group member has been a party to a relevant transfer (as
                  defined in the Transfer of Undertakings (Protection of
                  Employment) Regulations 1981) nor has any Group member failed
                  to comply with any duty to inform or consult any appropriate
                  employee representatives under such regulations.

         13.16    Save for salaries which are paid one month in arrears no
                  amounts due to or in respect of any of the current or former
                  officers, employees or consultants of the Group (including
                  PAYE and national insurance and pension contributions) are in
                  arrears or unpaid.

         13.17    No monies or benefits other than in respect of contractual
                  emoluments are payable to any of the officers or employees or
                  consultants (if any) of any member of the Group and there is
                  not at present a claim against any member of the Group arising
                  out of the employment or termination of employment or
                  engagement of any employee or former employee or consultant
                  (if any) or former employee for compensation for loss of
                  office or employment or engagement otherwise and whether under
                  the Employment Rights Act 1996, Race Relations Act 1976, Equal
                  Pay Act 1970, Sex Discrimination Act 1975, Sex Discrimination
                  Act 1986, Disability Discrimination Act 1995, Working Time
                  Regulations 1998, National Minimum Wage Act 1998 and the
                  regulations made under such acts or regulations or any other
                  act or otherwise.

         13.18    There are no current loans or quasi loans (as defined in the
                  Companies Act) nor have any current credit transactions (also
                  defined) been entered into by any Group member with any of its
                  directors or employees.

         13.19    In the twelve months preceding the date of this agreement no
                  Group member has given notice of any redundancies to the
                  Secretary of State or started consultations with any
                  appropriate representative under the provisions of Part 4 of
                  the Trade Union and Labour (Consolidation) Act 1992 or failed
                  to comply with any obligations under that statute. Particulars
                  of any redundancy policies as set out in the Disclosure
                  Letter.

                                                                              47
<PAGE>

14.      EMPLOYEE SHARE INCENTIVES

         14.1     The Disclosure Letter contains full details of:

                  14.1.1   all securities options granted or purported to have
                           been granted by any member of the Group to an
                           employee or by any other company to an employee by
                           reason of his employment with any member of the Group
                           under any share scheme or other arrangement; and

                  14.1.2   all shares or other securities acquired by any
                           employee of any member of the Group by reason of his
                           employment with any member of the Group.

         14.2     Each member of the Group has entered into an arrangement under
                  SSCBA 1992 Schedule 1 paragraphs 3A or 3B in respect of every
                  securities option granted by any member of the Group and the
                  Disclosure Letter gives details of all such arrangements.

         14.3     In respect of each acquisition of securities within Chapter 2
                  of Part 7 Income Tax (Earnings and Pensions) Act ("ITEPA")
                  2003 (Restricted Securities), an election has been made under
                  section 431 ITEPA in respect of all securities and there is
                  disclosed in the Disclosure Letter full details of any
                  liability to employment income which has arisen or may arise
                  as a result of that election.

15.      CONTRACTS

         15.1     There is no Material Customer Contract which, on the execution
                  of this agreement or on Completion or as a result of the
                  performance of this agreement, will or may result in any third
                  party being relieved of any obligation or becoming entitled to
                  exercise any right (including a right of termination or any
                  right pre-emption or other option).

         15.2     There are no written or oral agreements or arrangements
                  (excluding Property leases) to which any member of the Group
                  is a party:

                  15.2.1   which were entered into otherwise than by way of
                           bargain at arm's length;

                  15.2.2   which provides for the sale or purchase, option or
                           similar agreement, arrangement or obligation
                           affecting any of the assets of any member of the
                           Group or by which any member of the Group is bound;

                                                                              48
<PAGE>

                  15.2.3   under which any member of the Group gives any
                           guarantee, performance or other bond, indemnity,
                           letter of comfort or similar commitment (whether or
                           not legally binding) in relation to, or stands surety
                           for, the obligations of any third party;

                  15.2.4   under which any person has (otherwise than in the
                           ordinary and usual course of trading) incurred any
                           financial indebtedness or liability (actual or
                           contingent) to any member of the Group or vice versa
                           or has given any performance bond or other bond in
                           relation to any of the obligations of any member of
                           the Group;

                  15.2.5   which establishes any agency, distribution, joint
                           venture, partnership, cooperation agreement or
                           arrangement, consortium or profit or loss sharing
                           agreement or arrangement;

                  15.2.6   which will result in any member of the Group becoming
                           liable for any finder's fee, brokerage or other
                           commission in connection with this agreement;

                  15.2.7   to which any of the following provisions of the
                           Companies Act apply: section 317 (directors to
                           disclose interest in contracts), section 320
                           (substantial property transactions involving
                           directors, etc) and/or section 330 (general
                           restriction on loans etc to directors and persons
                           connected with them);

                  15.2.8   which, following Completion, would purport to bind
                           the Purchaser (or require any member of the Group to
                           procure compliance by the Purchaser); or

                  15.2.9   which restricts the freedom of any member of the
                           Group to provide or take goods and services to or
                           from any person or restricts the geographical area or
                           scope of business activities of any member of the
                           Group.

         15.3     So far as the Warrantors are aware, no Material Customer
                  Contract is invalid or ultra vires or was entered into by the
                  customer in violation of any applicable advertising or other
                  tendering or procurement rules or requirements.

                                                                              49
<PAGE>

         15.4     In relation to the Material Contracts:

                  15.4.1   no member of the Group is in default of its
                           obligations pursuant to a Material Contract;

                  15.4.2   the Warrantors are not aware that any party with whom
                           any member of the Group has entered into a Material
                           Contract is in default of its obligations pursuant to
                           such Material Contract;

                  15.4.3   no member of the Group has received written
                           notification of a breach or that its current action,
                           or failure to act, will with the passage of time or
                           notice, or both, give rise to a breach by it of its
                           obligations pursuant to a Material Contract.

         15.5     The Warrantors have set out in the Disclosure Letter all bids,
                  tenders or other negotiations or offers which are capable of
                  resulting or likely to result in any member of the Group
                  entering into any Customer Contracts of a kind described in
                  Warranty 15.2.

         15.6     There is annexed to the Disclosure Letter a schedule listing
                  all Material Contracts (other than Vehicle Leases disclosed
                  separately pursuant to paragraph 6.8).

         15.7     A list of the Material Customer Contracts (by revenues)
                  identifying each Material Customer Contract by name of
                  customer, location or locations served, billing address,
                  contract term, monthly amount, price and service requirements
                  are set out in the Disclosure Letter together with a list of
                  all Other Customer Contracts with such information in relation
                  to such contracts as is readily available to the Warrantors
                  from the records of the members of the Group.

         15.8     No written or, so far as the Warrantors are aware, oral
                  notification has been received by any member of the Group from
                  a customer who is a party to a Material Customer Contract
                  stating that such customer will cease dealing with the Company
                  as a result of the identity of the proposed purchaser
                  hereunder.

16.      LITIGATION, OFFENCES AND COMPLIANCE WITH STATUTES

         16.1     Otherwise than as claimant in the collection of debts arising
                  in the ordinary course of business (none of which exceed
                  (pound)5,000), no member of the Group nor any person for whose
                  acts or defaults a member of the Group may be vicariously
                  liable is claimant,

                                                                              50
<PAGE>

                  defendant or otherwise a party to any litigation, arbitration
                  or administrative proceedings which are in progress against or
                  concerning any member of the Group or any of its assets; no
                  member of the Group is being prosecuted for any criminal
                  offence and no governmental or official investigation or
                  inquiry concerning the business or officers of any member of
                  the Group or any of its assets is in progress and so far as
                  the Warrantors are aware there are no events or other facts or
                  circumstances which are likely to give rise to any such
                  proceedings, investigation or inquiry.

         16.2     So far as the Warrantors are aware, there are no complaints,
                  claims, disputes, investigations. disciplinary proceedings,
                  events or other facts or circumstances which in the reasonable
                  opinion of the Warrantors are likely to lead to any claim,
                  action, proceeding, suit, litigation, prosecution,
                  investigation, enquiry or arbitration involving any member of
                  the Group.

         16.3     There are no unfulfilled or unsatisfied judgments or court
                  orders outstanding against any member of the Group or which
                  may affect any of them.

         16.4     No distress, distrait, charging order, garnishee order,
                  execution or other process which a court or a similar body may
                  use to enforce payment of a debt has been levied or applied
                  for in respect of any asset of any member of the Group.

         16.5     No Group member nor any of its officers, agents or employees
                  (during the course of their duties in relation to the business
                  of the Group) has committed or omitted to do any act or thing
                  the commission or omission of which is or could be in
                  contravention of any statutory obligation or any other law of
                  the United Kingdom or any other country giving rise to any
                  fine, penalty, imprisonment, default proceedings or other
                  liability in relation to the business or officers of the Group
                  or any of its assets or any judgment or decision which would
                  materially affect the financial or trading position of the
                  Company.

17.      RESTRICTIVE AGREEMENTS, COMPETITION, MERGER CONTROL AND REGULATORY

         17.1     There are no agreements in force restricting the freedom of
                  the Company nor any Group member to provide and take goods and
                  services or to otherwise conduct its trade and business by
                  such means and from and to such persons as it may from time to
                  time think fit.

                                                                              51

<PAGE>

         17.2     The Company nor any Group member is not nor has it been party
                  to any agreement, arrangement, concerted practice or course of
                  conduct, or merger, acquisition or joint venture which
                  contravenes or contravened, is or was invalidated by, requires
                  or required notification or registration under, satisfies or
                  satisfied the criteria for review or investigation under, or
                  has been the subject of notification or registration under any
                  competition, anti-restrictive trade practice, anti-trust,
                  merger control, regulatory, monopoly fair trading or consumer
                  protection law or similar legislation.

         17.3     No Group member or any employee, consultant or director of a
                  Group member has received any process, notice or communication
                  (formal or informal) by or on behalf of any authority having
                  jurisdiction in competition, anti-trust, merger control,
                  regulatory, monopoly, fair trading, or similar matters (any
                  such body or person being referred to below as a "COMPETITION
                  AUTHORITY") in respect of any matter, whether or not the Group
                  member is or was a party to or is or was involved in such
                  matter and no Group member or any employee, consultant or
                  director of a Group member has received any indication (from
                  whatever source) that any such process, notice or
                  communication might be issued or that any person might make or
                  has made a complaint to a Competition Authority against any
                  Group member or any employee, consultant or director of a
                  Group member .

         17.4     No Group member or any employee, consultant or director of a
                  Group member has made any complaint or provided any
                  information or made any application for leniency or for a
                  no-action letter to any Competition Authority in respect of
                  any matter, whether or not the Group member is or was a party
                  to or is or was involved in such matter and no circumstances
                  exist or have existed which may give rise to the Group member
                  or any employee or consultant of a Group member making any
                  such complaint or providing any such information or making any
                  application for leniency or for a no-action letter.

         17.5     No director of a Group member has been or is the subject of a
                  Competition Disqualification Order within the meaning of
                  section 204 of the Enterprise Act 2002 or has given any
                  Competition Disqualification Undertaking within the meaning of
                  section 9B(2) of the Company Directors Disqualification Act
                  1986 and no such director is or has been the subject of any
                  investigation, process, notice or communication which may
                  result in such an Order being made or undertaking being
                  offered.

                                                                              52

<PAGE>

         17.6     No employee, consultant, or director of a Group member is or
                  at any material time was guilty of an offence under section
                  188 Enterprise Act 2002 (the "cartel offence") or of any
                  attempt, conspiracy or incitement to commit the cartel offence
                  or of aiding, or abetting a person to commit the cartel
                  offence.

         17.7     No employee, consultant or director of a Group member has been
                  convicted for of a cartel offence within the meaning of
                  section 188 Enterprise Act 2002 or, has been the subject of
                  any investigation, process, notice or communication relating
                  to a cartel offence.

         17.8     No Group member is or has been in receipt of any state aid
                  within the meaning of Article 87 of the EC Treaty or Article
                  61 of the Agreement on the European Economic Area.

         17.9     No notice has been received by the Company from any
                  governmental authority that the transaction contemplated by
                  this agreement violates any statute or regulation or that such
                  transaction requires regulatory consent or authorisation which
                  consent or authorisation has not been obtained.

18.      SUBSIDIARIES

         The Company has not since its incorporation had any subsidiary or
         subsidiary undertaking apart from the Subsidiaries and has not been the
         subsidiary of any other company and the Company is not the legal or
         beneficial owner of any shares of any other company other than the
         Subsidiaries listed in schedule 2.

19.      ADMINISTRATION

         19.1     The register of members and statutory books of each member of
                  the Group contain accurate records of those persons who are
                  shareholders of each member of the Group and of all other
                  information they are required to contain under the Companies
                  Act. Every document required by the Companies Acts to be filed
                  with the Registrar of Companies has been duly filed and
                  compliance has been and is being made by the Group with the
                  Companies Acts.

         19.2     The copy of the certificate of incorporation and memorandum
                  and articles of association (and each certificate of
                  incorporation on change of name) of each member of the Group
                  annexed to the Disclosure Letter is accurate and complete in
                  all respects, includes copies of all resolutions and documents
                  required to be incorporated

                                                                              53

<PAGE>

                  therein and fully sets out all rights attaching to each class
                  of the share capital of each member of the Group and the
                  register of members and other statutory books of each member
                  of the Group have been properly kept and contain a true,
                  accurate and complete record of all the matters which should
                  be dealt with therein and no notice or allegation that any of
                  the same is incorrect or should be rectified has been
                  received.

         19.3     Each member of the Group was incorporated in accordance with
                  its memorandum and articles of association and is validly
                  existing and is entitled to carry on the business now carried
                  on by it.

         19.4     All legal requirements in connection with the formation of
                  each member of the Group have been observed.

         19.5     All special resolutions passed by each member of the Group
                  have been disclosed to the Purchaser in writing.

         19.6     No member of the Group has at any time carried on any business
                  other than the business carried on at the date hereof.

         19.7     No member of the Group has given any power of attorney or any
                  other authority (express, implied or ostensible) which is
                  still outstanding or effective to any person to enter into any
                  contract or commitment or do anything on its behalf (other
                  than any authority of directors or employees to enter into
                  routine trading contracts in the normal course of their
                  duties).

         19.8     As regards the Company or any member of the Group, no order
                  has been made or petition presented or resolution passed for
                  its winding-up, no distress, execution or other process has
                  been levied on any of its assets, it has not suspended payment
                  and is not insolvent or unable to pay its debts within the
                  meaning of section 123 of the Insolvency Act 1986, no receiver
                  has been appointed or could be appointed by any person of its
                  business or assets or undertaking or any part thereof and
                  there is no unfulfilled or unsatisfied judgment, arbitration
                  award or court order or arbitration order outstanding against
                  it.

         19.9     In respect of each member of the Group, there are no
                  restrictions on the exercise of the powers of the Directors or
                  unusual requirements as to decorum or the manner of holding of
                  board meetings.

                                                                              54

<PAGE>

         19.10    The only Directors of each member of the Group are the persons
                  whose names are listed in respect of it in Schedule 2 and no
                  member of the Group has any alternate, de facto or shadow
                  directors nor any observer or other person entitled or
                  accustomed to attend at or receive notice of board meetings or
                  have any say or right to vote at board meetings.

         19.11    No share in the capital of any member of the Group has been
                  issued for a consideration other than cash.

         19.12    No share in the capital of any member of the Group has been
                  issued or transferred except in accordance with its memorandum
                  and articles of association. No member of the Group has
                  redeemed or purchased or agreed to redeem or purchase any of
                  its share capital or pass any resolutions or made any
                  capitalisation of reserves.

         19.13    No Director or secretary of any member of the Group is
                  interested in the share capital of any member of the Group.

         19.14    The Company has no interest in the shares or other securities
                  of any company which is not a Subsidiary and no interest in
                  any business other than that of the Company and has not agreed
                  to acquire any such shares, securities or interests or held
                  any such shares, securities or interest at any time.

20.      PERMITS AND ENVIRONMENTAL MATTERS

         20.1     The Disclosure Letter contains a complete and accurate list of
                  all material Permits held by each member of the Group as of
                  the date of this agreement (grouping the Permits listed by
                  Group member). These listed Permits are all the material
                  Permits that each Group member is required to hold or obtain
                  in order lawfully to conduct its business as it is currently
                  conducted and as it has been conducted during the 12 months
                  prior to Completion. For the avoidance of doubt, a Permit
                  shall not be considered material if the only penalty for any
                  one or more failures by any Group member to obtain the Permit
                  prior to the date of this agreement is a fine or fines not
                  exceeding(pound)5,000 in the aggregate .

         20.2     Except as set out in the Disclosure Letter:

                  20.2.1   all Permits listed in the Disclosure Letter are valid
                           and in full force and effect;

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<PAGE>

                  20.2.2   since 21 December 2000 each member of the Group has
                           conducted the Group's business in all material
                           respects in compliance with applicable Permits and is
                           currently conducting the Group's business in all
                           material respects in compliance with the applicable
                           Permits listed in the Disclosure Letter (provided
                           that any matter covered by the notification procedure
                           from the Environment Agency shall be disclosed under
                           paragraph 20.2.3 below);

                  20.2.3   since 21 December 2000 no Group member has received
                           any notification from any Relevant Authority
                           requiring any remedial or corrective action to be
                           taken in relation to a Permit (whether or not a
                           material Permit);

                  20.2.4   no remedial or corrective action that any Relevant
                           Authority has required any Group member to take since
                           21 December 2000 in relation to any Permit (whether
                           or not material) remains outstanding;

                  20.2.5   so far as the Warrantors are aware, there are no
                           events or other facts or circumstances which, if they
                           were known by a Relevant Authority, would be likely,
                           in the reasonable opinion of the Warrantors, to give
                           rise to a notification from the Relevant Authority
                           requiring a Group member to take any remedial or
                           corrective action in relation to a material Permit.

         20.3     Except as set out in the Disclosure Letter:

                  20.3.1   other than matters disclosed pursuant to warranty
                           20.2, since 21 December 2000 no Group member has
                           received any notice or other communication from any
                           Relevant Authority in respect of the business carried
                           on by any Group member or in relation to any property
                           at any time owned, occupied or controlled by any
                           Group member alleging any breach of or failure to
                           comply with Environmental Laws;

                  20.3.2   no notice or other communication (if any) set out in
                           the Disclosure Letter in respect of paragraph 20.3.1
                           (i) has resulted in the Relevant Authority issuing an
                           enforcement notice to or otherwise requiring remedial
                           or corrective action by a Group member or (ii) in the
                           reasonable opinion of the Warrantors is likely to
                           result in the Relevant Authority issuing an
                           enforcement notice to or otherwise requiring remedial
                           or corrective action by a Group member.

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                  20.3.3   so far as the Warrantors are aware, there are no
                           events which have occurred since 21 December 2000
                           which, in the reasonable opinion of the Warrantors,
                           if they were known by a Relevant Authority and
                           uncorrected, could give rise to the Relevant
                           Authority issuing an enforcement notice in relation
                           to Environmental Laws.

                                                                              57

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                                     PART 2

                                Property matters

TITLE

1.       The Properties comprise all the land and premises owned, occupied or
         otherwise used by the Group.

2.       Those of the Properties which are occupied or used by the Group in
         connection with any business carried on by the Group are so occupied or
         used by right of ownership or under lease or licence.

3.       The information contained in schedule 6 as to the current use and
         tenure of the Properties, the principal terms of the leases or licences
         under which the same are occupied or used by the Group and the
         principal terms of the tenancies or licences subject to and with the
         benefit of which the Properties are held is true and accurate.

4.       The relevant Group Company is the legal and beneficial owner of each of
         the Properties and the Group has good and marketable title to each of
         the Properties and all deeds and documents necessary to prove the title
         of the Group to the Properties are in the possession or under the
         control of the Group.

5.       The Group is in physical possession and actual occupation of the
         Properties on an exclusive basis and no right of occupation or
         enjoyment has been acquired or is in the course of being acquired by
         any third party or has been granted or agreed to be granted to any
         third party.

6.       So far as the Vendor's are aware the Vendors have Disclosed copies of
         all title deeds and documents relating to the Properties all of which
         have been properly stamped and, where necessary, duly registered and
         the documents of title to be delivered to the Purchaser on Completion
         will consist of original documents or properly marked and examined
         extracts.

7.       In the case of any leases of the Properties which are registerable at
         the Land Registry the relevant lease has been registered at the Land
         Registry.

8.       So far as the Vendor is aware the Properties are not subject to any
         restrictive covenants, easements, licences, restriction, overriding
         interests, options, charges, rights of pre-emption, rights of first
         refusal.

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STATUTORY OBLIGATIONS

9.       For the purposes of this paragraph the "PLANNING ACTS" means:

         the Town and Country Planning Act 1990

         the Planning (Listed Buildings and Conservation Areas) Act 1990

         the Planning (Hazardous Substances) Act 1990

         the Planning (Consequences Provisions) Act 1990

         the Planning and Compensation Act 1991

10.      Since 21 December 2000 no notice has been received by any member of the
         Group stating that it is in breach of any applicable statutory
         requirements with respect to the Properties and in particular (but
         without limitation) with requirements as to fire precautions and means
         of escape in case of fire and with requirements under the Public Health
         Acts, the Housing Acts, the Highways Acts, the Offices Shops and
         Railway Premises Act 1963, the Health and Safety at Work, etc. Act
         1974, the Factory Acts and the London Building Acts and the Planning
         Acts.

11.      Planning permission has been obtained, or is deemed to have been
         granted, for the purposes of the Planning Acts with respect to all
         existing development and use of each part of the Properties, and no
         such planning permission has been suspended or called in, and no
         application for planning permission is awaiting decision.

12.      Since 21 December 2000 building regulation consents have been obtained
         with respect to all development, alterations and improvements to the
         Properties.

13.      Compliance is being and since 21 December 2000 has been made with all
         planning permissions, orders and regulations issued under the Planning
         Acts and all building regulation consents and bye-laws in force with
         respect to the Properties.

14.      So far as the Vendors are aware all planning consents and permissions
         affecting the Properties have been satisfied or fully observed and
         performed up to the date of this agreement.

LEASEHOLD PROPERTIES

15.      There are no negotiations or proceedings pending in relation to rent
         reviews.

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16.      The Group has paid the rent and materially observed and performed the
         covenants on the part of the tenant and the conditions contained in
         each of the leases (which expression includes underleases) under which
         any of the Properties are held.

17.      No notice has been received by the Company stating that it has failed
         to observe and perform the covenants on the part of the lessee and the
         conditions contained in any leases (which expression includes
         underleases) under which any of the Properties are held.

18.      The Vendors are not aware of any notice having been served by a
         landlord or superior landlord stating that the Company is operating
         without the necessary licences, consents and approvals required from
         the landlords and any superior landlords under any leases of any of the
         Properties have been obtained, and so far as the Vendors are aware no
         notice has been received stating that the covenants on the part of the
         tenant contained in such licences, consents and approvals have not been
         duly performed and observed.

19.      There is no outstanding, unobserved or unperformed obligation necessary
         to comply with any notice given by or on behalf of the landlord under
         any lease of the Properties.

20.      Since 21 December 2000 there have been and are no disputes with any
         landlord.

21.      So far as the Vendors are aware no notice has been served on the
         Company the contents of which are likely to lead to a dispute.

TENANCIES

22.      The Properties are held subject to and with the benefit of the
         tenancies (which expression includes subtenancies) as set out in
         schedule 6.

23.      No member of the Group is aware of any material or persistent breaches
         of covenant by a tenant of any of the Properties including the
         covenants to pay rent and no guarantor or surety has been released
         expressly or by implication.

24.      Save as set out in the Disclosure Letter the Company does not have any
         continuing liability in respect of any other property formerly occupied
         by the Company either as original contracting party or by virtue of any
         direct covenant having been given on a sale or assignment to the
         Company or as a guarantor of the obligations of any other person in
         relation to such property.

25.      The Properties are not subject to any outgoings, other than general
         rates, water rates and insurance premiums and, in the case of leasehold
         real property, rent and service charges.

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<PAGE>

26.      No notice relating to the use and enjoyment of the Properties has been
         received or given so far as the Vendors are aware or so far as the
         Vendors are aware is likely to be received or given in any
         circumstances.

27.      All the Properties enjoy access and egress over roads which have been
         adopted by the appropriate highway authority and are maintainable at
         the public expense. The Properties drain into public sewers and is
         served by water, electricity and gas utilities, pipes, sewers, wires,
         cables, conduits and other conducting media and connect to the mains

28.      No outstanding notices, complaints or requirements have been issued or
         made (whether formally or informally) by any competent authority or
         undertaking exercising statutory or delegated powers in respect of the
         Properties or the user applicable to the Properties.

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                                     PART 3

                                    PENSIONS

1.       Other than the Schemes, there are not any (nor have there ever been
         any) schemes, agreements, arrangements, customs or practices for, and
         (other than in respect of the Schemes) there are not any liabilities in
         respect of, the payment of or contribution towards any Specified
         Benefits for the benefit of any Specified Person and/or any Specified
         Dependant, and no proposal, promise or assurance to establish, continue
         or improve any such scheme, agreement or arrangement has been
         communicated to any Specified Person and/or any Specified Dependant.

2.       Complete and accurate material details of the Schemes have been
         disclosed to the Purchaser including (without limitation):

         2.1      For each of the GPP and the Stakeholder Scheme, all
                  explanatory booklets, announcements and other communications
                  provided to each Specified Person and/or each Specified
                  Dependant;

         2.2      For the Death in Service Scheme:

                  2.2.1    the document that established the scheme;

                  2.2.2    the current rules of the scheme;

                  2.2.3    any amendments to the current rules of the scheme;

                  2.2.4    any documents on the participation of companies in
                           the scheme;

                  2.2.5    full details of the current trustees of the scheme
                           and any documents on the change of trustees of the
                           scheme; and

                  2.2.6    all explanatory booklets, announcements and other
                           communications provided to each Specified Person
                           and/or each Specified Dependant.

3.       Complete and accurate details of each Specified Person who is an active
         member of any of the Schemes are listed in the Disclosure Letter and no
         other Specified Person is a member of any of the Schemes. The details
         listed in the Disclosure Letter include full information on the
         contributions currently paid by each Group member and by each Specified
         Person to any of the Schemes.

4.       All contributions due to be paid to each of the Schemes by each Group
         member and by each Specified Person, all insurance premiums due to be
         paid to each of the Schemes by each Group member, and all fees and
         expenses in relation to each of the Schemes due to be paid by

                                                                              62

<PAGE>

         each Group member have been paid as they fall due. Full details of any
         contributions and/or premiums that will be due within the next month,
         and of any fees and expenses in respect of which work has been
         undertaken but for which payment is not yet due, are set out in the
         Disclosure Letter.

5.       The Death in Service Scheme is an exempt approved scheme within the
         meaning of section 592 of Taxes Act and has been since its
         commencement. There is, as far as the Vendors are aware, no reason why
         such approval may be withdrawn.

6.       The GPP and the Stakeholder Scheme are each approved for the purposes
         of Chapter IV of Part XIV of Taxes Act and have been since their
         commencement. There is, as far as the Vendors are aware, no reason why
         such approval may be withdrawn.

7.       No Specified Person is in contracted out employment as defined in
         section 7 of the Pension Schemes Act 1993 by reference to any of the
         Schemes.

8.       There are no actions, proceedings, claims or complaints against any
         Group member in relation to any of the Schemes, or, so far as the
         Vendors are aware, against any of the Schemes, pending or threatened by
         or in respect of any Specified Person or any Specified Dependant
         relating to any act, event, omission or other matter arising out of or
         in connection with any of the Schemes.

9.       With effect from 8 October 2001, each Group member has designated a
         registered stakeholder pension scheme in accordance with the
         requirements of the Welfare Reform and Pensions Act 1999 (and
         Regulations made under it) in relation to all of its "relevant
         employees" (as defined for the purposes of that Act).

10.      Each Specified Person who is entitled to membership of any of the
         Schemes (whether under the Scheme's documentation, under any contract
         of employment or by reason of any applicable law or implication of law
         or otherwise) was informed in writing of such entitlement on or before
         the date he was first entitled to join.

11.      No Group member has discriminated at any time against any Specified
         Person or any Specified Dependant in respect of any of the Schemes
         contrary to the Equal Treatment Requirements.

12.      There has at all times been in place in respect of the GPP a record of
         the direct payment arrangements as required by section 111A of the
         Pension Schemes Act 1993 and all contributions have been paid in
         accordance with such records.

13.      All benefits under the Death in Service Scheme are fully insured with
         an insurance company that is carrying on ordinary long-term insurance
         business in the European Union, and, so far

                                                                              63

<PAGE>

         as the Vendors are aware, there are no grounds on which such insurer
         could avoid liability for full payment of any such benefits.

14.      Each Group member has complied with all of its material obligations in
         respect of each of the Schemes, and, as far as the Vendors are aware,
         each of the Schemes has been operated and administered in accordance
         with all applicable laws and regulatory requirements.

15.      No Group member is liable to provide or contribute towards Specified
         Benefits as a result of the application of the Transfer of Undertakings
         (Protection of Employment) Regulations 1981 (SI 1981/1794) to any
         transfer to any Group member of an undertaking.

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<PAGE>

                                   SCHEDULE 4

                                    TAXATION

                                     PART 1

                         DEFINITIONS AND INTERPRETATION

1.       In this schedule the following words and expressions shall (except
         where the context otherwise requires) have the following meanings:

         "ACCOUNTS RELIEF" means a Relief which has been treated as an asset in
         the Completion Accounts or which was taken into account in computing
         (and so reducing) any provision for Taxation which appears in the
         Completion Accounts or which has resulted in no provision for Taxation
         in the Completion Accounts;

         "ACTUAL TAX LIABILITY" means any liability of the Company to make a
         payment of or increased payment of Tax;

         "CLAIM FOR TAX" means any claim, notice, demand, assessment, letter or
         other document issued or any action taken by or on behalf of any person
         (including the Company) or Tax Authority whether before or after the
         date hereof from which it appears that the Company has or may have a
         Tax Liability;

         "EFFECTIVE TAX LIABILITY" shall have the meaning given in paragraph 3
         of this part 1;

         "EVENT" means any act, omission, event or transaction (including the
         execution of, and Completion of, this Agreement), action or omission
         and includes further (without limitation) the death of any person; a
         company becoming, being or ceasing to be a member of a group of
         companies (however defined) for the purposes of any Tax and references
         to an Event occurring on or before Completion shall be deemed to
         include any combination of two or more Events only the first of which
         shall have occurred on or before Completion where the Event or Events
         occurring after Completion is or are:

         (1)      the completion of the disposal of any asset which was
                  contracted to be sold on or before Completion or the
                  performance of any other act by virtue of an agreement entered
                  into on or before Completion;

         (2)      the satisfaction of a condition to which the disposal of any
                  asset pursuant to a contract entered into on or before
                  Completion is subject (in which case the disposal shall, for

                                                                              65

<PAGE>

                  the purposes of this Agreement be treated as having been made
                  before Completion and any Taxation Liability arising from such
                  disposal shall be treated as having arisen before Completion);

         (3)      the issue or making of any Tax Claim;

         (4)      the bringing into the United Kingdom of any document executed
                  prior to Completion outside the United Kingdom or the
                  presentation of any document executed prior to Completion for
                  stamping;

         (5)      the exercise of any option granted on or before Completion; or

         (6)      the death of any person.

         "GROUP RELIEF" means any of the following:

         (1)      group relief capable of being surrendered or claimed pursuant
                  to Chapter IV Part X of the ICTA as amended and supplemented
                  by the Finance Act 1998;

         (2)      advance corporation tax capable of being surrendered or
                  claimed pursuant to regulation 15 of the Corporation Tax
                  (Treatment of Unrelieved Surplus Advance Corporation Tax)
                  Regulations 1999;

         (3)      a tax refund capable of being surrendered or claimed under
                  section 102 of the Finance Act 1989;

         "POST COMPLETION RELIEF" means a Relief to the extent that it arises by
         reference to an Event occurring after Completion;

         "PURCHASER'S GROUP" means the Purchaser and any companies within the
         same group or association of companies as the Purchaser for the
         purposes of the relevant Tax Statute;

         "RELIEF" means any loss, relief, allowance, credit deduction, exemption
         or set-off against income or profits in calculating profits for the
         purposes of any Tax or against or in respect of Tax or any right to
         repayment of Tax;

         "TAXATION" or "TAX" means any form of taxation, tariff levy, impost,
         duty, charge, contribution, deduction or withholding in each case in
         the nature of taxation whenever imposed, collected or assessed by, or
         payable to, a Tax Authority and any penalty, charge or interest
         relating to any of the above or to any reporting or filing obligation
         in respect of any of

                                                                              66

<PAGE>

         the above and any liability to make a payment by way of indemnity,
         damages or management charger connected in any way with any taxation
         (in all cases, regardless of whether such taxes, penalties, charges or
         interest are directly or primarily chargeable against or attributable
         to the Company or any other person and regardless of whether the
         Company has, or may have, any right of reimbursement against any other
         person) but excluding the Uniform Business Rate, Council Tax, water
         rates and other local authority rates or charges;

         "TAX AUTHORITY" means the Commissioners of Inland Revenue, the
         Commissioners of Customs and Excise, or any authority or body, whether
         of the United Kingdom or elsewhere and whether national or otherwise
         having the power or authority or other function in relation to Tax;

         "TAX CLAIM" means a claim under any Tax Warranty or the Tax Covenant;

         "TAX LIABILITY" means any Actual Tax Liability, Effective Tax Liability
         or other liability of the Company which is relevant for the purposes
         this schedule;

         "TAX STATUTE" means any primary or secondary statute, instrument,
         enactment, order, law, by-law or regulation making any provision for or
         in relation to Tax;

         "TAXES ACT" means the Income and Corporation Taxes Act 1988;

         "VAT" means Value Added Tax.

2.       In this schedule "COMPANY" shall in addition to the Company include
         every Subsidiary to the intent and effect that the provisions of this
         schedule shall apply to, and be given in respect of, each Subsidiary as
         well as the Company.

3.       In this schedule an "EFFECTIVE TAX LIABILITY" shall mean the following:

         3.1      the loss in whole or in part of any Accounts Relief;

         3.2      the set-off of any Post Completion Relief or any Accounts
                  Relief against any Tax or against income, profits or gains in
                  circumstances where, but for such utilisation or set-off, an
                  Actual Tax Liability would have arisen in respect of which the
                  Warrantors would have been liable to make a payment to the
                  Purchaser under this schedule.

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<PAGE>

4.       The value of an Effective Tax Liability shall be as follows:

         4.1      where the Effective Tax Liability involves the
                  non-availability of any Accounts Relief:

                  4.1.1    if the Accounts Relief was not or is not a right to
                           repayment of Tax, the amount of Tax which would have
                           been saved but for the loss of the Accounts Relief;
                           or

                  4.1.2    if the Accounts Relief was or is a right to repayment
                           of Tax, the amount of the right which is lost;

         4.2      where the Effective Tax Liability involves the set-off of a
                  Post Completion Relief or an Accounts Relief, the value of the
                  Effective Tax Liability shall be the amount of Tax saved by
                  such set-off.

5.       Any reference to a Tax Liability in respect of income, profits or gains
         earned, accrued or received shall include a Tax Liability in respect of
         income, profits or gains deemed to have been or treated or regarded as
         earned, accrued or received and any reference to Tax Liability on the
         happening of any Event shall include Tax Liability where such Event
         (for the purposes of Tax) is deemed to have occurred or is treated or
         regarded as having occurred.

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<PAGE>

                                     PART 2

                                 TAX WARRANTIES

TAX RETURNS AND COMPLIANCE

1.       The Company has at all times submitted all information, notices,
         accounts, statements, reports, computations and relevant Tax returns to
         the relevant Tax Authorities by the requisite dates and are neither the
         subject of any dispute nor so far as the Warrantors are aware are
         likely to become the subject of any material dispute.

2.       The Company has paid or set off with a Relief every Tax Liability which
         has fallen due.

3.       The Company has properly operated the PAYE and National Insurance
         contributions systems and made all deductions, withholdings and
         retentions required to be made in respect of any actual or deemed
         payment made or benefit provided on or before Completion and has to the
         extent required by law accounted for all such deductions, withholdings
         and retentions.

4.       The Company has maintained and has in its possession, and under its
         control, all records and documentation that it is required by any Tax
         Statute to maintain and preserve.

5.       In the last three years the Company has not been and, so far as the
         Warrantors are aware, is not likely to be subject to any investigation
         or non-routine audit or visit by any Tax Authority.

6.       The Company is not, nor, so far as the Warrantors are aware, will it
         become, liable to pay, to reimburse or to indemnify any person
         (including a Tax Authority) in respect of the Taxation liability of a
         third person whether or not as a consequence of that third person
         failing to discharge that liability.

7.       No transaction has been entered into by the Company in respect of which
         the Company is required to make a specific return, provide information,
         or make any claim for relief, election, appeal, disclaimer or
         application to postpone the payment of Taxation to any Tax Authority
         and in respect of which the time for making such application will
         expire on or after Completion.

8.       No Tax Authority has agreed to operate any special arrangement (being
         an arrangement which is not based on a strict and detailed application
         of the relevant legislation, generally published statements of practice
         or generally published extra-statutory concessions) in relation to any
         Company's affairs.

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<PAGE>

9.       Each Company has complied with all notices served on it by any Tax
         Authority and no such notice remains outstanding.

10.      No Company has been a party to a transaction in respect of which a
         consent, clearance or claim for relief from any Tax Authority was
         required.

GENERAL PROVISIONS FOR TAX

11.      To the extent required by generally accepted accounting principles,
         provision or reserve was made in the Accounts in respect of every Tax
         Liability including for the avoidance of doubt any deferred tax
         liability for which the Company at the Accounts Date was or may have
         been liable or accountable whether or not such Tax Liability was or is
         a primary liability of the Company, and whether or not the Company had,
         has or may have any right of reimbursement against any other person.

BASE VALUES AND ACQUISITION COSTS

12.      No Company owns nor has agreed to acquire or dispose of any asset the
         consideration for the acquisition or disposal of which was or will be
         in excess of its market value.

DISTRIBUTIONS AND PAYMENTS

13.      Any interest or other amount payable, or which may become payable, in
         respect of any security issued by any Company and remaining in issue at
         today's date falls or would fall under legislation currently in force
         to be treated as a distribution under section 209 (Meaning of
         "distribution") or section 418 (Distribution to include certain
         expenses of close companies).

14.      The Company has not repaid, or agreed to repay, or redeemed, or agreed
         to redeem, or purchased or agreed to purchase or granted an option
         under which it may become liable to purchase, any shares of any class
         of its issued share capital, or capitalised or agreed to capitalise, in
         the form of debentures or redeemable shares, any profits or reserves of
         any class or description; and the Company has not issued or agreed to
         issue any share capital or security as paid up otherwise than by the
         receipt of new consideration (within the meaning of Part VI ICTA) or
         passed or agreed to pass any resolution to do so.

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<PAGE>

TAX RESIDENCE AND STATUS

15.      For the purposes of United Kingdom Taxation the Company has been
         resident in the United Kingdom at all times since its incorporation and
         will be so resident at Completion, and the Company is not, nor has ever
         been resident in any other jurisdiction for any Taxation purpose.

16.      The Company has not, nor at any time has had, a permanent establishment
         or other presence for Taxation purposes in any jurisdiction other than
         the United Kingdom.

CORPORATION TAX ON CHARGEABLE GAINS

17.      Since the Accounts Date the Company has not entered into or been a
         party to a transaction which will or may give rise to a liability to
         corporation tax on chargeable gains other than transactions entered
         into in the ordinary course of business of the Company.

18.      No liability has fallen on any Company under section 179 TCGA (Company
         ceasing to be a member of a group) and no Company owns any asset in
         respect of which any such liability may arise.

19.      No Company has entered into or will, on or before Completion, enter
         into an election under section 179A TCGA (Re-allocation within group of
         grain or loss accruing under section 179).

20.      No Company has made any claim under sections 152 to 156 (Roll-over
         relief on replacement of business assets), 175 (Replacement of business
         assets by members of a group) or 247 (Roll-over relief on compulsory
         acquisition) TCGA or under any other provision which could affect the
         amount of any gain accruing or treated as accruing on a disposal of any
         asset by any Company; and no claim has been made or is capable of being
         made by any other company which affects or could affect the amount of
         value of the consideration for the acquisition of any asset by any
         Company which is to be taken into account in calculating any gain on a
         subsequent disposal.

CLOSE COMPANIES

21.      The Company is a close company as defined in section 414 of the Taxes
         Act.

22.      No distribution within section 418 ("distribution" to include certain
         expenses of close companies) has been made by the Company, and no such
         distribution will be made prior to Completion.

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<PAGE>

23.      No loan, advance, release, write-off, consideration or transaction
         within sections 419 to 422 (Loans to participators) (inclusive) has
         been made, given or effected by the Company.

24.      The Company has not made a transfer of the kind referred to in section
         125 TCGA (Shares in close company transferring assets at an
         undervalue).

INHERITANCE TAX

25.      Neither the assets nor the shares of the Company are, or may be,
         subject to any charge by virtue of section 237 of the Inheritance Tax
         Act 1984 and no person has, or may have the power under section 212 of
         the Inheritance Tax Act 1984 to raise any capital transfer tax or
         inheritance tax by sale or mortgage of, or a charge on any of the
         Company's assets or shares.

TAX AVOIDANCE

26.      The Company has not entered into or been a party to any transaction,
         series of transactions, scheme or arrangement which will for any
         Taxation purpose be disregarded, reconstructed or otherwise treated as
         being different from the transaction, series of transactions, scheme or
         arrangement as contemplated or intended by the Company.

27.      No Tax Authority has investigated any transaction, series of
         transactions, scheme or arrangement involving any Company with a view
         to applying section 770A (Provision not at arm's length) and Schedule
         28AA (Provision not at arm's length), or equivalent legislation or
         legal principles in any other country, and since 1 April 2004 no
         circumstances exist which could so far as the Vendors are aware result
         in any liability or increased liability of any Company to Taxation if
         such investigation were undertaken.

28.      In relation to section 770A (Provision not at arm's length) and
         Schedule 28AA (Provision not at arm's length), since 1 April 2004 each
         Company has complied with its obligations under the corporation tax
         self assessment regime and in particular, but without prejudice to the
         above, has complied with, and prepared and retained any relevant
         records referred to in, the guidance published by the Inland Revenue in
         Tax Bulletin no. 37 of October 1998.

GROUPS

29.      No Company:

         29.1     surrendered any amounts of or by way of group relief, advance
                  corporate tax or tax refund;

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         29.2     claimed any amounts of or by way of group relief, advance
                  corporation tax or tax refund;

         29.3     made any payments for or repayments of group relief,
                  surrendered advance corporation tax or tax refund; or

         29.4     entered into any agreements or arrangements relating to group
                  relief or the surrender of either advance corporation tax or
                  tax refunds,

         other than to, from or with another company.

STAMP DUTY/STAMP DUTY LAND TAX

30.      Each document in the possession or under the control of the Company, or
         to the production of which the Company is entitled and on which the
         Company relies or may rely on as purchaser or lessee and which in the
         United Kingdom or elsewhere requires any stamp or mark to denote that:

         30.1     any duty, tax or fee required to be paid by law has been paid;
                  or

         30.2     a duty, tax or fee referred to in paragraph 30.1 is not
                  required to be paid, or that the document in question or the
                  Event evidenced by it qualifies from a relief or exemption
                  from such duty, tax or fee; or

         30.3     the document has been produced to the appropriate authority

         has been properly stamped or marked as appropriate and no such document
         which is outside the United Kingdom would attract stamp duty if it were
         to be brought into the United Kingdom.

31.      Within the three years ending on the date of this agreement no Company
         has been associated for the purposes of paragraph 1 of Schedule 7, FA
         2003 (Group Relief) with any other company (other than a Company) which
         has been a party to any transaction for which any claim for relief or
         exemption under that paragraph has been made.

32.      Within the three years ending on the date of this agreement no Company
         has had control of, or been under the control of or under the same
         control as, any other company (other than a Company) which has been a
         party to any transaction for which any claim for relief or exemption
         has been made under Paragraphs 7 and 8 of Schedule 7 FA 2003
         (Reconstruction

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         Relief and Acquisition Relief). For the purposes of this warranty
         "control" has the meaning given in section 416 (Meaning of "associated
         company" and "control").

33.      The Company has not entered into a contract for a land transaction on
         which there will be an outstanding balance of stamp duty land tax to
         pay on completion of the land transaction.

34.      A land transaction return (as defined by section 76, FA 2003), has been
         promptly and correctly filed with the Inland Revenue in respect of all
         notifiable land transactions and registered in the Register, in each
         case, where required to be done or delivered by the Company, and, for
         the purposes of this warranty, "Register" means each and any of the
         Chief Land Registrar of England and Wales, the Keeper of the Registers
         of Scotland, or the Land Registry of Northern Ireland or in the
         Registry of Deeds for Northern Ireland.

35.      The Company has not entered into any land transaction where the whole
         or part of the chargeable consideration for the transaction is
         uncertain, contingent or unascertained.

INTANGIBLE FIXED ASSETS

36.      The Company does not own any of the intangible fixed assets for the
         purposes of Schedule 29 FA 2002 (Gains and losses of a company from
         intangible assets).

VALUE ADDED TAX

37.      The Company is registered as a taxable person for the purposes of VAT.

38.      The Company has complied in all respects with all Tax Statutes relevant
         to VAT and guidance published by all relevant Tax Authorities in any
         form whatsoever and has made and obtained full, complete, correct and
         up-to-date records and invoices and other documents appropriate or
         requisite for the purposes of such Tax Statutes and guidance.

39.      The Company:

         39.1     is not in arrears with any payment or returns required under
                  any legislation relating to VAT and is not liable to any
                  abnormal or non-routine payment, or any forfeiture or penalty
                  or default surcharge, or to the operation of any penal
                  provision or to pay any interest relating to VAT;

         39.2     has not been required by Customs and Excise to give security
                  under any legislation relating to VAT; and

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         39.3     does not operate any special scheme or method authorised under
                  the VAT Regulations 1995/2518 or agreed with HM Customs and
                  Excise.

40.      No act or transaction has been effected as a result of which the
         Company is or may be held liable for any VAT chargeable against any
         other company; and the Company is not nor has agreed to become an
         agent, manager or factor for the purposes of VATA of any person.

41.      The Company does not have an interest in any land or buildings in
         relation to which an election has been made, either by the Company or
         by any other person, to waive exemption from VAT under the provisions
         of Schedule 10 VATA (Buildings and land).

42.      The Company does not have any interest in any building or civil
         engineering work which is either incomplete at the date of this
         agreement or was completed for the purposes of Group 1, Schedule 9 VATA
         (Exemptions: land) less than three years prior to the date of this
         agreement.

43.      The Company does not own any item to which Part XV of the Value Added
         Tax Regulations 1995 (Capital goods scheme) applies and in respect of
         which the period of adjustment will not have expired on or before
         Completion.

CAPITAL ALLOWANCES

44.      Since the Accounts Date the Company has not done, or omitted to do, or
         agreed to do or permitted to be done, any act (other than the sale of
         an asset at a price equal to its market value) as a result of which any
         disposal value has been or may be required to be brought into account,
         and there has not been and there will not be any recovery from any
         Company of excess relief, under the CAA.

45.      Since the Accounts Date no Company has done, or has omitted to do, or
         agreed to do, or permitted to be done, any act, or suffered any
         occurrence, as a result of which any balancing charge or allowance has
         arisen or may arise under CAA or other legislation relating to capital
         allowances.

46.      No asset, expenditure on which by any Company has qualified for a
         capital allowance under Part 3 CAA (Industrial building allowances),
         has at any time since that expenditure was incurred been used otherwise
         than as an industrial building or structure for the purposes of that
         Part.

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                                     PART 3

                                  TAX COVENANT

1.       COVENANT

         The Warrantors severally covenant to pay to the Purchaser in the
         proportions set opposite the name of the relevant Warrantor in column 5
         of schedule 1 an amount equal to:

         1.1      any Actual Tax Liability which arises by reference to an Event
                  occurring (or deemed to occur) or income, profits or gains
                  earned, accrued or received (or deemed to be earned, accrued
                  or received) on or before Completion;

         1.2      the value of any Effective Tax Liability;

         1.3      any liability for Inheritance Tax which:

                  1.3.1    has at Completion given rise to a charge on any of
                           the shares or assets of the Company or given rise to
                           a power to sell, mortgage or charge any of the shares
                           or assets of the Company; or

                  1.3.2    after Completion gives rise to a charge on any of the
                           shares or assets of the Company or gives rise to a
                           power to sell, mortgage or charge any of the shares
                           or assets of the Company and which arises as a result
                           of a transfer of value occurring or being deemed to
                           occur on or before Completion (whether or not in
                           conjunction with the death of any person whenever
                           occurring);

         1.4      any amount required to be accounted under the pay as you earn
                  system by the Purchaser or the Company and any national
                  insurance contributions (together in each case, with any fine,
                  penalty and interest relating to the same) as a result of a
                  sale of the Shares by the Vendors or any of them pursuant to
                  this agreement;

         1.5      any Tax Liability which is primarily the liability of another
                  person (the "PRIMARY PERSON") for which the Company is liable
                  in consequence of:

                  1.5.1    the Primary Person failing to discharge such Tax
                           Liability; and

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                  1.5.2    the Company at any time before Completion:

                           1.5.2.1  being a member of the same group of
                                    companies as the Primary Person; or

                           1.5.2.2  having control of, being controlled by, or
                                    being otherwise connected with, the Primary
                                    Person or being controlled by the same
                                    person as the Primary Person,

                  for any Tax purpose

         1.6      any liability of the Company arising from an obligation to
                  repay the whole or any part of any payments received for Group
                  Relief (other than from another Company) pursuant to an
                  arrangement entered into by the Company on or before
                  Completion.

         1.7      any amount paid (all payable to the extent it is not yet
                  actually paid) by the Company for a surrender to it of Group
                  Relief in respect of any period ended on or prior to
                  completion, to the extent that such Group Relief is lost,
                  cancelled or disallowed or otherwise proves to be unavailable
                  to set off against income, profits or gains, or tax, for the
                  period in respect of which the surrender is made.

         1.8      the reasonable professional costs properly incurred by the
                  Purchaser or the Company in connection with a successful claim
                  under this part 3 of this schedule.

2.       DEDUCTIONS FROM PAYMENTS

         2.1      All sums payable by the Warrantors under any claim under the
                  Tax Covenant shall be paid gross, free and clear of any rights
                  of counterclaim or set-off and without any deduction or
                  withholding unless the deduction or withholding is required by
                  law in which event the Warrantors shall pay such additional
                  amount as shall be required to ensure that the net amount
                  received and retained (free of any liability) by the Purchaser
                  will equal the full amount which would have been received by
                  it had no such deduction or withholding been required,
                  provided that this paragraph shall not apply to any interest
                  payable under paragraph 5.4 of part 4 of this schedule.

         2.2      If any amount payable under any claim under the Tax Covenant
                  is subject to Tax, the amount so payable shall be grossed up
                  by such amount as will ensure that after deduction of the Tax
                  in question there shall be left an amount equal to the amount
                  that would otherwise be payable under the claim, save that
                  this paragraph shall not apply

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                  to the extent that such Tax arises or is increased as a
                  consequence of any voluntary act of the Purchaser.

         2.3      If, at any time after any increased payment is made by the
                  Warrantors as a consequence of the application of this
                  paragraph 2, the Purchaser receives or is granted a credit
                  against or remission from any Taxation payable by it which it
                  would not otherwise have received or been granted but for such
                  increased payment, the Purchaser shall, to the extent that it
                  can do so without prejudicing the retention of the amount of
                  such credit or remission, reimburse the Warrantors with such
                  amount as the auditors of the Company for the time being
                  determine and certify (at the cost and expense of the
                  Warrantors) to be such portion of such credit or remission as
                  shall leave the Purchaser (after such reimbursement) in no
                  worse a position than it would have been in had the
                  circumstances given rise to the increased payment not in fact
                  arisen. Such reimbursement shall be made not later than 10
                  business days after the Purchaser receives notice from the
                  auditors of a certification under this paragraph 2.3.

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                                     PART 4

                            LIMITATIONS AND PROCEDURE

1.       LIMITATIONS

         The Warrantors shall not be liable under any Tax Warranty or any claim
         under the Tax Covenant in respect of any Tax Liability to the extent
         that:

         1.1      provision, reserve or allowance has been made in the
                  Completion Accounts in respect of any such Tax Liability or to
                  the extent that the payment or discharge of any such Tax
                  Liability has been taken into account in the Completion
                  Accounts;

         1.2      it arises or is increased by the delay or default of the
                  Purchaser or the Company after Completion to pay any amount of
                  Tax to a Tax Authority;

         1.3      such liability arises or is increased as a result of any
                  change in law (primary or delegated), any accounting practice
                  or principle or the published practice of a Tax Authority
                  occurring after the Completion Date (but not announced before
                  that date);

         1.4      such liability arises or is increased as a result of any
                  voluntary act, transaction or omission of the Company or the
                  Purchaser after Completion where the act or transaction was:

                  1.4.1    not required by any legislation or other statutory
                           requirement in force at Completion;

                  1.4.2    not pursuant to a legally binding obligation entered
                           into by the Company on or before Completion;

                  1.4.3    not the presentation for stamping of any document
                           which was entered into prior to Completion; or

                  1.4.4    otherwise than in the ordinary course of business of
                           the Company as carried on at Completion;

         1.5      the liability would not have arisen or would have been reduced
                  or eliminated but for a failure or omission after Completion,
                  on the part of the Company or the Purchaser, to make any
                  claim, election, surrender or disclaimer or to give any notice
                  or consent or to do any other thing under any enactment or
                  regulation relating to Tax the making,

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<PAGE>

                  giving or doing of which was taken into account in computing
                  the provision for Tax in the Completion Accounts and details
                  of such claim, election, surrender, disclaimer, notice or
                  consent were provided to the Purchaser in reasonable time to
                  enable such claim, election, surrender, disclaimer, notice,
                  consent or thing to be made, given or done;

         1.6      the liability is increased as a result of either the Company
                  or the Purchaser failing to act in accordance with the
                  provisions of paragraph 4 of this part of this schedule;

         1.7      the liability arises or is increased as a result of any change
                  after Completion in the bases, methods or policies of
                  accounting of the Purchaser or the Company save where such
                  change is made to comply with a generally accepted accounting
                  principles, the published practice of any Tax Authority, law
                  or rule of any regulatory authority or body in force at the
                  Completion Date;

         1.8      such liability arises as a result of:

                  1.8.1    any voluntary disclaimer by the Company after
                           Completion of the whole or part of any capital
                           allowances claimed before Completion or the
                           entitlement to which was taken into account in
                           preparing the Completion Accounts,

                  1.8.2    the revocation or revision by the Company after
                           Completion of any Relief claimed or the entitlement
                           to which was taken into account in preparation of the
                           Completion Accounts,

         1.9      the income, profits or gains in respect of which the liability
                  arises were actually earned, accrued or received by the
                  Company before Completion but were not reflected in the
                  Completion Accounts where the cost of determining when income,
                  profits or gains were received and/or if they were reflected
                  in the Completion Accounts is borne solely by the Vendors;

         1.10     any Relief, other than an Accounts Relief or a Post Completion
                  Relief, is available to the Company (including by way of group
                  relief from another Company) to relieve or mitigate that Tax
                  Liability;

         1.11     the liability has been satisfied without cost or expense to
                  the Company (otherwise than by the Company, the Purchaser or
                  any member of the Purchaser's Group);or

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<PAGE>

         1.12     such Tax Liability arises or is increased as a consequence of
                  any reduced entitlement to the small companies rate of
                  corporation tax (section 13 of the Taxes Act) where such
                  reduced entitlement results from the Company becoming
                  associated with any company or companies at or following
                  Completion.

2.       The Warrantors shall not be liable in respect of any breach of the Tax
         Warranties if, and to the extent that, the loss incurred is or has been
         included in any claim under the Tax Covenant which has been satisfied
         in full in cleared funds nor shall the Warrantors be liable in respect
         of a claim under the Tax Covenant if, and to the extent that, the
         amount claimed is or has been included in a claim for breach of the Tax
         Warranties which has been satisfied in full.

3.       DURATION AND EXTENT

         3.1      Paragraphs 1.1, 1.3, 1.4 and 6 of schedule 8 of this agreement
                  shall apply in respect of any Tax Claim (with all necessary
                  changes) as if the same were set out and repeated in this part
                  4 of this schedule.

         3.2      Paragraph 1.2 of schedule 8 of this agreement shall apply in
                  respect of any Warranty Claim (with all necessary changes) as
                  if the same were set out and repeated in this part 4 of this
                  schedule.

4.       CONDUCT OF CLAIMS

         4.1      If the Purchaser or the Company become aware of any Claim for
                  Tax which gives or may give rise to a Tax Claim, the Purchaser
                  shall, or shall procure that the Company shall, as soon as
                  practicable (and in any event, in the case of the receipt of a
                  Claim for Tax consisting of any assessment or demand for Tax
                  or for which the time for response or appeal is limited, not
                  less than five clear Business Days prior to the day on which
                  the time for response or appeal expires) give written notice
                  of the Claim for Tax to the Warrantors.

         4.2      If the Warrantors in writing reasonably require, the Purchaser
                  shall, or shall procure that the Company shall, supply the
                  Warrantors with such available and relevant details,
                  documentation, correspondence and information and shall take
                  such action as the Warrantors may reasonably request in
                  writing to negotiate, avoid, dispute, resist, compromise,
                  defend or appeal against the Claim for Tax and any
                  adjudication in respect of the Claim for Tax provided that the
                  Warrantors shall first indemnify the

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<PAGE>

                  Company and the Purchaser to the reasonable satisfaction of
                  the Purchaser against all reasonable costs and expenses which
                  may be incurred in relation to the same.

         4.3      The Warrantors shall have the right to have any action
                  mentioned in paragraph 4.2 conducted by their nominated
                  professional advisers provided that:

                  4.3.1    the appointment of such professional advisers shall
                           be subject to the approval of the Purchaser (such
                           approval not to be unreasonably withheld or delayed
                           and shall be deemed to be given in the event that the
                           Purchaser does not within 15 days of request give a
                           fully reasoned, written response to a request for
                           approval by the Warrantors);

                  4.3.2    the Warrantors keep the Purchaser fully informed of
                           all matters known to them or to Warrantors' advisers,
                           concerning the Tax Claim;

                  4.3.3    the Warrantors provide the Purchaser with copies of
                           all material documents and correspondence relating to
                           the Tax Claim;

                  4.3.4    the Warrantors submit to the Purchaser for prior
                           written approval (not to be unreasonably withheld or
                           delayed) any material communication (written or
                           otherwise) related to the Tax Claim which is to be
                           transmitted to the relevant Tax Authority; and

                  4.3.5    the Warrantors do not settle or compromise the Tax
                           Claim or agree any matter in the conduct in the Tax
                           Claim which is likely to materially increase the
                           future Tax Liability of the Company and/or the
                           Purchaser without the Purchaser's prior written
                           approval (not to be unreasonably withheld and
                           delayed).

         4.4      Where the Warrantors Vendors have not assumed conduct of any
                  action pursuant to paragraph 4.3 above, the Purchaser shall
                  keep the Warrantors fully informed of the progress in settling
                  the relevant Claim for Tax and shall, as soon as reasonably
                  practicable, forward, or procure to be forwarded to the
                  Warrantors, copies of all material correspondence pertaining
                  to it.

         4.5      Paragraph 4.2 shall not apply in respect of any Claim:

                  4.5.1    to the extent that it would involve the Company
                           contesting any Tax Claim before any court or other
                           appellate body (excluding the authority or body

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                           which has made the Tax Claim) unless Tax Counsel (of
                           at least 10 years' experience) appointed by agreement
                           between the Warrantors and the Purchaser opines, in
                           writing, that an appeal against the Claim in question
                           will, on the balance of probabilities, be won;

                  4.5.2    where it derives from or arises out of any fraudulent
                           act or omission by the Vendors or by the Company
                           prior to Completion;

                  4.5.3    if the Warrantors fail to comply in a material
                           respect with their obligations under paragraph 4.3;

                  4.5.4    if within 15 clear Business Days (or in the case of a
                           Claim for Tax which involves a time limit as set out
                           in paragraph 4.1, two clear Business Days prior to
                           the day on which the time for response or appeal
                           expires) following the Warrantors' receipt of written
                           notice of the Claim from the Purchaser in accordance
                           with paragraph 4.1, the Warrantors:

                           4.5.4.1  do not request that the Purchaser or the
                                    Company takes any action under paragraph
                                    4.2; or

                           4.5.4.2  fails to indemnify the Purchaser and/or the
                                    Company (as appropriate),

                           in which case the Purchaser or the Company shall
                           (without prejudice to the Purchaser's rights under
                           this schedule) be free to pay or settle the Tax Claim
                           on such terms as it may, in its reasonable
                           discretion, consider fit.

         4.6      where the Purchaser or the Company reasonably believes that
                  the action requested shall materially increase the future tax
                  liability of the Company (including the use of any Accounts
                  Relief or any Post Completion Relief) except to the extent
                  that such action is in accordance with Tax legislation or
                  accounting practice at such time.

5.       DATE FOR PAYMENT

         5.1      Where a Tax Claim or any sum to which paragraph 2.2 of part 3
                  of this schedule applies involves the Purchaser or the Company
                  being under a liability to make a payment to any Tax
                  Authority, the Warrantors shall pay to the Purchaser in
                  cleared funds the relevant amount on or before the later of
                  the fifth Business Day after demand is made for the amount in
                  question and the fifth Business Day before the date

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<PAGE>

                  on which the amount in question is finally payable to the
                  relevant Tax Authority without any interest, penalty, fine or
                  surcharge arising in respect of it.

         5.2      Where a Tax Claim does not fall within paragraph 5.1, the due
                  date for the making of payments by the Warrantors under this
                  schedule shall be:

                  5.2.1    in the case of a Tax Claim involving the loss of an
                           Accounts Relief which is not a right to a repayment
                           of Tax, the later of five Business Days following
                           service by the Purchaser of a written demand for the
                           same and the date on which the Accounts Relief would
                           otherwise have been used to reduce a liability to
                           make a payment but for such loss;

                  5.2.2    in the case of a Tax Claim involving the loss of an
                           Accounts Relief which is a right to repayment of Tax,
                           the later of five Business Days after the Purchaser
                           has served a written demand for the same and the date
                           on which repayment of Tax would have actually been
                           received;

                  5.2.3    in the case of a Tax Claim involving the set-off of a
                           Post Completion Relief or an Accounts Relief, the
                           later of five Business Days following the service by
                           the Purchaser of a written demand for the same or the
                           date on which the Actual Tax Liability would have
                           fallen due but for such setting off.

         5.3      All other sums payable by the Warrantors pursuant to paragraph
                  2 of part 3 of this schedule shall be paid five Business Days
                  after the Purchaser has served a written demand for the same.

         5.4      Any sum not paid on a date determined under this schedule
                  ("THE DUE DATE") shall bear interest (which shall accrue from
                  day to day after, as well as before, any judgment for the
                  same) at the rate of 1% per annum over the base rate of
                  Barclays Bank PLC or, in the absence of such base rate, at
                  such similar rate as the person entitled to the payment shall
                  select from the due date up to and including the day of actual
                  payment of such sum (or the next Business Day if the date of
                  actual payment is not a Business Day) compounded quarterly.
                  Such interest shall be paid on demand.

6.       TAX AFFAIRS

         6.1      The Warrantors or their duly authorised agents or advisers
                  shall, at the expense of the Company prepare, submit and agree
                  the corporation tax computations and returns of the Company
                  ("TAX COMPUTATIONS") for its accounting period(s) (within the

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<PAGE>

                  meaning of section 12 of the Taxes Act) ended on or before the
                  Accounts Date ("RELEVANT ACCOUNTING PERIOD(S)").

         6.2      The Warrantors shall deliver to the Purchaser for comments any
                  Tax Computation return document or correspondence and details
                  of any information or proposal ("RELEVANT INFORMATION") which
                  it intends to submit to the Inland Revenue before submission
                  to the Inland Revenue shall take account of the reasonable
                  comments of the Purchaser and make such amendments to the
                  Relevant Information as the Purchaser may reasonably require
                  in writing within 30 days of the date of delivery of the
                  Relevant Information prior to its submission to the Inland
                  Revenue.

         6.3      The Warrantors shall deliver to the Purchaser copies of any
                  material correspondence sent to, or received from, the Inland
                  Revenue relating to the Tax Computations and returns and shall
                  keep the Purchaser informed of their actions under this
                  paragraph.

         6.4      Subject to paragraphs 6.2 and 6.3, the Purchaser shall or
                  shall procure that:

                  6.4.1    the Company properly authorises and signs the Tax
                           Computations and makes and signs or otherwise enters
                           into all such elections, surrenders and claims and
                           withdraws or disclaims such elections, surrenders and
                           claims and gives such notices and signs such other
                           documents as the Warrantors shall require in relation
                           to the Relevant Accounting Period(s);

                  6.4.2    the Company provides to the Warrantors such
                           information and assistance, including without
                           limitation such access to its books, accounts and
                           records which may reasonably be required to prepare,
                           submit, negotiate and agree the Tax Computations;

                  6.4.3    any correspondence which relates to the Tax
                           Computations shall, if received by the Purchaser or
                           any Company or their agents or advisers, be promptly
                           copied to the Warrantors.

         6.5      The Purchaser or its duly authorised agents or advisers shall,
                  at the expense of the Company prepare, submit and agree the
                  corporation tax computation and return of the Company for its
                  accounting period (within the meaning of section 12 of the
                  Taxes Act 1988) in which Completion occurs ("COMPLETION
                  ACCOUNTING PERIOD") ("COMPLETION TAX COMPUTATION").

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<PAGE>

         6.6      The Purchaser shall deliver to the Warrantors for comments the
                  Completion Tax Computation, return, document or correspondence
                  and details of any information or proposal ("COMPLETION
                  RELEVANT INFORMATION") which it intends to submit to the
                  Inland Revenue before submission to the Inland Revenue and,
                  subject to paragraph 6.7 of this schedule 4 part 4 shall take
                  account of the reasonable comments of the Warrantors and make
                  such reasonable amendments to the Relevant Information as the
                  Warrantors may require prior to its submission to the Inland
                  Revenue, provided that the Purchaser shall not have to take
                  account of any comments or make any amendments which the
                  Purchaser reasonably considers will result in any Completion
                  Tax Computation not being true, accurate and lawful in all
                  respects.

         6.7      Subject to paragraphs 6.6 of this schedule 4 part 4, the
                  Purchaser shall or shall procure that the Company provides to
                  the Warrantors all such information and assistance, including
                  without limitation such access to its books, accounts and
                  records (at the Warrantors' cost and expense) which may
                  reasonably be required to consider the draft Completion Tax
                  Computations.

7.       OTHER PROVISIONS AND CORRESPONDING BENEFIT

         7.1      If:

                  7.1.1    any provision for Tax in the Completion Accounts
                           proves to be an over provision;

                  7.1.2    the amount by which any right to repayment of Tax
                           which has been treated (or, in accordance with
                           generally accepted accounting principles, could have
                           been treated) as an asset in the Completion Accounts
                           proves to have been under stated; or

                  7.1.3    a payment by the Warrantors in respect of any Tax
                           Liability under a Tax Claim or the matter giving rise
                           to the Tax Liability in question results in the
                           Company or the Purchaser receiving or becoming
                           entitled to any Relief (other than an Accounts
                           Relief) which it utilises (including by way of
                           repayment of Tax) ("CORRESPONDING RELIEF"),

                  then an amount equal to such over provision, under stated
                  right to repayment of Tax, or the Tax saved by the
                  Corresponding Relief at the date such Corresponding Relief is
                  utilised ("RELEVANT AMOUNT"), shall be dealt with in
                  accordance with paragraph 7.2.

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         7.2      The Relevant Amount:

                  7.2.1    shall first be set off against any payment then due
                           from the Warrantors under a Tax Claim;

                  7.2.2    to the extent there is an excess of the Relevant
                           Amount after any application of the same under
                           paragraph 7.2.1, a refund shall be made to the
                           Warrantors of any previous payment or payments made
                           by the Warrantors under a Tax Claim and not
                           previously refunded under this paragraph 7.2.2 up to
                           the amount of such excess;

                  7.2.3    to the extent that the excess referred to in
                           paragraph 7.2.2 is not exhausted under that
                           paragraph, the remainder of that excess shall be
                           carried forward and set off against any future
                           payment or payments which become due from the
                           Warrantors under a Tax Claim; and

                  7.2.4    to the extent that any excess referred to in
                           paragraph 7.2.3 is not exhausted by the sixth
                           anniversary of this agreement, a refund of such
                           excess shall be made to the Warrantors within 30 days
                           of the sixth anniversary date.

         7.3      If the Purchaser or the Company becomes aware of any
                  circumstances which shall or may give rise to the application
                  of paragraph 7.1, the Purchaser shall or shall procure that
                  the Company shall as soon as reasonably practicable give
                  written notice of the same to the Warrantors.

         7.4      The Warrantors may (at their expense and cost) require the
                  Auditors to certify the existence and quantum of any Relevant
                  Amount and the date on which the Corresponding Relief is
                  utilised and, in the absence of manifest error, their decision
                  shall be final and binding.

8.       THIRD PARTY CLAIMS

         8.1      If the Company or the Purchaser are entitled to recover from
                  another person or a Tax Authority a sum in respect of any
                  matter or Tax Liability to which a Tax Claim relates the
                  Purchaser shall forthwith give written notice of the same to
                  the Warrantors and if the Warrantors indemnify the Purchaser
                  or, as appropriate, the Company (to the Purchaser's reasonable
                  satisfaction) against the reasonable costs of the Purchaser
                  or, as appropriate, the Company in connection with taking the
                  following action, the Purchaser shall, or

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                  shall procure that the Company shall, take such action
                  reasonably requested by the Warrantors to enforce recovery
                  against that person or Tax Authority.

         8.2      In the event that the Purchaser or the Company recovers any
                  sum referred to in paragraph 8.1 (whether after taking any
                  action at the request of the Warrantors under that paragraph
                  or otherwise), the Purchaser shall, as soon as reasonably
                  practicable, account to the Warrantors for the lesser of:

                  8.2.1    the sum recovered net of any Tax on the sum and the
                           costs and expenses of recovering the same; and

                  8.2.2    any amount paid by the Warrantors in respect of the
                           matter giving rise to the relevant Tax Claim plus
                           costs and expenses for which the Warrantors have
                           indemnified the Purchaser and/or the Company under
                           this paragraph 8.

9.       MISCELLANEOUS

         Any payment to the Purchaser or the Company under any Tax Claim shall
         be deemed to be a reduction of the total consideration payable
         hereunder for the Sale Shares.

10.      COVENANT BY THE PURCHASER

         10.1     The Purchaser covenants with the Warrantors to pay to the
                  Warrantors an amount equal to any of the following:

                  10.1.1   any liability or increased liability to Tax of the
                           Vendors or any person connected with the Vendors
                           arising under or by reference to section 767A or
                           section 767AA of the Taxes Act or paragraph 8 of
                           schedule 34 to the Finance Act 2002, paragraph 9 of
                           schedule 35 to the FA 2002 by virtue of the
                           non-payment of Tax by the Company save that this
                           paragraph 10.1.1 shall not apply in respect of any
                           Tax for which the Warrantors are liable to make (but
                           have not yet made) payment to the Purchaser under
                           this schedule;

                  10.1.2   the reasonable costs and expenses of the Vendors in
                           connection with any liability referred to or in
                           taking any action under this paragraph.

         10.2     For the purposes of this paragraph, any reference to a
                  liability to Tax shall include any liability to make a payment
                  of Tax which would have arisen but for the utilisation of any
                  Relief.

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         10.3     Paragraphs 4 and 5 of this part 4 of this schedule shall apply
                  to this paragraph 10 (with all necessary changes) as if: (a)
                  references to the Company in the definition of Claim for Tax
                  were references to the Vendors; and (b) (except in paragraph
                  4.3) references to the Vendors were references to the
                  Purchaser and vice versa.

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                                   SCHEDULE 5

                                   COMPLETION

1.       The Vendors shall deliver or procure to be delivered to the Purchaser:

         1.1      duly executed agreements in agreed form in respect of the sale
                  of the Option Shares to the Purchaser together with duly
                  executed powers of attorney or other authorities pursuant to
                  which any such agreements have been executed;

         1.2      duly executed transfers of the Shares and the Option Shares in
                  favour of the Purchaser together with duly executed powers of
                  attorney or other authorities pursuant to which any transfers
                  have been executed;

         1.3      the relevant share certificates (or an express indemnity in a
                  form satisfactory to the Purchaser in the event of any found
                  to be missing) in respect of the Shares and the Option Shares;

         1.4      the written resignations in the agreed form of Terence Hewitt,
                  Nicholas Wyatt and Andrew Hinton as directors of the Company
                  and the Subsidiaries;

         1.5      all certificates of incorporation and certificates of
                  incorporation on change of name for the Company and the
                  Subsidiaries;

         1.6      the common seal and statutory books (including minute books)
                  and books of account of the Company and the Subsidiaries made
                  up to the Completion Date;

         1.7      share certificates in respect of all the issued shares of each
                  of the Subsidiaries held by the Company or any of the
                  Subsidiaries;

         1.8      bank statements dated not earlier than two Business Days
                  before Completion for all bank accounts of the Company and/or
                  the Subsidiaries together with cash book balances of the
                  Company and/or the Subsidiaries as at Completion and
                  reconciliation statements reconciling such balances with the
                  bank statements;

         1.9      the documents of title to the Properties as shown in the
                  schedule of deeds in the agreed form;

         1.10     the Disclosure Letter.

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         1.11     third party consents and approvals.

2.       The Warrantors shall procure that meetings of the boards of directors
         of the Company and each of the Subsidiaries are convened and held at
         which resolutions in the form set out in the Completion Board Minutes
         are duly passed to do such of the following things as are applicable to
         it:

         2.1      approve (subject to stamping) the transfers referred to in
                  paragraph 1.2 above;

         2.2      approve the change in registered office of the Company and the
                  Subsidiaries to Carmelite, 50 Embankment, London, EC4Y 0DX;

         2.3      appoint persons nominated by the Purchaser as directors;

         2.4      accept the resignations referred to in paragraph 1.4; and;

         2.5      cancel the existing bank mandates and replace them with new
                  mandates as requested by the Purchaser.

3.       The Purchaser shall:

         3.1      pay to the Vendors' Solicitors by transfer of funds through a
                  UK clearing bank the sum of (pound)27,337,288 in respect of
                  the cash consideration payable at Completion. The Vendors'
                  Solicitors' receipt shall be a sufficient discharge for such
                  sum and the Purchaser shall not be concerned to see to the
                  application thereof;

         3.2      deliver to each of the Warrantors a duly executed certificate
                  in respect of the Loan Notes to be allotted to him at
                  Completion pursuant to clause 3.2 (together with a Letter of
                  Credit duly executed by Bank of America, N.A. in relation
                  thereto and a duly executed copy of the instrument creating
                  the Loan Notes);

         3.3      pay the Initial Escrow Amount into the Escrow Account; and

         3.4      deliver to the Vendors duly executed counterparts of:

                  3.4.1    the agreements referred to in paragraph 1.1 above;
                           and

                  3.4.2    the Disclosure Letter.

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                                   SCHEDULE 6

                                 THE PROPERTIES

                                    [Omitted]

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<PAGE>

                                   SCHEDULE 7

                                     PART 1

                               COMPLETION ACCOUNTS

                       PREPARATION OF COMPLETION ACCOUNTS

1.       After Completion, the Company shall prepare a consolidated balance
         sheet for the Group as at 31 May 2004 substantially in the form
         attached at appendix 2.

2.       The balance sheet shall be prepared in accordance with the specific
         accounting methods, bases, principles, policies and practices set out
         in part 2 of this schedule, and subject thereto, on a basis consistent
         with the Accounts using the same accounting methods, bases, principles,
         policies and practices, and subject thereto, in accordance with the law
         and applicable standards, principles and practices generally accepted
         in the United Kingdom as if they were statutory accounts required to be
         prepared under the 1985 Act.

3.       After Completion, the Purchaser shall provide, and shall ensure that
         each Group member provides, to the Warrantors or their representatives
         reasonable access to relevant assets, documents and records within
         their possession or control and reasonable access to the Purchaser's
         Accountants and to the accounts staff employed by the Company for the
         purpose of reviewing and agreeing the Completion Accounts.

4.       The Purchaser shall within 100 days starting on the day after
         Completion submit to the Warrantors the balance sheet, the Purchasers'
         working papers and a report by the Purchaser addressed to the
         Warrantors stating whether in their opinion the balance sheet has been
         prepared in accordance with paragraph 2. The Warrantors shall within 30
         days starting on the day after receipt of the balance sheet and working
         papers certify whether or not they agree with the balance sheet
         together with details of any changes they believe need to be made to
         ensure that the balance sheet complies with paragraph 2.

5.       If the Warrantors certify their agreement with the balance sheet the
         balance sheet shall constitute the Completion Accounts. If the
         Warrantors certify that they disagree with the balance sheet, paragraph
         6 shall apply and unless the Warrantors and the Purchaser agree on the
         Completion Accounts, the decision of the independent firm of chartered
         accountants produced in accordance with paragraph 6 shall constitute
         the Completion Accounts. If the Warrantors do not give the Purchaser
         the certificate required by paragraph 4 within the prescribed period,
         the balance sheet shall constitute the Completion Accounts.

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<PAGE>

6.       If within 14 days starting on the day after receipt by the Purchaser of
         the certificate from the Warrantors referred to in paragraph 4, the
         Warrantors and the Purchaser have not agreed on the Completion Accounts
         or the Warrantors and the Purchaser have not agreed on the amount of
         the consideration payable under clause 3.1, the following provisions
         shall apply. Either party may refer the matter to an independent firm
         of chartered accountants agreed by the parties or, in default of
         agreement within 28 days of the date of receipt of the certificate, an
         independent firm of chartered accountants nominated by the President
         for the time being of the Institute of Chartered Accountants in England
         and Wales ("EXPERT"), on the basis that the Expert is to make a
         decision on the matter within 28 days starting on the day after
         receiving the reference. In a reference, the Expert shall act as an
         expert and not as an arbitrator. The decision of the Expert is, in the
         absence of fraud or manifest error, final and binding on both parties.
         Interest at 5% per annum over the base rate of Barclays Bank PLC shall
         be payable on the net amount awarded by the Expert from the end of the
         30 day period prescribed in paragraph 4 to the date of Expert's
         decision (less any interest earned on such sum (or part of it) in the
         Escrow Account in the aforementioned period). The Expert's costs and
         the reasonable professional costs of the successful party in respect of
         a reference shall be borne by the party whose estimate of the Net Asset
         Value is furthest from that determined by the Expert ("LOSING PARTY").
         The Expert shall determine following his decision the reasonable
         professional costs of the successful party to be borne by the Losing
         Party. Payment of any monies due under this paragraph shall be made in
         full by the Losing Party within 14 days of the Expert's decision. In
         default of payment within 14 days interest shall be payable on the
         unpaid balance (including any costs) at the rate of 5% per annum over
         the base rate of Barclays Bank PLC from that date to the date of final
         payment.

7.       For the purposes of agreeing the Completion Accounts, each of the
         Warrantors appoints Nicholas Andrew Wyatt to be their representative
         ("WARRANTORS' REPRESENTATIVE") to act on their behalf in relation
         thereto and references is to "Warrantors" in this part 1 of schedule 7
         (except in relation to the bearing of the Expert's costs) shall be to
         the "Warrantors' Representative" for all purposes in connection with
         the agreement of the Completion Accounts.

                                                                              94

<PAGE>

                                     PART 2

The Completion Accounts shall be prepared in accordance with the following
specific accounting methods, bases, principles, policies and practices:

1.       No account is to be taken of an event taking place after Completion and
         regard is only to be had to information available to the parties as at
         Completion other than in accordance with SSAP17.

2.       The Provision for bad debts shall be (i) the provision made in the
         Management Accounts (Full Year) as set out in appendix 3 unless and to
         the extent the debtors so provided have subsequent to 31 March 2004
         been collected, in which case the provision shall be reduced by an
         amount equal to any debtors so collected, and (ii) provided that the
         Company continues to operate and record its pre-completion procedures
         for the collection of debtors to the standard operated prior to
         Completion, an additional provision for any debtors outstanding at 31
         May 2004 not collected within 90 days of 31 May 2004 and not already
         included in the Management Accounts (Full Year) as set out in appendix
         3.

3.       The Customer Payments received upfront shall be verified and included
         in the Completion Accounts. This is to include all cash received in
         advance including amounts billed in advance and collected by the BRAVO
         and IRM billing systems, from the NHS or any other customers for
         periods of service from June 2004 forward.

4.       The following items shall be included at the values set out below:

         4.1      fixed assets at(pound)12,009,000;

         4.2      Investment in Sharpsmart at ((pound)75,000), which is a Credit
                  balance;

         4.3      spares stock at(pound)130,000;

         4.4      .Sharpsmart loan at (pound)342,974.

5.       It is agreed that no amount will be included in the Completion Accounts
         in respect of:

         5.1      monies receivable from the sale of WRES;

         5.2      balances relating to the sale of the Well Corporation joint
                  venture;

         5.3      bonuses payable to the Warrantors;

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<PAGE>

         5.4      set up costs in connection with Larkfield;

         5.5      balances in relation to the purchase of the customer list of
                  Synergy Healthcare.

         It is further agreed that transactional fees related to the sale of
         WRES and any costs incurred by the Company related to services received
         by it in respect of the transaction that has resulted in the sale of
         the Company effected by this agreement will be charged to the profit
         and loss account in the period to 31 March 2004.

6.       The figure of (pound)107,931 is agreed as the rolling average working
         capital figure for the purposes of calculating the target net asset
         value.

7.       It is acknowledged by both parties that it is the intention of
         Stericycle, Inc. to consolidate the operating results of the Group with
         effect from 31 May 2004.

                                                                              96

<PAGE>

                                   SCHEDULE 8

                     LIMITATION ON THE WARRANTORS' LIABILITY

1.       DURATION AND EXTENT

         1.1      The aggregate liability of the Vendors in respect of all
                  Claims shall not exceed the sum which is the difference
                  between (i) the Consideration less the amount of
                  (pound)290,613 being the surplus cash and (ii) the Net Asset
                  Value as determined by the Completion Accounts.

         1.2      No amount shall be payable by the Warrantors in respect of any
                  Claim under the Warranties unless and until the aggregate
                  cumulative liability of the Warrantors in respect of all such
                  Claims under the Warranties exceeds (pound)200,000 in which
                  case the Warrantors shall be liable for botH the initial
                  (pound)200,000 and the excess.

         1.3      The Vendors shall not be liable for any Claim unless the
                  Vendors against whom the Purchaser is entitled to make the
                  Claim (referred to in this schedule as the "relevant Vendors")
                  are given notice in writing of that Claim stating in
                  reasonable detail the nature of the Claim and the amount
                  claimed on or before the second anniversary of Completion in
                  the case of the Share Warranties and on or before six years of
                  the Completion Date in the case of any Tax Claim and unless
                  legal proceedings shall have been served in respect of any
                  such Claim within six months of the relevant Vendors being
                  notified of any such Claim.

         1.4      Paragraphs 1.1 to 1.2 (inclusive) shall not apply to any Claim
                  where it can be proved that such Claim is based on a
                  fraudulent act or omission by any of the Vendors prior to
                  Completion.

2.       LIMITATIONS

         No Claim shall be admissible and the Warrantors shall not be liable
         under any of the Share Warranties:

         2.1      to the extent that specific provision, reserve or allowance
                  has been made in the Accounts or in the Completion Accounts or
                  was specifically referred to in the notes to the Accounts or
                  to the extent that payment or discharge thereof has been taken
                  into account in either the Accounts or the Completion
                  Accounts;

                                                                              97

<PAGE>

         2.2      to the extent that such liability arises or is increased as a
                  result of any change or changes in legislation, primary or
                  delegated (other than relating to Taxation or any changes in
                  rates of Taxation or the introduction of any changes or new
                  form of Taxation or in the practice of the Inland Revenue or
                  HM Customs & Excise), occurring after Completion with
                  retrospective effect; or

         2.3      to the extent that such liability occurs or arises as a result
                  of or is otherwise attributable wholly or partly to any
                  voluntary act, transaction or omission of the Company or any
                  of the Subsidiaries or the Purchaser or their respective
                  directors, employees or agents on or after Completion:

                  2.3.1    which is not in the ordinary and proper course of
                           business; and

                  2.3.2    which is not pursuant to a legally binding commitment
                           created on or before Completion by the Company or any
                           of the Subsidiaries or to which they were subject on
                           or before Completion; and

                  2.3.3    where the fact that the act, transaction or omission
                           would give rise to or increase the liability has been
                           Disclosed or the Purchaser ought reasonably to have
                           been aware on the basis of information Disclosed that
                           such act, transaction or omission would give rise to
                           or increase such liability; or

         2.4      to the extent that such liability occurs or arises as a result
                  of or is otherwise attributable wholly or partly to any act
                  authorised in writing by or carried out at the written request
                  of the Purchaser or any member of the Purchaser's Group prior
                  to Completion; or

         2.5      to the extent that any Claim by the Purchaser or the subject
                  matter thereof has been or is made good or is otherwise
                  compensated for (otherwise than by the Purchaser or any member
                  of the Purchaser's Group), but taking into account all other
                  losses to the Purchaser flowing directly as a result of the
                  making good or compensation (including without limitation,
                  where such making good or compensation results from a claim
                  against an insurance policy, taking account of any increased
                  insurance premiums incurred by the Purchaser's Group solely as
                  a result of the claim against such insurance policy or the
                  subject matter of such claim.

                                                                              98

<PAGE>

3.       THIRD PARTY CLAIMS

         3.1      Where the Purchaser and/or the Company and/or any of the
                  Subsidiaries is/are at any time entitled under an insurance
                  policy to recover any sum in respect of any matter giving rise
                  to a Non-Tax Claim, the Purchaser shall and shall procure that
                  the Company or any of the Subsidiaries shall make a claim for
                  recovery of such sum under such policy. The Purchaser shall
                  not take any action against the Vendors (other than notifying
                  the relevant Vendors of the Non-Tax Claim) until the expiry of
                  60 days following the making of such claim under such policy
                  and shall use all reasonable endeavours (but without being
                  obliged to threaten or commence legal proceedings) to ensure
                  that, so far as possible, amounts are recovered under such
                  policy in respect of such Non-Tax Claim. In the event that the
                  Purchaser or the Company or any of the Subsidiaries shall
                  recover any amount under such policy in respect of such
                  Non-Tax Claim the amount of the Non-Tax Claim against the
                  relevant Vendors shall be reduced by (or if the relevant
                  Vendors have paid the amount claimed by the Purchaser, the
                  relevant Vendors shall be repaid the amount paid by them to
                  the Purchaser in respect of the Non-Tax Claim or, if less, an
                  amount equal to) the amount recovered under the policy in
                  respect of such Non-Tax Claim less the aggregate of all
                  reasonable costs, charges and expenses incurred by the
                  Purchaser or the Company or any of the Subsidiaries in
                  recovering that sum pursuant to such insurance policy
                  including any increased insurance premiums incurred by the
                  Purchaser's Group solely as a result of the claim against such
                  insurance policy or the subject matter of such claim.

         3.2      If the relevant Vendors pay at any time to the Purchaser or to
                  the Company or to any of the Subsidiaries the amount of a
                  Non-Tax Claim and the Purchaser or the Company or any of the
                  Subsidiaries is/are or subsequently become entitled, otherwise
                  than under an insurance policy, to recover from some other
                  person any sum in respect of any matter giving rise to such
                  Non-Tax Claims the Purchaser shall and shall procure that the
                  Company or the relevant Subsidiary shall forthwith repay to
                  the relevant Vendors so much of the amount paid by them to the
                  Purchaser, the Company or the relevant Subsidiary as does not
                  exceed the sum (if any) recovered by the Purchaser, the
                  Company or the relevant Subsidiary from such other person less
                  all reasonable costs, charges and expenses incurred by the
                  Purchaser, the Company or the relevant Subsidiary in
                  recovering that sum from such other person.

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<PAGE>

         3.3      If any amount is repaid to the relevant Vendors by the
                  Purchaser or the Company or any Subsidiary pursuant to
                  paragraph 3.2 above an amount equal to the amount so repaid
                  shall be deemed never to have been paid by the Vendors for the
                  purposes of paragraph 1.1 and accordingly shall not be treated
                  as an amount in respect of which any liability has been
                  incurred.

4.       RIGHTS OF ACTION

         4.1      If the relevant Vendors pay at any time to the Purchaser, the
                  Company or any of the Subsidiaries an amount pursuant to a
                  Non-Tax Claim, the Purchaser will and will procure that the
                  relevant Group member will, if so requested in writing by the
                  relevant Vendors, assign (at the cost of the relevant Vendors)
                  to the relevant Vendors all or any assignable rights of action
                  which the Purchaser or such Group member may have against a
                  third party in respect of such Non-Tax Claim Provided always
                  that, save in relation to any right of action which the
                  Purchaser or a Group member may have against an insurance
                  policy, the Purchaser shall not be obliged to assign or
                  procure the assignment of any such rights of action against a
                  third party, if to do so would be inconsistent with the
                  commercially reasonable protection of the goodwill of the
                  Company or of the relevant Group member and provided further
                  that, prior to any such assignment, the Purchaser or the
                  relevant Group member is indemnified to its reasonable
                  satisfaction against any costs, liabilities, charges and
                  expenses which it may incur which result directly from such
                  assignment.

         4.2      Following any assignments of rights pursuant to paragraph 4.1
                  above the Purchaser will provide and will procure that each
                  Group member provides all information and access to all
                  relevant assets, documents and records within the Purchaser's
                  Group which is reasonably requested by the Vendors.

5.       CONDUCT OF CLAIMS

         5.1      If the Purchaser becomes aware of a matter which is reasonably
                  likely to give rise to a Non-Tax Claim:

                  5.1.1    the Purchaser shall (or shall procure that the
                           Company or the Subsidiary concerned shall) as soon as
                           reasonably practicable give written notice to the
                           relevant Vendors of the matter and shall to the
                           extent reasonably practicable consult with the
                           Vendors with respect to such matter but such notice
                           and

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<PAGE>

                           consultation shall not be a condition precedent to
                           the liability of the relevant Vendors; and

                  5.1.2    the Purchaser shall not, and shall ensure that no
                           member of the Purchaser's Group will, admit liability
                           in respect of, or compromise or settle, the matter
                           without the prior written consent of the relevant
                           Vendors (such consent not to be unreasonably withheld
                           or delayed) and shall provide the relevant Vendors
                           with such information relating as is reasonably
                           necessary for the relevant Vendors to give their
                           informed consent .

         5.2      The Purchaser shall use all reasonable endeavours to ensure
                  that it becomes aware of any matter which becomes known to the
                  Company or any of the Subsidiaries which is reasonably likely
                  to give rise to a Non-Tax Claim.

6.       MISCELLANEOUS

         6.1      Any payment to the Purchaser or the Company or any of the
                  Subsidiaries in respect of a Claim shall be deemed to be a
                  reduction of the total consideration payable hereunder for the
                  Shares.

         6.2      The Purchaser shall be obliged to seek recovery under the
                  Warranties or the Tax Covenant against each and every
                  Warrantor in the proportions set opposite the name of the
                  relevant Warrantor in column 5 of schedule 1 so that no single
                  Warrantor shall in any event be liable hereunder for an amount
                  or amounts exceeding, in aggregate, an amount equal to that
                  part of the consideration receivable by such Vendor (and, in
                  respect of, Andrew Peter Hinton, also that part of the
                  consideration receivable by the trustees of The AP Hinton 2001
                  Accumulation and Maintenance Settlement) pursuant to this
                  agreement which is subject to Claims in accordance with
                  paragraph 1.1 of schedule 8.

6.3               Payment of any Claim whether under the Warranties or under the
                  Tax Covenant shall to the extent paid satisfy and discharge
                  any other Claim which is capable of being made in respect of
                  the same subject matter and the Purchaser shall at all times
                  procure that there is no duplication of recovery by the
                  Purchaser in respect of any Claim or Claims relating to the
                  same subject matter.

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<PAGE>

6.4               The Purchaser will, and shall ensure that the Company and the
                  Subsidiaries will take all reasonable care to, preserve all
                  documents, records, correspondence, accounts and other similar
                  information relevant to a matter which may give rise to a
                  Claim, subject to the normal policies of the Purchaser,
                  Company and the Subsidiaries to retaining such materials.

                                                                             102

<PAGE>

                                   APPENDIX 1

                                    [Omitted]

                                                                             103

<PAGE>

                                   APPENDIX 2

                                    [Omitted]

                                                                             104

<PAGE>

                                   APPENDIX 3

                                    [Omitted]

                                                                             105

<PAGE>

EXECUTED (but not delivered until the date       )
hereof) as a deed by Andrew Peter Hinton in the  ) /s/ Andrew Peter Hinton
presence of:                                     )

Signature /s/ J.C. Taylor

Name: J.C. Taylor

Occupation: Chartered Accountant

Address: [Omitted]

.....................................

.....................................

EXECUTED (but not delivered until the date       )
hereof as a deed by Nicholas Andrew Wyatt in the ) /s/ Nicholas Andrew Wyatt
presence of:                                     )

Signature /s/ J.C. Taylor

Name: J.C. Taylor

Occupation: Chartered Accountant

Address: [Omitted]

.....................................

.....................................

EXECUTED (but not delivered until the date       )
hereof  as a deed by Terence John Hewitt         ) /s/ Terence John Hewitt
in the presence of:                              )

Signature /s/ J.C. Taylor

Name: J.C. Taylor

Occupation: Chartered Accountant

Address: [Omitted]

.....................................

.....................................

                                                                             106

<PAGE>

EXECUTED (but not delivered until the date       )
hereof as a deed by Andrew Peter Hinton (as      )   /s/ Andrew Peter Hinton
trustee for The AP Hinton 2001 Accumulation and  )
Maintenance Settlement) in the presence of:      )
                                                 )

Signature /s/ J.C. Taylor

Name: J.C. Taylor

Occupation: Chartered Accountant

Address: [Omitted]

.....................................

.....................................

EXECUTED (but not delivered until the date       )
hereof) as a deed by Penelope Jane Sanders (as   ) /s/ Penelope Jane Sanders
trustee for The AP Hinton 2001 Accumulation and  )
Maintenance Settlement) in the presence of:      )
                                                 )

Signature /s/ J.C. Taylor

Name: J.C. Taylor

Occupation: Chartered Accountant

Address: [Omitted]

.....................................

.....................................

                                                                             107

<PAGE>

EXECUTED (but not delivered until the date       )
hereof) as a deed by Christopher Winston Jones   ) /s/ Christopher Winston Jones
(as trustee for The AP Hinton 2001 Accumulation  )
and Maintenance Settlement) in the presence of:  )
                                                 )

Signature /s/ J.C. Taylor

Name: J.C. Taylor

Occupation: Chartered Accountant

Address: [Omitted]

.....................................

.....................................

EXECUTED (but not delivered until the date       )
hereof) as a deed by Stericycle UK, Ltd. acting  ) /s/ Shazeen Sattar Sacranie
by its attorney Shazeen Sattar Sacranie:         )
                                                 )

                                                                             108<PAGE>

                                                                    EXHIBIT 10.1

                                                               EXECUTION VERSION

                                CREDIT AGREEMENT

                            Dated as of June 11, 2004

                                      among

                                  SCHAWK, INC.,

                                as the Borrower,

       THE ALTERNATE CURRENCY BORROWERS FROM TIME TO TIME PARTIES HERETO,

                       THE INSTITUTIONS FROM TIME TO TIME

                            PARTIES HERETO AS LENDERS

                                       and

                       BANK ONE, NA (MAIN OFFICE CHICAGO)

                                    as Agent

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

                         BANC ONE CAPITAL MARKETS, INC.,
                      AS LEAD ARRANGER AND SOLE BOOK RUNNER

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

                         SIDLEY AUSTIN BROWN & WOOD LLP

                                 Bank One Plaza
                            10 South Dearborn Street
                             Chicago, Illinois 60603

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                 SECTION                                                       PAGE
                                                 -------                                                       ----
<S>                                                                                                            <C>
ARTICLE  I:   DEFINITIONS...............................................................................         1
     1.1.     Certain Defined Terms.....................................................................         1
     1.2.     References................................................................................        25
     1.3.     Supplemental Disclosure...................................................................        25

ARTICLE  II:  REVOLVING LOAN FACILITIES.................................................................        25
     2.1.     [Reserved]................................................................................        25
     2.2.     Revolving Loans...........................................................................        25
     2.3.     Swing Line Loans..........................................................................        27
     2.4.     Rate Options for all Advances; Maximum Interest Periods...................................        28
     2.5.     Optional Payments; Mandatory Prepayments..................................................        29
     2.6.     Reduction of Commitments..................................................................        31
     2.7.     Method of Borrowing.......................................................................        31
     2.8.     Method of Selecting Types and Interest Periods for Advances...............................        31
     2.9.     Minimum Amount of Each Advance............................................................        32
     2.10.    Method of Selecting Types and Interest Periods for Conversion and Continuation
              of Advances ..............................................................................        32
     2.11.    Default Rate..............................................................................        33
     2.12.    Method of Payment.........................................................................        34
     2.13.    Evidence of Debt..........................................................................        35
     2.14.    Telephonic Notices........................................................................        35
     2.15.    Promise to Pay; Interest and Commitment Fees; Interest Payment Dates; Interest
              and Fee Basis; Taxes; Loan and Control Accounts ..........................................        36
     2.16.    Notification of Advances, Interest Rates, Prepayments and Aggregate Revolving
              Loan Commitment Reductions ...............................................................        41
     2.17.    Lending Installations.....................................................................        41
     2.18.    Non-Receipt of Funds by the Agent.........................................................        41
     2.19.    Termination Date..........................................................................        41
     2.20.    Replacement of Certain Lenders............................................................        42
     2.21.    Alternate Currency Loans..................................................................        42
     2.22.    Judgment Currency.........................................................................        45
     2.23.    Market Disruption; Denomination of Amounts in Dollars; Dollar Equivalent of
              Reimbursement Obligations ................................................................        45
     2.24.    Payments to be Free and Clear.............................................................        46
     2.25.    Additional Alternate Currency Borrowers...................................................        47
     2.26.    Increase of Aggregate Revolving Loan Commitment...........................................        47

ARTICLE  III:  THE LETTER OF CREDIT FACILITY............................................................        49
     3.1.     Obligation to Issue Letters of Credit.....................................................        49
     3.2.     Transitional Provision....................................................................        49
     3.3.     Types and Amounts.........................................................................        49
     3.4.     Conditions................................................................................        50
     3.5.     Procedure for Issuance of Letters of Credit...............................................        50
</TABLE>

                                       i

<PAGE>

<TABLE>
<S>                                                                                                             <C>
     3.6.     Letter of Credit Participation............................................................        51
     3.7.     Reimbursement Obligation..................................................................        51
     3.8.     Letter of Credit Fees.....................................................................        52
     3.9.     Issuing Bank Reporting Requirements.......................................................        52
     3.10.    Indemnification; Exoneration..............................................................        52
     3.11.    Cash Collateral...........................................................................        53

ARTICLE  IV:  CHANGE IN CIRCUMSTANCES...................................................................        54
     4.1.     Yield Protection..........................................................................        54
     4.2.     Changes in Capital Adequacy Regulations...................................................        55
     4.3.     Availability of Types of Advances.........................................................        55
     4.4.     Funding Indemnification...................................................................        55
     4.5.     Lender Statements; Survival of Indemnity..................................................        56

ARTICLE  V:  CONDITIONS PRECEDENT.......................................................................        57
     5.1.     Initial Advances and Letters of Credit....................................................        57
     5.2.     Each Advance and Letter of Credit.........................................................        58
     5.3.     Initial Advance to Each New Alternate Currency Borrower...................................        58

ARTICLE  VI:  REPRESENTATIONS AND WARRANTIES............................................................        59
     6.1.     Organization; Corporate Powers............................................................        59
     6.2.     Authority.................................................................................        60
     6.3.     No Conflict; Governmental Consents........................................................        60
     6.4.     Financial Statements......................................................................        61
     6.5.     No Material Adverse Change................................................................        61
     6.6.     Taxes.....................................................................................        62
     6.7.     Litigation; Loss Contingencies and Violations.............................................        62
     6.8.     Subsidiaries..............................................................................        62
     6.9.     ERISA.....................................................................................        63
     6.10.    Accuracy of Information...................................................................        64
     6.11.    Securities Activities.....................................................................        64
     6.12.    Material Agreements.......................................................................        64
     6.13.    Compliance with Laws......................................................................        64
     6.14.    Assets and Properties.....................................................................        64
     6.15.    Statutory Indebtedness Restrictions.......................................................        65
     6.16.    Insurance.................................................................................        65
     6.17.    Labor Matters.............................................................................        65
     6.18.    No Default or Unmatured Default...........................................................        65
     6.19.    Environmental Matters.....................................................................        65
     6.20.    Solvency..................................................................................        66
     6.21.    Representations and Warranties of each Alternate Currency Borrower........................        66

ARTICLE  VII:  COVENANTS................................................................................        68
     7.1.     Reporting.................................................................................        68
     7.2.     Affirmative Covenants.....................................................................        73
     7.3.     Negative Covenants........................................................................        75
     7.4.     Financial Covenants.......................................................................        83
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                                            <C>
ARTICLE  VIII:  DEFAULTS................................................................................        84
     8.1.     Defaults..................................................................................        84

ARTICLE  IX:  ACCELERATION, DEFAULTING LENDERS; WAIVERS, AMENDMENTS AND REMEDIES........................        87
     9.1.     Termination of Revolving Loan Commitments; Acceleration...................................        87
     9.2.     Defaulting Lender.........................................................................        88
     9.3.     Amendments................................................................................        89
     9.4.     Preservation of Rights....................................................................        90

ARTICLE  X:  GENERAL PROVISIONS.........................................................................        90
     10.1.    Survival of Representations...............................................................        91
     10.2.    Governmental Regulation...................................................................        91
     10.3.    Performance of Obligations................................................................        91
     10.4.    Headings..................................................................................        91
     10.5.    Entire Agreement..........................................................................        91
     10.6.    Several Obligations; Benefits of this Agreement...........................................        92
     10.7.    Expenses; Indemnification.................................................................        92
     10.8.    Numbers of Documents......................................................................        94
     10.9.    Accounting................................................................................        94
     10.10.   Severability of Provisions................................................................        94
     10.11.   Nonliability of Lenders...................................................................        94
     10.12.   GOVERNING LAW.............................................................................        94
     10.13.   CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL...................................        94
     10.14.   USA Patriot Act Notification..............................................................        95

ARTICLE  XI:  THE AGENT.................................................................................        96
     11.1.    Appointment; Nature of Relationship.......................................................        96
     11.2.    Powers....................................................................................        96
     11.3.    General Immunity..........................................................................        96
     11.4.    No Responsibility for Loans, Creditworthiness, Recitals, Etc..............................        97
     11.5.    Action on Instructions of Lenders.........................................................        97
     11.6.    Employment of Agents and Counsel..........................................................        97
     11.7.    Reliance on Documents; Counsel............................................................        97
     11.8.    The Agent's and the Alternate Currency Bank's Reimbursement and Indemnification...........        97
     11.9.    Rights as a Lender........................................................................        98
     11.10.   Lender Credit Decision....................................................................        98
     11.11.   Successor Agent...........................................................................        98

ARTICLE  XII:  SETOFF; RATABLE PAYMENTS.................................................................        99
     12.1.    Setoff....................................................................................        99
     12.2.    Ratable Payments..........................................................................        99
     12.3.    Application of Payments...................................................................        99
     12.4.    Relations Among Lenders...................................................................       100

ARTICLE  XIII:  BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS.......................................       100
     13.1.    Successors and Assigns....................................................................       100
</TABLE>

                                      iii

<PAGE>

<TABLE>
<S>                                                                                                             <C>
     13.2.    Participations............................................................................        101
     13.3.    Assignments...............................................................................        102
     13.4.    Confidentiality...........................................................................        104
     13.5.    Dissemination of Information..............................................................        105
     13.6.    Tax Certifications........................................................................        105

ARTICLE  XIV:  NOTICES..................................................................................        105
     14.1.    Giving Notice.............................................................................        105
     14.2.    Change of Address.........................................................................        105

ARTICLE  XV:  COUNTERPARTS..............................................................................        105

ARTICLE  XVI:  SCHEDULES................................................................................        105
</TABLE>

                                       iv

<PAGE>

                             EXHIBITS AND SCHEDULES

                                    EXHIBITS*

EXHIBIT A         =          Revolving Loans (Definitions)

EXHIBIT A-1       =          Eurocurrency Payment Offices

EXHIBIT B         =          Form of Borrowing/Conversion/Continuation Notice
                             (Section 2.3 and Section 2.8 and Section 2.10)

EXHIBIT C         =          Form of Request for Letter of Credit (Section 3.4)

EXHIBIT E         =          Form of Borrowers' US Counsel's Opinion and Form of
                             Borrowers' Foreign Counsel's Opinion (Section 5.1)

EXHIBIT F         =          List of Closing Documents
                             (Section 5.1)

EXHIBIT G         =          Form of Officer's Certificate
                             (Sections 5.2 and 7.1(A)(iii))

EXHIBIT H         =          Form of Compliance Certificate
                             (Sections 5.2 and 7.1(A)(iii))

EXHIBIT I         =          Form of Subsidiary Guaranty
                             (Definitions)

EXHIBIT J         =          Forms of Alternate Currency Addenda
                             (Definitions)

EXHIBIT K         =          Form of Revolving Loan Note
                             (Section 2.13(D))

EXHIBIT L         =          Form of Commitment and Acceptance
                             (Section 2.26)

EXHIBIT M         =          Form of Assumption Letter
                             (Definitions)

*INTENTIONALLY OMITTED

                                       v

<PAGE>

SCHEDULES*

Schedule 1.1.1       =           Permitted Existing Indebtedness (Definitions)

Schedule 1.1.2       =           Permitted Existing Investments (Definitions)

Schedule 1.1.3       =           Permitted Existing Liens (Definitions)

Schedule 1.1.4       =           Permitted Existing Contingent Obligations
                                 (Definitions)

Schedule 3.2         =           Transitional Letters of Credit (Section 3.2)

Schedule 6.3         =           Conflicts; Governmental Consents (Section 6.3)

Schedule 6.4         =           Pro Forma Financial Statements (Section 6.4(A))

Schedule 6.7         =           Litigation; Loss Contingencies (Section 6.7)

Schedule 6.8         =           Subsidiaries (Section 6.8)

Schedule 6.9         =           ERISA (Section 6.9)

Schedule 6.16        =           Insurance (Sections 6.16 and 7.2(E))

Schedule 6.19        =           Environmental Matters (Section 6.19)

*INTENTIONALLY OMITTED

                                       vi

<PAGE>

                                CREDIT AGREEMENT

            This Credit Agreement dated as of June 11, 2004 is entered into
among SCHAWK, INC., a Delaware corporation (the "BORROWER"), one or more
Subsidiaries of the Borrower (whether now existing or hereafter formed and party
to an Alternate Currency Addendum, collectively referred to herein as the
"ALTERNATE CURRENCY BORROWERS"), the institutions from time to time parties
hereto as Lenders, whether by execution of this Agreement or an Assignment
Agreement pursuant to Section 13.3, and BANK ONE, NA (MAIN OFFICE CHICAGO), in
its capacity as contractual representative for itself and the other Lenders. The
parties hereto agree as follows:

                             ARTICLE I: DEFINITIONS

            1.1. Certain Defined Terms. In addition to the terms defined above,
the following terms used in this Agreement shall have the following meanings,
applicable both to the singular and the plural forms of the terms defined.

            As used in this Agreement:

            "ACQUISITION" means any transaction, or any series of related
transactions, consummated on or after the date of this Agreement, by which the
Borrower or any of its Subsidiaries (i) acquires any going business or all or
substantially all of the assets of any firm, corporation or division thereof,
whether through purchase of assets, merger or otherwise or (ii) directly or
indirectly acquires (in one transaction or as the most recent transaction in a
series of transactions) at least a majority (in number of votes) of the
securities of a corporation which have ordinary voting power for the election of
directors (other than securities having such power only by reason of the
happening of a contingency) or a majority (by percentage of voting power) of the
outstanding equity interests of another Person.

            "ADVANCE" means a borrowing hereunder consisting of the aggregate
amount of the several Loans made by the Lenders to the Borrower of the same Type
and, in the case of Eurocurrency Rate Advances and Alternate Currency Loans, in
the same currency and for the same Interest Period.

            "AFFECTED LENDER" is defined in Section 2.20 hereof.

            "AFFILIATE" of any Person means any other Person directly or
indirectly controlling, controlled by or under common control with such Person.
A Person shall be deemed to control another Person if the controlling Person is
the "beneficial owner" (as defined in Rule 13d-3 under the Securities Exchange
Act of 1934) of greater than nine and nine-tenths percent (9.90%) or more of any
class of voting securities (or other voting interests) of the controlled Person
or possesses, directly or indirectly, the power to direct or cause the direction
of the management or policies of the controlled Person, whether through
ownership of Capital Stock, by contract or otherwise.

                                       1

<PAGE>

            "AGENT" means Bank One in its capacity as contractual representative
for itself and the Lenders pursuant to Article XI hereof and any successor Agent
appointed pursuant to Article XI hereof.

            "AGGREGATE REVOLVING LOAN COMMITMENT" means the aggregate of the
Revolving Loan Commitments of all the Lenders, as may be increased or reduced
from time to time pursuant to the terms hereof. The initial Aggregate Revolving
Loan Commitment is Thirty Million and 00/100 Dollars ($30,000,000).

            "AGREED CURRENCIES" means (i) Dollars and (ii) so long as such
currency remains an Eligible Currency, Canadian Dollars, and (iii) any other
Eligible Currency which the Borrower requests the Agent to include as an Agreed
Currency hereunder and which is acceptable to one-hundred percent (100%) of the
Lenders with a Revolving Loan Commitment; provided that the Agent shall promptly
notify each such Lender of each such request and each such Lender shall be
deemed not to have agreed to each such request unless its written consent
thereto has been received by the Agent within five (5) Business Days from the
date of such notification by the Agent to such Lender.

            "AGREED LETTER OF CREDIT CURRENCIES" means (i) Dollars and (ii) any
other currency which the Borrower requests an Issuing Bank to include as an
Agreed Letter of Credit Currency and which is acceptable to such Issuing Bank.

            "AGREEMENT" means this Credit Agreement, as it may be amended,
restated or otherwise modified and in effect from time to time.

            "AGREEMENT ACCOUNTING PRINCIPLES" means generally accepted
accounting principles as in effect in the United States as of the date of this
Agreement, applied in a manner consistent with that used in preparing the
financial statements of the Borrower referred to in Section 6.4(B)(1) hereof,
provided, however, that with respect to the calculation of financial ratios and
other financial tests required by this Agreement, "Agreement Accounting
Principles" means generally accepted accounting principles as in effect in the
United States as of the date of this Agreement, applied in a manner consistent
with that used in preparing the financial statements of the Borrower referred to
in Section 6.4(A) hereof; provided, further, however, all pro forma financial
statements reflecting Acquisitions shall be prepared in accordance with the
requirements established by the Commission for acquisition accounting for
reporting acquisitions by public companies (whether or not such Acquisitions are
required to be publicly reported); provided, further, that no change in
accounting principles shall be made from those used in preparing the financial
statements referred to in Section 6.4 hereof, including, without limitation,
with respect to the nature or classification of accounts, closing proceedings,
levels of reserves, or levels of accruals other than as a result of objective
changes in the underlying business; provided, further, that for purposes of the
preceding clauses, "changes in accounting principles" or "changes in Agreement
Accounting Principles" includes all changes in accounting principles, policies,
practices, procedures, or methodologies with respect to financial statements,
their classification, or their display, as well as all changes in practices,
methods, conventions, or assumptions used in making accounting estimates.

                                       2

<PAGE>

            "ALTERNATE BASE RATE" means, for any day, a fluctuating rate of
interest per annum equal to the higher of (i) the Prime Rate for such day and
(ii) the sum of (a) the Federal Funds Effective Rate for such day and (b)
one-half of one percent (0.5%) per annum.

            "ALTERNATE CURRENCY" shall mean (i) only so long as such currency
remains an Eligible Currency, Canadian Dollars and (ii) any other Eligible
Currency which the applicable Borrower requests the Alternate Currency Bank to
include as an Alternate Currency hereunder and which is acceptable to the
Alternate Currency Bank and with respect to which an Alternate Currency Addendum
has been executed by an Alternate Currency Borrower and the Alternate Currency
Bank in connection therewith.

            "ALTERNATE CURRENCY ADDENDUM" means an addendum substantially in the
form of Exhibit J with such modifications thereto as shall be approved by the
Alternate Currency Bank.

            "ALTERNATE CURRENCY BANK" means Bank One (or any Affiliate, branch
or agency thereof) to the extent it is party to an Alternate Currency Addendum.
If any agency, branch or Affiliate of Bank One shall be a party to an Alternate
Currency Addendum, such agency, branch or Affiliate shall, to the extent of any
commitment extended and any Loans made by it, have all the rights of Bank One
hereunder; provided, however, that Bank One shall to the exclusion of such
agency, branch or Affiliate, continue to have all the voting rights vested in it
by the terms hereof.

            "ALTERNATE CURRENCY BORROWER" means each of the Borrower's
Subsidiaries, whether now existing or hereafter formed, that is a party to an
Alternate Currency Addendum, which Subsidiary shall have delivered to the Agent
an Assumption Letter in accordance with Section 2.25 and such other documents as
may be required pursuant to this Agreement, in each case together with its
respective successors and assigns including a debtor-in-possession on behalf of
such Alternate Currency Borrower.

            "ALTERNATE CURRENCY BORROWING" means any borrowing consisting of a
Loan made in an Alternate Currency.

            "ALTERNATE CURRENCY COMMITMENT" means, for the Alternate Currency
Bank for each Alternate Currency, the obligation of such Alternate Currency Bank
to make Alternate Currency Loans not exceeding the Dollar Amount set forth in
the applicable Alternate Currency Addendum, as such amount may be modified from
time to time pursuant to the terms of this Agreement and the applicable
Alternate Currency Addendum.

            "ALTERNATE CURRENCY INTEREST PERIOD" means, with respect to any
Alternate Currency Loan, the Interest Period as set forth on the applicable
Alternate Currency Addendum.

            "ALTERNATE CURRENCY LOAN" means any Loan denominated in an Alternate
Currency made by the Alternate Currency Bank to an Alternate Currency Borrower
pursuant to Section 2.21 and an Alternate Currency Addendum.

                                       3

<PAGE>

            "ALTERNATE CURRENCY RATE" means, for any day for any Alternate
Currency Loan, the per annum rate of interest selected by the applicable
Alternate Currency Borrower under and as set forth in the applicable Alternate
Currency Addendum.

            "APPLICABLE COMMITMENT FEE PERCENTAGE" means, as at any date of
determination, the rate per annum then applicable in the determination of the
amount payable under Section 2.15(C)(i) hereof determined in accordance with the
provisions of Section 2.15(D)(ii) hereof.

            "APPLICABLE EUROCURRENCY MARGIN" means, as at any date of
determination, the rate per annum then applicable to Eurocurrency Rate Loans
determined in accordance with the provisions of Section 2.15(D)(ii) hereof.

            "APPLICABLE FLOATING RATE MARGIN" means, as at any date of
determination, the rate per annum then applicable to Floating Rate Loans
determined in accordance with the provisions of Section 2.15(D)(ii) hereof.

            "APPLICABLE L/C FEE PERCENTAGE" means, as at any date of
determination, the rate per annum then applicable to the letter of credit fee
under Section 3.8(a) hereof in accordance with the provisions of Section
2.15(D)(ii) hereof.

            "APPROVED FUND" means, with respect to any Lender that is a fund or
commingled investment vehicle that invests in commercial loans, any other fund
that invests in commercial loans and is managed or advised by the same
investment advisor as such Lender or by an Affiliate of such investment advisor.

            "APPROXIMATE EQUIVALENT AMOUNT" means any currency with respect to
any amount of Dollars shall mean the Equivalent Amount of such currency with
respect to such amount of Dollars at such date, rounded up to the nearest amount
of such currency as determined by the Agent from time to time.

            "ARRANGER" means Banc One Capital Markets, Inc., in its capacity as
the arranger for the loan transaction evidenced by this Agreement.

            "ASSIGNMENT AGREEMENT" means an assignment and acceptance agreement
entered into in connection with an assignment pursuant to Section 13.3 hereof in
substantially the form of Exhibit D.

            "ASSET SALE" means, with respect to any Person, the sale, lease,
conveyance, disposition or other transfer by such Person of any of its assets
(including by way of a sale-leaseback transaction, and including the sale or
other transfer of any of the Equity Interests of any Subsidiary of such Person)
to any Person other than the Borrower or any of its wholly-owned Subsidiaries
other than (i) the sale of Inventory in the ordinary course of business, (ii)
the sale or other disposition of any obsolete, redundant, excess, damaged or
worn-out Equipment disposed of in the ordinary course of business and (iii)
leases of personal property (including leases or licenses of intellectual
property) and leases of surplus or redundant real property.

                                       4

<PAGE>

            "ASSUMPTION LETTER" means a letter of any Subsidiary which is a
Foreign Incorporated Subsidiary addressed to the Lenders in substantially the
form of Exhibit M hereto pursuant to which such Subsidiary agrees to become an
Alternate Currency Borrower and agrees to be bound by the terms and conditions
hereof as if originally a party hereto.

            "AUTHORIZED OFFICER" means any of the President, any Vice President
or Chief Financial Officer of the Borrower, acting singly.

            "BANK ONE" means Bank One, NA, having its principal office in
Chicago, Illinois in its individual capacity, and its successors.

            "BENEFIT PLAN" means a defined benefit plan as defined in Section
3(35) of ERISA (other than a Multiemployer Plan) in respect of which the
Borrower or any other member of the Controlled Group is, or within the
immediately preceding six (6) years was, an "employer" as defined in Section
3(5) of ERISA.

            "BORROWER" means Schawk, Inc., a Delaware corporation, together with
its successors and assigns, including a debtor-in-possession on behalf of the
Borrower, and "BORROWERS" shall mean, collectively, the Borrower and the
Alternate Currency Borrowers.

            "BORROWING DATE" means a date on which an Advance or Swing Line Loan
is made hereunder.

            "BORROWING/CONVERSION/CONTINUATION NOTICE" is defined in Section 2.8
hereof.

            "BUSINESS DAY" means (i) with respect to any borrowing, payment or
rate selection of Loans bearing interest at the Eurocurrency Rate, a day (other
than a Saturday or Sunday) on which banks are open for business in Chicago,
Illinois and New York, New York and on which dealings in Dollars and the other
Agreed Currencies are carried on in the London interbank market and (ii) for all
other purposes a day (other than a Saturday or Sunday) on which banks are open
for business in Chicago, Illinois and New York, New York.

            "CANADIAN DOLLARS" means the lawful currency of Canada.

            "CAPITAL EXPENDITURES" means, for any period, the aggregate of all
expenditures (whether or not paid in cash and including Capitalized Leases and
purchase money indebtedness) by the Borrower and its consolidated Subsidiaries
during that period that, in conformity with Agreement Accounting Principles, are
required to be included in or reflected by the property, plant, equipment or
similar fixed asset accounts reflected in the consolidated balance sheet of the
Borrower and its Subsidiaries; provided, however, that the term "Capital
Expenditures" shall not include (a) expenditures made in connection with the
replacement, substitution or restoration of assets (i) to the extent financed
from insurance proceeds paid on account of the loss of or damage to the assets
being replaced or restored or (ii) with awards of compensation arising from the
taking by eminent domain or condemnation of the assets being replaced; (b) the
purchase price of equipment that is purchased simultaneously with the trade-in
of existing equipment to the extent that the gross amount of such purchase price
is reduced by the credit granted by the seller of such equipment for the
equipment being traded in at such time; (c) the purchase of plant,

                                       5

<PAGE>

property or equipment made within one year of the sale of any asset to the
extent purchased with the proceeds of such sale; (d) the portion of the purchase
price in connection with any acquisition that would otherwise be included as
additions to property, plant or equipment; and (e) expenditures made in
connection with any acquisition.

            "CAPITAL STOCK" means (i) in the case of a corporation, corporate
stock, (ii) in the case of an association or business entity, any and all
shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership, partnership
interests (whether general or limited) and (iv) any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person;
provided, however, that "Capital Stock" shall not include any debt securities
convertible into equity securities prior to such conversion.

            "CAPITALIZED LEASE" of a Person means any lease of property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with Agreement Accounting Principles.

            "CAPITALIZED LEASE OBLIGATIONS" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be capitalized
on a balance sheet of such Person prepared in accordance with Agreement
Accounting Principles.

            "CASH EQUIVALENTS" means (i) marketable direct obligations issued or
unconditionally guaranteed by the governments of the United States and backed by
the full faith and credit of the United States government; (ii) domestic and
Eurocurrency certificates of deposit and time deposits, bankers' acceptances and
floating rate certificates of deposit issued by any commercial bank organized
under the laws of the United States, any state thereof, the District of
Columbia, any foreign bank, or its branches or agencies (fully protected against
currency fluctuations for any such deposits with a term of more than ninety (90)
days); (iii) shares of money market, mutual or similar funds having assets in
excess of $100,000,000 and the investments of which are limited to investment
grade securities (i.e., securities rated at least Baa by Moody's Investors
Service, Inc. or at least BBB by Standard & Poor's Ratings Group); and (iv)
commercial paper of United States and foreign banks and bank holding companies
and their subsidiaries and United States and foreign finance, commercial
industrial or utility companies which, at the time of acquisition, are rated A-1
(or better) by Standard & Poor's Ratings Group or P-1 (or better) by Moody's
Investors Services, Inc.; provided that the maturities of such Cash Equivalents
shall not exceed three hundred sixty-five (365) days from the date of
acquisition thereof.

            "CHANGE" means (i) any change after the date of this Agreement in
the "Risk-Based Capital Guidelines" (as defined below) excluding, for the
avoidance of doubt, the effect of any phasing in of such Risk-Based Capital
Guidelines or any other capital requirements passed prior to the date hereof, or
(ii) any adoption of or change in any other law, governmental or
quasi-governmental rule, regulation, policy, guideline, interpretation, or
directive (whether or not having the force of law) after the date of this
Agreement and having general applicability to all banks and financial
institutions within the jurisdiction in which such Lender operates which affects
the amount of capital required or expected to be maintained by any Lender or any
Lending Installation or any corporation controlling any Lender.

                                       6

<PAGE>

            "CHANGE OF CONTROL" means an event or series of events by which:

                  (a) any "person" or "group" (as such terms are used in
            Sections 13(d) and 14(d) of the exchange Act of 1934), becomes the
            "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the
            Exchange Act of 1934, provided that a person shall be deemed to have
            "beneficial ownership" of all securities that such person has the
            right to acquire, whether such right is exercisable immediately or
            only after the passage of time), directly or indirectly, of
            thirty-five percent (35%) or more of the combined voting power of
            the Borrower's outstanding Capital Stock ordinarily having the right
            to vote at an election of directors; or

                  (b) the majority of the board of directors of the Borrower
            fails to consist of Continuing Directors; or

                  (c) the Borrower consolidates with or merges into another
            corporation or conveys, transfers or leases all or substantially all
            of its property to any Person, or any corporation consolidates with
            or merges into the Borrower, in either event pursuant to a
            transaction in which the outstanding Capital Stock of the Borrower
            is reclassified or changed into or exchanged for cash, securities or
            other property; or

                  (d) the Borrower shall cease to own and control at least
            eighty percent (80%) of the economic and voting rights associated
            with all of the outstanding Capital Stock of its existing
            Subsidiaries as of the Closing Date.

            "CLOSING DATE" means June 11, 2004.

            "CODE" means the Internal Revenue Code of 1986, as amended, reformed
or otherwise modified from time to time.

            "COMMISSION" means the Securities and Exchange Commission of the
United States of America and any Person succeeding to the functions thereof.

            "COMMITMENT AND ACCEPTANCE" is defined in Section 2.26 hereof.

            "COMMITMENT INCREASE NOTICE" is defined in Section 2.26 hereof.

            "CONSOLIDATED NET WORTH" means, at a particular date, all amounts
which would be included under shareholders' equity on the consolidated balance
sheet for the Borrower and its consolidated Subsidiaries determined in
accordance with Agreement Accounting Principles, plus an amount equal to any
non-recurring expenses related to the reorganization, restructuring and
rationalization of the Borrower and its Subsidiaries when and as charged to
reduce net worth to the extent charged during the first three years following
any Permitted Acquisition up to amounts not to be in excess of $5,000,000, on a
pre-tax basis, with respect to any Permitted Acquisition, or $10,000,000, on a
pre-tax basis, in the aggregate.

            "CONSOLIDATED TANGIBLE ASSETS" means the total assets of the
Borrower and its Subsidiaries on a consolidated basis (determined in accordance
with Agreement Accounting

                                       7

<PAGE>

Principles), but excluding therefrom all items that are treated as intangibles
under Agreement Accounting Principles.

            "CONTAMINANT" means any waste, pollutant, hazardous substance, toxic
substance, hazardous waste, special waste, petroleum or petroleum-derived
substance or waste, asbestos, polychlorinated biphenyls ("PCBS"), or any
constituent of any such substance or waste, and includes but is not limited to
these terms as defined in Environmental, Health or Safety Requirements of Law.

            "CONTINGENT OBLIGATION", as applied to any Person, means any
Contractual Obligation, contingent or otherwise, of that Person with respect to
any Indebtedness of another or other obligation or liability of another,
including, without limitation, any such Indebtedness, obligation or liability of
another directly or indirectly guaranteed, endorsed (otherwise than for
collection or deposit in the ordinary course of business), co-made or discounted
or sold with recourse by that Person, or in respect of which that Person is
otherwise directly or indirectly liable, including Contractual Obligations
(contingent or otherwise) arising through any agreement to purchase, repurchase,
or otherwise acquire such Indebtedness, obligation or liability or any security
therefor, or to provide funds for the payment or discharge thereof (whether in
the form of loans, advances, stock purchases, capital contributions or
otherwise), or to maintain solvency, assets, level of income, or other financial
condition, or to make payment other than for value received. The amount of any
Contingent Obligation shall be equal to the present value of the portion of the
obligation so guaranteed or otherwise supported, in the case of known recurring
obligations, and the maximum reasonably anticipated liability in respect of the
portion of the obligation so guaranteed or otherwise supported assuming such
Person is required to perform thereunder, in all other cases.

            "CONTINUING DIRECTOR" means, with respect to any Person as of any
date of determination, any member of the board of directors of such Person who
(a) was a member of such board of directors on the date of this Agreement, or
(b) was nominated for election or elected to such board of directors with the
approval of the Continuing Directors who were members of such board at the time
of such nomination or election.

            "CONTRACTUAL OBLIGATION", as applied to any Person, means any
provision of any equity or debt securities issued by that Person or any
indenture, mortgage, deed of trust, security agreement, pledge agreement,
guaranty, contract, undertaking, agreement or instrument, in any case in
writing, to which that Person is a party or by which it or any of its properties
is bound, or to which it or any of its properties is subject.

            "CONTROLLED GROUP" means the group consisting of (i) any corporation
which is a member of the same controlled group of corporations (within the
meaning of Section 414(b) of the Code) as the Borrower; (ii) a partnership or
other trade or business (whether or not incorporated) which is under common
control (within the meaning of Section 414(c) of the Code) with the Borrower;
and (iii) a member of the same affiliated service group (within the meaning of
Section 414(m) of the Code) as the Borrower, any corporation described in clause
(i) above or any partnership or trade or business described in clause (ii)
above.

                                       8

<PAGE>

            "CONTROLLED SUBSIDIARY" of any Person means a Subsidiary of such
Person (i) ninety percent (90%) or more of the total Equity Interests or other
ownership interests of which (other than directors' qualifying shares) shall at
the time be owned by such Person or by one or more wholly-owned Subsidiaries of
such Person and (ii) of which such Person possesses, directly or indirectly, the
power to direct or cause the direction of the management or policies, whether
through the ownership of voting securities, by agreement or otherwise.

            "CURE LOAN" is defined in Section 9.2(iii) hereof.

            "CUSTOMARY PERMITTED LIENS" means:

                  (i) Liens (other than Environmental Liens and Liens in favor
            of the IRS or the PBGC) with respect to the payment of taxes,
            assessments or governmental charges in all cases which are not yet
            due or (if foreclosure, distrait, sale or other similar proceedings
            shall not have been commenced or any such proceeding after being
            commenced is stayed) which are being contested in good faith by
            appropriate proceedings properly instituted and diligently conducted
            and with respect to which adequate reserves or other appropriate
            provisions are being maintained in accordance with Agreement
            Accounting Principles;

                  (ii) statutory Liens of landlords and Liens of suppliers,
            mechanics, carriers, materialmen, warehousemen or workmen and other
            similar Liens imposed by law created in the ordinary course of
            business for amounts not yet due or which are being contested in
            good faith by appropriate proceedings properly instituted and
            diligently conducted and with respect to which adequate reserves or
            other appropriate provisions are being maintained in accordance with
            Agreement Accounting Principles;

                  (iii) Liens (other than Environmental Liens and Liens in favor
            of the IRS or the PBGC) incurred or deposits made in the ordinary
            course of business in connection with workers' compensation,
            unemployment insurance or other types of social security benefits or
            to secure the performance of bids, tenders, sales, contracts (other
            than for the repayment of borrowed money), surety, appeal and
            performance bonds; provided that (A) all such Liens do not in the
            aggregate materially detract from the value of the Borrower's or
            such Subsidiary's assets or property taken as a whole or materially
            impair the use thereof in the operation of the businesses taken as a
            whole, and (B) all Liens securing bonds to stay judgments or in
            connection with appeals do not secure at any time an aggregate
            amount exceeding $10,000,000;

                  (iv) Liens arising with respect to zoning restrictions,
            easements, encroachments, licenses, reservations, covenants,
            rights-of-way, utility easements, building restrictions and other
            similar charges, restrictions or encumbrances on the use of real
            property which do not in any case materially detract from the value
            of the property subject thereto or materially interfere with the
            ordinary use or occupancy of the real property or with the ordinary
            conduct of the business of the Borrower or any of its Subsidiaries;

                  (v) Liens of attachment or judgment with respect to judgments,
            writs or warrants of attachment, or similar process against the
            Borrower or any of its Subsidiaries which do not constitute a
            Default under Section 8.1(H) hereof; and

                                       9

<PAGE>

                  (vi) any interest or title of the lessor in the property
            subject to any operating lease entered into by the Borrower or any
            of its Subsidiaries in the ordinary course of business.

            "DEFAULT" means an event described in Article VIII hereof.

            "DISQUALIFIED STOCK" means any Capital Stock that, by its terms (or
by the terms of any security into which it is convertible or for which it is
exchangeable), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at
the option of the holder thereof, in whole or in part, on or prior to the date
that is ninety-one (91) days after the Revolving Loan Termination Date.

            "DOL" means the United States Department of Labor and any Person
succeeding to the functions thereof.

            "DOLLAR" and "$" means dollars in the lawful currency of the United
States of America.

            "DOLLAR AMOUNT" of any currency at any date shall mean (i) the
amount of such currency if such currency is Dollars or (ii) the Equivalent
Amount of Dollars if such currency is any currency other than Dollars.

            "DOMESTIC INCORPORATED SUBSIDIARY" means a Subsidiary of the
Borrower organized under the laws of a jurisdiction located in the United States
of America.

            "EBITDA" means, for any period, on a consolidated basis for the
Borrower and its Subsidiaries, the sum of the amounts for such period, without
duplication, of (i) Net Income, plus (ii) Interest Expense to the extent
deducted in computing Net Income, plus (iii) charges against income for foreign,
federal, state and local taxes to the extent deducted in computing Net Income,
plus (iv) depreciation expense to the extent deducted in computing Net Income,
plus (v) amortization expense, including, without limitation, amortization of
goodwill and other intangible assets to the extent deducted in computing Net
Income, plus (vi) other non-cash charges classified as long-term deferrals in
accordance with Agreement Accounting Principles to the extent deducted in
computing Net Income, plus (vii) other extraordinary non-cash charges to the
extent deducted in computing Net Income, minus (viii) other extraordinary
non-cash credits to the extent added in computing Net Income, plus (ix)
nonrecurring after-tax losses (or minus nonrecurring after-tax gains), plus (x)
an amount equal to the amount of any reduction of Net Income for such period
attributable to the adjustment to the value of assets made in connection with
any Permitted Acquisition, plus (xi) an amount equal to any non-cash write-down
of assets made as a result of integration and rationalization related to
acquisitions made at any time within the first three fiscal years after the
Closing Date plus (xii) any non-recurring expenses related to the
reorganization, restructuring and rationalization of the Borrower and its
Subsidiaries which are charged to operating expenses when and as charged during
the first three fiscal years following any Permitted Acquisition up to amounts
not to be in excess of $5,000,000, on a pre-tax basis, with respect to any
Permitted Acquisition, or $10,000,000, on a pre-tax basis, in the aggregate, to
the extent such charges are deducted in computing Net Income. EBITDA shall be
calculated on a pro forma basis giving effect to acquisitions and Asset Sales on
a last twelve (12) months' basis.

                                       10

<PAGE>

            "ELIGIBLE CURRENCY" means any currency other than Dollars with
respect to which the Agent or the Borrower has not given notice in accordance
with Section 2.23 and that is readily available, freely traded, in which
deposits are customarily offered to banks in the London interbank market,
convertible into Dollars in the international interbank market available to the
Lenders in such market and as to which an Equivalent Amount may be readily
calculated. If, after the designation by the Lenders of any currency as an
Agreed Currency or Alternate Currency, currency control or other exchange
regulations are imposed in the country in which such currency is issued with the
result that different types of such currency are introduced, such country's
currency is, in the determination of the Agent, no longer readily available or
freely traded or (ii) as to which, in the determination of the Agent, an
Equivalent Amount is not readily calculable (each of clause (i) and (ii), a
"DISQUALIFYING EVENT"), then the Agent shall promptly notify the Lenders and the
Borrower, and such country's currency shall no longer be an Agreed Currency or
Alternate Currency until such time as the Disqualifying Event(s) no longer
exist, but in any event within five (5) Business Days of receipt of such notice
from the Agent, the Borrower shall repay all Loans in such currency to which the
Disqualifying Event applies or convert such Loan into Loans in Dollars or
another Agreed Currency or Alternate Currency, subject to the other terms
contained in Articles II and IV.

            "ENVIRONMENTAL, HEALTH OR SAFETY REQUIREMENTS OF LAW" means all
Requirements of Law derived from or relating to foreign, federal, state and
local laws or regulations relating to or addressing pollution or protection of
the environment, or protection of worker health or safety, including, but not
limited to, the Comprehensive Environmental Response, Compensation and Liability
Act, 42 U.S.C. Section 9601 et seq., the Occupational Safety and Health Act of
1970, 29 U.S.C. Section 651 et seq., and the Resource Conservation and Recovery
Act of 1976, 42 U.S.C. Section 6901 et seq., in each case including any
amendments thereto, any successor statutes, and any regulations or guidance
promulgated thereunder, and any state or local equivalent thereof.

            "ENVIRONMENTAL LIEN" means a lien in favor of any Governmental
Authority for (a) any liability under Environmental, Health or Safety
Requirements of Law, or (b) damages arising from, or costs incurred by such
Governmental Authority in response to, a Release or threatened Release of a
Contaminant into the environment.

            "ENVIRONMENTAL PROPERTY TRANSFER ACT" means any applicable
requirement of law that conditions, restricts, prohibits or requires any
notification or disclosure triggered by the closure of any property or the
transfer, sale or lease of any property or deed or title for any property for
environmental reasons, including, but not limited to, any so-called "Industrial
Site Recovery Act" or "Responsible Property Transfer Act."

            "EQUIPMENT" means all of the Borrower's present and future (i)
equipment, including, without limitation, machinery, manufacturing,
distribution, selling, data processing and office equipment, assembly systems,
tools, molds, dies, fixtures, appliances, furniture, furnishings, vehicles,
vessels, aircraft, aircraft engines, and trade fixtures, (ii) other tangible
personal property (other than the Borrower's Inventory), and (iii) any and all
accessions, parts and appurtenances attached to any of the foregoing or used in
connection therewith, and any substitutions therefor and replacements, products
and proceeds thereof.

                                       11

<PAGE>

            "EQUITY INTERESTS" means Capital Stock and all warrants, options or
other rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock). Equity Interests will not
include any Incentive Arrangements or obligations or payments thereunder.

            "EQUIVALENT AMOUNT" of any currency with respect to any amount of
Dollars at any date shall mean the equivalent in such currency of such amount of
Dollars, calculated on the basis of the arithmetic mean of the buy and sell spot
rates of exchange of the Agent or Alternate Currency Bank, as applicable, in the
London interbank market (or other market where the Agent's or Alternate Currency
Bank's, as applicable, foreign exchange operations in respect of such currency
are then being conducted) for such other currency at or about 11:00 a.m. (local
time) two (2) Business Days prior to the date on which such amount is to be
determined, rounded up to the nearest amount of such currency as determined by
the Alternate Currency Bank from time to time; provided, however, that if at the
time of any such determination, for any reason, no such spot rate is being
quoted, the Agent or Alternate Currency Bank's, as applicable, may use any
reasonable method it deems appropriate to determine such amount, and such
determination shall be conclusive absent manifest error.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time including (unless the context otherwise requires)
any rules or regulations promulgated thereunder.

            "EURO" means the Euro referred to in the Council Regulation (EC) No.
1103/97 dated 17 June 1997 passed by the Council of the European Union, or, if
different, the then lawful currency of the member states of the European Union
that participate in the third stage of the Economic and Monetary Union.

            "EUROCURRENCY BASE RATE" means, with respect to a Euromoney Rate
Advance for the relevant Interest Period, the applicable British Bankers'
Association LIBOR rate for deposits in the applicable Agreed Currency as
reported by any generally recognized financial information service as of 11:00
a.m. (London time) two (2) Business Days prior to the first day of such Interest
Period, and having a maturity equal to such Interest Period, adjusted for
Reserves; provided that, if no such British Bankers' Association LIBOR rate is
available to the Agent, the applicable Eurocurrency Base Rate for the relevant
Interest Period shall instead be the rate determined by the Agent to be the rate
at which Bank One or one of its affiliate banks offers to place deposits in such
Agreed Currency with first-class banks in the London interbank market at
approximately 11:00 a.m. (London time) two (2) Business Days prior to the first
day of such Interest Period, in the approximate amount of Bank One's relevant
Eurocurrency Rate Loan and having a maturity equal to such Interest Period.

            "EUROCURRENCY PAYMENT OFFICE" of the Agent shall mean, for each of
the Agreed Currencies, any agency, branch or Affiliate of the Agent, specified
as the "Eurocurrency Payment Office" for such Agreed Currency in Exhibit A-1
hereto or such other agency, branch, Affiliate or correspondence bank of the
Agent, as it may from time to time specify to the Borrower and each Lender as
its Eurocurrency Payment Office.

                                       12

<PAGE>

            "EUROCURRENCY RATE" means, with respect to a Eurocurrency Rate Loan
for the relevant Interest Period, the Eurocurrency Base Rate applicable to such
Interest Period plus the then Applicable Eurocurrency Margin.

            "EUROCURRENCY RATE ADVANCE" means an Advance which bears interest at
the Eurocurrency Rate.

            "EUROCURRENCY RATE LOAN" means a Loan made on a fully syndicated
basis pursuant to Section 2.2, which bears interest at the Eurocurrency Rate.

            "FEDERAL FUNDS EFFECTIVE RATE" means, for any day, an interest rate
per annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations at approximately 10:00 a.m. (Chicago
time) on such day on such transactions received by the Agent from three Federal
funds brokers of recognized standing selected by the Agent in its sole
discretion.

            "FINANCING" means, with respect to any Person, the issuance or sale
by such Person of any Equity Interests of such Person or any Subordinated
Indebtedness.

            "FIXED CHARGE COVERAGE RATIO" is defined in Section 7.4(A) hereof.

            "FLOATING RATE" means, for any day for any Loan, a rate per annum
equal to the Alternate Base Rate for such day, changing when and as the
Alternate Base Rate changes, plus the then Applicable Floating Rate Margin.

            "FLOATING RATE ADVANCE" means an Advance which bears interest at the
Floating Rate.

            "FLOATING RATE LOAN" means a Loan, or portion thereof, which bears
interest at the Floating Rate.

            "FOREIGN INCORPORATED SUBSIDIARY" means a Subsidiary of the Borrower
which is not a Domestic Incorporated Subsidiary.

            "FOREIGN SUBSIDIARY INVESTMENT" means the sum of (a) all
intercompany loans made on or after the Closing Date from either the Borrower or
any Domestic Incorporated Subsidiary to any Foreign Incorporated Subsidiary; (b)
all Investments made on or after the Closing Date by either the Borrower or any
Domestic Incorporated Subsidiary in any Foreign Incorporated Subsidiary; and (c)
an amount equal to the net benefit derived by the Foreign Incorporated
Subsidiaries resulting from any non-arms length transactions, or any other
transfer of assets conducted other than in the ordinary course of business,
between the Borrower and/or any Domestic Incorporated Subsidiary, on the one
hand, and such Foreign Incorporated Subsidiaries, on the other hand.

            "GOVERNMENTAL ACTS" is defined in Section 3.10(A) hereof.

                                       13

<PAGE>

            "GOVERNMENTAL AUTHORITY" means any nation or government, any
federal, state, local or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
authority or functions of or pertaining to government, including any authority
or other quasi-governmental entity established to perform any of such functions.

            "GROSS NEGLIGENCE" means recklessness, or actions taken or omitted
with conscious indifference to or the complete disregard of consequences. Gross
Negligence does not mean the absence of ordinary care or diligence, or an
inadvertent act or inadvertent failure to act. If the term "gross negligence" is
used with respect to the Agent or any Lender or any indemnitee in any of the
other Loan Documents, it shall have the meaning set forth herein.

            "GUARANTY" means each of (i) those certain Guaranties executed from
time to time by each of the Domestic Incorporated Subsidiaries of the Borrower
in favor of the Agent for the benefit of itself and the Holders of Obligations
and, (ii) the guaranty by the Borrower of all of the Obligations of the
Alternate Currency Borrowers pursuant to this Agreement and the Alternate
Currency Addenda, in each case as amended, restated, supplemented or otherwise
modified from time to time, in substantially the form of Exhibit I attached
hereto.

            "HEDGING AGREEMENTS" is defined in Section 7.3(P) hereof.

            "HEDGING OBLIGATIONS" of a Person means any and all obligations of
such Person, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor), under (i) any and all
agreements, devices or arrangements designed to protect at least one of the
parties thereto from the fluctuations of interest rates, commodity prices,
exchange rates or forward rates applicable to such party's assets, liabilities
or exchange transactions, including, but not limited to, dollar-denominated or
cross-currency interest rate exchange agreements, forward currency exchange
agreements, interest rate cap or collar protection agreements, forward rate
currency or interest rate options, puts and warrants, and (ii) any and all
cancellations, buy backs, reversals, terminations or assignments of any of the
foregoing.

            "HOLDERS OF OBLIGATIONS" means the holders of the Obligations from
time to time and shall include their respective successors, transferees and
assigns.

            "INCENTIVE ARRANGEMENTS" means any stock appreciation rights,
"phantom" stock plans, employment agreements, non-competition agreements,
subscription and stockholders agreements and other incentive and bonus plans and
similar arrangements made in connection with the retention of executives,
officers or employees of the Borrower.

            "INDEBTEDNESS" of a person means, without duplication, such person's
(i) obligations for borrowed money, including, without limitation, subordinated
indebtedness, (ii) obligations representing the deferred purchase price of
property or services (other than accounts payable arising in the ordinary course
of such person's business payable on terms customary in the trade and other than
earn-outs or other similar forms of contingent purchase prices), (iii)
obligations, whether or not assumed, secured by liens on or payable out of the
proceeds or production from property now or hereafter owned or acquired by such
person, (iv) obligations which are

                                       14

<PAGE>

evidenced by notes, acceptances, or other instruments, (v) Capitalized Lease
Obligations, (vi) outstanding principal balances (representing securitized but
unliquidated assets) under asset securitization agreements (including, without
limitation, the outstanding principal balance of accounts receivable under
receivables transactions) and (vii) the implied debt component of synthetic
leases of which such person is lessee or any other off-balance sheet financing
arrangements (including, without limitation, any such arrangements giving rise
to any Off-Balance Sheet Liabilities).

            "INDEMNIFIED MATTERS" is defined in Section 10.7(B) hereof.

            "INDEMNITEES" is defined in Section 10.7(B) hereof.

            "INTEREST EXPENSE" means, for any period, the total interest expense
of the Borrower and its consolidated Subsidiaries, whether paid or accrued
(including the interest component of Capitalized Leases, commitment fees and
fees for stand-by letters of credit, the discount with respect to asset
securitization agreements and the implied interest component of synthetic
leases), all as determined in conformity with Agreement Accounting Principles.
Interest Expense shall not include any interest which in accordance with
Agreement Accounting Principals has been capitalized.

            "INTEREST PERIOD" means, (i) any Alternate Currency Interest Period
and (ii) with respect to a Eurocurrency Rate Loan, a period of one (1) or two
(2) weeks or one (1), two (2), three (3) months, six (6) or nine (9) months,
and, to the extent available to all of the Lenders, upon request of the
Borrower, and only if the Lenders, in their discretion, shall agree, twelve (12)
months, commencing on a Business Day selected by the Borrower on which a
Eurocurrency Rate Advance is made to the Borrower pursuant to this Agreement.
Such Interest Period shall end on (but exclude) the day which corresponds
numerically to such date one, two, three or six months and, if applicable,
twelve months thereafter; provided, however, that if there is no such
numerically corresponding day in such next, second, third or sixth and, if
applicable, twelfth succeeding month and, if applicable, twelfth succeeding
month, such Interest Period shall end on the last Business Day of such next,
second, third or sixth succeeding month. If an Interest Period would otherwise
end on a day which is not a Business Day, such Interest Period shall end on the
next succeeding Business Day, provided, however, that if said next succeeding
Business Day falls in a new calendar month, such Interest Period shall end on
the immediately preceding Business Day.

            "INVENTORY" shall mean any and all goods, including, without
limitation, goods in transit, wheresoever located, whether now owned or
hereafter acquired by the Borrower or any of its Subsidiaries, which are held
for sale or lease, furnished under any contract of service or held as raw
materials, work in process or supplies, and all materials used or consumed in
the business of Borrower or any of its Subsidiaries, and shall include all
right, title and interest of the Borrower or any of its Subsidiaries in any
property the sale or other disposition of which has given rise to Receivables
and which has been returned to or repossessed or stopped in transit by the
Borrower or any of its Subsidiaries.

                                       15

<PAGE>

            "INVESTMENT" means, with respect to any Person, (i) any purchase or
other acquisition by that Person of any Indebtedness, Equity Interests or other
securities, or of a beneficial interest in any Indebtedness, Equity Interests or
other securities, issued by any other Person, (ii) any purchase by that Person
of all or substantially all of the assets of a business (whether of a division,
branch, unit operation, or otherwise) conducted by another Person, and (iii) any
loan, advance (other than deposits with financial institutions available for
withdrawal on demand, prepaid expenses, accounts receivable, advances to
employees and similar items made or incurred in the ordinary course of business)
or capital contribution by that Person to any other Person, including all
Indebtedness to such Person arising from a sale of property by such Person other
than in the ordinary course of its business.

            "IRS" means the Internal Revenue Service and any Person succeeding
to the functions thereof.

            "ISSUING BANKS" means Bank One or any of its Affiliates in its
separate capacity as an issuer of Letters of Credit pursuant to Section 3.1. The
designation of any Lender as an Issuing Bank after the date hereof shall be
subject to the prior written consent of the Agent.

            "LAST TWELVE-MONTH PERIOD" is defined in Section 7.4(A) hereof.

            "L/C DOCUMENTS" is defined in Section 3.4 hereof.

            "L/C DRAFT" means a draft drawn on an Issuing Bank pursuant to a
Letter of Credit.

            "L/C INTEREST" shall have the meaning ascribed to such term in
Section 3.6 hereof.

            "L/C OBLIGATIONS" means, without duplication, an amount equal to the
sum of (i) the aggregate of the Dollar Amount then available for drawing under
each of the Letters of Credit, (ii) the Dollar Amount equal to the face amount
of all outstanding L/C Drafts corresponding to the Letters of Credit, which L/C
Drafts have been accepted by the applicable Issuing Bank, (iii) the aggregate
outstanding Dollar Amount of all Reimbursement Obligations at such time and (iv)
the aggregate Dollar Amount equal to the face amount of all Letters of Credit
requested by the Borrower but not yet issued (unless the request for an unissued
Letter of Credit has been denied).

            "LENDERS" means the lending institutions listed on the signature
pages of this Agreement and their respective successors and assigns.

            "LENDER INCREASE NOTICE" is defined in Section 2.26 hereof.

            "LENDING INSTALLATION" means, with respect to a Lender or the Agent,
any office, branch, subsidiary or affiliate of such Lender or the Agent.

            "LETTER OF CREDIT" means the letters of credit to be (a) issued by
the Issuing Banks pursuant to Section 3.1 hereof or (b) deemed issued by the
Issuing Banks pursuant to Section 3.2 hereof.

            "LEVERAGE RATIO" is defined in Section 7.4(B) hereof.

                                       16

<PAGE>

            "LIEN" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or security agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, the interest of a vendor or lessor
under any conditional sale, Capitalized Lease or other title retention
agreement).

            "LOAN(S)" means, with respect to a Lender, such Lender's portion of
any Advance made pursuant to Section 2.2 hereof, as applicable, and in the case
of the Swing Line Bank, any Swing Line Loan made pursuant to Section 2.3 hereof,
and in the case of any Alternate Currency Loan, any Alternate Currency Loan made
pursuant to Section 2.21 and the applicable Alternate Currency Addendum, and
collectively, all Revolving Loans, Swing Line Loans and Alternate Currency
Loans.

            "LOAN ACCOUNT" is defined in Section 2.13(A) hereof.

            "LOAN DOCUMENTS" means this Agreement, each Assumption Letter, each
Alternate Currency Addendum, that certain Letter Agreement, dated as of April
29, 2004, by and among the Borrower, the Agent and the Arranger, the Guaranty
and all other documents, instruments, notes and agreements executed in
connection therewith or contemplated thereby, as the same may be amended,
restated or otherwise modified and in effect from time to time.

            "MAINTENANCE CAPITAL EXPENDITURES" means, with respect to any
period, 50% of depreciation expense (to the extent such expense is deducted from
revenues in determining Net Income) during such period.

            "MARGIN STOCK" shall have the meaning ascribed to such term in
Regulation U.

            "MATERIAL ADVERSE EFFECT" means a material adverse effect upon (a)
the business, condition (financial or otherwise), operations, performance,
properties or prospects of the Borrower, or the Borrower and its Subsidiaries,
taken as a whole, (b) the collective ability of the Borrower or any of its
Subsidiaries to perform their respective obligations under the Loan Documents in
any material respect, or (c) the ability of the Lenders or the Agent to enforce
in any material respect the Obligations.

            "MAXIMUM EUROCURRENCY AMOUNT" means $15,000,000 or such other
greater amount as the Borrower may from time to time designate in writing to the
Agent provided such designated amount shall be agreed to by the Required
Lenders.

            "MEASUREMENT PERIOD" is defined in Section 7.4(A) hereof.

            "MULTIEMPLOYER PLAN" means a "Multiemployer Plan" as defined in
Section 4001(a)(3) of ERISA which is, or within the immediately preceding six
(6) years was, contributed to by either the Borrower or any member of the
Controlled Group.

            "NET CASH PROCEEDS" means, with respect to any Asset Sale or
Financing by any Person, (a) cash or Cash Equivalents (freely convertible into
Dollars) received by such Person or any Subsidiary of such Person from such
Asset Sale (including cash received as consideration for the assumption or
incurrence of liabilities incurred in connection with or in anticipation of such

                                       17

<PAGE>

Asset Sale) or Financing, after (i) provision for all income or other taxes
measured by or resulting from such Asset Sale or Financing, (ii) payment of all
brokerage commissions and other fees and expenses and commissions related to
such Asset Sale or Financing, (iii) repayment of Indebtedness (and any premium
or penalty thereon) secured by a Lien on any asset disposed of in such Asset
Sale or which is or may be required (by the express terms of the instrument
governing such Indebtedness or by applicable law) to be repaid in connection
with such Asset Sale (including payments made to obtain or avoid the need for
the consent of any holder of such Indebtedness), and (iv) deduction of
appropriate amounts to be provided by such Person or a Subsidiary of such Person
as a reserve, in accordance with Agreement Accounting Principles, against any
liabilities associated with the assets sold or disposed of in such Asset Sale
and retained by such Person or a Subsidiary of such Person after such Asset
Sale, including, without limitation, pension and other post-employment benefit
liabilities and liabilities related to environmental matters or against any
indemnification obligations associated with the assets sold or disposed of in
such Asset Sale; and (b) cash or Cash Equivalents payments in respect of any
other consideration received by such Person or any Subsidiary of such Person
from such Asset Sale or Financing upon receipt of such cash payments by such
Person or such Subsidiary.

            "NET INCOME" means, for any period, the net income (or loss) after
taxes of the Borrower and its Subsidiaries on a consolidated basis for such
period taken as a single accounting period determined in conformity with
Agreement Accounting Principles.

            "NON PRO RATA LOAN" is defined in Section 9.2 hereof.

            "OBLIGATIONS" means all Loans, L/C Obligations, advances, debts,
liabilities, obligations, covenants and duties owing by the Borrowers or any of
their Subsidiaries to the Agent, any Lender, the Swing Line Bank, the Arranger,
any Affiliate of the Agent or any Lender, any Issuing Bank or any Indemnitee, of
any kind or nature, present or future, arising under this Agreement, the L/C
Documents, any Alternate Currency Addendum or any other Loan Document, whether
or not evidenced by any note, guaranty or other instrument, whether or not for
the payment of money, whether arising by reason of an extension of credit, loan,
guaranty, indemnification, or in any other manner, whether direct or indirect
(including those acquired by assignment), absolute or contingent, due or to
become due, now existing or hereafter arising and however acquired. The term
includes, without limitation, all interest, charges, expenses, fees, reasonable
attorneys' fees and disbursements, reasonable paralegals' fees (in each case
whether or not allowed), and any other sum chargeable to the Borrower or any of
its Subsidiaries under this Agreement or any other Loan Document.

            "OFF-BALANCE SHEET LIABILITIES" of a Person means (a) any repurchase
obligation or liability of such Person or any of its Subsidiaries with respect
to accounts or notes receivable sold by such Person or any of its Subsidiaries,
(b) any liability of such Person or any of its Subsidiaries under any sale and
leaseback transactions which do not create a liability on the consolidated
balance sheet of such Person, (c) any liability of such Person or any of its
Subsidiaries under any financing lease or so-called "synthetic" lease
transaction, or (d) any obligations of such Person or any of its Subsidiaries
arising with respect to any other transaction which is the functional equivalent
of or takes the place of borrowing but which does not constitute a liability on
the consolidated balance sheets of such Person and its Subsidiaries.

                                       18

<PAGE>

            "OTHER TAXES" is defined in Section 2.15(E)(ii) hereof.

            "PARTICIPANTS" is defined in Section 13.2(A) hereof.

            "PAYMENT DATE" means the last Business Day of each March, June,
September and December and the Revolving Loan Termination Date.

            "PBGC" means the Pension Benefit Guaranty Corporation, or any
successor thereto.

            "PERMITTED ACQUISITION" is defined in Section 7.3(G) hereof.

            "PERMITTED EXISTING CONTINGENT OBLIGATIONS" means the Contingent
Obligations of the Borrower and its Subsidiaries identified as such on Schedule
1.1.4 to this Agreement.

            "PERMITTED EXISTING INDEBTEDNESS" means the Indebtedness of the
Borrower and its Subsidiaries identified as such on Schedule 1.1.1 to this
Agreement.

            "PERMITTED EXISTING INVESTMENTS" means the Investments of the
Borrower and its Subsidiaries identified as such on Schedule 1.1.2 to this
Agreement.

            "PERMITTED EXISTING LIENS" means the Liens on assets of the Borrower
and its Subsidiaries identified as such on Schedule 1.1.3 to this Agreement.

            "PERMITTED FOREIGN SUBSIDIARY INVESTMENT AMOUNT" means the sum of
(i) $25,000,000 plus (ii) Investments in Foreign Incorporated Subsidiaries made
in compliance with Section 7.3(D)(xi).

            "PERMITTED PURCHASE MONEY INDEBTEDNESS" is defined in Section
7.3(A)(vii) hereof.

            "PERMITTED REFINANCING INDEBTEDNESS" means any replacement, renewal,
refinancing or extension of any Indebtedness permitted by this Agreement that
(i) does not exceed the aggregate principal amount (plus accrued interest and
any applicable premium and associated fees and expenses) of the Indebtedness
being replaced, renewed, refinanced or extended, (ii) does not have a Weighted
Average Life to Maturity at the time of such replacement, renewal, refinancing
or extension that is less than the Weighted Average Life to Maturity of the
Indebtedness being replaced, renewed, refinanced or extended, (iii) does not
rank at the time of such replacement, renewal, refinancing or extension senior
to the Indebtedness being replaced, renewed, refinanced or extended, and (iv)
does not contain terms (including, without limitation, terms relating to
security, amortization, interest rate, premiums, fees, covenants, event of
default and remedies) materially less favorable to the Borrower or to the
Lenders than those applicable to the Indebtedness being replaced, renewed,
refinanced or extended.

            "PERSON" means any individual, corporation, firm, enterprise,
partnership, trust, incorporated or unincorporated association, joint venture,
joint stock company, limited liability company or other entity of any kind, or
any government or political subdivision or any agency, department or
instrumentality thereof.

                                       19

<PAGE>

            "PLAN" means an employee benefit plan defined in Section 3(3) of
ERISA, other than a Multiemployer Plan, in respect of which the Borrower or any
member of the Controlled Group is, or within the immediately preceding six (6)
years was, an "employer" as defined in Section 3(5) of ERISA.

            "PRIME RATE" means a rate per annum equal to the prime rate of
interest announced from time to time by Bank One or its parent (which is not
necessarily the lowest rate charged to any customer), changing when and as said
prime rate changes.

            "PRO RATA SHARE" means, with respect to any Lender, the percentage
obtained by dividing (x) such Lender's Revolving Loan Commitment at such time
(in each case, as adjusted from time to time in accordance with the provisions
of this Agreement) by (y) the Aggregate Revolving Loan Commitment at such time;
provided, however, if all of the Revolving Loan Commitments are terminated
pursuant to the terms of this Agreement, then "Pro Rata Share" means the
percentage obtained by dividing (x) the sum of (A) such Lender's Revolving
Loans, plus (B) such Lender's share of the obligations to purchase
participations in Swing Line Loans, Alternate Currency Loans and Letters of
Credit, by (y) the sum of (A) the aggregate outstanding amount of all Revolving
Loans, plus (B) the aggregate outstanding amount of all Swing Line Loans, all
Alternate Currency Loans and all Letters of Credit.

            "PROPOSED NEW LENDER" is defined in Section 2.26 hereof.

            "PURCHASERS" is defined in Section 13.3(A) hereof.

            "RATE OPTION" means the Eurocurrency Rate or the Floating Rate or
the Alternate Currency Rate, as applicable.

            "RECEIVABLE(S)" means and includes all of the Borrower's presently
existing and hereafter arising or acquired accounts, accounts receivable, and
all present and future rights of the Borrower to payment for goods sold or
leased or for services rendered (except those evidenced by instruments or
chattel paper), whether or not they have been earned by performance, and all
rights in any merchandise or goods which any of the same may represent, and all
rights, title, security and guaranties with respect to each of the foregoing,
including, without limitation, any right of stoppage in transit.

            "REGISTER" is defined in Section 13.3(C) hereof.

            "REGULATION T" means Regulation T of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by and to brokers and dealers of securities for the purpose
of purchasing or carrying margin stock (as defined therein).

            "REGULATION U" means Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks, non-banks and non-broker lenders for the purpose
of purchasing or carrying Margin Stock applicable to member banks of the Federal
Reserve System.

                                       20

<PAGE>

            "REGULATION X" means Regulation X of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by foreign lenders for the purpose of purchasing or carrying
margin stock (as defined therein).

            "REIMBURSEMENT OBLIGATION" is defined in Section 3.7 hereof.

            "RELEASE" means any release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration into
the indoor or outdoor environment, including the movement of Contaminants
through or in the air, soil, surface water or groundwater.

            "RENTALS" of a Person means the aggregate fixed amounts payable by
such Person under any lease of real or personal property that has an initial or
remaining non-cancelable lease term in excess of one year but does not include
any amounts payable under Capitalized Leases of such Person.

            "REPLACEMENT LENDER" is defined in Section 2.20 hereof.

            "REPORTABLE EVENT" means a reportable event as defined in Section
4043 of ERISA and the regulations issued under such section, with respect to a
Plan, excluding, however, such events as to which the PBGC by regulation waived
the requirement of Section 4043(a) of ERISA that it be notified within thirty
(30) days after such event occurs, provided, however, that a failure to meet the
minimum funding standards of Section 412 of the Code and of Section 302 of ERISA
shall be a Reportable Event regardless of the issuance of any such waiver of the
notice requirement in accordance with either Section 4043(a) of ERISA or Section
412(d) of the Code.

            "REQUIRED LENDERS" means at least two Lenders whose Pro Rata Shares,
in the aggregate, are greater than fifty percent (50%); provided, however, that,
if any of the Lenders shall have failed to fund its Pro Rata Share of (i) any
Revolving Loan requested by the Borrower, (ii) any Revolving Loan required to be
made in connection with reimbursement for any L/C Obligations, (iii) any
participation in any Alternate Currency Loan pursuant to Section 2.21(E), or
(iv) any Swing Line Loan as requested by the Agent, which such Lenders are
obligated to fund under the terms of this Agreement, and any such failure has
not been cured, then for so long as such failure continues, "REQUIRED LENDERS"
means at least two Lenders (excluding all Lenders whose failure to fund their
respective Pro Rata Shares of such Revolving Loans or Swing Line Loans or
Alternate Currency Loans has not been so cured) whose Pro Rata Shares represent
greater than fifty percent (50%) of the aggregate Pro Rata Shares of such
Lenders; provided further, however, that, if the Revolving Loan Commitments have
been terminated pursuant to the terms of this Agreement, "REQUIRED LENDERS"
means Lenders (without regard to such Lenders' performance of their respective
obligations hereunder) whose aggregate ratable shares (stated as a percentage)
of the aggregate outstanding principal balance of all Loans and L/C Obligations
are greater than fifty percent (50%); provided, further, however, that if any
Lender shall have a Pro Rata Share or aggregate ratable share (stated as a
percentage), as applicable, greater than fifty percent (50%), "REQUIRED LENDERS"
shall mean such Lender plus at least one additional Lender.

                                       21

<PAGE>

            "REQUIREMENTS OF LAW" means, as to any Person, the charter and
by-laws or other organizational or governing documents of such Person, and any
law, 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
including, without limitation, the Securities Act of 1933, the Securities
Exchange Act of 1934, Regulations T, U and X, ERISA, the Fair Labor Standards
Act, the Worker Adjustment and Retraining Notification Act, Americans with
Disabilities Act of 1990, and any certificate of occupancy, zoning ordinance,
building, environmental or land use requirement or permit or environmental,
labor, employment, occupational safety or health law, rule or regulation,
including Environmental, Health or Safety Requirements of Law.

            "RESERVES" shall mean the maximum reserve requirement, as prescribed
by the Board of Governors of the Federal Reserve System (or any successor) with
respect to "Eurocurrency liabilities" or in respect of any other category of
liabilities which includes deposits by reference to which the interest rate on
Eurocurrency Rate Loans is determined or category of extensions of credit or
other assets which includes loans by a non-United States office of any Lender to
United States residents.

            "RESTRICTED PAYMENT" means (i) any dividend or other distribution,
direct or indirect, on account of any Equity Interests of the Borrower now or
hereafter outstanding, except a dividend payable solely in the Borrower's
Capital Stock (other than Disqualified Stock) or in options, warrants or other
rights to purchase such Capital Stock, (ii) any redemption, retirement, purchase
or other acquisition for value, direct or indirect, of any Equity Interests of
the Borrower or any of its Subsidiaries now or hereafter outstanding, other than
in exchange for, or out of the proceeds of, the substantially concurrent sale
(other than to a Subsidiary of the Borrower) of other Equity Interests of the
Borrower (other than Disqualified Stock), (iii) any redemption, purchase,
retirement, defeasance, prepayment or other acquisition for value, direct or
indirect, of any Indebtedness subordinated to the Obligations, and (iv) any
payment of a claim for the rescission of the purchase or sale of, or for
material damages arising from the purchase or sale of, any Indebtedness (other
than the Obligations) or any Equity Interests of the Borrower, or any of its
Subsidiaries, or of a claim for reimbursement, indemnification or contribution
arising out of or related to any such claim for damages or rescission.

            "REVOLVING CREDIT AVAILABILITY" means, at any particular time, the
amount by which (x) the Aggregate Revolving Loan Commitment at such time exceeds
(y) the Dollar Amount of the Revolving Credit Obligations outstanding at such
time.

            "REVOLVING CREDIT OBLIGATIONS" means, at any particular time, the
sum of (i) the outstanding principal Dollar Amount of the Revolving Loans at
such time, plus (ii) the outstanding principal amount of the Swing Line Loans at
such time, plus (iii) the outstanding L/C Obligations at such time, plus (iv)
the Dollar Amount of the outstanding principal amount of the Alternate Currency
Loans at such time.

            "REVOLVING LOAN" is defined in Section 2.2 hereof.

                                       22

<PAGE>

            "REVOLVING LOAN COMMITMENT" means, for each Lender, the obligation
of such Lender to make Revolving Loans and to purchase participations in Letters
of Credit and to participate in Swing Line Loans and Alternate Currency Loans
not exceeding the amount set forth on Exhibit A to this Agreement opposite its
name thereon under the heading "Revolving Loan Commitment" or the signature page
of the assignment and acceptance by which it became a Lender, as such amount may
be modified from time to time pursuant to the terms of this Agreement or to give
effect to any applicable assignment and acceptance.

            "REVOLVING LOAN TERMINATION DATE" means June 11, 2009.

            "RISK-BASED CAPITAL GUIDELINES" means (i) the risk-based capital
guidelines in effect in the United States on the date of this Agreement,
including transition rules, and (ii) the corresponding capital regulations
promulgated by regulatory authorities outside the United States implementing the
July 1988 report of the Basle Committee on Banking Regulation and Supervisory
Practices entitled "International Convergence of Capital Measurements and
Capital Standards," including transition rules, and any amendments to such
regulations adopted prior to the date of this Agreement.

            "SECURITIES ACT" means the Securities Act of 1933, as amended from
time to time.

            "SINGLE EMPLOYER PLAN" means a Plan maintained by the Borrower or
any member of the Controlled Group for employees of the Borrower or any member
of the Controlled Group.

            "SOLVENT" means, when used with respect to any Person, that at the
time of determination:

                  (i) the fair value of its assets (both at fair valuation and
            at present fair saleable value) is equal to or in excess of the
            total amount of its liabilities, including, without limitation,
            contingent liabilities; and

                  (ii) it is then able and expects to be able to pay its debts
            as they mature; and

                  (iii) it has capital sufficient to carry on its business as
            conducted and as proposed to be conducted.

With respect to contingent liabilities (such as litigation, guarantees and
pension plan liabilities), such liabilities shall be computed at the amount
which, in light of all the facts and circumstances existing at the time,
represent the amount which can be reasonably be expected to become an actual or
matured liability.

            "SUBORDINATED INDEBTEDNESS" of any Person means any Indebtedness of
such Person the payment of which is subordinated to the payment of the
Obligations to the written satisfaction of the Required Lenders.

            "SUBSIDIARY" of a Person means (i) any corporation more than 50% of
the outstanding securities having ordinary voting power of which shall at the
time be owned or controlled, directly or indirectly, by such Person or by one or
more of its Subsidiaries or by such Person and

                                       23

<PAGE>

one or more of its Subsidiaries, or (ii) any partnership, association, joint
venture or similar business organization more than fifty percent (50%) of the
ownership interests having ordinary voting power of which shall at the time be
so owned or controlled. Unless otherwise expressly provided, all references
herein to a "Subsidiary" means a Subsidiary of the Borrower.

            "SWING LINE BANK" means Bank One or any other Lender as a successor
Swing Line Bank pursuant to the terms hereof.

            "SWING LINE COMMITMENT" means the obligation of the Swing Line Bank
to make Swing Line Loans up to a maximum principal amount of $15,000,000 at any
one time outstanding.

            "SWING LINE LOAN" means a Loan made available to the Borrower by the
Swing Line Bank pursuant to Section 2.3 hereof.

            "TAXES" is defined in Section 2.15(E)(i) hereof.

            "TERMINATION DATE" means the earlier of (a) the Revolving Loan
Termination Date, and (b) the date of termination in whole of the Aggregate
Revolving Loan Commitment pursuant to Section 2.6 hereof or the Revolving Loan
Commitments pursuant to Section 9.1 hereof.

            "TERMINATION EVENT" means (i) a Reportable Event with respect to any
Benefit Plan; (ii) the withdrawal of the Borrower or any member of the
Controlled Group from a Benefit Plan during a plan year in which the Borrower or
such Controlled Group member was a "substantial employer" as defined in Section
4001(a)(2) of ERISA or the cessation of operations which results in the
termination of employment of twenty percent (20%) of Benefit Plan participants
who are employees of the Borrower or any member of the Controlled Group; (iii)
the imposition of an obligation on the Borrower or any member of the Controlled
Group under Section 4041 of ERISA to provide affected parties written notice of
intent to terminate a Benefit Plan in a distress termination described in
Section 4041(c) of ERISA; (iv) the institution by the PBGC of proceedings to
terminate a Benefit Plan; (v) any event or condition which might constitute
grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Benefit Plan; or (vi) the partial or complete
withdrawal of the Borrower or any member of the Controlled Group from a
Multiemployer Plan.

            "TRANSFEREE" is defined in Section 13.5 hereof.

            "TYPE" means, with respect to any Loan, its nature as a Floating
Rate Loan or a Eurocurrency Rate Loan.

            "UNFUNDED LIABILITIES" means (i) in the case of Single Employer
Plans, the amount (if any) by which the present value of all vested
nonforfeitable benefits under all Single Employer Plans exceeds the fair market
value of all such Plan assets allocable to such benefits, all determined as of
the then most recent valuation date for such Plans, and (ii) in the case of
Multiemployer Plans, the withdrawal liability that would be incurred by the
Controlled Group if all members of the Controlled Group completely withdrew from
all Multiemployer Plans.

                                       24

<PAGE>

            "UNMATURED DEFAULT" means an event which, but for the lapse of time
or the giving of notice, or both, would constitute a Default.

            "WEIGHTED AVERAGE LIFE TO MATURITY" means when applied to any
Indebtedness at any date, the number of years obtained by dividing (i) the sum
of the products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect thereof, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between
such date and the making of such payment, by (ii) the then outstanding principal
amount of such Indebtedness.

            "WORKING CAPITAL" means, as at any date of determination and in
conformity with Agreement Accounting Principles, the excess, if any, of (i) the
Borrower's consolidated current assets, except cash and Cash Equivalents, over
(ii) the Borrower's consolidated current liabilities, except current maturities
of long-term Indebtedness and Revolving Credit Obligations as of such date and
all accrued interest as of such date.

            The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms. Any accounting terms used in
this Agreement which are not specifically defined herein shall have the meanings
customarily given them in accordance with generally accepted accounting
principles in existence as of the date hereof.

            1.2. References. Any references to Subsidiaries of the Borrower set
forth herein shall (i) with respect to representations and warranties which deal
with historical matters be deemed to include the Borrower and its Subsidiaries
shall not in any way be construed as consent by the Agent or any Lender to the
establishment, maintenance or acquisition of any Subsidiary, except as may
otherwise be permitted hereunder.

            1.3. Supplemental Disclosure. At any time at the request of the
Agent and at such additional times as the Borrower determines, the Borrower
shall supplement each schedule or representation herein or in the other Loan
Documents with respect to any matter hereafter arising which, if existing or
occurring at the date of this Agreement, would have been required to be set
forth or described in such schedule or as an exception to such representation or
which is necessary to correct any information in such schedule or representation
which has been rendered inaccurate thereby. Unless any such supplement to such
schedule or representation discloses the existence or occurrence of events,
facts or circumstances which are not prohibited by the terms of this Agreement
or any other Loan Documents, such supplement to such schedule or representation
shall not be deemed an amendment thereof unless expressly consented to in
writing by Agent and the Required Lenders, and no such amendments, except as the
same may be consented to in a writing which expressly includes a waiver, shall
be or be deemed a waiver by the Agent or any Lender of any Default disclosed
therein.

                     ARTICLE II: REVOLVING LOAN FACILITIES

            2.1. [Reserved].

            2.2. Revolving Loans.

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<PAGE>

                  (A)   Upon the satisfaction of the conditions precedent set
      forth in Sections 5.1 and 5.2, as applicable, from and including the
      Closing Date and prior to the Termination Date, each Lender severally and
      not jointly agrees, on the terms and conditions set forth in this
      Agreement, to make revolving loans to the Borrower from time to time, in
      Dollars or Eurocurrency Loans in any Agreed Currency, in a Dollar Amount
      not to exceed such Lender's Pro Rata Share of Revolving Credit
      Availability at such time (each individually, a "REVOLVING LOAN" and,
      collectively, the "REVOLVING LOANS"); provided, however, at no time shall
      the Dollar Amount of the Revolving Credit Obligations exceed the Aggregate
      Revolving Loan Commitment; provided, further, however, that upon giving
      effect to each Advance, the aggregate outstanding principal Dollar Amount
      of all Eurocurrency Rate Advances in Agreed Currencies other than Dollars
      and all L/C Obligations in Agreed Letter of Credit Currencies other than
      Dollars and all Alternate Currency Loans shall not exceed the Maximum
      Eurocurrency Amount at any time prior to the Termination Date; provided,
      further, however, that upon giving effect to each Advance, the aggregate
      outstanding principal Dollar Amount of all Alternate Currency Loans in
      Canadian Dollars shall not exceed $5,000,000. Subject to the terms of this
      Agreement, the Borrower may borrow, repay and reborrow Revolving Loans at
      any time prior to the Termination Date. The Revolving Loans made on the
      Closing Date or on or before the third (3rd) Business Day thereafter shall
      initially be Floating Rate Loans and thereafter may be continued as
      Floating Rate Loans or converted into Eurocurrency Rate Loans in the
      manner provided in Section 2.10 and subject to the other conditions and
      limitations therein set forth and set forth in this Article II and set
      forth in the definition of Interest Period. Revolving Loans made after the
      third (3rd) Business Day after the Closing Date shall be, at the option of
      the Borrower, selected in accordance with Section 2.10, either Floating
      Rate Loans or Eurocurrency Rate Loans. On the Termination Date, the
      Borrower shall repay in full the outstanding principal balance of the
      Revolving Loans. Each Advance under this Section 2.2 shall consist of
      Revolving Loans made by each Lender ratably in proportion to such Lender's
      respective Pro Rata Share. Subject to the terms and conditions hereof,
      during the term of this Agreement, the Alternate Currency Bank hereby
      agrees to make Alternate Currency Loans to the Alternate Currency
      Borrowers pursuant to the applicable Alternate Currency Addendum as the
      applicable Alternate Currency Borrower may from time to time request
      pursuant to Section 2.21 and the applicable Alternate Currency Addendum.

                  (B)   Borrowing/Conversion/Continuation Notice. The Borrower
      shall deliver to the Agent a Borrowing/Conversion/Continuation Notice,
      signed by it, in accordance with the terms of Section 2.8. The Agent shall
      promptly notify each Lender with a Revolving Loan Commitment greater than
      zero of such request.

                  (C)   Making of Revolving Loans. Promptly after receipt of the
      Borrowing/Conversion/Continuation Notice under Section 2.8 in respect of
      Revolving Loans, the Agent shall notify each Lender with a Revolving Loan
      Commitment greater than zero by telex or telecopy, or other similar form
      of transmission, of the requested Revolving Loan. Each Lender with a
      Revolving Loan Commitment greater than zero shall make available its
      Revolving Loan in accordance with the terms of Section 2.7. The Agent will
      promptly make the funds so received from the Lenders available to the
      Borrower at the Agent's office in Chicago, Illinois on the applicable
      Borrowing Date and shall disburse such proceeds in

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<PAGE>

      accordance with the Borrower's disbursement instructions set forth in such
      Borrowing/Conversion/Continuation Notice. The failure of any Lender to
      deposit the amount described above with the Agent on the applicable
      Borrowing Date shall not relieve any other Lender of its obligations
      hereunder to make its Revolving Loan on such Borrowing Date.

            2.3. Swing Line Loans.

                  (A)   Amount of Swing Line Loans. Upon the satisfaction of the
      conditions precedent set forth in Section 5.1 and 5.2, as applicable, from
      and including the Closing Date and prior to the Termination Date, the
      Swing Line Bank agrees, on the terms and conditions set forth in this
      Agreement, to make swing line loans to the Borrower from time to time, in
      Dollars, in an amount not to exceed the Swing Line Commitment (each,
      individually, a "SWING LINE LOAN" and collectively, the "SWING LINE
      LOANS"); provided, however, at no time shall the Dollar Amount of the
      Revolving Credit Obligations exceed the Aggregate Revolving Loan
      Commitment; and provided, further, that at no time shall the sum of (a)
      the Swing Line Lender's Pro Rata Share of the Swing Line Loans, plus (b)
      the outstanding Dollar Amount of Revolving Loans made by the Swing Line
      Bank pursuant to Section 2.2, exceed the Swing Line Bank's Revolving Loan
      Commitment at such time. Subject to the terms of this Agreement, the
      Borrower may borrow, repay and reborrow Swing Line Loans at any time prior
      to the Termination Date.

                  (B)   Borrowing/Conversion/Continuation Notice. The Borrower
      shall deliver to the Agent and the Swing Line Bank a
      Borrowing/Conversion/Continuation Notice, signed by it, not later than
      2:00 p.m. (Chicago time) on the Borrowing Date of each Swing Line Loan,
      specifying (i) the applicable Borrowing Date (which date shall be a
      Business Day and which may be the same date as the date the
      Borrowing/Conversion/Continuation Notice is given), and (ii) the aggregate
      amount of the requested Swing Line Loan which shall be an amount not less
      than $200,000. The Swing Line Loans shall at all times be Floating Rate
      Loans.

                  (C)   Making of Swing Line Loans. Promptly after receipt of
      the Borrowing/Conversion/ Continuation Notice under Section 2.3(B) in
      respect of Swing Line Loans, the Agent shall notify each Lender by telex
      or telecopy, or other similar form of transmission, of the requested Swing
      Line Loan. Not later than 3:00 p.m. (Chicago time) on the applicable
      Borrowing Date, the Swing Line Bank shall make available its Swing Line
      Loan, in funds immediately available in Chicago to the Agent at its
      address specified pursuant to Article XIV. The Agent will promptly make
      the funds so received from the Swing Line Bank available to the Borrower
      on the Borrowing Date at the Agent's aforesaid address.

                  (D)   Repayment of Swing Line Loans. Each Swing Line Loan
      shall be paid in full by the Borrower on or before the fifth (5th)
      Business Day after the Borrowing Date for such Swing Line Loan. The
      Borrower may at any time pay, without penalty or premium, all outstanding
      Swing Line Loans or, in a minimum amount of $200,000 and increments of
      $100,000 in excess thereof, any portion of the outstanding Swing Line
      Loans. In addition, the Agent (i) may at any time in its sole discretion
      with respect to any outstanding Swing

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<PAGE>

      Line Loan, or (ii) shall on the fifth (5th) Business Day after the
      Borrowing Date of any Swing Line Loan, require each Lender (including the
      Swing Line Bank) to make a Revolving Loan in the amount of such Lender's
      Pro Rata Share of such Swing Line Loan, for the purpose of repaying such
      Swing Line Loan. Not later than 2:00 p.m. (Chicago time) on the date of
      any notice received pursuant to this Section 2.3(D), each Lender shall
      make available its required Revolving Loan or Revolving Loans, in funds
      immediately available in Chicago to the Agent at its address specified
      pursuant to Article XIV. Revolving Loans made pursuant to this Section
      2.3(D) shall initially be Floating Rate Loans and thereafter may be
      continued as Floating Rate Loans or converted into Eurocurrency Rate Loans
      in the manner provided in Section 2.10 and subject to the other conditions
      and limitations therein set forth and set forth in this Article II. Unless
      a Lender shall have notified the Swing Line Bank, prior to its making any
      Swing Line Loan, that any applicable condition precedent set forth in
      Sections 5.1 and 5.2, as applicable, had not then been satisfied, such
      Lender's obligation to make Revolving Loans pursuant to this Section
      2.3(D) to repay Swing Line Loans shall be unconditional, continuing,
      irrevocable and absolute and shall not be affected by any circumstances,
      including, without limitation, (a) any set-off, counterclaim, recoupment,
      defense or other right which such Lender may have against the Agent, the
      Swing Line Bank or any other Person, (b) the occurrence or continuance of
      a Default or Unmatured Default, (c) any adverse change in the condition
      (financial or otherwise) of the Borrower, or (d) any other circumstances,
      happening or event whatsoever. In the event that any Lender fails to make
      payment to the Agent of any amount due under this Section 2.3(D), the
      Agent shall be entitled to receive, retain and apply against such
      obligation the principal and interest otherwise payable to such Lender
      hereunder until the Agent receives such payment from such Lender or such
      obligation is otherwise fully satisfied. In addition to the foregoing, if
      for any reason any Lender fails to make payment to the Agent of any amount
      due under this Section 2.3(D), such Lender shall be deemed, at the option
      of the Agent, to have unconditionally and irrevocably purchased from the
      Swing Line Bank, without recourse or warranty, an undivided interest and
      participation in the applicable Swing Line Loan in the amount of such
      Revolving Loan, and such interest and participation may be recovered from
      such Lender together with interest thereon at the Federal Funds Effective
      Rate for each day during the period commencing on the date of demand and
      ending on the date such amount is received. On the Termination Date, the
      Borrower shall repay in full the outstanding principal balance of the
      Swing Line Loans.

            2.4. Rate Options for all Advances; Maximum Interest Periods. The
Swing Line Loans shall be Floating Rate Advances at all times. The Revolving
Loans may be Floating Rate Advances or Eurocurrency Rate Advances, or a
combination thereof, selected by the Borrower in accordance with Section 2.10.
The Borrower may select, in accordance with Section 2.10, Rate Options and
Interest Periods applicable to portions of the Revolving Loans and Alternate
Currency Loans; provided that there shall be no more than nine (9) Interest
Periods in effect with respect to all of the Loans at any time (unless otherwise
provided in the applicable Alternate Currency Addendum with respect to Alternate
Currency Loans). Each Alternate Currency Loan shall bear interest on the
outstanding principal amount thereof, for the Interest Period applicable
thereto, at the Alternate Currency Rate as set forth in the applicable Alternate
Currency Addendum.

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<PAGE>

            2.5. Optional Payments; Mandatory Prepayments.

                  (A)   Optional Payments. The Borrower may from time to time
      and at any time upon at least one (1) Business Day's prior written notice
      repay or prepay, without penalty or premium all or any part of outstanding
      Floating Rate Advances in an aggregate minimum amount of $1,000,000 and in
      integral multiples of $100,000 in excess thereof. Eurocurrency Rate
      Advances may be voluntarily repaid or prepaid prior to the last day of the
      applicable Interest Period, subject to the indemnification provisions
      contained in Section 4.4, provided, that the Borrower may not so prepay
      Eurocurrency Rate Advances unless it shall have provided at least five (5)
      Business Days' prior written notice to the Agent of such prepayment. Each
      Alternate Currency Borrower may, upon prior written notice to the Agent
      and to the Alternate Currency Bank as prescribed in the applicable
      Alternate Currency Addendum and specifying that it is prepaying all or a
      portion of its Alternate Currency Loans, prepay its Alternate Currency
      Loans in whole at any time, or from time to time in part in amounts
      aggregating $1,000,000 or any larger multiple of $100,000 (or as otherwise
      specified in the applicable Alternate Currency Addendum) by paying the
      principal amount to be paid together with all accrued and unpaid interest
      thereon to and including the date of payment provided any such payment
      occurs on the last day of any Interest Period related to such Alternate
      Currency Loan.

                  (B)   Mandatory Prepayments of Revolving Loans.

                        (i)   If at any time and for any reason (other than
            fluctuations in currency exchange rates) the Dollar Amount of the
            Revolving Credit Obligations are greater than the Aggregate
            Revolving Loan Commitment, the Borrower shall immediately make a
            mandatory prepayment of the Obligations in an amount equal to such
            excess. In addition, if the Dollar Amount of the L/C Obligations
            (calculated as of the last Business Day of each fiscal quarter, or,
            at the Agent's option, as of the last Business Day of each calendar
            month) outstanding at any time is greater than the lesser of (A) the
            Aggregate Revolving Loan Commitment at such time minus the sum of
            the outstanding principal Dollar Amount of the Revolving Loans at
            such time and the outstanding principal amount of the Swing Line
            Loans at such time and the outstanding principal Dollar Amount of
            the Alternate Currency Loans at such time and (B) $15,750,000 (or
            the Equivalent Amount in Dollars), the Borrower shall either repay
            Revolving Loans or deposit cash collateral in a cash collateral
            account established with the Agent, in either case, in an amount in
            Dollars equal to such excess.

                        (ii)  If on the last Business Day of any month:

                        (x)   the Dollar Amount of the Revolving Credit
                              Obligations exceeds one hundred five percent
                              (105%) of the Aggregate Revolving Loan Commitment,
                              the Borrower for the ratable benefit of the
                              Lenders shall immediately prepay Loans (to be
                              applied to such Loans as the Borrower shall direct
                              at the time of such payment) in an aggregate
                              amount such that after giving effect thereto the
                              Dollar Amount of the Revolving Credit Obligations
                              is less than or equal to the Aggregate Revolving
                              Loan Commitment; or

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<PAGE>

                        (y)   the Dollar Amount of all outstanding Alternate
                              Currency Loans under the Alternate Currency
                              Addenda exceeds one hundred five percent (105%) of
                              the aggregate Alternate Currency Commitments with
                              respect thereto, the Borrower shall on such date
                              prepay, or cause to be prepaid, Alternate Currency
                              Loans in an aggregate amount such that after
                              giving effect thereto the Dollar Amount of all
                              such Alternate Currency Loans is less than or
                              equal to the aggregate Alternate Currency
                              Commitments with respect thereto; or

                        (z)   the Dollar Amount of the aggregate outstanding
                              principal amount of Alternate Currency Loans in
                              the same Alternate Currency exceeds the aggregate
                              Alternate Currency Commitments with respect
                              thereto, the applicable Borrowers shall on such
                              date prepay Alternate Currency Loans in such
                              Alternate Currency in an aggregate amount such
                              that after giving effect thereto the Dollar amount
                              of all Alternate Currency Loans is less than or
                              equal to the aggregate Alternate Currency
                              Commitments with respect thereto.

                        (iii) Upon the consummation of any Asset Sale by the
            Borrower or any Subsidiary, within five (5) Business Days after the
            Borrower's or any of its Subsidiaries' receipt of any Net Cash
            Proceeds (or conversion to cash of non-cash proceeds (whether
            principal or interest and including securities, release of escrow
            arrangements)) received from any such Asset Sale, the Borrower shall
            make a mandatory prepayment of the Loans, subject to the provisions
            governing the application of payments set forth in Section
            2.5(B)(v), in an amount equal to one hundred percent (100%) of such
            Net Cash Proceeds.

                        (iv)  Upon the consummation of any Financing by the
            Borrower or any Subsidiary of the Borrower, within three (3)
            Business Days after the Borrower's or any of its Subsidiaries'
            receipt of any Net Cash Proceeds received from such Financing, the
            Borrower shall make a mandatory prepayment of the Loans, subject to
            the provisions governing the application of payments set forth in
            Section 2.5(B)(v), in an amount equal to one hundred percent (100%)
            of such Net Cash Proceeds.

                        (v)   All of the mandatory prepayments made under this
            Section 2.5(B) shall be applied first to Floating Rate Loans and
            Alternate Currency Loans bearing a fluctuating Alternate Currency
            Rate and to any Eurocurrency Rate Loans and Alternate Currency Loans
            bearing a fixed Alternate Currency Rate maturing on such date and
            then to subsequently maturing Eurocurrency Rate Loans and Alternate
            Currency Loans bearing a fixed Alternate Currency Rate in order of
            maturity. Prior to the occurrence of a Default and at the Borrower's
            option, the Agent shall hold all mandatory prepayments to be applied
            pursuant to Section 2.5(B)(iii) or Section 2.5(B)(iv) to a
            Eurocurrency Rate Loan or an Alternate Currency Loan bearing a fixed
            Alternate Currency Rate in escrow for the benefit of the Lenders and
            shall release such amounts upon the expiration of the Interest
            Periods applicable to any such Loans being prepaid (it being
            understood and agreed that interest shall continue to accrue on all
            such Obligations until such time as such prepayments are released
            from escrow and applied to reduce such Obligations); provided,
            however, that upon the occurrence of a Default, such escrowed
            amounts may be applied as set forth in the first sentence of this
            Section 2.5(B)(v) without regard to the expiration

                                       30

<PAGE>

            of any Interest Period and the Borrower shall make all payments
            under Section 4.4 hereof resulting therefrom. The parties hereto
            acknowledge and agree that such prepayments shall not reduce the
            Aggregate Revolving Loan Commitment.

            2.6. Reduction of Commitments. The Borrower may permanently reduce
the Aggregate Revolving Loan Commitment in whole, or in part ratably among the
Lenders, in an aggregate minimum amount of $5,000,000 with respect thereto and
integral multiples of $1,000,000 in excess of that amount with respect thereto
(unless the Aggregate Revolving Loan Commitment is reduced in whole), upon at
least three (3) Business Day's prior written notice to the Agent, which notice
shall specify the amount of any such reduction; provided, however, that the
amount of the Aggregate Revolving Loan Commitment may not be reduced below the
aggregate principal Dollar Amount of the outstanding Revolving Credit
Obligations. All accrued commitment fees shall be payable on the effective date
of any termination of the obligations of the Lenders to make Loans hereunder.
Each Alternate Currency Borrower may, upon three (3) Business Days prior written
notice to the Agent and to the Alternate Currency Bank, terminate entirely at
any time or reduce from time to time by an aggregate amount of $1,000,000 or any
larger multiple of $100,000, (or as set forth on the applicable Alternate
Currency Addendum) the unused portions of the applicable Alternate Currency
Commitment as specified by the applicable Alternate Currency Borrower in such
notice to the Agent and the Alternate Currency Bank; provided, however, that at
no time shall the Alternate Currency Commitments be reduced to a figure less
than the total of the outstanding principal amount of all Alternate Currency
Loans.

            2.7. Method of Borrowing. Not later than 2:00 p.m. (Chicago time) on
each Borrowing Date, each Lender shall make available its Revolving Loan in
immediately available funds in the Agreed Currency to the Agent at its address
specified pursuant to Article XIV, unless the Agent has notified the Lenders
that such Loan is to be made available to the Borrower at the Agent's
Eurocurrency Payment office, in which case each Lender shall make available its
Loan or Loans, in funds immediately available to the Agent at its Eurocurrency
Payment Office, not later than 1:00 p.m. (local time in the city of the Agent's
Eurocurrency Payment Office) in the Agreed Currency designated by the Agent. The
Agent will promptly make the funds so received from the Lenders available to the
Borrower at the Agent's aforesaid address.

            2.8. Method of Selecting Types and Interest Periods for Advances.
The Borrower and the Alternate Currency Borrowers, as applicable, shall select
the Type of Advance and, in the case of each Alternate Currency Loan and
Eurocurrency Rate Advance, the Interest Period, Agreed Currency and Alternate
Currency applicable to each Advance from time to time. The Borrower shall give
the Agent irrevocable notice in substantially the form of Exhibit B hereto (a
"BORROWING/CONVERSION/ CONTINUATION NOTICE") not later than 10:00 a.m. (Chicago
time) (a) on or before the Borrowing Date of each Floating Rate Advance, and (b)
three (3) Business Days before the Borrowing Date for each Eurocurrency Rate
Advance to be made in Dollars, and (c) four (4) Business Days before the
Borrowing Date for each Eurocurrency Rate Advance to be made in any Agreed
Currency other than Dollars and (d) five (5) Business Days before the Borrowing
Date for each Alternate Currency Loan (or such other period as may be agreed to
by the Agent), and the applicable Alternate Currency Borrower shall give the
Alternate Currency Bank irrevocable notice by 10:00 a.m. (local time) two (2)
Business Days prior to the Borrowing Date for such Alternate Currency Loan (or
such other period as may specified in the applicable

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<PAGE>

Alternate Currency Addendum), specifying: (i) the Borrowing Date (which shall be
a Business Day) of such Advance; (ii) the aggregate amount of such Advance;
(iii) the Type of Advance selected; and (iv) in the case of each Eurocurrency
Rate Advance and Alternate Currency Loan, the Interest Period and Agreed
Currency or Alternate Currency applicable thereto. The Borrower shall select
Interest Periods so that, to the best of the Borrower's knowledge, it will not
be necessary to prepay all or any portion of any Eurocurrency Rate Advance or
Alternate Currency Loan prior to the last day of the applicable Interest Period
in order to make mandatory prepayments as required pursuant to the terms hereof.
Each Floating Rate Advance, each Alternate Currency Loan bearing a fluctuating
Alternate Currency Rate and all Obligations other than Loans shall bear interest
from and including the date of the making of such Advance, in the case of Loans,
and the date such Obligation is due and owing in the case of such other
Obligations, to (but not including) the date of repayment thereof at the
Floating Rate or Alternate Currency Rate, as applicable, changing when and as
such Floating Rate or Alternate Currency Rate, as applicable, changes. Changes
in the rate of interest on that portion of any Advance maintained as a Floating
Rate Loan will take effect simultaneously with each change in the Alternate Base
Rate. Changes in the rate of interest on any portion of any Alternate Currency
Loan bearing a fluctuating Alternate Currency Rate will take effect
simultaneously with each change in such Alternate Currency Rate. Each
Eurocurrency Rate Advance and each Alternate Currency Loan bearing a fixed
Alternate Currency Rate shall bear interest from and including the first day of
the Interest Period applicable thereto to (but not including) the last day of
such Interest Period at the interest rate determined as applicable to such
Eurocurrency Rate Advance or Alternate Currency Loan, as applicable.
Notwithstanding anything contained herein to the contrary, during the
continuance of a Default, the Agent may (or shall at the direction of the
Required Lenders) declare that no Advance may be made as a Eurocurrency Rate
Advance.

            2.9. Minimum Amount of Each Advance. Each Advance (other than an
Advance to repay Swing Line Loans or a Reimbursement Obligation) shall be in the
minimum amount of $500,000 (or the approximate Equivalent Amount of any Agreed
Currency other than Dollars or any Alternate Currency) and in multiples of
$100,000 (or the Approximate Equivalent amount of any Agreed Currency other than
Dollars or any Alternate Currency) if in excess thereof (or such other amounts
as may be specified in the applicable Alternate Currency Addendum), provided,
however, that any Floating Rate Advance may be in the amount of the unused
Aggregate Revolving Loan Commitment.

            2.10. Method of Selecting Types and Interest Periods for Conversion
and Continuation of Advances.

                  (A)   Right to Convert. The Borrower may elect from time to
      time, subject to the provisions of Section 2.4 and this Section 2.10, to
      convert all or any part of a Loan of any Type into any other Type or Types
      of Loans; provided that any conversion of any Eurocurrency Rate Advance
      and any Alternate Currency Loan shall be made on, and only on, the last
      day of the Interest Period applicable thereto.

                  (B)   Automatic Conversion and Continuation. Floating Rate
      Loans shall continue as Floating Rate Loans unless and until such Floating
      Rate Loans are converted into Eurocurrency Rate Loans. Eurocurrency Rate
      Loans shall continue as Eurocurrency Rate

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<PAGE>

      Loans until the end of the then applicable Interest Period therefor, at
      which time such Eurocurrency Rate Loans shall be automatically converted
      into Floating Rate Loans unless the Borrower shall have given the Agent
      notice in accordance with Section 2.10(D) requesting that, at the end of
      such Interest Period, such Eurocurrency Rate Loans continue as a
      Eurocurrency Rate Loan. Unless a Borrowing/Conversion/Continuation Notice
      shall have timely been given in accordance with the terms of this Section
      2.10, Eurocurrency Rate Advances in an Agreed Currency other than Dollars
      and Alternate Currency Loans shall automatically continue as Eurocurrency
      Rate Advances in the same Agreed Currency or Alternate Currency Loans in
      the same Alternate Currency, as applicable, with an Interest Period of one
      (1)month.

                  (C)   No Conversion Post-Default or Post-Unmatured Default.
      Notwithstanding anything to the contrary contained in Section 2.10(A) or
      Section 2.10(B), no Loan may be converted into or continued as a
      Eurocurrency Rate Loan (except with the consent of the Required Lenders)
      when any Default or Unmatured Default has occurred and is continuing.

                  (D)   Borrowing/Conversion/Continuation Notice. The Borrower
      shall give the Agent irrevocable notice of each conversion of a Floating
      Rate Loan into a Eurocurrency Rate Loan or continuation of a Eurocurrency
      Rate Loan not later than 10:00 a.m. (Chicago time) (x) three (3) Business
      Days prior to the date of the requested conversion or continuation, with
      respect to any Loan to be converted or continued as a Eurocurrency Rate
      Loan in Dollars, (y) four (4) Business Days prior to the date of the
      requested conversion or continuation with respect to any Loan to be
      converted or continued as a Eurocurrency Rate Loan in an Agreed Currency
      other than Dollars, and (z) five (5) Business Days before the date of the
      requested conversion or continuation Borrowing Date with respect to the
      conversion or continuation of any Alternate Currency Loan (or such other
      period as may be agreed to by the Agent), and the applicable Alternate
      Currency Borrower shall give the Alternate Currency Bank irrevocable
      notice by 10:00 a.m. (local time) two (2) Business Days prior to the
      conversion or continuation of such Alternate Currency Loan (or such other
      period as may specified in the applicable Alternate Currency Addendum),
      specifying: (1) the requested date (which shall be a Business Day) of such
      conversion or continuation; (2) the amount and Type of the Loan to be
      converted or continued; and (3) the amount of Eurocurrency Rate Loan(s) or
      Alternate Currency Loan(s), as applicable, into which such Loan is to be
      converted or continued, the Agreed Currency or Alternate Currency, as
      applicable, and the duration of the Interest Period applicable thereto.

                  (E)   Notwithstanding anything herein to the contrary, (x)
      Eurocurrency Rate Advances in an Agreed Currency may be converted and/or
      continued as Eurocurrency Rate Advances only in the same Agreed Currency,
      and (y) Alternate Currency Loans in an Alternate Currency may be converted
      and/or continued as Alternate Currency Loans only in the same Alternate
      Currency.

            2.11. Default Rate. After the occurrence and during the continuance
of a Default, at the direction of the Required Lenders, the interest rate(s)
applicable to the Obligations and to the fees payable under Section 3.8 with
respect to Letters of Credit shall be equal to the then highest interest rate(s)
hereunder plus two percent (2.0%) per annum. After the occurrence of a Default,

                                       33

<PAGE>

the principal balance of, and, to the extent permitted by law, any overdue
interest on any Alternate Currency Loan shall bear interest, payable upon
demand, for each day until paid at the rate per annum equal to two percent
(2.00%) plus the interest rate applicable to such Alternate Currency Loan
immediately prior to the Default.

            2.12. Method of Payment. All payments of principal, interest, fees,
commissions and L/C Obligations hereunder shall be made, without setoff,
deduction or counterclaim (unless indicated otherwise in Section 2.15(E)), in
immediately available funds to the Agent (i) at the Agent's address specified
pursuant to Article XIV with respect to Advances or other Obligations
denominated in Dollars and (ii) at the Agent's Eurocurrency Payment Office with
respect to any Advance or other Obligations denominated in an Agreed Currency
other than Dollars, or at any other Lending Installation of the Agent specified
in writing by the Agent to the Borrower, by 2:00 p.m. (Chicago time) on the date
when due and shall be made ratably among the Lenders (unless such amount is not
to be shared ratably in accordance with the terms hereof). Each Advance shall be
repaid or prepaid in the Agreed Currency in which it was made in the amount
borrowed and interest payable thereon shall also be paid in such currency. Each
payment delivered to the Agent for the account of any Lender shall be delivered
promptly by the Agent to such Lender in the same type of funds which the Agent
received at its address specified pursuant to Article XIV or at any Lending
Installation specified in a notice received by the Agent from such Lender. The
Borrower authorizes the Agent to charge the account of the Borrower maintained
with Bank One for each payment of principal, interest, fees, commissions and L/C
Obligations as it becomes due hereunder. Each reference to the Agent in this
Section 2.12 shall also be deemed to refer, and shall apply equally, to each
Issuing Bank, in the case of payments required to be made by the Borrower to any
Issuing Bank pursuant to Article III.

            All payments to be made by the Borrowers hereunder in respect of any
Alternate Currency Loans shall be made in the currencies in which such Loans are
denominated and in funds immediately available, at the office or branch from
which the Loan was made pursuant to Section 2.21 and the applicable Alternate
Currency Addendum not later than 3:00 p.m. (local time) on the date on which
such payment shall become due. Promptly upon receipt of any payment of principal
of the Alternate Currency Loans the Alternate Currency Bank shall give written
notice to the Agent by telex or telecopy of the receipt of such payment.

            Notwithstanding the foregoing provisions of this Section, if, after
the making of any Advance in any currency other than Dollars, currency control
or exchange regulations are imposed in the country which issues such Agreed
Currency or Alternate Currency, as applicable, with the result that different
types of such Agreed Currency or Alternate Currency, as applicable, (the "NEW
CURRENCY") are introduced and the type of currency in which the Advance was made
(the "ORIGINAL CURRENCY") no longer exists or any Borrower is not able to make
payment to the Agent for the account of the Lenders or Alternate Currency Bank,
as applicable, in such Original Currency, then all payments to be made by the
Borrowers hereunder in such currency shall be made to the Agent or Alternate
Currency Bank, as applicable, in such amount and such type of the New Currency
or Dollars as shall be equivalent to the amount of such payment otherwise due
hereunder in the Original Currency, it being the intention of the parties hereto
that the Borrowers take all risks of the imposition of any such currency control
or exchange regulations. In addition, notwithstanding the foregoing provisions
of this Section, if, after the making of any Advance in

                                       34

<PAGE>

any currency other than Dollars, the Borrower is not able to make payment to the
Agent for the account of the Lenders or the Alternate Currency Bank in the type
of currency in which such Advance was made because of the imposition of any such
currency control or exchange regulation, then such Advance shall instead be
repaid when due in Dollars in a principal amount equal to the Dollar Amount (as
of the date of repayment) of such Advance.

            2.13. Evidence of Debt.

                  (A)   Each Lender shall maintain in accordance with its usual
      practice an account or accounts (a "LOAN ACCOUNT") evidencing the
      indebtedness of the Borrower to such Lender owing to such Lender from time
      to time, including the amounts of principal and interest payable and paid
      to such Lender from time to time hereunder.

                  (B)   The Register maintained by the Agent pursuant to Section
      13.3(C) shall include a control account, and a subsidiary account for each
      Lender, in which accounts (taken together) shall be recorded (i) the date
      and the amount of each Loan made hereunder, the Type thereof and the
      Interest Period, if any, applicable thereto, (ii) the amount of any
      principal or interest due and payable or to become due and payable from
      the Borrowers to each Lender hereunder, (iii) the effective date and
      amount of each Assignment Agreement delivered to and accepted by it and
      the parties thereto pursuant to Section 13.3, (iv) the amount of any sum
      received by the Agent hereunder for the account of the Lenders and each
      Lender's share thereof, and (v) all other appropriate debits and credits
      as provided in this Agreement, including, without limitation, all fees,
      charges, expenses and interest.

                  (C)   The entries made in the Loan Account, the Register and
      the other accounts maintained pursuant to subsections (A) or (B) of this
      Section shall be conclusive and binding for all purposes, absent manifest
      error, unless the applicable Borrower objects to information contained in
      the Loan Accounts, the Register or the other accounts within thirty (30)
      days of the applicable Borrower's receipt of such information; provided
      that the failure of any Lender or the Agent to maintain such accounts or
      any error therein shall not in any manner affect the obligation of the
      Borrowers to repay the Loans in accordance with the terms of this
      Agreement.

                  (D)   Any Lender may request that the Revolving Loans made by
      it each be evidenced by a promissory note in substantially the forms of
      Exhibit K to evidence such Lender's Revolving Loans. In such event, the
      applicable Borrower shall prepare, execute and deliver to such Lender a
      promissory note for such Loans payable to the order of such Lender and in
      a form approved by the Agent and consistent with the terms of this
      Agreement. Thereafter, the Loans evidenced by such promissory note and
      interest thereon shall at all times (including after assignment pursuant
      to Section 13.3) be represented by one or more promissory notes in such
      form payable to the order of the payee named therein.

            2.14. Telephonic Notices. The Borrowers authorize the Lenders and
the Agent to extend Advances, effect selections of Types of Advances and to
transfer funds based on telephonic notices made by any person or persons the
Agent or any Lender in good faith believes to be acting on behalf of the
applicable Borrower. The Borrowers agree to deliver promptly to the

                                       35

<PAGE>

Agent a written confirmation, signed by an Authorized Officer, if such
confirmation is requested by the Agent or any Lender, of each telephonic notice.
If the written confirmation differs in any material respect from the action
taken by the Agent and the Lenders, the records of the Agent and the Lenders
shall govern absent manifest error. In case of disagreement concerning such
notices, if the Agent has recorded telephonic borrowing notices, such recordings
will be made available to the applicable Borrower upon the Borrower's request
therefor.

            2.15. Promise to Pay; Interest and Commitment Fees; Interest Payment
Dates; Interest and Fee Basis; Taxes; Loan and Control Accounts.

                  (A)   Promise to Pay. The Borrower unconditionally promises to
      pay when due the principal amount of each Loan and all other Obligations
      incurred by it, and to pay all unpaid interest accrued thereon, in
      accordance with the terms of this Agreement and the other Loan Documents.

                  (B)   Interest Payment Dates. Interest accrued on each
      Floating Rate Loan and each Alternate Currency Loan bearing a fluctuating
      Alternate Currency Rate shall be payable on each Payment Date, commencing
      with the first such date to occur after the date hereof, upon any
      prepayment whether by acceleration or otherwise, and at maturity (whether
      by acceleration or otherwise). Interest accrued on each Eurocurrency Rate
      Loan and each Alternate Currency Loan bearing a fixed Alternate Currency
      Rate shall be payable on the last day of its applicable Interest Period,
      on any date on which the Eurocurrency Rate Loan or Alternate Currency Loan
      is prepaid, whether by acceleration or otherwise, and at maturity.
      Interest accrued on each Eurocurrency Rate Loan and each Alternate
      Currency Loan bearing a fixed Alternate Currency Rate having an Interest
      Period longer than three months shall also be payable on the last day of
      each three-month interval during such Interest Period. Interest accrued on
      the principal balance of all other Obligations shall be payable in arrears
      (i) on the last day of each calendar month, commencing on the first such
      day following the incurrence of such Obligation, (ii) upon repayment
      thereof in full or in part, and (iii) if not theretofore paid in full, at
      the time such other Obligation becomes due and payable (whether by
      acceleration or otherwise).

                  (C)   Commitment Fees.

                        (i)   The Borrower shall pay to the Agent, for the
            account of the Lenders in accordance with their Pro Rata Shares,
            from and after the date of this Agreement until the date on which
            the Aggregate Revolving Loan Commitment shall be terminated in
            whole, a commitment fee accruing at the rate of the then Applicable
            Commitment Fee Percentage, on the amount by which (A) the Aggregate
            Revolving Loan Commitment in effect from time to time exceeds (B)
            the Dollar Amount of the Revolving Credit Obligations (including the
            outstanding principal amount of the Swing Line Loans) in effect from
            time to time (as determined by the Agent in accordance with its
            customary practices). All such commitment fees payable under this
            clause (C) shall be payable quarterly in arrears on the last day of
            each fiscal quarter of the Borrower occurring after the date of this
            Agreement (with the first such payment being calculated for the
            period

                                       36

<PAGE>

            from the date of this Agreement and ending on June 30, 2004, and, in
            addition, on the date on which the Aggregate Revolving Loan
            Commitment shall be terminated in whole.

                        (ii)  The Borrower agrees to pay to the Agent for the
            sole account of the Agent and the Arranger (unless otherwise agreed
            between the Agent and the Arranger and any Lender) the fees set
            forth in the letter agreement between the Agent, the Arranger and
            the Borrower dated April 29, 2004, payable at the times and in the
            amounts set forth therein.

                        (iii) The applicable Borrower agrees to pay to the
            Alternate Currency Bank, for its sole account, a fronting fee a
            equal to 0.125% per annum on the average daily outstanding Dollar
            Amount of all Alternate Currency Loans.

                  (D)   Interest and Fee Basis; Applicable Floating Rate Margin,
      Applicable Eurocurrency Margin, Applicable Commitment Fee Percentage and
      Applicable L/C Fee Percentage.

                        (i)   Interest on all Eurocurrency Rate Loans, all
            Alternate Currency Loans (except as provided otherwise in the
            applicable Alternate Currency Addendum) and on all fees shall be
            calculated for actual days elapsed on the basis of a 360-day year.
            Interest on all Floating Rate Loans shall be calculated for actual
            days elapsed on the basis of a 365-, or when appropriate 366-, day
            year. Interest shall be payable for the day an Obligation is
            incurred but not for the day of any payment on the amount paid if
            payment is received prior to 2:00 p.m. (Chicago time) at the place
            of payment. If any payment of principal of or interest on a Loan or
            any payment of any other Obligations shall become due on a day which
            is not a Business Day, such payment shall be made on the next
            succeeding Business Day and, in the case of a principal payment,
            such extension of time shall be included in computing interest, fees
            and commissions in connection with such payment.

                        (ii)  The Applicable Floating Rate Margin, Applicable
            Eurocurrency Margin, Applicable Commitment Fee Percentage and
            Applicable L/C Fee Percentage shall be determined on the basis of
            the then applicable Leverage Ratio as described in this Section
            2.15(D)(ii), from time to time by reference to the following table:

<TABLE>
<CAPTION>
                                                           APPLICABLE             APPLICABLE                APPLICABLE
                              APPLICABLE FLOATING         EUROCURRENCY            COMMITMENT                   L/C
     LEVERAGE RATIO               RATE MARGIN                MARGIN             FEE PERCENTAGE            FEE PERCENTAGE
-------------------------     -------------------         ------------          --------------            --------------
<S>                           <C>                         <C>                   <C>                       <C>
Greater than 2.50 to 1.0             0.00%                   1.25%                  0.25%                     1.25%

Greater than 2.00 to 1.0
and less than or equal to
       2.50 to 1.0                   0.00%                   1.10%                  0.20%                     1.10%

Greater than 1.50 to 1.0
and less than or equal to
       2.00 to 1.0                   0.00%                   0.95%                  0.15%                     0.95%
</TABLE>

                                       37

<PAGE>

<TABLE>
<CAPTION>
                                                           APPLICABLE             APPLICABLE                APPLICABLE
                              APPLICABLE FLOATING         EUROCURRENCY            COMMITMENT                   L/C
     LEVERAGE RATIO               RATE MARGIN                MARGIN             FEE PERCENTAGE            FEE PERCENTAGE
-------------------------     -------------------         ------------          --------------            --------------
<S>                           <C>                         <C>                   <C>                       <C>
 Greater than 1.0 to 1.0
and less than or equal to
       1.50 to 1.0                   0.00%                   0.75%                  0.15%                     0.75%

Greater than 0.50 to 1.0
and less than or equal to
       1.0 to 1.0                    0.00%                   0.65%                 0.125%                     0.65%

  Less than 0.50 to 1.0              0.00%                   0.50%                  0.10%                     0.50%
</TABLE>

            For purposes of this Section 2.15(D)(ii), the Leverage Ratio shall
            be calculated as provided in Section 7.4(B). Upon receipt of the
            financial statements delivered pursuant to Sections 7.1(A)(i) and
            (ii), as applicable, the Applicable Floating Rate Margin, Applicable
            Eurocurrency Margin and Applicable Commitment Fee Percentage shall
            be adjusted, such adjustment being effective five (5) Business Days
            following the Agent's receipt of such financial statements and the
            compliance certificate required to be delivered in connection
            therewith pursuant to Section 7.1(A)(iii); provided, that if the
            Borrower shall not have timely delivered its financial statements in
            accordance with Section 7.1(A)(i) or (ii), as applicable, and such
            failure continues for five (5) days after notice from the Agent to
            the Borrower, then, at the discretion of the Required Lenders,
            commencing on the date upon which such financial statements should
            have been delivered and continuing until such financial statements
            are actually delivered, it shall be assumed for purposes of
            determining the Applicable Floating Rate Margin, Applicable
            Eurocurrency Margin, Applicable L/C Fee Percentage and Applicable
            Commitment Fee Percentage that the Leverage Ratio was greater than
            2.5 to 1.0.

                        (iii)Notwithstanding anything herein to the contrary,
            from the date of this Agreement to but not including the fifth (5th)
            Business Day following receipt of the Borrower's financial
            statements delivered pursuant to Section 7.1(A)(i) for the fiscal
            quarter ending June 30, 2004, the Applicable Floating Rate Margin,
            Applicable Eurocurrency Margin, Applicable L/C Fee Percentage and
            Applicable Commitment Fee Percentage shall be determined based upon
            a Leverage Ratio greater than 0.50 to 1.0 and less than or equal to
            1.0 to 1.0.

                                       38

<PAGE>

                  (E)   Taxes.

                        (i)   Any and all payments by the Borrower hereunder
            shall be made free and clear of and without deduction for any and
            all present or future taxes, levies, imposts, deductions, charges or
            withholdings or any liabilities with respect thereto imposed by any
            Governmental Authority including those arising after the date hereof
            as a result of the adoption of or any change in any law, treaty,
            rule, regulation, guideline or determination of a Governmental
            Authority or any change in the interpretation or application thereof
            by a Governmental Authority but excluding, in the case of each
            Lender and the Agent, (i) such taxes (including income taxes,
            franchise taxes and branch profit taxes) as are imposed on or
            measured by such Lender's or Agent's, as the case may be, net income
            or similar taxes imposed by the United States of America or any
            Governmental Authority of the jurisdiction under the laws of which
            such Lender or Agent, as the case may be, is organized or maintains
            a Lending Installation (all such non-excluded taxes, levies,
            imposts, deductions, charges, withholdings, and liabilities which
            the Agent or a Lender determines to be applicable to this Agreement,
            the other Loan Documents, the Revolving Loan Commitments, the Loans
            or the Letters of Credit being hereinafter referred to as "TAXES")
            and (ii) if such Lender or the Agent is entitled at such time to a
            total or partial exemption from withholding that is required to be
            evidenced by an IRS Form 1001, 4224, W-8 or W-9 or, in each case,
            any successor or additional form, taxes imposed by reason of any
            failure of such Lender or the Agent to deliver to the Agent or
            Borrower, from time to time as required by the Agent or Borrower,
            such Form 1001, 4224, W-8 or W-9 (as applicable) or, in each case,
            any successor or additional form, completed in a manner reasonably
            satisfactory to the Agent and the Borrower. If the Borrower or the
            Agent shall be required by law to deduct any Taxes from or in
            respect of any sum payable hereunder or under the other Loan
            Documents to any Lender or the Agent, (i) the sum payable shall be
            increased as may be necessary so that after making all required
            deductions (including deductions applicable to additional sums
            payable under this Section 2.15(E)) such Lender or the Agent (as the
            case may be) receives an amount equal to the sum it would have
            received had no such deductions been made, (ii) the Borrower shall
            make such deductions, and (iii) the Borrower shall pay the full
            amount deducted to the relevant taxation authority or other
            authority in accordance with applicable law. If any Tax, including,
            without limitation, any withholding tax, of the United States of
            America or any other Governmental Authority shall be or become
            applicable (y) after the date of this Agreement, to such payments by
            the Borrower made to the Lending Installation or any other office
            that a Lender may claim as its Lending Installation, or (z) after
            such Lender's selection and designation of any other Lending
            Installation, to such payments made to such other Lending
            Installation, such Lender shall use reasonable efforts to make, fund
            and maintain its Loans through another Lending Installation of such
            Lender in another jurisdiction so as to reduce the Borrower's
            liability hereunder, if the making, funding or maintenance of such
            Loans through such other Lending Installation of such Lender does
            not, in the reasonable judgment of such Lender, otherwise adversely
            and materially affect such Loans, or obligations under the Revolving
            Loan Commitments or such Lender.

                        (ii)  In addition, the Borrower agrees to pay any
            present or future stamp or documentary taxes or any other excise or
            property taxes, charges, or similar levies which

                                       39

<PAGE>

            arise from any payment made hereunder, from the issuance of Letters
            of Credit hereunder, or from the execution, delivery or registration
            of, or otherwise with respect to, this Agreement, the other Loan
            Documents, the Revolving Loan Commitments, the Loans or the Letters
            of Credit (hereinafter referred to as "OTHER TAXES").

                        (iii) The Borrower indemnifies each Lender and the Agent
            for the full amount of Taxes and Other Taxes (including, without
            limitation, any Taxes or Other Taxes imposed by any Governmental
            Authority on amounts payable under this Section 2.15(E)) paid by
            such Lender or the Agent (as the case may be) and any liability
            (including penalties, interest, and expenses) arising therefrom or
            with respect thereto, whether or not such Taxes or Other Taxes were
            correctly or legally asserted. This indemnification shall be made
            within thirty (30) days after the date such Lender or the Agent (as
            the case may be) makes written demand therefor. A certificate as to
            any additional amount payable to any Lender or the Agent under this
            Section 2.15(E) submitted to the Borrower and the Agent (if a Lender
            is so submitting) by such Lender or the Agent shall show in
            reasonable detail the amount payable and the calculations used to
            determine such amount and shall, absent manifest error, be final,
            conclusive and binding upon all parties hereto. With respect to such
            deduction or withholding for or on account of any Taxes and to
            confirm that all such Taxes have been paid to the appropriate
            Governmental Authorities, the Borrower shall promptly (and in any
            event not later than thirty (30) days after receipt) furnish to each
            Lender and the Agent such certificates, receipts and other documents
            as may be required (in the judgment of such Lender or the Agent) to
            establish any tax credit to which such Lender or the Agent may be
            entitled.

                        (iv)  Within thirty (30) days after the date of any
            payment of Taxes or Other Taxes by the Borrower, the Borrower shall
            furnish to the Agent the original or a certified copy of a receipt
            evidencing payment thereof.

                        (v)   Without prejudice to the survival of any other
            agreement of the Borrower hereunder, the agreements and obligations
            of the Borrower contained in this Section 2.15(E) shall survive the
            payment in full of principal and interest hereunder, the termination
            of the Letters of Credit and the termination of this Agreement.

                        (vi)  Each Lender that is not created or organized under
            the laws of the United States of America or a political subdivision
            thereof shall deliver to the Borrower and the Agent on or before the
            Closing Date, or, if later, the date on which such Lender becomes a
            Lender pursuant to Section 13.3, a true and accurate certificate
            executed in duplicate by a duly authorized officer of such Lender,
            in a form satisfactory to the Borrower and the Agent, to the effect
            that such Lender is eligible under the provisions of an applicable
            tax treaty concluded by the United States of America (in which case
            the certificate shall be accompanied by two (2) executed copies of
            Form 1001 of the IRS or successor applicable form) or under Section
            1442 of the Code (in which case the certificate shall be accompanied
            by two copies of Form 4224 of the IRS or successor applicable form)
            or, if such Lender is not a "bank" within the meaning of Section
            881(c)(3)(A) of the Code, two complete copies of IRS Form W-8 or W-9
            or successor applicable form to receive payments of interest
            hereunder without deduction or withholding of United States federal

                                       40

<PAGE>

            income tax. Each such Lender further agrees to deliver to the
            Borrower and the Agent from time to time a true and accurate
            certificate executed in duplicate by a duly authorized officer of
            such Lender substantially in a form satisfactory to the Borrower and
            the Agent, before or promptly upon the occurrence of any event
            requiring a change in the most recent certificate previously
            delivered by it to the Borrower and the Agent pursuant to this
            Section 2.15(E)(vi).

            2.16. Notification of Advances, Interest Rates, Prepayments and
Aggregate Revolving Loan Commitment Reductions. Promptly after receipt thereof,
the Agent will notify each Lender of the contents of each Aggregate Revolving
Loan Commitment reduction notice, Borrowing/Conversion/Continuation Notice, and
repayment notice received by it hereunder. The Agent will notify each Lender of
the interest rate and Agreed Currency applicable to each Eurocurrency Rate Loan
promptly upon determination of such interest rate and Agreed Currency and will
give each Lender prompt notice of each change in the Alternate Base Rate.

            2.17. Lending Installations. Each Lender may book its Loans or
Letters of Credit at any Lending Installation selected by such Lender and may
change its Lending Installation from time to time. All terms of this Agreement
shall apply to any such Lending Installation. Each Lender may, by written or
facsimile notice to the Agent and the Borrower, designate a Lending Installation
through which Loans will be made by it and for whose account Loan payments
and/or payments of L/C Obligations are to be made.

            2.18. Non-Receipt of Funds by the Agent. Unless the Borrower or a
Lender, as the case may be, notifies the Agent prior to the date on which it is
scheduled to make payment to the Agent of (i) in the case of a Lender, the
proceeds of a Loan or (ii) in the case of the Borrower, a payment of principal,
interest or fees to the Agent for the account of the Lenders, that it does not
intend to make such payment, the Agent may assume that such payment has been
made. The Agent may, but shall not be obligated to, make the amount of such
payment available to the intended recipient in reliance upon such assumption. If
such Lender or the Borrower, as the case may be, has not in fact made such
payment to the Agent, the recipient of such payment shall, on demand by the
Agent, repay to the Agent the amount so made available together with interest
thereon in respect of each day during the period commencing on the date such
amount was so made available by the Agent until the date the Agent recovers such
amount at a rate per annum equal to (i) in the case of payment by a Lender, the
Federal Funds Effective Rate for such day or (ii) in the case of payment by the
Borrower, the interest rate applicable to the relevant Loan.

            2.19. Termination Date. This Agreement shall be effective until the
Termination Date. Notwithstanding the termination of this Agreement, until (A)
all of the Obligations (other than contingent indemnity obligations) shall have
been fully and indefeasibly paid and satisfied, (B) all financing arrangements
among the Borrower and the Lenders shall have been terminated (other than under
Hedging Agreements or other agreements with respect to Hedging Obligations) and
(C) all of the Letters of Credit shall have expired, been canceled or terminated
(collectively, the "TERMINATION CONDITIONS"), all of the rights and remedies
under this Agreement and the other Loan Documents shall survive. Upon
satisfaction of the Termination Conditions, the Agent shall execute and deliver
to the Borrower and the Subsidiaries of the Borrower all Uniform Commercial Code
termination statements, mortgage assignments or satisfactions and

                                       41

<PAGE>

similar documents which the Borrower and the Subsidiaries of the Borrower shall
reasonably request to evidence such termination.

            2.20. Replacement of Certain Lenders. In the event a Lender
("AFFECTED LENDER") shall have: (i) failed to fund its Pro Rata Share of any
Advance requested by the Borrower, or to fund a Revolving Loan in order to repay
Swing Line Loans pursuant to Section 2.3(D), or to make payment in respect of
any Alternate Currency Loan purchased by such Lender pursuant to Section
2.21(E), which such Lender is obligated to fund under the terms of this
Agreement and which failure has not been cured, (ii) requested compensation from
the Borrower under Sections 2.15(E), 4.1 or 4.2 to recover Taxes, Other Taxes or
other additional costs incurred by such Lender which are not being incurred
generally by the other Lenders, (iii) delivered a notice pursuant to Section 4.3
claiming that such Lender is unable to extend Eurocurrency Rate Loans to the
Borrower for reasons not generally applicable to the other Lenders or (iv) has
invoked Section 10.2, then, in any such case, the Borrower or the Agent may make
written demand on such Affected Lender (with a copy to the Agent in the case of
a demand by the Borrower and a copy to the Borrower in the case of a demand by
the Agent) for the Affected Lender to assign, and such Affected Lender shall use
commercially reasonable efforts to assign pursuant to one or more duly executed
Assignment Agreements five (5) Business Days after the date of such demand, to
one or more financial institutions that comply with the provisions of Section
13.3(A) which the Borrower or the Agent, as the case may be, shall have engaged
for such purpose ("REPLACEMENT LENDER"), all of such Affected Lender's rights
and obligations under this Agreement and the other Loan Documents (including,
without limitation, its Revolving Loan Commitment, all Loans owing to it, all of
its participation interests in existing Letters of Credit, and its obligation to
participate in additional Letters of Credit and Swing Line Loans and Alternate
Currency Loans hereunder) in accordance with Section 13.3. The Agent agrees,
upon the occurrence of such events with respect to an Affected Lender and upon
the written request of the Borrower, to use its reasonable efforts to obtain the
commitments from one or more financial institutions to act as a Replacement
Lender. The Agent is authorized to execute one or more of such assignment
agreements as attorney-in-fact for any Affected Lender failing to execute and
deliver the same within five (5) Business Days after the date of such demand.
Further, with respect to such assignment the Affected Lender shall have
concurrently received, in cash, all amounts due and owing to the Affected Lender
hereunder or under any other Loan Document, including, without limitation, the
aggregate outstanding principal amount of the Loans owed to such Lender,
together with accrued interest thereon through the date of such assignment,
amounts payable under Sections 2.15(E), 4.1, and 4.2 with respect to such
Affected Lender and compensation payable under Section 2.15(D) in the event of
any replacement of any Affected Lender under clause (ii) or clause (iii) of this
Section 2.20; provided that upon such Affected Lender's replacement, such
Affected Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Sections 2.15(E), 4.1, 4.2, 4.4, and 10.7, as well
as to any fees accrued for its account hereunder and not yet paid, and shall
continue to be obligated under Section 11.8. Upon the replacement of any
Affected Lender pursuant to this Section 2.20, the provisions of Section 9.2
shall continue to apply with respect to Loans which are then outstanding with
respect to which the Affected Lender failed to fund its Pro Rata Share and which
failure has not been cured.

            2.21. Alternate Currency Loans.

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<PAGE>

                  (A)   Upon the satisfaction of the conditions precedent set
      forth in Article V hereof and set forth in the applicable Alternate
      Currency Addendum, from and including the later of the date of this
      Agreement and the date of execution of the applicable Alternate Currency
      Addendum and prior to Termination Date (unless an earlier termination date
      shall be specified in or pursuant to the applicable Alternate Currency
      Addendum), the Alternate Currency Bank agrees, on the terms and conditions
      set forth in this Agreement and in the applicable Alternate Currency
      Addendum, to make Alternate Currency Loans under such Alternate Currency
      Addendum to the applicable Alternate Currency Borrower party to such
      Alternate Currency Addendum from time to time in the applicable Alternate
      Currency, in an amount not to exceed each such Alternate Currency Bank's
      applicable Alternate Currency Commitment; provided, however, at no time
      shall the Dollar Amount of the outstanding principal amount of the
      Alternate Currency Loans for all Alternate Currencies exceed the Maximum
      Eurocurrency Amount other than as a result of currency fluctuations and
      then only to the extent permitted in Section 2.5(B)(ii); provided,
      further, at no time shall the Dollar Amount of the Alternate Currency
      Loans for any specific Alternate Currency exceed the maximum amount
      specified as the maximum amount for such Alternate Currency in the
      applicable Alternate Currency Addendum other than as a result of currency
      fluctuations and then only to the extent permitted in Section 2.5(B)(ii).
      Subject to the terms of this Agreement and the applicable Alternate
      Currency Addendum, the applicable Alternate Currency Borrowers may borrow,
      repay and reborrow Alternate Currency Loans at any time prior to the
      Termination Date (unless an earlier termination date shall be specified in
      or pursuant to the applicable Alternate Currency Addendum). On the
      Termination Date (unless an earlier termination date shall be specified in
      or pursuant to the applicable Alternate Currency Addendum), the
      outstanding principal balance of the Alternate Currency Loans shall be
      paid in full by the applicable Alternate Currency Borrower and prior to
      Termination Date (unless an earlier termination date shall be specified in
      or pursuant to the applicable Alternate Currency Addendum) prepayments of
      the Alternate Currency Loans shall be made by the applicable Alternate
      Currency Borrower if and to the extent required in Section 2.5(B)(ii).

                  (B)   Borrowing Notice. When the applicable Alternate Currency
      Borrower desires to borrow under this Section 2.21, the applicable
      Alternate Currency Borrower shall deliver to the Alternate Currency Bank
      and the Agent a Borrowing/Conversion/Continuation Notice, signed by it, as
      provided in Section 2.8 specifying that the Alternate Currency Borrower is
      requesting an Alternate Currency Loan pursuant to this Section 2.21. Any
      Borrowing/Conversion/Continuation Notice given pursuant to this Section
      2.21 shall be irrevocable.

                  (C)   Termination. Except as otherwise required by applicable
      law, in no event shall the Alternate Currency Bank have the right to
      accelerate the Alternate Currency Loans outstanding under any Alternate
      Currency Addendum or to terminate its commitments (if any) thereunder to
      make Alternate Currency Loans prior to the stated termination date in
      respect thereof, except that the Alternate Currency Bank shall have such
      rights upon an acceleration of the Loans and a termination of the
      Revolving Credit Commitments pursuant to Article IX.

                                       43

<PAGE>

                  (D)   Statements. The Alternate Currency Bank shall furnish to
      the Agent not less frequently than monthly, and at any other time at the
      reasonable request of the Agent, a statement setting forth the outstanding
      Alternate Currency Loans made and repaid during the period since the last
      such report under such Alternate Currency Addendum.

                  (E)   Risk Participation. Immediately and automatically upon
      the occurrence of an Event of Default under Sections 8.1(A), (F) or (G),
      each Lender shall be deemed to have unconditionally and irrevocably
      purchased from the Alternate Currency Bank, without recourse or warranty,
      an undivided interest in and participation in each Alternate Currency Loan
      ratably in accordance with such Lender's Pro Rata Share of the amount of
      such Loan, and immediately and automatically all Alternate Currency Loans
      shall be converted to and redenominated in Dollars equal to the Dollar
      Amount of each such Alternate Currency Loan determined as of the date of
      such conversion; provided, that to the extent such conversion shall occur
      other than at the end of an Interest Period, the applicable Borrower shall
      pay to the Alternate Currency Bank, all losses and breakage costs related
      thereto in accordance with Section 4.4. Each of the Lenders shall pay to
      the Alternate Currency Bank not later than two (2) Business Days following
      a request for payment from such Alternate Currency Bank, in Dollars, an
      amount equal to the undivided interest in and participation in the
      Alternate Currency Loan purchased by such Lender pursuant to this Section
      2.21(E). In the event that any Lender fails to make payment to the
      Alternate Currency Bank of any amount due under this Section 2.21(E), the
      Agent shall be entitled to receive, retain and apply against such
      obligation the principal and interest otherwise payable to such Lender
      hereunder until the Agent receives from such Lender an amount sufficient
      to discharge such Lender's payment obligation as prescribed in this
      Section 2.21(E) together with interest thereon at the Federal Funds
      Effective Rate for each day during the period commencing on the date of
      demand by the Alternate Currency Bank and ending on the date such
      obligation is fully satisfied. The Agent will promptly remit all payments
      received as provided above to the Alternate Currency Bank. In
      consideration of the risk participations prescribed in this Section
      2.21(E), each Lender shall receive, from the accrued interest paid by the
      applicable Borrower on each Alternate Currency Loan, a fee equal to such
      Lender's Pro Rata Share of a portion of the interest accrued on such Loan
      at the Applicable Eurocurrency Margin or Applicable Floating Rate Margin,
      as applicable, minus 0.25% as in effect from time to time during the
      period such interest accrued. Such portion of the interest paid by the
      applicable Borrower on Alternate Currency Loans to the applicable
      Alternate Currency Bank shall be paid as promptly as possible by such
      Alternate Currency Bank to the Agent, and the Agent shall as promptly as
      possible convert such amount into Dollars at the spot rate of exchange in
      accordance with its normal banking practices and apply such resulting
      amount ratably among the Lenders (including the Alternate Currency Banks)
      in proportion to their Pro Rata Share.

                  (F)   Other Provisions Applicable to Alternate Currency Loans.
      The specification of payment of Alternate Currency Loans in the related
      Alternate Currency at a specific place pursuant to this Agreement is of
      the essence. Such Alternate Currency shall be the currency of account and
      payment of such Loans under this Agreement and the applicable Alternate
      Currency Addendum. Notwithstanding anything in this Agreement, the
      obligation of the applicable Alternate Currency Borrower in respect of
      such Loans shall not be discharged by an amount paid in any other currency
      or at another place, whether pursuant to a judgment or

                                       44

<PAGE>

      otherwise, to the extent the amount so paid, on prompt conversion into the
      applicable Alternate Currency and transfer to such Lender under normal
      banking procedure, does not yield the amount of such Alternate Currency
      due under this Agreement, the applicable Alternate Currency Addendum. In
      the event that any payment, whether pursuant to a judgment or otherwise,
      upon conversion and transfer, does not result in payment of the amount of
      such Alternate Currency due under this Agreement or the applicable
      Alternate Currency Addendum, such Lender shall have an independent cause
      of action against each of the Borrowers for the currency deficit.

            2.22. Judgment Currency. If, for the purposes of obtaining judgment
in any court, it is necessary to convert a sum due from any Borrower hereunder
in the currency expressed to be payable herein (the "SPECIFIED CURRENCY") into
another currency, the parties hereto agree, to the fullest extent that they may
effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Agent could purchase the specified
currency with such other currency at the Agent's main office in Chicago,
Illinois on the Business Day preceding that on which the final, non-appealable
judgment is given. The obligations of each Borrower in respect of any sum due to
any Lender or the Agent hereunder shall, notwithstanding any judgment in a
currency other than the specified currency, be discharged only to the extent
that on the Business Day following receipt by such Lender or the Agent (as the
case may be) of any sum adjudged to be so due in such other currency such Lender
or the Agent (as the case may be) may in accordance with normal, reasonable
banking procedures purchase the specified currency with such other currency. If
the amount of the specified currency so purchased is less than the sum
originally due to such Lender or the Agent, as the case may be, in the specified
currency, each Borrower agrees, to the fullest extent that it may effectively do
so, as a separate obligation and notwithstanding any such judgment, to indemnify
such Lender or the Agent, as the case may be, against such loss, and if the
amount of the specified currency so purchased exceeds (a) the sum originally due
to any Lender or the Agent, as the case may be, in the specified currency and
(b) any amounts shared with other Lenders as a result of allocations of such
excess as a disproportionate payment to such Lender under Section 12.2, such
Lender or the Agent, as the case may be, agrees to remit such excess to such
Borrower.

            2.23. Market Disruption; Denomination of Amounts in Dollars; Dollar
Equivalent of Reimbursement Obligations.

                  (A)   Notwithstanding the satisfaction of all conditions
      referred to in this Article II with respect to any Advance in any Agreed
      Currency other than Dollars or Alternate Currency, as applicable, if there
      shall occur on or prior to the date of such Advance any change in national
      or international financial, political or economic conditions or currency
      exchange rates or exchange controls which would in the reasonable opinion
      of the Borrower, any Alternate Currency Borrower, the Alternate Currency
      Bank, Agent or the Required Lenders make it impracticable for the
      Eurocurrency Rate Loans or Alternate Currency Loans comprising such
      Advance to be denominated in the Agreed Currency or Alternate Currency, as
      applicable, specified by the applicable Borrower, then the Agent shall
      forthwith give notice thereof to such Borrower , the Alternate Currency
      Bank and the Lenders, or the Borrower shall give notice to the Agent, the
      Alternate Currency Bank and the Lenders, as the case may be, and such
      Eurocurrency Rate Loans or Alternate Currency Loans shall not be

                                       45

<PAGE>

      denominated in such currency but shall be made on such Borrowing Date in
      Dollars, in an aggregate principal amount equal to the Dollar Amount of
      the aggregate principal amount specified in the related Borrowing Notice,
      as Floating Rate Loans, unless the Borrower notifies the Agent at least
      one (1) Business Day before such date that (i) it elects not to borrow on
      such date or (ii) it elects to borrow on such date in a different Agreed
      Currency or Alternate Currency, as the case may be, in which the
      denomination of such Loans would in the opinion of the Agent, the
      Alternate Currency Bank, if applicable, and the Required Lenders be
      practicable and in an aggregate principal amount equal to the Dollar
      Amount of the aggregate principal amount specified in the related
      Borrowing Notice.

                  (B)   Except as set forth below, all amounts referenced in
      this Article II shall be calculated using the Dollar Amount determined
      based upon the Equivalent Amount in effect as of the date of any
      determination thereof; provided, however, that payment by the Borrower of
      any Advance denominated in an currency other than Dollars, shall be in
      Dollars using the Dollar Amount of the Advance (calculated based upon the
      Equivalent Amount in effect on the date of payment thereof) and in the
      event that the Borrower does not reimburse the Agent and the Lenders are
      required to fund a purchase of a participation in such Advance, such
      purchase shall be made in Dollars in an amount equal to the Dollar Amount
      of such Advance (calculated based upon the Equivalent Amount in effect on
      the date of payment thereof). Notwithstanding anything herein to the
      contrary, the full risk of currency fluctuations shall be borne by the
      Borrower and the Borrower agrees to indemnify and hold harmless each
      Issuing Bank, the Agent and the Lenders from and against any loss
      resulting from any borrowing denominated in a currency other than in
      Dollars and for which the Lenders are not reimbursed on the day of such
      borrowing.

            2.24. Payments to be Free and Clear.

                  (A)   All sums payable by each Borrower hereunder, whether in
      respect of principal, interest, fees or otherwise, shall be paid without
      deduction for any present and future taxes, levies, imposts, deductions,
      charges or withholdings imposed by any government or any political
      subdivision or taxing authority thereof (other than any tax on or measured
      by the net income, profits or gains of any Lender) and all interest,
      penalties or similar liabilities with respect thereto (collectively,
      "TAXES"), which amounts shall be paid by the applicable Borrower as
      provided in this Section 2.24.

                  (B)   Grossing-up of Payments. If: (a) any Borrower or any
      other Person is required by law to make any deduction or withholding on
      account of any such taxes from any sum paid or expressed to be payable by
      the applicable Borrower to any Lender under this Agreement; or (b) any
      party to this Agreement (or any Person on its behalf) other than any
      Borrower is required by law to make any deduction or withholding from, or
      any payment on or calculated by reference to the amount of, any such sum
      received or receivable (other than on account of any excluded taxes) by
      any Lender under this Agreement then:

                        (i)   the applicable party shall notify the Agent and,
            if such party is not the applicable Borrower, the Agent will notify
            the applicable Borrower of any such

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<PAGE>

            requirement or any change in any such requirement as soon as such
            party becomes aware of it;

                        (ii)  the applicable Borrower shall pay any such taxes
            before the later of (i) the date on which penalties attached thereto
            become due and payable or (ii) fifteen (15) days after the date of
            receipt by the applicable Borrower of such written notification
            provided by the Agent in accordance with paragraph (i) if such
            applicable party is not the applicable Borrower, such payment to be
            made (if the liability to pay is imposed on such Borrower) for its
            own account or (if that liability is imposed on any party to this
            Agreement) on behalf of and in the name of that party; and

                        (iii) the sum payable by the applicable Borrower in
            respect of which the relevant deduction, withholding or payment is
            required shall (except, in the case of any such payment, to the
            extent that the amount thereof is not ascertainable when that sum is
            paid) be increased to the extent necessary to ensure that, after the
            making of that deduction, withholding or payment, that party
            receives on the due date and retains (free from any liability in
            respect of any such deduction, withholding or payment) a sum equal
            to that which it would have received and so retained had no such
            deduction, withholding or payment been required or made.

            2.25. Additional Alternate Currency Borrowers. The Borrower may at
any time or from time to time, with the consent of the Agent, add as a party to
this Agreement any Subsidiary to be an Alternate Currency Borrower hereunder by
the execution and delivery to the Agent and the Lenders of (a) a duly completed
Assumption Letter by such Subsidiary, with the written consent of the Borrower
at the foot thereof and (b) such other guaranty and subordinated intercompany
indebtedness documents as may be reasonably required by the Agent and the
Required Lenders. Upon such execution, delivery and consent, such Subsidiary
shall for all purposes be a party hereto as an Alternate Currency Borrower as
fully as if it had executed and delivered this Agreement. So long as the
principal of and interest on any Advances made to any Alternate Currency
Borrower under this Agreement shall have been repaid or paid in full and all
other obligations of such Alternate Currency Borrower under this Agreement shall
have been fully performed, the Borrower may, by not less than five (5) Business
Days' prior notice to the Agent (which shall promptly notify the Lenders
thereof), terminate such Subsidiary's status as an "Alternate Currency
Borrower".

            2.26. Increase of Aggregate Revolving Loan Commitment.

                  (A)   At any time, the Borrower may request (in consultation
      with the Agent) that the Aggregate Revolving Loan Commitment be increased
      by an aggregate amount of up to $20,000,000 without the prior written
      consent of the Required Lenders, provided, that, the Aggregate Revolving
      Loan Commitment shall at no time exceed $50,000,000. Such request shall be
      made in a written notice given to the Agent and the Lenders by the
      Borrower not less than twenty (20) Business Days prior to the proposed
      effective date of such increase, which notice (a "COMMITMENT INCREASE
      NOTICE") shall specify the amount of the proposed increase in the
      Aggregate Revolving Loan Commitment and the proposed effective date of
      such increase. In the event of such a Commitment Increase Notice, each of
      the Lenders shall be

                                       47

<PAGE>

      given the opportunity to participate in the requested increase ratably in
      proportions that their respective Revolving Loan Commitments bear to the
      Aggregate Revolving Loan Commitment. No Lender shall have any obligation
      to increase its Revolving Loan Commitment pursuant to a Commitment
      Increase Notice.

                  (B)   On or prior to the date that is ten (10) Business Days
      after receipt of the Commitment Increase Notice, each Lender shall submit
      to the Agent a notice indicating the maximum amount by which it is willing
      to increase its Revolving Loan Commitment in connection with such
      Commitment Increase Notice (any such notice, a "LENDER INCREASE NOTICE").
      Any Lender which does not submit a Lender Increase Notice to the Agent
      prior to the expiration of such ten (10) Business Day period shall be
      deemed to have denied any increase in its Revolving Loan Commitment. In
      the event that the increases of Revolving Loan Commitments set forth in
      the Lender Increase Notices exceed the amount requested by the Borrower in
      the Commitment Increase Notice, the Agent and the Arranger shall have the
      right, in consultation with the Borrower, to allocate the amount of
      increases necessary to meet the Borrower's Commitment Increase Notice. In
      the event that the Lender Increase Notices are less than the amount
      requested by the Borrower, not later than three (3) Business Days prior to
      the proposed effective date the Borrower may notify the Agent of any
      financial institution that shall have agreed to become a "Lender" party
      hereto (a "PROPOSED NEW LENDER") in connection with the Commitment
      Increase Notice. Any Proposed New Lender shall be subject to the consent
      of the Agent (which consent shall not be unreasonably withheld). If the
      Borrower shall not have arranged any Proposed New Lender(s) to commit to
      the shortfall from the Lender Increase Notices, then the Borrower shall be
      deemed to have reduced the amount of its Commitment Increase Notice to the
      aggregate amount set forth in the Lender Increase Notices. Based upon the
      Lender Increase Notices, any allocations made in connection therewith and
      any notice regarding any Proposed New Lender, if applicable, the Agent
      shall notify the Borrower and the Lenders on or before the Business Day
      immediately prior to the proposed effective date of the amount of each
      Lender's and Proposed New Lender's Revolving Loan Commitment (the
      "EFFECTIVE COMMITMENT AMOUNT") and the amount of the Aggregate Revolving
      Loan Commitment, which amount shall be effective on the following Business
      Day.

                  (C)   Any increase in the Aggregate Revolving Loan Commitment
      shall be subject to the following conditions precedent: (i) the Borrower
      shall have obtained the consent thereto of each Domestic Incorporated
      Subsidiary of the Borrower party to the Guaranty and its reaffirmation of
      any Loan Documents executed by it, which consent and reaffirmation shall
      be in writing and in form and substance reasonably satisfactory to the
      Agent, (ii) as of the date of the Commitment Increase Notice and as of the
      proposed effective date of the increase in the Aggregate Revolving Loan
      Commitment, all representations and warranties set forth in Article VI
      hereof shall be true and correct as though made on such date (unless any
      such representation and warranty is made as of a specific date, in which
      case, such representation and warranty shall be true and correct as of
      such date) and no Default or Unmatured Default shall have occurred and
      then be continuing, (iii) the Borrower, the Agent and each Proposed New
      Lender or Lender that shall have agreed to provide a "Revolving Loan
      Commitment" in support of such increase in the Aggregate Revolving Loan
      Commitment shall have executed and delivered a Commitment and Acceptance

                                       48
<PAGE>

      ("COMMITMENT AND ACCEPTANCE") substantially in the form of Exhibit L
      hereto and (iv) the Borrower, each Alternate Currency Borrower and any
      Proposed New Lender shall otherwise have executed and delivered such other
      instruments, documents and agreements as the Agent shall have reasonably
      requested in connection with such increase. If any fee shall be charged by
      the Lenders in connection with any such increase, such fee shall be in
      accordance with then prevailing market condition. Upon satisfaction of the
      conditions precedent to any increase in the Aggregate Revolving Loan
      Commitment, the Agent shall promptly advise the Borrower and each Lender
      of the effective date of such increase. Upon the effective date of any
      increase in the Aggregate Revolving Loan Commitment that is provided by a
      Proposed New Lender, such Proposed New Lender shall be a party to this
      Agreement as a Lender and shall have the rights and obligations of a
      Lender hereunder. Nothing contained herein shall constitute, or otherwise
      be deemed to be, a commitment on the part of any Lender to increase its
      Revolving Loan Commitment hereunder at any time.

                  (D)   Upon the execution and delivery of such Commitment and
      Acceptance, the Agent shall reallocate any outstanding Loans and L/C
      Obligations ratably among the Lenders after giving effect to each such
      increase in the Aggregate Commitment; provided, that the Borrower hereby
      agrees to compensate each Lender for all losses, expenses and liabilities
      incurred by such Lender in connection with the sale and assignment of any
      Eurocurrency Rate Loans hereunder on the terms and in the manner as set
      forth in Article IV.

                   ARTICLE III: THE LETTER OF CREDIT FACILITY

            3.1. Obligation to Issue Letters of Credit. Subject to the terms and
conditions of this Agreement and in reliance upon the representations,
warranties and covenants of the Borrower herein set forth, each Issuing Bank
hereby agrees to issue for the account of the Borrower through such Issuing
Bank's branches as it and the Borrower may jointly agree, one or more Letters of
Credit denominated in Dollars or an Agreed Letter of Credit Currency in
accordance with this Article III, from time to time during the period,
commencing on the Closing Date and ending on the Business Day prior to the
Termination Date.

            3.2. Transitional Provision. Schedule 3.2 contains a schedule of
certain letters of credit issued for the account of the Borrower prior to the
Closing Date. Subject to the satisfaction of the conditions contained in
Sections 5.1 and 5.2, from and after the Closing Date such letters of credit
shall be deemed to be Letters of Credit issued pursuant to this Article III.

            3.3. Types and Amounts. No Issuing Bank shall have any obligation to
and no Issuing Bank shall:

                  (A)   issue (or amend) any Letter of Credit if on the date of
      issuance (or amendment), before or after giving effect to the Letter of
      Credit requested hereunder, (i) the Dollar Amount of the Revolving Credit
      Obligations at such time would exceed the lesser of the Aggregate
      Revolving Loan Commitment at such time, or (ii) the aggregate outstanding
      Dollar Amount of the L/C Obligations would exceed $15,000,000, or (iii)
      the Dollar Amount of all Eurocurrency Rate Loans and Letters of Credit in
      Agreed Currencies other than Dollars would exceed the Maximum Eurocurrency
      Amount; or

                                       49
<PAGE>

                  (B)   issue (or amend) any Letter of Credit which has an
      expiration date later than the date which is the earlier of (x) one (1)
      year after the date of issuance thereof or (y) five (5) Business Days
      immediately preceding the Termination Date; provided that any Letter of
      Credit with a one-year term may provide for additional one-year periods
      (which in no event shall extend beyond the date referred to in the
      preceding clause (y).

            3.4. Conditions. In addition to being subject to the satisfaction of
the conditions contained in Sections 5.1 and 5.2, the obligation of an Issuing
Bank to issue any Letter of Credit is subject to the satisfaction in full of the
following conditions:

                  (A)   the Borrower shall have delivered to the applicable
      Issuing Bank at such times and in such manner as such Issuing Bank may
      reasonably prescribe, a request for issuance of such Letter of Credit in
      substantially the form of Exhibit C hereto (each such request a "REQUEST
      FOR LETTER OF CREDIT"), duly executed applications for such Letter of
      Credit, and such other documents, instructions and agreements as may be
      required pursuant to the terms thereof (all such applications, documents,
      instructions, and agreements being referred to herein as the "L/C
      DOCUMENTS"), and the proposed Letter of Credit shall be reasonably
      satisfactory to such Issuing Bank as to form and content; and

                  (B)   as of the date of issuance no order, judgment or decree
      of any court, arbitrator or Governmental Authority shall purport by its
      terms to enjoin or restrain the applicable Issuing Bank from issuing such
      Letter of Credit and no law, rule or regulation applicable to such Issuing
      Bank and no request or directive (whether or not having the force of law)
      from a Governmental Authority with jurisdiction over such Issuing Bank
      shall prohibit or request that such Issuing Bank refrain from the issuance
      of Letters of Credit generally or the issuance of that Letter of Credit.

            3.5. Procedure for Issuance of Letters of Credit.

                  (A)   Subject to the terms and conditions of this Article III
      and provided that the applicable conditions set forth in Sections 5.1 and
      5.2 hereof have been satisfied, the applicable Issuing Bank shall, on the
      requested date, issue a Letter of Credit on behalf of the Borrower in
      accordance with such Issuing Bank's usual and customary business practices
      and, in this connection, such Issuing Bank may assume that the applicable
      conditions set forth in Section 5.2 hereof have been satisfied unless it
      shall have received notice to the contrary from the Agent or a Lender or
      has knowledge that the applicable conditions have not been met.

                  (B)   The applicable Issuing Bank shall give the Agent written
      or telex notice, or telephonic notice confirmed promptly thereafter in
      writing, of the issuance of a Letter of Credit, provided, however, that
      the failure to provide such notice shall not result in any liability on
      the part of such Issuing Bank.

                  (C)   No Issuing Bank shall extend or amend any Letter of
      Credit unless the requirements of this Section 3.5 are met as though a new
      Letter of Credit was being requested and issued.

                                       50
<PAGE>

            3.6. Letter of Credit Participation. On the date of this Agreement,
with respect to the Letters of Credit identified on Schedule 3.2, and
immediately upon the issuance of each Letter of Credit hereunder, each Lender
with a Pro Rata Share shall be deemed to have automatically, irrevocably and
unconditionally purchased and received from the applicable Issuing Bank an
undivided interest and participation in and to such Letter of Credit, the
obligations of the Borrower in respect thereof, and the liability of such
Issuing Bank thereunder (collectively, an "L/C INTEREST") in an amount equal to
the Dollar Amount available for drawing under such Letter of Credit multiplied
by such Lender's Pro Rata Share. Each Issuing Bank will notify each Lender
promptly upon presentation to it of an L/C Draft or upon any other draw under a
Letter of Credit. On or before the Business Day on which an Issuing Bank makes
payment of each such L/C Draft or, in the case of any other draw on a Letter of
Credit, on demand by the Agent or the applicable Issuing Bank, each Lender shall
make payment to the Agent, for the account of the applicable Issuing Bank, in
immediately available funds in the Agreed Currency in an amount equal to such
Lender's Pro Rata Share of the Dollar Amount of such payment or draw. The
obligation of each Lender to reimburse the Issuing Banks under this Section 3.6
shall be unconditional, continuing, irrevocable and absolute. In the event that
any Lender fails to make payment to the Agent of any amount due under this
Section 3.6, the Agent shall be entitled to receive, retain and apply against
such obligation the principal and interest otherwise payable to such Lender
hereunder until the Agent receives such payment from such Lender or such
obligation is otherwise fully satisfied; provided, however, that nothing
contained in this sentence shall relieve such Lender of its obligation to
reimburse the applicable Issuing Bank for such amount in accordance with this
Section 3.6.

            3.7. Reimbursement Obligation. The Borrower agrees unconditionally,
irrevocably and absolutely to pay immediately to the Agent, for the account of
the Lenders, the amount of each advance drawn under or pursuant to a Letter of
Credit or an L/C Draft related thereto (such obligation of the Borrower to
reimburse the Agent for an advance made under a Letter of Credit or L/C Draft
being hereinafter referred to as a "REIMBURSEMENT OBLIGATION" with respect to
such Letter of Credit or L/C Draft), each such reimbursement to be made by the
Borrower no later than the Business Day on which the applicable Issuing Bank
makes payment of each such L/C Draft or, if the Borrower shall have received
notice of a Reimbursement Obligation later than 12:00 p.m. (Chicago time), on
any Business Day or on a day which is not a Business Day, no later than 12:00
p.m. (Chicago time), on the immediately following Business Day or, in the case
of any other draw on a Letter of Credit, the date specified in the demand of
such Issuing Bank. If the Borrower at any time fails to repay a Reimbursement
Obligation pursuant to this Section 3.7, the Borrower shall be deemed to have
elected to borrow Revolving Loans from the Lenders, as of the date of the
advance giving rise to the Reimbursement Obligation, equal in amount to the
Dollar Amount of the unpaid Reimbursement Obligation. Such Revolving Loans shall
be made as of the date of the payment giving rise to such Reimbursement
Obligation, automatically, without notice and without any requirement to satisfy
the conditions precedent otherwise applicable to an Advance of Revolving Loans.
Such Revolving Loans shall constitute a Floating Rate Advance, the proceeds of
which Advance shall be used to repay such Reimbursement Obligation. If, for any
reason, the Borrower fails to repay a Reimbursement Obligation on the day such
Reimbursement Obligation arises and, for any reason, the Lenders are unable to
make or have no obligation to make Revolving Loans, then such Reimbursement

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<PAGE>

Obligation shall bear interest from and after such day, until paid in full, at
the interest rate applicable to a Floating Rate Advance.

            3.8. Letter of Credit Fees. The Borrower agrees to pay:

                  (A)   quarterly, in arrears, to the Agent for the ratable
      benefit of the Lenders, except as set forth in Section 9.2, a letter of
      credit fee at a rate per annum equal to the Applicable L/C Fee Percentage
      on the average daily outstanding Dollar Amount available for drawing under
      all Letters of Credit;

                  (B)   quarterly, in arrears, to the applicable Issuing Bank, a
      letter of credit fronting fee equal to 0.0625% per annum on the average
      daily outstanding face amount available for drawing under all Letters of
      Credit issued by such Issuing Bank; and

                  (C)   to the applicable Issuing Bank, all customary fees and
      other issuance, amendment, document examination, negotiation and
      presentment expenses and related charges in connection with the issuance,
      amendment, presentation of L/C Drafts, and the like customarily charged by
      such Issuing Banks with respect to standby and commercial Letters of
      Credit, including, without limitation, standard commissions with respect
      to commercial Letters of Credit, payable at the time of invoice of such
      amounts.

            3.9. Issuing Bank Reporting Requirements. In addition to the notices
required by Section 3.5(C), each Issuing Bank shall, no later than the tenth
(10th) Business Day following the last day of each month, provide to the Agent,
upon the Agent's request, schedules, in form and substance reasonably
satisfactory to the Agent, showing the date of issue, account party, Agreed
Currency and amount in such Agreed Currency, expiration date and the reference
number of each Letter of Credit issued by it outstanding at any time during such
month and the aggregate amount payable by the Borrower during such month. In
addition, upon the request of the Agent, each Issuing Bank shall furnish to the
Agent copies of any Letter of Credit and any application for or reimbursement
agreement with respect to a Letter of Credit to which the Issuing Bank is party
and such other documentation as may reasonably be requested by the Agent. Upon
the request of any Lender, the Agent will provide to such Lender information
concerning such Letters of Credit.

            3.10. Indemnification; Exoneration.

                  (A)   In addition to amounts payable as elsewhere provided in
      this Article III, the Borrower hereby agrees to protect, indemnify, pay
      and save harmless the Agent, each Issuing Bank and each Lender from and
      against any and all liabilities and costs which the Agent, such Issuing
      Bank or such Lender may incur or be subject to as a consequence, direct or
      indirect, of (i) the issuance of any Letter of Credit other than, in the
      case of the applicable Issuing Bank, as a result of its Gross Negligence
      or willful misconduct, as determined by the final judgment of a court of
      competent jurisdiction, or (ii) the failure of the applicable Issuing Bank
      to honor a drawing under a Letter of Credit as a result of any act or
      omission, whether rightful or wrongful, of any present or future de jure
      or de facto Governmental Authority (all such acts or omissions herein
      called "GOVERNMENTAL ACTS").

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<PAGE>

                  (B)   As among the Borrower, the Lenders, the Agent and the
      Issuing Banks, the Borrower assumes all risks of the acts and omissions
      of, or misuse of such Letter of Credit by, the beneficiary of any Letters
      of Credit. In furtherance and not in limitation of the foregoing, subject
      to the provisions of the Letter of Credit applications and Letter of
      Credit reimbursement agreements executed by the Borrower at the time of
      request for any Letter of Credit, neither the Agent, any Issuing Bank nor
      any Lender shall be responsible (in the absence of Gross Negligence or
      willful misconduct in connection therewith, as determined by the final
      judgment of a court of competent jurisdiction): (i) for the form,
      validity, sufficiency, accuracy, genuineness or legal effect of any
      document submitted by any party in connection with the application for and
      issuance of the Letters of Credit, even if it should in fact prove to be
      in any or all respects invalid, insufficient, inaccurate, fraudulent or
      forged; (ii) for the validity or sufficiency of any instrument
      transferring or assigning or purporting to transfer or assign a Letter of
      Credit or the rights or benefits thereunder or proceeds thereof, in whole
      or in part, which may prove to be invalid or ineffective for any reason;
      (iii) for failure of the beneficiary of a Letter of Credit to comply duly
      with conditions required in order to draw upon such Letter of Credit; (iv)
      for errors, omissions, interruptions or delays in transmission or delivery
      of any messages, by mail, cable, telegraph, telex, or other similar form
      of teletransmission or otherwise; (v) for errors in interpretation of
      technical trade terms; (vi) for any loss or delay in the transmission or
      otherwise of any document required in order to make a drawing under any
      Letter of Credit or of the proceeds thereof; (vii) for the misapplication
      by the beneficiary of a Letter of Credit of the proceeds of any drawing
      under such Letter of Credit; and (viii) for any consequences arising from
      causes beyond the control of the Agent, the Issuing Banks and the Lenders,
      including, without limitation, any Governmental Acts. None of the above
      shall affect, impair, or prevent the vesting of any Issuing Bank's rights
      or powers under this Section 3.10.

                  (C)   In furtherance and extension and not in limitation of
      the specific provisions hereinabove set forth, any action taken or
      omitted by any Issuing Bank under or in connection with the Letters of
      Credit or any related certificates shall not, in the absence of Gross
      Negligence or willful misconduct, as determined by the final judgment of a
      court of competent jurisdiction, put the applicable Issuing Bank, the
      Agent or any Lender under any resulting liability to the Borrower or
      relieve the Borrower of any of its obligations hereunder to any such
      Person.

                  (D)   Without prejudice to the survival of any other agreement
      of the Borrower hereunder, the agreements and obligations of the Borrower
      contained in this Section 3.10 shall survive the payment in full of
      principal and interest hereunder, the termination of the Letters of Credit
      and the termination of this Agreement.

            3.11. Cash Collateral. Notwithstanding anything to the contrary
herein or in any application for a Letter of Credit, upon payout or termination
of this Agreement in full in cash, the Borrower shall, on the Business Day that
it receives Agent's demand, deliver to the Agent for the benefit of the Lenders
and the Issuing Banks, cash, or other collateral of a type satisfactory to the
Required Lenders, having a value, as determined by such Lenders, equal to one
hundred five percent (105%) of the aggregate Dollar Amount of the outstanding
L/C Obligations. In addition, if the Revolving Credit Availability is at any
time less than the Dollar Amount of all contingent

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<PAGE>

L/C Obligations outstanding at any time, the Borrower shall deposit cash
collateral with the Agent in Dollars in an amount equal to one-hundred five
percent (105%) of the Dollar Amount by which such L/C Obligations exceed such
Revolving Credit Availability. Any such collateral shall be held by the Agent in
a separate account appropriately designated as a cash collateral account in
relation to this Agreement and the Letters of Credit and retained by the Agent
for the benefit of the Lenders and the Issuing Banks as collateral security for
the Borrower's obligations in respect of this Agreement and each of the Letters
of Credit and L/C Drafts. Such amounts shall be applied to reimburse the Issuing
Banks for drawings or payments under or pursuant to Letters of Credit or L/C
Drafts, or if no such reimbursement is required, to payment of such of the other
Obligations as the Agent shall determine. If no Default shall be continuing,
amounts remaining in any cash collateral account established pursuant to this
Section 3.11 which are not to be applied to reimburse an Issuing Bank for
amounts actually paid or to be paid by such Issuing Bank in respect of a Letter
of Credit or L/C Draft, shall be returned to the Borrower within one (1)
Business Day (after deduction of the Agent's expenses incurred in connection
with such cash collateral account).

                      ARTICLE IV: CHANGE IN CIRCUMSTANCES

            4.1. Yield Protection. If any law or any governmental or
quasi-governmental rule, regulation, policy, guideline or directive (whether or
not having the force of law) adopted after the date of this Agreement and having
general applicability to all banks within the jurisdiction in which such Lender
operates (excluding, for the avoidance of doubt, the effect of and phasing in of
capital requirements or other regulations or guidelines passed prior to the date
of this Agreement), or any interpretation or application thereof by any
Governmental Authority charged with the interpretation or application thereof,
or the compliance of any Lender therewith,

                  (A)   subjects any Lender or any applicable Lending
      Installation to any tax, duty, charge or withholding on or from payments
      due from the Borrower (excluding taxation of the overall net income of any
      Lender or taxation of a similar basis, which are governed by Section
      2.15(E)), or changes the basis of taxation of payments to any Lender in
      respect of its Loans, its L/C Interests, the Letters of Credit or other
      amounts due it hereunder, or

                  (B)   imposes or increases or deems applicable any reserve,
      assessment, insurance charge, special deposit or similar requirement
      against assets of, deposits with or for the account of, or credit extended
      by, any Lender or any applicable Lending Installation (other than reserves
      and assessments taken into account in determining the interest rate
      applicable to Eurocurrency Rate Loans) with respect to its Loans, L/C
      Interests or the Letters of Credit, or

                  (C)   imposes any other condition the result of which is to
      increase the cost to any Lender or any applicable Lending Installation of
      making, funding or maintaining the Loans, the L/C Interests or the Letters
      of Credit or reduces any amount received by any Lender or any applicable
      Lending Installation in connection with Loans or Letters of Credit, or
      requires any Lender or any applicable Lending Installation to make any
      payment calculated by reference to the amount of Loans or L/C Interests
      held or interest received by it or by reference to the Letters of Credit,
      by an amount deemed material by such Lender;

                                       54
<PAGE>

and the result of any of the foregoing is to increase the cost to that Lender of
making, renewing or maintaining its Loans, L/C Interests, or Letters of Credit
or to reduce any amount received under this Agreement, then, within fifteen (15)
days after receipt by the Borrower of written demand by such Lender pursuant to
Section 4.5, the Borrower shall pay such Lender that portion of such increased
expense incurred or reduction in an amount received which such Lender determines
is attributable to making, funding and maintaining its Loans, L/C Interests,
Letters of Credit and its Revolving Loan Commitment.

            4.2. Changes in Capital Adequacy Regulations. If a Lender determines
(i) the amount of capital required or expected to be maintained by such Lender,
any Lending Installation of such Lender or any corporation controlling such
Lender is increased as a result of a "Change" (as defined below), and (ii) such
increase in capital will result in an increase in the cost to such Lender of
maintaining its Loans, L/C Interests, the Letters of Credit or its obligation to
make Loans hereunder, then, within fifteen (15) days after receipt by the
Borrower of written demand by such Lender pursuant to Section 4.5, the Borrower
shall pay such Lender the amount necessary to compensate for any shortfall in
the rate of return on the portion of such increased capital which such Lender
determines is attributable to this Agreement, its Loans, its L/C Interests, the
Letters of Credit or its obligation to make Loans hereunder (after taking into
account such Lender's policies as to capital adequacy).

            4.3. Availability of Types of Advances. If (i) any Lender determines
that maintenance of its Eurocurrency Rate Loans at a suitable Lending
Installation would violate any applicable law, rule, regulation or directive,
whether or not having the force of law, or (ii) the Required Lenders determine
that (x) deposits of a type, currency or maturity appropriate to match fund
Eurocurrency Rate Advances are not available or (y) the interest rate applicable
to a Eurocurrency Rate Advance or Alternate Currency Advance does not accurately
reflect the cost of making or maintaining such an Advance, then the Agent shall
suspend the availability of the affected Type of Advance and, in the case of any
occurrence set forth in clause (i), require any Advances of the affected Type to
be repaid or converted into another Type.

            4.4. Funding Indemnification. Subject to Sections 2.5(B)(i), (ii),
and (iii), if any payment of a Eurocurrency Rate Advance occurs on a date which
is not the last day of the applicable Interest Period, whether because of
acceleration, prepayment, or otherwise, or a Eurocurrency Rate Advance is not
made on the date specified by the Borrower for any reason other than default by
the Lenders, the Borrower indemnifies each Lender for any loss or cost incurred
by it resulting therefrom, including, without limitation, any loss or cost in
liquidating or employing deposits acquired to fund or maintain the Eurocurrency
Rate Advance. In connection with any assignment by any Lender of any portion of
the Loans made pursuant to Section 13.3, and if, notwithstanding the provisions
of Section 2.4, the Borrower has requested and the Agent has consented to the
use of the Eurocurrency Rate, the Borrower shall be deemed to have repaid all
outstanding Eurocurrency Rate Advances as of the effective date of such
assignment and reborrowed such amount as a Floating Rate Advance and/or
Eurocurrency Rate Advance (chosen in accordance with the provisions of Section
2.4) and the indemnification provisions under this Section 4.4 shall apply.

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<PAGE>

            4.5. Lender Statements; Survival of Indemnity. If reasonably
possible, each Lender shall designate an alternate Lending Installation with
respect to its Eurocurrency Rate Loans to reduce any liability of the Borrower
to such Lender under Sections 4.1 and 4.2 or to avoid the unavailability of a
Type of Advance under Section 4.3, so long as such designation is not
disadvantageous to such Lender. Each Lender requiring compensation pursuant to
Section 2.15(E) or to this Article IV shall use its reasonable efforts to notify
the Borrower and the Agent in writing of any Change, law, policy, rule,
guideline or directive giving rise to such demand for compensation not later
than ninety (90) days following the date upon which the responsible account
officer of such Lender knows or should have known of such Change, law, policy,
rule, guideline or directive. Any demand for compensation pursuant to this
Article IV shall be in writing and shall state the amount due, if any, under
Section 4.1, 4.2 or 4.4 and shall set forth in reasonable detail the
calculations upon which such Lender determined such amount. Such written demand
shall be rebuttably presumed correct for all purposes. Determination of amounts
payable under such Sections in connection with a Eurocurrency Rate Loan shall be
calculated as though each Lender funded its Eurocurrency Rate Loan through the
purchase of a deposit of the type, currency and maturity corresponding to the
deposit used as a reference in determining the Eurocurrency Rate applicable to
such Loan, whether in fact that is the case or not. The obligations of the
Borrower under Sections 4.1, 4.2 and 4.4 shall survive payment of the
Obligations and termination of this Agreement.

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<PAGE>

                        ARTICLE V: CONDITIONS PRECEDENT

            5.1. Initial Advances and Letters of Credit. The Revolving Loan
Commitments of the Lenders shall not become effective unless and until the
Borrower has furnished, on or before the Closing Date, to the Agent each of the
following, with (if applicable) sufficient copies for the Lenders, all in form
and substance satisfactory to the Agent and the Lenders:

                  (1) Copies of the Certificate of Incorporation of the
      Borrower, together with all amendments and a certificate of good standing,
      both certified by the appropriate governmental officer in its jurisdiction
      of incorporation;

                  (2) Copies, certified by the Secretary or Assistant Secretary
      of the Borrower, of its By-Laws and of its Board of Directors' resolutions
      (and resolutions of other bodies, if any are deemed necessary by counsel
      for any Lender) authorizing the execution of the Loan Documents;

                  (3) An incumbency certificate, executed by the Secretary or
      Assistant Secretary of the Borrower, which shall identify by name and
      title and bear the signature of the officers of the Borrower authorized to
      sign the Loan Documents and to make borrowings hereunder, upon which
      certificate the Lenders shall be entitled to rely until informed of any
      change in writing by the Borrower;

                  (4) A certificate, in form and substance satisfactory to the
      Agent, signed by the chief financial officer of the Borrower, stating that
      on the date of this Agreement all the representations in this Agreement
      are true and correct in all material respects (unless such representation
      and warranty is made as of a specific date, in which case, such
      representation and warranty shall be true in all material respects as of
      such date) and no Default or Unmatured Default has occurred and is
      continuing;

                  (5) The written opinions of each opinion of the Borrower's US
      counsel, addressed to the Agent and the Lenders, in substantially the form
      attached hereto as Exhibit E;

                  (6) Evidence reasonably satisfactory to the Agent that there
      exists no injunction or temporary restraining order which, in the
      reasonable judgment of the Agent, would prohibit the making of the Loans
      and the other transactions contemplated by the Loan Documents or any
      litigation seeking such an injunction or restraining order;

                  (7) Such other documents as the Agent or any Lender or its
      counsel may have reasonably requested, including, without limitation, all
      of the documents reflected on the List of Closing Documents attached as
      Exhibit F to this Agreement;

                  (8) The Agent shall have received opinions of value, solvency
      and other appropriate factual information and advice in form and substance
      reasonably satisfactory to it and from the chief financial officer of the
      Borrower supporting the conclusions that after giving effect to the
      transactions contemplated herein, the Borrower and its Subsidiaries on a
      consolidated basis is Solvent and will be Solvent subsequent to

                                       57
<PAGE>

      incurring the indebtedness contemplated under the Loan Documents, will be
      able to pay its debts and liabilities as they become due and will not be
      left with unreasonably small working capital for general corporate
      purposes; and

                  (9) Evidence satisfactory to the Agent that the Borrower has
      paid to the Agent and the Arranger the fees agreed to in the fee letter
      dated April 29, 2004, among the Agent, the Arranger and the Borrower.

            5.2. Each Advance and Letter of Credit. The Lenders shall not be
required to make any Advance, or issue any Letter of Credit, unless on the
applicable Borrowing Date, or in the case of a Letter of Credit, the date on
which the Letter of Credit is to be issued:

                  (A)   There exists no Default or Unmatured Default;

                  (B)   The representations and warranties contained in Article
      VI are true and correct in all material respects as of such Borrowing Date
      (unless such representation and warranty is made as of a specific date, in
      which case, such representation and warranty shall be true in all material
      respects as of such date) except for changes in the Schedules to this
      Agreement reflecting transactions permitted by or not in violation of this
      Agreement or reflecting changes made on or prior to the Closing Date that
      are not reasonably expected to evidence a Material Adverse Effect; and

                  (C)   (i) The Revolving Credit Obligations do not, and after
      making such proposed Advance or issuing such Letter of Credit would not,
      exceed the Aggregate Revolving Loan Commitment, (ii) the aggregate
      outstanding principal Dollar Amount of all Eurocurrency Rate Advances in
      Agreed Currencies other than Dollars and all L/C Obligations in Agreed
      Letter of Credit Currencies other than Dollars and all Alternate Currency
      Loans does not and would not exceed the Maximum Eurocurrency Amount and
      (iii) the aggregate outstanding Dollar Amount of all L/C Obligations does
      not and would not exceed $15,000,000.

            Each Borrowing/Conversion/Continuation Notice with respect to each
such Advance and the letter of credit application with respect to each Letter of
Credit shall constitute a representation and warranty by the Borrower that the
conditions contained in Sections 5.2(A), (B) and (C) have been satisfied. Any
Lender may require a duly completed officer's certificate in substantially the
form of Exhibit G hereto and/or a duly completed compliance certificate in
substantially the form of Exhibit H hereto as a condition to making an Advance.

            5.3. Initial Advance to Each New Alternate Currency Borrower. No
Alternate Currency Bank shall be required to make any Alternate Currency Loans,
in each case, to a new Alternate Currency Borrower added after the Closing Date
unless the Borrower has furnished or caused to be furnished to the Agent with
sufficient copies for the Lenders:

                  (a) The Assumption Letter executed and delivered by such
      Alternate Currency Borrower and containing the written consent of the
      Borrower thereon, as contemplated by Article II;

                                       58
<PAGE>

                  (b) Copies of the Certificate of Incorporation (or other
      comparable constituent document) of the Alternate Currency Borrower,
      together with all amendments and a certificate of good standing, both
      certified by the appropriate governmental officer in its jurisdiction of
      organization;

                  (c) Copies, certified by the Secretary or Assistant Secretary
      of the Alternate Currency Borrower, of its regulations (or other
      comparable governing document) and of its Board of Directors' (or
      comparable governing body's) resolutions (and resolutions of other bodies,
      if any are deemed necessary by the Agent) approving the Assumption Letter;

                  (d) An incumbency certificate, executed by the Secretary,
      Assistant Secretary, Director or Authorized Officer of the Alternate
      Currency Borrower, which shall identify by name and title and bear the
      signature of the officers of such Alternate Currency Borrower authorized
      to sign the Assumption Letter and the other documents to be executed and
      delivered by such Alternate Currency Borrower hereunder, upon which
      certificate the Agent and the Lenders shall be entitled to rely until
      informed of any change in writing by the Borrower;

                  (e) An opinion of counsel to such Alternate Currency Borrower,
      in a form reasonably acceptable to the Agent and its counsel; and

                  (f) Such other instruments, documents or agreements as the
      Agent or its counsel may reasonably request, all in form and substance
      reasonably satisfactory to the Agent and its counsel.

                   ARTICLE VI: REPRESENTATIONS AND WARRANTIES

                  In order to induce the Agent and the Lenders to enter into
this Agreement and t o make the Loans and the other financial accommodations to
the Borrower and to issue the Letters of Credit described herein, the Borrower
represents and warrants as follows to each Lender and the Agent as of the date
of this Agreement and on the Closing Date, giving effect to the consummation of
the transactions contemplated by the Loan Documents on the Closing Date, and
thereafter on each date as required by Section 5.2:

            6.1. Organization; Corporate Powers. The Borrower and each of its
Subsidiaries (i) is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, (ii) except in
respect to the failure of Chromart Corporation and Designer's Atelier, Inc. to
be qualified to do business in the state of New York, is duly qualified to do
business as a foreign corporation and is in good standing under the laws of each
jurisdiction in which failure to be so qualified and in good standing could not
reasonably be expected to have a Material Adverse Effect, and (iii) has all
requisite corporate power and authority to own, operate and encumber its
property and to conduct its business as presently conducted and as proposed to
be conducted.

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<PAGE>

            6.2. Authority.

                  (A)   The Borrower and each of its Subsidiaries has the
      requisite corporate power and authority to execute, deliver and perform
      each of the Loan Documents which have been executed by it as required by
      this Agreement and the other Loan Documents on or prior to Closing Date
      and (ii) to file the Loan Documents which have been filed by it as
      required by this Agreement, the other Loan Documents or otherwise on or
      prior to the Closing Date with any Governmental Authority.

                  (B)   The execution, delivery, performance and filing, as the
      case may be, of each of the Loan Documents which have been executed or
      filed as required by this Agreement, the other Loan Documents or otherwise
      on or prior to the Closing Date and to which the Borrower or any of its
      Subsidiaries is party, and the consummation of the transactions
      contemplated thereby, have been duly approved by the respective boards of
      directors and, if necessary, the shareholders of the Borrower and its
      Subsidiaries, and such approvals have not been rescinded. No other
      corporate action or proceedings on the part of the Borrower or its
      Subsidiaries are necessary to consummate such transactions.

                  (C)   Each of the Loan Documents to which the Borrower or any
      of its Subsidiaries is a party has been duly executed, delivered or filed,
      as the case may be, by it and constitutes its legal, valid and binding
      obligation, enforceable against it in accordance with its terms (except as
      enforceability may be limited by bankruptcy, insolvency, or similar laws
      affecting the enforcement of creditors' rights generally), is in full
      force and effect and no material term or condition thereof has been
      amended, modified or waived from the terms and conditions contained in the
      Loan Documents delivered to the Agent pursuant to Section 5.1 without the
      prior written consent of the Agent, and the Borrower and its Subsidiaries
      have, and, to the best of the Borrower's and its Subsidiaries' knowledge,
      all other parties thereto have, performed and complied with all the terms,
      provisions, agreements and conditions set forth therein and required to be
      performed or complied with by such parties on or before the Closing Date,
      and no unmatured default, default or breach of any covenant by any such
      party exists thereunder.

            6.3. No Conflict; Governmental Consents. The execution, delivery and
performance of each of the Loan Documents to which the Borrower or any of its
Subsidiaries is a party do not and will not (i) conflict with the certificate or
articles of incorporation or by-laws of the Borrower or any such Subsidiary,
(ii) constitute a tortious interference with any Contractual Obligation of any
Person or conflict with, result in a breach of or constitute (with or without
notice or lapse of time or both) a default under any Requirement of Law
(including, without limitation, any Environmental Property Transfer Act) or
Contractual Obligation of the Borrower or any such Subsidiary, or

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<PAGE>

require termination of any Contractual Obligation, except such interference,
breach, default or termination which individually or in the aggregate could not
reasonably be expected to have a Material Adverse Effect, (iii) with respect to
the Loan Documents, constitute a tortious interference with any Contractual
Obligation of any Person or conflict with, result in a breach of or constitute
(with or without notice or lapse of time or both) a default under any
Requirement of Law (including, without limitation, any Environmental Property
Transfer Act) or Contractual Obligation of the Borrower or any such Subsidiary,
or require termination of any Contractual Obligation, except such interference,
breach, default or termination which individually or in the aggregate could not
reasonably be expected to have a Material Adverse Effect, (iv) result in or
require the creation or imposition of any Lien whatsoever upon any of the
property or assets of the Borrower or any such Subsidiary, other than Liens
permitted or created by the Loan Documents, or (v) require any approval of the
Borrower's or any such Subsidiary's Board of Directors or shareholders except
such as have been obtained. Except as set forth on Schedule 6.3 to this
Agreement, the execution, delivery and performance of each of the Loan Documents
to which the Borrower or any of its Subsidiaries is a party do not and will not
require any registration with, consent or approval of, or notice to, or other
action to, with or by any Governmental Authority, including under any
Environmental Property Transfer Act, except filings, consents or notices which
have been made, obtained or given, or which, if not made, obtained or given,
individually or in the aggregate could not reasonably be expected to have a
Material Adverse Effect.

            6.4. Financial Statements.

                  (A)   The combined pro forma balance sheet, income statements
      and statements of cash flow of the Borrower and its Subsidiaries, copies
      of which are attached hereto as Schedule 6.4 to this Agreement, present on
      a pro forma basis the financial condition of the Borrower and such
      Subsidiaries as of such date, and reflect on a pro forma basis those
      liabilities reflected in the notes thereto and resulting from consummation
      of the transactions contemplated by this Agreement, and the payment or
      accrual of all transaction costs payable on the Closing Date with respect
      to any of the foregoing and demonstrate that the Borrower and its
      Subsidiaries can repay their debt and satisfy their other obligations as
      and when due, and can comply with the requirements of this Agreement. The
      projections and assumptions expressed in the pro forma financials
      referenced in this Section 6.4(A) were prepared in good faith and
      represent management's opinion based on the information available to the
      Borrower at the time so furnished and, since the preparation thereof and
      up to the Closing Date, there has occurred no change in the business,
      financial condition, operations, or prospects of the Borrower or any of
      its Subsidiaries, or the Borrower and its Subsidiaries taken as a whole
      which has had or could reasonably be expected to have a Material Adverse
      Effect.

                  (B)   Complete and accurate copies of the audited financial
      statements and the audit report related thereto of the Borrower and its
      Subsidiaries as at December 31, 2003 and December 31, 2002 have been
      delivered to the Agent.

            6.5. No Material Adverse Change

                  (A)   Since December 31, 2003 up to the Closing Date, there
      has occurred no change in the business, properties, condition (financial
      or otherwise), performance or results of operations of the Borrower, or
      the Borrower and its Subsidiaries taken as a whole or any other event
      which has had or could reasonably be expected to have a Material Adverse
      Effect.

                  (B)   Since the Closing Date, there has occurred no change in
      the business, properties, condition (financial or otherwise), performance
      or results of operations of the

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      Borrower or the Borrower and its Subsidiaries taken as a whole or any
      other event which has had or could reasonably be expected to have a
      Material Adverse Effect.

            6.6. Taxes.

                  (A)   Tax Examinations. All material deficiencies which have
      been asserted against the Borrower or any of the Borrower's Subsidiaries
      as a result of any federal, state, local or foreign tax examination for
      each taxable year in respect of which an examination has been conducted
      have been fully paid or finally settled or are being contested in good
      faith, and as of the Closing Date no issue has been raised by any taxing
      authority in any such examination which, by application of similar
      principles, reasonably can be expected to result in assertion by such
      taxing authority of a material deficiency for any other year not so
      examined which has not been reserved for in the Borrower's consolidated
      financial statements to the extent, if any, required by Agreement
      Accounting Principles. Except as permitted pursuant to Section 7.2(D),
      neither the Borrower nor any of the Borrower's Subsidiaries anticipates
      any material tax liability with respect to the years which have not been
      closed pursuant to applicable law.

                  (B)   Payment of Taxes. All tax returns and reports of the
      Borrower and its Subsidiaries required to be filed have been timely filed,
      and all material taxes, assessments, fees and other governmental charges
      thereupon and upon their respective property, assets, income and
      franchises which are shown in such returns or reports to be due and
      payable have been paid except those items which are being contested in
      good faith and have been reserved for in accordance with Agreement
      Accounting Principles. The Borrower has no knowledge of any proposed tax
      assessment against the Borrower or any of its Subsidiaries that will have
      or could reasonably be expected to have a Material Adverse Effect.

            6.7. Litigation; Loss Contingencies and Violations. Except as set
forth in Schedule 6.7 to this Agreement, there is no action, suit, proceeding,
arbitration or (to the Borrower's knowledge) investigation before or by any
Governmental Authority or private arbitrator pending or, to the Borrower's
knowledge, threatened against the Borrower or any of its Subsidiaries or any
property of any of them (i) challenging the validity or the enforceability of
any material provision of the Loan Documents or (ii) which will have or could
reasonably be expected to have a Material Adverse Effect. There is no material
loss contingency within the meaning of Agreement Accounting Principles which has
not been reflected in the consolidated financial statements of the Borrower
prepared and delivered pursuant to Section 7.1(A) for the fiscal period during
which such material loss contingency was incurred. Neither the Borrower nor any
of its Subsidiaries is (A) in violation of any applicable Requirements of Law
which violation will have or could reasonably be expected to have a Material
Adverse Effect, or (B) subject to or in default with respect to any final
judgment, writ, injunction, restraining order or order of any nature, decree,
rule or regulation of any court or Governmental Authority which will have or
could reasonably be expected to have a Material Adverse Effect.

            6.8. Subsidiaries. Schedule 6.8 to this Agreement (i) contains a
description of the corporate structure of the Borrower, its Subsidiaries and any
other Person in which the Borrower or any of its Subsidiaries holds an Equity
Interest; and (ii) accurately sets forth (A) the correct legal name, the
jurisdiction of incorporation and the jurisdictions in which each of the
Borrower

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and the direct and indirect Subsidiaries of the Borrower are qualified to
transact business as a foreign corporation, (B) the authorized, issued and
outstanding shares of each class of Capital Stock of the Borrower and each of
its Subsidiaries and the owners of such shares (both as of the Closing Date and
on a fully-diluted basis), and (C) a summary of the direct and indirect
partnership, joint venture, or other Equity Interests, if any, of the Borrower
and each Subsidiary of the Borrower in any Person that is not a corporation.
Except as disclosed on Schedule 6.8, none of the issued and outstanding Capital
Stock of the Borrower or any of the Borrower's Subsidiaries is subject to any
vesting, redemption, or repurchase agreement, and there are no warrants or
options outstanding with respect to such Capital Stock. The outstanding Capital
Stock of the Borrower and each of the Borrower's Subsidiaries is duly
authorized, validly issued, fully paid and nonassessable and is not Margin
Stock.

            6.9. ERISA. Except as disclosed on Schedule 6.9, no Benefit Plan has
incurred any accumulated funding deficiency (as defined in Sections 302(a)(2) of
ERISA and 412(a) of the Code) whether or not waived. Neither the Borrower nor
any member of the Controlled Group has incurred any material liability to the
PBGC which remains outstanding other than the payment of premiums, and there are
no premium payments which have become due which are unpaid. Schedule B to the
most recent annual report filed with the IRS with respect to each Benefit Plan
and furnished to the Lenders is complete and accurate. Since the date of each
such Schedule B, there has been no material adverse change in the funding status
or financial condition of the Benefit Plan relating to such Schedule B. Neither
the Borrower nor any member of the Controlled Group has (i) failed to make a
required contribution or payment to a Multiemployer Plan or (ii) made a complete
or partial withdrawal under Sections 4203 or 4205 of ERISA from a Multiemployer
Plan. Neither the Borrower nor any member of the Controlled Group has failed to
make a required installment or any other required payment under Section 412 of
the Code on or before the due date for such installment or other payment.
Neither the Borrower nor any member of the Controlled Group is required to
provide security to a Benefit Plan under Section 401(a)(29) of the Code due to a
Plan amendment that results in an increase in current liability for the plan
year. Except as set forth on Schedule 6.9, neither the Borrower nor any of its
Subsidiaries maintains or contributes to any employee welfare benefit plan
within the meaning of Section 3(1) of ERISA which provides benefits to employees
after termination of employment other than as required by Section 601 of ERISA.
Each Plan which is intended to be qualified under Section 401(a) of the Code as
currently in effect is so qualified in all material respects, and each trust
related to any such Plan is exempt from federal income tax under Section 501(a)
of the Code as currently in effect. The Borrower and all Subsidiaries are in
compliance in all material respects with the responsibilities, obligations and
duties imposed on them by ERISA and the Code with respect to all Plans. Neither
the Borrower nor any of its Subsidiaries nor any fiduciary of any Plan has
engaged in a nonexempt prohibited transaction described in Sections 406 of ERISA
or 4975 of the Code which could reasonably be expected to subject the Borrower
to liability in excess of $5,000,000. Neither the Borrower nor any member of the
Controlled Group has taken or failed to take any action which would constitute
or result in a Termination Event, which action or inaction could reasonably be
expected to subject the Borrower or any of its Subsidiaries to liability,
individually or in the aggregate, in excess of $5,000,000. Neither the Borrower
nor any Subsidiary is subject to any liability under Sections 4063, 4064, 4069,
4204 or 4212(c) of ERISA and no other member of the Controlled Group is subject
to any liability under Sections 4063, 4064, 4069, 4204 or 4212(c) of ERISA which
could reasonably be expected to

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subject the Borrower or any of its Subsidiaries to liability, individually or in
the aggregate, in excess of $5,000,000 (other than liabilities of any ERISA
affiliate which could not, by operation of law or otherwise, become a liability
of the Borrower or any Subsidiary). Except as set forth on Schedule 6.9, neither
the Borrower nor any of its Subsidiaries has, by reason of the transactions
contemplated hereby, any obligation to make any payment to any employee pursuant
to any Plan or existing contract or arrangement.

            6.10. Accuracy of Information. To the knowledge of the Borrower, the
information, exhibits and reports furnished by or on behalf of the Borrower and
any of its Subsidiaries to the Agent or to any Lender in connection with the
negotiation of, or compliance with, the Loan Documents, the representations and
warranties of the Borrower and its Subsidiaries contained in the Loan Documents,
and all certificates and documents delivered to the Agent and the Lenders
pursuant to the terms thereof, taken as a whole, do not contain as of the date
thereof any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements contained herein or therein, in light
of the circumstances under which they were made, not misleading in any material
respect.

            6.11. Securities Activities. Neither the Borrower nor any of its
Subsidiaries is engaged in the business of extending credit for the purpose of
purchasing or carrying Margin Stock.

            6.12. Material Agreements. Neither the Borrower nor any Subsidiary
is a party to any Contractual Obligation which, as of the Closing Date or as of
the date on which such Contractual Obligation was incurred individually or in
the aggregate could reasonably be expected to have a Material Adverse Effect.
Neither Borrower nor any Subsidiary is subject to any charter or other corporate
restriction which individually or in the aggregate has had or could reasonably
be expected to have a Material Adverse Effect. Neither the Borrower nor any of
its Subsidiaries has received written notice that (i) it is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in any Contractual Obligation applicable to it, or (ii) any
condition exists which, with the giving of notice or the lapse of time or both,
would constitute a default with respect to any such Contractual Obligation, in
each case, except where such default or defaults, if any, individually or in the
aggregate could not reasonably be expected to have a Material Adverse Effect.

            6.13. Compliance with Laws. The Borrower and its Subsidiaries are in
compliance with all Requirements of Law applicable to them and their respective
businesses, in each case where the failure to so comply individually or in the
aggregate could reasonably be expected to have a Material Adverse Effect.

            6.14. Assets and Properties. The Borrower and each of its
Subsidiaries has good and marketable title to all of its assets and properties
(tangible and intangible, real or personal) owned by it or a valid leasehold
interest in all of its leased assets (except insofar as marketability may be
limited by any laws or regulations of any Governmental Authority affecting such
assets), and all such assets and property are free and clear of all Liens,
except Liens permitted under Section 7.3(C). Substantially all of the assets and
properties owned by, leased to or used by the Borrower and/or each such
Subsidiary of the Borrower are in adequate operating condition and repair,
ordinary wear and tear excepted. Neither this Agreement nor any other Loan
Document,

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<PAGE>

nor any transaction contemplated under any such agreement, will affect any
right, title or interest of the Borrower or such Subsidiary in and to any of
such assets in a manner that could reasonably be expected to have a Material
Adverse Effect.

            6.15. Statutory Indebtedness Restrictions. Neither the Borrower nor
any of its Subsidiaries is subject to regulation under the Public Utility
Holding Company Act of 1935, the Federal Power Act, the Interstate Commerce Act,
or the Investment Company Act of 1940, or any other federal or state statute or
regulation which limits its ability to incur indebtedness or its ability to
consummate the transactions contemplated hereby.

            6.16. Insurance. Schedule 6.16 to this Agreement accurately sets
forth as of the Closing Date all insurance policies and programs currently in
effect with respect to the respective properties and assets and business of the
Borrower and its Subsidiaries, specifying, for each such policy and program, (i)
the amount thereof, (ii) the risks insured against thereby, (iii) the name of
the insurer and each insured party thereunder, (iv) the policy or other
identification number thereof, (v) the expiration date thereof, (vi) the annual
premium with respect thereto, and (vii) any reserves relating to any
self-insurance program that is in effect. Such insurance policies and programs
reflect coverage that is reasonably consistent with prudent industry practice.

            6.17. Labor Matters.

            As of the Closing Date, no attempt to organize the employees of the
Borrower, and no labor disputes, strikes or walkouts affecting the operations of
the Borrower or any of its Subsidiaries, is pending, or, to the Borrower's
knowledge, threatened, planned or contemplated which could reasonably be
expected to have a Material Adverse Effect.

            6.18. No Default or Unmatured Default. No Default or Unmatured
Default has occurred and is continuing.

            6.19. Environmental Matters.

                  (A)   Except as disclosed on Schedule 6.19 to this Agreement

                        (i)   the operations of the Borrower and its
            Subsidiaries comply in all material respects with Environmental,
            Health or Safety Requirements of Law;

                        (ii)  the Borrower and its Subsidiaries have all
            permits, licenses or other authorizations required under
            Environmental, Health or Safety Requirements of Law and are in
            material compliance with such permits;

                        (iii) neither the Borrower, any of its Subsidiaries nor
            any of their respective present property or operations, or, to the
            Borrower's or any of its Subsidiaries' knowledge, any of their
            respective past property or operations, are subject to or the
            subject of, any investigation known to the Borrower or any of its
            Subsidiaries, any judicial or administrative proceeding, order,
            judgment, decree, settlement or other agreement respecting: (A) any
            material violation of Environmental, Health or Safety

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<PAGE>

            Requirements of Law; (B) any remedial action; or (C) any material
            claims or liabilities arising from the Release or threatened Release
            of a Contaminant into the environment;

                        (iv)  there is not now, nor to the Borrower's or any of
            its Subsidiaries' knowledge has there ever been, on or in the
            property of the Borrower or any of its Subsidiaries any landfill,
            waste pile, underground storage tanks, aboveground storage tanks,
            surface impoundment or hazardous waste storage facility of any kind,
            any PCBs used in hydraulic oils, electric transformers or other
            equipment, or any asbestos containing material; and

                        (v)   to the knowledge of the Borrower or any of its
            Subsidiaries, neither the Borrower nor any of its Subsidiaries has
            any material Contingent Obligation in connection with any Release or
            threatened Release of a Contaminant into the environment.

                  (B)   For purposes of this Section 6.19 "material" means any
      noncompliance or basis for liability which could reasonably be likely to
      subject the Borrower or any of its Subsidiaries to liability, individually
      or in the aggregate, in excess of $5,000,000.

            6.20. Solvency. After giving effect to (i) the Loans to be made on
the Closing Date or such other date as Loans requested hereunder are made, (ii)
the other transactions contemplated by this Agreement and the other Loan
Documents and (iii) the payment and accrual of all transaction costs with
respect to the foregoing, the Borrower and its Subsidiaries taken as a whole are
Solvent.

            6.21. Representations and Warranties of each Alternate Currency
Borrower. Each Alternate Currency Borrower represents and warrants to the
Lenders that:

                  (A)   Organization and Corporate Powers. Such Alternate
      Currency Borrower (i) is a company duly formed and validly existing and in
      good standing under the laws of the state or country of its organization
      (such jurisdiction being hereinafter referred to as the "HOME COUNTRY");
      (ii) has the requisite power and authority to own its property and assets
      and to carry on its business substantially as now conducted except where
      the failure to have such requisite authority would not have a material
      adverse effect on such Alternate Currency Borrower; and (iii) has the
      requisite power and authority and legal right to execute and deliver the
      Alternate Currency Addendum to which it is a party and each other Loan
      Document to which it is a party and the performance by it of its
      obligations thereunder have been duly authorized by proper corporate
      proceedings.

                  (B)   Binding Effect. The Alternate Currency Addendum and each
      other Loan Document executed by such Alternate Currency Borrower is the
      legal, valid and binding obligations of such Alternate Currency Borrower
      enforceable in accordance with their respective terms, except as
      enforceability may be limited by bankruptcy, insolvency or similar laws
      affecting the enforcement of creditors' rights generally and general
      equitable principles.

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                  (C)   No Conflict; Government Consent. Neither the execution
      and delivery by such Alternate Currency Borrower of the Loan Documents to
      which it is a party, nor the consummation by it of the transactions
      therein contemplated to be consummated by it, nor compliance by such
      Alternate Currency Borrower with the provisions thereof will violate any
      law, rule, regulation, order, writ, judgment, injunction, decree or award
      binding on such Alternate Currency Borrower or any of its Subsidiaries or
      such Alternate Currency Borrower's or any of its Subsidiaries' memoranda
      or articles of association or the provisions of any indenture, instrument
      or agreement to which such Alternate Currency Borrower or any of its
      Subsidiaries is a party or is subject, or by which it, or its property, is
      bound, or conflict with or constitute a default thereunder, or result in
      the creation or imposition of any lien in, of or on the property of such
      Alternate Currency Borrower or any of its Subsidiaries pursuant to the
      terms of any such indenture, instrument or agreement in any such case
      which violation, conflict, default, creation or imposition could
      reasonably be expected to have a material adverse effect on such Alternate
      Currency Borrower. No order, consent, approval, license, authorization, or
      validation of, or filing, recording or registration with, or exemption by,
      any governmental agency is required to authorize, or is required in
      connection with the execution, delivery and performance of, or the
      legality, validity, binding effect or enforceability of, any of the Loan
      Documents.

                  (D)   Filing. To ensure the enforceability or admissibility in
      evidence of this Agreement, the Alternate Currency Addendum to which such
      Alternate Currency Borrower is a party and each other Loan Document to
      which such Alternate Currency Borrower is a party in its Home Country, it
      is not necessary that this Agreement, such Alternate Currency Addendum, or
      any other Loan Document to which such Alternate Currency Borrower is a
      party or any other document be filed or recorded with any court or other
      authority in its Home Country or that any stamp or similar tax be paid to
      or in respect of this Agreement, such Alternate Currency Addendum or any
      other Loan Document of such Alternate Currency Borrower. The qualification
      by any Lender or the Agent for admission to do business under the laws of
      such Alternate Currency Borrower's Home Country does not constitute a
      condition to, and the failure to so qualify does not affect, the exercise
      by any Lender or the Agent of any right, privilege, or remedy afforded to
      any Lender or the Agent in connection with the Loan Documents to which
      such Alternate Currency Borrower is a party or the enforcement of any such
      right, privilege, or remedy against Alternate Currency Borrower. The
      performance by any Lender or the Agent of any action required or permitted
      under the Loan Documents will not (i) violate any law or regulation of
      such Alternate Currency Borrower's Home Country or any political
      subdivision thereof, (ii) result in any tax or other monetary liability to
      such party pursuant to the laws of such Alternate Currency Borrower's Home
      Country or political subdivision or taxing authority thereof (provided
      that, should any such action result in any such tax or other monetary
      liability to the Lender or the Agent, the Borrower hereby agrees to
      indemnify such Lender or the Agent, as the case may be, against (x) any
      such tax or other monetary liability and (y) any increase in any tax or
      other monetary liability which results from such action by such Lender or
      the Agent and, to the extent the Borrower makes such indemnification, the
      incurrence of such liability by the Agent or any Lender will not
      constitute a Default) or (iii) violate any rule or regulation of any
      federation or organization or similar entity of which the such Alternate
      Currency Borrower's Home Country is a member.

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<PAGE>

                  (E)   No Immunity. Neither such Alternate Currency Borrower
      nor any of its assets is entitled to immunity from suit, execution,
      attachment or other legal process. Such Alternate Currency Borrower's
      execution and delivery of the Loan Documents to which it is a party
      constitute, and the exercise of its rights and performance of and
      compliance with its obligations under such Loan Documents will constitute,
      private and commercial acts done and performed for private and commercial
      purposes.

                  (F)   Application of Representations and Warranties. It is
      understood and agreed by the parties hereto that the representations and
      warranties of each Alternate Currency Borrower in this Section 6.22 shall
      only be applicable to such Alternate Currency Borrower on and after the
      date of its execution of an Assumption Letter and any applicable Alternate
      Currency Addendum.

                             ARTICLE VII: COVENANTS

            The Borrower covenants and agrees that so long as any Revolving Loan
Commitments are outstanding and thereafter until payment in full of all of the
Obligations (other than contingent indemnity obligations) and termination of all
Letters of Credit, unless the Required Lenders shall otherwise give prior
written consent:

            7.1. Reporting. The Borrower shall:

                  (A)   Financial Reporting. Furnish to the Agent (with
      sufficient copies for each of the Lenders):

                        (i)   Quarterly Reports. As soon as practicable, and in
            any event within fifty (50) days after the end of the first three
            fiscal quarters, the consolidated and consolidating balance sheet of
            the Borrower and its Subsidiaries as at the end of such period and
            the related consolidated and consolidating statements of income and
            cash flows of the Borrower 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, certified by the
            chief financial officer of the Borrower on behalf of the Borrower as
            fairly presenting in all material respects the consolidated and
            consolidating financial position of the Borrower and its
            Subsidiaries as at the dates indicated and the results of their
            operations and cash flows for the periods indicated in accordance
            with Agreement Accounting Principles, subject to normal year-end
            audit adjustments.

                        (ii)  Annual Reports. As soon as practicable, and in any
            event within ninety-five (95) days after the end of each fiscal
            year, (a) the consolidated balance sheet of the Borrower and its
            Subsidiaries as at the end of such fiscal year and the related
            consolidated statements of income, stockholders' equity and cash
            flows of the Borrower and its Subsidiaries for such fiscal year, and
            in comparative form the corresponding figures for the previous
            fiscal year along with consolidating schedules in form and substance
            sufficient to calculate the financial covenants set forth in Section
            7.4, and (b) an audit report on the items listed in clause (a)
            hereof (other than the consolidating schedules) of independent
            certified public accountants of recognized national standing,

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<PAGE>

            which audit report shall be unqualified and shall state that such
            financial statements fairly present the consolidated financial
            position of the Borrower and its Subsidiaries as at the dates
            indicated and the results of their operations and cash flows for the
            periods indicated in conformity with Agreement Accounting Principles
            and that the examination by such accountants in connection with such
            consolidated financial statements has been made in accordance with
            generally accepted auditing standards. The deliveries made pursuant
            to this clause (ii) shall be accompanied by (x) any management
            letter prepared by the above-referenced accountants, and (y) a
            certificate of such accountants that, in the course of their
            examination necessary for their certification of the foregoing, they
            have obtained no knowledge of any Default or Unmatured Default, or
            if, in the opinion of such accountants, any Default or Unmatured
            Default shall exist, stating the nature and status thereof.

                        (iii) Officer's Certificate. Together with each delivery
            of any financial statement (a) pursuant to clauses (i) and (ii) of
            this Section 7.1(A), an Officer's Certificate of the Borrower,
            substantially in the form of Exhibit G attached hereto and made a
            part hereof, stating that (x) the representations and warranties of
            the Borrower contained in Article VI hereof shall have been true and
            correct in all material respects (unless such representation or
            warranty is made as of a specific date, in which case, such
            representation and warranty shall be true in all material respects
            as of such date) at all times during the period covered by such
            financial statements and as of the date of such Officer's
            Certificate and (y) as of the date of such Officer's Certificate no
            Default or Unmatured Default exists, or if any Default or Unmatured
            Default exists, stating the nature and status thereof and (b)
            pursuant to clauses (i) and (ii) of this Section 7.1(A), a
            compliance certificate, substantially in the form of Exhibit H
            attached hereto and made a part hereof, signed by the Borrower's
            chief financial officer, setting forth calculations for the period
            then ended for Section 2.5(B), if applicable, which demonstrate
            compliance, when applicable, with the provisions of Sections 7.3(A)
            through (G) and Section 7.4, and which calculate the Leverage Ratio
            for purposes of determining the then Applicable Floating Rate
            Margin, Applicable Eurocurrency Margin, Applicable L/C Fee
            Percentage and Applicable Commitment Fee Percentage.

                  (B)   Notice of Default. Promptly upon any of the chief
      executive officer, chief operating officer, chief financial officer,
      treasurer or controller of the Borrower obtaining actual knowledge (i) of
      any condition or event which constitutes a Default or Unmatured Default,
      or becoming aware that any Lender or Agent has given any written notice to
      any Authorized Officer with respect to a claimed Default or Unmatured
      Default under this Agreement, or (ii) that any Person has given any
      written notice to any Authorized Officer of the Borrower or any Subsidiary
      of the Borrower or taken any other action with respect to a claimed
      default or event or condition of the type referred to in Section 8.1(E),
      the Borrower shall deliver to the Agent and the Lenders an Officer's
      Certificate specifying (a) the nature and period of existence of any such
      claimed default, Default, Unmatured Default, condition or event, (b) the
      notice given or action taken by such Person in connection therewith, and
      (c) what action the Borrower has taken, is taking and proposes to take
      with respect thereto.

                                       69
<PAGE>

                  (C)   Lawsuits. (i) Promptly upon the Borrower obtaining
      actual knowledge of the institution of, or written threat of, any action,
      suit, proceeding, governmental investigation or arbitration, by or before
      any Governmental Authority, against or affecting the Borrower or any of
      its Subsidiaries or any property of the Borrower or any of its
      Subsidiaries not previously disclosed pursuant to Section 6.7, which
      action, suit, proceeding, governmental investigation or arbitration
      exposes, or in the case of multiple actions, suits, proceedings,
      governmental investigations or arbitrations arising out of the same
      general allegations or circumstances which expose, in the Borrower's
      reasonable judgment, the Borrower or any of its Subsidiaries to liability
      in an amount aggregating $5,000,000 or more (exclusive of claims covered
      by insurance policies of the Borrower or any of its Subsidiaries unless
      the insurers of such claims have disclaimed coverage or reserved the right
      to disclaim coverage on such claims and exclusive of claims covered by the
      indemnity of a financially responsible indemnitor in favor of the Borrower
      or any of its Subsidiaries unless the indemnitor has disclaimed or
      reserved the right to disclaim coverage thereof), give written notice
      thereof to the Agent and the Lenders and provide such other information as
      may be reasonably available to enable each Lender and the Agent and its
      counsel to evaluate such matters; and (ii) in addition to the requirements
      set forth in clause (i) of this Section 7.1(C), upon request of the Agent
      or the Required Lenders, promptly give written notice of the status of any
      action, suit, proceeding, governmental investigation or arbitration
      covered by a report delivered pursuant to clause (i) above and provide
      such other information as may be reasonably available to it that would not
      jeopardize any attorney-client privilege by disclosure to the Lenders to
      enable each Lender and the Agent and its counsel to evaluate such matters.

                  (D)   ERISA Notices. Deliver or cause to be delivered to the
      Agent and the Lenders, at the Borrower's expense, the following
      information and notices as soon as reasonably possible, and in any event:

                        (i)   (a) within ten (10) Business Days after the
            Borrower obtains knowledge that a Termination Event has occurred, a
            written statement of the chief financial officer of the Borrower
            describing such Termination Event and the action, if any, which the
            Borrower has taken, is taking or proposes to take with respect
            thereto, and when known, any action taken or threatened by the IRS,
            DOL or PBGC with respect thereto and (b) within ten (10) Business
            Days after any member of the Controlled Group obtains knowledge that
            a Termination Event has occurred which could reasonably be expected
            to subject the Borrower to liability in excess of $5,000,000, a
            written statement of the chief financial officer of the Borrower
            describing such Termination Event and the action, if any, which the
            member of the Controlled Group has taken, is taking or proposes to
            take with respect thereto, and when known, any action taken or
            threatened by the IRS, DOL or PBGC with respect thereto;

                        (ii)  within ten (10) Business Days after the Borrower
            or any of its Subsidiaries obtains knowledge that a prohibited
            transaction (defined in Sections 406 of ERISA and Section 4975 of
            the Code) has occurred, a statement of the chief financial officer
            of the Borrower describing such transaction and the action which the
            Borrower or such Subsidiary has taken, is taking or proposes to take
            with respect thereto;

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                        (iii) within ten (10) Business Days after the material
            increase in the benefits of any existing Benefit Plan or the
            establishment of any new Benefit Plan or the commencement of, or
            obligation to commence, material contributions to any Benefit Plan
            or Multiemployer Plan to which the Borrower or any member of the
            Controlled Group was not previously contributing, notification of
            such increase, establishment, commencement or obligation to commence
            and the amount of such contributions;

                        (iv)  within ten (10) Business Days after the Borrower
            or any of its Subsidiaries receives notice of any unfavorable
            determination letter from the IRS regarding the qualification of a
            Plan under Section 401(a) of the Code, copies of each such letter;

                        (v)   within ten (10) Business Days after the
            establishment of any material foreign employee benefit plan (other
            than the establishment of a defined contribution plan under English
            law within one hundred eighty (180) days of the Closing Date) or the
            commencement of, or obligation to commence, material contributions
            to any foreign employee benefit plan to which the Borrower or any
            Subsidiary was not previously contributing, notification of such
            establishment, commencement or obligation to commence and the amount
            of such contributions;

                        (vi)  within ten (10) Business Days after the filing
            thereof with the DOL, IRS or PBGC, copies of each annual report
            (form 5500 series), including Schedule B thereto, filed with respect
            to each Benefit Plan;

                        (vii) within ten (10) Business Days after receipt by the
            Borrower or any member of the Controlled Group of each actuarial
            report for any Benefit Plan or Multiemployer Plan and each annual
            report for any Multiemployer Plan, copies of each such report;

                        (viii) within ten (10) Business Days after the filing
            thereof with the IRS, a copy of each funding waiver request filed
            with respect to any Benefit Plan and all communications received by
            the Borrower or a member of the Controlled Group with respect to
            such request;

                        (ix)  within ten (10) Business Days after receipt by the
            Borrower or any member of the Controlled Group of the PBGC's
            intention to terminate a Benefit Plan or to have a trustee appointed
            to administer a Benefit Plan, copies of each such notice;

                        (x)   within ten (10) Business Days after receipt by the
            Borrower or any member of the Controlled Group of a notice from a
            Multiemployer Plan regarding the imposition of withdrawal liability,
            copies of each such notice;

                        (xi)  within ten (10) Business Days after the Borrower
            or any member of the Controlled Group fails to make a required
            installment or any other required payment under Section 412 of the
            Code on or before the due date for such installment or payment, a
            notification of such failure; and

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                        (xii) within ten (10) Business Days after the Borrower
            or any member of the Controlled Group knows or has reason to know
            that (a) a Multiemployer Plan has been terminated, (b) the
            administrator or plan sponsor of a Multiemployer Plan intends to
            terminate a Multiemployer Plan, or (c) the PBGC has instituted or
            will institute proceedings under Section 4042 of ERISA to terminate
            a Multiemployer Plan.

For purposes of this Section 7.1(D), the Borrower, any of its Subsidiaries and
any member of the Controlled Group shall be deemed to know all facts known by
the administrator of any Plan of which the Borrower or any member of the
Controlled Group or such Subsidiary is the plan sponsor. In addition, for
purposes of this Section 7.1(D), "material" means any noncompliance or basis for
liability which could reasonably be likely to subject the Borrower or any of its
Subsidiaries to liability, individually or in the aggregate, in excess of
$5,000,000.

                  (E)   Labor Matters. Notify the Agent and the Lenders in
      writing, promptly upon an Authorized Officer of the Borrower learning of
      (i) any material labor dispute to which the Borrower or any of its
      Subsidiaries may become a party, including, without limitation, any
      strikes, lockouts or other disputes relating to such Persons' plants and
      other facilities which could reasonably be expected to have a Material
      Adverse Effect and (ii) any Worker Adjustment and Retraining Notification
      Act liability incurred with respect to the closing of any plant or other
      facility of the Borrower or any of its Subsidiaries.

                  (F)   Other Indebtedness. Deliver to the Agent (i) a copy of
      each regular report, notice or communication regarding potential or actual
      defaults (including any accompanying officer's certificate) delivered by
      or on behalf of the Borrower to the holders of funded Indebtedness with an
      aggregate outstanding principal amount in excess of $5,000,000 pursuant to
      the terms of the agreements governing such Indebtedness, such delivery to
      be made at the same time and by the same means as such notice of default
      is delivered to such holders, and (ii) a copy of each notice or other
      communication received by the Borrower from the from the holders of funded
      Indebtedness with an aggregate outstanding principal amount in excess of
      $5,000,000 regarding potential or actual defaults pursuant to the terms of
      such Indebtedness, such delivery to be made promptly after such notice or
      other communication is received by the Borrower.

                  (G)   Other Reports. Deliver or cause to be delivered to the
      Agent and the Lenders copies of (i) all financial statements, reports and
      notices, if any, sent or made available generally by the Borrower to its
      securities holders or filed with the Commission by the Borrower, and (ii)
      all notifications received from the Commission by the Borrower or its
      Subsidiaries pursuant to the Securities Exchange Act of 1934 and the rules
      promulgated thereunder. Borrower shall include the Agent and the Lenders
      on its standard distribution lists for all press releases made available
      generally by the Borrower or any of the Borrower's Subsidiaries to the
      public concerning material developments in the business of the Borrower or
      any such Subsidiary.

                  (H)   Environmental Notices. As soon as possible and in any
      event within twenty (20) days after receipt by the Borrower, a copy of (i)
      any notice or claim to the effect that the Borrower or any of its
      Subsidiaries is or may be liable to any Person as a result of the

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      Release by the Borrower, any of its Subsidiaries, or any other Person of
      any Contaminant into the environment, and (ii) any notice alleging any
      violation of any Environmental, Health or Safety Requirements of Law by
      the Borrower or any of its Subsidiaries if, in either case, such notice or
      claim relates to an event which could reasonably be expected to subject
      the Borrower and each of its Subsidiaries to liability individually or in
      the aggregate in excess of $5,000,000.

                  (I)   Other Information. Promptly upon receiving a request
      therefor from the Agent, prepare and deliver to the Agent and the Lenders
      such other information with respect to the Borrower, any of its
      Subsidiaries, including, without limitation, schedules identifying any
      Asset Sale or Financing (and the use of the Net Cash Proceeds thereof), as
      from time to time may be reasonably requested by the Agent.

            7.2. Affirmative Covenants.

                  (A)   Corporate Existence, Etc. Except as permitted pursuant
      to Section 7.3(I), the Borrower shall, and shall cause each of its
      Subsidiaries to, at all times maintain its corporate existence and
      preserve and keep, or cause to be preserved and kept, in full force and
      effect its rights and franchises material to its businesses.

                  (B)   Corporate Powers; Conduct of Business. The Borrower
      shall, and shall cause each of its Subsidiaries to, qualify and remain
      qualified to do business in each jurisdiction in which the nature of its
      business requires it to be so qualified and where the failure to be so
      qualified will have or could reasonably be expected to have a Material
      Adverse Effect. Borrower shall cause Chromart Corporation and Designer's
      Atelier, Inc. to become qualified to do business in the state of New York
      as promptly as commercially practical. The Borrower will, and will cause
      each Subsidiary to, carry on and conduct its business in substantially the
      same manner and in substantially the same fields of enterprise as it is
      presently conducted.

                  (C)   Compliance with Laws, Etc. The Borrower shall, and shall
      cause its Subsidiaries to, (a) comply with all Requirements of Law and all
      restrictive covenants affecting such Person or the business, properties,
      assets or operations of such Person, and (b) obtain as needed all permits
      necessary for its operations and maintain such permits in good standing
      unless failure to comply or obtain such permits could not reasonably be
      expected to have a Material Adverse Effect.

                  (D)   Payment of Taxes and Claims; Tax Consolidation. The
      Borrower shall pay, and cause each of its Subsidiaries to pay, (i) all
      material taxes, assessments and other governmental charges imposed upon it
      or on any of its properties or assets or in respect of any of its
      franchises, business, income or property before any penalty or interest
      accrues thereon, and (ii) all claims (including, without limitation,
      claims for labor, services, materials and supplies) for sums which have
      become due and payable and which by law have or may become a Lien (other
      than a Lien permitted by Section 7.3(C)) upon any of the Borrower's or
      such Subsidiary's property or assets, prior to the time when any penalty
      or fine shall be incurred with respect thereto; provided, however, that no
      such taxes, assessments and

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      governmental charges referred to in clause (i) above or claims referred to
      in clause (ii) above (and interest, penalties or fines relating thereto)
      need be paid if being contested in good faith by appropriate proceedings
      diligently instituted and conducted and if such reserve or other
      appropriate provision, if any, as shall be required in conformity with
      Agreement Accounting Principles shall have been made therefor.

                  (E)   Insurance. The Borrower shall maintain for itself and
      its Subsidiaries, or shall cause each of its Subsidiaries to maintain in
      full force and effect, the insurance policies and programs listed on
      Schedule 6.16 to this Agreement or substantially similar policies and
      programs or other policies and programs as reflect coverage that is
      reasonably consistent with prudent industry practice for companies
      operating in the same or similar locations. The Borrowers shall deliver to
      the Agent endorsements (x) to all "All Risk" physical damage insurance
      policies on all of the Borrowers' tangible real and personal property and
      assets and business interruption insurance policies naming the Agent loss
      payee, and (y) to all general liability and other liability policies
      naming the Agent an additional insured. In the event the Borrower or any
      of its Subsidiaries at any time or times hereafter shall fail to obtain or
      maintain any of the policies or insurance required herein or to pay any
      premium in whole or in part relating thereto, then the Agent, without
      waiving or releasing any obligations or resulting Default hereunder, may
      at any time or times thereafter (but shall be under no obligation to do
      so) obtain and maintain such policies of insurance and pay such premiums
      and take any other action with respect thereto which the Agent reasonably
      deems advisable. All sums so disbursed by the Agent shall constitute part
      of the Obligations, payable as provided in this Agreement.

                  (F)   Inspection of Property; Books and Records; Discussions.
      The Borrower shall permit and cause each of the Borrower's Subsidiaries to
      permit, any authorized representative(s) designated by either the Agent or
      any Lender to visit and inspect any of the properties of the Borrower or
      any of its Subsidiaries, to examine, audit, check and make copies of their
      respective financial and accounting records, books, journals, orders,
      receipts and any correspondence and other data relating to their
      respective businesses or the transactions contemplated hereby (including,
      without limitation, in connection with environmental compliance, hazard or
      liability), and to discuss their affairs, finances and accounts with their
      officers, all upon reasonable notice and at such reasonable times during
      normal business hours, as often as may be reasonably requested. The
      Borrower shall keep and maintain, and cause each of the Borrower's
      Subsidiaries to keep and maintain, in all material respects, proper books
      of record and account in which entries in conformity with Agreement
      Accounting Principles shall be made of all dealings and transactions in
      relation to their respective businesses and activities. If a Default has
      occurred and is continuing, the Borrower, upon the Agent's request, shall
      provide copies of such records to the Agent or its representatives.

                  (G)   ERISA Compliance. The Borrower shall, and shall cause
      each of the Borrower's Subsidiaries to, establish, maintain and operate
      all Plans to comply in all material respects with the provisions of ERISA,
      the Code, all other applicable laws, and the regulations and
      interpretations thereunder and the respective requirements of the
      governing documents for such Plans.

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                  (H)   Maintenance of Property. The Borrower shall cause all
      property used or useful in the conduct of its business or the business of
      any Subsidiary to be maintained and kept in good condition, repair and
      working order and supplied with all necessary equipment and shall cause to
      be made all necessary repairs, renewals, replacements, betterments and
      improvements thereof, all as in the judgment of the Borrower may be
      necessary so that the business carried on in connection therewith may be
      properly and advantageously conducted at all times; provided, however,
      that nothing in this Section 7.2(H) shall prevent the Borrower from
      discontinuing the operation or maintenance of any of such property if such
      discontinuance is, in the judgment of the Borrower, desirable in the
      conduct of its business or the business of any Subsidiary and not
      disadvantageous in any material respect to the Agent or the Lenders.

                  (I)   Environmental Compliance. The Borrower and its
      Subsidiaries shall comply with all Environmental, Health or Safety
      Requirements of Law, except where noncompliance will not have or is not
      reasonably likely to subject the Borrower or any of its Subsidiaries to
      liability, individually or in the aggregate, in excess of $5,000,000.

                  (J)   Use of Proceeds. The Borrower shall use the proceeds of
      the Revolving Loans to provide funds for the additional working capital
      needs and other general corporate purposes of the Borrower and its
      Subsidiaries. The Borrower will not, nor will it permit any Subsidiary to,
      use any of the proceeds of the Loans to purchase or carry any Margin Stock
      or to make any Acquisition, other than a Permitted Acquisition pursuant to
      Section 7.3(G).

                  (K)   Subsidiary Guarantees. The Borrower will (a) cause each
      material Domestic Incorporated Subsidiary to execute the Guaranty (and
      from and after the Closing Date cause each Domestic Incorporated
      Subsidiary to execute and deliver to the Agent, within twenty (20) days
      after becoming a Subsidiary of the Borrower, an assumption agreement
      pursuant to which it agrees to be bound by the terms and provisions of the
      Subsidiary Guaranty (whereupon such Subsidiary shall become a "Guarantor"
      under this Agreement)), and (b) deliver and cause such Subsidiaries to
      deliver corporate resolutions, opinions of counsel, and such other
      corporate documentation as the Agent may reasonably request, all in form
      and substance reasonably satisfactory to the Agent.

            7.3. Negative Covenants.

                  (A)   Indebtedness. Neither the Borrower nor any of its
      Subsidiaries shall directly or indirectly create, incur, assume or
      otherwise become or remain directly or indirectly liable with respect to
      any Indebtedness, except:

                        (i)   the Obligations;

                        (ii)  Permitted Existing Indebtedness and Permitted
            Refinancing Indebtedness;

                        (iii) Indebtedness in respect of obligations secured by
            Customary Permitted Liens;

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                        (iv)  Indebtedness constituting Contingent Obligations
            permitted by Section 7.3(E);

                        (v)   Indebtedness arising from intercompany loans and
            advances (a) from any Subsidiary to the Borrower or any wholly-owned
            Subsidiary or (b) from the Borrower to any wholly-owned Domestic
            Incorporated Subsidiary or (c) from the Borrower to any wholly-owned
            Foreign Incorporated Subsidiary; provided, that if the Borrower is
            the obligor on such Indebtedness, such Indebtedness shall be
            expressly subordinate to the payment in full in cash of the
            Obligations; provided, further, that the aggregate of all Foreign
            Subsidiary Investments does not exceed the Permitted Foreign
            Subsidiary Investment Amount at any time;

                        (vi)  Indebtedness in respect of Hedging Obligations
            permitted under Section 7.3(P);

                        (vii) secured or unsecured purchase money Indebtedness
            (including Capitalized Leases) incurred by the Borrower or any of
            its Subsidiaries after the Closing Date to finance the acquisition
            of fixed assets or in conjunction with a Permitted Acquisition, if
            (1) at the time of such incurrence, no Default or Unmatured default
            has occurred and is continuing or would result from such incurrence,
            (2) such Indebtedness has a scheduled maturity and is not due on
            demand, (3) such Indebtedness does not exceed the lower of the fair
            market value or the cost of the applicable fixed assets on the date
            acquired, (4) such Indebtedness does not exceed $30,000,000 in the
            aggregate outstanding at any time, and (5) any Lien securing such
            Indebtedness is permitted under Section 7.3(C) (such Indebtedness
            being referred to herein as "PERMITTED PURCHASE MONEY
            INDEBTEDNESS");

                        (viii) Indebtedness with respect to surety, appeal and
            performance bonds obtained by the Borrower or any of its
            Subsidiaries in the ordinary course of business;

                        (ix)  Indebtedness incurred by the Borrower to the
            seller in any Permitted Acquisition as part of the consideration
            therefor, provided that such Indebtedness is unsecured and, if in
            excess of $15,000,000 in the aggregate, is subordinated to the
            Obligations, on terms reasonably acceptable to the Agent; and

                        (x)   additional unsecured Indebtedness in an aggregate
            amount at any time outstanding not exceeding $25,000,000.

                  (B)   Sales of Assets. Neither the Borrower nor any of its
      Subsidiaries shall consummate any Asset Sale, except:

                        (i)   licenses or sublicenses by the Borrower or its
            Subsidiaries of software, customer lists, trademarks, service marks,
            patents, trade names and copyrights and other intellectual property
            in the ordinary course of business; provided, that such licenses or
            sublicenses shall not interfere with the business of the Borrower or
            any such Subsidiary;

                        (ii)  transfers of assets between the Borrower and any
            wholly-owned Subsidiary of the Borrower or between wholly-owned
            Subsidiaries of the Borrower not

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            otherwise prohibited by this Agreement; provided, that the aggregate
            of all Foreign Subsidiary Investments does not exceed the Permitted
            Foreign Subsidiary Investment Amount at any time; and

                        (iii) sales, assignments, transfers, leases, conveyances
            or other dispositions of other assets if such transaction (a) is for
            not less than fair market value (as determined in good faith by the
            Borrower's board of directors), and (b) when combined with all such
            other transactions (each such transaction being valued at book
            value) (i) during the immediately preceding twelve-month period,
            represents the disposition of not greater than ten percent (10%) of
            the Borrower's Consolidated Tangible Assets at the end of the fiscal
            year immediately preceding that in which such transaction is
            proposed to be entered into, and (ii) during the period from the
            Closing Date to the date of such proposed transaction, represents
            the disposition of not greater than twenty-five percent (25%) of the
            Borrower's Consolidated Tangible Assets at the end of the fiscal
            year immediately preceding that in which such transaction is
            proposed to be entered into; and

                        (iv)  sales in connection with the reorganization,
            restructuring and rationalization of the Borrower and its
            Subsidiaries; provided, that the non-recurring expenses arising from
            such reorganization, restructuring and rationalization which are
            charged to operating expenses are charged during the first three (3)
            fiscal years following any Permitted Acquisition and do not exceed
            $5,000,000, on a pre-tax basis, with respect to any Permitted
            Acquisition, or $10,000,000, on a pre-tax basis, in the aggregate.

                  (C)   Liens. Neither the Borrower nor any of its Subsidiaries
      shall directly or indirectly create, incur, assume or permit to exist any
      Lien on or with respect to any of their respective property or assets
      except:

                        (i)   Liens created by the Loan Documents or otherwise
            securing the Obligations;

                        (ii)  Permitted Existing Liens;

                        (iii) Customary Permitted Liens; and

                        (iv)  purchase money Liens (including the interest of a
            lessor under a Capitalized Lease and Liens to which any property is
            subject at the time of the Borrower's acquisition thereof) securing
            Permitted Purchase Money Indebtedness; provided that such Liens
            shall not apply to any property of the Borrower or its Subsidiaries
            other than that purchased or subject to such Capitalized Lease.

                        (v)   Liens with respect to property acquired by the
            Borrower or any of its Subsidiaries after the Closing Date (and not
            created in contemplation of such acquisition) pursuant to a
            Permitted Acquisition; provided, that such Liens shall extend only
            to the property so acquired; and

                        (vi)  other Liens securing Indebtedness not to exceed
            $5,000,000 in the aggregate.

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In addition, neither the Borrower nor any of its Subsidiaries shall become a
party to any agreement, note, indenture or other instrument, or take any other
action, which would prohibit the creation of a Lien on any of its properties or
other assets in favor of the Agent for the benefit of itself and the Holders of
Obligations, as collateral for the Obligations; provided that any agreement,
note, indenture or other instrument in connection with Permitted Purchase Money
Indebtedness (including Capitalized Leases) may prohibit the creation of a Lien
in favor of the Agent for the benefit of itself and the Holders of Obligations
on the items of property obtained with the proceeds of such Permitted Purchase
Money Indebtedness.

                  (D)   Investments. Except to the extent permitted pursuant to
      paragraph (G) below, neither the Borrower nor any of its Subsidiaries
      shall directly or indirectly make or own any Investment except:

                        (i)   Investments in cash and Cash Equivalents;

                        (ii)  Permitted Existing Investments in an amount not
            greater than the amount thereof on the Closing Date;

                        (iii) Investments in trade receivables or received in
            connection with the bankruptcy or reorganization of suppliers and
            customers and in settlement of delinquent obligations of, and other
            disputes with, customers and suppliers arising in the ordinary
            course of business;

                        (iv)  Investments consisting of deposit accounts
            maintained by the Borrower;

                        (v)   Investments consisting of non-cash consideration
            from a sale, assignment, transfer, lease, conveyance or other
            disposition of property permitted by Section 7.3(B);

                        (vi)  Investments consisting of (a) intercompany loans
            from any Subsidiary of the Borrower to the Borrower or any other
            Subsidiary permitted by Section 7.3(A)(v) and (b) intercompany loans
            from the Borrower to its Subsidiaries; provided, that the aggregate
            of all Foreign Subsidiary Investments made pursuant to this Section
            7.3(D)(vi) shall not exceed $25,000,000 at any time;

                        (vii) Investments constituting Permitted Acquisitions;

                        (viii) Investments constituting Indebtedness permitted
            by Section 7.3(A) or Contingent Obligations permitted by Section
            7.3(E) or Restricted Payments permitted by Section 7.3(F) or Capital
            Expenditures permitted by Section 7.4(E);

                        (ix)  Investments consisting of loans or advances made
            by any party to the Loan Documents to employees and officers of the
            Borrower or any of the Borrower's wholly-owned Domestic Incorporated
            Subsidiaries for travel, entertainment and relocation expenses in
            the ordinary course of business in an aggregate principal amount
            outstanding at any one time not to exceed $2,000,000;

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                        (x)   Investments consisting of any right of the
            Borrower or its wholly-owned Domestic Incorporated Subsidiaries to
            payment for goods sold or for services rendered, whether or not it
            has been earned by performance; and

                        (xi)  Investments in addition to those referred to
            elsewhere in this Section 7.3(D) in an amount not to exceed
            $15,000,000 in the aggregate at any time outstanding;

provided, however, that the Investments described in clause (vii) above shall
not be permitted to be made at a time when either a Default or an Unmatured
Default which is not in the process of being cured shall have occurred and be
continuing or would result therefrom.

                  (E)   Contingent Obligations. Neither the Borrower nor any of
      its Subsidiaries shall directly or indirectly create or become or be
      liable with respect to any Contingent Obligation, except: (i) recourse
      obligations resulting from endorsement of negotiable instruments for
      collection in the ordinary course of business; (ii) Permitted Existing
      Contingent Obligations; (iii) obligations, warranties, guaranties and
      indemnities, not relating to Indebtedness of any Person, which have been
      or are undertaken or made in the ordinary course of business and not for
      the benefit of or in favor of an Affiliate of the Borrower or such
      Subsidiary; (iv) Contingent Obligations with respect to surety, appeal and
      performance bonds obtained by the Borrower or any Subsidiary in the
      ordinary course of business, (v) Contingent Obligations of the
      Subsidiaries of the Borrower under the Guaranty to which they are a party,
      (vi) obligations arising under or related to the Loan Documents, and (vii)
      Contingent Obligations in respect to earn-outs or other similar forms of
      contingent purchase price payable in respect of Permitted Acquisitions,
      and (viii) Contingent Obligations in respect of representations and
      warranties customarily given in respect of Asset Sales otherwise permitted
      hereunder.

                  (F)   Restricted Payments. The Borrower shall not declare or
      make any Restricted Payment, except Restricted Payments in an amount not
      to exceed $15,000,000 in the aggregate during any twelve-month period and
      except Restricted Payments by a Subsidiary to the Borrower or another
      Subsidiary; provided, however, that in no event shall any Restricted
      Payments (other than Restricted Payments to Borrower) be declared or made
      if either a Default or an Unmatured Default shall have occurred and be
      continuing at the date of declaration or payment thereof or would result
      therefrom.

                  (G)   Conduct of Business; Subsidiaries; Acquisitions. Neither
      the Borrower nor any of its Subsidiaries shall engage in any business
      other than the businesses engaged in by the Borrower on the date hereof
      and any business or activities which are substantially similar, related or
      incidental thereto or logical extensions thereof. The Borrower shall not
      create, acquire or capitalize any Subsidiary after the date hereof unless
      (i) no Default or Unmatured Default which is not being cured shall have
      occurred and be continuing or would result therefor; (ii) after such
      creation, acquisition or capitalization, all of the representations and
      warranties contained herein shall be true and correct in all material
      respects (unless such representation and warranty is made as of a specific
      date, in which case, such representation or warranty shall be true in all
      material respects as of such date); and (iii) after such creation,
      acquisition or capitalization the Borrower shall be in compliance with the
      terms of Section 7.2(K). The Borrower shall not make any Acquisitions,
      other than Acquisitions meeting the

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      following requirements or otherwise approved by the Required Lenders (each
      such Acquisition constituting a "PERMITTED ACQUISITION"):

                        (i)   no Default or Unmatured Default shall have
            occurred and be continuing or would result from such Acquisition or
            the incurrence of any Indebtedness in connection therewith;

                        (ii)  after giving effect to such transaction, the
            aggregate of all Foreign Subsidiary Investments would not exceed the
            Permitted Foreign Subsidiary Investment Amount;

                        (iii) in the case of an Acquisition of Equity Interests
            of an entity, the Acquisition shall be of at least thirty-three and
            one-third percent (33 1/3%) of the Equity Interests of such entity,
            and such acquired entity shall be (x) merged with and into the
            Borrower immediately following such Acquisition, with the Borrower
            being the surviving corporation following such merger or (y) the
            results of operations of such entity shall be reported on a
            consolidated basis with the Borrower and its consolidated
            Subsidiaries;

                        (iv)  the purchase is consummated pursuant to a
            negotiated acquisition agreement on a non-hostile basis;

                        (v)   if the purchase price payable in respect to any
            such acquisition exceeds $15,000,000, the acquisition documents
            shall be reasonably satisfactory to the Agent (including, without
            limitation, in respect of representations, indemnities and opinions)
            and the results of due diligence in respect of such purchase shall
            be reasonably satisfactory to the Agent and prior to each such
            Acquisition, the Borrower shall deliver to the Agent and the Lenders
            a certificate from one of the Authorized Officers, demonstrating to
            the satisfaction of the Agent that after giving effect to such
            Acquisition and the incurrence of any Indebtedness permitted by
            Section 7.3(A) in connection therewith, on a pro forma basis using
            historical audited or reviewed unaudited financial statements
            obtained from the seller(s) in respect of each such Acquisition as
            if the Acquisition and such incurrence of Indebtedness had occurred
            on the first day of the twelve-month period ending on the last day
            of the Borrower's most recently completed fiscal quarter, the
            Borrower would have been in compliance with the financial covenants
            in Section 7.4 and not otherwise in Default;

                        (vi)  the purchase price for the Acquisition shall not
            exceed without the prior written consent of the Required Lenders an
            amount equal to $25,000,000 (including the incurrence or assumption
            of any Indebtedness in connection therewith); and

                        (vii) the businesses being acquired shall be
            substantially similar, related or incidental to, or a logical
            extension of, the businesses or activities engaged in by the
            Borrower on the Closing Date.

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                  (H)   Transactions with Shareholders and Affiliates. Neither
      the Borrower nor any of its Subsidiaries shall directly or indirectly (i)
      enter into or permit to exist any transaction (including, without
      limitation, the purchase, sale, lease or exchange of any property or the
      rendering of any service) with any holder or holders of any of the Equity
      Interests of the Borrower, or with any Affiliate of the Borrower which is
      not its Subsidiary, on terms that are less favorable to the Borrower or
      any of its Subsidiaries, as applicable, than those that might be obtained
      in an arm's length transaction at the time from Persons who are not such a
      holder or Affiliate, except for Restricted Payments permitted by Section
      7.3(F) and Investments permitted by Section 7.3(D) or (ii) enter into or
      permit to exist any such non-arm's length transaction between either the
      Borrower or any Domestic Incorporated Subsidiary, on the one hand, and any
      Foreign Incorporated Subsidiary, on the other hand, if as a result thereof
      the aggregate of all Foreign Subsidiary Investments would at any time
      exceed the Permitted Foreign Subsidiary Investment Amount. Agent and
      Lenders acknowledge and consent to the transactions between the Borrower
      and its Affiliates described in the Borrower's public filings as of the
      date hereof.

                  (I)   Restriction on Fundamental Changes. Neither the Borrower
      nor any of its Subsidiaries shall enter into any merger or consolidation,
      or liquidate, wind-up or dissolve (or suffer any liquidation or
      dissolution), or convey, lease, sell, transfer or otherwise dispose of, in
      one transaction or series of transactions, all or substantially all of the
      Borrower's consolidated business or property, whether now or hereafter
      acquired, except (i) transactions permitted under Sections 7.3(B), 7.3(D)
      or 7.3(G) and, (ii) a Subsidiary of the Borrower may be merged into or
      consolidated with the Borrower (in which case the Borrower shall be the
      surviving corporation) or any wholly-owned Subsidiary of the Borrower, and
      (iii) any liquidation of any Subsidiary of the Borrower into the Borrower
      or another Subsidiary of the Borrower, as applicable.

                  (J)   Sales and Leasebacks. Neither the Borrower nor any of
      its Subsidiaries shall become liable, directly, by assumption or by
      Contingent Obligation, with respect to any lease, whether an operating
      lease or a Capitalized Lease, of any property (whether real or personal or
      mixed), (i) which it or one of its Subsidiaries sold or transferred or is
      to sell or transfer to any other Person, or (ii) which it or one of its
      Subsidiaries intends to use for substantially the same purposes as any
      other property which has been or is to be sold or transferred by it or one
      of its Subsidiaries to any other Person in connection with such lease,
      unless in either case the sale involved is not prohibited under Section
      7.3(B) and the lease involved is not prohibited under Section 7.3(A) and
      any related Investment is not prohibited under Section 7.3(D).

                  (K)   Margin Regulations. Neither the Borrower nor any of its
      Subsidiaries, shall use all or any portion of the proceeds of any credit
      extended under this Agreement to purchase or carry Margin Stock.

                  (L)   ERISA.

(a) The Borrower shall not

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                        (i)   engage, or permit any of its Subsidiaries to
            engage, in any prohibited transaction described in Sections 406 of
            ERISA or 4975 of the Code for which a statutory or class exemption
            is not available or a private exemption has not been previously
            obtained from the DOL;

                        (ii)  permit to exist any material accumulated funding
            deficiency (as defined in Sections 302 of ERISA and 412 of the
            Code), with respect to any Benefit Plan, whether or not waived;

                        (iii) fail, or permit any Controlled Group member to
            fail, to pay timely required material contributions or annual
            installments due with respect to any waived funding deficiency to
            any Benefit Plan;

                        (iv)  terminate, or permit any Controlled Group member
            to terminate, any Benefit Plan which would result in any material
            liability of the Borrower or any Controlled Group member under Title
            IV of ERISA;

                        (v)   fail to make any material contribution or payment
            to any Multiemployer Plan which the Borrower or any Controlled Group
            member may be required to make under any agreement relating to such
            Multiemployer Plan, or any law pertaining thereto;

                        (vi)  fail, or permit any Controlled Group member to
            fail, to pay any required material installment or any other payment
            required under Section 412 of the Code on or before the due date for
            such installment or other payment; or

                        (vii) amend, or permit any Controlled Group member to
            amend, a Plan resulting in a material increase in current liability
            for the plan year such that the Borrower or any Controlled Group
            member is required to provide security to such Plan under Section
            401(a)(29) of the Code.

                        (b) For purposes of this Section 7.3(L), "material"
            means any noncompliance or basis for liability which could
            reasonably be likely to subject the Borrower or any of its
            Subsidiaries to liability, individually or in the aggregate, in
            excess of $5,000,000.

                  (M)   Corporate Documents. Neither the Borrower nor any of its
      Subsidiaries shall amend, modify or otherwise change any of the terms or
      provisions in any of their respective constituent documents as in effect
      on the date hereof in any manner materially adverse to the interests of
      the Lenders, without the prior written consent of the Required Lenders,
      except in connection with a Permitted Acquisition.

                  (N)   Fiscal Year. Neither the Borrower nor any of its
      consolidated Subsidiaries shall change its fiscal year for accounting or
      tax purposes from a period consisting of the 12-month period ending on the
      last day of December of each year, except as required by Agreement
      Accounting Principles (including fiscal year end changes required as a
      result of the Transactions) or by law and disclosed to the Lenders and the
      Agent.

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                  (O)   Subsidiary Covenants. The Borrower will not, and will
      not permit any Subsidiary to, create or otherwise cause to become
      effective any consensual encumbrance or restriction of any kind on the
      ability of any Subsidiary to pay dividends or make any other distribution
      on its stock, or make any other Restricted Payment, pay any Indebtedness
      or other Obligation owed to the Borrower or any other Subsidiary, make
      loans or advances or other Investments in the Borrower or any other
      Subsidiary, or sell, transfer or otherwise convey any of its property to
      the Borrower or any other Subsidiary.

                  (P)   Hedging Obligations. The Borrower shall not and shall
      not permit any of its Subsidiaries to enter into any interest rate,
      commodity or foreign currency exchange, swap, collar, cap or similar
      agreements evidencing Hedging Obligations, other than interest rate,
      foreign currency or commodity exchange, swap, collar, cap or similar
      agreements entered into by the Borrower pursuant to which the Borrower has
      hedged its actual interest rate, foreign currency or commodity exposure.
      Such permitted hedging agreements entered into by the Borrower and any
      Lender or any affiliate of any Lender are sometimes referred to herein as
      "HEDGING AGREEMENTS."

                  (Q)   Issuance of Disqualified Stock. From and after the
      Closing Date, neither the Borrower, nor any of its Subsidiaries shall
      issue any Disqualified Stock. All issued and outstanding Disqualified
      Stock shall be treated as Indebtedness for all purposes of this Agreement
      (and as funded Indebtedness for purposes of Section 7.1(F)), and the
      amount of such deemed Indebtedness shall be the aggregate amount of the
      liquidation preference of such Disqualified Stock.

            7.4. Financial Covenants. The Borrower shall comply with the
following:

                  (A)   Minimum Fixed Charge Coverage Ratio. The Borrower and
      its consolidated Subsidiaries shall maintain a ratio ("FIXED CHARGE
      COVERAGE RATIO") of:

                        (i)   the sum of (a) EBITDA during such period plus (b)
            Rentals during such period minus (c) Maintenance Capital
            Expenditures, to

                        (ii)  the sum of the amounts of (a) Interest Expense
            during such period (net of interest income) plus (b) Rentals during
            such period plus (c) scheduled principal payments of Indebtedness,
            plus (d) scheduled dividend payments on Borrower's preferred stock,

which shall not be less than 1.25 to 1.0 for each four (4) fiscal quarter period
beginning with the four (4) fiscal quarter period ending on March 31, 2004. In
each case, the Fixed Charge Coverage Ratio shall be determined as of the last
day of each fiscal quarter for the four (4) fiscal quarter period ending on such
day (the "LAST TWELVE-MONTH PERIOD"), provided, that the Fixed Charge Coverage
Ratio shall be calculated, with respect to Permitted Acquisitions, on a pro
forma basis using historical audited and reviewed unaudited financial statements
obtained from the seller(s) in such Permitted Acquisition, broken down by fiscal
quarter as if such Permitted Acquisition (including the uses and applications of
proceeds in respect thereof and the Indebtedness incurred in conjunction
therewith) had occurred on the first day of the Last Twelve-

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Month Period (the "MEASUREMENT PERIOD") (including cost savings actually
realized during such prior period, as though such costs savings had been
realized from the first day of the Measurement Period in the Borrower's
reasonable judgment), provided such pro forma statements and such costs savings
shall be substantiated by supporting information reasonably acceptable to the
Agent. Interest Expense shall be calculated for the purpose of clause (ii) by
excluding the effect of amortization of deferred financing fees, to the extent
it is an Interest Expense.

                  (B)   Maximum Leverage Ratio. The Borrower and its
      consolidated Subsidiaries shall not permit the ratio (the "LEVERAGE
      RATIO") of (i) Indebtedness (net of cash and Cash Equivalents of the
      Borrower and its consolidated Subsidiaries) to (ii) EBITDA to be greater
      than 3.25 to 1.0 for each four (4) fiscal quarter period beginning with
      the fiscal quarter ending March 31, 2004 and thereafter.

The Leverage Ratio shall be calculated, in each case, determined as of the last
day of each fiscal quarter based upon (a) for Indebtedness, Indebtedness as of
the last day of each such fiscal quarter; and (b) for EBITDA, the actual amount
for Last Twelve-Month Period, provided, that the Leverage Ratio shall be
calculated, with respect to Permitted Acquisitions, on a pro forma basis using
historical audited and reviewed unaudited financial statements obtained from the
seller(s) in such Permitted Acquisition, broken down by fiscal quarter in the
Borrower's reasonable judgment as if such Permitted Acquisition (including the
uses and applications of proceeds in respect thereof and the Indebtedness
incurred in conjunction therewith) had occurred on the first day of the
Measurement Period (including cost savings actually realized during such prior
period, as though such costs savings had been realized from the first day of the
Measurement Period in the Borrower's reasonable judgment), provided such pro
forma statements and such costs savings shall be substantiated by supporting
information reasonably acceptable to the Agent.

                  (C)   Minimum Consolidated Net Worth. The Borrower shall not
      permit its Consolidated Net Worth at any time to be less than the sum of
      (a) $85,000,000 plus (b) fifty percent (50%) of Net Income (if positive)
      calculated separately for each fiscal quarter commencing with the fiscal
      quarter ending on March 31, 2004, plus (c) one hundred percent (100%) of
      the net cash proceeds resulting from the issuance by the Borrower of any
      Capital Stock other than shares of Capital Stock issued pursuant to
      employee stock option or ownership plans.

                  (D)   Maximum Capital Expenditures. The Borrower will not, nor
      will it permit any Subsidiary to, expend, or be committed to expend, in
      excess of an aggregate of $25,000,000, for Capital Expenditures of the
      Borrower and its Subsidiaries during any fiscal year of the Borrower.

                             ARTICLE VIII: DEFAULTS

            8.1. Defaults. Each of the following occurrences shall constitute a
Default under this Agreement:

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                  (A)   Failure to Make Payments When Due. The Borrower or any
      Alternate Currency Borrower shall (i) fail to pay when due any of the
      Obligations consisting of principal with respect to the Loans or (ii)
      shall fail to pay within five (5) Business Days of the date when due any
      of the other Obligations under this Agreement or the other Loan Documents.

                  (B)   Breach of Certain Covenants. The Borrower shall fail
      duly and punctually to perform or observe any agreement, covenant or
      obligation binding on the Borrower under:

                        (i)   Sections 7.1, 7.2, 7.3(C), 7.3(E), 7.3(L) or
            7.3(O) and such failure shall continue unremedied for fifteen (15)
            Business Days, or if such failure is not capable of being cured
            within such fifteen (15) day period, forty-five (45) days if the
            Borrower at all times during such forty-five (45) day period is
            promptly and diligently attempting to effect such cure; or

                        (ii)  Sections 7.3 (other than Sections 7.3(C), 7.3(E),
            7.3(L) and 7.3(O)) or 7.4.

                  (C)   Breach of Representation or Warranty. Any representation
      or warranty made or deemed made by the Borrower to the Agent or any Lender
      herein or by the Borrower or any Alternate Currency Borrower or any of
      their Subsidiaries in any of the other Loan Documents or in any statement
      or certificate at any time given by any such Person pursuant to any of the
      Loan Documents shall be false or misleading in any material respect on the
      date as of which made (or deemed made).

                  (D)   Other Defaults. The Borrower shall default in the
      performance of or compliance with any term contained in this Agreement
      (other than as covered by paragraphs (A) or (B) of this Section 8.1), or
      the Borrower or any Alternate Currency Borrower or any of their
      Subsidiaries shall default in the performance of or compliance with any
      term contained in any of the other Loan Documents, and such default shall
      continue for thirty (30) days after the occurrence thereof.

                  (E)   Default as to Other Indebtedness. The Borrower or any of
      its Subsidiaries shall fail to make any payment when due (whether by
      scheduled maturity, required prepayment, acceleration, demand or
      otherwise) with respect to any Indebtedness (other than Indebtedness
      hereunder, but including, without limitation, Disqualified Stock), beyond
      any period of grace provided with respect thereto, which individually or
      together with other such Indebtedness as to which any such failure exists
      has an aggregate outstanding principal amount in excess of $5,000,000; or
      any breach, default or event of default shall occur, or any other
      condition shall exist under any instrument, agreement or indenture
      pertaining to any such Indebtedness having such aggregate outstanding
      principal amount, beyond any period of grace, if any, provided with
      respect thereto, if the effect thereof is to cause an acceleration,
      mandatory redemption, a requirement that the Borrower offer to purchase
      such Indebtedness or other required repurchase of such Indebtedness, or
      permit the holder(s) of such Indebtedness to accelerate the maturity of
      any such Indebtedness or require a redemption or other repurchase of such
      Indebtedness; or any such Indebtedness shall be otherwise declared to be
      due and payable (by acceleration or otherwise) or required to be prepaid,
      redeemed or

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      otherwise repurchased by the Borrower or any of its Subsidiaries (other
      than by a regularly scheduled required prepayment) prior to the stated
      maturity thereof.

                  (F)   Involuntary Bankruptcy; Appointment of Receiver, Etc.

                        (i)   An involuntary case shall be commenced against the
            Borrower or any of the Borrower's Subsidiaries and the petition
            shall not be dismissed, stayed, bonded or discharged within sixty
            (60) days after commencement of the case; or a court having
            jurisdiction in the premises shall enter a decree or order for
            relief in respect of the Borrower or any of the Borrower's
            Subsidiaries in an involuntary case, under any applicable
            bankruptcy, insolvency or other similar law now or hereinafter in
            effect; or any other similar relief shall be granted under any
            applicable federal, state, local or foreign law.

                        (ii)  A decree or order of a court having jurisdiction
            in the premises for the appointment of a receiver, liquidator,
            sequestrator, trustee, custodian or other officer having similar
            powers over the Borrower or any of the Borrower's Subsidiaries or
            over all or a substantial part of the property of the Borrower or
            any of the Borrower's Subsidiaries shall be entered; or an interim
            receiver, trustee or other custodian of the Borrower or any of the
            Borrower's Subsidiaries or of all or a substantial part of the
            property of the Borrower or any of the Borrower's Subsidiaries shall
            be appointed or a warrant of attachment, execution or similar
            process against any substantial part of the property of the Borrower
            or any of the Borrower's Subsidiaries shall be issued and any such
            event shall not be stayed, dismissed, bonded or discharged within
            sixty (60) days after entry, appointment or issuance.

                  (G)   Voluntary Bankruptcy; Appointment of Receiver, Etc. The
      Borrower or any of the Borrower's Subsidiaries shall (i) commence a
      voluntary case under any applicable bankruptcy, insolvency or other
      similar law now or hereafter in effect, (ii) consent to the entry of an
      order for relief in an involuntary case, or to the conversion of an
      involuntary case to a voluntary case, under any such law, (iii) consent to
      the appointment of or taking possession by a receiver, trustee or other
      custodian for all or a substantial part of its property, (iv) make any
      assignment for the benefit of creditors or (v) take any corporate action
      to authorize any of the foregoing.

                  (H)   Judgments and Attachments. Any money judgment(s) (other
      than a money judgment covered by insurance as to which the applicable
      insurance company has not disclaimed or reserved the right to disclaim
      coverage), writ or warrant of attachment, or similar process against the
      Borrower or any of its Subsidiaries or any of their respective assets
      involving in any single case or in the aggregate an amount in excess of
      $5,000,000 is or are entered and shall remain undischarged, unvacated,
      unbonded or unstayed for a period of sixty (60) days or in any event later
      than fifteen (15) days prior to the date of any proposed sale thereunder.

                  (I)   Dissolution. Any order, judgment or decree shall be
      entered against the Borrower decreeing its involuntary dissolution or
      split up and such order shall remain

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      undischarged and unstayed for a period in excess of sixty (60) days; or
      the Borrower shall otherwise dissolve or cease to exist except as
      specifically permitted by this Agreement.

                  (J)   Loan Documents. At any time, for any reason, any Loan
      Document as a whole that materially affects the ability of the Agent, or
      any of the Lenders to enforce the Obligations or ceases to be in full
      force and effect or the Borrower or any of the Borrower's Subsidiaries
      party thereto seeks to repudiate its obligations thereunder.

                  (K)   Termination Event. Any Termination Event occurs which
      the Required Lenders believe is reasonably likely to subject the Borrower
      to liability in excess of $5,000,000.

                  (L)   Waiver of Minimum Funding Standard. If the plan
      administrator of any Plan applies under Section 412(d) of the Code for a
      waiver of the minimum funding standards of Section 412(a) of the Code and
      any Lender believes the substantial business hardship upon which the
      application for the waiver is based could reasonably be expected to
      subject either the Borrower or any Controlled Group member to liability in
      excess of $5,000,000.

                  (M)   Change of Control. A Change of Control shall occur.

                  (N)   Hedging Agreements. Nonpayment by the Borrower of any
      obligation in excess of $2,500,000 under any Hedging Agreement which
      remains unpaid for sixty (60) days or the breach by the Borrower of any
      term, provision or condition contained in any such Hedging Agreement.

                  (O)   Environmental Matters. The Borrower or any of its
      Subsidiaries shall be the subject of any proceeding or investigation
      pertaining to (i) the Release by the Borrower or any of its Subsidiaries
      of any Contaminant into the environment, (ii) the liability of the
      Borrower or any of its Subsidiaries arising from the Release by any other
      Person of any Contaminant into the environment, or (iii) any violation of
      any Environmental, Health or Safety Requirements of Law which by the
      Borrower or any of its Subsidiaries, which, in any case, has or is
      reasonably likely to subject the Borrower to liability in excess of
      $5,000,000.

                  (P)   Guarantor Revocation. Any guarantor of the Obligations
      shall terminate or revoke any of its obligations under the applicable
      Guaranty or breach any of the material terms of such Guaranty.

            A Default shall be deemed "continuing" until cured or until waived
in writing in accordance with Section 9.3.

 ARTICLE IX: ACCELERATION, DEFAULTING LENDERS; WAIVERS, AMENDMENTS AND REMEDIES

            9.1. Termination of Revolving Loan Commitments; Acceleration. If any
Default described in Section 8.1(F) or 8.1(G) occurs with respect to the
Borrower, the obligations of the Lenders to make Loans (including, without
limitation, Alternate Currency Loans) hereunder and the obligation of any
Issuing Banks to issue Letters of Credit hereunder shall automatically terminate

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and the Obligations shall immediately become due and payable without any
election or action on the part of the Agent or any Lender. If any other Default
occurs, the Required Lenders may terminate or suspend the obligations of the
Lenders to make Loans (including, without limitation, Alternate Currency Loans)
hereunder and the obligation of the Issuing Banks to issue Letters of Credit
hereunder, or declare the Obligations to be due and payable, or both, whereupon
the Obligations shall become immediately due and payable, without presentment,
demand, protest or notice of any kind, all of which the Borrower expressly
waives.

            9.2. Defaulting Lender. In the event that any Lender fails to fund
its Pro Rata Share of any Advance requested or deemed requested by the Borrower,
which such Lender is obligated to fund under the terms of this Agreement (the
funded portion of such Advance being hereinafter referred to as a "NON PRO RATA
LOAN"), until the earlier of such Lender's cure of such failure and the
termination of the Revolving Loan Commitments, the proceeds of all amounts
thereafter repaid to the Agent by the Borrower and otherwise required to be
applied to such Lender's share of all other Obligations pursuant to the terms of
this Agreement shall be advanced to the Borrower by the Agent on behalf of such
Lender to cure, in full or in part, such failure by such Lender, but shall
nevertheless be deemed to have been paid to such Lender in satisfaction of such
other Obligations. Notwithstanding anything in this Agreement to the contrary:

                  (i)   the foregoing provisions of this Section 9.2 shall apply
            only with respect to the proceeds of payments of Obligations and
            shall not affect the conversion or continuation of Loans pursuant to
            Section 2.10;

                  (ii)  any such Lender shall be deemed to have cured its
            failure to fund its Pro Rata Share, of any Advance at such time as
            an amount equal to such Lender's original Pro Rata Share of the
            requested principal portion of such Advance is fully funded to the
            Borrower, whether made by such Lender itself or by operation of the
            terms of this Section 9.2, and whether or not the Non Pro Rata Loan
            with respect thereto has been repaid, converted or continued;

                  (iii) amounts advanced to the Borrower to cure, in full or in
            part, any such Lender's failure to fund its Pro Rata Share of any
            Advance ("CURE LOANS") shall bear interest at the rate applicable to
            Floating Rate Loans in effect from time to time, and for all other
            purposes of this Agreement shall be treated as if they were Floating
            Rate Loans;

                  (iv)  regardless of whether or not a Default has occurred or
            is continuing, and notwithstanding the instructions of the Borrower
            as to its desired application, all repayments of principal which, in
            accordance with the other terms of this Agreement, would be applied
            to the outstanding Floating Rate Loans shall be applied first,
            ratably to all Floating Rate Loans constituting Non Pro Rata Loans,
            second, ratably to Floating Rate Loans other than those constituting
            Non Pro Rata Loans or Cure Loans and, third, ratably to Floating
            Rate Loans constituting Cure Loans;

                  (v)   for so long as and until the earlier of any such
            Lender's cure of the failure to fund its Pro Rata Share of any
            Advance and the termination of the Revolving Loan Commitments, the
            term "Required Lenders" for purposes of this Agreement shall mean

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            Lenders (excluding all Lenders whose failure to fund their
            respective Pro Rata Share of such Advance have not been so cured)
            whose Pro Rata Shares represent greater than fifty percent (50%) of
            the aggregate Pro Rata Shares of such Lenders; provided, that if any
            Lender (other than a Lender whose failure to find its Pro Rata Share
            of such Advance has not been so cured) shall have a Pro Rata Share
            greater than fifty percent (50%), "REQUIRED LENDERS" shall mean such
            Lender plus at least one additional Lender (other than a Lender
            whose failure to find its Pro Rata Share of such Advance has not
            been cured); and

                  (vi)  for so long as and until any such Lender's failure to
            fund its Pro Rata Share of any Advance is cured in accordance with
            Section 9.2(ii), (A) such Lender shall not be entitled to any
            commitment fees with respect to its Revolving Loan Commitment and
            (B) such Lender shall not be entitled to any letter of credit fees,
            which commitment fees and letter of credit fees shall accrue in
            favor of the Lenders which have funded their respective Pro Rata
            Share of such requested Advance, shall be allocated among such
            performing Lenders ratably based upon their relative Revolving Loan
            Commitments, and shall be calculated based upon the average amount
            by which the aggregate Revolving Loan Commitments of such performing
            Lenders exceeds the sum of (I) the outstanding principal amount of
            the Loans owing to such performing Lenders, plus (II) the
            outstanding Reimbursement Obligations owing to such performing
            Lenders, plus (III) the aggregate participation interests of such
            performing Lenders arising pursuant to Section 3.6 with respect to
            undrawn and outstanding Letters of Credit.

            9.3. Amendments. Subject to the provisions of this Article IX, the
Required Lenders (or the Agent with the consent in writing of the Required
Lenders) and the Borrower may enter into agreements supplemental hereto for the
purpose of adding or modifying any provisions to the Loan Documents or changing
in any manner the rights of the Lenders or the Borrower hereunder or waiving any
Default hereunder; provided, however, that no such supplemental agreement shall,
without the consent of each Lender (which is not a defaulting Lender under the
provisions of Section 9.2) affected thereby:

                  (i)   Postpone or extend the Revolving Loan Termination Date
            or any other date fixed for any payment of principal of, or interest
            on, the Loans, the Reimbursement Obligations or any fees or other
            amounts payable to such Lender (except with respect to (a) any
            modifications of the provisions relating to prepayments of Loans and
            other Obligations and (b) a waiver of the application of the default
            rate of interest pursuant to Section 2.11 hereof).

                  (ii)  Reduce the principal amount of any Loans or L/C
            Obligations, or reduce the rate or extend the time of payment of
            interest or fees thereon.

                  (iii) Reduce the percentage specified in the definition of
            Required Lenders or any other percentage of Lenders specified to be
            the applicable percentage in this Agreement to act on specified
            matters or amend the definitions of "Required Lenders" or "Pro Rata
            Share".

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                  (iv)  Except as permitted by Section 2.26, increase the amount
            of the Revolving Loan Commitment of any Lender hereunder or increase
            any Lender's Pro Rata Share.

                  (v)   Permit the Borrower to assign its rights under this
            Agreement.

                  (vi)  other than pursuant to a transaction permitted by the
            terms of this Agreement, release any guarantor from its obligations
            under the Guaranty.

                  (vii) Amend Section 7.4 (or any of the definitions of the
            terms utilized therein) or this Section 9.3.

No amendment of any provision of this Agreement relating to (a) the Agent shall
be effective without the written consent of the Agent, (b) Swing Line Loans
shall be effective without the written consent of the Swing Line Bank and (c)
any Issuing Bank shall be effective without the written consent of such Issuing
Bank. The Agent may waive payment of the fee required under Section 13.3(B)
without obtaining the consent of any of the Lenders. Notwithstanding anything
herein to the contrary, the Agent (acting reasonably and after consultation with
other parties hereto) may by reasonable prior notice to the other parties hereto
amend this Agreement after consultation with the Borrower unilaterally for the
exclusive purpose of effectuating changes hereto which are necessary to the
integration of the issuance of Letters of Credit hereunder in euro and only in a
manner which shall not result in a deterioration of the position of any Agent or
Lender from its respective position as of the date of this Agreement.

            The Agent may notify the other parties to this Agreement of any
amendments to this Agreement which the Agent reasonably determines to be
necessary as a result of the commencement of the third stage of the European
Economic and Monetary Union. Notwithstanding anything to the contrary contained
herein, any amendments so notified shall take effect in accordance with the
terms of the relevant notification; provided, however, that if and to the extent
that the Agent determines it is not possible to put all parties into such
position, the Agent may give priority to putting the Agent, the Arranger and the
Lenders into that position.

            9.4. Preservation of Rights. No delay or omission of the Lenders or
the Agent to exercise any right under the Loan Documents shall impair such right
or be construed to be a waiver of any Default or an acquiescence therein, and
the making of a Loan or the issuance of a Letter of Credit notwithstanding the
existence of a Default or the inability of the Borrower to satisfy the
conditions precedent to such Loan or issuance of such Letter of Credit shall not
constitute any waiver or acquiescence. Any single or partial exercise of any
such right shall not preclude other or further exercise thereof or the exercise
of any other right, and no waiver, amendment or other variation of the terms,
conditions or provisions of the Loan Documents whatsoever shall be valid unless
in writing signed by the Lenders required pursuant to Section 9.3, and then only
to the extent in such writing specifically set forth. All remedies contained in
the Loan Documents or by law afforded shall be cumulative and all shall be
available to the Agent and the Lenders until the Obligations have been paid in
full.

                         ARTICLE X: GENERAL PROVISIONS

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            10.1. Survival of Representations. All representations and
warranties of the Borrower contained in this Agreement shall survive delivery of
this Agreement and the making of the Loans herein contemplated so long as any
principal, accrued interest, fees, or any other amount due and payable under any
Loan Document is outstanding and unpaid (other than contingent reimbursement and
indemnification obligations) and so long as the Revolving Loan Commitments have
not been terminated.

            10.2. Governmental Regulation. Anything contained in this Agreement
to the contrary notwithstanding, no Lender shall be obligated to extend credit
to the Borrower in violation of any limitation or prohibition provided by any
applicable statute or regulation.

            10.3. Performance of Obligations. The Borrower agrees that the Agent
may, but shall have no obligation to (i) at any time, pay or discharge taxes,
liens, security interests or other encumbrances levied or placed on or
threatened against any property of the Borrower to the extent the Borrower is
required by the terms hereof to pay any such amount, but has not done so and
(ii), after the occurrence and during the continuance of a Default, to make any
other payment or perform any act required of the Borrower under any Loan
Document or take any other action which the Agent in its discretion deems
necessary or desirable to protect or preserve such property of the Borrower. The
Agent shall use its reasonable efforts to give the Borrower notice of any action
taken under this Section 10.3 prior to the taking of such action or promptly
thereafter provided the failure to give such notice shall not affect the
Borrower's obligations in respect thereof. The Borrower agrees to pay the Agent,
upon demand, the principal amount of all funds advanced by the Agent under this
Section 10.3, together with interest thereon at the rate from time to time
applicable to Floating Rate Loans from the date of such advance until the
outstanding principal balance thereof is paid in full. If the Borrower fails to
make payment in respect of any such advance under this Section 10.3 within one
(1) Business Day after the date the Borrower receives written demand therefor
from the Agent, the Agent shall promptly notify each Lender and each Lender
agrees that it shall thereupon make available to the Agent, in Dollars in
immediately available funds, the amount equal to such Lender's Pro Rata Share of
such advance. If such funds are not made available to the Agent by such Lender
within one (1) Business Day after the Agent's demand therefor, the Agent will be
entitled to recover any such amount from such Lender together with interest
thereon at the Federal Funds Effective Rate for each day during the period
commencing on the date of such demand and ending on the date such amount is
received. The failure of any Lender to make available to the Agent its Pro Rata
Share of any such unreimbursed advance under this Section 10.3 shall neither
relieve any other Lender of its obligation hereunder to make available to the
Agent such other Lender's Pro Rata Share of such advance on the date such
payment is to be made nor increase the obligation of any other Lender to make
such payment to the Agent.

            10.4. Headings. Section headings in the Loan Documents are for
convenience of reference only, and shall not govern the interpretation of any of
the provisions of the Loan Documents.

            10.5. Entire Agreement. The Loan Documents embody the entire
agreement and understanding among the Borrower, the Agent and the Lenders and
supersede all prior

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agreements and understandings among the Borrower, the Agent and the Lenders
relating to the subject matter thereof.

            10.6. Several Obligations; Benefits of this Agreement. The
respective obligations of the Lenders hereunder are several and not joint and no
Lender shall be the partner or agent of any other Lender (except to the extent
to which the Agent is authorized to act as such). The failure of any Lender to
perform any of its obligations hereunder shall not relieve any other Lender from
any of its obligations hereunder. This Agreement shall not be construed so as to
confer any right or benefit upon any Person other than the parties to this
Agreement and their respective successors and assigns.

            10.7. Expenses; Indemnification.

                  (A)   Expenses. The Borrower shall reimburse the Agent, the
      Alternate Currency Bank and the Arranger for any reasonable costs,
      internal charges and out-of-pocket expenses (including reasonable
      attorneys' and paralegals' fees and time charges of attorneys and
      paralegals for the Agent, which attorneys and paralegals may be employees
      of the Agent) paid or incurred by the Agent, the Alternate Currency Bank
      or the Arranger in connection with the preparation, negotiation,
      execution, delivery, syndication, review, amendment, modification, and
      administration of the Loan Documents. The Borrower also agrees to
      reimburse the Agent, the Alternate Currency Bank and the Arranger and the
      Lenders for any costs, internal charges and out-of-pocket expenses
      (including reasonable attorneys' and paralegals' fees and time charges of
      attorneys and paralegals for the Agent, the Alternate Currency Bank and
      the Arranger and the Lenders, which attorneys and paralegals may be
      employees of the Agent, the Alternate Currency Bank or the Arranger or the
      Lenders) paid or incurred by the Agent or the Arranger, the Alternate
      Currency Bank or any Lender in connection with the collection of the
      Obligations and enforcement of the Loan Documents. In addition to expenses
      set forth above, the Borrower agrees to reimburse the Agent, promptly
      after the Agent's request therefor, for each audit, or other business
      analysis performed by or for the benefit of the Lenders in connection with
      this Agreement or the other Loan Documents in an amount equal to the
      Agent's then customary charges for each person employed to perform such
      audit or analysis, plus all reasonable costs and expenses (including
      without limitation, travel expenses) incurred by the Agent in the
      performance of such audit or analysis. The foregoing notwithstanding, the
      Borrower shall not be required to reimburse the Agent for its audit or
      business analysis in amounts in excess of $10,000 per annum unless a
      Default has occurred and is continuing. Agent shall provide the Borrower
      with a detailed statement of all reimbursements requested under this
      Section 10.7(A).

                  (B)   Indemnity. The Borrower further agrees to defend,
      protect, indemnify, and hold harmless the Agent, the Arranger, the
      Alternate Currency Bank and each and all of the Lenders and each of their
      respective Affiliates, and each of such Agent's, Arranger's, the Alternate
      Currency Bank's, Lender's, or Affiliate's respective officers, directors,
      trustees, investment advisors, employees, attorneys and agents (including,
      without limitation, those retained in connection with the satisfaction or
      attempted satisfaction of any of the conditions set forth in Article V)
      (collectively, the "INDEMNITEES") from and against any and all
      liabilities, obligations, losses, damages, penalties, actions, judgments,
      suits, claims, costs,

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      expenses of any kind or nature whatsoever (including, without limitation,
      the fees and disbursements of counsel for such Indemnitees in connection
      with any investigative, administrative or judicial proceeding, whether or
      not such Indemnitees shall be designated a party thereto), imposed on,
      incurred by, or asserted against such Indemnitees in any manner relating
      to or arising out of:

                        (i)   this Agreement or any of the other Loan Documents,
            or any act, event or transaction related or attendant thereto or to
            the making of the Loans, and the issuance of and participation in
            Letters of Credit hereunder, the management of such Loans or Letters
            of Credit, the use or intended use of the proceeds of the Loans or
            Letters of Credit hereunder, or any of the other transactions
            contemplated by the Loan Documents; or

                        (ii)  any liabilities, obligations, responsibilities,
            losses, damages, personal injury, death, punitive damages, economic
            damages, consequential damages, treble damages, intentional, willful
            or wanton injury, damage or threat to the environment, natural
            resources or public health or welfare, costs and expenses
            (including, without limitation, attorney, expert and consulting fees
            and costs of investigation, feasibility or remedial action studies),
            fines, penalties and monetary sanctions, interest, direct or
            indirect, known or unknown, absolute or contingent, past, present or
            future relating to violation of any Environmental, Health or Safety
            Requirements of Law arising from or in connection with the past,
            present or future operations of the Borrower, its Subsidiaries or
            any of their respective predecessors in interest, or, the past,
            present or future environmental, health or safety condition of any
            respective property of the Borrower or its Subsidiaries, the
            presence of asbestos-containing materials at any respective property
            of the Borrower or its Subsidiaries or the Release or threatened
            Release of any Contaminant into the environment (collectively, the
            "INDEMNIFIED MATTERS");

provided, however, the Borrower shall have no obligation to an Indemnitee
hereunder with respect to Indemnified Matters caused solely by or resulting
solely from the willful misconduct or Gross Negligence of such Indemnitee with
respect to the Loan Documents, as determined by the final non-appealed judgment
of a court of competent jurisdiction. If the undertaking to indemnify, pay and
hold harmless set forth in the preceding sentence may be unenforceable because
it is violative of any law or public policy, the Borrower shall contribute the
maximum portion which it is permitted to pay and satisfy under applicable law,
to the payment and satisfaction of all Indemnified Matters incurred by the
Indemnitees.

                  (C)   Waiver of Certain Claims; Settlement of Claims. The
      Borrower further agrees to assert no claim against any of the Indemnitees
      on any theory of liability seeking consequential, special, indirect,
      exemplary or punitive damages. No settlement shall be entered into by the
      Borrower or any if its Subsidiaries with respect to any claim, litigation,
      arbitration or other proceeding relating to or arising out of the
      transactions evidenced by this Agreement, the other Loan Documents unless
      such settlement releases all Indemnitees from any and all liability with
      respect thereto.

                  (D)   Survival of Agreements. The obligations and agreements
      of the Borrower under this Section 10.7 shall survive the termination of
      this Agreement.

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            10.8. Numbers of Documents. All statements, notices, closing
documents, and requests hereunder shall be furnished to the Agent with
sufficient counterparts so that the Agent may furnish one to each of the
Lenders.

            10.9. Accounting. Except as provided to the contrary herein, all
accounting terms used herein shall be interpreted and all accounting
determinations hereunder shall be made in accordance with Agreement Accounting
Principles.

            10.10. Severability of Provisions. Any provision in any Loan
Document that is held to be inoperative, unenforceable, or invalid in any
jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or
invalid without affecting the remaining provisions in that jurisdiction or the
operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared
to be severable.

            10.11. Nonliability of Lenders. The relationship between the
Borrower and the Lenders and the Agent shall be solely that of borrower and
lender. Neither the Agent nor any Lender shall have any fiduciary
responsibilities to the Borrower. Neither the Agent nor any Lender undertakes
any responsibility to the Borrower to review or inform the Borrower of any
matter in connection with any phase of the Borrower's business or operations.

            10.12. GOVERNING LAW. THE AGENT ACCEPTS THIS AGREEMENT, ON BEHALF OF
ITSELF AND THE LENDERS, AT CHICAGO, ILLINOIS BY ACKNOWLEDGING AND AGREEING TO IT
THERE. ANY DISPUTE BETWEEN THE BORROWER AND THE AGENT, ANY LENDER OR ANY OTHER
HOLDER OF OBLIGATIONS ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL
TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH, THIS AGREEMENT
OR ANY OF THE OTHER LOAN DOCUMENTS, AND WHETHER ARISING IN CONTRACT, TORT,
EQUITY, OR OTHERWISE, SHALL BE RESOLVED IN ACCORDANCE WITH THE INTERNAL LAWS
(INCLUDING 735 ILCS 105/5-1 ET SEQ. BUT OTHERWISE WITHOUT REGARD TO THE
CONFLICTS OF LAWS PROVISIONS) OF THE STATE OF ILLINOIS.

            10.13. CONSENT TO JURISDICTION; SERVICE OF PROCESS; JURY TRIAL.

                  (A)   EXCLUSIVE JURISDICTION. EXCEPT AS PROVIDED IN SUBSECTION
      (B), EACH OF THE PARTIES HERETO AGREES THAT ALL DISPUTES AMONG THEM
      ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE
      RELATIONSHIP ESTABLISHED AMONG THEM IN CONNECTION WITH, THIS AGREEMENT OR
      ANY OF THE OTHER LOAN DOCUMENTS WHETHER ARISING IN CONTRACT, TORT, EQUITY,
      OR OTHERWISE, SHALL BE RESOLVED EXCLUSIVELY BY STATE OR FEDERAL COURTS
      LOCATED IN CHICAGO, ILLINOIS, BUT THE PARTIES HERETO ACKNOWLEDGE THAT ANY
      APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE
      OF CHICAGO, ILLINOIS. EACH OF THE PARTIES HERETO WAIVES IN ALL DISPUTES
      BROUGHT PURSUANT TO THIS SUBSECTION (A) ANY

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      OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT CONSIDERING THE
      DISPUTE.

                  (B)   OTHER JURISDICTIONS. THE BORROWER AGREES THAT THE AGENT,
      ANY LENDER OR ANY OTHER HOLDER OF OBLIGATIONS SHALL HAVE THE RIGHT TO
      PROCEED AGAINST THE BORROWER OR ITS PROPERTY IN A COURT IN ANY LOCATION TO
      ENABLE SUCH PERSON TO (1) OBTAIN PERSONAL JURISDICTION OVER THE BORROWER
      OR (2) IN ORDER TO ENFORCE A JUDGMENT OR OTHER COURT ORDER ENTERED IN
      FAVOR OF SUCH PERSON. THE BORROWER AGREES THAT IT WILL NOT ASSERT ANY
      PERMISSIVE COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY SUCH PERSON TO
      REALIZE ON ANY SECURITY FOR THE OBLIGATIONS OR TO ENFORCE A JUDGMENT OR
      OTHER COURT ORDER IN FAVOR OF SUCH PERSON. THE BORROWER WAIVES ANY
      OBJECTION THAT IT MAY HAVE TO THE LOCATION OF THE COURT IN WHICH SUCH
      PERSON HAS COMMENCED A PROCEEDING DESCRIBED IN THIS SUBSECTION (B).

                  (C)   VENUE. THE BORROWER IRREVOCABLY WAIVES ANY OBJECTION
      (INCLUDING, WITHOUT LIMITATION, ANY OBJECTION OF THE LAYING OF VENUE OR
      BASED ON THE GROUNDS OF FORUM NON CONVENIENS) WHICH IT MAY NOW OR
      HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING WITH
      RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT
      EXECUTED OR DELIVERED IN CONNECTION HEREWITH IN ANY JURISDICTION SET FORTH
      ABOVE.

                  (D)   WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO
      IRREVOCABLY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
      DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF,
      CONNECTED WITH, RELATED TO OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED
      AMONG THEM IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER INSTRUMENT,
      DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH. EACH
      OF THE PARTIES HERETO AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND,
      ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY
      AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF
      THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
      PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

                  (E)   ADVICE OF COUNSEL. EACH OF THE PARTIES REPRESENT TO EACH
      OTHER PARTY HERETO THAT IT HAS DISCUSSED THIS AGREEMENT AND, SPECIFICALLY,
      THE PROVISIONS OF SECTION 10.7 AND THIS SECTION 10.13, WITH ITS COUNSEL.

            10.14. USA Patriot Act Notification. The following notification is
provided to the Borrowers pursuant to Section 326 of the USA Patriot Act of
2001, 31 U.S.C. Section 5318:

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            IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To
help the government of the United States of America fight the funding of
terrorism and money laundering activities, Federal law requires all financial
institutions to obtain, verify, and record information that identifies each
Person that opens an account, including any deposit account, treasury management
account, loan, other extension of credit, or other financial services product.
Accordingly, when any Borrower opens an account, the Agent and the Lenders will
ask for such Borrower's name, tax identification number, business address, and
other information that will allow the Agent and the Lenders to identify such
Borrower. The Agent and the Lenders may also ask to see such Borrower's legal
organizational documents or other identifying documents.

                             ARTICLE XI: THE AGENT

            11.1. Appointment; Nature of Relationship. Bank One is appointed by
the Lenders as the Agent hereunder and under each other Loan Document, and each
of the Lenders irrevocably authorizes the Agent to act as the contractual
representative of such Lender with the rights and duties expressly set forth
herein and in the other Loan Documents. The Agent agrees to act as such
contractual representative upon the express conditions contained in this Article
XI. Notwithstanding the use of the defined term "Agent," it is expressly
understood and agreed that the Agent shall not have any fiduciary
responsibilities to any Holder of Obligations by reason of this Agreement and
that the Agent is merely acting as the representative of the Lenders with only
those duties as are expressly set forth in this Agreement and the other Loan
Documents. In its capacity as the Lenders' contractual representative, the Agent
(i) does not assume any fiduciary duties to any of the Holders of Obligations,
(ii) is a "representative" of the Holders of Obligations within the meaning of
Section 9-105 of the Uniform Commercial Code and (iii) is acting as an
independent contractor, the rights and duties of which are limited to those
expressly set forth in this Agreement and the other Loan Documents. Each of the
Lenders, for itself and on behalf of its affiliates as Holders of Obligations,
agrees to assert no claim against the Agent on any agency theory or any other
theory of liability for breach of fiduciary duty, all of which claims each
Holder of Obligations waives.

            11.2. Powers. The Agent shall have and may exercise such powers
under the Loan Documents as are specifically delegated to the Agent by the terms
of each thereof, together with such powers as are reasonably incidental thereto.
The Agent shall have no implied duties or fiduciary duties to the Lenders, or
any obligation to the Lenders to take any action hereunder or under any of the
other Loan Documents except any action specifically provided by the Loan
Documents required to be taken by the Agent.

            11.3. General Immunity. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable to the Borrower, the Lenders or
any Lender for any action taken or omitted to be taken by it or them hereunder
or under any other Loan Document or in connection herewith or therewith except
to the extent such action or inaction is found in a final judgment by a court of
competent jurisdiction to have arisen solely from the Gross Negligence or
willful misconduct of such Person.

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            11.4. No Responsibility for Loans, Creditworthiness, Recitals, Etc.
Neither the Agent nor any of its directors, officers, agents or employees shall
be responsible for or have any duty to ascertain, inquire into, or verify (i)
any statement, warranty or representation made in connection with any Loan
Document or any borrowing hereunder; (ii) the performance or observance of any
of the covenants or agreements of any obligor under any Loan Document; (iii) the
satisfaction of any condition specified in Article V, except receipt of items
required to be delivered solely to the Agent; (iv) the existence or possible
existence of any Default or (v) the validity, effectiveness or genuineness of
any Loan Document or any other instrument or writing furnished in connection
therewith. The Agent shall not be responsible to any Lender for any recitals,
statements, representations or warranties herein or in any of the other Loan
Documents, or for the execution, effectiveness, genuineness, validity, legality,
enforceability, collectibility, or sufficiency of this Agreement or any of the
other Loan Documents or the transactions contemplated thereby, or for the
financial condition of any guarantor of any or all of the Obligations, the
Borrower or any of its Subsidiaries.

            11.5. Action on Instructions of Lenders. The Agent shall in all
cases be fully protected in acting, or in refraining from acting, hereunder and
under any other Loan Document in accordance with written instructions signed by
the Required Lenders (or all of the Lenders in the event that and to the extent
that this Agreement expressly requires such), and such instructions and any
action taken or failure to act pursuant thereto shall be binding on all of the
Lenders and on all owners of Loans and on all Holders of Obligations. The Agent
shall be fully justified in failing or refusing to take any action hereunder and
under any other Loan Document unless it shall first be indemnified to its
satisfaction by the Lenders pro rata against any and all liability, cost and
expense that it may incur by reason of taking or continuing to take any such
action.

            11.6. Employment of Agents and Counsel. The Agent may execute any of
its duties as the Agent hereunder and under any other Loan Document by or
through employees, agents, and attorney-in-fact and shall not be answerable to
the Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with reasonable care. The Agent shall be entitled to advice of
counsel concerning the contractual arrangement between the Agent and the Lenders
and all matters pertaining to the Agent's duties hereunder and under any other
Loan Document.

            11.7. Reliance on Documents; Counsel. The Agent shall be entitled to
rely upon any notice, consent, certificate, affidavit, letter, telegram,
statement, paper or document believed by it to be genuine and correct and to
have been signed or sent by the proper person or persons, and, in respect to
legal matters, upon the opinion of counsel selected by the Agent, which counsel
may be employees of the Agent.

            11.8. The Agent's and the Alternate Currency Bank's Reimbursement
and Indemnification. The Lenders agree to reimburse and indemnify the Agent and
the Alternate Currency Bank ratably in proportion to their respective Pro Rata
Shares (i) for any amounts not reimbursed by the Borrower for which the Agent
and the Alternate Currency Bank is entitled to reimbursement by the Borrower
under the Loan Documents, (ii) for any other expenses incurred by the Agent or
the Alternate Currency Bank on behalf of the Lenders, in connection with the
preparation, execution, delivery, administration and enforcement of the Loan
Documents and (iii) for any

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liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind and nature whatsoever which may be
imposed on, incurred by or asserted against the Agent or the Alternate Currency
Bank in any way relating to or arising out of the Loan Documents or any other
document delivered in connection therewith or the transactions contemplated
thereby, or the enforcement of any of the terms thereof or of any such other
documents, provided that no Lender shall be liable for any of the foregoing to
the extent any of the foregoing is found in a final non-appealable judgment by a
court of competent jurisdiction to have arisen solely from the Gross Negligence
or willful misconduct of the Agent or the Alternate Currency Bank.

            11.9. Rights as a Lender. With respect to its Revolving Loan
Commitment, Loans made by it, and Letters of Credit issued by it, the Agent
shall have the same rights and powers hereunder and under any other Loan
Document as any Lender or Issuing Bank and may exercise the same as though it
were not the Agent, and the term "Lender" or "Lenders", "Issuing Bank" or
"Issuing Banks" shall, unless the context otherwise indicates, include the Agent
in its individual capacity. The Agent may accept deposits from, lend money to,
and generally engage in any kind of trust, debt, equity or other transaction, in
addition to those contemplated by this Agreement or any other Loan Document,
with the Borrower or any of its Subsidiaries in which such Person is not
prohibited hereby from engaging with any other Person.

            11.10. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent, the Arranger or any other
Lender and based on the financial statements prepared by the Borrower and such
other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement and the other Loan
Documents. Each Lender also acknowledges that it will, independently and without
reliance upon the Agent, the Arranger 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 decisions in taking or not taking action under this
Agreement and the other Loan Documents.

            11.11. Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrower. Upon any such
resignation, the Required Lenders shall have the right to appoint, on behalf of
the Borrower and the Lenders, a successor Agent. If no successor Agent shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within thirty days after the retiring Agent's giving notice of
resignation, then the retiring Agent may appoint, on behalf of the Borrower and
the Lenders, a successor Agent. Notwithstanding anything herein to the contrary,
so long as no Default has occurred and is continuing, each such successor Agent
shall be subject to approval by the Borrower, which approval shall not be
unreasonably withheld. Such successor Agent shall be a commercial bank having
capital and retained earnings of at least $500,000,000. Upon the acceptance of
any appointment as the Agent hereunder by a successor Agent, such successor
Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations hereunder and under the other Loan
Documents. After any retiring Agent's resignation hereunder as Agent, the
provisions of this Article XI 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
the Agent hereunder and under the other Loan Documents.

                                       98
<PAGE>

                     ARTICLE XII: SETOFF; RATABLE PAYMENTS

            12.1. Setoff. In addition to, and without limitation of, any rights
of the Lenders under applicable law, if any Default occurs and is continuing,
any Indebtedness from any Lender to the Borrower (including all account
balances, whether provisional or final and whether or not collected or
available) may be offset and applied toward the payment of the Obligations owing
to such Lender, whether or not the Obligations, or any part hereof, shall then
be due.

            12.2. Ratable Payments. If any Lender, whether by setoff or
otherwise, has payment made to it upon its Loans (other than payments received
pursuant to Sections 4.1, 4.2 or 4.4) in a greater proportion than that received
by any other Lender, such Lender agrees, promptly upon demand, to purchase a
portion of the Loans held by the other Lenders so that after such purchase each
Lender will hold its ratable proportion of Loans. If any Lender, whether in
connection with setoff or amounts which might be subject to setoff or otherwise,
receives collateral or other protection for its Obligation or such amounts which
may be subject to setoff, such Lender agrees, promptly upon demand, to take such
action necessary such that all Lenders share in the benefits of such collateral
ratably in proportion to the obligations owing to them. In case any such payment
is disturbed by legal process, or otherwise, appropriate further adjustments
shall be made.

            12.3. Application of Payments. Subject to the provisions of Section
9.2, the Agent shall, unless otherwise specified at the direction of the
Required Lenders which direction shall be consistent with the last sentence of
this Section 12.3, apply all payments and prepayments in respect of any
Obligations in the following order:

                  (A)   first, to pay interest on and then principal of any
      portion of the Loans which the Agent may have advanced on behalf of any
      Lender for which the Agent has not then been reimbursed by such Lender or
      the Borrower;

                  (B)   second, to pay interest on and then principal of any
      advance made under Section 10.3 for which the Agent has not then been paid
      by the Borrower or reimbursed by the Lenders;

                  (C)   third, to pay Obligations in respect of any fees,
      expenses, reimbursements or indemnities then due to the Agent;

                  (D)   fourth, to pay Obligations in respect of any fees,
      expenses, reimbursements or indemnities then due to the Lenders and the
      issuer(s) of Letters of Credit;

                  (E)   fifth, to pay interest due in respect of Swing Line
      Loans;

                  (F)   sixth, to pay interest due in respect of Loans (other
      than Swing Line Loans) and L/C Obligations;

                  (G)   seventh, to the ratable payment or prepayment of
      principal outstanding on Swing Line Loans;

                                       99
<PAGE>

                  (H)   eighth, to the ratable payment or prepayment of
      principal outstanding on Loans (other than Swing Line Loans),
      Reimbursement Obligations and Hedging Obligations under Hedging Agreements
      in such order as the Agent may determine in its sole discretion;

                  (I)   ninth, to provide required cash collateral, if required
      pursuant to Section 3.11 and

                  (J)   tenth, to the ratable payment of all other Obligations.

Unless otherwise designated (which designation shall only be applicable prior to
the occurrence of a Default) by the Borrower, all principal payments in respect
of Loans (other than Swing Line Loans) shall be applied first, to repay
outstanding Floating Rate Loans, and then to repay outstanding Eurocurrency Rate
Loans with those Eurocurrency Rate Loans which have earlier expiring Interest
Periods being repaid prior to those which have later expiring Interest Periods.
The order of priority set forth in this Section 12.3 and the related provisions
of this Agreement are set forth solely to determine the rights and priorities of
the Agent, the Lenders, the Swing Line Bank and the issuer(s) of Letters of
Credit as among themselves. The order of priority set forth in clauses (D)
through (J) of this Section 12.3 may at any time and from time to time be
changed by the Required Lenders without necessity of notice to or consent of or
approval by the Borrower, or any other Person; provided, that the order of
priority of payments in respect of Swing Line Loans may be changed only with the
prior written consent of the Swing Line Bank. The order of priority set forth in
clauses (A) through (C) of this Section 12.3 may be changed only with the prior
written consent of the Agent.

            12.4. Relations Among Lenders.

                  (A)   Except with respect to the exercise of set-off rights of
      any Lender in accordance with Section 12.1, the proceeds of which are
      applied in accordance with this Agreement, and except as set forth in the
      following sentence, each Lender agrees that it will not take any action,
      nor institute any actions or proceedings, against the Borrower or any
      other obligor hereunder or with respect to any Loan Document, without the
      prior written consent of the Required Lenders or, as may be provided in
      this Agreement or the other Loan Documents, at the direction of the Agent.

                  (B)   The Lenders are not partners or co-venturers, and no
      Lender shall be liable for the acts or omissions of, or (except as
      otherwise set forth herein in case of the Agent) authorized to act for,
      any other Lender. The Agent shall have the exclusive right on behalf of
      the Lenders to enforce on the payment of the principal of and interest on
      any Loan after the date such principal or interest has become due and
      payable pursuant to the terms of this Agreement.

         ARTICLE XIII: BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

            13.1.Successors and Assigns. The terms and provisions of the Loan
Documents shall be binding upon and inure to the benefit of the Borrowers, the
Agent and the Lenders and their respective successors and assigns permitted
hereby, except that (i) no Borrower shall have the

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<PAGE>

right to assign its rights or obligations under the Loan Documents without the
prior written consent of all of the Lenders, (ii) any assignment by any Lender
must be made in compliance with Section 13.3, and (iii) any transfer by
Participants must be made in compliance with Section 13.2. Any attempted
assignment or transfer by any party not made in compliance with this Section
13.1 shall be null and void, unless such attempted assignment or transfer is
treated as a participation in accordance with Section 13.3. The parties to this
Agreement acknowledge that clause (ii) of this Section 13.1 relates only to
absolute assignments and this Section 13.1 does not prohibit assignments
creating security interests, including, without limitation, (x) any pledge or
assignment by any Lender of all or any portion of its rights under this
Agreement and any promissory note issued hereunder to a Federal Reserve Bank,
(y) in the case of a Lender which is a fund or commingled investment vehicle
that invests in commercial loans in the ordinary course of business may at any
time, without the consent of any Borrower or the Agent, any pledge or assignment
of all or any portion of its rights under this Agreement and any promissory note
issued hereunder to its trustee or other representative of holders of
obligations owed or securities issued by such Lender as collateral to secure
such obligations or (z) any pledge or assignment by any Lender of all or any
portion of its rights under this Agreement and any promissory note issued
hereunder to direct or indirect contractual counterparties in swap agreements
relating to the Loans; provided, however, that no such pledge or assignment
creating a security interest shall release the transferor Lender from its
obligations hereunder unless and until the parties thereto have complied with
the provisions of Section 13.3. The Agent may treat each Lender as the owner of
the Loans made by such Lender hereunder for all purposes hereof unless and until
such Lender complies with Section 13.3; provided, however, that the Agent may in
its discretion (but shall not be required to) follow instructions from the
Lender which made any Loan or which holds any promissory note issued hereunder
to direct payments relating to such Loan or promissory note issued hereunder to
another Person. Any assignee or transferee of the rights to a Loan, Revolving
Loan Commitment, L/C Interest or any other interest of a Lender under the Loan
Documents agrees by acceptance thereof to be bound by all the terms and
provisions of the Loan Documents. Any request, authority or consent of any
Person, who at the time of making such request or giving such authority or
consent is the owner of any Loan, shall be conclusive and binding on any
subsequent owner, transferee or assignee of such Loan.

            13.2. Participations.

                  (A)   Permitted Participants; Effect. Subject to the terms set
      forth in this Section 13.2, any Lender may, in the ordinary course of its
      business and in accordance with applicable law, at any time sell to one or
      more banks or other entities ("PARTICIPANTS") participating interests in
      any Obligations or Loans owing to such Lender, any promissory note issued
      hereunder held by such Lender, any Revolving Loan Commitment of such
      Lender any L/C Interest of such Lender or any other interest of such
      Lender under the Loan Documents on a pro rata or non-pro rata basis.
      Notice of such participation to the Borrower and the Agent shall be
      required prior to any participation becoming effective with respect to a
      Participant which is not a Lender or an Affiliate thereof. In the event of
      any such sale by a Lender of participating interests to a Participant,
      such Lender's obligations under the Loan Documents shall remain unchanged,
      such Lender shall remain solely responsible to the other parties hereto
      for the performance of such obligations, such Lender shall remain the
      owner of the Obligations or Loans owing to such Lender and the holder of
      any promissory note issued

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<PAGE>

      to it hereunder in evidence thereof for all purposes under the Loan
      Documents, all amounts payable by the Borrowers under this Agreement shall
      be determined as if such Lender had not sold such participating interests,
      and the Borrowers and the Agent shall continue to deal solely and directly
      with such Lender in connection with such Lender's rights and obligations
      under the Loan Documents, except that, for purposes of Article IV hereof,
      the Participants shall be entitled to the same rights as if they were
      Lenders.

                  (B)   Voting Rights. Each Lender shall retain the sole right
      to approve, without the consent of any Participant, any amendment,
      modification or waiver of any provision of the Loan Documents other than
      any amendment, modification or waiver with respect to any Loan, Letter of
      Credit or Revolving Loan Commitment in which such Participant has an
      interest which forgives principal, interest or fees or reduces the
      interest rate or fees payable pursuant to the terms of this Agreement with
      respect to any such Loan or Revolving Loan Commitment, postpones any date
      fixed for any regularly-scheduled payment of principal of, or interest or
      fees on, any such Loan or Revolving Loan Commitment.

                  (C)   Benefit of Certain Provisions. Each Borrower agrees that
      each Participant shall be deemed to have the right of setoff provided in
      Section 12.1 in respect of its participating interest in amounts owing
      under the Loan Documents to the same extent as if the amount of its
      participating interest were owing directly to it as a Lender under the
      Loan Documents, provided that each Lender shall retain the right of setoff
      provided in Section 12.1 with respect to the amount of participating
      interests sold to each Participant except to the extent such Participant
      exercises its right of setoff. The Lenders agree to share with each
      Participant, and each Participant, by exercising the right of setoff
      provided in Section 12.1, agrees to share with each Lender, any amount
      received pursuant to the exercise of its right of setoff, such amounts to
      be shared in accordance with Section 12.2 as if each Participant were a
      Lender. Each Borrower further agrees that each Participant shall be
      entitled to the benefits of Article IV to the same extent as if it were a
      Lender and had acquired its interest by assignment pursuant to Section
      13.3, provided that (i) a Participant shall not be entitled to receive any
      greater payment under Article IV than the Lender who sold the
      participating interest to such Participant would have received had it
      retained such interest for its own account, unless the sale of such
      interest to such Participant is made with the prior written consent of the
      Borrower and (ii) any Participant not incorporated under the laws of the
      United States of America or any State thereof agrees to comply with the
      provisions of Article IV to the same extent as if it were a Lender.

            13.3. Assignments.

                  (A)   Permitted Assignments. Any Lender may, in the ordinary
      course of its business and in accordance with applicable law, at any time
      assign to one or more banks or other entities ("PURCHASERS") all or a
      portion of its rights and obligations under the Loan Documents. Such
      assignment shall be evidenced by an agreement substantially in the form of
      Exhibit D or in such other form as may be agreed to by the parties thereto
      (each such agreement, an "ASSIGNMENT AGREEMENT"). Each such assignment
      with respect to a Purchaser which is not a Lender, an Affiliate of a
      Lender or an Approved Fund shall, unless otherwise consented to in writing
      by the Agent and, so long as no Default has occurred and is

                                      102
<PAGE>

      continuing, the Borrower, either be in an Revolving Loan Commitment of,
      and Obligations owing to, the assigning Lender or (unless each of the
      Borrower and the Agent otherwise consents) be in an aggregate amount equal
      to the lesser of (i) the entire applicable Revolving Loan Commitment and
      Obligations held by such Lender hereunder and (ii) $5,000,000. The amount
      of the assignment shall be based on the Revolving Loan Commitment and
      Obligations subject to the assignment, determined as of the date of such
      assignment or as of the "Trade Date," if the "Trade Date" is specified in
      the Assignment Agreement.

                  (B)   Consents. The consent of the Borrower shall be required
      prior to an assignment becoming effective unless the Purchaser is a
      Lender, an Affiliate of a Lender or an Approved Fund, provided that the
      consent of the Borrower shall not be required if (i) if a Default or
      Unmatured Default has occurred and is continuing, (ii) in connection with
      any pledge or assignment by any Lender of all or any portion of its rights
      under this Agreement and any Note to a Federal Reserve Bank or (iii) if
      such assignment is in connection with the physical settlement of any
      Lender's obligations to direct or indirect contractual counterparties in
      swap agreements relating to the Loans and/or Letters of Credit. The
      consent of the Agent shall be required prior to an assignment becoming
      effective unless the Purchaser is a Lender, an Affiliate of a Lender or an
      Approved Fund. Any consent required under this Section 13.3(B) shall not
      be unreasonably withheld or delayed.

                  (C)   Effect; Effective Date. Upon (i) delivery to the Agent
      and the Alternate Currency Bank of an Assignment Agreement, together with
      any consents required by Sections 13.3(A) and 13.3(B), and (ii) payment of
      a $3,500 fee by the assignee or the assignor (as agreed) to the Agent for
      processing such assignment (unless such fee is waived by the Agent or
      unless such assignment is made to such assigning Lender's Affiliate), such
      assignment shall become effective on the effective date specified in such
      assignment. The Assignment Agreement shall contain a representation and
      warranty by the Purchaser to the effect that none of the funds, money,
      assets or other consideration used to make the purchase and assumption of
      the applicable Commitment and Obligations under the applicable Assignment
      Agreement constitutes "plan assets" as defined under ERISA and that the
      rights, benefits and interests of the Purchaser, if not already a Lender,
      in and under the Loan Documents will not be "plan assets" under ERISA. On
      and after the effective date of such assignment, such Purchaser shall for
      all purposes be a Lender party to this Agreement and any other Loan
      Document executed by or on behalf of the Lenders and shall have all the
      rights, benefits and obligations of a Lender under the Loan Documents, to
      the same extent as if it were an original party thereto, and the
      transferor Lender shall be released with respect to the applicable
      Revolving Loan Commitment and Obligations assigned to such Purchaser
      without any further consent or action by the Borrowers, the Alternate
      Currency Bank, the Lenders or the Agent. In the case of an assignment
      covering all of the assigning Lender's rights, benefits and obligations
      under this Agreement, such Lender shall cease to be a Lender hereunder but
      shall continue to be entitled to the benefits of, and subject to, those
      provisions of this Agreement and the other Loan Documents which survive
      payment of the Obligations and termination of the Loan Documents. Any
      assignment or transfer by a Lender of rights or obligations under this
      Agreement that does not comply with this Section 13.3 shall be treated for
      purposes of this Agreement as a sale by such Lender of a participation in
      such rights and obligations in accordance with Section 13.2. Upon the
      consummation of any assignment to a

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<PAGE>

      Purchaser pursuant to this Section 13.3(C), the transferor Lender, the
      Agent and the Borrowers shall, if the transferor Lender or the Purchaser
      desires that its Loans be evidenced by promissory notes, make appropriate
      arrangements so that, upon cancellation and surrender to the Borrowers of
      the previously issued promissory notes (if any) held by the transferor
      Lender, new promissory notes issued hereunder or, as appropriate,
      replacement promissory notes are issued to such transferor Lender, if
      applicable, and new promissory notes or, as appropriate, replacement
      promissory notes, are issued to such Purchaser, in each case in principal
      amounts reflecting their respective Revolving Loan Commitments (or, if the
      Revolving Loan Termination Date has occurred, their respective
      Obligations), as adjusted pursuant to such assignment. Notwithstanding
      anything to the contrary herein, no Borrower shall, at any time, be
      obligated to make payments under Section 2.15(E) to any Lender that is an
      assignee or transferee any sum in excess of the sum which such Borrower
      would have been obligated to pay to the Lender that is an assignor or
      transferor had such assignment or transfer not been effected.

                  (D)   The Register. The Agent, acting solely for this purpose
      as an Agent of the Borrowers (and the Borrowers hereby designate the Agent
      to act in such capacity), shall maintain at one of its offices in Chicago,
      Illinois a copy of each Assignment Agreement delivered to it and a
      register (the "REGISTER") for the recordation of the names and addresses
      of the Lenders, and the Revolving Loan Commitment of, and principal
      amounts of and interest on the Loans owing to, each Lender pursuant to the
      terms hereof from time to time and whether such Lender is an original
      Lender or the assignee of another Lender pursuant to an assignment under
      this Section 13.3. The entries in the Register shall be conclusive and
      binding for all purposes, absent manifest error, and the Borrower, each of
      its Subsidiaries, the Agent and the Lenders may treat each Person whose
      name is recorded in the Register as a Lender hereunder for all purposes of
      this Agreement. The Register shall be available for inspection by the
      Borrower or any Lender, at any reasonable time and from time to time upon
      reasonable prior notice.

            13.4. Confidentiality. Subject to Section 13.5, the Agent and the
Lenders and their respective representatives shall hold all nonpublic
information obtained pursuant to the requirements of this Agreement and
identified as such by the Borrower in accordance with such Person's customary
procedures for handling confidential information of this nature and in
accordance with safe and sound commercial lending or investment practices and in
any event may make disclosure reasonably required by a prospective Transferee in
connection with the contemplated participation or assignment or as required or
requested by any Governmental Authority or any securities exchange or similar
self-regulatory organization or representative thereof or pursuant to a
regulatory examination or legal process, or to any direct or indirect
contractual counterparty in swap agreements or such contractual counterparty's
professional advisor, and shall require any such Transferee to agree (and
require any of its Transferees to agree) to comply with this Section 13.4. In no
event shall the Agent or any Lender be obligated or required to return any
materials furnished by the Borrower; provided, however, each prospective
Transferee shall be required to agree that if it does not become a participant
or assignee it shall return all materials furnished to it by or on behalf of the
Borrower in connection with this Agreement.

                                      104
<PAGE>

            13.5. Dissemination of Information. The Borrower authorizes each
Lender to disclose to any Participant or Purchaser or any other Person acquiring
an interest in the Loan Documents by operation of law (each a "TRANSFEREE") and
any prospective Transferee any and all information in such Lender's possession
concerning the Borrower and its Subsidiaries; provided that prior to any such
disclosure, such prospective Transferee shall agree to preserve in accordance
with Section 13.4 the confidentiality of any confidential information described
therein.

            13.6. Tax Certifications. If any interest in any Loan Document is
transferred to any Transferee which is not incorporated under the laws of the
United States or any State thereof, the transferor Lender shall cause such
Transferee, concurrently with the effectiveness of such transfer, to comply with
the provisions of Section 2.15(E) and Article IV.

                              ARTICLE XIV: NOTICES

            14.1. Giving Notice. Except as otherwise permitted by Section 2.14
with respect to Borrowing/Conversion/Continuation Notices, all notices and other
communications provided to any party hereto under this Agreement or any other
Loan Documents shall be in writing or by telex or by facsimile and addressed or
delivered to such party at its address set forth below its signature hereto or
at such other address as may be designated by such party in a notice to the
other parties. Any notice, if mailed and properly addressed with postage
prepaid, shall be deemed given when received; any notice, if transmitted by
telex or facsimile, shall be deemed given when transmitted (answer back
confirmed in the case of telexes).

            14.2. Change of Address. The Borrower, the Agent and any Lender may
each change the address for service of notice upon it by a notice in writing to
the other parties hereto.

                            ARTICLE XV: COUNTERPARTS

            This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart. This
Agreement shall be effective when it has been executed by the Borrower, the
Agent and the Lenders and each party has notified the Agent by telex or
telephone, that it has taken such action.

                             ARTICLE XVI: SCHEDULES

            If as after date of this Agreement, Borrower has not furnished to
Agent and Lenders any schedule required by the terms hereof, Borrower shall
furnish any such schedule to Agent and Lenders as promptly as practical, but in
any event at least five (5) days prior to the Closing Date.

                  [Remainder of This Page Intentionally Blank]

                                      105
<PAGE>

            IN WITNESS WHEREOF, the Borrower, the Lenders and the Agent have
executed this Agreement as of the date first above written.

                                      SCHAWK, INC., as the Borrower

                                      By: /s/ James J. Patterson
                                          --------------------------------------
                                          Name: James J. Patterson
                                          Title: Senior Vice President and Chief
                                                 Financial Officer

                                      Address: 165 North River Road
                                      Des Plaines, Illinois  60018

                                      Attention: Chief Financial Officer
                                      Telephone No.:
                                      Facsimile No.:

<PAGE>

                                      BANK ONE, NA (MAIN OFFICE CHICAGO),
                                      as Agent, as Swing Line Lender, as Issuing
                                      Bank and as a Lender

                                      By: /s/ George A. Reimnitz
                                          --------------------------------------
                                          Name: George A. Reimnitz
                                          Title: First Vice President

                                      Address:
                                      111 East Busse Avenue
                                      Mount Prospect, IL 60056
                                      Mail Code IL1-2508

                                      Attention: George A. Reimnitz
                                      Telephone No.:
                                      Facsimile No.:

<PAGE>

                                      THE NORTHERN TRUST COMPANY,
                                      AS A LENDER

                                      By: /s/ Yvette D. Taylor
                                          --------------------------------------
                                          Name: Yvette D. Taylor
                                          Title: Vice President

                                      Address: 50 S. LaSalle Street
                                      Chicago, IL 60675

                                      Attention:  Yvette D. Taylor
                                      Telephone No.:
                                      Facsimile No.:

<PAGE>

                                      BANK OF AMERICA, N.A.,
                                      AS A LENDER

                                      By: /s/ Adam Goettsche
                                          -------------------------------------
                                          Name: Adam Goettsche
                                          Title: Vice President

                                      Address: 231 S. LaSalle St.
                                      IL1-231-0640
                                      Chicago, IL 60697

                                      Attention:  Adam Goettsche
                                      Telephone No.:
                                      Facsimile No.:

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