Document:

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                                                                    Exhibit 10.2

                                                                  EXECUTION COPY

                              AMENDED AND RESTATED

                            STOCKHOLDERS' AGREEMENT

                                  DATED AS OF

                               SEPTEMBER 29, 2003

                                  BY AND AMONG

                                 SEMINIS, INC.

                                      AND

                              THE INVESTORS LISTED
                         ON THE SIGNATURE PAGES HERETO
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                               TABLE OF CONTENTS

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ARTICLE I  DEFINITIONS...........................................................................................    3

ARTICLE II  RESTRICTIONS ON TRANSFERS OF STOCK...................................................................   14

         2.1      General Limitations on Transfers...............................................................   14
                  2.1.1    Transfers Generally...................................................................   14
                  2.1.2    Recordation...........................................................................   15
                  2.1.3    Obligations of Transferees............................................................   15
                  2.1.4    Transfers to Restricted Persons.......................................................   15

         2.2      Compliance with Securities Laws................................................................   16

         2.3      Certain Permitted Transfers....................................................................   16
                  2.3.1    FPSH/NML/ABP/PGGM Affiliate Transfers.................................................   16
                  2.3.2    Co-Investor Transfers.................................................................   16
                  2.3.3    Transfers by Management Investors.....................................................   17
                  2.3.4    Transfers by FPSH Affiliate Transferees, Co-Investor Transferees and Management
                           Transferees...........................................................................   17
                  2.3.5    Romo Family Transfers.................................................................   17
                  2.3.6    Transfers to Romo Persons or FPSH.....................................................   18
                  2.3.7    Pledges...............................................................................   18
                  2.3.8    NML/ABP/PGGM Permitted Sales..........................................................   18
                  2.3.9    General...............................................................................   18

         2.4      Sale Initiatives...............................................................................   19
                  2.4.1    Romo Sale Initiative..................................................................   19
                  2.4.2    FPSH Sale Initiative..................................................................   20
                  2.4.3    Required Third-Party Sale.............................................................   21
                  2.4.4    TPS Sale Agreement....................................................................   21
                  2.4.5    No Liability..........................................................................   22

         2.5      FPSH Drag Sale.................................................................................   22
                  2.5.1    Exercise..............................................................................   23
                  2.5.2    Sale Agreement........................................................................   23
                  2.5.3    No Liability..........................................................................   24

         2.6      Tag-Along Rights...............................................................................   24
                  2.6.1    Tag Notice............................................................................   24
                  2.6.2    Tag-Along Election....................................................................   25
                  2.6.3    Seller's Rights to Transfer...........................................................   25
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         2.7      Additional Provisions Relating to Restrictions on Transfers....................................   27
                  2.7.l    Legends...............................................................................   27
                  2.7.2    Copy of Agreement.....................................................................   27
                  2.7.3    Termination of Restrictions...........................................................   27

         2.8      Treatment of Hurdle Co-Investment Rights.......................................................   28

ARTICLE III   REGISTRATION RIGHTS................................................................................   28

         3.1      Piggyback and Demand Registrations.............................................................   28
                  3.1.1    Piggyback Registrations...............................................................   28
                  3.1.2    Demand Registrations..................................................................   29
                  3.1.3    Expenses..............................................................................   30
                  3.1.4    Priority in Piggyback and Demand Registrations........................................   30
                  3.1.5    Underwriting Requirements.............................................................   31

         3.2      Registration Procedures........................................................................   31

         3.3      Indemnification................................................................................   34

         3.4      Holdback Agreement.............................................................................   37

         3.5      Deferral.......................................................................................   38

ARTICLE IV  MANAGEMENT INVESTOR PUT AND CALL RIGHTS..............................................................   38

         4.1      Call Rights....................................................................................   38

         4.2      Put Rights.....................................................................................   39

         4.3      Withholdings...................................................................................   40

ARTICLE V  CORPORATE GOVERNANCE..................................................................................   40

         5.1      Business Plans.................................................................................   40
                  5.1.1    2004 Annual Business Plan.............................................................   40
                  5.1.2    Initial Three-Year Business Plan......................................................   41
                  5.1.3    Annual Business Plans - Romo Control..................................................   42
                  5.1.4    Annual Business Plans - FPSH Control..................................................   42
                  5.1.5    Amendments............................................................................   43
                  5.1.6    Deadlock Mechanics....................................................................   43
                  5.1.7    Good Faith Efforts....................................................................   44

         5.2      Board of Directors.............................................................................   44
                  5.2.1    Initial Composition...................................................................   44
                  5.2.2    Default Composition...................................................................   45
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                  5.2.3    Committee Designation.................................................................   45
                  5.2.4    Voting Obligation.....................................................................   46

         5.3      Approval Rights................................................................................   46
                  5.3.1    FPSH Approval Rights..................................................................   46
                  5.3.2    Basic Romo Approval Rights............................................................   48
                  5.3.3    Additional Romo Approval Rights.......................................................   49

         5.4      Information Rights.............................................................................   49

ARTICLE VI  BUSINESS OPPORTUNITIES...............................................................................   49

         6.1      Business Investment Offers.....................................................................   49

         6.2      Company Determinations.........................................................................   50

         6.3      Permitted Opportunity..........................................................................   50

         6.4      Exceptions.....................................................................................   50

         6.5      Affiliates of FPSH.............................................................................   50

ARTICLE VII  MISCELLANEOUS.......................................................................................   51

         7.1      Term...........................................................................................   51

         7.2      No Voting or Conflicting Agreements............................................................   51

         7.3      Ownership Interests in Certain Persons.........................................................   52

         7.4      Specific Performance...........................................................................   52

         7.5      Notices........................................................................................   52

         7.6      Representative Capacity........................................................................   52

         7.7      Successors and Assigns.........................................................................   53

         7.8      Recapitalizations and Exchanges Affecting Common Stock.........................................   53

         7.9      Governing Law; Consent to Jurisdiction; Waiver of Jury Trial...................................   53

         7.10     Descriptive Headings, Etc......................................................................   54

         7.11     Amendment......................................................................................   54

         7.12     Severability...................................................................................   54
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         7.13     Further Assurances.............................................................................   55

         7.14     Complete Agreement; Counterparts...............................................................   55

         7.15     Certain Transactions and Fees..................................................................   55

         7.16     No Third-Party Beneficiaries...................................................................   55

         7.17     Sophisticated Investors........................................................................   55
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Exhibits

Exhibit A - Corporate Policies and Procedures
Exhibit B - Sample Calculation of IRR Hurdle
Exhibit C - Targets
Exhibit D - Restricted Persons

Schedules

Schedule I        Stockholder holdings of Common Stock, Co-Investment Rights,
                  Warrants and Options after closing of transactions
                  contemplated by the Contribution Agreement, Merger Agreement
                  and FPSH Stock Purchase Agreement

Schedule II       Ownership Interests in Certain Persons

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                              AMENDED AND RESTATED
                            STOCKHOLDERS' AGREEMENT

            AMENDED AND RESTATED STOCKHOLDERS' AGREEMENT, dated as of September
29, 2003 (the "Agreement"), by and among SEMINIS, INC., a Delaware corporation
(the "Company"), FOX PAINE CAPITAL FUND II, L.P., a Delaware limited
partnership, FOX PAINE CAPITAL FUND II CO-INVESTORS, L.P., a Delaware limited
partnership, E AND A `J' TRUST, FPC INVESTMENT GP, FPSH COINVESTMENT FUND I,
LLC, a Delaware limited liability company, FPSH COINVESTMENT FUND II, LLC, a
Delaware limited liability company, FPSH COINVESTMENT FUND III, LLC, a Delaware
limited liability company, FPSH COINVESTMENT FUND IV, LLC, a Delaware limited
liability company, FPSH COINVESTMENT FUND V, LLC, a Delaware limited liability
company, ALFONSO ROMO GARZA ("Mr. Romo"), GASPAR ALVAREZ, FRANCO CAMPANA, BRUNO
FERRARI, CHARLES EDWARD GREEN, LUIS MAIZ, MATEO MAZAL, BERNARDO JIMENEZ BARRERA,
ADRIAN RODRIGUEZ MACEDO, JOSE MANUEL MADERO, JEAN PIERRE POSA, BANCA AFIRME,
S.A., INSTITUCION DE BANCA MULTIPLE, AFIRME GRUPO FINANCIERO, AS TRUSTEE, UNDER
THE IRREVOCABLE ADMINISTRATION AND PAYMENT TRUST NUMBER 167-5 (FIDEICOMISO
IRREVOCABLE DE ADMINISTRACION Y PAGO NUMERO 167-5), a trust organized under the
United Mexican States (the "ARG Trust"), CONJUNTO ADMINISTRATIVO INTEGRAL, S.A.
DE C.V., a corporation (sociedad anonima de capital variable) organized under
the United Mexican States ("CAI"), EMPRIMA, S.A. DE C.V., a corporation
(sociedad anonima de capital variable) organized under the United Mexican States
("Emprima"), PARK FINANCIAL GROUP, LTD, (BVI), a British Virgin Islands Company
("Park"), DESARROLLO CONSOLIDADO DE NEGOCIOS, S.A. DE C.V., a corporation
(sociedad anonima de capital variable) organized under the United Mexican States
(the "Rights Holder"), SAVIA, S.A. DE C.V., a corporation (sociedad anonima de
capital variable) organized under the United Mexican States ("Savia"), BANCA
AFIRME, S.A. INSTITUCION DE BANCA MULTIPLE, AFIRME GRUPO FINANCIERO, AS TRUSTEE,
UNDER THE ADMINISTRATION TRUST NUMBER 243-4 (FIDEICOMISO DE ADMINISTRACION), a
trust organized under the United Mexican States ("Bondholder SPC"), THE
IRREVOCABLE ADMINISTRATION AND PAYMENT TRUST NUMBER 131-4 ENTERED INTO BY BANCA
AFIRME, S.A., INSTITUCION DE BANCA MULTIPLE, AFIRME GRUPO FINANCIERO, IN ITS
CAPACITY AS TRUSTEE AND PULSAR INTERNACIONAL, S.A. DE C.V., EXECUTED ON JULY 23,
2001, AS AMENDED, a trust organized under the United Mexican States (the "Pulsar
Administration and Payment Trust"), MARCELA GONZALEZ, THE NORTHWESTERN MUTUAL
LIFE INSURANCE COMPANY ("NML"), STICHTING PENSIOENFONDS ABP ("ABP") and
STICHTING PENSIOENFONDS VOOR DE GEZONDHEID, GEESTELIJKE EN MAATSCHAPPELIJKE
BELANGEN ("PGGM"). Employees, directors, consultants and certain other Persons
(as defined below) having significant business relationships with the Company
and its Affiliates (as defined below) may be issued shares of Common Stock (as
defined below) (or other equity securities of the Company) or securities
convertible into or exchangeable for Common Stock (or other equity securities of
the Company) subject to the terms of this Agreement, and, if so issued, the
Company, without the consent of any other party hereto, may amend this Agreement
to allow any such Person the Company so chooses to become a party hereto and
list such Person on Schedule I hereto, subject to such Person becoming a
signatory to this Agreement. The parties hereto (other than the Company) and any
other Person who shall
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hereafter acquire shares of Common Stock (or other equity securities of the
Company) or securities convertible into or exchangeable for Common Stock (or
other equity securities of the Company) pursuant to the provisions of, and/or
subject to the restrictions and rights set forth in, this Agreement (including
through participation in certain Company stock or option plans) are sometimes
hereinafter referred to individually as a "Stockholder" or collectively as the
"Stockholders."

                                    RECITALS

            WHEREAS, as of the Effective Date (as defined below), the Company
had authorized 200,000,000 shares of Common Stock, par value $0.01 per share
("Common Stock"), each share of which is entitled to one vote on all Stockholder
matters as more specifically provided in the restated certificate of
incorporation, as amended, of the Company (the "Certificate"), and of which
63,961,879 shares of Common Stock were issued and outstanding immediately after
the Effective Date;

            WHEREAS, the Company has reserved, as of the Effective Date, shares
of Common Stock for issuance pursuant to the Amended and Restated Seminis, Inc.
1998 Stock Option Plan (the "1998 Stock Incentive Plan"), shares of Common Stock
for issuance in connection with grants of restricted stock units (the
"Restricted Stock Units"), shares of Common Stock for issuance pursuant to the
Co-Investment Rights (as defined below) and shares of Common Stock for issuance
pursuant to certain warrants to purchase shares of Common Stock;

            WHEREAS, pursuant to the Agreement and Plan of Merger, dated as of
May 30, 2003, by and among the Company, Seminis Acquisition LLC, a Delaware
limited liability company ("Parent") and Seminis Merger Corp., a Delaware
corporation ("Merger Sub") (the "Merger Agreement"), Merger Sub merged with and
into the Company (the "Merger") with the Company as the surviving corporation in
the Merger;

            WHEREAS, pursuant to the Contribution Agreement, dated as of May 30,
2003, as amended, by and among Parent, Savia, the ARG Trust, the Rights Holder,
Emprima, CAI, Park, Mr. Romo and certain members of management of the Company
and Savia, the ARG Trust, CAI, Park, Savia and certain members of management of
the Company and Savia received shares of Common Stock immediately following the
Merger;

            WHEREAS, pursuant to the FPSH Stock Purchase Agreement, dated as of
May 30, 2003, by and among FPSH, the ARG Trust, Parent and Merger Sub (as
amended from time to time, the "FPSH Stock Purchase Agreement"), immediately
following the Merger, FPSH purchased the FPSH Sale Shares (as defined in the
FPSH Stock Purchase Agreement) from Parent and the ARG Trust purchased 900,737
shares of Common Stock from Parent;

            WHEREAS, pursuant to the Stock Purchase Agreement, dated as of
September 28, 2003, by and between Marcela Gonzalez and Parent, immediately
following the Merger, Marcela Gonzalez purchased 805,598 shares of Common Stock
from Parent;

                                      -2-
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            WHEREAS, pursuant to the Stock Purchase Agreement, dated as of
September 29, 2003, by and between Bondholder SPC and Parent, immediately
following the Merger, Bondholder SPC purchased 3,606,666 shares of Common Stock
from Parent;

            WHEREAS, immediately following the Merger, Savia Transferred to the
Pulsar Administration and Payment Trust 3,844,117 shares of Common Stock and the
ARG Trust Transferred to Emprima 4,365,257 shares of Common Stock;

            WHEREAS, in connection with the Merger and the transactions
contemplated by the FPSH Stock Purchase Agreement, the Company entered into the
Co-Investment Rights Agreements with the Rights Holder and FPSH;

            WHEREAS, pursuant to the Class C PIK Preferred Stock and Warrant
Subscription Agreement, dated as of September 28, 2003, by and between Merger
Sub and NML, immediately following the Merger, NML purchased 40,000 shares of
Class C PIK Preferred Stock, $.0l par value, of the Company (the "Class C PIK
Preferred Stock") and entered into a warrant agreement with the Company, of even
date herewith, pursuant to which NML received warrants to purchase 2,980,839
shares of Common Stock;

            WHEREAS, pursuant to the Class C PIK Preferred Stock and Warrant
Subscription Agreement, dated as of September 28, 2003, by and among Merger Sub,
ABP and PGGM, immediately following the Merger, (i) ABP purchased 8,571 shares
of Class C PIK Preferred Stock, and entered into a warrant agreement with the
Company, of even date herewith, pursuant to which ABP received warrants to
purchase 638,719 shares of Common Stock and (ii) PGGM purchased 1,429 shares of
Class C PIK Preferred Stock, and entered into a warrant agreement with the
Company, of even date herewith, pursuant to which PGGM received warrants to
purchase 106,491 shares of Common Stock; and

            WHEREAS, the parties hereto desire to restrict the sale, assignment,
transfer, encumbrance or other disposition of the Common Stock (or other equity
securities of the Company) or securities convertible into or exchangeable for
Common Stock (or other equity securities of the Company) that the parties hereto
shall own, or may hereafter acquire, and to provide for certain rights and
obligations in respect thereof as hereinafter provided.

            NOW, THEREFORE, in consideration of the premises and of the terms
and conditions contained herein, the parties hereto agree as follows:

                                   ARTICLE I

                                  DEFINITIONS

            As used in this Agreement, the following terms shall have the
meanings ascribed to them below:

            "ABP" shall have the meaning ascribed to it in the Preamble hereto.

            "Affected Holder" shall have the meaning ascribed to it in Section
7.11 hereof.

                                      -3-
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            "Affiliate" of a Person shall mean another Person, directly or
indirectly, controlled by, controlling or under common control with such first
Person. The term "Affiliated" shall have a correlative meaning.

            "Agreement" shall have the meaning ascribed to it in the Preamble
hereto.

            "Annual Business Plan" shall mean, with respect to a particular
fiscal year, a detailed one-year business, operating and strategic plan for the
Company, which plan shall show in reasonable detail (i) the revenues, expenses
and capital expenditures projected for the Company's business during such
period, (ii) the receipts and disbursements projected for the Company's business
during such period, (iii) the sales and net working capital milestones to be
used to determine executive bonuses and the vesting of restricted stock units
for such period, and (iv) such other appropriate items.

            "Approved Annual Business Plan" shall mean an Annual Business Plan
adopted in accordance with Section 5.1 of this Agreement as such Approved Annual
Business Plan may be amended from time to time in accordance with Section 5.1 of
this Agreement.

            "Approved Business Plan" shall mean the Approved Annual Business
Plan or the Approved Three-Year Business Plan, if any, in effect from time to
time in accordance with Section 5.2.1 or Section 5.2.2 of this Agreement.

            "Approved Three-Year Business Plan" shall mean a Three-Year Business
Plan adopted in accordance with Section 5.1 of this Agreement as such Approved
Three-Year Business Plan may be amended from time to time in accordance with
Section 5.1 of this Agreement.

            "ARG Trust" shall have the meaning ascribed to it in the Preamble
hereto.

            "Bondholder SPC" shall have the meaning ascribed to it in the
Preamble hereto.

            "Business" shall have the meaning ascribed to it in Section 6.1
hereof.

            "Business Day" shall mean any day other than a Saturday, a Sunday or
a legal holiday or a day on which banking institutions or trust companies are
authorized or obligated by law to close in New York City.

            "Business Investment Offer" shall have the meaning ascribed to it in
Section 6.1 hereof.

            "Buy-Out Note" shall mean an unsecured promissory note of the
Company, or a direct or indirect subsidiary thereof, which shall have a stated
maturity of (i) five (5) years or (ii) if at the end of such period there
exists, or payment of such note would result in, an event of default (or an
event which with notice or lapse of time or both would constitute an event of
default) under any indebtedness of the Company or any of its subsidiaries, the
first date on which such event of default ceases to exist or would cease to be a
result, shall accrue interest at 6.0% per annum, shall be prepayable at the
option of the Company or such subsidiary at any time, in whole or in part, at
its principal amount plus any accrued and unpaid interest, shall provide for

                                      -4-
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the reimbursement of reasonable expenses incurred by the holder to enforce the
terms of the note and shall accelerate upon the earlier of a Change of Control
or the consummation of an IPO.

            "CAI" shall have the meaning ascribed to it in the Preamble hereto.

            "Call Right" shall have the meaning ascribed to it in Section 4.1
hereof.

            "Called Shares" shall have the meaning ascribed to it in Section 4.1
hereof.

            "Cause" with respect to a Management Investor, shall have the
meaning ascribed to it in such Management Investor's Employment Agreement or any
analogous provision of any employment, compensation or benefit agreement or
arrangement, if any, and if not so defined, shall be based upon the good faith
determination of the Compensation Committee of the Board of Directors of the
Company.

            "Certificate" shall have the meaning ascribed to it in the Recitals
hereof.

            "Change of Control" shall mean (i) the acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act) other than FPSH and its Affiliates and/or Mr. Romo and his
Affiliates of a majority of the outstanding voting stock of the Company or (ii)
the sale of or other disposition (other than by way of merger or consolidation)
of all or substantially all of the assets of the Company and its subsidiaries
taken as a whole to any Person or group of Persons, other than to a Person (or
group of Persons) a majority of the outstanding voting stock (or other
interests) of which are beneficially owned by FPSH and its Affiliates and/or Mr.
Romo and his Affiliates.

            "Claims" shall mean losses, claims, damages or liabilities, joint or
several, actions or proceedings (whether commenced or threatened).

            "Class C PIK Preferred Stock" shall have the meaning ascribed to it
in the Recitals hereof.

            "Co-Investment Rights" shall mean the 15% Co-Investment Rights, the
SPC Hurdle Co-Investment Rights and the FPSH Hurdle Co-Investment Rights, taken
together.

            "Co-Investment Rights Agreements" shall mean the 15% Co-Investment
Rights Agreement, the SPC Hurdle Co-Investment Rights Agreement and the FPSH
Hurdle Co-Investment Rights Agreements, taken together.

            "Co-Investor Transferee" shall have the meaning ascribed to it in
Section 2.3.2 hereof.

            "Common Stock" shall have the meaning ascribed to it in the Recitals
hereof.

            "Company" shall have the meaning ascribed to it in the Preamble
hereto.

            "Corporate Policies and Procedures" shall mean the corporate
policies and procedures of the Company (including rules of ethics and good
business practices) mutually adopted by FPSH and Mr. Romo prior to the Effective
Date and attached hereto as Exhibit A.

                                      -5-
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            "Cost Per Share" shall mean $3.40; provided that, with respect to
any shares of Common Stock (i) issued or sold by the Company following the
Effective Date, the Cost Per Share shall be equal to the actual cost paid for
such shares or (ii) granted as Restricted Stock, a Restricted Stock Unit or
otherwise for non-cash consideration, the Cost Per Share shall be an amount
reasonably determined by the Board of Directors of the Company in light of all
circumstances.

            "Demand Registration" shall have the meaning ascribed to it in
Section 3.1.2 hereof.

            "E and A `J' Trust Hurdle Co-Investment Rights Agreement" shall mean
the Agreement by and between E and A `J' Trust and the Company, of even date
herewith, relating to the E and A `J' Trust Hurdle Co-Investment Rights.

            "E and A `J' Trust Hurdle Co-Investment Rights" shall mean the
rights granted pursuant to the E and A `J' Trust Hurdle Co-Investment Rights
Agreement, of even date herewith.

            "Effective Date" shall have the meaning ascribed to it in Section
7.1.1 hereof.

            "Employment Agreement" shall mean, with respect to a Management
Investor, the employment agreement entered into by the Company and/or any of its
subsidiaries and such Management Investor, as may be amended from time to time.
Collectively, with each other Employment Agreement, the "Employment Agreements."

            "Emprima" shall have the meaning set forth in the Preamble hereto.

            "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

            "Fair Market Value" shall mean, as of any given date, the mean
between the highest and lowest reported sales prices of the Common Stock on the
New York Stock Exchange or, if not listed on such exchange, on any other
national securities exchange on which the Common Stock is listed or, if not so
listed, on the Nasdaq National Market. If such sales prices are not so
available, the Fair Market Value of the Common Stock shall be as reasonably
determined by the Board of Directors of the Company in light of all
circumstances.

            "15% Co-Investment Rights" shall mean the rights granted pursuant to
the 15% Co-Investment Rights Agreement, of even date herewith, between the
Rights Holder and the Company.

            "15% Co-Investment Rights Agreement" shall mean the agreement by and
between the Rights Holder and the Company, of even date herewith, relating to
the 15% Co-Investment Rights.

            "Final Sale" shall have the meaning ascribed to it in Section
2.6.1(b) hereof.

            "fiscal year" shall mean, with respect to the Company, the
twelve-month period beginning October 1 and ending September 30.

                                      -6-
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            "FPC GP Hurdle Co-Investment Rights Agreement" shall mean the
Agreement by and between FPC Investors GP and the Company, of even date
herewith, relating to the FPC GP Hurdle Co-Investment Rights.

            "FPC GP Hurdle Co-Investment Rights" shall mean the rights granted
pursuant to the FPC GP Hurdle Co-Investment Rights Agreement, of even date
herewith.

            "FPSH" shall mean Fox Paine Capital Fund II, L.P., Fox Paine Capital
Fund II Co-Investors, L. P., E and A `J' Trust, FPC Investment GP, FPSH
Coinvestment Fund I, LLC, FPSH Coinvestment Fund II, LLC, FPSH Coinvestment Fund
III, LLC, FPSH Coinvestment Fund IV, LLC, FPSH Coinvestment Fund V, LLC, any
FPSH Affiliate Transferees and any Co-Investor Transferees, taken together.

            "FPSH Affiliate Transferee" shall have the meaning ascribed to it in
Section 2.3.1 hereof.

            "FPSH Coinvestment Fund I Hurdle Co-Investment Rights Agreement"
shall mean the Agreement by and between FPSH Coinvestment Fund I, LLC and the
Company, of even date herewith, relating to the FPSH Coinvestment Fund I Hurdle
Co-Investment Rights.

            "FPSH Coinvestment Fund I Hurdle Co-Investment Rights" shall mean
the rights granted pursuant to the FPSH Coinvestment Fund I Hurdle Co-Investment
Rights Agreement, of even date herewith.

            "FPSH Coinvestment Fund II Hurdle Co-Investment Rights Agreement"
shall mean the Agreement by and between FPSH Coinvestment Fund II, LLC and the
Company, of even date herewith, relating to the FPSH Coinvestment Fund II Hurdle
Co-Investment Rights.

            "FPSH Coinvestment Fund II Hurdle Co-Investment Rights" shall mean
the rights granted pursuant to the FPSH Coinvestment Fund II Hurdle
Co-Investment Rights Agreement, of even date herewith.

            "FPSH Coinvestment Fund III Hurdle Co-Investment Rights Agreement"
shall mean the Agreement by and between FPSH Coinvestment Fund III, LLC and the
Company, of even date herewith, relating to the FPSH Coinvestment Fund III
Hurdle Co-Investment Rights.

            "FPSH Coinvestment Fund III Hurdle Co-Investment Rights" shall mean
the rights granted pursuant to the FPSH Coinvestment Fund III Hurdle
Co-Investment Rights Agreement, of even date herewith.

            "FPSH Coinvestment Fund IV Hurdle Co-Investment Rights Agreement"
shall mean the Agreement by and between FPSH Coinvestment Fund IV, LLC and the
Company, of even date herewith, relating to the FPSH Coinvestment Fund IV Hurdle
Co-Investment Rights.

                                      -7-
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            "FPSH Coinvestment Fund IV Hurdle Co-Investment Rights" shall mean
the rights granted pursuant to the FPSH Coinvestment Fund IV Hurdle
Co-Investment Rights Agreement, of even date herewith.

            "FPSH Coinvestment Fund V Hurdle Co-Investment Rights Agreement"
shall mean the Agreement by and between FPSH Coinvestment Fund V, LLC and the
Company, of even date herewith, relating to the FPSH Coinvestment Fund V Hurdle
Co-Investment Rights.

            "FPSH Coinvestment Fund V Hurdle Co-Investment Rights" shall mean
the rights granted pursuant to the FPSH Coinvestment Fund V Hurdle Co-Investment
Rights Agreement, of even date herewith.

            "FPSH Designee" shall have the meaning ascribed to it in Section
5.2.1 hereof.

            "FPSH Drag-Along Right" shall have the meaning ascribed to it in
Section 2.5.1 hereof.

            "FPSH Drag-Along Seller" shall have the meaning ascribed to it in
Section 2.5.2 hereof.

            "FPSH Drag Sale" shall have the meaning ascribed to it in Section
2.5 hereof.

            "FPSH Hurdle Co-Investment Rights" shall mean the rights granted
pursuant to the FPSH Hurdle Co-Investment Rights Agreements, of even date
herewith.

            "FPSH Hurdle Co-Investment Rights Agreements" shall mean the Fund II
Hurdle Co-Investment Rights Agreement, the Fund II Co-Investors Hurdle
Co-Investment Rights Agreement, the E and A `J' Hurdle Co-Investment Rights
Agreement, the FPC GP Hurdle Co-Investment Rights Agreement, the FPSH
Coinvestment Fund I Hurdle Co-Investment Rights Agreement, the FPSH Coinvestment
Fund II Hurdle Co-Investment Rights Agreement, the FPSH Coinvestment Fund III
Hurdle Co-Investment Rights Agreement, the FPSH Coinvestment Fund IV Hurdle
Co-Investment Rights Agreement and the FPSH Coinvestment Fund V Hurdle
Co-Investment Rights Agreement.

            "FPSH Initiated Third-Party Sale" shall have the meaning ascribed to
it in Section 2.4.2(c) hereof.

            "FPSH Invested Capital" shall mean $163,234,496.

            "FPSH Representative" shall have the meaning ascribed to it in
Section 7.6.1 hereof.

            "FPSH Sale Initiative" shall have the meaning ascribed to it in
Section 2.4.2(a) hereof.

            "FPSH Sale Notice" shall have the meaning ascribed to it in Section
2.4.2(a) hereof.

            "FPSH Sale Price" shall have the meaning ascribed to it in Section
2.4.2(a) hereof.

            "FPSH Stock Purchase Agreement" shall have the meaning ascribed to
it in the Recitals hereof.

                                      -8-
<PAGE>
            "FPSH Transfer Shares" shall have the meaning ascribed to it in
Section 2.4.2(a) hereof.

            "Fund II Co-Investors Hurdle Co-Investment Rights Agreement" shall
mean the Agreement by and between Fox Paine Capital Fund II Co-Investors, L.P.
and the Company, of even date herewith, relating to the Fund II Co-Investors
Hurdle Co-Investment Rights.

            "Fund II Co-Investors Hurdle Co-Investment Rights" shall mean the
rights granted pursuant to the Fund II Co-Investors Hurdle Co-Investment Rights
Agreement, of even date herewith.

            "Fund II Hurdle Co-Investment Rights Agreement" shall mean the
Agreement by and between Fox Paine Capital Fund II, L.P. and the Company, of
even date herewith, relating to the Fund II Hurdle Co-Investment Rights.

            "Fund II Hurdle Co-Investment Rights" shall mean the rights granted
pursuant to the Fund II Hurdle Co-Investment Rights Agreement, of even date
herewith.

            "Good Reason" with respect to a Management Investor, shall have the
meaning ascribed to it in such Management Investor's Employment Agreement or any
analogous provision of any employment, compensation or benefit agreement or
arrangement, if any, and if not so defined, shall be based upon the good faith
determination of the Compensation Committee of the Board of Directors of the
Company.

            "Hurdle Co-Investment Rights" shall mean the FPSH Hurdle
Co-Investment Rights and the SPC Hurdle Co-Investment Rights, taken together.

            "Indemnification Agreement" shall mean the Indemnification
Agreement, dated May 30, 2003, by and among FPSH, the ARG Trust, the Rights
Holder, Desarrollo Empresarial Regiomontano, S.A. de C.V., Emprima, Park, Savia,
and Mr. Romo.

            "Initiating Party" shall have the meaning ascribed to it in Section
3.1.2 hereof.

            "IPO" shall mean an underwritten initial public offering or public
offerings (on a cumulative basis) of shares of Common Stock pursuant to a
registration statement or registration statements under the Securities Act with
aggregate gross proceeds to the Company and any selling Stockholders of at least
$100 million.

            "IRR Hurdle" shall mean an annual compounded internal rate of return
on the FPSH Invested Capital (after return of an amount equal to the FPSH
Invested Capital) of 26%. The IRR Hurdle shall not be deemed to be satisfied
unless FPSH receives actual cash proceeds from the sale or other disposition of
the IRR Shares (or has the ability to immediately sell the IRR Shares for actual
cash proceeds), as well as cash dividends or other cash distributions in respect
of the IRR Shares, such that FPSH has received a return of the full amount of
the FPSH Invested Capital, plus a 26% annually compounded internal rate of
return on the FPSH Invested Capital, calculated from the date hereof through the
date of each sale, disposition or distribution of, or ability to immediately
sell, the IRR Shares for actual cash proceeds. Attached hereto as Exhibit B is a
sample calculation of the IRR Hurdle.

                                      -9-
<PAGE>
            "IRR Shares" shall mean the shares of Common Stock purchased with
the FPSH Invested Capital.

            "Management Investors" shall mean Gaspar Alvarez, Franco Campana,
Bruno Ferrari, Charles Edward Green, Luis Maiz, Mateo Mazal, Bernardo Jimenez
Barrera, Adrian Rodriguez Macedo, Jose Manuel Madero and Jean Pierre Posa.

            "Management Transferees" shall have the meaning ascribed to it in
Section 2.3.3 hereof.

            "Merger" shall have the meaning ascribed to it in the Recitals
hereof.

            "Merger Agreement" shall have the meaning ascribed to it in the
Recitals hereof.

            "Merger Sub" shall have the meaning ascribed to it in the Recitals
hereof.

            "Mr. Romo" shall have the meaning ascribed to it in the Preamble
hereto.

            "Multi-Step FPSH Majority Buyer" shall have the meaning ascribed to
it in Section 2.6.1(b) hereof.

            "Multi-Step FPSH Majority Sale" shall have the meaning ascribed to
it in Section 2.6.1(b) hereof.

            "NASD" shall mean the National Association of Securities Dealers,
Inc.

            "Nasdaq" shall mean The Nasdaq Stock Market, Inc.

            "1998 Stock Incentive Plan" shall have the meaning ascribed to it in
the Recitals hereof.

            "NML" shall have the meaning ascribed to it in the Preamble hereto.

            "NML Initiating Party" shall have the meaning ascribed to it in
Section 3.1.2 hereof.

            "Offer Shares" shall have the meaning ascribed to it in Section
2.6.1(a), Section 2.6.1(b) and Section 2.6.1(c) hereof.

            "Offeree Stockholders" shall have the meaning ascribed to it in
Section 2.6.1(a), Section 2.6.1(b) and Section 2.6.1(c) hereof.

            "Options" shall mean options to purchase shares of Common Stock from
the Company.

            "Parent" shall have the meaning ascribed to it in the Recitals
hereof.

            "Park" shall have the meaning ascribed to it in the Preamble hereto.

                                      -10-
<PAGE>
            "Permanent Disability" with respect to a Management Investor, shall
have the meaning ascribed to it in such Management Investor's Employment
Agreement or any analogous provision of any employment, compensation or benefit
agreement or arrangement, if any, and if not so defined, shall be based upon the
good faith determination of the Compensation Committee of the Board of Directors
of the Company.

            "Person" shall mean an individual, corporation, partnership, limited
liability company, joint venture, trust, unincorporated organization, government
(or any department or agency thereof) or other entity.

            "Piggyback Notice" shall have the meaning ascribed to it in Section
3.1.1 hereof.

            "Piggyback Registration" shall have the meaning ascribed to it in
Section 3.1.1 hereof.

            "Proposed Transferee" means a Person or group (as defined in Section
13(d)(3) of the Exchange Act) other than any Stockholders or their Affiliates
(whether any such Affiliate is such prior to or upon consummation of the
proposed Transfer, but not solely by virtue of becoming a party to this
Agreement) to whom Common Stock is proposed to be Transferred pursuant to the
terms of Section 2.4, 2.5 or 2.6.3(a).

            "PGGM" shall have the meaning ascribed to it in the Preamble hereto.

            "PS Equity" shall have the meaning ascribed to it in Section
2.4.2(b) hereof.

            "PS Permitted Transferees" shall mean Transferees of NML, ABP or
PGGM, as applicable, permitted by Section 2.3.1 and Section 2.3.8.

            "Pulsar Administration and Payment Trust" shall have the meaning
ascribed to it in the Preamble hereto.

            "Put Options" shall have the meaning ascribed to it in Section 4.2
hereof.

            "Put Right" shall have the meaning ascribed to it in Section 4.2
hereof.

            "Put Shares" shall have the meaning ascribed to it in Section 4.2
hereof.

            "Registrable Securities" shall mean shares of Common Stock;
provided, however, as to any particular Registrable Securities, once issued,
such securities shall cease to be Registrable Securities when (i) a registration
statement with respect to the sale of such securities shall have become
effective under the Securities Act and such securities shall have been disposed
of in accordance with such registration statement, (ii) such securities shall
have been sold pursuant to Rule 144 (or any successor provision under the
Securities Act), under the Securities Act, (iii) such securities shall have been
otherwise transferred and new certificates for such securities not bearing a
legend restricting further transfer shall have been delivered by the Company, or
(iv) such securities shall have ceased to be outstanding (and, in the case of
shares of Common Stock underlying Options, or underlying Options or warrants
granted otherwise, such shares of Common Stock shall have ceased to be
outstanding after issuance pursuant to the exercise of such Options or
warrants).

                                      -11-
<PAGE>
            "Registration Expenses" shall mean any and all expenses incident to
performance of or compliance with Article III, including, without limitation,
(i) all SEC and stock exchange or NASD registration and filing fees, (ii) all
fees and expenses of complying with securities or "blue sky" laws (including
reasonable fees and disbursements of counsel for the underwriters in connection
with "blue sky" qualifications of the Registrable Securities), (iii) all
printing, messenger and delivery expenses, (iv) the fees and disbursements of
counsel for the Company and of the Company's independent public accountants,
including the expenses of any special audits and/or "cold comfort" letters
required by or incident to such performance and compliance, (v) the reasonable
fees and disbursements of one counsel retained by the Stockholders, such counsel
to be chosen by the Stockholders (by vote of a plurality of the shares of such
Stockholders being registered) as a group in connection with each such
registration, (vi) any fees and disbursements of underwriters customarily paid
by issuers or sellers of securities and the reasonable fees and expenses of any
special experts retained in connection with the requested registration,
including any fee payable to a qualified independent underwriter within the
meaning of the rules of the NASD, but excluding underwriting discounts and
commissions and transfer taxes, if any, (vii) internal expenses of the Company
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties) and (viii) securities acts
liability insurance (if the Company elects to obtain such insurance).

            "Required Third-Party Sale" shall have the meaning ascribed to it in
Section 2.4.1(c) and Section 2.4.2(c) hereof.

            "Restricted Person" shall have the meaning ascribed to it in Section
2.1.4 hereof.

            "Restricted Stock" means shares of restricted stock.

            "Restricted Stock Units" shall have the meaning ascribed to it in
the Recitals hereof.

            "Rights Holder" shall have the meaning ascribed to it in the
Preamble hereto.

            "Romo Designee" shall have the meaning ascribed to it in Section
5.2.1 hereof.

            "Romo Initiated Third-Party Sale" shall have the meaning ascribed to
it in Section 2.4.1(c) hereof.

            "Romo Persons" shall mean Mr. Romo, the Rights Holder, the ARG
Trust, Emprima, CAI, the Pulsar Administration and Payment Trust and Park.

            "Romo Representative" shall have the meaning ascribed to it in
Section 5.1.1 hereof.

            "Romo Sale Initiative" shall have the meaning ascribed to it in
Section 2.4.1(a) hereof.

            "Romo Sale Notice" shall have the meaning ascribed to it in Section
2.4.1(a) hereof.

                                      -12-
<PAGE>
            "Romo Sale Price" shall have the meaning ascribed to it in Section
2.4.1(a) hereof.

            "Romo Transfer Shares" shall have the meaning ascribed to it in
Section 2.4.1(a) hereof.

            "Romo Transferees" shall have the meaning ascribed to it in Section
2.3.5 hereof.

            "Rule 144" shall mean Rule 144 under the Securities Act.

            "Savia" shall have the meaning ascribed to it in the Preamble
hereto.

            "SEC" shall mean the Securities and Exchange Commission,

            "Section 3.1 Sale Number" shall have the meaning ascribed to it in
Section 3.1.4 hereof.

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

            "SPC Co-Investment Rights" shall mean the 15% Co-Investment Rights
and the SPC Hurdle Co-Investment Rights, taken together.

            "SPC Hurdle Co-Investment Rights" shall mean the rights granted
pursuant to the SPC Hurdle Co-Investment Rights Agreement, to be dated as of the
Effective Date, between the Rights Holder and the Company.

            "SPC Hurdle Co-Investment Rights Agreement" shall mean the agreement
by and between the Rights Holders and the Company, to be dated as of the
Effective Date, relating to the SPC Hurdle Co-Investment Rights.

            "Stockholder" shall have the meaning ascribed to it in the Preamble
hereto.

            "Supermajority of the Board" shall mean a majority of the Board of
Directors of the Company consisting of at least one Romo Designee and at least
one FPSH Designee.

            "2003 Stub Period" shall have the meaning ascribed to it in Section
5.1 hereof.

            "Tag-Along Right" shall have the meaning ascribed to it in Section
2.6.3(a) hereof.

            "Tag-Along Seller" shall have the meaning ascribed to it in Section
2.6.3(b) hereof.

            "Tag-Along Shares" shall have the meaning ascribed to it in Section
2.6.2 hereof.

            "Tag Carve-Out Sale" shall have the meaning ascribed to it in
Section 2.6.1(a) hereof.

                                      -13-
<PAGE>
            "Tag Notice" shall have the meaning ascribed to it in Section
2.6.1(a), Section 2.6.1(b) and Section 2.6.1(c) hereof.

            "Targets" shall mean the targets set forth on Exhibit C hereto.

            "Target Default" shall mean (i) the failure of the Company to
achieve, during a calendar quarter, at least 90% of the corresponding Target for
the trailing twelve months, together with (ii) the failure of the Company to
achieve, in the immediately following calendar quarter, at least 90% of the
corresponding Target for the trailing twelve months.

            "Three-Year Business Plan" shall mean a detailed three-year
business, operating and strategic plan for the Company which shall show in
reasonable detail (i) the revenues, expenses and capital expenditures projected
for the Company's business during such period, (ii) the receipts and
disbursements projected for the Company's business during such period and (iii)
such other appropriate items, in each case on an annual basis.

            "TPS Drag-Along Right" shall have the meaning ascribed to it in
Section 2.4.3 hereof.

            "TPS Drag-Along Seller" shall have the meaning ascribed to it in
Section 2.4.4 hereof.

            "Transfer" shall mean to sell, assign, pledge or encumber or
otherwise transfer, directly or indirectly, whether or not for consideration.

            "Transferee" shall mean any Person to whom a Transfer is made,
regardless of the method of Transfer.

            "Transferor" shall mean any Person by whom a Transfer is made,
regardless of the method of Transfer.

            "2003 Stub Period" shall have the meaning ascribed to it in Section
5.1.1 hereof.

            "Violation" shall have the meaning ascribed to it in Section 3.3(a)
hereof.

            "Warrants" shall mean warrants to purchase shares of Common Stock
from the Company.

                                   ARTICLE II

                       RESTRICTIONS ON TRANSFERS OF STOCK

      2.1   General Limitations on Transfers.

            2.1.1 Transfers Generally. (a) Other than Transfers made pursuant to
Section 2.3 (Certain Permitted Transfers), Section 2.5 (FPSH Drag Sale) and
Section 2.3.8 (NML/ABP/PGGM Permitted Sales) (and, in each case, in compliance
with such other

                                      -14-
<PAGE>
applicable provisions of this Article II), no Stockholder shall, at any time
prior to the three-year anniversary of the Effective Date, Transfer any shares
of Common Stock, Options, Warrants or Co-Investment Rights and any Transfer by
any Stockholder of any shares of Common Stock, Options, Warrants or
Co-Investment Rights in violation of this sentence shall be null and void.
Following the three-year anniversary of the Effective Date, Stockholders may
generally Transfer shares of Common Stock, Options, Warrants or Co-Investment
Rights, subject to compliance with applicable provisions of this Article II and
subject to any restrictions contained in any other agreement or plan governing
equity of the Company, and any Transfer by any Stockholder of any shares of
Common Stock, Options, Warrants or Co-Investment Rights in violation of such
provisions shall be null and void.

            (b)   As used in this Agreement, Common Stock shall include any
shares of Restricted Stock or any Restricted Stock Units granted to any
Management Investors; provided, however, that, to the extent the Transfer
thereof is otherwise prohibited or restricted, no rights to Transfer, including
pursuant to Sections 2.3, 2.4, 2.5 and 2.6 and Article III, shall be granted
hereunder.

            2.1.2 Recordation. The Company shall not record upon its books any
Transfer of shares of Common Stock, Options, Warrants or Co-Investment Rights
held or owned by any of the Stockholders to any other Person, except Transfers
in accordance with this Agreement.

            2.1.3 Obligations of Transferees. No Transfer of shares of Common
Stock, Options, Warrants or Co-Investment Rights by a Stockholder otherwise
permitted pursuant to this Agreement (other than pursuant to a Piggyback
Registration, Demand Registration or pursuant to Section 2.4, Section 2.5 or
Section 2.6 (if, in the case of a Transfer pursuant to Section 2.6, 100% of the
shares of Common Stock and securities convertible into or exercisable for any
shares of Common Stock (including exercisable Co-Investment Rights, if any) are
Transferred)) shall be effective unless (a) the Transferee (including a
Transferee pursuant to Section 2.3) shall have executed an appropriate document
in form and substance reasonably satisfactory to the Company confirming that (i)
the Transferee takes such shares subject to all the terms and conditions of this
Agreement to the same extent as its Transferor was bound by and entitled to the
benefits of such provisions, and (ii) the shares shall bear legends,
substantially in the forms required by Section 2.7, and (b) such document shall
have been delivered to and approved (as described above) by the Company prior to
such Transferee's acquisition of shares of Common Stock, Options, Warrants or
Co-Investment Rights, such approval not to be unreasonably withheld or delayed.

            2.1.4 Transfers to Restricted Persons. Notwithstanding anything to
the contrary in this Agreement, (a) without the consent of a Supermajority of
the Board with respect to Transfers by Stockholders other than FPSH or any Romo
Person or any Romo Transferee, (b) without the consent of Mr. Romo with respect
to Transfers by FPSH, and (c) without the consent of FPSH with respect to
Transfers by any Romo Person or any Romo Transferee: no Stockholder shall, at
any time, directly or indirectly, Transfer any shares of Common Stock, Options,
Warrants or Co-Investment Rights to any Person listed in Exhibit D of this
Agreement (as such Exhibit D may be amended as mutually agreed in good faith by
Mr. Romo and FPSH from time to time based on changes in the relevant industry)
(any such listed Person, a "Restricted Person") or to any Affiliate of any such
Restricted Person unless such Transfer (a) is made pursuant to, and in
accordance with, Section 2.4, Section 2.5 or Section 2.6 (if, in the case

                                      -15-
<PAGE>
of a Transfer pursuant to Section 2.6, 100% of the shares of Common Stock and
securities convertible into or exercisable for any shares of Common Stock
(including exercisable Co-Investment Rights, if any) are Transferred), (b) is
made in accordance with the terms of this Agreement and is made pursuant to a
widely distributed, underwritten public offering registered under the Securities
Act (or an underwritten offering pursuant to the exercise of such other
Stockholders' piggyback registration rights pursuant to Section 3.1.1) or
pursuant to a sale effected through an open market, non-directed broker's
transaction pursuant to Rule 144 in which the seller does not know that the
buyer is a Restricted Person, or (c) is made pursuant to a liquidation or
dissolution of any of the entities comprising FPSH.

            2.2 Compliance with Securities Laws. No Stockholder shall Transfer
any shares of Common Stock, Options, Warrants or Co-Investment Rights unless the
Transfer is made in accordance with the terms of this Agreement and (a) the
Transfer is pursuant to an effective registration statement under the Securities
Act and in compliance with any other applicable federal securities laws and
state securities or "blue sky" laws or (b) such Stockholder shall have furnished
the Company with (i) an opinion of counsel, if reasonably requested by the
Company, which opinion and counsel shall be reasonably satisfactory to the
Company, to the effect that no such registration is required because of the
availability of an exemption from registration under the Securities Act and
under any applicable state securities or "blue sky" laws and that the Transfer
otherwise complies with this Agreement and any other applicable federal
securities laws and state securities or "blue sky" laws and (ii) such
representations and covenants of such Stockholder as are reasonably requested by
the Company to ensure compliance with any applicable federal securities laws and
state securities or "blue sky" laws.

      2.3   Certain Permitted Transfers.

            2.3.1 FPSH/NML/ABP/PGGM Affiliate Transfers. The restrictions
contained in Section 2.1.1 shall not apply to any Transfer by FPSH to an
Affiliate of FPSH or to any direct or indirect equity holder of FPSH (but if
such equity holder is not an Affiliate of FPSH, the exception to the
restrictions contained in Section 2.1.1 shall only apply to the extent Transfers
are made on a pro rata basis to the equity holders of the Transferring entity);
provided, however, that, if FPSH shall have Transferred any shares of Common
Stock, Options, Warrants or Co-Investment Rights to an Affiliate of FPSH or to
any direct or indirect equity holder of FPSH (each, an "FPSH Affiliate
Transferee") and, thereafter, such FPSH Affiliate Transferee ceases to be an
Affiliate of FPSH (other than in connection with a liquidation or dissolution of
the relevant Affiliate of FPSH), then such FPSH Affiliate Transferee shall,
within 30 days from the date on which such FPSH Affiliate Transferee ceased to
be an Affiliate of FPSH, Transfer such shares of Common Stock, Options, Warrants
or Co-Investment Rights back to FPSH or one or more Affiliates of FPSH. The
restrictions contained in Section 2.1.1 shall not apply to any Transfer by NML,
ABP, PGGM or any of their respective PS Permitted Transferees to any of their
respective Affiliates.

            2.3.2 Co-Investor Transfers. The restrictions contained in Section
2.1.1 shall not apply to any Transfer prior to the six-month anniversary of this
Agreement by FPSH to (a) any limited partner or Affiliates thereof in any
investment fund Affiliated with Fox Paine & Co., LLC, or (b) any financing
sources or Affiliates thereof in connection with the transactions

                                      -16-
<PAGE>
contemplated by the Merger Agreement (any Transferee pursuant to this Section
2.3.2, a "Co-Investor Transferee").

            2.3.3 Transfers by Management Investors. The restrictions contained
in Section 2.1.1 shall not apply to any Transfer by a Management Investor: (a)
to or among such Management Investor's spouse, children (including adopted),
grandchildren (including adopted) or other living descendants, or executors,
administrators, testamentary trustees or to a trust or family partnership of
which there are no principal (i.e., corpus) beneficiaries or partners other than
the grantor or one or more of such Management Investor, spouse or described
relatives, executors, administrators, testamentary trustees, or by the laws of
descent and distribution and provided that, in the case of a trust, the existing
beneficiaries and/or trustee(s) and/or grantor(s) of such trust have the power
to act with respect to the trust's assets without court approval and, in the
case of a family partnership, that the partners thereof have the power to act
with respect to the partnership's assets without court approval and the
partnership is not permitted to (i) distribute assets to Persons who are not
among the relatives listed above or (ii) have partners who are not among the
relatives listed above, and, in any case, all the partners agree, for the
benefit of the Company and FPSH, not to amend such provisions; (b) to a legal
representative of such Management Investor in the event such Management Investor
becomes mentally incompetent or to such Management Investor's personal
representative following the death of such Management Investor; or (c) with the
prior written approval of the Company, which approval may be granted or withheld
by a Supermajority of the Board, in its sole and absolute discretion.
Transferees to whom Transfers are permitted pursuant to this Section 2.3.3 are
referred to herein as "Management Transferees." For purposes of this Section
2.3.3 only, Marcela Gonzalez shall be treated as a Management Investor and shall
have the same rights regarding Transfers as are set forth in this Section 2.3.3.
Marcela Gonzalez shall also have the right to make Transfers to her mother and
her sisters in the same manner as the other Transfers permitted by this Section
2.3.3.

            2.3.4 Transfers by FPSH Affiliate Transferees, Co-Investor
Transferees and Management Transferees. The restrictions contained in Section
2.1.1 shall not apply to any Transfer by (a) an FPSH Affiliate Transferee to
FPSH or to another FPSH Affiliate Transferee, (b) a Management Transferee of a
Management Investor to such Management Investor or to another Management
Transferee of such Management Investor, or (c) a Co-Investor Transferee to FPSH
or to an FPSH Affiliate Transferee.

            2.3.5 Romo Family Transfers. The restrictions contained in Section
2.1.1 shall not apply to any Transfer by any Romo Person: (a) to any other Romo
Person, (b) to or among Mr. Romo's spouse, children (including adopted),
grandchildren (including adopted) or other living descendants, or executors,
administrators, testamentary trustees or to a trust or family partnership of
which there are no principal (i.e., corpus) beneficiaries or partners other than
the grantor or one or more of Mr. Romo, his spouse or described relatives,
executors, administrators, testamentary trustees, or by the laws of descent and
distribution and provided that, in the case of a trust, the existing
beneficiaries and/or trustee(s) and/or grantor(s) of such trust have the power
to act with respect to the trust's assets without court approval and, in the
case of a family partnership, that the partners thereof have the power to act
with respect to the partnership's assets without court approval and the
partnership is not permitted to (i) distribute assets to Persons who are not
among the relatives listed above or (ii) have partners who are not among the
relatives listed above, and, in any case, all the partners agree, for the
benefit of the Company and FPSH, not to amend such provisions; (c) to a legal
representative of Mr. Romo in the event Mr. Romo

                                      -17-
<PAGE>
becomes mentally incompetent or to Mr. Romo's personal representative following
his death; or (d) with the prior written approval of FPSH, which approval may be
granted or withheld by FPSH in its sole and absolute discretion. Transferees to
whom Transfers are permitted pursuant to this Section 2.3.5 are referred to
herein as "Romo Transferees." The restrictions contained in Section 2.1.1 shall
not apply to any Transfer by a Romo Transferee to another Romo Transferee.

            2.3.6 Transfers to Romo Persons or FPSH. The restrictions contained
in Section 2.1.1 shall not apply to any Transfer by the Bondholder SPC, a Romo
Person, a Management Investor, a Romo Transferee, FPSH, or a Management
Transferee to a Romo Person or to FPSH, provided, however, that (a) any such
Transfers by any Management Investor or Management Transferee shall be offered
on a proportionate basis to (i) FPSH, on the one hand, and (ii) the Romo
Persons, on the other hand, and (b) any such Transfers by the Bondholder SPC may
be made only to a Romo Person. The restrictions contained in Section 2.1.1 shall
not apply to the Transfer by the ARG Trust of 4,365,257 shares of Common Stock
to Emprima or to the Transfer by Savia of 3,844,117 shares of Common Stock to
the Pulsar Administration and Payment Trust, which Transfers shall occur
following the closing of the transactions contemplated by the FPSH Stock
Purchase Agreement. In addition, the restrictions contained in Section 2.1 shall
not apply to the Transfer by the Pulsar Administration and Payment Trust to
Bondholder SPC of 1,617,647 shares of Common Stock.

            2.3.7 Pledges. The restrictions contained in Section 2.1.1 shall not
apply to (a) the security interest granted by Emprima, for the benefit of the
Pulsar Administration and Payment Trust, with respect to Emprima's 4,365,257
shares of Common Stock, (b) the escrow of the SPC Co-Investment Rights by the
Rights Holder, for the benefit of FPSH, pursuant to the Indemnification
Agreement, or (c) the escrow of Park's 1,000,000 shares of Common Stock, by
Park, for the benefit of FPSH, pursuant to the Indemnification Agreement.

            2.3.8 NML/ABP/PGGM Permitted Sales. Notwithstanding anything to the
contrary contained in this Article II, subject to the terms of this Agreement,
including compliance with Sections 2.1.3, 2.1.4 and 2.2, prior to the three-year
anniversary of this Agreement, (a) NML and any of its PS Permitted Transferees
shall be permitted to make Transfers to a Person or group of Affiliated Persons
of Warrants and/or shares of Common Stock that together represent 25% (taking
into account any adjustments) or more of the aggregate number of Warrants owned
by NML on the Effective Date, and (b) ABP and PGGM and their PS Permitted
Transferees shall collectively be permitted to make Transfers to a Person or
group of Affiliated Persons of Warrants and/or shares of Common Stock that
together represent 100% (taking into account any adjustments) of the aggregate
number of Warrants collectively owned by ABP and PGGM on the Effective Date.

            2.3.9 General. Any restrictions contained in this Article II shall
be in addition to and not in lieu or limitation of any restrictions on the
ownership or Transfer of shares of Common Stock (including with respect to any
Restricted Stock) or securities convertible into or exercisable for any shares
of Common Stock contained in any stock subscription agreement or employment
agreement or any analogous provision of any employment, compensation or benefit
agreement or arrangement or other agreement between the Company or any of its
Affiliates and any Stockholder; provided, however, that, upon the termination of
any such employment agreement or other such agreement or arrangement or lapsing
of such restrictions, the restrictions and provisions contained herein shall
continue in full force and effect pursuant to this

                                      -18-
<PAGE>
Agreement. Any permitted Transfer under this Section 2.3 shall be subject to the
terms of this Agreement, including compliance with Sections 2.1.3, 2.1.4 and
2.2.

      2.4   Sale Initiatives.

            2.4.1 Romo Sale Initiative.

            (a)   On or after the three-year anniversary of the Effective Date,
Mr. Romo may offer to sell to FPSH and to the Company (a "Romo Sale Initiative")
all of the shares of Common Stock or securities convertible into or exercisable
for any shares of Common Stock (including the SPC Co-Investment Rights) owned or
controlled by the Romo Persons and the Romo Transferees and the Bondholder SPC
and each such Stockholder hereby agrees to such sale (the "Romo Transfer
Shares") at a price per share of Common Stock (the "Romo Sale Price") proposed
by Mr. Romo that would satisfy or exceed the IRR Hurdle if 100% of the shares of
Common Stock or securities convertible into or exercisable for any shares of
Common Stock (including the Co-Investment Rights) of the Company were sold at
such per share price, provided, however, that the Rights Holder may agree to the
vesting of less than 100% of the Hurdle Co-Investment Rights (with such reduced
vesting of the SPC Hurdle Co-Investment rights, the FPSH Hurdle Co-Investment
Rights and any unvested Restricted Stock Units occurring on a pro rata basis) in
order to cause FPSH to achieve the IRR Hurdle after giving effect to the vesting
of the reduced Hurdle Co-Investment Rights and the vesting of all other rights
and options to purchase Common Stock. Notice of a Romo Sale Initiative must be
provided to FPSH and to the Company in writing (a "Romo Sale Notice") and must
state a bona fide intention to sell the Romo Transfer Shares, specifying the
cash price for such sale.

            (b)   Each of FPSH and the Company shall be entitled to assign to a
third party the right to purchase the Romo Transfer Shares in connection with
its exercise of its rights hereunder. Within thirty days from the date of
receipt of a Romo Sale Notice, FPSH and the Company shall each deliver a written
notice to Mr. Romo stating whether FPSH (or its assignee) or the Company (or its
assignee), as the case may be, elects to purchase the Romo Transfer Shares at
the price and on the terms specified in the Romo Sale Notice. In the event that
both FPSH (or its assignee) and the Company (or its assignee) elect to purchase
the Romo Transfer Shares, the election of FPSH (or its assignee) shall prevail.
The Romo Designees shall not be entitled to vote in the determination by the
Board of Directors of the Company regarding the Company's rights hereunder. Any
election to purchase hereunder shall be binding upon delivery and irrevocable
without Mr. Romo's consent. If the Company, FPSH or an assignee of the Company
or FPSH (as the case may be), elects to purchase the Romo Sale Shares, the
applicable parties shall have 120 days to consummate such sale and if they fail
to consummate such sale within the 120 day period, no sale shall occur.

            (c)   If FPSH and the Company decline a Romo Sale Initiative, FPSH
and Mr. Romo shall work together, for up to 180 days from the date of receipt by
Mr. Romo of the later provided written notice of decline, to sell to a third
party (a "Romo Initiated Third-Party Sale") 100% of the shares of Common Stock
and securities convertible into or exercisable for any shares of Common Stock
(including the Co-Investment Rights, subject to any such reduced vesting) at a
price per share of Common Stock at or above the Romo Sale Price. Each of FPSH
and Mr. Romo shall use its respective reasonable best efforts (which shall
include enlisting and

                                      -19-
<PAGE>
engaging members of the Company's senior management in such effort) to effect a
Romo Initiated Third-Party Sale. If a bona fide written offer from a third-party
for a Romo Initiated Third-Party Sale has been made at a price per share of
Common Stock equal to or greater than the Romo Sale Price, then either Mr. Romo
or FPSH may require a Romo Initiated Third-Party Sale at such price (a "Required
Third-Party Sale") pursuant to Sections 2.4.3 and 2.4.4 below.

            (d)   If FPSH and the Company decline a Romo Sale Initiative and a
Romo Initiated Third-Party Sale is not completed within the 180-day time frame,
Mr. Romo shall have the right to commence additional Romo Sale Initiatives,
provided, however, that Mr. Romo may not commence more than one Romo Sale
Initiative in any 365-day period and may not commence a Romo Sale Initiative
during the pendency of an FPSH Sale Initiative (as defined below).

            (e)   The Hurdle Co-Investment Rights shall not vest pursuant to
this Section 2.4.1 or Section 2.4.3 unless a Romo Sale Initiative or a Required
Third-Party Sale is completed and if any such sale is completed, the Hurdle
Co-Investment Rights shall only vest to the extent provided in this Section
2.4.1.

            2.4.2 FPSH Sale Initiative.

            (a)   On or after the three-year anniversary of the Effective Date,
FPSH may offer to sell to Mr. Romo and to the Company (an "FPSH Sale
Initiative") all of the shares of Common Stock or securities convertible into or
exercisable for any shares of Common Stock owned or controlled by FPSH (the
"FPSH Transfer Shares") at a price per share of Common Stock proposed by FPSH
(the "FPSH Sale Price") so long as FPSH agrees to vest 100% of the Hurdle
Co-Investment Rights in connection with the consummation of such sale. Notice of
an FPSH Sale Initiative must be provided to Mr. Romo and to the Company in
writing (an "FPSH Sale Notice") and must state a bona fide intention to sell the
FPSH Transfer Shares, specifying a cash price for such sale.

            (b)   Each of Mr. Romo and the Company shall be entitled to assign
to a third party the right to purchase the FPSH Transfer Shares in connection
with an exercise of its rights hereunder. Within thirty days from the date of
receipt of an FPSH Sale Notice, Mr. Romo and the Company shall each deliver a
written notice to FPSH stating whether Mr. Romo (or his assignee) or the Company
(or its assignee), as the case may be, elects to purchase the FPSH Transfer
Shares at the price and on the terms specified in the FPSH Sale Notice. In the
event that both Mr. Romo (or his assignee) and the Company (or its assignee)
elect to purchase the FPSH Sale Shares, the election of Mr. Romo (or his
assignee) shall prevail. The FPSH Designees shall not be entitled to vote in the
determination by the Board of Directors of the Company regarding the Company's
rights hereunder. Any such election to purchase hereunder shall be binding upon
delivery and irrevocable without the consent of FPSH. If the Company, Mr. Romo
or an assignee of the Company or Mr. Romo (as the case may be), elects to
purchase the FPSH Sale Shares, then the Company, Mr. Romo or an assignee of the
Company or Mr. Romo (as the case may be) shall have the right to require NML,
ABP, PGGM and their respective PS Permitted Transferees to sell to the Company,
Mr. Romo or an assignee of the Company or Mr. Romo (as the case may be) all of
the shares of Common Stock and Warrants owned or controlled by NML, ABP, PGGM
and their respective PS Permitted Transferees (the "PS Equity"), on the same
terms and conditions and at the same price (in the case of Warrants, the
purchase price of each Warrant

                                      -20-
<PAGE>
shall be equal to the purchase price attributable to the number of shares of
Common Stock issuable upon exercise of such Warrant less the exercise price
thereof) applicable to the FPSH Sale Shares. If the Company, Mr. Romo or an
assignee of the Company or Mr. Romo (as the case may be), elects to purchase the
FPSH Sale Shares (whether or not such party also elects to purchase the PS
Equity), the applicable parties shall have 120 days to consummate such sale and
if they fail to consummate such sale within the 120 day period, no sale shall
occur.

            (c)   If Mr. Romo and the Company decline an FPSH Sale Initiative,
FPSH and Mr. Romo shall work together for up to 180 days from the date of
receipt by FPSH of the later provided written notice of decline, to sell to a
third party (an "FPSH Initiated Third-Party Sale") 100% of the shares of Common
Stock and securities convertible into or exercisable for any shares of Common
Stock (including the Co-Investment Rights) at a price per share of Common Stock
at or above the FPSH Sale Price. Each of FPSH and Mr. Romo shall use its
respective reasonable best efforts (which shall include enlisting and engaging
members of the Company's senior management in such effort) to effect an FPSH
Initiated Third-Party Sale. If a bona fide written offer from a third party for
an FPSH Initiated Third-Party Sale has been made at a price per share of Common
Stock equal to or greater than the FPSH Sale Price, then either party may
require an FPSH Initiated Third-Party Sale at such price (a "Required
Third-Party Sale") pursuant to Sections 2.4.3 and 2.4.4 below.

            (d)   If Mr. Romo and the Company decline an FPSH Sale Initiative
and an FPSH Initiated Third-Party Sale is not completed within the 180-day time
frame, FPSH shall have the right to commence additional FPSH Sale Initiatives,
provided, however, that FPSH may not commence more than one FPSH Sale Initiative
in any 365-day period and may not commence an FPSH Sale Initiative during the
pendency of a Romo Sale Initiative.

            (e)   The Hurdle Co-Investment Rights shall not vest pursuant to
this Section 2.4.2 or 2.4.3 unless an FPSH Sale Initiative or a Required
Third-Party Sale is completed.

            2.4.3 Required Third-Party Sale. If either FPSH or Mr. Romo proposes
to make a Required Third-Party Sale pursuant to Section 2.4.1(c) or Section
2.4.2(c), in a bona fide arm's-length transaction or series of related
transactions to a Proposed Transferee, including pursuant to a stock sale,
merger, business combination, recapitalization, consolidation, reorganization,
restructuring or similar transaction, such party shall have (and shall exercise)
the right (a "TPS Drag-Along Right"), exercisable upon 30 days' prior written
notice to the other Stockholders, to require the other Stockholders to sell all
of their shares of Common Stock, Options, Warrants and Co-Investment Rights (to
the extent then vested or concurrently being vested), to the Proposed Transferee
on the same terms and conditions and at the same price (in the case of Options
and Warrants, the purchase price of each Option and Warrant shall be equal to
the purchase price attributable to the number of shares of Common Stock issuable
upon exercise of such Option or Warrant less the exercise price thereof; in the
case of Co-Investment Rights, the purchase price of each Co-Investment Right
shall be equal to the purchase price attributable to the number of shares of
Common Stock issuable upon exercise of such Co-Investment Right (to the extent
then vested or concurrently being vested) less the exercise price thereof) as
FPSH and Mr. Romo would receive in connection with such transaction.

            2.4.4 TPS Sale Agreement. Each Stockholder selling shares of Common
Stock, Options, Warrants or Co-Investment Rights pursuant to Section 2.4.3 (a
"TPS Drag-Along

                                      -21-
<PAGE>
Seller") agrees to cooperate in consummating such a sale, including, without
limitation, by becoming a party to the sales agreement and all other appropriate
related agreements, delivering, at the consummation of such sale, stock
certificates and other instruments for such shares of Common Stock, Options,
Warrants or Co-Investment Rights duly endorsed for transfer, free and clear of
all liens and encumbrances, and voting or consenting in favor of such
transaction (to the extent a vote or consent is required) and taking any other
necessary or appropriate action in furtherance thereof, including the execution
and delivery of any other appropriate agreements, certificates, instruments and
other documents. The foregoing notwithstanding, in connection with such sale, a
TPS Drag-Along Seller, as such, shall not be required to make any
representations and warranties with respect to the Company or the Company's
business or with respect to any other seller. In addition, each TPS Drag-Along
Seller shall be severally responsible for its proportionate share of the
third-party expenses of sale incurred by the Company, FPSH and Mr. Romo in
connection with such sale. Such monetary obligations and liabilities shall
include (to the extent such obligations are incurred) monetary obligations and
liabilities for indemnification (including for (a) breaches of representations
and warranties made in connection with such sale by the Company or any other
seller with respect to the Company or the Company's business and (b) breaches of
covenants in effect prior to closing), and shall also include amounts paid into
escrow or subject to holdbacks, and amounts subject to post-closing purchase
price adjustments, provided that all such obligations are equally applicable on
a several and not joint basis to each TPS Drag-Along Seller based on the
consideration received by such TPS Drag-Along Seller (treating any exercise
price of unexercised Options or unexercised Warrants or unexercised
Co-Investment Rights as consideration received). The foregoing notwithstanding,
(a) without the written consent of a TPS Drag-Along Seller, the amount of such
obligations and liabilities for which such TPS Drag-Along Seller shall be
responsible shall not exceed the gross proceeds received by such TPS Drag-Along
Seller in such sale (treating any exercise price of unexercised Options or
unexercised Warrants or unexercised Co-Investment Rights as proceeds received)
and (b) a TPS Drag-Along Seller shall not be responsible for the fraud of any
other seller or any indemnification obligations and liabilities for breaches of
representations and warranties made by any other seller with respect to such
other seller's (i) ownership of and title to shares of capital stock of the
Company, (ii) organization, (iii) authority and (iv) conflicts and consents.

            2.4.5 No Liability. Notwithstanding any other provision contained in
this Section 2.4, there shall be no liability on the part of the Company or FPSH
or Mr. Romo in the event that a Required Third-Party Sale pursuant to this
Section 2.4 is not consummated for any reason whatsoever, provided, however,
that this Section 2.4.5 shall not relieve the Company or FPSH or Mr. Romo of any
liability for the breach of this Agreement or any other agreement.

      2.5   FPSH Drag Sale. Notwithstanding anything to the contrary contained
in this Agreement, during such time as FPSH has the right to nominate a majority
of the members of the Board of Directors of the Company pursuant to Section
5.1.2, FPSH may require a sale of 100% of the shares of Common Stock and
securities convertible into or exercisable for any shares of Common Stock
(including the Co-Investment Rights) (an "FPSH Drag Sale") (a) prior to the
three-year anniversary of the Effective Date, if (i) Mr. Romo is no longer Chief
Executive Officer of the Company or is no longer performing for the Company the
customary functions of a chief executive officer, and (ii) FPSH agrees to vest
100% of the Hurdle Co-Investment Rights, and (b) on or after the three-year
anniversary of the Effective Date, if FPSH agrees to vest the

                                      -22-
<PAGE>
greatest percentage (between 0% and 100%) of the Hurdle Co-Investment Rights
(vesting the unvested Restricted Stock Units, the SPC Hurdle Co-Investment
Rights and the FPSH Hurdle Co-Investment Rights on a pro rata basis) as would
result in FPSH achieving the IRR Hurdle after giving effect to the vesting of
such percentage of the Hurdle Co-Investment Rights and the vesting of all other
rights and options to purchase Common Stock. The Hurdle Co-Investment Rights
shall not vest pursuant to this Section 2.5 unless an FPSH Drag Sale is
completed and if any such sale is completed, the Hurdle Co-Investment Rights
shall only vest to the extent provided herein.

            2.5.1 Exercise. If FPSH proposes to make an FPSH Drag Sale, in a
bona fide arm's-length transaction or series of related transactions to a
Proposed Transferee, including pursuant to a stock sale, merger, business
combination, recapitalization, consolidation, reorganization, restructuring or
similar transaction, FPSH shall have (and shall exercise) the right (an "FPSH
Drag-Along Right"), exercisable upon 30 days' prior written notice to the other
Stockholders, to require the other Stockholders to sell all of their shares of
Common Stock, Options, Warrants and Co-Investment Rights (to the extent then
vested or concurrently being vested), to the Proposed Transferee on the same
terms and conditions and at the same price (in the case of Options and Warrants,
the purchase price of each Option and Warrant shall be equal to the purchase
price attributable to the number of shares of Common Stock issuable upon
exercise of such Option or Warrant less the exercise price thereof; in the case
of Co-Investment Rights, the purchase price of each Co-Investment Right shall be
equal to the purchase price attributable to the number of shares of Common Stock
issuable upon exercise of such Co-Investment Right (to the extent then vested or
concurrently being vested) less the exercise price thereof) as FPSH would
receive in connection with such transaction.

            2.5.2 Sale Agreement. Each Stockholder selling shares of Common
Stock, Options, Warrants or Co-Investment Rights pursuant to a transaction
contemplated by this Section 2.5 (an "FPSH Drag-Along Seller") agrees to
cooperate in consummating such a sale, including, without limitation, by
becoming a party to the sales agreement and all other appropriate related
agreements, delivering, at the consummation of such sale, stock certificates and
other instruments for such shares of Common Stock, Options, Warrants or
Co-Investment Rights duly endorsed for transfer, free and clear of all liens and
encumbrances, and voting or consenting in favor of such transaction (to the
extent a vote or consent is required) and taking any other necessary or
appropriate action in furtherance thereof, including the execution and delivery
of any other appropriate agreements, certificates, instruments and other
documents. The foregoing notwithstanding, in connection with such sale, an FPSH
Drag-Along Seller, as such, shall not be required to make any representations
and warranties with respect to the Company or the Company's business or with
respect to any other seller. In addition, each FPSH Drag-Along Seller shall be
severally responsible for its proportionate share of the third-party expenses of
sale incurred by FPSH in connection with such sale. Such monetary obligations
and liabilities shall include (to the extent such obligations are incurred)
monetary obligations and liabilities for indemnification (including for (a)
breaches of representations and warranties made in connection with such sale by
the Company or any other seller with respect to the Company or the Company's
business and (b)breaches of covenants in effect prior to closing), and shall
also include amounts paid into escrow or subject to holdbacks, and amounts
subject to post-closing purchase price adjustments, provided that all such
obligations are equally applicable on a several and not joint basis to each FPSH
Drag-Along Seller based on the consideration received by such

                                      -23-
<PAGE>
FPSH Drag-Along Seller (treating any exercise price of unexercised Options or
unexercised Warrants or unexercised Co-Investment Rights as consideration
received). The foregoing notwithstanding, (a) without the written consent of an
FPSH Drag-Along Seller, the amount of such obligations and liabilities for which
such FPSH Drag-Along Seller shall be responsible shall not exceed the gross
proceeds received by such FPSH Drag-Along Seller in such sale (treating any
exercise price of unexercised Options or unexercised Warrants or unexercised
Co-Investment Rights as proceeds received) and (b) an FPSH Drag-Along Seller
shall not be responsible for the fraud of any other seller or any
indemnification obligations and liabilities for breaches of representations and
warranties made by any other seller with respect to such other seller's (i)
ownership of and title to shares of capital stock of the Company, (ii)
organization, (iii) authority and (iv) conflicts and consents.

            2.5.3 No Liability. Notwithstanding any other provision contained in
this Section 2.5, there shall be no liability on the part of the Company or FPSH
in the event that the sale pursuant to this Section 2.5 is not consummated for
any reason whatsoever, provided, however, that this Section 2.5.3 shall not
relieve the Company or FPSH of any liability for the breach of this Agreement or
any other agreement. The decision whether to effect a Transfer pursuant to this
Section 2.5 shall be in the sole and absolute discretion of FPSH.

      2.6   Tag-Along Rights. Terms that are defined more than once in this
Section 2.6 shall be applied to each Person based on the Section applicable to
such Person at such time.

            2.6.1 Tag Notice.

            (a)   Single-Step Sale. On or after the three-year anniversary of
the Effective Date, if FPSH proposes to sell to one or more Affiliated Persons
in a single transaction a majority of the aggregate outstanding shares of Common
Stock that it owns on the Effective Date, other than (i) to an FPSH Affiliate
Transferee, (ii) pursuant to Section 2.4 (Sale Initiatives), (iii) pursuant to
Section 2.5 (FPSH Drag Sale), (iv) pursuant to a Piggyback Registration, or (v)
pursuant to a Demand Registration (clauses (i) through (v), collectively, "Tag
Carve-Out Sales"), then FPSH shall first give written notice (the "Tag Notice")
to the Company and to each of the other Stockholders at the Effective Date (such
other Stockholders, the "Offeree Stockholders"), stating that FPSH desires to
make such sale, referring to Section 2.6, specifying the number of shares of
Common Stock proposed to be sold by FPSH pursuant to the offer (the "Offer
Shares"), and, specifying the price, the form of consideration, name and
description of the purchaser and the material terms pursuant to which such sale
is proposed to be made.

            (b)   Multi-Step Sale. On or after the three-year anniversary of the
Effective Date, if FPSH engages in a series of bona fide sales (other than any
Tag Carve-Out Sales) to a Person or Affiliated Persons, the last of which bona
fide sale (the "Final Sale") would result in such Person or Affiliated Persons
(together, a "Multi-Step FPSH Majority Buyer") acquiring from FPSH, in the
aggregate, a majority of the aggregate outstanding shares of Common Stock that
FPSH owns on the Effective Date (a "Multi-Step FPSH Majority Sale"), then, FPSH
shall first give written notice (the "Tag Notice") to the Company and to each of
the other Stockholders at the Effective Date (the "Offeree Stockholders"),
stating that FPSH desires to make such Final Sale, referring to Section 2.6,
specifying the Offer Shares, and, specifying the price, the form of
consideration, name and description of the purchaser and the material terms
pursuant to which

                                      -24-
<PAGE>
such Final Sale is proposed to be made. In the event of a Multi-Step FPSH
Majority Sale, (i) the Tag-Along Rights pursuant to this Section 2.6.1(b) shall
be based upon the price, the form of consideration, and the other material terms
pursuant to which such Final Sale is proposed to be made, and (ii) "Offer
Shares" shall be deemed to include all shares of Common Stock (A) previously
sold by FPSH to the Multi-Step FPSH Majority Buyer and (B) proposed to be sold
by FPSH to the Multi-Step FPSH Majority Buyer in the Final Sale.

            (c)   NML/ABP/PGGM Tag Sale. After such time as FPSH has sold, in
the aggregate, 5% of the aggregate outstanding shares of Common Stock that FPSH
owns on the Effective Date, each time that FPSH proposes to sell shares of
Common Stock, other than (i) to an FPSH Affiliate Transferee, (ii) pursuant to
Section 2.5 (FPSH Drag Sale), (iii) pursuant to a Piggyback Registration, or
(iv) pursuant to a Demand Registration, then FPSH shall first give written
notice (the "Tag Notice") to the Company and to NML, ABP and PGGM and any of
their respective PS Permitted Transferees (collectively, the "Offeree
Stockholders"), stating that FPSH desires to make such sale, referring to
Section 2.6, specifying the number of shares of Common Stock proposed to be sold
by FPSH pursuant to the offer (the "Offer Shares"), and, specifying the price,
the form of consideration, name and description of the purchaser and the
material terms pursuant to which such sale is proposed to be made. If and to the
extent that Tag-Along Rights are triggered by Section 2.6.1(a) or Section
2.6.1(b), then NML, ABP and PGGM and any of their respective PS Permitted
Transferees shall have the right to participate in such sales only to the extent
contemplated by this Section 2.6.1(c) and not pursuant to Section 2.6.1(a) or
Section 2.6.1(b).

            2.6.2 Tag-Along Election. Within seven Business Days of the date of
receipt of the Tag Notice, each Offeree Stockholder shall deliver to FPSH and to
the Company a written notice stating whether the Offeree Stockholder elects to
sell any of its shares of Common Stock up to its pro rata portion of its Common
Stock (equal to (a) the total number of shares of Common Stock owned by such
Offeree Stockholder, plus the total number of shares of Common Stock then
issuable upon exercise of Options, Warrants and Co-Investment Rights then
exercisable by such Offeree Stockholder, multiplied by (b) a fraction, (i) the
numerator of which is the number of Offer Shares and (ii) the denominator of
which is the total number of shares of Common Stock held by FPSH plus the total
number of shares of Common Stock then issuable upon exercise or conversion of
any convertible securities (including Options, Warrants and FPSH Hurdle
Co-Investment Rights), if applicable, then exercisable or convertible by FPSH
plus (in the case of a Multi-Step FPSH Majority Sale and for purposes of Section
2.6.1(b) only) the total number of shares of Common Stock, if any, previously
Transferred by FPSH to a Multi-Step FPSH Majority Buyer) to such Proposed
Transferee on the same terms, purchase price and conditions as FPSH (with
respect to each Offeree Stockholder, its "Tag-Along Shares"). An election
pursuant to the first sentence of this Section 2.6.2 shall constitute an
irrevocable commitment by the Offeree Stockholder making such election to sell
such Tag-Along Shares to the Proposed Transferee if the sale of Offer Shares to
the Proposed Transferee occurs on the terms contemplated hereby. Such terms may
include a maximum number of shares such Proposed Transferee is willing to
purchase, and, in such case, FPSH and the Offeree Stockholder(s) selling shares
pursuant hereto shall be cut back pro rata based on the number of shares each
such Stockholder is electing to sell.

            2.6.3 Seller's Rights to Transfer.

                                      -25-
<PAGE>
            (a)   Third-Party Sale; Tag-Along Buyer. A sale to a Proposed
Transferee pursuant to this Section 2.6 shall only be consummated if the
Proposed Transferee shall purchase, within 120 days of the date of the Tag
Notice, concurrently with and on the same terms and conditions and at the same
price as the Offer Shares, all of each Offeree Stockholder's Tag-Along Shares
with respect to such sale, in accordance with their elections pursuant to
Section 2.6.2, and subject to the last sentence thereof (the "Tag-Along Right").

            (b)   Sale Agreement. Each Offeree Stockholder electing to sell
Tag-Along Shares (a "Tag-Along Seller") agrees to cooperate in consummating such
a sale, including, without limitation, by becoming a party to the sale agreement
and all other appropriate related agreements, delivering, at the consummation of
such sale, stock certificates and other instruments for such Common Stock (or
other equity securities of the Company) duly endorsed for transfer, free and
clear of all liens and encumbrances, and voting or consenting in favor of such
transaction (to the extent a vote or consent is required) and taking any other
necessary or appropriate action in furtherance thereof, including the execution
and delivery of any other appropriate agreements, certificates, instruments and
other documents. The foregoing notwithstanding, in connection with such sale, a
Tag-Along Seller, as such, shall not be required to make any representations and
warranties with respect to the Company or the Company's business or with respect
to any other seller. In addition, each Tag-Along Seller shall be severally
responsible for its proportionate share of the third-party expenses of sale
incurred by the sellers in connection with such sale and the monetary
obligations and liabilities incurred by the sellers in connection with such
sale. Such monetary obligations and liabilities shall include (to the extent
such obligations are incurred) obligations and liabilities for indemnification
(including for (i) breaches of representations and warranties made in connection
with such sale by the Company or any other seller with respect to the Company or
the Company's business, and (ii) breaches of covenants in effect prior to
closing), and shall also include amounts paid into escrow or subject to
holdbacks, and amounts subject to post-closing purchase price adjustments,
provided that all such obligations are equally applicable on a several and not
joint basis to each Tag-Along Seller based on the consideration received by such
Tag-Along Seller (treating any exercise price of unexercised Options or
unexercised Warrants or unexercised Co-Investment Rights as consideration
received). The foregoing notwithstanding, (i) without the written consent of a
Tag-Along Seller, the amount of such obligations and liabilities for which such
Tag-Along Seller shall be responsible shall not exceed the gross proceeds
received by such Tag-Along Seller in such sale (treating any exercise price of
unexercised Options or unexercised Warrants or unexercised Co-Investment Rights
as proceeds received) and (ii) a Tag-Along Seller shall not be responsible for
the fraud of any other seller or for any indemnification obligations and
liabilities for breaches of representations and warranties made by any other
seller with respect to such other seller's (A) ownership of and title to shares
of capital stock of the Company, (B) organization, (C) authority and (D)
conflicts and consents. Notwithstanding anything to the contrary in this Section
2.6, FPSH shall be entitled to require any Tag-Along Seller of vested Options,
Warrants, Co-Investment Rights or other equity rights convertible into Common
Stock to exercise such vested Options, Warrants, Co-Investment Rights or other
equity rights concurrent with the consummation of any sale contemplated by this
Section 2.6 to the extent necessary to participate in such sale.

            (c)   No Liability. Notwithstanding any other provision contained in
this Section 2.6.3, there shall be no liability on the part of the Company or
FPSH in the event that the

                                      -26-
<PAGE>
sale pursuant to this Section 2.6.3 is not consummated for any reason
whatsoever, provided, however, that this Section 2.6.3(c) shall not relieve the
Company or FPSH of any liability for the breach of this Agreement or any other
agreement. The decision whether to effect a Transfer pursuant to this Section
2.6.3 shall be in the sole and absolute discretion of FPSH.

      2.7   Additional Provisions Relating to Restrictions on Transfers.

            2.7.l Legends. Each of the Stockholders hereby agrees that each
outstanding certificate representing shares of Common Stock held or owned by
such Stockholder or its Transferee, including any certificate representing
shares of Common Stock acquired in accordance with the provisions of this
Agreement or employment agreements with Management Investors, any certificates
representing shares of Common Stock issued upon exercise of Options, Warrants or
Co-Investment Rights and any Options, Warrants or Co-Investment Rights, in any
case, subject to the provisions of this Agreement and issued prior to the date
when the applicable restrictions are terminated pursuant to Section 2.7.3, shall
bear endorsements reading substantially as follows:

            (a)   The securities represented by this certificate have not been
      registered under the Securities Act of 1933, as amended, or under the
      securities laws of any state and may not be transferred, sold or otherwise
      disposed of except while such a registration is in effect or pursuant to
      an exemption from registration under said Act and applicable state
      securities laws.

            (b)   The securities represented by this certificate are subject to
      the terms and conditions set forth in an Amended and Restated
      Stockholders' Agreement, dated as of September 29, 2003, as amended from
      time to time, copies of which may be obtained from the issuer or from the
      holder of this security. No transfer of such securities will be made on
      the books of the issuer unless accompanied by evidence of compliance with
      the terms of such agreement.

            Each outstanding certificate representing shares of Common Stock
shall also bear any legend required by the terms of any subscription agreement,
the 1998 Stock Incentive Plan or as the Company may otherwise deem appropriate.

            2.7.2 Copy of Agreement. A copy of this Agreement shall be filed
with the corporate secretary of the Company, and kept with the records of the
Company, and shall be made available for inspection by any Stockholder at the
principal executive offices of the Company.

            2.7.3 Termination of Restrictions. The restriction referred to in
the endorsement required pursuant to Section 2.7.1 (a) shall cease and terminate
as to any particular shares of Common Stock when, in the reasonable opinion of
counsel for the Company, such restriction is no longer required in order to
assure compliance with the Securities Act and the state securities or "blue sky"
laws. The Company or the Company's counsel, at their election, may request from
any Stockholder a certificate or an opinion of such Stockholder's counsel with
respect to any relevant matters in connection with the removal of the
endorsement set forth in Section 2.7.1(a) from such Stockholder's stock
certificates, any such certificate or opinion of counsel to be

                                      -27-
<PAGE>
reasonably satisfactory to the Company and its counsel. The restrictions
referred to in Section 2.7.1(b) shall cease and terminate as to any particular
shares of Common Stock when, in the reasonable opinion of counsel for the
Company, the provisions of this Agreement are no longer applicable to such
shares or this Agreement shall have terminated in accordance with its terms. Any
other restrictions referred to in any other legends required pursuant to Section
2.7.1 shall cease and terminate when, in the reasonable opinion of counsel for
the Company, such restrictions are no longer applicable. Whenever such
restrictions shall cease and terminate as to any shares of Common Stock or
Options or Warrants or Co-Investment Rights, the Stockholder holding such shares
shall be entitled to receive from the Company, without expense (other than
applicable transfer taxes, if any, if such unlegended shares are being delivered
and transferred to any Person other than the registered holder thereof), new
certificates for a like number of shares of Common Stock or like number of
Options or like number of Warrants or like number of Co-Investment Rights not
bearing the relevant legend(s) set forth or referred to in Section 2.7.1.

      2.8   Treatment of Hurdle Co-Investment Rights. In any instance
contemplated by this Article II in which the Hurdle Co-Investment Rights may be
subject to reduced vesting in order to cause FPSH to achieve the IRR Hurdle,
FPSH and the Rights Holder may mutually agree in writing, in their sole
discretion, to any alternative means of causing FPSH to achieve the IRR Hurdle
(and/or to waive satisfaction of any conditions to vesting thereof), including,
without limitation, (a) the Rights Holder or another Romo Person Transferring
some or all of the SPC Co-Investment Rights or Common Stock owned by such Romo
Person to FPSH, (b) any Romo Person making a cash payment to FPSH, and/or (c)
FPSH waiving or amending the terms of vesting of the Hurdle Co-Investment
Rights.

                                  ARTICLE III

                              REGISTRATION RIGHTS

      3.1   Piggyback and Demand Registrations.

            3.1.1 Piggyback Registrations. Following the three-year anniversary
of the Effective Date, if the Company proposes to register for sale by the
Company under the Securities Act any of its equity securities (other than a
registration on Form S-4 or Form S-8, or any successor or similar forms), or any
shares of Common Stock of an Initiating Party pursuant to a Demand Registration
under Section 3.1.2, in a manner that would permit registration of Registrable
Securities for sale to the public under the Securities Act, the Company will
each such time promptly give written notice to all Stockholders who beneficially
own any Registrable Securities of its intention to do so, of the registration
form of the SEC that has been selected by the Company and of such holders'
rights under this Section 3.1 (the "Piggyback Notice"). The Company will use its
reasonable best efforts to include, and to cause the underwriter or
underwriters, if applicable, to include, in the proposed offering, on the same
terms and conditions as the securities of the Company included in such offering,
all Registrable Securities that the Company has been requested in writing,
within 15 calendar days after the Piggyback Notice is given, to register by the
Stockholders thereof (each such registration pursuant to this Section 3.1.1, a
"Piggyback Registration"); provided, however, that (a) if, at any time after
giving a

                                      -28-
<PAGE>
Piggyback Notice and prior to the effective date of the registration statement
filed in connection with such registration, the Company shall determine for any
reason not to register such equity securities (or, in the case of a Demand
Registration, the Initiating Party thereof so determines), the Company may, at
its election (or, in the case of a Demand Registration, where the Initiating
Party thereof so determines, the Company shall), give written notice of such
determination to all Stockholders who beneficially own any Registrable
Securities and, thereupon, shall be relieved of its obligation to register any
Registrable Securities in connection with such abandoned registration, and (b)
in case of a determination by the Company to delay registration of its equity
securities (or, in the case of a Demand Registration, the Initiating Party
thereof so determines) the Company shall be permitted to (or, in the case of a
Demand Registration where the Initiating Party thereof so determines, the
Company, for a period not to exceed 60 days, shall) delay the registration of
such Registrable Securities for the same period as the delay in registering such
other equity securities (provided that clauses (a) and (b) above shall not
relieve the Company of its obligations under Section 3.1.2). In the case of any
registration of Registrable Securities in an underwritten offering pursuant to
this Section 3.1.1, all Stockholders proposing to distribute their securities
pursuant to this Section 3.1.l shall, at the request of the Company (or, in the
case of a Demand Registration, the Initiating Party thereof), enter into an
agreement in customary form with the underwriter or underwriters selected by the
reasonable agreement of FPSH and Mr. Romo (or, in the case of a Demand
Registration, selected in accordance with Section 3.1.2). Notwithstanding the
foregoing, following an IPO, the Company shall not be obligated to effect
registration of Registrable Securities for which Piggyback Registration is
requested by a Stockholder if, at the time of such request, all such Registrable
Securities are eligible for sale to the public by the requesting Stockholder
without registration under Rule 144, with such sale not being limited by the
volume restrictions thereunder.

            3.1.2 Demand Registrations. Upon the request of (a) FPSH, (b) Mr.
Romo or (c) the holders of a majority of the Warrants and shares of Common
Stock, taken together, held by NML and its PS Permitted Transferees at such time
(each of the parties referred to in clauses (a), (b) and (c), an "Initiating
Party," and the party and/or parties described in clause (c), the "NML
Initiating Party"), the Company shall use its reasonable best efforts to
register under the Securities Act Registrable Securities held by the Initiating
Party (including, at the election of such Initiating Party, in an underwritten
offering) and any other Stockholders participating in such Demand Registration
(provided, however, that the aggregate expected market value of all such
Registrable Securities included in such registration is greater than or equal to
$50 million, and provided, further, that if shares of Common Stock are not
publicly traded, the aggregate expected market value of all Common Stock
included in such registration is greater than or equal to $100 million) and bear
all expenses in connection with such offering in a manner consistent with
Section 3.1.3 and shall enter into such other agreements in furtherance thereof
(each such registration pursuant to this Section 3.1.2, a "Demand
Registration"), and the Company shall provide customary indemnifications in such
instances (in a manner consistent with the indemnification provision of this
Article III) to the Initiating Party, other Stockholders included in such
registration and any such underwriters, provided, however, that no offering
contemplated hereby shall be completed prior to the three-year anniversary of
the Effective Date and provided further that NML and its PS Permitted
Transferees shall not have the right to initiate a Demand Registration until
after the occurrence of an IPO. FPSH shall have the right to initiate up to an
aggregate of six Demand Registrations pursuant to this Section 3.1.2; provided,
however, that the Company shall not be obligated to effect a Demand Registration
within nine months of the

                                      -29-
<PAGE>
effectiveness of another registration under this Section 3.1. Together, the Romo
Persons shall have the right to initiate an aggregate of four Demand
Registrations pursuant to this Section 3.1.2; provided, however, that the
Company shall not be obligated to effect a Demand Registration within nine
months of the effectiveness of another registration under this Section 3.1. The
NML Initiating Party shall have the right to initiate an aggregate of two Demand
Registrations; provided, however, that the Company shall not be obligated to
effect a Demand Registration within nine months of the effectiveness of another
registration under this Section 3.1. A registration shall not count as a Demand
Registration unless and until the registration statement relating thereto has
been declared effective by the SEC and not withdrawn. If any Demand Registration
requested by FPSH is in the form of an underwritten offering, FPSH shall
designate the underwriter or underwriters to be utilized in connection with such
offering, provided, however, that if the ARG Trust or the Rights Holder
participates in the offering, such underwriter or underwriters shall be
reasonably acceptable to Mr. Romo. If the Demand Registration requested by a
Romo Person is in the form of an underwritten offering, Mr. Romo shall designate
an underwriter or underwriters to be utilized in connection with such offering,
provided, however, that if FPSH participates in the offering, such underwriter
or underwriters shall be reasonably acceptable to FPSH. If the Demand
Registration requested by the NML Initiating Party is in the form of an
underwritten offering, the Stockholder proposing to sell the largest number of
shares of Common Stock shall designate an underwriter or underwriters to be
utilized in connection with such offering, provided, however, that such
underwriter or underwriters shall be reasonably acceptable to the Company.

            3.1.3 Expenses. The Company shall pay all Registration Expenses in
connection with each registration of Registrable Securities requested pursuant
to this Section 3.1; provided, however, that each Stockholder shall pay all
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of such Stockholder's Registrable Securities pursuant to
a registration statement effected pursuant to this Section 3.1.

            3.1.4 Priority in Piggyback and Demand Registrations. If the
managing underwriter for a registration pursuant to this Section 3.1 shall
advise the Company in writing that, in its opinion, the number of securities
requested to be included in such registration exceeds the number (the "Section
3.1 Sale Number") that can be sold in an orderly manner in such offering within
a price range acceptable to the Company (or, in the case of a Demand
Registration, to the Initiating Party thereof), the Company shall include in
such offering (a) first, all the securities the Company proposes to register for
its own sale, and (b) second, to the extent that the securities the Company
proposes to register are less than the Section 3.1 Sale Number, all Registrable
Securities requested to be included by all Stockholders; provided, however,
that, if the number of such Registrable Securities exceeds (i) the Section 3.1
Sale Number less (ii) the number of securities included pursuant to clause (a)
above, then the number of such Registrable Securities included in such
registration shall be allocated pro rata among all requesting Stockholders, on
the basis of the relative number of shares of such Registrable Securities each
such Stockholder then holds. If there is any reduction or exclusion of
Registrable Securities pursuant to this Section 3.1.4 in connection with a
Demand Registration, such registration shall not be deemed to be a Demand
Registration for purposes of determining the maximum number of Demand
Registrations the Company is obligated to effect for an Initiating Party
pursuant to Section 3.1.2.

                                      -30-
<PAGE>
            3.1.5 Underwriting Requirements. In connection with any offering
involving any underwriting of securities in a Piggyback Registration or a Demand
Registration, the Company shall not be required to include any Stockholder's
Registrable Securities in such underwriting unless such Stockholder accepts the
terms of the underwriting as agreed upon between the Company (as well as the
Initiating Party in the case of a Demand Registration) and the underwriters in
such quantities and on such terms as set forth in Section 3.1.1, and such
Stockholder agrees to sell such Stockholder's securities on the basis provided
therein and completes and/or executes all questionnaires, indemnities, lock-ups,
underwriting agreements and other documents (including powers of attorney and
custody arrangements) customarily required generally of all selling
Stockholders, in each case, in customary form and substance, which are requested
to be executed in connection therewith.

      3.2   Registration Procedures. If and whenever the Company is required to
use its reasonable best efforts to effect or cause the registration of any
Registrable Securities under the Securities Act as provided in this Article III,
the Company will, as soon as practicable:

            (a)   prepare and file with the SEC the requisite registration
      statement with respect to such Registrable Securities and use its
      reasonable best efforts to cause such registration statement to become and
      remain effective;

            (b)   prepare and file with the SEC such amendments and supplements
      to such registration statement and the prospectus used in connection
      therewith as may be necessary to keep such registration statement
      effective for such period as the Company shall deem appropriate and to
      comply with the provisions of the Securities Act with respect to the sale
      or other disposition of all securities covered by such registration
      statement during such period;

            (c)   furnish to each seller of such Registrable Securities and each
      underwriter such number of copies of such registration statement and of
      each amendment and supplement thereto (in each case including all
      exhibits), such number of copies of the prospectus included in such
      registration statement (including each preliminary prospectus and summary
      prospectus), in conformity with the requirements of the Securities Act,
      and such other documents as such seller may reasonably request;

            (d)   promptly notify each Stockholder that holds Registrable
      Securities covered by such registration statement, (i) when such
      registration statement or any post-effective amendment or supplement
      thereto becomes effective, (ii) of the issuance by the SEC or any state
      securities authority of any stop order, injunction or other order or
      requirement suspending the effectiveness of such registration statement
      (and take all reasonable action to prevent the entry of such stop order or
      to remove it if entered, or the initiation of any proceedings for that
      purpose), or (iii) of the happening of any event as a result of which the
      registration statement, as then in effect, the prospectus related thereto
      or any document included therein by reference includes an untrue statement
      of a material fact or omits to state a material fact required to be stated
      therein or necessary to make the statements therein not misleading in
      light of the circumstances under which they were made and promptly file
      such amendments and supplements which may be required on

                                      -31-
<PAGE>
      account of such event and use its reasonable best efforts to cause each
      such amendment and supplement to become effective;

            (e)   promptly furnish to counsel for each underwriter, if any, and
      to the selling Stockholders of Registrable Securities copies of any
      written request by the SEC or any state securities authority for
      amendments or supplements to a registration statement and prospectus or
      for additional information;

            (f)   use reasonable best efforts to obtain the withdrawal of any
      order suspending the effectiveness of a registration statement at the
      earliest possible time;

            (g)   use its best efforts to cause all such Registrable Securities
      covered by such registration statement to be listed on the principal
      securities exchange or authorized for quotation on Nasdaq, if any, on
      which similar equity securities issued by the Company are then listed or
      authorized for quotation, or eligible for listing or quotation, if the
      listing or authorization for quotation of such securities is then
      permitted under the rules of such exchange or the NASD;

            (h)   enter into an underwriting agreement with the underwriter of
      such offering in the form customary for such underwriter for similar
      offerings, including such representations and warranties by the Company,
      provisions regarding the delivery of opinions of counsel for the Company
      and accountants' letters, provisions regarding indemnification and
      contribution, and such other terms and conditions as are at the time
      customarily contained in such underwriter's underwriting agreements for
      similar offerings (the sellers of Registrable Securities that are to be
      distributed by such underwriter(s) may, at their option, require that any
      or all of the representations and warranties by, and the other agreements
      on the part of, the Company to and for the benefit of such underwriter(s)
      shall also be made to and for the benefit of such sellers of Registrable
      Securities);

            (i)   make available for inspection by representatives of the
      selling Stockholders who hold Registrable Securities and any underwriters
      participating in any disposition pursuant hereto and any counsel or
      accountant retained by such Stockholders or underwriters, all relevant
      financial and other records, pertinent corporate documents and properties
      of the Company and cause the respective officers, directors and employees
      of the Company to supply all information reasonably requested by any such
      representative, underwriter, counsel or accountant in connection with a
      registration pursuant hereto; provided, however, that, with respect to
      records, documents or information which the Company determines, in good
      faith, to be confidential and as to which the Company notifies such
      representatives, underwriters, counsel or accountants in writing of such
      confidentiality, such representatives, underwriters, counsel or
      accountants shall not disclose such records, documents or information
      unless (i) the release of such records, documents or information is
      ordered pursuant to a subpoena or other order from a court of competent
      jurisdiction, (ii) such records, documents or information have previously
      been generally made available to the public, or (iii) the disclosure of
      such records, documents or information is necessary, in the written
      opinion of outside legal counsel, to avoid or correct a material
      misstatement or omission in the registration statement and then only after
      reasonable request has been made to the Company to make

                                      -32-
<PAGE>
      such disclosure and the Company has denied such request. Each selling
      Stockholder of such Registrable Securities agrees that information
      obtained by it as a result of such inspections shall be deemed
      confidential and shall not be used by it as the basis for any market
      transactions in the securities of the Company or its Affiliates (or for
      such Stockholder's business purposes or for any reason other than in
      connection with a registration hereunder) unless and until such
      information is made generally available (other than by such Stockholder or
      where such Stockholder knows that such information became publicly
      available as a result of a breach of any confidentiality arrangement) to
      the public. Each selling Stockholder of such Registrable Securities
      further agrees that it will, upon learning that disclosure of such records
      is sought, give notice to the Company and allow the Company, at its
      expense, to undertake appropriate action to prevent disclosure of the
      records deemed confidential;

            (j)   permit any beneficial owner of Registrable Securities who, in
      the sole judgment, exercised in good faith, of such holder, might be
      deemed to be a controlling Person of the Company, to participate in the
      preparation of such registration or comparable statement and to require
      the insertion therein of material, furnished to the Company in writing,
      that in the judgment of such holder, as aforesaid, should be included; and

            (k)   make reasonably available its employees and personnel and
      otherwise provide reasonable assistance to the underwriters (taking into
      account the needs of the Company's businesses and the requirements of the
      marketing process) in the marketing of Registrable Securities in any
      underwritten offering.

            The Company may require each seller of Registrable Securities as to
which any registration is being effected to furnish the Company such information
regarding such seller and the distribution of such securities as the Company may
from time to time reasonably request in writing. The Company shall not be
required to register or qualify any Registrable Securities covered by such
registration statement under any state securities or "blue sky" laws of such
jurisdictions other than as it deems necessary in connection with the chosen
method of distribution or to take any other actions or do any other things other
than those it reasonably deems necessary or advisable to consummate such
distribution, and the Company shall not for any such purpose be required to
qualify generally to do business as a foreign corporation in any jurisdiction
wherein it would not otherwise be obligated to be so qualified, to subject
itself to taxation in any such jurisdiction or to consent to general service of
process in any such jurisdiction.

            Each beneficial owner of Registrable Securities agrees that upon
receipt of any notice from the Company of the happening of any event of the kind
described in clauses (d)(ii) and (d)(iii) above, such beneficial owner will
forthwith discontinue disposition of Registrable Securities pursuant to the
registration statement covering such Registrable Securities until such
beneficial owner's receipt of the copies of the supplemented or amended
prospectus contemplated by clause (d) above, and, if so directed by the Company,
such beneficial owner will deliver to the Company (at the Company's expense) all
copies, other than permanent file copies then in such beneficial owner's
possession, of the prospectus covering such Registrable Securities that was in
effect prior to such amendment or supplement.

                                      -33-
<PAGE>
      3.3   Indemnification.

            (a)   In the event of any registration of any Registrable Securities
pursuant to this Article III, the Company will, and hereby does, indemnify and
hold harmless, to the fullest extent permitted by law, the seller of any
Registrable Securities covered by such registration statement, its directors,
officers, fiduciaries, employees and stockholders or members or general and
limited partners (and the directors, officers, fiduciaries, employees and
stockholders or members or general and limited partners thereof), each other
Person who participates as an underwriter or a qualified independent
underwriter, if any, in the offering or sale of such securities, each director,
officer, fiduciary, employee and stockholder or general and limited partner of
such underwriter or qualified independent underwriter, and each other Person
(including any such Person's directors, officers, fiduciaries, employees and
stockholders or members or general and limited partners), if any, who controls
such seller or any such underwriter or qualified independent underwriter, within
the meaning of the Securities Act, against any and all Claims in respect thereof
and expenses (including reasonable fees and expenses of counsel and any amounts
paid in any settlement effected with the Company's consent, which consent shall
not be unreasonably withheld or delayed) to which each such indemnified party
may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such Claims or expenses arise out of or are based upon any of the
following actual or alleged statements, omissions or violations (each, a
"Violation"): (i) any untrue statement or alleged untrue statement of a material
fact contained in any registration statement under which such securities were
registered pursuant to this Agreement under the Securities Act or the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, (ii) any untrue
statement or alleged untrue statement of a material fact contained in any
preliminary, final or summary prospectus or any amendment or supplement thereto,
together with the documents incorporated by reference therein, or the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading, or (iii) any violation
by the Company of any federal, state or common law rule or regulation applicable
to the Company and relating to action required of or inaction by the Company in
connection with any such registration, and the Company will reimburse any such
indemnified party for any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such Claim
as such expenses are incurred; provided, however, that the Company shall not be
liable to any such indemnified party in any such case to the extent such Claim
or expense arises out of or is based upon any Violation that occurs in reliance
upon and in conformity with written information furnished to the Company or its
representatives by or on behalf of such indemnified party expressly stating that
such information is for use therein.

            (b)   Each holder of Registrable Securities that are included in the
securities as to which any Demand Registration or Piggyback Registration is
being effected (and, if the Company requires as a condition to including any
Registrable Securities in any registration statement filed in connection with
any Demand Registration or Piggyback Registration, any underwriter and qualified
independent underwriter, if any) shall, severally and not jointly, indemnify and
hold harmless (in the same manner and to the same extent as set forth in Section
3.3 (a)), to the fullest extent permitted by law, the Company, its directors,
officers, fiduciaries,

                                      -34-
<PAGE>
employees and stockholders (and the directors, officers, fiduciaries, employees
and stockholders or members or general and limited partners thereof) and each
Person (including any such Person's directors, officers, fiduciaries, employees
and stockholders or members or general and limited partners), if any,
controlling the Company within the meaning of the Securities Act and all other
prospective sellers and their directors, officers, fiduciaries, employees and
stockholders or general and limited partners and respective controlling Persons
(including any such Person's directors, officers, fiduciaries, employees and
stockholders or members or general and limited partners) against any and all
Claims and expenses (including reasonable fees and expenses of counsel and any
amounts paid in any settlement effected with the consent of the indemnifying
party, which consent shall not be unreasonably withheld or delayed) to which
each such indemnified party may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such Claims or expenses arise out of or
are based upon any Violation that occurs in reliance upon and in conformity with
written information furnished to the Company or its representatives by or on
behalf of such holder or underwriter or qualified independent underwriter, if
any, expressly stating that such information is for use in connection with any
registration statement, preliminary, final or summary prospectus or amendment or
supplement or document incorporated by reference into any of the foregoing;
provided, however, that the aggregate amount which any such holder, underwriter
or qualified independent underwriter shall be required to pay pursuant to this
Section 3.3(b) and Sections 3.3(c) and 3.3(e) shall be limited to (i) in the
case of any such holder, the amount of the gross proceeds received by such
holder upon the sale of the Registrable Securities pursuant to the registration
statement giving rise to such claim and (ii) in the case of any such underwriter
or qualified independent underwriter, the amount of the total sales price of the
Registrable Securities sold through or by it pursuant to the registration
statement giving rise to such claim.

            (c)   Indemnification similar to that specified in Sections 3.3(a)
and 3.3(b) (with appropriate modifications) shall be given by the Company and
each seller of Registrable Securities (and, if the Company requires as a
condition to including any Registrable Securities in any registration statement
filed in connection with any Demand Registration or Piggyback Registration, any
underwriter and qualified independent underwriter, if any) with respect to any
required registration or other qualification of securities under any state
securities or "blue sky" laws.

            (d)   Any Person entitled to indemnification under this Agreement
shall notify promptly the indemnifying party in writing of the commencement of
any action or proceeding with respect to which a claim for indemnification may
be made pursuant to this Section 3.3, but the failure of any indemnified party
to provide such notice shall not relieve the indemnifying party of its
obligations under the preceding paragraphs of this Section 3.3, except to the
extent the indemnifying party is prejudiced thereby and shall not relieve the
indemnifying party from any liability that it may have to any indemnified party
otherwise than under this Section 3.3. In case any action or proceeding is
brought against an indemnified party and it shall notify the indemnifying party
of the commencement thereof, the indemnifying party shall be entitled to
participate therein and, unless in the reasonable opinion of outside counsel to
the indemnified party a conflict of interest between such indemnified and
indemnifying parties may exist in respect of such claim, to assume the defense
thereof jointly with any other indemnifying party similarly notified, to the
extent that it chooses, with counsel reasonably satisfactory to such indemnified
party, and after notice from the indemnifying party to such indemnified party
that it

                                      -35-
<PAGE>
so chooses, the indemnifying party shall not be liable to such indemnified party
for any legal or other expenses subsequently incurred by such indemnified party
in connection with the defense thereof other than reasonable costs of
investigation; provided, however, that (i) if the indemnifying party fails to
take reasonable steps necessary to defend diligently the action or proceeding
within 20 days after receiving notice from such indemnified party that the
indemnified party believes it has failed to do so; or (ii) if such indemnified
party who is a defendant in any action or proceeding that is also brought
against the indemnifying party reasonably shall have concluded that there may be
one or more legal defenses available to such indemnified party which are not
available to the indemnifying party; or (iii) if representation of both parties
by the same counsel is otherwise inappropriate under applicable standards of
professional conduct, then, in any such case, the indemnified party shall have
the right to assume or continue its own defense as set forth above (but with no
more than one firm of counsel for all indemnified parties in each jurisdiction,
except to the extent any indemnified party or parties reasonably shall have
concluded that there may be legal defenses available to such party or parties
that are not available to the other indemnified parties or to the extent
representation of all indemnified parties by the same counsel is otherwise
inappropriate under applicable standards of professional conduct) and the
indemnifying party shall be liable for any expenses therefor. No indemnifying
party shall, without the written consent of the indemnified party, which consent
shall not be unreasonably withheld, effect the settlement or compromise of, or
consent to the entry of any judgment with respect to, any pending or threatened
action or claim in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified party is an actual or potential
party to such action or claim) unless such settlement, compromise or judgment
(A) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim and (B) does not include a
statement as to or an admission of fault, culpability or a failure to act, by or
on behalf of any indemnified party.

            (e)   If for any reason the foregoing indemnity is unavailable or is
insufficient to hold harmless an indemnified party under Sections 3.3(a), 3.3(b)
or 3.3(c), then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of any Claim in such proportion as
is appropriate to reflect the relative fault of the indemnifying party on the
one hand and the indemnified party on the other hand from the relevant offering
of securities. If, however, the allocation provided in the immediately preceding
sentence is not permitted by applicable law, or if the indemnified party failed
to give the notice required by Section 3.3(d) above and the indemnifying party
is prejudiced thereby, then each indemnifying party shall contribute to the
amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative fault of but also the relative
benefits received by the indemnifying party, on the one hand, and the
indemnified party, on the other hand, as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among
other things, whether the Violation relates to information supplied by the
indemnifying party or the indemnified party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
Violation. The parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 3.3(e) were to be determined by pro rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in the preceding sentences of this
Section 3.3(e). The amount paid or payable in respect of any Claim shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such Claim.
No Person guilty of fraudulent

                                      -36-
<PAGE>
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation. Notwithstanding anything in this Section 3.3(e) to
the contrary, no indemnifying party (other than the Company) shall be required
pursuant to this Section 3.3(e) to contribute any amount in excess of (i) in the
case of an indemnifying party that is a holder of Registrable Securities, the
gross proceeds received by such indemnifying party from the sale of Registrable
Securities in the offering to which the losses, claims, damages or liabilities
of the indemnified parties relate, or (ii) in the case of an indemnifying party
that is an underwriter or a qualified independent underwriter, the amount of the
total sales price of the Registrable Securities sold through or by it in the
offering to which the losses, claims, damages or liabilities of the indemnified
parties relate, less, in any such case referred to in clauses (i) and (ii)
above, the amount of all indemnification and contribution payments made pursuant
to Sections 3.3(b) and (c) and this Section 3.3(e), as the case may be, in
connection with such offering.

            (f)   The indemnity agreements contained herein shall be in addition
to any other rights to indemnification or contribution that any indemnified
party may have pursuant to law or contract and shall remain operative and in
full force and effect regardless of any investigation made or omitted by or on
behalf of any indemnified party and shall survive the transfer of the
Registrable Securities by any such party.

            (g)   The indemnification and contribution required by this Section
3.3 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or expense,
loss, damage or liability is incurred.

            (h)   In connection with underwritten offerings, the Company will
use reasonable best efforts to negotiate terms of indemnification that are
reasonably favorable to the various sellers pursuant thereto, as appropriate
under the circumstances.

      3.4   Holdback Agreement.

            (a)   If requested in writing by the Company or the underwriter of
any underwritten offering affording Stockholders registration rights pursuant to
Section 3.1 (whether or not some or all of such Stockholder's Registrable
Securities are subject to a cutback pursuant to Section 3.1.4), including,
without limitation, an IPO, each Stockholder agrees not to effect any public
sale or distribution, including any sale pursuant to Rule 144, of any
Registrable Securities or any other equity security of the Company or of any
security convertible into or exchangeable or exercisable for any equity security
of the Company (in each case, other than as part of such underwritten public
offering) within 14 days before or 180 days after the effective date of a
registration statement affording Stockholders registration rights pursuant to
Section 3.1 (including where subject to a cutback pursuant to Section 3.1.4), or
for such shorter period as the sole or lead managing underwriter or the Company
shall request, in any such case, unless consented to by such underwriter or the
Company, as applicable. Any restriction imposed pursuant to this Section 3.4(a)
shall be imposed on equal terms with respect to FPSH, on the one hand, and the
Romo Persons and Romo Transferees, on the other hand.

            (b)   If requested in writing by the underwriter of any offering in
connection with an underwritten Demand Registration, the Company agrees not to
effect any public sale or

                                      -37-
<PAGE>
distribution (other than public sales or distributions solely by and for the
account of the Company of securities issued (i) pursuant to any employee or
director benefit or similar plan or any dividend reinvestment plan or (ii) in
any acquisition by the Company) of any Registrable Securities or any other
equity security of the Company or of any security convertible into or
exchangeable or exercisable for any equity security of the Company (in each
case, other than as part of such underwritten public offering), within 14 days
before or 180 days after the effective date of a registration statement filed in
connection with a Demand Registration, or for such shorter period as the sole or
lead managing underwriter shall request, in any such case, unless consented to
by such underwriter.

      3.5   Deferral. Notwithstanding anything to the contrary contained herein,
the Company shall not be obligated to prepare and file, or cause to become
effective, any registration statement pursuant to Section 3.1.2 at any time
when, in the good faith judgment of the Board of Directors of the Company, the
filing thereof at the time requested or the effectiveness thereof after filing
should be delayed to permit the Company to include in the registration statement
the Company's financial statements (and any required audit opinion thereon) for
the then immediately preceding fiscal year or fiscal quarter, as the case may
be. The filing of a registration statement by the Company cannot be deferred
pursuant to the provisions of the immediately preceding sentence beyond the time
that such financial statements (or any required audit opinion thereon) would be
required to be filed with the SEC as part of the Company's Annual Report on Form
10-K or Quarterly Report on Form 10-Q, as the case may be, if the Company were
then obligated to file such reports. Notwithstanding anything to the contrary
contained herein, the Company shall not be obligated to file a registration
statement, or cause a registration statement previously filed pursuant to
Section 3.1 to become effective, and may suspend sales by the holders of
Registrable Securities under any registration that has previously become
effective, at any time when, in the good faith judgment of the Board of
Directors of the Company, it reasonably believes that the effectiveness of such
registration statement or the offering of securities pursuant thereto would
materially adversely affect a pending or proposed acquisition, merger,
recapitalization, consolidation, reorganization or similar transaction or
negotiations, discussions or pending proposals with respect thereto; provided,
however, that deferrals pursuant to this sentence shall not exceed, in the
aggregate, 180 days in any calendar year. The filing of a registration
statement, or any amendment or supplement thereto, by the Company cannot be
deferred, and the rights of holders of Registrable Securities to make sales
pursuant to an effective registration statement cannot be suspended, pursuant to
the provisions of the immediately preceding sentence for more than 30 days after
the abandonment or the consummation of any of the foregoing proposals or
transactions, unless invoked under new circumstances.

                                   ARTICLE IV

                    MANAGEMENT INVESTOR PUT AND CALL RIGHTS

      4.1   Call Rights. If, prior to the consummation of an IPO, a Management
Investor dies or the Management Investor's employment by the Company or, if
applicable, an Affiliate thereof, terminates for any reason (including due to a
Permanent Disability), the Company shall

                                      -38-
<PAGE>
have the right (a "Call Right"), at its election, subject to different or
additional requirements, if any, of the state securities laws, rules or
regulations pursuant to which particular shares of Common Stock were qualified
or exempted from qualification, to purchase at any time or from time to time,
all or any part of the Management Investor's shares of Common Stock (including
any shares held by its Management Transferees) (the shares so purchased, the
"Called Shares"), provided, however, that in no event shall a Call Right with
respect to Called Shares be exercised after the date which is nine (9) months
after such Management Investor's death or the termination of such Management
Investor's employment with the Company or, if applicable, an Affiliate thereof.
The price to be paid for any Called Shares shall be equal to (a) in the case of
any termination other than by the Company or, if applicable, an Affiliate
thereof for Cause, the aggregate Fair Market Value of such Called Shares
determined as of the date of exercise of the Call Right with respect to such
Called Shares, and (b) in the case of termination by the Company or, if
applicable, an Affiliate thereof for Cause, the lower of (1) the aggregate Fair
Market Value of such Called Shares determined as of the date of exercise of the
Call Right with respect to such Called Shares, and (2) the sum of each of the
products of (x) the number of Called Shares having the same Cost Per Share
(subject to adjustment to reflect any adjustments to the Common Stock made to
reflect any merger, reorganization, consolidation, recapitalization, spin-off,
stock dividend, stock split, extraordinary distribution with respect to the
Common Stock or other change in corporate structure affecting the Common Stock,
as the Board of Directors of the Company reasonably shall deem fair and
appropriate) and (y) such Cost Per Share. The Company shall pay the purchase
price for the Common Stock repurchased pursuant to Section 4.1 in cash to the
extent that the Company is permitted or required to purchase such shares for
cash (under both applicable law and the Company's and its Affiliates'
indebtedness and contractual arrangements and agreements). The Company shall
fund any amount not so permitted to be paid in cash with a Buy-Out Note. A
Supermajority of the Board may, in its discretion, assign the rights and
obligations of the Company under Section 4.1 to any other Person, but no such
assignment shall relieve the Company of its obligations hereunder to the extent
not satisfied by such assignee.

      4.2   Put Rights. Subject to any waiver of the rights provided in this
Section 4.2 contained in the Employment Agreement or any analogous provision of
any employment, compensation or benefit agreement or arrangement, if any, of any
Management Investor, if, prior to the consummation of an IPO, a Management
Investor dies or the Management Investor's employment by the Company or, if
applicable, an Affiliate thereof, is terminated by the Company or, if
applicable, an Affiliate thereof, without Cause or is terminated due to a
Permanent Disability, or with Good Reason, the Management Investor or the
Management Investor's legal representative or trustee, as the case may be, shall
have the right (a "Put Right"), to require the Company to purchase all (but not
less than all) of the Management Investor's Common Stock (including any shares
held by its Management Transferees) (such shares on each particular Put Right
exercise date, the "Put Shares") and all (but not less than all) of the
Management Investor's Options (such Options on each particular Put Right
exercise date, the "Put Options") provided that in no event shall a Put Right be
exercised after the date which is six (6) months after such Management
Investor's death or the termination of such Management Investor's employment
with the Company or, if applicable, an Affiliate thereof. The price to be paid
for any Put Shares shall be equal to the aggregate Fair Market Value of such Put
Shares determined as of the date of exercise of the Put Right with respect to
such Put Shares. The price

                                      -39-
<PAGE>
to be paid for any Put Option shall be equal to the aggregate Fair Market Value
of the shares of Common Stock (determined as of the date of exercise of the Put
Right with respect to such Put Option) underlying such Put Option, less (i) the
product of the per share exercise price and the number of shares subject to the
Put Option, and (ii) applicable withholdings. The Company shall pay the purchase
price (less exercise price and applicable withholdings with respect to Options)
for the Common Stock and the Options repurchased pursuant to this Section 4.2 in
cash to the extent that the Company is permitted or required to purchase such
shares for cash (under both applicable law and the Company's and its Affiliates'
indebtedness and contractual arrangements and agreements). The Company shall
fund any amount not so permitted to be paid in cash with a Buy-Out Note. A
Supermajority of the Board may, in its discretion, assign the rights and
obligations of the Company under this Section 4.2 to any other Person, but no
such assignment shall relieve the Company of its obligations hereunder to the
extent not satisfied by such assignee.

      4.3   Withholdings. The Company may withhold from any amounts payable
under this Agreement such Federal, state, local or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation, or may
permit a Management Investor to elect to pay the Company any such required
withholding taxes. If such Management Investor so elects, the payment by such
Management Investor of such taxes shall be a condition to the receipt of amounts
payable to such Management Investor under this Agreement. The Company shall, to
the extent permitted or required by law, have the right to deduct any such taxes
from any payment otherwise due to such Management Investor.

                                   ARTICLE V

                              CORPORATE GOVERNANCE

      5.1   Business Plans.

            5.1.1 2004 Annual Business Plan. Prior to the Effective Date, an
individual appointed by Mr. Romo (the "Romo Representative") and the FPSH
Representative shall work together to mutually approve and adopt an Annual
Business Plan for fiscal year 2004 (and, to the extent applicable, for any
period following the Effective Date remaining in fiscal year 2003 (such period,
the "2003 Stub Period")). If, prior to the Effective Date, each of the Romo
Representative and the FPSH Representative mutually approves and adopts an
Annual Business Plan for fiscal year 2004 (and, to the extent applicable, for
the 2003 Stub Period), such plan shall become an Approved Annual Business Plan
for such period for purposes of this Agreement. If the Romo Representative and
the FPSH Representative fail to adopt an Annual Business Plan for fiscal year
2004 (and, to the extent applicable, for the 2003 Stub Period) prior to the
Effective Date, an Annual Business Plan for fiscal year 2004 (and, to the extent
applicable, for the 2003 Stub Period) may thereafter be approved and adopted as
follows:

(a)   During (i) such time as Mr. Romo has the right to nominate a majority of
the members of the Board of Directors of the Company, and (ii) such time as FPSH
has the right to nominate a

                                      -40-
<PAGE>
majority of the members of the Board of Directors of the Company and prior to
the occurrence of a Target Default, by the approval of a Supermajority of the
Board.

(b)   During such time as FPSH has the right to nominate a majority of the
members of the Board of Directors of the Company and following the occurrence of
a Target Default, subject to Section 5.3.2 (a), (b) and (c) of this Agreement,
by the approval of the Board of Directors of the Company.

If an Annual Business Plan for fiscal year 2004 (and, to the extent applicable,
for the 2003 Stub Period) is approved and adopted in accordance with this
Section 5.1.l, such plan shall become an Approved Annual Business Plan for such
period for purposes of this Agreement. If an Annual Business Plan for fiscal
year 2004 (and, to the extent applicable, for the 2003 Stub Period) is not
approved and adopted in accordance with this Section 5.1.1, the Company will
operate without any Annual Business Plan during such fiscal year in accordance
with Section 5.2 of this Agreement.

            5.1.2 Initial Three-Year Business Plan. Prior to the Effective Date,
the Romo Representative and the FPSH Representative shall work together to
mutually approve and adopt a Three-Year Business Plan for fiscal years 2004,
2005 and 2006 (and, to the extent applicable, for the 2003 Stub Period). If,
prior to the Effective Date, each of the Romo Representative and the FPSH
Representative mutually approves and adopts a Three-Year Business Plan for
fiscal years 2004, 2005 and 2006 (and, to the extent applicable, for the 2003
Stub Period), such plan shall become the Approved Three-Year Business Plan for
such period for purposes of this Agreement. If the Romo Representative and the
FPSH Representative fail to adopt a Three-Year Business Plan for fiscal years
2004, 2005 and 2006 (and, to the extent applicable, for the 2003 Stub Period)
prior to the Effective Date, a Three-Year Business Plan for fiscal years 2004,
2005 and 2006 (and, to the extent applicable, for the 2003 Stub Period) may
thereafter be approved and adopted as follows:

            (a)   During (i) such time as Mr. Romo has the right to nominate a
majority of the members of the Board of Directors of the Company, and (ii) such
time as FPSH has the right to nominate a majority of the members of the Board of
Directors of the Company and prior to the occurrence of a Target Default, by the
approval of a Supermajority of the Board.

            (b)   During such time as FPSH has the right to nominate a majority
of the members of the Board of Directors of the Company and following the
occurrence of a Target Default, subject to Section 5.3.2 (a), (b) and (c) of
this Agreement, by the approval of the Board of Directors of the Company.

If a Three-Year Business Plan for fiscal years 2004, 2005 and 2006 (and, to the
extent applicable, for the 2003 Stub Period) is approved and adopted in
accordance with this Section 5.1.2, such plan shall become an Approved
Three-Year Business Plan for such period for purposes of this Agreement. If a
Three-Year Business Plan for fiscal years 2004, 2005 and 2006 (and, to the
extent applicable, for the 2003 Stub Period) is not approved and adopted in
accordance with this Section 5.1.2, the Company will operate without any
Three-Year Business Plan during such period in accordance with Section 5.2 of
this Agreement. Each of the Romo Representative, the FPSH Representative, the
Romo Designees and the FPSH Designees shall use good faith efforts to cause the
adoption and approval of a Three-Year Business Plan for fiscal

                                      -41-
<PAGE>
years 2004, 2005 and 2006 (and, to the extent applicable, for the 2003 Stub
Period). None of the foregoing Persons shall unreasonably withhold approval of a
Three-Year Business Plan.

            5.1.3 Annual Business Plans - Romo Control. During such time as Mr.
Romo has the right to nominate a majority of the members of the Board of
Directors of the Company, with respect to each of fiscal years 2005, 2006, 2007
and 2008, the following principles shall apply with respect to the approval and
adoption of an Annual Business Plan: (a) not less than forty-five (45) days
before the start of each fiscal year of the Company, management shall submit to
the Board of Directors of the Company a proposed Annual Business Plan for such
fiscal year; (b) the approval and adoption of an Annual Business Plan shall
require the approval of a Supermajority of the Board, provided, however, that if
the Company has not failed to achieve the Targets for any of the preceding four
fiscal quarters, and if the proposed Annual Business Plan is for the next fiscal
year and reasonably projects that the Company will achieve the Targets for each
fiscal quarter covered by the proposed Annual Business Plan, then the FPSH
Designees shall not unreasonably withhold approval of such proposed Annual
Business Plan; (c) if a Supermajority of the Board approves an Annual Business
Plan, the plan shall become the Approved Annual Business Plan for such fiscal
year for purposes of this Agreement; and (d) if a Super-majority of the Board
does not approve an Annual Business Plan for a particular fiscal year, the
Company will operate without any Annual Business Plan during such fiscal year in
accordance with Section 5.2.1 of this Agreement.

            5.1.4 Annual Business Plans - FPSH Control. During such time as FPSH
has the right to nominate a majority of the members of the Board of Directors of
the Company, with respect to each of fiscal years 2005, 2006, 2007 and 2008, the
following principles will apply with respect to the approval and adoption of an
Annual Business Plan:

(a)   Pre-Target Default. Not less than forty-five (45) days before the start of
each fiscal year of the Company, management shall submit to the Board of
Directors of the Company a proposed Annual Business Plan for such fiscal year.
Prior to the occurrence of a Target Default, the adoption of an Annual Business
Plan shall require the approval of a Supermajority of the Board. Prior to the
occurrence of a Target Default, if a Supermajority of the Board approves an
Annual Business Plan, the plan shall become the Approved Annual Business Plan
for such fiscal year for purposes of this Agreement. Prior to the occurrence of
a Target Default, if a Supermajority of the Board does not approve an Annual
Business Plan for a particular fiscal year, the Company will operate without any
Annual Business Plan during such fiscal year in accordance with Section 5.2.2 of
this Agreement.

(b)   Post-Target Default. Not less than forty-five (45) days before the start
of each fiscal year of the Company, management shall submit to the Board of
Directors of the Company a proposed Annual Business Plan for such fiscal year.
Following the occurrence of a Target Default, the adoption of an Annual Business
Plan shall require the approval of the Board of Directors of the Company,
provided, however, that any item contained in a proposed Annual Business Plan
that would require approval pursuant to Section 5.3.2(a), (b) or (c) of this
Agreement shall require the approval of Mr. Romo, provided, further, however,
that the foregoing shall not prevent the Board of Directors of the Company from
approving and adopting an Annual Business Plan with respect to all matters other
than those specified by Sections 5.3.2(a), (b) and (c). Following the occurrence
of a Target Default, if the Board of Directors of the Company approves an Annual

                                      -42-
<PAGE>
Business Plan, the plan shall become the Approved Annual Business Plan for such
fiscal year for purposes of this Agreement.

            5.1.5 Amendments.

            (a)   During (i) such time as Mr. Romo has the right to nominate a
majority of the members of the Board of Directors of the Company, and (ii) such
time as FPSH has the right to nominate a majority of the members of the Board of
Directors of the Company and prior to the occurrence of a Target Default, an
Approved Annual Business Plan or an Approved Three-Year Business Plan may be
amended (including, with respect to an Approved Three-Year Business Plan, by
extending the fiscal years covered by such Approved Three-Year Business Plan) by
the approval of a Supermajority of the Board, provided, however, that no such
approval shall be required to decrease or shift financial allocations,
commitments or expenditures in an amount equal to or less than $250,000
individually, or $1,000,000 in the aggregate. An Approved Annual Business Plan
or Approved Three-Year Business Plan as amended in accordance with this Section
5.1.5(a) shall be the Approved Annual Business Plan or Approved Three-Year
Business Plan, as applicable, for purposes of this Agreement for the period
covered by such plan.

            (b)   During such time as FPSH has the right to nominate a majority
of the members of the Board of Directors of the Company and following the
occurrence of a Target Default, an Approved Annual Business Plan or an Approved
Three-Year Business Plan may be amended (including, with respect to an Approved
Three-Year Business Plan, by extending the fiscal years covered by such Approved
Three-Year Business Plan) by the approval of the Board of Directors, provided,
however, that any item contained in a proposed amendment that would require
approval pursuant to Section 5.3.2(a), (b) or (c) of this Agreement shall
require the approval of Mr. Romo, provided, further, however, that the foregoing
shall not prevent the Board of Directors of the Company from approving and
adopting an amendment with respect to an Approved Annual Business Plan or an
Approved Three-Year Business Plan with respect to all matters other than those
contemplated by Sections 5.3.2(a), (b) and (c). An Approved Annual Business Plan
or Approved Three-Year Business Plan as amended in accordance with this Section
5.1.5(b) shall be the Approved Annual Business Plan or Approved Three-Year
Business Plan, as applicable, for purposes of this Agreement for the period
covered by such plan.

            5.1.6 Deadlock Mechanics. In the event that the adoption of an
Annual Business Plan or a Three-Year Business Plan or the amendment of an
Approved Annual Business Plan or an Approved Three-Year Business Plan requires
the approval of a Supermajority of the Board and such approval is not obtained
upon initial presentation of such approval item to the Board of Directors of the
Company, the following procedures shall apply: Within, twenty days following the
submission of such approval item to the Board of Directors of the Company,
management shall consult with and take into account the objections of any member
of the Board of Directors of the Company and shall attempt to modify any
proposed Annual Business Plan, proposed Three-Year Business Plan, proposed
amendment to an Approved Annual Business Plan or proposed amendment to an
Approved Three-Year Business Plan, as applicable, in an effort to secure the
approval of a Super-majority of the Board. If, approval by a Supermajority of
the Board is not thereafter obtained, within 30 days after the initial
submission of the approval item, the FPSH Representative and the Romo
Representative shall hold discussions to attempt to resolve any remaining
differences. Whether or not approval

                                      -43-
<PAGE>
by a Supermajority of the Board is thereafter obtained, the Company will operate
in accordance with Section 5.2 of this Agreement.

            5.1.7 Good Faith Efforts. Each of the Romo Representative, the FPSH
Representative, the Romo Designees and the FPSH Designees shall use good faith
efforts in connection with the proposal, adoption and approval procedures
described in this Section 5.1.

      5.2   Board of Directors.

            5.2.1 Initial Composition. Following the Effective Date, the Board
of Directors of the Company shall consist of seven members. Except as otherwise
provided in Section 5.2.2, Mr. Romo shall have the right to nominate a majority
of the members of the Board of Directors of the Company, as described herein,
which initially shall include Mr. Romo (Chairman of the Board of Directors of
the Company and Chief Executive Officer of the Company) and three other members
to be designated by Mr. Romo (any member of the Board of Directors of the
Company designated by Mr. Romo, including Mr. Romo, a "Romo Designee"). So long
as Mr. Romo has the right to nominate a majority of the members of the Board of
Directors of the Company, FPSH shall have the right to nominate a number of
directors equal to the number nominated by Mr. Romo minus one and such number
shall initially include Mr. W. Dexter Paine, III as Vice Chairman of the Board
of Directors of the Company and two other members to be designated by FPSH (any
member of the Board of Directors of the Company designated by FPSH, including
Mr. Paine, an "FPSH Designee"). In addition, FPSH and Mr. Romo may agree to
nominate additional mutually agreeable independent members of the Board of
Directors of the Company, provided, however, that, except as otherwise provided
in Section 5.2.2, Mr. Romo shall be permitted to nominate additional directors
in order to maintain a majority of the Board of Directors of the Company.
Subject to Section 5.3.1, so long as Mr. Romo has the right to nominate a
majority of the members of the Board of Directors of the Company, the Board of
Directors of the Company shall be entitled to operate the business of the
Company in accordance with the following principles:

            (a)   if, during a particular fiscal year, there is an Approved
Annual Business Plan, the Board of Directors of the Company shall be entitled to
operate the business of the Company in accordance with such Approved Annual
Business Plan;

            (b)   if, during any particular fiscal year, there is no Approved
Annual Business Plan, but there is an Approved Three-Year Business Plan covering
such fiscal year, then, during any such fiscal year, the Board of Directors of
the Company shall be entitled to operate the business of the Company in
accordance with the Approved Three-Year Business Plan, provided, however, that
any single capital expenditure equal to or greater than $500,000 or any series
of related capital expenditures equal to or greater than $500,000 shall require
the approval of a Supermajority of the Board; and

            (c)   if, during any fiscal year, there is no Approved Annual
Business Plan and no Approved Three-Year Business Plan, all decisions regarding
the operation of the business shall be subject to approval by a Supermajority of
the Board.

                                      -44-
<PAGE>
            5.2.2 Default Composition. If (a) Mr. Romo or the Company materially
breaches this Agreement (and such breach is not cured within ten Business Days
after the date Mr. Romo received notice of the breach); (b) a Target Default
occurs, (c) Mr. Romo is no longer employed as Chief Executive Officer of the
Company or is no longer performing for the Company the customary functions of a
chief executive officer, or (d) the Romo Designees or the senior executive
management of the Company fail, within twenty Business Days after receiving
notice of such failure, to enforce in good faith the Corporate Policies and
Procedures (it being understood that so long as the Romo Designees and the
senior executive management use good faith efforts to enforce the Corporate
Policies and Procedures, the failure of an employee of the Company to comply
with such Corporate Policies and Procedures shall not, by itself, result in FPSH
receiving the rights and privileges associated with majority control), FPSH
shall thereafter have all customary rights and privileges associated with
majority control (including the right to choose executive management of the
Company) and will have the right to nominate a majority of the members of the
Board of Directors of the Company (including the Chairman), provided that Mr.
Romo shall continue to have the right to nominate at least three members of the
Board of Directors of the Company. In addition, FPSH and Mr. Romo may agree to
nominate additional mutually agreeable independent members of the Board of
Directors of the Company, provided, however, that FPSH shall be permitted to add
additional directors in order to maintain a majority of the Board of Directors
of the Company. Subject to Sections 5.3.2 and 5.3.3, so long as FPSH has the
right to nominate a majority of the members of the Board of Directors of the
Company, the Board of Directors of the Company shall be entitled to operate the
business of the Company in accordance with the following principles:

            (a)   if, during a particular fiscal year, there is an Approved
Actual Business Plan, the Board of Directors of the Company shall be entitled to
operate the business of the Company in accordance with such Approved Actual
Business Plan;

            (b)   if, during any particular fiscal year, there is no Approved
Actual Business Plan, but there is an Approved Three-Year Business Plan covering
such fiscal year, then, during any such fiscal year, the Board of Directors of
the Company shall be entitled to operate the business of the Company in
accordance with the Approved Three-Year Business Plan, provided, however, that
any single capital expenditure equal to or greater than $500,000 or any series
of related capital expenditures equal to or greater than $500,000 shall require
the approval of the Board of Directors of the Company, provided, further,
however, that the first proviso shall not apply following the occurrence of a
Target Default; and

            (c)   if, during any particular fiscal year, there is no Approved
Actual Business Plan and no Approved Three-Year Business Plan, all decisions
regarding the operation of the business shall be subject to approval by the
Board of Directors of the Company.

            5.2.3 Committee Designation. The parties shall take all necessary
action as is required under applicable law to assure that each Committee of the
Board of Directors of the Company, including an Audit Committee, Compensation
Committee and Executive Committee shall be comprised as follows: (a) unless Mr.
Romo and Mr. Paine mutually agree otherwise, the Executive Committee shall
consist of two individuals, including (i) the chief executive officer of the
Company, and (ii) Mr. Saul Fox or Mr. Paine; and (b) each of the other
Committees of the Board of Directors of the Company shall consist of three
individuals, including one FPSH Designee, one Romo Designee and one individual
mutually agreed upon by FPSH and Mr.

                                      -45-
<PAGE>
Romo, provided, however, that the Compensation Committee shall not include any
members of the Company's executive management. During the intervals between
meetings of the Board of Directors of the Company, the Executive Committee shall
have and may exercise all the powers and authority of the Board of Directors of
the Company in the management of the business and the affairs of the Company,
except as otherwise provided by law, the Certificate, the Bylaws of the Company,
or this Agreement.

            5.2.4 Voting Obligation. Each of the Stockholders entitled to vote
in the election of directors to the Board of Directors of the Company agrees
that it shall vote its Common Stock or execute consents, as the case may be, and
take all other necessary action (including causing the Company to call a special
meeting of Stockholders) in order to ensure that the designees that each of Mr.
Romo and FPSH is entitled to nominate to the Board of Directors of the Company
as set forth in this Section 5.2 are so elected.

      5.3   Approval Rights.

            5.3.1 FPSH Approval Rights. At any time that FPSH does not have the
right to nominate a majority of the Board of Directors of the Company, in
addition to approval by a majority of the Board of Directors of the Company, the
approval of FPSH shall be required to approve any of the following actions by
the Company:

            (a)   the sale, transfer or other disposition of assets or
businesses of the Company or its subsidiaries with a value greater than $250,000
individually, or $1,000,000 in the aggregate during any rolling twelve-month
period (other than inventory in the ordinary course), other than as specifically
contemplated by the Approved Business Plan;

            (b)   the acquisition of any assets or properties (in one or more
related transactions) for cash or otherwise for an amount in excess of $250,000
individually, or $1,000,000 in the aggregate during any rolling twelve-month
period, other than as specifically contemplated by the Approved Business Plan;

            (c)   changes in the capital structure of the Company or its
subsidiaries (including the occurrence of an IPO or other issuances of equity);

            (d)   other than as contemplated by the Approved Business Plan, the
incurrence of any indebtedness for borrowed money, the making of any guarantee
of any such indebtedness, or the prepayment, refinancing, amendment, change or
increase of any indebtedness for borrowed money;

            (e)   determinations regarding the material terms of indebtedness
contemplated by the Approved Business Plan, to the extent such terms are not
provided for in the Approved Business Plan;

            (f)   capital expenditures outside of the Approved Business Plan in
an amount greater than $250,000, individually, or $1,000,000 in the aggregate
during any rolling twelve-month period;

                                      -46-
<PAGE>
            (g)   the declaration, setting aside, making or paying of any
dividend or other distribution in respect of the Company's shares or equity
interests, or the purchase or redemption, directly or indirectly, of such shares
or equity interests (other than pursuant to this Agreement and the 1998 Stock
Incentive Plan (and related agreements));

            (h)   investments outside of the Approved Business Plan in an amount
greater than $250,000, individually, or $1,000,000 in the aggregate during any
rolling twelve-month period;

            (i)   material transactions not specifically contemplated by the
Approved Business Plan;

            (j)   annual business plans, operating plans and strategic plans to
the extent they modify the Approved Business Plan, including, without
limitation, increasing, decreasing or shifting financial allocations,
commitments or expenditures in an amount greater than $250,000 individually, or
$1,000,000 in the aggregate;

            (k)   transactions with any executive officers, directors or
Affiliates of the Company or any Stockholder (other than transactions with or
among wholly-owned Subsidiaries of the Company);

            (l)   the settlement or compromise of material litigation or
administrative proceedings;

            (m)   the replacement of the independent auditors or the making of
any material change in any method of tax or financial accounting or accounting
practice, except for any such change required by reason of a concurrent change
in generally accepted accounting principles;

            (n)   the commencement of any voluntary bankruptcy proceeding or
termination, liquidation or dissolution of the Company;

            (o)   the amendment, modification or waiver of any terms of any
outstanding security of the Company or its subsidiaries;

            (p)   entering into or modifying any employment agreement, severance
agreement or loan arrangement with any executive officer or director of the
Company or otherwise establishing or modifying any severance arrangements or
plans, in each case, outside of the Approved Business Plan;

            (q)   consulting fees outside of the Approved Business Plan in an
amount greater than $250,000, individually, or $250,000 in the aggregate during
any rolling twelve-month period;

            (r)   press releases or public announcements that relate to the
equity ownership of the Company or its equityholders, including FPSH;

            (s)   amending the Corporate Policies and Procedures;

            (t)   the amendment of the Certificate or Bylaws of the Company;

                                      -47-
<PAGE>
            (u)   entering into new, or amending existing, shareholder
agreements (including this Agreement);

            (v)   entering into new, or amending existing, option agreements or
the Co-Investment Rights Agreements; and

            (w)   the entry into any agreement with respect to the foregoing.

            5.3.2 Basic Romo Approval Rights. During such time as FPSH controls
a majority of the Board of Directors of the Company, in addition to approval by
a majority of the Board of Directors of the Company, Mr. Romo's approval shall
be required to approve any of the following actions by the Company:

            (a)   the acquisition of any assets or properties (in one or more
related transactions) for cash or otherwise for an amount in excess of $250,000
individually, or $1,000,000 in the aggregate during any rolling twelve-month
period, other than as specifically contemplated by the Approved Business Plan;

            (b)   other than as contemplated by the Approved Business Plan, the
incurrence of any indebtedness for borrowed money (excluding replacing,
refinancing or amending existing indebtedness), or the making of any guarantee
of any such indebtedness;

            (c)   determinations regarding the material terms of indebtedness
contemplated by the Approved Business Plan, to the extent such terms are not
provided for in the Approved Business Plan;

            (d)   transactions with any directors or Affiliates of the Company
or a Stockholder;

            (e)   the declaration, setting aside, making or paying of any
dividend or other distribution in respect of the Common Stock or equity
interests of the Company, or the purchase or redemption, directly or indirectly,
of such shares or equity interests (other than pursuant to this Agreement and
the 1998 Stock Incentive Plan (and related agreements));

            (f)   sales by the Company of Common Stock or other equity interests
of the Company to FPSH or its Affiliates, unless the other holders of Common
Stock, Options and Co-Investment Rights as of the Effective Date (who continue
through such time to own such equity) are offered the right to purchase a pro
rata amount of Common Stock or other equity interests of the Company on the same
terms as FPSH or its Affiliates;

            (g)   the amendment of the Certificate or Bylaws of the Company, to
the extent such amendment adversely affects Mr. Romo's rights in a manner
different from the effect on the other holders of Common Stock or other equity
interests of the Company or to the extent such amendment eliminates Mr. Romo's
approval rights contained in this Section 5.3.2 or Section 5.3.3 or Mr. Romo's
rights regarding the Board of Directors of the Company (contained in Section
5.2); and

            (h)   the entry into any agreement with respect to the foregoing.

                                      -48-
<PAGE>
            5.3.3 Additional Romo Approval Rights. In addition to those approval
rights set forth in Section 5.3.2., if FPSH controls a majority of the Board of
Directors of the Company and the Company has not experienced a Target Default,
in addition to approval by a majority of the Board of Directors of the Company,
Mr. Romo's approval shall be required to approve any of the following actions by
the Company:

            (a)   the sale, transfer or other disposition of assets or
businesses of the Company or its subsidiaries with a value greater than $250,000
individually, or $1,000,000 in the aggregate during any rolling twelve-month
period (other than inventory in the ordinary course), other than as specifically
contemplated by the Approved Business Plan;

            (b)   annual business plans, operating plans and strategic plans to
the extent they modify the Approved Business Plan, including, without
limitation, increasing, decreasing or shifting financial allocations,
commitments or expenditures in an amount greater than $250,000 individually, or
$1,000,000 in the aggregate;

            (c)   the amendment, modification or waiver of any terms of any
outstanding security of the Company or its subsidiaries; and

            (d)   the entry into any agreement with respect to the foregoing.

            If the Company has experienced a Target Default, FPSH shall consult
with and take into account Mr. Romo's views relating to clauses (a) through (d)
of this Section 5.3.3.

            5.4 Information Rights. Each of Mr. Romo and FPSH shall have full
access to all information regarding the Company, its operations and its
personnel, irrespective of whether Mr. Romo or FPSH controls the Board of
Directors of the Company, provided, however, that no access provided pursuant
hereto shall interfere unreasonably with the operations of the Company.

                                   ARTICLE VI

                             BUSINESS OPPORTUNITIES

      6.1   Business Investment Offers. None of the Romo Persons or any of their
respective Affiliates, on the one hand, nor FPSH or any of its Affiliates, on
the other hand, shall own or acquire any assets used in, or any equity interest
of any Person engaged in, the development, production or marketing of fruit or
vegetable seeds (the "Business"), unless such Person or its Affiliate first
offers (a "Business Investment Offer") the opportunity to acquire such assets or
equity interest to the Company at the same price and on substantially the same
terms and conditions (as such terms and conditions may be revised from time to
time) as (or more favorable terms and conditions than) are available to such
Person or its Affiliate. The offering Person or Affiliate shall notify the
Company in writing, in reasonable detail (which writing may be a preliminary
term sheet setting forth the general terms and conditions of the proposed
transaction), of any Business Investment Offer and shall provide to the Company
such

                                      -49-
<PAGE>
information as the Company may reasonably request in order to evaluate such
offer, subject to any confidentiality agreement or other restriction applicable
to the offering Person or Affiliate.

      6.2   Company Determinations. Subject to Article V of this Agreement, the
determination by the Company as to whether to accept or decline any Business
Investment Offer shall be made by a majority vote of the Board of Directors of
the Company, provided, however, that if (a) the Business Investment Offer is
rejected by a majority of the Board of Directors of the Company, (b) the
directors nominated by the Person who makes or whose Affiliate makes the
Business Investment Offer voted to reject the Business Investment Offer, and (c)
the Business Investment Offer would not have been rejected but for the vote of
the directors referred to in clause (b), then the Person or Affiliate making
such Business Investment Offer shall not be permitted to acquire the assets or
equity interests covered by the Business Investment Offer. Any determination
regarding a Business Investment Offer shall be communicated to the offering
Person in writing within 20 Business Days of receipt by the Company of the
Business Investment Offer.

      6.3   Permitted Opportunity. If (a) the Company declines such Business
Investment Offer (other than under the circumstances described in the proviso of
the first sentence of Section 6.2), (b) the Company accepts such Business
Investment Offer and fails, following good faith, active negotiations by the
third-party seller with respect thereto, to enter into a binding agreement with
such third-party seller to effect such acquisition of or investment in the
assets or equity interest, or (c) the Company enters into a binding agreement
with the third-party seller, but fails, after good faith efforts, within 180
days of the date of the binding agreement to complete such acquisition or
investment, then the Person who made such offer, or any Affiliate of such
Stockholder, shall be free (but only if the seller has acted in good faith with
respect to its dealings with the Company in connection with the matters referred
to in the foregoing clauses (b) and (c)) to effect such acquisition or
investment within 180 days thereafter.

      6.4   Exceptions. The limitations contained in this Article VI shall not
apply to, and no Business Investment Offer shall be required in connection with
the ownership or acquisition of: (a) an equity interest that constitutes less
than 5% of the outstanding equity of any Person, provided, however, that such
stock is listed on a national or international securities exchange or national
market system; (b) less than 5% in value of any instrument of indebtedness of a
Person engaged, directly or indirectly, in the Business; (c) the whole or any
part of an acquired Person or business which carries on the Business, where less
than 15% of such Person's revenues and net income are generated by the Business,
and such Romo Person or its Affiliates or FPSH or its Affiliates, as the case
may be, will dispose of such Business within one year of its acquisition,
provided that such disposition may be delayed pending receipt of required
regulatory approvals.

      6.5   Affiliates of FPSH. The restrictions on Affiliates of FPSH contained
in this Article VI shall not apply to publicly-held portfolio companies of Fox
Paine & Co., LLC.

                                      -50-
<PAGE>
                                   ARTICLE VII

                                  MISCELLANEOUS

      7.1   Term.

            7.1.1 This Agreement shall become effective (the "Effective Date")
simultaneously with the closing of the transactions under the FPSH Stock
Purchase Agreement, provided, however, that the provisions of Sections 5.1.1 and
5.1.2 relating to efforts by Mr. Paine and Mr. Romo to mutually agree upon an
Annual Business Plan for fiscal year 2004 (and, to the extent applicable, for
the 2003 Stub Period) and a Three-Year Business Plan for fiscal years 2004, 2005
and 2006 (and, to the extent applicable, for the 2003 Stub Period) shall be
effective as of the date of this Agreement.

            7.1.2 The rights and obligations of, and restrictions on, the
Stockholders under Article II (Restrictions on Transfers of Stock) and Article V
(Corporate Governance) shall terminate on the five-year anniversary of the
Effective Date (subject, however, to all obligations of the parties hereto which
must be fulfilled prior to such event); provided, however, that the rights of
NML, ABP, PGGM and their PS Permitted Transferees contained under Section 2.6
shall terminate on the later of (x) the five-year anniversary of the Effective
Date and (y) the occurrence of an IPO (subject, however, to all obligations of
the parties hereto which must be fulfilled prior to such event). The rights and
obligations of, and restrictions on, the Stockholders under Article IV
(Management Investors Put and Call Rights) shall terminate upon the occurrence
of an IPO (subject, however, to all obligations of the parties hereto which must
be fulfilled prior to such event). The rights and obligations of, and
restrictions on, the Romo Persons and their Affiliates, on the one hand, and
FPSH and its Affiliates, on the other hand, under Article VI (Business
Opportunities) shall terminate at such time as FPSH and its Affiliates, together
with the Romo Persons, the Romo Transferees and their Affiliates, own less than
a majority of the Common Stock of the Company on a fully diluted basis.
Notwithstanding the foregoing, in the event the Company enters into any
agreement to merge with or into any other Person or adopts any other plan of
recapitalization, consolidation, reorganization or other restructuring
transaction as a result of which the Stockholders (including FPSH and any
Affiliates thereof) shall own less than a majority of the outstanding voting
power of the entity surviving such transaction, this Agreement shall terminate.

            7.1.3 Notwithstanding anything in Section 7.1.2 to the contrary, the
provisions contained in Article III (Registration Rights) shall continue to
remain in full force and effect until the earlier to occur of the 20th
anniversary of the date hereof and the date on which there are no longer any
Registrable Securities outstanding or issuable or thereafter available for or
subject to issuance to any Stockholder upon exercise or conversion of any
Options, Co-Investment Rights, other rights or other convertible securities;
provided, however, that the provisions of Section 3.3 shall survive termination
pursuant to Section 7.1.2 or this Section 7.1.3.

      7.2   No Voting or Conflicting Agreements. No Stockholder shall grant any
proxy or enter into or agree to be bound by any voting trust with respect to the
Common Stock nor, at any time, shall any Stockholder enter into any stockholder
agreements or arrangements of any kind

                                      -51-
<PAGE>
with any Person with respect to the Common Stock inconsistent with the
provisions of this Agreement (whether or not such agreements and arrangements
are with other Stockholders or holders of Common Stock that are not parties to
this Agreement). The foregoing prohibition includes, but is not limited to,
agreements or arrangements with respect to the acquisition, disposition or
voting of shares of Common Stock inconsistent with the provisions of this
Agreement. No Stockholder shall act, at any time, for any reason, as a member of
a group or in concert with any other Persons in connection with the acquisition,
disposition or voting of shares of Common Stock in any manner that is
inconsistent with the provisions of this Agreement.

      7.3   Ownership Interests in Certain Persons. Schedule III hereto contains
a list of (a) the stockholders of each of CAI, Emprima, Park and the Rights
Holder and (b) the settlor and beneficiaries of the ARG Trust. Each of CAI,
Emprima, Park, the Rights Holder and ARG Trust hereby represents and warrants
that Schedule III contains a true and complete list of its respective
stockholders or (in the case of the ARG Trust) beneficiaries and settlor. Mr.
Romo hereby covenants that each of the Romo Persons shall at all times be
controlled by Mr. Romo, another Romo Person or a Romo Transferee.

      7.4   Specific Performance. The parties hereto acknowledge that there
would be no adequate remedy at law if any party fails to perform any of its
obligations hereunder, and, accordingly, agree that each party, in addition to
any other remedy to which it may be entitled at law or in equity, shall be
entitled to compel specific performance of the obligations of any other party
under this Agreement in accordance with the terms and conditions of this
Agreement. Any remedy under this Section 7.4 is subject to certain equitable
defenses and to the discretion of the court before which any proceedings
therefor may be brought.

      7.5   Notices. All notices, statements, instructions or other documents
required to be given hereunder shall be in writing and shall be given either
personally or by overnight courier or by telecopy, addressed to the Company at
its principal offices and to the other parties at their addresses (with copies
as indicated) reflected on the signature pages hereto. Each party hereto, by
written notice given to the other parties hereto in accordance with this Section
7.5, may change the address to which notices, statements, instructions or other
documents are to be sent to such party. All notices, statements, instructions
and other documents hereunder that are mailed or telecopied shall be deemed to
have been given on the date of mailing or, in the case of telecopying, upon
confirmation of receipt.

      7.6   Representative Capacity.

            7.6.1 Fox Paine Capital Fund II, L.P. shall appoint a representative
(the "FPSH Representative") as the representative of FPSH to act on behalf of
FPSH in accordance with this Agreement, provided, however, that Fox Paine
Capital Fund II, L.P. may replace the representative at any time so long as
notice of such replacement is provided in accordance with Section 7.5 of this
Agreement.

                                      -52-
<PAGE>
            7.6.2 The Bondholder SPC, Marcela Gonzalez, the Rights Holder, CAI,
Emprima, Park, the Pulsar Administration and Payment Trust, Savia and the ARG
Trust hereby appoint Mr. Romo as their representative to act on their behalf in
accordance with this Agreement, provided, however, that they may replace Mr.
Romo as their representative at any time after Mr. Romo's death or disability so
long as notice of such replacement is provided in accordance with Section 7.5 of
this Agreement.

      7.7   Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the parties, and their respective permitted
successors and assigns. If any Stockholder or any Transferee of any Stockholder
shall acquire any shares of Common Stock in any manner, whether by operation of
law or otherwise, such shares shall be held subject to all of the terms of this
Agreement, and, by taking and holding such shares, such Person shall be
conclusively deemed to have agreed to be bound by and to perform all of the
terms and provisions of this Agreement.

      7.8   Recapitalizations and Exchanges Affecting Common Stock. The
provisions of this Agreement shall apply, to the full extent set forth herein
with respect to Common Stock, to any and all shares of capital stock or equity
securities of the Company or any successor or assign of the Company (whether by
merger, consolidation, sale of assets or otherwise) that may be issued in
respect of, in exchange for, or in substitution of, Common Stock, or that may be
issued by reason of any stock dividend, stock split, reverse stock split,
combination, recapitalization, reclassification or otherwise. Upon the
occurrence of any of such events, numbers of shares and amounts hereunder and
any other appropriate terms shall be appropriately adjusted, as determined in
good faith by the Board of Directors of the Company.

      7.9   Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.

            (a)   This Agreement shall be governed and construed and enforced in
accordance with the laws of the State of Delaware, without regard to the
principles of conflicts of law thereof.

            (b)   The parties hereto hereby agree and consent to be subject to
the exclusive jurisdiction of the courts of the State of Delaware sitting in the
County of New Castle and the United States District Court for the State of
Delaware in any suit, action or proceeding seeking to enforce any provision of,
or based on any matter arising out of or in connection with, this Agreement.
Each party hereto hereby irrevocably waives, to the fullest extent permitted by
law, (i) any objection that it may now or hereafter have to laying venue of any
suit, action or proceeding brought in such courts, and (ii) any claim that any
suit, action or proceeding brought in such courts has been brought in an
inconvenient forum.

            (c)   Each of the Management Investors, the ARG Trust, CAI, Emprima,
Park, Marcela Gonzalez, the Bondholder SPC, Mr. Romo, the Pulsar Administration
and Payment Trust, Savia, the Rights Holder, ABP and PGGM irrevocably appoints
CT Corporation Systems, which currently maintains an office at 2711 Centerville
Road, Suite 400, Wilmington, Delaware, 19808, as its agent to receive service of
process or other legal summons for purposes of any such

                                      -53-
<PAGE>
action or proceeding. So long as any party hereto has any obligation under this
Agreement, it will maintain a duly appointed agent in the State of Delaware for
the service of such process or summons, and if it fails to maintain such an
agent, any such process or summons may be served by mailing a copy thereof by
registered mail, or a form of mail substantially equivalent thereto, addressed
to it at its address as provided for notices hereunder.

            (d)   EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL
BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT,
TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS
OF ANY PARTY HERETO IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND
ENFORCEMENT THEREOF.

      7.10  Descriptive Headings, Etc. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning of terms contained herein. Unless the context of this Agreement
otherwise requires, references to "hereof," "herein," "hereby," "hereunder" and
similar terms shall refer to this entire Agreement.

      7.11  Amendment. Except as otherwise provided herein, this Agreement may
not be amended or supplemented, except by an instrument in writing signed by the
Company, each representative appointed pursuant to Section 7.6 and by
Stockholders holding a majority of the then outstanding shares of Common Stock
held by all Stockholders; provided, however, that any amendment, supplement or
modification of this Agreement that adversely affects the rights and obligations
of the Stockholders generally under Section 2.6 shall also require the approval
of FPSH and a majority of the outstanding shares of Common Stock held by the
Stockholders party hereto; and provided, further, that any amendment, supplement
or modification of this Agreement that adversely affects the rights and
obligations of any Stockholder (an "Affected Holder") or group thereof, as a
class, differently than those of the other Stockholders shall also require the
approval of Affected Holders holding a majority of the outstanding shares of
Common Stock held by all such Affected Holders. The foregoing notwithstanding,
(a) the Company, without the consent of any other party hereto, may amend
Schedule I and the signature pages hereto, in order to add any other Management
Investor or other party that becomes a holder of Common Stock or securities
convertible into or exercisable for Common Stock, and (b) the Rights Holder and
FPSH may, without the consent of any other party hereto, amend or waive the
terms of vesting of the Hurdle Co-Investment Rights contained herein.

      7.12  Severability. If any term or provision of this Agreement shall to
any extent be invalid or unenforceable, the remainder of this Agreement shall
not be affected thereby, and each term and provision of this Agreement shall be
valid and enforceable to the fullest extent permitted by law. Upon the
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties shall negotiate in good faith to modify this
Agreement so as to effect their original intent as closely as possible in an
acceptable manner to the end that transactions contemplated hereby are fulfilled
to the extent possible.

                                      -54-
<PAGE>
      7.13  Further Assurances. The parties hereto shall from time to time
execute and deliver all such further documents and do all acts and things as the
other parties may reasonably require to effectively carry out or better evidence
or perfect the full intent and meaning of this Agreement, including, to the
extent necessary or appropriate, using all reasonable efforts to cause the
amendment of the Certificate or the Bylaws of the Company in order to provide
for the enforcement of this Agreement in accordance with its terms. In
furtherance and not in limitation of the foregoing, in the event of any
amendment, modification or termination of this Agreement in accordance with its
terms, the Stockholders shall cause the Board of Directors of the Company to
meet within 30 days following such amendment, modification or termination or as
soon thereafter as is practicable for the purpose of amending the Certificate
and Bylaws of the Company, as may be required as a result of such amendment,
modification or termination, and, to the extent required by law, proposing such
amendments to the Stockholders entitled to vote thereon, and such action shall
be the first action to be taken at such meeting.

      7.14  Complete Agreement; Counterparts. This Agreement (together with the
Stock Incentive Plans and the other agreements referred to herein and therein)
constitutes the entire agreement and supersede all other agreements and
understandings, both written and oral, among the parties or any of them, with
respect to the subject matter hereof. This Agreement may be executed by any one
or more of the parties hereto in any number of counterparts, each of which shall
be deemed to be an original, but all such counterparts shall together constitute
one and the same instrument.

      7.15  Certain Transactions and Fees. The parties hereto agree that each of
Fox Paine & Company, LLC and the Rights Holder shall have the right to receive
the fees provided for in the Management Fee Letter Agreement, of even date
herewith, by and among the Company, Fox Paine &Company, LLC and the Rights
Holder.

      7.16  No Third-Party Beneficiaries. The provisions of this Agreement shall
be only for the benefit of the parties to this Agreement, and no other Person
(other than any indemnified party with respect to Section 3.3 and other than as
provided in Section 2.4 and Section 7.15) shall have any third-party beneficiary
or other right hereunder.

      7.17  Sophisticated Investors. Each of the Stockholders hereby represents
that it has acquired Common Stock, Co-Investment Rights, Options, Warrants or
other equity securities of the Company for investment purposes only, and not
with a view to, or for, any public resale or other distribution thereof. Each of
the Stockholders is an "accredited investor" as such term is defined in the
regulations promulgated under the Securities Act and by reason of its business
and financial experience, it has such knowledge, sophistication and experience
in business and financial matters as to be capable of evaluating the merits and
risks of an investment in Common Stock, Co-Investment Rights, Options, Warrants
or other equity securities of the Company, is able to bear the economic risk of
such investment and is able to afford a complete loss of such investment.

                                      -55-
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly
executed on the date first written above.

                               SEMINIS, INC.

                               By:     /s/ Enrique Osorio
                                  ----------------------------------------------
                                  Name:      Enrique Osorio
                                  Title:     Treasurer Vice President

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               FOX PAINE CAPITAL FUND II, L.P.

                               By: Fox Paine Capital Fund II GP, LLC,
                                       its general partner
                                   By: Fox Paine Capital Management II, LLC,
                                       its manager

                               By:     /s/ Dexter Paine
                                  ----------------------------------------------
                                  Name:    Dexter Paine
                                  Title:   Manager
                                  Address: c/o Fox Paine & Company, LLC
                                           950 Tower Lane, Suite 1150
                                           Foster City, CA  94404
                                  Fax No.: (650) 295-4032

                                  With copies to:

                                           Wachtell, Lipton, Rosen & Katz
                                           51 West 52nd Street
                                           New York, New York 10019
                                           Attention:  Mitchell S. Presser, Esq.
                                           Fax No.:  212-403-2000

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               FOX PAINE CAPITAL FUND II,
                                   CO-INVESTORS, L.P.

                               By: Fox Paine Capital Fund II GP, LLC,
                                       its general partner
                                   By: Fox Paine Capital Management II, LLC,
                                       its manager

                               By:     /s/ Dexter Paine
                                  ----------------------------------------------
                                  Name:    Dexter Paine
                                  Title:   Manager
                                  Address: c/o Fox Paine & Company, LLC
                                           950 Tower Lane, Suite 1150
                                           Foster City, CA  94404
                                  Fax No.: (650) 295-4032

                                  With copies to:

                                           Wachtell, Lipton, Rosen & Katz
                                           51 West 52nd Street
                                           New York, New York  10019
                                           Attention:  Mitchell S. Presser, Esq.
                                           Fax No.:  212-403-2000

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               E AND A `J' TRUST

                               By: Fox Paine Capital Fund II GP, LLC,
                                       its general partner
                                   By: Fox Paine Capital Management II, LLC,
                                       its manager

                               By:     /s/ Dexter Paine
                                  ----------------------------------------------
                                  Name:    Dexter Paine
                                  Title:   Manager
                                  Address: c/o Fox Paine & Company, LLC
                                           950 Tower Lane, Suite 1150
                                           Foster City, CA  94404
                                  Fax No.: (650) 295-4032

                                  With copies to:

                                           Wachtell, Lipton, Rosen & Katz
                                           51 West 52nd Street
                                           New York, New York  10019
                                           Attention:  Mitchell S. Presser, Esq.
                                           Fax No.:  212-403-2000

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               FPC INVESTMENT GP

                               By: Fox Paine Capital Fund II GP, LLC,
                                       its general partner
                                   By: Fox Paine Capital Management II, LLC,
                                       its manager

                               By:     /s/ Dexter Paine
                                  ----------------------------------------------
                                  Name:    Dexter Paine
                                  Title:   Manager
                                  Address: c/o Fox Paine & Company, LLC
                                           950 Tower Lane, Suite 1150
                                           Foster City, CA  94404
                                  Fax No.: (650) 295-4032

                                  With copies to:

                                           Wachtell, Lipton, Rosen & Katz
                                           51 West 52nd Street
                                           New York, New York  10019
                                           Attention:  Mitchell S. Presser, Esq.
                                           Fax No.:  212-403-2000

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               FPSH COINVESTMENT FUND I, LLC

                               By: Fox Paine Capital Fund, II GP, LLC,
                                   its Manager

                               By:     /s/ Dexter Paine
                                  ----------------------------------------------
                                  Name:    Dexter Paine
                                  Title:   Manager
                                  Address: c/o Fox Paine & Company, LLC
                                           950 Tower Lane, Suite 1150
                                           Foster City, CA  94404
                                  Fax No.: (650) 295-4032

                                  With copies to:

                                           Wachtell, Lipton, Rosen & Katz
                                           51 West 52nd Street
                                           New York, New York  10019
                                           Attention:  Mitchell S. Presser, Esq.
                                           Fax No.:  212-403-2000

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               FPSH COINVESTMENT FUND II, LLC

                               By: Fox Paine Capital Fund, II GP, LLC,
                                   its Manager

                               By:     /s/ Dexter Paine
                                  ----------------------------------------------
                                  Name:    Dexter Paine
                                  Title:   Manager
                                  Address: c/o Fox Paine & Company, LLC
                                           950 Tower Lane, Suite 1150
                                           Foster City, CA  94404
                                  Fax No.: (650) 295-4032

                                  With copies to:

                                           Wachtell, Lipton, Rosen & Katz
                                           51 West 52nd Street
                                           New York, New York  10019
                                           Attention:  Mitchell S. Presser, Esq.
                                           Fax No.:  212-403-2000

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               FPSH COINVESTMENT FUND III, LLC

                               By: Fox Paine Capital Fund, II GP, LLC,
                                   its Manager

                               By:     /s/ Dexter Paine
                                  ----------------------------------------------
                                  Name:    Dexter Paine
                                  Title:   Manager
                                  Address: c/o Fox Paine & Company, LLC
                                           950 Tower Lane, Suite 1150
                                           Foster City, CA  94404
                                  Fax No.: (650) 295-4032

                                  With copies to:

                                           Wachtell, Lipton, Rosen & Katz
                                           51 West 52nd Street
                                           New York, New York  10019
                                           Attention:  Mitchell S. Presser, Esq.
                                           Fax No.:  212-403-2000

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto caused this instrument to be duly
executed on the date first written above.

                               FPSH COINVESTMENT FUND IV, LLC

                               By: Fox Paine Capital Fund, II GP, LLC,
                                   its Manager

                               By:     /s/ Dexter Paine
                                  ----------------------------------------------
                                  Name:    Dexter Paine
                                  Title:   Manager
                                  Address: c/o Fox Paine & Company, LLC
                                           950 Tower Lane, Suite 1150
                                           Foster City, CA  94404
                                  Fax No.: (650) 295-4032

                                  With copies to:

                                           Wachtell, Lipton, Rosen & Katz
                                           51 West 52nd Street
                                           New York, New York  10019
                                           Attention:  Mitchell S. Presser, Esq.
                                           Fax No.:  212-403-2000

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               FPSH COINVESTMENT FUND V, LLC

                               By: Fox Paine Capital Fund, II GP, LLC,
                                   its Manager

                               By:     /s/ Dexter Paine
                                  ----------------------------------------------
                                  Name:    Dexter Paine
                                  Title:   Manager
                                  Address: c/o Fox Paine & Company, LLC
                                           950 Tower Lane, Suite 1150
                                           Foster City, CA  94404
                                  Fax No.: (650) 295-4032

                                  With copies to:

                                           Wachtell, Lipton, Rosen & Katz
                                           51 West 52nd Street
                                           New York, New York  10019
                                           Attention:  Mitchell S. Presser, Esq.
                                           Fax No.:  212-403-2000

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               BANCA AFIRME, S.A., INSTITUCION DE BANCA
                               MULTIPLE, AFIRME GRUPO FINANCIERO, AS TRUSTEE,
                               UNDER THE IRREVOCABLE ADMINISTRATION AND PAYMENT
                               TRUST NUMBER 167-5 (FIDEICOMISO IRREVOCABLE DE
                               ADMINISTRACION Y PAGO NUMERO 167-5)

                               By:     /s/ Ricardo J. Gil
                                  ----------------------------------------------
                                  Name:    Ricardo J. Gil
                                  Title:   Delegado Fiduciario

                               By:     /s/ Beatriz Garzal
                                  ----------------------------------------------
                                  Name:    Beatriz Garzal
                                  Title:   Delegado Fiduciario

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
                               JEAN PIERRE POSA

                               -------------------------------------------------
                               Address:

                               BANCA AFIRME, S.A., INSTITUCION DE BANCA
                               MULTIPLE, AFIRME GRUPO FINANCIERO, AS TRUSTEE,
                               UNDER THE ADMINISTRATION TRUST NUMBER 243-4
                               (FIDEICOMISO DE ADMINISTRACION NUMBER 243-4)

                               By:     /s/ Ricardo J. Gil
                                  ----------------------------------------------
                                  Name:    Ricardo J. Gil
                                  Title:   Delegado Fiduciario

                               By:     /s/ Beatriz Garzal
                                  ----------------------------------------------
                                  Name:    Beatriz Garzal
                                  Tile:    Delegado Fiduciario

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               CONJUNTO ADMINISTRATIVO
                                  INTEGRAL, S.A. DE C.V.

                               By:     /s/ Heriberto S. Muzza
                                  ----------------------------------------------
                                  Name:    Heriberto S. Muzza
                                  Title:   Attorney-in-Fact

                               By:     /s/ [Authorized Signatory]
                                  ----------------------------------------------
                                  Name:    [Authorized Signatory]
                                  Title:   Attorney-in-Fact

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               DESARROLLO CONSOLIDADO DE
                                  NEGOCIOS, S.A. de C.V.

                               By:     /s/ Gustavo Romo Garza
                                  ----------------------------------------------
                                  Name:    Gustavo Romo Garza
                                  Title:   Attorney-in-Fact

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               EMPRIMA, S.A. DE C.V.

                               By:     /s/ Heriberto S. Muzza
                                  ----------------------------------------------
                                  Name:    Heriberto S. Muzza
                                  Title:   Attorney-in-Fact

                               By:     /s/ [Authorized Signatory]
                                  ----------------------------------------------
                                  Name:    [Authorized Signatory]
                                  Title:   Attorney-in-Fact

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               THE IRREVOCABLE ADMINISTRATION AND PAYMENT TRUST
                               NUMBER 131-4 ENTERED INTO BY BANCA AFIRME, S.A.,
                               INSTITUClON DE BANCA MULTIPLE, AFIRME GRUPO
                               FINANCIERO, IN ITS CAPACITY AS TRUSTEE AND
                               PULSAR INTERNACIONAL, S.A. DE C.V., EXECUTED ON
                               JULY 23, 2001, AS AMENDED

                               By:     /s/ Ricardo J. Gil
                                  ----------------------------------------------
                                  Name:    Ricardo J. Gil
                                  Title:   Delegado Fiduciario

                               By:     /s/ Beatriz Garzal
                                  ----------------------------------------------
                                  Name:    Beatriz Garzal
                                  Tile:    Delegado Fiduciario

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               PARK FINANCIAL GROUP LTD.

                               By:     /s/ Bernardo Jimenez
                                  ----------------------------------------------
                                  Name:    Bernardo Jimenez
                                  Title:   Authorized Officer

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, parties hereto have caused this instrument to be duly
executed on the date first written above.

                               SAVIA, S.A. DE C.V.

                               By:     /s/ Heriberto S. Muzza
                                  ----------------------------------------------
                                  Name:    Heriberto S. Muzza
                                  Title:   Attorney-in-Fact

                               By:     /s/ Jose Luis Martinez
                                  ----------------------------------------------
                                  Name:    Jose Luis Martinez
                                  Title    Attorney-in-Fact

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               SAVIA, S.A. DE C.V.

                               By:     /s/ Bernardo Jimenez
                                  ----------------------------------------------
                                  Name:    Bernardo Jimenez
                                  Title:   Attorney-in-Fact

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parks hereto have caused this instrument to be
duly executed on the date first written above.

                               GASPAR ALVAREZ

                                       /s/ Gaspar Alvarez
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               MATEO MAZAL BEJA

                                       /s/ Mateo Mazal Beja
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               FRANCO CAMPANA

                                       /s/ Franco Campana
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               BRUNO FERRARI

                                       /s/ Bruno Ferrari
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               ALFONSO ROMO GARZA

                                       /s/ Alfonso Romo Garza
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               MARCELA GONZALEZ

                                       /s/ Marcela Gonzalez
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               CHARLES EDWARD GREEN

                                       /s/ Charles Edward Green
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               BERNARDO JIMENEZ

                                       /s/ Bernardo Jimenez
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               LUIZ MAIZ

                                       /s/ Luiz Maiz
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               JEAN PIERRE POSA

                                       /s/ Jean Pierre Posa
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               ADRIAN RODRIGUEZ

                                       /s/ Adrian Rodriguez
                               -------------------------------------------------

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               THE NORTHWESTERN MUTUAL LIFE
                                  INSURANCE COMPANY

                               By:     /s/ Mark E. Kishler
                                  ----------------------------------------------
                                  Name:    Mark E. Kishler
                                  Title:   Its Authorized Representative
                                  Address: The Northwestern Mutual Life
                                           Insurance Company
                                           720 East Wisconsin Avenue
                                           Milwaukee, Wisconsin  53202
                                  Fax No.: (414) 665-5714

                                  With copies to:

                                           Schiff Hardin & Waite
                                           6600 Sears Tower
                                           Chicago, Illinois  60606
                                           Attention:  Drew Kling, Esq.
                                           Fax No.:  (312) 258-5700

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               STICHTING PENSIOENFONDS
                               ABP, duly represented by
                               NIB Capital Private Equity
                               N.V.

                               By:     /s/ [Authorized Signatory]
                                  ----------------------------------------------
                                  Name:    [Authorized Signatory]
                                  Title:   Head of Legal Affairs

                               By:     /s/ [Authorized Signatory]
                                  ----------------------------------------------
                                  Name:    [Authorized Signatory]
                                  Title:   Managing Partner

                               Stichting Pensioenfonds ABP
                               c/o NIB Capital Private Equity
                               Jachthavenweg 118
                               1081 KJ AMSTERDAM
                               The Netherlands
                               Attn:  W. Borgdorff
                               Fax:  +31 20 540 7503

                               With copies to:

                               NIB Capital Private Equity
                               600 Fifth Avenue, 17th Floor
                               New York, New York  10020
                               Attn:  Henry Robin/Jason Block
                               Fax:  (212) 332-6241

                               and

                               Ropes & Gray LLP
                               45 Rockefeller Plaza, 11th Floor
                               New York, New York  10111
                               Attn:  Daniel C. Kolb
                               Fax:  (212) 841-5725

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
duly executed on the date first written above.

                               STICHTING PENSIOENFONDS
                               VOOR DE GEZONDHEID,
                               GEESTELIJKE EN
                               MAATSCHAPPELIJKE BELANGEN,
                               duly represented by NIB
                               Capital Private Equity N.V.

                               By:     /s/ [Authorized Signatory]
                                  ----------------------------------------------
                                  Name:    [Authorized Signatory]
                                  Title:   Head of Legal Affairs

                               By:     /s/ [Authorized Signatory]
                                  ----------------------------------------------
                                  Name:    [Authorized Signatory]
                                  Title:   Managing Partner

                               Stichting Pensioenfonds de Gezondheid,
                               Geestelijke en Maatschappelijke Belangen
                               c/o NIB Capital Private Equity N.V.
                               Jachthavenweg 118
                               1081 KJ AMSTERDAM
                               The Netherlands
                               Attn:  W. Borgdorff
                               Fax:  +31 20 540 7503

                               With copies to:

                               NIB Capital Private Equity
                               600 Fifth Avenue, 17th Floor
                               New York, New York  10020
                               Attn:  Henry Robin/Jason Block
                               Fax:  (212) 332-6241

                               and

                               Ropes & Gray LLP
                               45 Rockefeller Plaza, 11th Floor
                               New York, New York 10111
                               Attn:  Daniel C. Kolb
                               Fax:  (212) 841-5725

                         [SIGNATURE PAGE TO AMENDED AND
                        RESTATED STOCKHOLDERS' AGREEMENT]
<PAGE>

                                                                       Exhibit A

                        CORPORATE POLICIES AND PROCEDURES
                           ACTIONS REQUIRING APPROVAL

            Neither Seminis, Inc. (the "Company"), any of its subsidiaries nor
any of their respective executive officers or employees shall take any of the
following actions (i) without the authorization of the Board of Directors of the
Company, with respect to items marked "BD," and (ii) without providing
information about such action to the Executive Committee and receiving approval
from the CEO, with respect to items marked "EC." References to the "Budget"
shall be the Approved Business Plan as in effect from time to time in accordance
with the Stockholders' Agreement. The items enumerated herein shall not
supersede, and shall be subject to, the approval rights set forth in Section 5.3
of the Stockholders' Agreement.

General

1.    implement or approve any annual business plans, operating plans and
      strategic plans for the Company to the extent the modify the Approved
      Business Plan, or amend any Budget for the Company previously approved by
      the Board of Directors, if such action must be approved by the
      Supermajority of the Board of Directors (BD);

2.    enter into any new line of business (BD);

3.    materially amend any Budget (EC);

4.    adopt an operating plan or budget (including any marketing, corporate
      overhead and sales plans or budgets) or any amendment thereto not
      consistent with the annual Budget (BD);

5.    adopt a capital expenditure budget or any amendment thereto not consistent
      with the annual Budget, as amended from time to time (BD);

6.    make, modify or approve plans, practices or policies of the Company or any
      subsidiary of the Company material to the operations or governance of the
      Company or its subsidiaries (EC);

7.    amend or waive any material term of any agreement or transaction that
      required, or would have required had such agreement or transaction been
      entered into after the adoption hereof, Board approval hereunder (BD);

8.    modify the Corporate Policies and Procedures of the Company (BD);

9.    cast any votes with respect to non-wholly owned investments or
      subsidiaries, or grant any proxy with respect to the voting of any shares
      held by the Company or any subsidiary of the Company as to an action or
      transaction that would require Board approval hereunder if such action
      were to be taken by the Company (EC); or

<PAGE>

10.   authorize, commit or agree to take any action covered hereby, except in
      accordance with the provisions hereof (BD).

Capital Stock, Debt Securities, Dividends and Shareholders Meetings

1.    acquire, repurchase, redeem, cancel, sell, issue or otherwise dispose of
      any indebtedness (as defined under GAAP) or equity interest of the Company
      or any of its subsidiaries, or any other securities convertible into or
      exchangeable for, or any rights, warrants or options to acquire any shares
      of capital stock of the Company or any of its subsidiaries (other than the
      issuance of shares of capital stock or securities by wholly owned
      subsidiaries of the Company, not explicitly provided for in the Budget)
      (BD);

2.    declare, set aside, make or pay any dividend or other distribution in
      respect of the Company's shares or equity interests, or purchase or
      redeem, directly or indirectly, such shares or equity interests (other
      than pursuant to the Stockholders' Agreement, the 1998 Stock Incentive
      Plan (and related agreements) and employment agreements existing on the
      date hereof) (BD);

3.    amend, modify or waive any material term of any outstanding equity
      security or indebtedness (as defined under GAAP) of the Company or any of
      its subsidiaries other than such securities or indebtedness of wholly
      owned subsidiaries owned by the Company and its wholly owned subsidiaries
      (BD); or

4.    call, convene, give notice of or hold any meeting of stockholders of the
      Company, or determine matters, resolutions, proposals to be considered at
      any meeting of stockholders of the Company (BD).

Reorganizations, Consolidations, Liquidations and Mergers and Acquisitions

1.    agree to enter into or consummate any mergers, consolidations,
      reorganizations, recapitalizations or other business combinations (BD);

2.    make any non-binding bid on any acquisition, divestiture, joint venture or
      alliance in excess of $250,000 (EC);

3.    make any acquisition, divestiture, joint venture or alliance or any
      agreements or commitments relating thereto, involving the commitment or
      transfer by the Company or any of its subsidiaries of value in excess of
      $250,000 not explicitly provided for in the Budget (BD);

4.    make or dispose of any investment in another entity (other than direct or
      indirect wholly owned subsidiaries of the Company), not explicitly
      provided for in the Budget, or cash management in accordance with cash
      management policies of the Company (BD);

5.    commence the termination, liquidation or dissolution of the Company, or
      enter into any agreement or arrangement relating thereto (BD);

<PAGE>

6.    propose or institute proceedings to adjudicate the Company or any
      subsidiary of the Company, as bankrupt, or consent to the filing of a
      bankruptcy proceeding against the Company or any subsidiary of the
      Company, or file a petition or answer or consent seeking reorganization of
      the Company or any subsidiary of the Company under any applicable
      bankruptcy or insolvency laws, or consent to the filing of any such
      petition against the Company or any subsidiary of the Company, or consent
      to the appointment of a receiver or liquidator or trustee or assignee in
      bankruptcy or insolvency of the Company or any subsidiary of the Company,
      or make an assignment for the benefit of creditors of the Company or any
      subsidiary of the Company or admit in writing the Company's or any
      subsidiary of the Company's inability to pay its debts generally as they
      become due (BD);

7.    propose that the Company or any subsidiary of the Company be wound-up or
      that any liquidation proceedings be commenced (BD); or

8.    adopt or materially amend the cash management policies of the Company and
      its subsidiaries (EC).

Commercial Transactions

Make, permit or approve any of the following transactions:

1.    payments by the Company or any subsidiary of the Company outside the
      ordinary course of business in excess of $250,000 not otherwise
      specifically provided for in the Budget (BD);

2.    execute any trade, buy or sell, or commit to buy or sell, assets or
      property with a value in excess of $250,000 in the aggregate outside the
      ordinary course of business and not otherwise specifically provided for in
      the Budget (BD);

3.    enter into any lease involving (i) payments in excess of $100,000 per year
      or (ii) obligations of the Company or any of its subsidiaries beyond one
      year in excess of $250,000 in the aggregate not otherwise specifically
      provided for in the Budget (BD);

4.    capital expenditures in excess of $100,000 not otherwise specifically
      provided for in the Budget (EC); or

5.    effect any transaction outside of the ordinary course of business in
      excess of $250,000 and not otherwise specifically provided for in the
      Budget (BD).

Indebtedness and Liens

Make, permit or approve any of the following transactions:

1.    mortgage or otherwise encumber or subject to any lien any assets of the
      Company or any of its subsidiaries (BD); or

<PAGE>

2.    lend any money or assets of the Company (including any loans made to
      directors, officers or employees of the Company or any of its
      subsidiaries), other than incidental amounts, such as travel expenses, not
      in excess of $500 relating to expenses incurred in the ordinary course of
      business (BD).

Transactions with Affiliated Parties

1.    enter into any transaction with any shareholder, executive officer,
      director or any affiliate or relative thereof of the Company or of any of
      its subsidiaries, other than transactions with and among wholly owned
      subsidiaries or otherwise provided for in the Budget (BD);

2.    hire, renew, promote or elect, the chief executive or any other Company
      executive officers not otherwise approved by the Compensation Committee
      (BD);

3.    create new executive officer positions of the Company not otherwise
      approved by the Compensation Committee (BD);

4.    make, amend or approve compensation and benefit plans, programs and
      policies of the Company or any of its subsidiaries, including option and
      equity-based or profit sharing plans, or approve any grant under any
      option or equity-based or profit sharing plan not otherwise approved by
      the Compensation Committee (BD);

5.    make or approve severance agreements or arrangements involving payments by
      the Company or any of its subsidiaries in excess of $150,000 not otherwise
      approved by the Compensation Committee (BD);

6.    enter into any agreement providing for the indemnification of any officer,
      director, employee, agent or representative of the Company or
      indemnification of another company, partnership, joint venture, trust or
      other enterprise (BD); or

7.    purchase or obtain insurance for the benefit of any officer, director,
      employee, agent or representative of the Company or another company,
      partnership, joint venture, trust or other enterprise not otherwise
      explicitly contemplated by the Budget (BD).

Litigation

1.    commence or settle litigation with a cost or expected value in excess of
      $100,000 or otherwise pay, settle, discharge, waive or satisfy any claim,
      liability or obligation other than the payment, discharge or satisfaction
      thereof in the ordinary course of business consistent with past practice
      (the Board may create a separate basket for Seedman's claims) (BD).

Regulatory

1.    make any filing with or any report to any regulatory agency relating to or
      referring to the Company's stockholders or capital structure or, if
      publicly filed or otherwise reasonably expected to become publicly
      available, financial circumstances (BD).

<PAGE>

Taxation and Audits

1.    materially change any of the Company's tax, accounting, bookkeeping or
      record-keeping principles, elections or positions (BD); or

2.    review, accept, approve or change the Company's external auditors or
      auditors' reports (BD).

Miscellaneous

1.    approve consultant fees or investment banking fees in excess of $250,000
      (BD); or

2.    issue any press releases or other public announcements, or give any media
      interview relating to or referring to the Company's stockholders,
      financial circumstances or capital structure (BD).

<PAGE>

                       GUIDELINES FOR APPROPRIATE CONDUCT

INTRODUCTION

As a company team member, you are expected to accept certain responsibilities,
follow acceptable business principles in matters of conduct and exhibit a high
degree of integrity at all times. This Guideline covers a wide range of
practices. It does not cover every issue that may arise, but it sets out basic
principles to guide all employees of Seminis, Inc. and its Subsidiaries
(collectively, the "Company").

All of our employees must conduct themselves according to these Guidelines and
seek to avoid even the appearance of improper behavior that might be harmful to
themselves, co-workers, or the Company; might be viewed unfavorably by current
or potential customers; or might be viewed unfavorably by the public at large in
any of the many countries where the Company does business or is subject to
regulation. Employees, officers, directors and consultants are encouraged to
observe the highest standards of professionalism at all times and comply with
the practices described below. Although consultants are expected to abide by
these Guidelines, they shall act solely as independent contractors and nothing
herein contained shall at any time be so construed as to create a relationship
of employer and employee, partnership, principal and agent, or joint venturer.
Additionally, all contracts the Company shall enter into with its agents
following the date on which the Company adopts these Guidelines shall
incorporate and attach a copy of these Guidelines, unless specifically approved
otherwise in writing by the Company's General Counsel.

1.    Compliance with Laws, Rules and Regulations

Obeying the law, both in letter and in spirit, is the foundation on which this
Company's ethical standards are built. All employees must respect and obey the
laws of the cities, states and countries in which we operate. Although not all
employees are expected to know, the details of these laws, it is important to
know enough to determine when to seek advice from higher authorities.

2.    Conflicts of Interest

A "conflict of interest" exists when a person's private interest interferes in
any way - or even appears to interfere - with the interests of the Company. A
conflict can arise when an employee, officer or director takes actions or has
interests that may make it difficult to perform his or her Company work
objectively and effectively. Conflicts of interest may also arise when an
employee, officer or director, or members of his or her family, receives
personal benefits as a result of his or her position in the Company.

It is almost always a conflict of interest for a Company employee to work
simultaneously for a competitor, customer or supplier. You are not allowed to
work for a competitor as a consultant or board member. The best policy is to
avoid any direct or indirect business connection with our customers, suppliers
or competitors, except on our behalf. In addition, engaging in a competitive

<PAGE>

activity may result in the loss of benefits under your employment agreement,
restricted stock units or other incentive awards.

Conflicts of interest are prohibited as a matter of Company policy. Conflicts of
interest are not always clear-cut, so if you have a question, or if a situation
raises any doubt, you should promptly consult with higher levels of local
management or with the Company's General Counsel. Conflicts, or potential
conflicts, can often be dealt with if disclosed early and completely.

Employees, officers and directors are prohibited from taking for themselves
personally opportunities that are presented or discovered through the use of
corporate property, information or position. No employee may use corporate
property, information, or position for personal gain, and no employee may
compete with the Company, directly or indirectly. Employees, officers and
directors owe a duty to the Company to advance its legitimate interests when the
opportunity to do so arises.

3.    Competition and Fair Dealing

We seek to outperform our competition fairly and honestly. We seek competitive
advantages through superior performance, never through unethical or illegal
business practices. Stealing proprietary information, possessing and using trade
secret information that was obtained without the owner's consent, or inducing
such disclosures by past or present employees of other companies is prohibited.
Each employee should endeavor to respect the rights of and deal fairly with the
Company's customers, suppliers, competitors and employees. No employee should
take unfair advantage of anyone through manipulation, concealment, abuse of
privileged information, misrepresentation of material facts, or any other
intentional unfair-dealing practice.

To maintain the Company's valuable reputation, compliance with our quality
processes and safety requirements is essential. In the context of ethics, it is
a quality requirement that our products and services be designed and
manufactured to meet our obligations to customers. All inspection and testing
documents must be handled in accordance with all applicable regulations.

The purpose of business entertainment and gifts in a commercial setting is to
create good will and sound working relationships, not to gain unfair advantage
with customers. Employees may never give or receive cash gifts. No gift or
entertainment should ever be offered, given, provided or accepted by any Company
employee, family member of an employee or permanent consultant unless it is
appropriately modest in value; fully consistent with all laws or regulations; is
consistent with customary business practices (including the practices of the
Company); and cannot be construed as a bribe or improper inducement.

Company employees and permanent consultants may not, under any circumstances,
solicit any third party to violate the above on behalf of the Company or any
affiliate of the Company.

National laws and international treaties penalize illicit payments, especially
to government officials, political figures, and their families. Penalties for
violating these obligations can be severe - including imprisonment for
individuals and potentially devastating financial penalties and negative
publicity for companies. The Company emphasizes its insistence upon scrupulous

<PAGE>

adherence to all applicable standards regarding gifts and entertainment by all
employees, and permanent consultants.

Please discuss with your supervisor any gifts or plans that you are not certain
are appropriate.

4.    Discrimination and Harassment

The diversity of the Company's employees is a tremendous asset. We are firmly
committed to providing equal opportunity in all aspects of employment and will
not tolerate any illegal discrimination or harassment of any kind. Examples
include derogatory comments based on racial or ethnic characteristics and
unwelcome sexual advances. Employees should immediately report any improper
discrimination or harassment to the appropriate supervisor or to the Corporate
Vice-President for Human Resources.

5.    Health and Safety

The Company strives to provide each employee with a safe and healthful work
environment. Each employee has responsibility for maintaining a safe and healthy
workplace for all employees by following safety and health rules and practices
and reporting accidents, injuries and unsafe equipment, practices or conditions.

Violence and threatening behavior are not permitted under any circumstances.
Employees should report to work in condition to perform their duties, free from
the influence of illegal drugs or alcohol. The use of illegal drugs in the
workplace will not be tolerated.

6.    Record-Keeping

The Company requires honest and accurate recording and reporting of information
in order to make responsible business decisions. Only the true and actual number
of hours worked should be reported. Never shift costs to other customers or
inappropriate work order numbers.

Many employees regularly use business expense accounts, which must be documented
and recorded accurately. If you are not sure whether a certain expense is
legitimate, ask your supervisor or your controller. Rules and guidelines are
available from the Accounting Department.

All of the Company's books, records, accounts and financial statements must be
maintained in reasonable detail, must appropriately reflect the Company's
transactions and must conform both to applicable legal requirements and to the
Company's system of internal controls. Unrecorded or "off the books" funds or
assets should not be maintained unless permitted by applicable law or
regulation.

Business records and communications often become public, and we should avoid
exaggeration, derogatory remarks, guesswork, or inappropriate characterizations
of people and companies that can be misunderstood. This applies equally to
e-mail, internal memos, and formal reports. Records should always be retained or
destroyed according to the Company's record retention policies. In accordance
with those policies, in the event of litigation or governmental investigation
please consult the General Counsel.

<PAGE>

7.    Confidentiality

Employees must maintain the confidentiality of confidential information
entrusted to them by the Company or its customers, except when disclosure is
authorized by the General Counsel or required by laws or regulations.
Confidential information includes all non-public information that might be of
use to competitors, or harmful to the Company or its customers, if disclosed. It
also includes information that suppliers and customers have entrusted to us. The
obligation to preserve confidential information continues even after employment
ends.

8.    Protection and Proper Use of Company Assets

All employees should endeavor to protect the Company's assets and ensure their
efficient use. Theft, carelessness, and waste have a direct impact on the
Company's profitability. Any suspected incident of fraud or theft should be
immediately reported for investigation. In no event should Company equipment be
used for non-Company business unless expressly authorized by (i) the appropriate
supervisors; or (ii) under specific guidelines issued by the Company.

Loyalty to the Company also requires that employees help preserve Company
assets, which include physical assets and also proprietary information.
Proprietary information includes intellectual property such as trade secrets,
patents, trademarks, and copyrights, as well as business, marketing and service
plans, engineering and manufacturing ideas, designs, databases, records, salary
information and any unpublished financial data and reports. Any unauthorized use
or distribution of this information would violate Company policy. It could also
be illegal and result in civil or even criminal penalties. All employees should
do their best to make sure that Company property under their control is properly
used and protected by adequate controls and safeguards.

9.    Payments to Government Personnel

As noted in section 3, national laws and international treaties impose criminal
penalties, including extradition and imprisonment, for improper attempts to
influence foreign government officials. The U. S. Foreign Corrupt Practices Act
("FCPA") has set a standard that has been or is being adopted by more and more
countries and in a number of treaties. The Company reaffirms its commitment to
doing business on the highest ethical basis in this context, as in all others.
Regardless of what competitors may do (or we may be told they do), no employee
may engage in improper payments, gifts or conveying inappropriate advantage to
any government official, political party official, or member of their family.
The Company will not endorse or ratify any such action.

The Company, through the General Counsel, will provide guidance to employees and
permanent consultants on appropriate means of dealing with foreign government
officials. If you have any questions about the propriety of a proposed gift,
payment, service or request, please consult your local management or the General
Counsel.

10.   Waivers of the Code of Business Conduct and Ethics

The Company discourages waivers of this Code except in extraordinary
circumstances. Any waiver of this Code for executive offices or directors may be
made only by a Supermajority of

<PAGE>

the Board of Directors (as defined in the Amended and Restated Stockholders'
Agreement, dated 29, 2003, among the Company and the parties listed on the
signature pages thereto) and will be promptly disclosed as required by law. Any
waiver of this Code must be documented in writing and included in the books and
records of the Company in full.

11.   Reporting any Illegal or Unethical Behavior

Employees are encouraged to talk to their supervisors when in doubt about the
best course of action in a particular situation. In the rare instances where it
would be inappropriate to discuss the matter with a supervisor, employees are
encouraged to contact the General Counsel with any concerns. It is the policy of
the Company not to allow retaliation for reports of misconduct by others made in
good faith by employees. Employees are expected to cooperate in internal
investigations of misconduct.

12.   Compliance Procedures

We must all work to ensure that we follow the guidelines for appropriate
conduct. However, in some situations it is difficult to resolve the application
of relevant laws, regulations or Company policies to a particular set of
circumstances or proposed course of action. Since we cannot anticipate every
situation that will arise, it is important that we have a way to approach a new
question or problem. These are the steps to keep in mind:

      -     Get all the facts. In order to reach intelligent solutions, we must
            be as fully informed as possible.

      -     Discuss the problem with your supervisor. This is the basic guidance
            for all situations. In many cases, your supervisor will have a
            broader perspective and be more knowledgeable about the question,
            and will appreciate being brought into the decision making process.
            Remember that it is your supervisor's responsibility to help solve
            problems.

      -     If necessary, approach the General Counsel or Corporate
            Vice-President for Human Resources, as applicable under these
            guidelines. In many cases, they will have a broader perspective and
            more experience with your questions or concerns.

      -     You may report ethical violations in confidence and without fear of
            retaliation. If your situation requires that your identity be kept
            secret, reasonable steps will be taken to protect your anonymity.
            The Company does not permit retaliation of any kind against
            employees for good faith reports of ethical violations.

      -     Always ask first, act later. If you are unsure of what to do in any
            situation, seek guidance before you act.

<PAGE>

                                                                       EXHIBIT B

                        SAMPLE CALCULATION OF IRR HURDLE

IRR Hurdle = (FPSH Invested Capital) (1.26)y (1+.26(d)/365)

where y = the number of full years that have elapsed since the Effective Date
and d = the number of days that have elapsed in a partial year

Assuming:

      -     that FPSH Invested Capital = $240,000,000; and

      -     a measurement date three years and 272 days from the Effective Date

IRR Hurdle = ($240,000,000) (1.26) to the power of 3 (1+.26(272)/365) =
$573,109,368.3

<PAGE>

                                                                       EXHIBIT C

                                     TARGETS
                              FIGURES IN MILLIONS

<TABLE>
<CAPTION>
                                                                          TOTAL
CONCEPT                           1Q         2Q         3Q        4Q        FY

<S>                             <C>        <C>        <C>       <C>        <C>
EBITDA FY2003:
  Quarterly                      (0.9)      52.4       20.2      20.8       92.5
  YTD                            (0.9)      51.5       71.7      92.5
  LTM TARGET                                                     92.5
  LTM MINIMUM                                                    83.3

EBITDA FY2004:
  Quarterly                       0.7       53.0       27.0      28.8      109.5
  YTD                             0.7       53.7       80.7     109.5
  LTM TARGET                     94.1       94.7      101.5     109.5
  LTM MINIMUM                    84.7       85.2       91.4      98.6

EBITDA FY2005:
  Quarterly                       1.0       58.0       32.0      35.4      126.4
  YTD                             1.0       59.0       91.0     126.4
  LTM TARGET                    109.8      114.8      119.8     126.4
  LTM MINIMUM                    98.8      103.3      107.8     113.8

EBITDA FY2006:
  Quarterly                       1.1       62.9       34.7      38.4      137.1
  YTD                             1.1       64.0       98.7     137.1
  LTM TARGET                    126.5      131.4      134.1     137.1
  LTM MINIMUM                   113.8      118.3      120.7     123.4

EBITDA FY2007:
  Quarterly                       1.2       67.4       37.2      41.1      146.9
  YTD                             1.2       68.6      105.7     146.9
  LTM TARGET                    137.2      141.7      144.2     146.9
  LTM MINIMUM                   123.5      127.5      129.7     132.2
</TABLE>

"EBITDA" shall mean for any period, Operating Income (Loss) as defined in U.S.
GAAP for such period plus all amounts deducted in arriving at such Operating
Income (Loss) amount in respect of (a) all amounts properly charged for
depreciation of fixed assets and amortization of intangible assets during such
period, (b) legal, professional and other fees incurred in connection with
Seminis' efforts to refinance its debt, or related to the recapitalization,
merger and privatization transactions, (c) one-time expenses related to
severance payments under certain management employment contracts, (d) 50% of
security and incremental personal travel expenses related to Mr. Romo that do
not exceed $2,425,000, (e) non-cash expenses related to the Restricted Stock
Units as defined in the Stockholders' Agreement, (f) management fees paid to Fox
Paine and Mexican SPC, (g) one-time expenses related to restructuring plans, (h)
noncash charges for the impairment of long-lived assets, (i) minus (in the case
of gains) or plus (in the case of losses) on sale of assets, and (j) restricted
stock award charges incurred in the Company's fiscal year ended September 30,
2002.

<PAGE>

                                                                       EXHIBIT D

                               RESTRICTED PERSONS

SEMINIS GLOBAL COMPETITORS

Syngenta
Limagrain
Sakata
Takii
Nunza /Bayer (Sunseeds &Nunheims)
Bejo
Rijk Zwaan
Hazera
Heinz (Heinzseed)

SEMINIS REGIONAL COMPETITORS:

Brotherton
Bakker Brothers
Enza Zaden
De Ruiter
Nong Woo
Known-You
Alliance
Topseed
Isla
Feltrin
Hortec
Daehnfeldt

<PAGE>

                                                                      SCHEDULE I

HOLDINGS OF COMMON STOCK, OPTIONS, WARRANTS AND CO-INVESTMENT RIGHTS AFTER
CLOSING OF TRANSACTIONS CONTEMPLATED BY MERGER AGREEMENT AND FPSH STOCK PURCHASE
AGREEMENT

      The individual holdings of Common Stock of each Stockholder immediately
after the closing of the transactions contemplated in the Merger Agreement and
the FPSH Stock Purchase Agreement (not assuming the exercise of any Options,
Warrants or Co-Investment Rights) are as follows:

<TABLE>
<CAPTION>
                                                                    Number of
                                                                    Shares of
                                                                   Common Stock
                                                                   Held After
            Name                                                     Closing
            ----                                                     -------
<S>                                                                <C>
Fox Paine Capital Fund II, L. P. .............................      34,833,237

Fox Paine Capital Fund II Co-Investors, L.P...................         830,222

E and A `J' Trust ............................................         252,676

FPC Investment GP ............................................         180,483

FPSH Coinvestment Fund I, LLC ................................         147,058

FPSH Coinvestment Fund II, LLC ...............................       2,352,941

FISH Coinvestment Fund III, LLC...............................         590,000

FPSH Coinvestment Fund IV, LLC................................       1,470,588

FPSH Coinvestment Fund V, LLC.................................       7,352,941

Emprima, S.A. de C.V..........................................       4,365,257

Irrevocable Administration and Payment Trust Number
131-4 entered into by Banca Afirme, S.A., Institution
de Banca Multiple, Afirme Grupo Financiero, in its
capacity as Trustee and Pulsar International, S.A. de
C.V., executed on July 23, 2001, as amended ............             3,844,117

Banca Afirme, S.A., Institution de Banca Multiple,
Afirme Grupo Financiero, as Trustee, under the
Administration Trust Number 243-4 (Fideicomiso de
Administration).........................................             3,606,666

Park Financial Group .........................................       1,000,000

Banca Atirme, S.A., Institution de Banca Multiple,
Afirme Grupo Financiero, as trustee, under the
Irrevocable Administration and Payment Trust Number
167-5 (Fideicomiso Irrevocable de Administration y Pago
Numero 167-5)...........................................               900,737

Marcela Gonzalez .............................................         805,598

Conjunto Administrativo Integral, S.A. de. C.V................          42,000

Gaspar Alvarez ...............................................          36,103

Bernardo Jimenez Barrera .....................................           8,000

Franco Campana ...............................................          13,208

Bruno Ferrari ................................................       1,010,047

Charles Edward Green .........................................         3 1,608

Adrian Rodriguez Macedo ......................................          18,378

Luis Maiz.....................................................         195,000

Mateo Mazal ..................................................          53,000

Jean Pierre Posa..............................................          22,014
------------                                                      -------------
Total                                                               63,961,879
</TABLE>

<PAGE>

                                                                      SCHEDULE I

            The individual holdings of Co-Investment Rights immediately after
the closing of the transactions contemplated in the Merger Agreement and the
FPSH Stock Purchase Agreement are as follows:

<TABLE>
<CAPTION>
                                                               Number of
                                                         Co-Investment Rights
      Name                                                Held After Closing
      ----                                                ------------------
<S>                                                     <C>
Desarrollo Consolidado de Negocios, S.A. de C.V...      14,453,036 (vested)

Desarrollo Consolidado de Negocios, S.A. de C.V...      16,560,091 (unvested)

Fox Paine Capital Fund II, L.P....................       1,197,958 (unvested)

Fox Paine Capital Fund II Co-Investors, L.P.......          28,552 (unvested)

E and A `J' Trust.................................           8,690 (unvested)

FPC Investment GP.................................           6,207 (unvested)

FPSH Coinvestment Fund I, LLC.....................           5,058 (unvested)

FPSH Coinvestment Fund II, LLC....................          80,921 (unvested)

FPSH Coinvestment Fund III, LLC...................          20,291 (unvested)

FPSH Coinvestment Fund IV, LLC....................          50,575 (unvested)

FPSH Coinvestment Fund V, LLC.....................         252,877 (unvested)
</TABLE>

<PAGE>

                                                                      SCHEDULE I

      The individual holdings of Warrants immediately after the closing of the
transactions contemplated in the Merger Agreement and the FPSH Stock Purchase
Agreement are as follows:

<TABLE>
<CAPTION>
                                                                  Number of
                                                                Warrants Held
      Name                                                      After Closing
      ----                                                      -------------
<S>                                                           <C>
The Northwestern Mutual Life Insurance Company.......         2,980,839 (vested)
Stichting Pensioenfonds ABP .........................           638,719 (vested)
Stichting Pensioenfonds Voor De Gezondheid,
Geestelijke En Maatschappelijke Belangen.............           106,491 (vested)
FPSH Coinvestment Fund I ............................           147,059 (vested)
</TABLE>

<PAGE>

                                                                      SCHEDULE I

      The individual holdings of Options immediately after the closing of the
transactions in the contemplated FISH Stock Purchase Agreement are as set forth
below. All of the following Options are vested.

<TABLE>
<CAPTION>
                                                                             # OF        # OF        # OF
                                  GRANT         GRANT           ISO/        OPTIONS    OPTIONS     OPTIONS       REMAINING
      EMPLOYEE NAME               DATE          PRICE           NQSO        GRANTED    EXERCISE   FORFEITED       OPTIONS
      -------------               ----          -----           ----        -------    --------   ---------       --------
<S>                             <C>             <C>            <C>        <C>          <C>        <C>           <C>
Jimenez Barrera, Bernardo       10/15/99        7.625           NQSO          3,000                                 3,000
Jimenez Barrera, Bernardo       10/16/00        1.36            NQSO          3,000                                 3,000
Jimenez Barrera, Bernardo       08/09/01        1.18            NQSO          6,000                                 6,000
Jimenez Barrera, Bernardo       04/08/02        1.28            NQSO         15,000                                15,000

Mazal Beja, Mateo               04/08/02        1.28            NQSO         15,000                                15,000

Rodriguez Macedo, Adrian        08/09/01        1.18            NQSO          6,000                                 6,000
Rodriguez Macedo, Adrian        04/08/02        1.28            NQSO         15,000                                15,000

Alvarez Martinez, Gaspar        08/29/00        1.56            ISO           1,200                                 1,200
Alvarez Martinez, Gaspar        10/16/00        1.36            ISO           4,000                                 4,000
Alvarez Martinez, Gaspar        08/09/01        1.18            ISO          15,000                                15,000
Alvarez Martinez, Gaspar        04/08/02        1.28            ISO         141,540                               141,540

Campana, Franco                 10/15/99        7.625           ISO           2,750                                 2,750
Campana, Franco                 08/29/00        1.56            ISO           2,298                                 2,298
Campana, Franco                 10/16/00        1.36            ISO           7,000                                 7,000
Campana, Franco                 08/09/01        1.18            ISO          15,000                                15,000
Campana, Franco                 04/08/02        1.28            ISO          85,965                                85,965

Ferrari, Bruno                  07/01/98        18.71           NQSO         14,100                                14,100
Ferrari, Bruno                  10/15/99        7.625           ISO          16,500                                16,500
Ferrari, Bruno                  08/29/00        1.56            NQSO         27,243                                27,243
Ferrari, Bruno                  10/16/00        1.36            NQSO         15,000                                15,000
Ferrari, Bruno                  08/09/01        1.18            NQSO         25,000                                25,000
Ferrari, Bruno                  04/08/02        1.28            NQSO        241,875                               241,875

Green, Charles E                07/01/98        18.71           ISO           5,741                                 5,741
Green, Charles E                10/15/99        7.625           ISO           8,000                                 8,000
Green, Charles E                08/29/00        1.56            ISO          25,272                                25,272
Green, Charles B                10/16/00        1.36            ISO          15,000                                15,000
Green, Charles E                08/09/01        1.18            ISO          25,000                                25,000
Green, Charles E                04/08/02        1.28            ISO         135,370                               135,370

Posa Mambour, Jean-Pierre       07101/98        18.71           ISO           5,364                                 5,364
Posa Mambour, Jean-Pierre       10/15/99        7.625           NQSO          7,000                                 7,000
Posa Mambour, Jean-Pierre       08/29/00        1.56            NQSO         11,794                                11,794
Posa Mambour, Jean-Pierre       10/16/00        1.36            NQSO          7,000                                 7,000
Posa Mambour, Jean-Pierre       08/09/01        1.18            NQSO         15,000                                15,000
Posa Mambour, Jean-Pierre       04108/02        1.28            NQSO         83,345                                83,345

Romo Garza, Alfonso Carlos      10/15/99        7.625           NQSO         80,000                                80,000
Romo Garza, Alfonso Carlos      10/16/00        1.36            NQSO         80,000                                80,000
Romo Garza, Alfonso Carlos      08/09/01        1.18            NQSO         96,000                                96,000
Romo Garza, Alfonso Carlos      04/08/02        1.28            NQSO        460,715                               460,715
-------------------------------------------------------------------------------------------------------------------------
Total                                                                     1,738,072                             1,738,072
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                     SCHEDULE II

                      OWNERSHIP INTERESTS IN CERTAIN PERSON

a.    STOCKHOLDERS

CAI:

Alfonso Romo Garza
Gerardo Mahuad Mendez

Emprima:

CAI,
Desarrollo Empresarial Regiomontano, S.A. de C.V.
Alejandro Torres Quiroga

Park.

Crescent Investment Services, Ltd.

DCN:

Gustavo Romo Garza
Mateo Mazal Beja

b.    BENEFICIARIES AND SETTLOR OF THE ARG TRUST

SETTLOR:

Alfonso Romo Garza

Beneficiaries:

California Commerce Bank
Aladin, N.V.
Servasa, S.A. de C.V.<PAGE>
                                                                   EXHIBIT 10.11
                                                                  EXECUTION COPY

                  AMENDMENT NO. 1, dated as of January 15, 2004 (this "Amendment
No. 1"), to the Credit Agreement dated as of September 29, 2003 (the "Credit
Agreement") among Seminis Vegetable Seeds, Inc., a California corporation (the
"Borrower"); Seminis, Inc., a Delaware corporation (the "Parent Guarantor"); the
Lenders party thereto; Citicorp North America, Inc., as administrative agent (in
such capacity, the "Administrative Agent") for the Lenders; Cooperatieve
Centrale Raiffeisen-Boerenleenbank B.A., "Rabobank International", New York
Branch ("Rabobank") and CIBC World Markets Corp. ("CIBC"), as co-documentation
agents (in such capacity, the "Co-Documentation Agents"); Harris Trust and
Savings Bank ("Harris"), as syndication agent (in such capacity, the
"Syndication Agent"); and Citigroup Global Markets Inc. ("CGMI") and Harris, as
joint lead arrangers and joint bookrunners (in such capacity, the "Joint Lead
Arrangers"). Capitalized terms used and not otherwise defined herein shall have
the meanings assigned to them in the Credit Agreement.

                  WHEREAS, pursuant to Section 10.08 of the Credit Agreement,
the Borrower and the Lenders desire to amend certain provisions of the Credit
Agreement, such that the terms of the Credit Agreement shall be as set forth in
the conformed copy of the Credit Agreement attached hereto as Exhibit A (the
"Amended Credit Agreement"), giving effect to this Amendment No. 1;

                  WHEREAS, the consent of the Requisite Lenders is necessary to
effect certain covenant and other amendments of this Amendment No. 1, while the
consent of all Lenders is necessary to effect certain pricing amendments of this
Amendment No. 1;

                  NOW, THEREFORE, in consideration of the promises and covenants
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound hereby, agree as follows:

                  SECTION 1. AMENDMENTS.

                  The Credit Agreement (including Schedules 1.01(b), 1.01(c),
1.01(d), 1.01(e), 3.22(d) and 5.18(a) thereto) is hereby amended as set forth in
the Amended Credit Agreement. Each Lender party hereto hereby consents to the
amendment of the Security Agreement to the extent provided in Section
4.03(d)(ii) of the Amended Credit Agreement.

                  SECTION 2. REPRESENTATIONS AND WARRANTIES. The Borrower and
the Parent Guarantor represent and warrant to the Lenders as of the Covenant
Effective Date (as defined below), that:

                  (a)      The execution and delivery of this Amendment No. 1 by
the Borrower and the Parent Guarantor has been duly authorized.

                  (b)      The representations and warranties set forth in the
Credit Agreement, are true and correct in all material respects with the same
effect as if made on the Covenant Effective Date except to the extent such
representations and warranties expressly relate to an earlier date.

                  (c)      At the time of and after giving effect to this
Amendment No. 1, no Default or Event of Default has occurred and is continuing.

<PAGE>

                  SECTION 3. CONDITIONS TO EFFECTIVENESS.

                  (a)      This Amendment No. 1 shall become effective to the
extent set forth in Section 4.03 of the Amended Credit Agreement on the date
(the "Covenant Effective Date") on which each of the conditions set forth in
Section 4.03 is satisfied (or waived in accordance with Section 4.03 of the
Amended Credit Agreement).

                  (b)      This Amendment No. 1 shall become effective to the
extent set forth in Section 4.04 of the Amended Credit Agreement on the date
(the "Pricing Effective Date") on which each of the conditions set forth in
Section 4.04 is satisfied (or waived in accordance with Section 4.04 of the
Amended Credit Agreement).

                  SECTION 4. COUNTERPARTS. This Amendment No. 1 may be executed
in any number of counterparts and by different parties hereto on separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original, but all of which when taken together shall constitute a single
instrument. Delivery of an executed counterpart of a signature page of this
Amendment No. 1 by facsimile transmission shall be effective as delivery of a
manually executed counterpart hereof.

                  SECTION 5. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED
BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

                  SECTION 6. HEADINGS. The headings of this Amendment No. 1 are
for purposes of reference only and shall not limit or otherwise affect the
meaning hereof.

                            [SIGNATURE PAGES FOLLOW]

                                      -2-
<PAGE>

                                                                  EXECUTION COPY

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment No. 1 to be duly executed as of the date first above written.

                            SEMINIS VEGETABLE SEEDS, INC.
                              as Borrower

                            By:        /s/ Gaspar Alvarez
                                ------------------------------------------------
                                Name:  Gaspar Alvarez
                                Title: Vice President, Finance and
                                       Worldwide Corporate Comptroller

                            SEMINIS, INC.
                              as Parent Guarantor

                            By:        /s/ Bernardo Jimenez
                                ------------------------------------------------
                                Name:  Bernardo Jimenez
                                Title: Chief Financial Officer

<PAGE>

                            CITICORP NORTH AMERICA, INC.,
                               as Administrative Agent and Lender

                            By:        /s/ John W. Peruzzi
                                ------------------------------------------------
                                Name:  John W. Peruzzi
                                Title: Vice President

                            CITIGROUP GLOBAL MARKETS INC.
                               as Joint Lead Arranger and Joint Bookrunner

                            By:        /s/ John W. Peruzzi
                                ------------------------------------------------
                                Name:  John W. Peruzzi
                                Title: Vice President

<PAGE>

                            HARRIS TRUST AND SAVINGS BANK,
                               as Joint Lead Arranger, Joint Bookrunner,
                               Syndication Agent and Lender

                            By:        /s/ Jennifer Wendron
                                ------------------------------------------------
                                Name:  Jennifer Wendron
                                Title: Vice President

<PAGE>

                            CIBC WORLD MARKETS CORP.,
                               as Co-Documentation Agent

                            By:        /s/ Paul J. Chakmak
                                ------------------------------------------------
                                Name:  Paul J. Chakmak
                                Title: Managing Director

                            CIBC INC.,
                               as Lender

                            By:        /s/ Paul J. Chakmak
                                ------------------------------------------------
                                Name:  Paul J. Chakmak
                                Title: Managing Director
                                       CIBC World Markets Corp., as AGENT

<PAGE>

                            COOPERATIEVE CENTRALE
                               RAIFFEISEN-BOERENLEENBANK B.A.,
                               "RABOBANK INTERNATIONAL",
                               NEW YORK BRANCH,
                               As Co-Documentation Agent and as Lender

                            By:        /s/ Brett Delfino
                                ------------------------------------------------
                                Name:  Brett Delfino
                                Title: Executive Director

                            By:        /s/ Ivan Rodriguez
                                ------------------------------------------------
                                Name:  Ivan Rodriguez
                                Title: Vice President

<PAGE>

                            American Express Certificate Company
                            By: American Express Asset Management Group Inc.
                            as Collateral Manager
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ Yvonne E. Stevens
                                ------------------------------------------------
                                Name:  Yvonne E. Stevens
                                Title: Senior Managing Director

<PAGE>

                            AMMC CDO II, LIMITED
                            By: American Money Management Corp.,
                                as Collateral Manager

                            By:        /s/ David P. Meyer
                                ------------------------------------------------
                                Name:  David P. Meyer
                                Title: Vice President

<PAGE>

                            ANTARES CAPITAL CORPORATION
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ David Mahon
                                ------------------------------------------------
                                Name:  David Mahon
                                Title: Director

<PAGE>

                            APEX (IDM) COD I, LTD.
                            ELC (CAYMAN) LTD. 1999-II
                            BABSON CLO LTD. 2003-I
                            SUFFIELD CLO, LIMITED

                            By: David L. Babson & Company Inc. as Collateral
                                Manager

                            By:        /s/ Adrienne Musgnug
                                ------------------------------------------------
                                Name:  Adrienne Musgnug
                                Title: Managing Director

<PAGE>

                            APEX (Trimaran) CDO I, LTD.
                            By: Trimaran Advisors, L.L.C.
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ David M. Millison
                                ------------------------------------------------
                                Name:  David M. Millison
                                Title: Managing Director

<PAGE>

                            By: Callidus Debt Partners CLO Fund II, Ltd.
                                By: Its Collateral Manager,
                                Callidus Capital Management, LLC
                                ------------------------------------------------
                                as a Lender

                            By:        /s/ Mavis Taintor
                                ------------------------------------------------
                                Name:  Mavis Taintor
                                Title: Managing Director

<PAGE>

                            Centurion CDO II, Ltd.
                            By:  American Express Asset Management Group Inc.
                            as Collateral Manager
                            ----------------------------------------------------
                            as a Lender

                            By:        /s/ Leanne Stavrakis
                                ------------------------------------------------
                                Name:  Leanne Stavrakis
                                Title: Director - Operations

<PAGE>

                            Centurion CDO VI, Ltd.
                            By: American Express Asset Management Group, Inc.,
                            As Collateral Manager
                            ----------------------------------------------------
                            as a Lender

                            By:        /s/ Leanne Stavrakis
                                ------------------------------------------------
                                Name:  Leanne Stavrakis
                                Title: Director - Operations

<PAGE>

                            Citibank, NA
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ Rosemary M. Bell
                                ------------------------------------------------
                                Name:  Rosemary M. Bell
                                Title: Director & Vice President

<PAGE>

                            COLUMBIA FLOATING RATE
                            ADVANTAGE FUND
                            (f/k/a Liberty Floating Rate Advantage Fund)

                            By: Columbia Management Advisors, Inc.
                            As Advisor
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ Kathleen A. Zam
                                ------------------------------------------------
                                Name:  Kathleen A. Zam
                                Title: Senior Vice President

<PAGE>

                            COLUMBIA FLOATING RATE
                            LIMITED LIABILITY COMPANY
                            (f/k/a Stein Roe Floating Rate Limited Liability
                            Company)

                            By: Columbia Management Advisors, Inc.
                            As Advisor
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ Kathleen A. Zam
                                ------------------------------------------------
                                Name:  Kathleen A. Zam
                                Title: Senior Vice President

<PAGE>

                            Denali Capital LLC, managing member of DC Fund-
                            ing Partners, portfolio manager for DENALI
                            CAPITAL CLO I, LTD., or an affiliate
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ John P. Thacker
                                ------------------------------------------------
                                Name:  John P. Thacker
                                Title: Chief Credit Officer

<PAGE>

                            Denali Capital LLC, managing member of DC Fund-
                            ing Partners, portfolio manager for DENALI
                            CAPITAL CLO II, LTD., or an affiliate
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ John P. Thacker
                                ------------------------------------------------
                                Name:  John P. Thacker
                                Title: Chief Credit Officer

<PAGE>

                            Denali Capital LLC, managing member of DC Fund-
                            ing Partners, portfolio manager for DENALI
                            CAPITAL CLO III, LTD., or an affiliate
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ John P. Thacker
                                ------------------------------------------------
                                Name:  John P. Thacker
                                Title: Chief Credit Officer

<PAGE>

                            EATON VANCE INSTITUTIONAL SENIOR LOAN FUND
                            By: EATON VANCE MANAGEMENT
                            AS INVESTMENT ADVISOR
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ Michael B. Botthof
                                ------------------------------------------------
                                Name:  Michael B. Botthof
                                Title: Vice President

<PAGE>

                            EATON VANCE SENIOR FLOATING-RATE TRUST
                            By: EATON VANCE MANAGEMENT
                            AS INVESTMENT ADVISOR
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ Michael B. Botthof
                                ------------------------------------------------
                                Name:  Michael B. Botthof
                                Title: Vice President

<PAGE>

                            EATON VANCE SENIOR INCOME TRUST
                            By: EATON VANCE MANAGEMENT
                            AS INVESTMENT ADVISOR
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ Michael B. Botthof
                                ------------------------------------------------
                                Name:  Michael B. Botthof
                                Title: Vice President

<PAGE>

                            Flagship CLO 2001-1
                            ----------------------------------------------------
                            as a Lender By: Flagship Capital Management, Inc.

                            By:        /s/ Eric S. Meyer
                                ------------------------------------------------
                                Name:  Eric S. Meyer
                                Title: Director

<PAGE>

                            Flagship CLO II
                            ----------------------------------------------------
                            as a Lender By: Flagship Capital Management, Inc.

                            By:        /s/ Eric S. Meyer
                                ------------------------------------------------
                                Name:  Eric S. Meyer
                                Title: Director

<PAGE>

                            FORTIS CAPITAL CORP., as Lender

                            By:       /s/ [Authorized Signatory]
                                ------------------------------------------------
                                Name: [Authorized Signatory]
                                Title:

                            FORTIS CAPITAL CORP., as Lender

                            By:        /s/ [Authorized Signatory]
                                ------------------------------------------------
                                Name:  [Authorized Signatory]
                                Title: Vice President

<PAGE>

                            GENERAL ELECTRIC CAPITAL CORPORATION
                            as a Lender

                            By:        /s/ Karl Kieffer
                                ------------------------------------------------
                                Name:  Karl Kieffer
                                Title: Duly Authorized Signatory

<PAGE>

                            GRAYSON & CO
                            By: BOSTON MANAGEMENT AND RESEARCH
                            AS INVESTMENT ADVISOR
                            ----------------------------------------------------
                            as a Lender

                            By:        /s/ Michael B. Botthof
                                ------------------------------------------------
                                Name:  Michael B. Botthof
                                Title: Vice President

<PAGE>

                            GULF STREAM-COMPASS CLO 2003-1 LTD.
                            By: Gulf Stream Asset Management LLC
                            As Collateral Manager
                            ----------------------------------------------------
                            as a Lender

                            By:        /s/ Barry K. Love
                                ------------------------------------------------
                                Name:  Barry K. Love
                                Title: Chief Credit Officer

<PAGE>

                            Hanover Square CLO Ltd.
                            By: Blackstone Dept. Advisors L.P.
                            As Collateral Manager
                            ----------------------------------------------------
                            as a Lender

                            By:        /s/ Dean T. Criares
                                ------------------------------------------------
                                Name:  Dean T. Criares
                                Title: Managing Director

<PAGE>

                            Harbour View CLO IV, Ltd.
                            ----------------------------------------------------
                            as a Lender

                            By:        /s/ Lisa Chaffer
                                ------------------------------------------------
                                Name:  LISA CHAFFER
                                Title: Manager

<PAGE>

                            Harbour View CLO V, Ltd.
                            ----------------------------------------------------
                            as a Lender

                            By:            /s/ Lisa Chaffer
                                ------------------------------------------------
                                Name:  LISA CHAFFER
                                Title: Manager

<PAGE>

                            IDS Life Insurance Company
                            By: American Express Asset Management Group,
                            Inc. as Collateral Manager
                            ----------------------------------------------------
                            as a Lender

                            By:        /s/ Yvonne E. Stevens
                                ------------------------------------------------
                                Name:  Yvonne E. Stevens
                                Title: Senior Managing Director

<PAGE>

                            IKB Capital Corporation, as Lender

                            By:        /s/ David Snyder
                                ------------------------------------------------
                                Name:  David Snyder
                                Title: President
                                       IKB Capital Corporation

<PAGE>

                            JP Morgan Chase Bank, as trustee of the Antares
                                Funding Trust created under the Trust Agreement
                                dated as of November 30, 1999
                                ------------------------------------------------
                                as a Lender

                            By:        /s/ Leslie Hundley
                                ------------------------------------------------
                                Name:  Leslie Hundley
                                Title: Officer

<PAGE>

                            KZH CYPRESSTREE-1 LLC
                            ----------------------------------------------------
                              as a Lender

                            By:        /s/ Hi Hua
                                ------------------------------------------------
                                Name:  Hi Hua
                                Title: Authorized Agent

<PAGE>

                            KZH ING-2 LLC
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Hi Hua
                                ------------------------------------------------
                                Name:  Hi Hua
                                Title: Authorized Agent

<PAGE>

                            KZH STERLING LLC
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Hi Hua
                                ------------------------------------------------
                                Name:  Hi Hua
                                Title: Authorized Agent

<PAGE>

                            LAVONARK III CDO
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Aladdin Capital Management
                                ------------------------------------------------
                                Name:  [Authorized Signatory]
                                Title: Director - Research

<PAGE>

                            LASALLE BANK N.A., AS CUSTODIAN
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Lora Peloquin
                                ------------------------------------------------
                                Name:  Lora Peloquin
                                Title: First Vice President

<PAGE>

                            MAPLEWOOD (CAYMAN) LIMITED
                            By: David L. Babson & Company Inc. under
                                delegated authority from Massachusetts Mutual
                                Life Insurance Company as Investment Manager

                            By:        /s/ Adrienne Musgnug
                                ------------------------------------------------
                                Name:  Adrienne Musgnug
                                Title: Managing Director

<PAGE>

                            MARINER CDO 2002, LTD.
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ David Mahon
                                ------------------------------------------------
                                Name:  David Mahon
                                Title: Vice President

<PAGE>

                            MASSACHUSETTS MUTUAL LIFE INSURANCE
                             COMPANY
                            By: David L. Babson & Company Inc. as Investment
                             Adviser

                            By:        /s/ Adrienne Musgnug
                                ------------------------------------------------
                                Name:  Adrienne Musgnug
                                Title: Managing Director

<PAGE>

                            MERRILL LYNCH CAPITAL, a division of
                            MERRILL LYNCH BUSINESS FINANCIAL
                            SERVICES INC.
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Sheila C. Weimer
                                ------------------------------------------------
                                Name:  Sheila C. Weimer
                                Title: Vice President

<PAGE>

                            Nureen Diversified Dividend and Income Fund
                            [LENDER], as Lender

                            By:        /s/ Lenny Mason
                                ------------------------------------------------
                                Name:  Lenny Mason
                                Title: Portfolio Manager

<PAGE>

                            Nureen Senior Income Fund
                            [LENDER], as Lender

                            By:        /s/ Lenny Mason
                                ------------------------------------------------
                                Name:  Lenny Mason
                                Title: Portfolio Manager

<PAGE>

                            OAK HILL CREDIT PARTNERS I, LIMITED

                            By: Oak Hill CLO Management I, LLC
                            As Investment Manager

                            By:          /s/ Scott D. Krase
                                ------------------------------------------------
                                Name:  Scott D. Krase
                                Title: Vice President

<PAGE>

                            OAK HILL CREDIT PARTNERS II, LIMITED

                            By: Oak Hill CLO Management II, LLC
                            As Investment Manager

                            By:        /s/ Scott D. Krase
                                ------------------------------------------------
                                Name:  Scott D. Krase
                                Title: Vice President

<PAGE>

                            OAK HILL CREDIT PARTNERS III, LIMITED

                            By: Oak Hill CLO Management III, LLC
                            As Investment Manager

                            By:        /s/ Scott D. Krase
                                ------------------------------------------------
                                Name:  Scott D. Krase
                                Title: Vice President

<PAGE>

                            OAK HILL SECURITIES FUND II, L.P.

                            By: Oak Hill Securities GenPar II, L.P.
                                its General Partner

                            By: Oak Hill Securities MGP II, Inc.,
                                its General Partner

                            By:        /s/ Scott D. Krase
                                ------------------------------------------------
                                Name:  Scott D. Krase
                                Title: Vice President

<PAGE>

                            OAK HILL SECURITIES FUND, L.P.

                            By: Oak Hill Securities GenPar, L.P.
                                its General Partner

                            By: Oak Hill Securities MGP, Inc.,
                                its General Partner

                            By:        /s/ Scott D. Krase
                                ------------------------------------------------
                                Name:  Scott D. Krase
                                Title: Vice President

<PAGE>

                            Oppenheimer Senior Floating Rate Fund
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Lisa Chaffee
                                ------------------------------------------------
                                Name:  LISA CHAFFEE
                                Title: Manager

<PAGE>

                            PROMETHEUS INVESTMENT FUND NO. 1 LTD
                            BY: HVB CREDIT ADVISORS, LLC

                            By:        /s/ Arika Lakhmi
                                ------------------------------------------------
                                Name:  Arika Lakhmi
                                Title: Associate Director

                            By:        /s/ Elizabeth Tallmadge
                                ------------------------------------------------
                                Name:  Elizabeth Tallmadge
                                Title: Managing Director
                                       Chief Investment Officer

<PAGE>

                            SENIOR DEBT PORTFOLIO
                            By: Boston Management and Research
                                as Investment Advisor
                            ----------------------------------------------------
                            as a Lender

                            By:        /s/ Michael Botthof
                                ------------------------------------------------
                                Name:  Michael Botthof
                                Title: Vice President

<PAGE>

                            Sequils-Centurion V, Ltd.
                            By: American Express Asset Management Group Inc.
                            As Collateral Manager
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Leanne Stavrakis
                                ------------------------------------------------
                                Name:  Leanne Stavrakis
                                Title: Director - Operations

<PAGE>

                            SIERRA CLO I, LTD
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ John M. Casparian
                                ------------------------------------------------
                                Name:  John M. Casparian
                                Title: Chief Operating Officer
                                       Centre Pacific LLP (Manager)

<PAGE>

                            SRF 2000, INC.
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Diana M. Himes
                                ------------------------------------------------
                                Name:  Diana M. Himes
                                Title: Assistant Vice President

<PAGE>

                            SRF TRADING, INC.
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Diana M. Himes
                                ------------------------------------------------
                                Name:  Diana M. Himes
                                Title: Assistant Vice President

<PAGE>

                            STANWICH LOAN FUNDING LLC
                            ----------------------------------------------------
                             as a Lender

                            By:        /s/ Diana M. Himes
                                ------------------------------------------------
                                Name:  Diana M. Himes
                                Title: Assistant Vice President

<PAGE>

                            The Sumitomo Trust & Banking Co., Ltd.

                            By:        /s/ Elizabeth A. Quirk
                                ------------------------------------------------
                                Name:  Elizabeth A. Quirk
                                Title: Vice President

<PAGE>

                            SunAmerica Senior Floating Rate Fund Inc.
                            By: Stanfield Capital Partners LLC
                            as subadvisor
                            ----------------------------------------------------
                                as a Lender

                            By:        /s/ Christopher A. Bondy
                                ------------------------------------------------
                                Name:  Christopher A. Bondy
                                Title: Partner

<PAGE>

                            TOLLI & CO.
                            By: Eaton Vance Management
                                as Investment Advisor
                                ------------------------------------------------
                                 as a Lender

                            By:        /s/ Michael B. Botthof
                                ------------------------------------------------
                                Name:  Michael B. Botthof
                                Title: Vice President

<PAGE>

                            TORONTO DOMININ (NEW YORK), INC.
                            ----------------------------------------------------
                            as a Lender

                            By:        /s/ Michelle Manning
                                ------------------------------------------------
                                Name:  Michelle Manning
                                Title: Vice President

<PAGE>

                            TRS I LLC
                            as Lender

                            By:        /s/ Deborah O'Keeffe
                                ------------------------------------------------
                                Name:  Deborah O'Keeffe
                                Title: Vice President

<PAGE>

                            TRS CALLISTO, LLC
                            ----------------------------------------------------
                            as Lender

                            By:        /s/ Deborah O'Keeffe
                                ------------------------------------------------
                                Name:  Deborah O'Keeffe
                                Title: Vice President

<PAGE>

                            Trumbull THC, Ltd.
                            ----------------------------------------------------
                            as a Lender

                            By:    /s/ Michelle Manning
                                ------------------------------------------------
                            Name:  Michelle Manning
                            Title: Attorney-in-Fact

<PAGE>

                            UBS AG, Stamford Branch
                            By: UBS Securities LLC, as Agent

                                [Authorized Signatory]
                            ----------------------------------------------------
                            as a Lender

                            By:    /s/ Jennifer L. Poccia
                                ------------------------------------------------
                            Name:  Jennifer L. Poccia
                            Title: Associate Director
                                   Banking Products Services

<PAGE>

                            Union Square CDO Ltd.
                            By: Blackstone Debt Advisors L.P.
                            As Collateral Manager
                            ----------------------------------------------------
                            as a Lender

                            By:    /s/ Dean T. Criares
                                ------------------------------------------------
                            Name:  Dean T. Criares
                            Title: Managing Director

<PAGE>

                            Venture CDO 2002, Limited
                            By its investment advisor, MJX Asset
                            Management, LLC

                            as a Lender

                            By:    /s/ [Authorized Signatory]
                                ------------------------------------------------
                            Name:  [Authorized Signatory]
                            Title:

<PAGE>

                            Venture III CDO Limited
                            By its investment advisor, MJX Asset
                            Management, LLC

                            as a Lender

                            By:    /s/ [Authorized Signatory]
                                ------------------------------------------------
                            Name:  [Authorized Signatory]
                            Title:
<PAGE>

                                                                  CONFORMED COPY

                                  $165,000,000

                                CREDIT AGREEMENT

                         DATED AS OF SEPTEMBER 29, 2003,
       AS AMENDED BY AMENDMENT NO. 1 THERETO DATED AS OF JANUARY 15, 2004

                                      AMONG

                         SEMINIS VEGETABLE SEEDS, INC.,
                                  AS BORROWER,

                                 SEMINIS, INC.,
                              AS PARENT GUARANTOR,

                         THE LENDERS REFERRED TO HEREIN,

                          CITICORP NORTH AMERICA, INC.,
                            AS ADMINISTRATIVE AGENT,

                            CIBC WORLD MARKETS CORP.
                                       AND
              COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
                   "RABOBANK INTERNATIONAL", NEW YORK BRANCH,
                           AS CO-DOCUMENTATION AGENTS,

                         HARRIS TRUST AND SAVINGS BANK,
                              AS SYNDICATION AGENT,

                                       AND

                          CITIGROUP GLOBAL MARKETS INC.
                                       AND
                         HARRIS TRUST AND SAVINGS BANK,
                  AS JOINT LEAD ARRANGERS AND JOINT BOOKRUNNERS

                           CAHILL GORDON & REINDEL LLP
                                 80 PINE STREET
                            NEW YORK, NEW YORK 10005

<PAGE>

                                TABLE OF CONTENTS

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

                                   DEFINITIONS

SECTION 1.01.   Defined Terms.............................................................................     1
SECTION 1.02.   Classification of Loans and Borrowings....................................................    31
SECTION 1.03.   Terms Generally...........................................................................    32

                                   ARTICLE II

                                   THE CREDITS

SECTION 2.01.   Credit Commitments........................................................................    32
SECTION 2.02.   Procedure for Borrowing...................................................................    33
SECTION 2.03.   Conversion and Continuation Options for Loans.............................................    34
SECTION 2.04.   Swingline Loans...........................................................................    34
SECTION 2.05.   Optional and Mandatory Prepayments of Loans; Repayments of Term B Loans...................    36
SECTION 2.06.   Letters of Credit.........................................................................    38
SECTION 2.07.   Repayment of Loans; Evidence of Debt......................................................    42
SECTION 2.08.   Interest Rates and Payment Dates..........................................................    43
SECTION 2.09.   Computation of Interest...................................................................    43
SECTION 2.10.   Fees......................................................................................    43
SECTION 2.11.   Termination, Reduction or Adjustment of Commitments.......................................    44
SECTION 2.12.   Inability to Determine Interest Rate; Unavailability of
                Deposits; Inadequacy of Interest Rate.....................................................    45

SECTION 2.13.   Pro Rata Treatment and Payments...........................................................    45
SECTION 2.14.   Illegality................................................................................    46
SECTION 2.15.   Requirements of Law.......................................................................    47
SECTION 2.16.   Taxes.....................................................................................    48
SECTION 2.17.   Indemnity.................................................................................    50
SECTION 2.18.   Change of Lending Office..................................................................    50
SECTION 2.19.   Sharing of Setoffs........................................................................    50
SECTION 2.20.   Assignment of Commitments Under Certain Circumstances.....................................    51

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

SECTION 3.01.   Organization, etc.........................................................................    51
SECTION 3.02.   Due Authorization, Non-Contravention, etc.................................................    52
SECTION 3.03.   Government Approval, Regulation, etc......................................................    52
SECTION 3.04.   Validity, etc.............................................................................    52
SECTION 3.05.   Representations and Warranties in the Merger Agreement....................................    52
SECTION 3.06.   Financial Information.....................................................................    52
SECTION 3.07.   No Material Adverse Effect................................................................    53
SECTION 3.08.   Litigation................................................................................    53
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                             Page
                                                                                                             ----
<S>                                                                                                          <C>
SECTION 3.09.   Compliance with Laws and Agreements.......................................................    53
SECTION 3.10.   Subsidiaries..............................................................................    53
SECTION 3.11.   Ownership of Real Properties..............................................................    53
SECTION 3.12.   Ownership of Personal Property............................................................    54
SECTION 3.13.   Taxes.....................................................................................    54
SECTION 3.14.   Pension and Welfare Plans.................................................................    54
SECTION 3.15.   Environmental Warranties..................................................................    55
SECTION 3.16.   Regulations U and X.......................................................................    56
SECTION 3.17.   Disclosure; Accuracy of Information; Pro Forma Balance Sheets and
                Projected Financial Statements............................................................    56

SECTION 3.18.   Insurance.................................................................................    57
SECTION 3.19.   Labor Matters.............................................................................    57
SECTION 3.20.   Solvency..................................................................................    57
SECTION 3.21.   Securities................................................................................    58
SECTION 3.22.   Indebtedness Outstanding; Certain Operating Leases Terminated.............................    58
SECTION 3.23.   Security Documents........................................................................    58
SECTION 3.24.   Anti-Terrorism Laws.......................................................................    59

                                   ARTICLE IV

                                   CONDITIONS

SECTION 4.01.   Conditions to Initial Credit Extension....................................................    60
SECTION 4.02.   Conditions to Each Credit Event...........................................................    66
SECTION 4.03.   Conditions to Effectiveness of Amendment No. 1 with Respect to Majority Matters...........    66
SECTION 4.04.   Conditions to the Effectiveness of Amendment No. 1 with Respect to
                the Applicable Rate Provisions ...........................................................    68

                                    ARTICLE V

                              AFFIRMATIVE COVENANTS

SECTION 5.01.   Financial Information, Reports, Notices, etc..............................................    69
SECTION 5.02.   Compliance with Laws, etc.................................................................    71
SECTION 5.03.   Maintenance of Properties.................................................................    71
SECTION 5.04.   Insurance.................................................................................    71
SECTION 5.05.   Books and Records; Visitation Rights......................................................    72
SECTION 5.06.   Environmental Covenant....................................................................    72
SECTION 5.07.   Information Regarding Collateral..........................................................    73
SECTION 5.08.   Existence; Conduct of Business............................................................    74
SECTION 5.09.   Performance of Obligations................................................................    74
SECTION 5.10.   Additional Mortgages......................................................................    74
SECTION 5.11.   Pledge of Additional Collateral...........................................................    75
SECTION 5.12.   Further Assurances........................................................................    75
SECTION 5.13.   Use of Proceeds...........................................................................    76
SECTION 5.14.   Payment of Taxes..........................................................................    76
SECTION 5.15.   Equal Security for Loans and Notes........................................................    76
SECTION 5.16.   Guarantees................................................................................    76
SECTION 5.17.   Subordination of Intercompany Loans.......................................................    76
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                             Page
                                                                                                             ----
<S>                                                                                                          <C>
SECTION 5.18.   Certain Post-Closing Matters..............................................................    76

                                   ARTICLE VI

                               NEGATIVE COVENANTS

SECTION 6.01.   Indebtedness; Certain Equity Securities...................................................    77
SECTION 6.02.   Liens.....................................................................................    80
SECTION 6.03.   Fundamental Changes; Line of Business.....................................................    82
SECTION 6.04.   Investments, Loans, Advances, Guarantees and Acquisitions.................................    82
SECTION 6.05.   Asset Sales...............................................................................    84
SECTION 6.06.   Sale and Leaseback Transactions...........................................................    85
SECTION 6.07.   Restricted Payments.......................................................................    85
SECTION 6.08.   Transactions with Affiliates..............................................................    85
SECTION 6.09.   Restrictive Agreements....................................................................    86
SECTION 6.10.   Amendments or Waivers of Certain Documents; Prepayments of Certain Indebtedness...........    87
SECTION 6.11.   No Other "Designated Senior Indebtedness".................................................    87
SECTION 6.12.   Senior Leverage Ratio.....................................................................    87
SECTION 6.13.   Total Leverage Ratio......................................................................    87
SECTION 6.14.   Capital Expenditures......................................................................    87
SECTION 6.15.   Limitation on Activities of Parent Guarantor and PII, LLC.................................    88
SECTION 6.16.   Anti-Terrorism Law........................................................................    88
SECTION 6.17.   Embargoed Person..........................................................................    88
SECTION 6.18.   Anti-Money Laundering.....................................................................    89

                                   ARTICLE VII

                                EVENTS OF DEFAULT

SECTION 7.01.   Listing of Events of Default..............................................................    89
SECTION 7.02.   Action if Bankruptcy......................................................................    91
SECTION 7.03.   Action if Other Event of Default..........................................................    91
SECTION 7.04.   Action if Event of Termination............................................................    92

                                  ARTICLE VIII

                                   THE AGENTS

SECTION 8.01.   The Agents................................................................................    92

                                   ARTICLE IX

                                    GUARANTEE

SECTION 9.01.   Guarantee of the Parent Guarantor.........................................................    93
SECTION 9.02.   Amendments, etc. with Respect to the Applicable Obligations...............................    94
SECTION 9.03.   Guarantee Absolute and Unconditional......................................................    94
SECTION 9.04.   Reinstatement.............................................................................    95
SECTION 9.05.   Payments..................................................................................    95
</TABLE>

                                      -iii-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                             Page
                                                                                                             ----
<S>                                                                                                          <C>
SECTION 9.06.   Independent Obligations...................................................................    96
SECTION 9.07.   Defenses of Parent Guarantor..............................................................    96
SECTION 9.08.   Agreement to Pay; Subordination...........................................................    96

                                    ARTICLE X

                                  MISCELLANEOUS

SECTION 10.01.  Notices...................................................................................    97
SECTION 10.02.  Survival of Agreement.....................................................................    98
SECTION 10.03.  Binding Effect............................................................................    98
SECTION 10.04.  Successors and Assigns....................................................................    98
SECTION 10.05.  Expenses; Indemnity.......................................................................   101
SECTION 10.06.  Right of Setoff...........................................................................   103
SECTION 10.07.  Applicable Law............................................................................   103
SECTION 10.08.  Waivers; Amendment........................................................................   103
SECTION 10.09.  Interest Rate Limitation..................................................................   107
SECTION 10.10.  Entire Agreement..........................................................................   107
SECTION 10.11.  WAIVER OF JURY TRIAL......................................................................   107
SECTION 10.12.  Severability..............................................................................   107
SECTION 10.13.  Counterparts..............................................................................   107
SECTION 10.14.  Headings..................................................................................   107
SECTION 10.15.  Jurisdiction; Consent to Service of Process...............................................   108
SECTION 10.16.  Confidentiality...........................................................................   108
SECTION 10.17.  Citigroup Direct Website Communications...................................................   109
SECTION 10.18.  Collateral Agent as Joint Creditor........................................................   110
SECTION 10.19.  Collateral Agent as Attorney-in-Fact Regarding Foreign Collateral.........................   110
</TABLE>

<TABLE>
<S>                  <C>
EXHIBIT A            Form of Administrative Questionnaire
EXHIBIT B            Form of Borrowing Request
EXHIBIT C            Form of Assignment and Acceptance
EXHIBIT D            Form of Collateral Sharing Agreement
EXHIBIT E            Form of Compliance Certificate
EXHIBIT F            Form of Indemnity, Subrogation and Contribution Agreement
EXHIBIT G-1          Form of Term B Note
EXHIBIT G-2          Form of Revolving Note
EXHIBIT H            Form of Closing Certificate
EXHIBIT I            Form of Subsidiary Guarantee Agreement
EXHIBIT J            Form of Pledge Agreement
EXHIBIT K            Form of Security Agreement
EXHIBIT L-1          Form of Opinion of Milbank, Tweed, Hadley & McCloy LLP
EXHIBIT L-2          Form of Opinion of General Counsel of the Parent Guarantor
EXHIBIT L-3          Form of Opinion of Local Counsel
EXHIBIT M            Form of Solvency Certificate
EXHIBIT N            Form of Mortgage
EXHIBIT O            Form of Real Property Officer's Certificate
EXHIBIT P            Subordinated Notes Indenture
EXHIBIT Q            Form of Mortgage Amendment
</TABLE>

                                      -iv-

<PAGE>

<TABLE>
<S>                  <C>
SCHEDULE 1.01(a)     Certain Operating Leases to Be Terminated as of the Effective Date
SCHEDULE 1.01(b)     Inactive Subsidiaries as of the Amendment No. 1 Date
SCHEDULE 1.01(c)     Joint Venture Entities as of the Amendment No. 1 Date
SCHEDULE 1.01(d)     Subsidiary Loan Parties as of the Amendment No. 1 Date
SCHEDULE 1.01(e)     Excluded Non-U.S. Subsidiaries
SCHEDULE 2.01        Lenders and Commitments
SCHEDULE 3.08        Certain Litigation
SCHEDULE 3.10        Subsidiaries
SCHEDULE 3.11(b)     Leased and Owned Real Property
SCHEDULE 3.15(a)     Facilities/Properties Not in Compliance with Environmental Laws
SCHEDULE 3.15(b)     Environmental Claims
SCHEDULE 3.15(c)     Hazardous Material
SCHEDULE 3.18        Insurance
SCHEDULE 3.22(a)     Indebtedness to Remain Outstanding
SCHEDULE 3.22(b)     Indebtedness to Be Paid
SCHEDULE 3.22(c)     Liens to Be Terminated
SCHEDULE 3.22(d)     Liens to Remain Outstanding
SCHEDULE 3.23(d)     Mortgage Filing Offices
SCHEDULE 4.01(f)     Local Counsel
SCHEDULE 4.01(s)(A)  Mortgaged Properties
SCHEDULE 4.01(s)(C)  Title Insurance Amounts
SCHEDULE 5.18(a)     Post Closing Collateral Matters
SCHEDULE 5.18(b)     Post Closing Landlord Lien Waiver, Access Agreement and Consent
SCHEDULE 6.04        Existing Investments
SCHEDULE 6.05(vi)    Certain Assets Sales
SCHEDULE 6.05(xi)    Certain Real Property Sales Expected After the Effective Date
SCHEDULE 6.09        Existing Restrictions
SCHEDULE 6.14        Capital Expenditures to Be Effected as Part of the Recapitalization Transactions
</TABLE>

                                       -v-

<PAGE>

                  CREDIT AGREEMENT (this "Agreement") dated as of September 29,
2003, as amended by Amendment No. 1 thereto dated as of January 15, 2004
("Amendment No. 1"), among SEMINIS VEGETABLE SEEDS, INC., a California
corporation (the "Borrower"); SEMINIS, INC., a Delaware corporation (the "Parent
Guarantor"); the financial institutions listed in Schedule 2.01, as such
Schedule may from time to time be supplemented and amended (the "Lenders");
CITICORP NORTH AMERICA, INC., as administrative agent (in such capacity, the
"Administrative Agent") for the Lenders; COOPERATIEVE CENTRALE
RAIFFEISEN-BOERENLEENBANK B.A., "RABOBANK INTERNATIONAL", NEW YORK BRANCH
("RABOBANK") and CIBC WORLD MARKETS CORP. ("CIBC"), as co-documentation agents
(in such capacity, the "Co-Documentation Agents"); HARRIS TRUST AND SAVINGS BANK
("Harris"), as syndication agent (in such capacity, the "Syndication Agent");
and CITIGROUP GLOBAL MARKETS INC. ("CGMI") and Harris, as joint lead arrangers
and joint bookrunners (in such capacity, the "Joint Lead Arrangers").

                  WHEREAS, the Borrower intends to prepay certain of its
Obligations in respect of Term B Loans under the Credit Agreement dated as of
September 29, 2003 (the "Pre-Amendment Credit Agreement"), among Borrower,
Parent Guarantor, the Lenders party thereto, the Administrative Agent, the
Co-Documentation Agents, the Syndication Agent and the Original Joint Lead
Arrangers, with certain of the net proceeds from the issuance of New
Subordinated Notes (as defined herein), such that after giving effect thereto,
there will be at most $90.0 million of outstanding Term B Loans under the
Pre-Amendment Credit Agreement;

                  WHEREAS, in connection therewith, Borrower desires to enter
into Amendment No. 1, which will amend the terms and provisions of the
Pre-Amendment Credit Agreement in the form hereof in order to, among other
things, reflect the modifications set forth above; and

                  WHEREAS, the Lenders are willing to amend the Pre-Amendment
Credit Agreement and are willing to extend credit to Borrower, and the other
parties hereto are willing to amend the Pre-Amendment Credit Agreement, in each
case upon the terms and subject to the conditions set forth herein.

                  NOW, THEREFORE, in consideration of the promises and covenants
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound hereby, agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

                  SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms shall have the meanings specified below:

                  "425B Alta" has the meaning assigned to such term in Section
5.10.

                  "ABR Borrowing" means a Borrowing comprised of ABR Loans.

                  "ABR Loan" means any Loan bearing interest at a rate
determined by reference to the Alternate Base Rate in accordance with the
provisions of Article II.

                  "Additional Collateral" has the meaning assigned to such term
in Section 5.11.

                  "Administrative Agent" has the meaning assigned to such term
in the preamble hereto.

<PAGE>

                  "Administrative Questionnaire" means an Administrative
Questionnaire in the form of Exhibit A.

                  "Affiliate" of any Person means any other Person which,
directly or indirectly, controls, is controlled by or is under common control
with such Person (excluding any trustee under, or any committee with
responsibility for administering, any Plan). A Person shall be deemed to be
"controlled by" any other Person if such other Person possesses, directly or
indirectly, power to direct or cause the direction of the management and
policies of such Person whether by contract or otherwise.

                  "Agent Fees" has the meaning assigned to such term in Section
2.10(c).

                  "Agent Parties" has the meaning assigned to such term in
Section 10.17(c).

                  "Agents" means the Administrative Agent and the Collateral
Agent.

                  "Aggregate Revolving Credit Exposure" means the aggregate
amount of the Revolving Lenders' Revolving Credit Exposures.

                  "Agreement" means this Credit Agreement, as amended by
Amendment No. 1, and as further amended, restated, amended and restated,
supplemented or otherwise modified from time to time.

                  "Alternate Base Rate" means for any day, a rate per annum
equal to the highest of (a) the Administrative Agent's Base Rate in effect on
such day, (b) 0.5% per annum above the latest three-month moving average of
secondary market morning offering rates in the United States for three-month
certificates of deposit of major United States money market banks, such
three-month moving average being determined weekly on each Monday (or, if any
such day is not a Business Day, on the next succeeding Business Day) for the
three-month period ending on the next previous Friday by the Administrative
Agent on the basis of such rates reported by certificate of deposit dealers to
and published by the Federal Reserve Bank of New York or, if such publication
shall be suspended or terminated, on the basis of quotations for such rates
received by the Administrative Agent from three New York certificate of deposit
dealers of recognized standing selected by the Administrative Agent, in either
case adjusted to the nearest 0.25% or, if there is no nearest 0.25%, to the next
higher 0.25% (the "Certificate of Deposit Rate"), and (c) the Federal Funds Rate
in effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due
to a change in the Base Rate, the Certificate of Deposit Rate or the Federal
Funds Rate shall be effective as of the opening of business on the effective day
of such change in the Base Rate, the Certificate of Deposit Rate or the Federal
Funds Rate, respectively.

                  "Amendment No. 1" has the meaning assigned to such term in the
introduction hereof.

                  "Amendment No. 1 Date" has the meaning assigned to such term
in Section 4.03 hereof.

                  "Anti-Terrorism Law" has the meaning assigned to such term in
Section 3.24.

                  "Applicable Rate" means (1) for any Class of Loan as to which
the conditions set forth in Section 4.04 shall have been satisfied, for any day
the applicable rate per annum set forth in the table below (x) under the caption
"ABR Loans Spread," in the case of ABR Loans, and (y) under the caption
"Eurodollar Loans Spread," in the case of Eurodollar Loans, in each case based
upon the Total Leverage Ratio and Senior Leverage Ratio as of the most recent
determination date:

                                       -2-

<PAGE>

with respect to the Term B Loans, if the Total Leverage Ratio as of the end of
the most recent fiscal quarter is less than or equal to 4.50:1.00 the percentage
per annum set forth opposite the Senior Leverage Ratio at such fiscal quarter
end:

<TABLE>
<CAPTION>
                                                     Eurodollar Term B       ABR Term B
               Senior Leverage Ratio                    Loans Spread        Loans Spread
---------------------------------------------------  -----------------      ------------
<S>                                                  <C>                    <C>
                > 2.00:1.00                                  2.75%               1.75%
       < or = 2.00:1.00 > 1.50:1.00                          2.50%               1.50%
            < or = 1.50:1.00                                 2.25%               1.25%
</TABLE>

with respect to the Term B Loans, if the Total Leverage Ratio as of the end of
the most recent fiscal quarter is greater than 4.50:1.00 the percentage per
annum set forth opposite the Senior Leverage Ratio at such fiscal quarter end:

<TABLE>
<CAPTION>
                                                     Eurodollar Term B      ABR Term B Loans
               Senior Leverage Ratio                    Loans Spread             Spread
---------------------------------------------------  -----------------      ----------------
<S>                                                  <C>                    <C>
                   > 2.00:1.00                            3.00%                 2.00%
         < or = 2.00:1.00 > 1.50:1.00                     2.75%                 1.75%
                < or = 1.50:1.00                          2.50%                 1.50%
</TABLE>

with respect to the Revolving Loans, if the Total Leverage Ratio as of the end
of the most recent fiscal quarter is less than or equal to 4.50:1.00 the
percentage per annum set forth opposite the Senior Leverage Ratio at such fiscal
quarter end:

<TABLE>
<CAPTION>
                                                         Eurodollar
                                                      Revolving Loans         ABR Revolving
              Senior Leverage Ratio                        Spread             Loans Spread
---------------------------------------------------  -----------------      ----------------
<S>                                                  <C>                    <C>
                   > 2.00:1.00                              2.50%                 1.50%
         < or = 2.00:1.00 > 1.50:1.00                       2.25%                 1.25%
               < or = 1.50:1.00                             2.00%                 1.00%
</TABLE>

with respect to the Revolving Loans, if the Total Leverage Ratio as of the end
of the most recent fiscal quarter is greater than 4.50:1.00 the percentage per
annum set forth opposite the Senior Leverage Ratio at such fiscal quarter end:

<TABLE>
<CAPTION>
                                                         Eurodollar
                                                      Revolving Loans         ABR Revolving
              Senior Leverage Ratio                        Spread             Loans Spread
---------------------------------------------------  -----------------      ----------------
<S>                                                  <C>                    <C>
                > 2.00:1.00                                2.75%                 1.75%
    < or = 2.00:1.00 > 1.50:1.00                           2.50%                 1.50%
             < or  = 1.50:1.00                             2.25%                 1.25%
</TABLE>

                  For purposes of such calculation of the Applicable Rate, (i)
the Total Leverage Ratio and Senior Leverage Ratio shall be determined as of the
end of each fiscal quarter of the Borrower's fiscal year based upon the
Borrower's consolidated financial statements delivered pursuant to Section
5.01(a) or (b) and (ii) each change in the Applicable Rate resulting from a
change in the Total Leverage Ratio and Senior Leverage Ratio shall be effective
on the date on which the Administrative Agent shall have received the applicable
financial statements and a Compliance Certificate calculating the Total Leverage

                                       -3-

<PAGE>

Ratio and Senior Leverage Ratio. If at any time the Borrower has not submitted
to the Administrative Agent the applicable information as and when required
under Section 5.01(a) or (b), the Applicable Rate shall be the highest rate set
forth in the tables above until such time as the Borrower has provided the
information required under Section 5.01(a) or (b). Within one (1) Business Day
of receipt of the applicable information as and when required under Section
5.01(a) or (b), the Administrative Agent shall give each Lender telefacsimile or
telephonic notice (confirmed in writing) of the Applicable Rate in effect from
such date; and

(2) for any Class of Loan as to which the conditions set forth in Section 4.04
shall not have been satisfied, for any day (i) with respect to Term B Loans, (A)
2.25% per annum, in the case of ABR Loans, and (B) 3.25% per annum, in the case
of Eurodollar Loans, and (ii) with respect to Revolving Loans, (A) before the
Trigger Date, (x) 2.00% per annum, in the case of ABR Loans, and (y) 3.00% per
annum, in the case of Eurodollar Loans, and (B) on and after the Trigger Date,
the applicable rate per annum set forth in the table below (x) under the caption
"ABR Revolving Loans Spread," in the case of ABR Loans, and (y) under the
caption "Eurodollar Revolving Loans Spread," in the case of Eurodollar Loans, in
each case based upon the Total Leverage Ratio as of the most recent
determination date:

<TABLE>
<CAPTION>
                                                             EURODOLLAR
                                      ABR REVOLVING LOANS     REVOLVING
     TOTAL LEVERAGE RATIO                   SPREAD          LOANS SPREAD
--------------------------------      ------------------    ------------
<S>                                   <C>                   <C>
         > 4.00 to 1.00                      2.00%             3.00%
       < or = 4.00 to 1.00                   1.75%             2.75%
         > 3.50 to 1.00                      1.50%             2.50%
       < or = 3.50 to 1.00
</TABLE>

                  For purposes of such calculation of the Applicable Rate with
respect to Revolving Loans on and after Trigger Date, (i) the Total Leverage
Ratio shall be determined as of the end of each fiscal quarter of the Borrower's
fiscal year based upon the Borrower's consolidated financial statements
delivered pursuant to Section 5.01(a) and (b) and (ii) each change in the
Applicable Rate resulting from a change in the Total Leverage Ratio shall be
effective three (3) Business Days after the date on which the Administrative
Agent shall have received the applicable financial statements and a Compliance
Certificate calculating the Total Leverage Ratio. If at any time the Borrower
has not submitted to the Administrative Agent the applicable information as and
when required under Section 5.01(a) or (b), the Applicable Rate shall be the
highest rate set forth in the table above until such time as the Borrower has
provided the information required under Section 5.01(a) or (b). Within one (1)
Business Day or receipt of the applicable information as and when required under
Section 5.01(a) or (b), the Administrative Agent shall give each Lender
telefacsimile or telephonic notice (confirmed in writing) of the Applicable Rate
in effect from such date.

                  "Asset Sale" means any direct or indirect sale, transfer,
lease, conveyance or other disposition by the Parent Guarantor or any of its
Subsidiaries of any of its property or assets, including any sale or issuance of
any Equity Interests of any Subsidiary, except (a) sales, dispositions and
leases permitted by Sections 6.05(i), (ii), (iii), (iv) and (v), and (b) any
such transaction or series of transactions which, if an Asset Sale, would not
generate Net Proceeds in excess of $1.0 million (or, when taken together with
all other such transactions, in excess of $3.0 million in any twelve-month
period).

                                       -4-

<PAGE>

                  "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 10.04(b)), and accepted by the Administrative
Agent, in the form of Exhibit C or such other form as shall be approved by the
Administrative Agent.

                  "Authorized Officer" means, with respect to the Borrower,
those of its officers whose signature and incumbency has been certified to the
Administrative Agent and the Lenders pursuant to Section 4.01(c) or any
successor thereto.

                  "Available Revolving Credit Commitment" means as to any
Revolving Lender, at any time of determination, an amount equal to such
Revolving Lender's Revolving Credit Commitment at such time minus such Revolving
Lender's Revolving Credit Exposure at such time.

                  "Base Amount" has the meaning assigned to such term in Section
6.14.

                  "Base Rate" means the rate of interest per annum publicly
announced from time to time by the Administrative Agent as its base rate in
effect at its principal office in New York City (the Base Rate not being
intended to be the lowest rate of interest charged by the Administrative Agent
in connection with extensions of credit to debtors) (any change in such rate
announced by the Administrative Agent shall take effect at the opening of
business on the day specified in the public announcement of such change).

                  "Board" means the Board of Governors of the Federal Reserve
System of the United States.

                  "Borrower" has the meaning assigned to such term in the
preamble to this Agreement.

                  "Borrowing" means a Loan or group of Loans to the Borrower of
the same Class and Type made (including through a conversion or continuation) by
the applicable Lenders on a single date and as to which a single Interest Period
is in effect.

                  "Borrowing Date" means any Business Day specified in a notice
pursuant to Section 2.02 as a date on which the Borrower requests Loans to be
made hereunder.

                  "Borrowing Request" has the meaning assigned to such term in
Section 2.02(a).

                  "Business Day" means a day other than a Saturday, Sunday or
other day on which commercial banks in New York, New York are authorized or
required by law to close.

                  "B.V. Holdco" means SVS Europe Holding, B.V.

                  "Capital Expenditures" means, for any period, (a) any and all
expenditures made by the Borrower or any of its Subsidiaries in such period for
assets that are, or should be, set forth as "additions to plant, property and
equipment" on the financial statement prepared in accordance with GAAP, whether
such asset is purchased for cash or financed as an account payable or by the
incurrence of Indebtedness, accrued as a liability or otherwise, and (b) all
Capital Lease Obligations of the Borrower and its Subsidiaries (excluding any
Capital Lease Obligation to the extent that it refinances or replaces an
existing Capital Lease Obligation).

                  "Capital Lease Obligations" means all monetary or financial
obligations of the Borrower and its Subsidiaries under any leasing or similar
arrangement conveying the right to use real or personal

                                       -5-

<PAGE>

property, or a combination thereof, which, in accordance with GAAP, would or
should be classified and accounted for as capital leases, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP and the stated maturity thereof shall be the date of the last payment
of rent or any other amount due under such lease prior to the first date on
which such lease may be terminated by the lessee without payment of a penalty.

                  "Cash Interest Expense" means, for any period, Consolidated
Interest Expense for such period, including imputed interest expense for Capital
Lease Obligations and excluding any interest expense not payable in cash (such
as, for example, amortization of discount and amortization of debt issuance
costs), net of interest income.

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

                  "CERCLIS" means the Comprehensive Environmental Response,
Compensation and Liability Information System list promulgated by the U.S.
Environmental Protection Agency pursuant to CERCLA.

                  "CGMI" has the meaning assigned to such term in the preamble
hereto.

                  "Change in Control" means

                  (a) prior to such time as there shall have been consummated an
         Initial Public Offering of the Parent Guarantor, the occurrence of any
         of the following: (i) Fox Paine shall cease to control the largest
         percentage of voting power of voting Equity Interests of the Parent
         Guarantor (as compared to any other "person" or "group" (as such terms
         are used in Sections 13(d) and 14(d) of the Exchange Act) and counting
         Mr. Romo and his Affiliates as a single "group" as used in Sections
         13(d) and 14(d) of the Exchange Act), (ii) Fox Paine shall cease to
         control at least 40% of the voting power of the voting Equity Interests
         of the Parent Guarantor or (iii) Fox Paine shall cease to have the same
         rights to appoint a majority of the board of directors of the Parent
         Guarantor upon the occurrence of specified events which it has as of
         the Effective Date as set forth in Section 5.2 of the Stockholders'
         Agreement, other than in accordance with the terms of the Stockholders'
         Agreement as in effect on the Effective Date;

                  (b) from and after the time that there shall have been
         consummated an Initial Public Offering of the Parent Guarantor, the
         occurrence of any of the following: (i) (I) any "person" or "group" (as
         such terms are used in Sections 13(d) and 14(d) of the Exchange Act),
         other than Fox Paine, is or becomes the beneficial owner (as defined in
         Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly,
         of voting stock representing 35% or more of the voting power of the
         voting Equity Interests of the Parent Guarantor (counting Mr. Romo and
         his Affiliates as a "group" as used in Sections 13(d) and 14(d) of the
         Exchange Act) and (II) Fox Paine ceases to control the largest
         percentage of the voting power of the voting Equity Interests of the
         Parent Guarantor; or (ii) during any period of two consecutive years,
         individuals who at the beginning of such period constituted the board
         of directors of the Parent Guarantor (together with any new directors
         whose election to such board of directors or whose nomination for
         election was approved by a vote of at least 66 2/3% of the directors of
         the Parent Guarantor then still in office who were either directors at
         the beginning of such period or whose election or nomination for
         election was previously so approved) cease for any reason to constitute
         at least a majority of the board of directors of the Parent Guarantor;
         or

                                       -6-

<PAGE>

                  (c) at any time, the Parent Guarantor ceases to own 100% of
         the Equity Interests of the Borrower.

                  "Charges" has the meaning assigned to such term in Section
10.09.

                  "CIBC" has the meaning assigned to such term in the preamble
hereto.

                  "Class" when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are
Revolving Loans, Term B Loans or Swingline Loans, and when used in reference to
any Commitment, refers to whether such Commitment is a Revolving Credit
Commitment or Term B Commitment, and when used in reference to any Lender,
refers to whether such Lender is a Revolving Lender or a Term B Lender.

                  "Closing Certificate" means a certificate substantially in the
form of Exhibit H.

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

                  "Co-Documentation Agents" has the meaning assigned to such
term in the preamble hereto.

                  "Collateral" means any and all "Collateral," "Mortgaged
Property" or "Trust Property," as defined in any applicable Security Document.

                  "Collateral Account" means the collateral account or
sub-account established and maintained by the Collateral Agent in its name as
Collateral Agent for the benefit of the Secured Parties, in accordance with the
provisions of the Security Agreement.

                  "Collateral Agent" means Citicorp North America, Inc., in its
capacity as collateral agent for the Secured Parties under the Security
Documents.

                  "Collateral Sharing Agreement" means the Collateral Sharing
Agreement, substantially in the form of Exhibit D, between the Borrower and the
Collateral Agent for the benefit of the Secured Parties.

                  "Commitment" means, with respect to any Lender, such Lender's
Revolving Credit Commitment or Term B Commitment or any combination thereof (as
the context requires).

                  "Commitment Fee" has the meaning assigned to such term in
Section 2.10(a).

                  "Commitment Fee Average Daily Amount" has the meaning assigned
to such term in Section 2.10(a).

                  "Commitment Fee Percentage" means, for any day (i) prior to
the Trigger Date, 0.50% per annum, and (ii) on and after the Trigger Date, the
applicable rate per annum set forth in the table below, based on the Total
Leverage Ratio as of the most recent determination date:

<TABLE>
<CAPTION>
   Total Leverage Ratio          Commitment Fee Percentage
------------------------------   -------------------------
<S>                              <C>
    > 3.50 to 1.0                          0.50%
 < or = 3.50 to 1.0                       0.375%
</TABLE>

                                       -7-

<PAGE>

                  For purposes of such calculation of the Commitment Fee
Percentage on and after the Trigger Date, (i) the Total Leverage Ratio shall be
determined as of the end of each fiscal quarter of the Borrower's fiscal year
based upon the Borrower's consolidated financial statements delivered pursuant
to Section 5.01(a) or (b) and (ii) each change in the Commitment Fee Percentage
resulting from a change in the Total Leverage Ratio shall be effective three (3)
Business Days after the date on which the Administrative Agent shall have
received the applicable financial statements and a Compliance Certificate
calculating the Total Leverage Ratio. If at any time the Borrower has not
submitted to the Administrative Agent the applicable information as and when
required under Section 5.01(a) or (b), the Commitment Fee Percentage shall be
the highest percentage set forth in the table above until such time as the
Borrower has provided the information required under Section 5.01(a) or (b).
Within one (1) Business Day of receipt of the applicable information as and when
required under Section 5.01(a) or (b), the Administrative Agent shall give each
Lender telefacsimile or telephonic notice (confirmed in writing) of the
Commitment Fee Percentage in effect from such date.

                  "Commitment Fee Termination Date" has the meaning assigned to
such term in Section 2.10(a).

                  "Commitment Percentage" means the percentage of the Total
Revolving Credit Commitment represented by such Lender's Revolving Credit
Commitment. If the Revolving Credit Commitments have terminated or expired, the
Commitment Percentage shall be determined based upon the Revolving Credit
Commitments most recently in effect, giving effect to any assignments.

                  "Communications" has the meaning assigned to such term in
Section 10.17(a).

                  "Compliance Certificate" means a certificate from a Financial
Officer of the Parent Guarantor, substantially in the form of Exhibit E.

                  "Conduit Financing Arrangement" has the meaning assigned to
such term in Section 2.16.

                  "Consolidated Current Assets" means, with respect to any
Person as at any date of determination, the total assets of such Person and its
consolidated Subsidiaries which should properly be classified as current assets
on a consolidated balance sheet of such Person and its consolidated Subsidiaries
in accordance with GAAP.

                  "Consolidated Current Liabilities" means, with respect to any
Person as at any date of determination, the total liabilities of such Person and
its consolidated Subsidiaries which should properly be classified as current
liabilities (other than the current portion of any Loans) on a consolidated
balance sheet of such Person and its consolidated Subsidiaries in accordance
with GAAP. For the avoidance of doubt Consolidated Current Liabilities shall
exclude any liabilities arising in respect of Preferred Stock.

                  "Consolidated EBITDA" means, for any period, Consolidated Net
Income for such period (a) plus all amounts deducted in arriving at such
Consolidated Net Income amount in respect of (i) interest expense, amortization
or write-off of debt discount, (ii) foreign, federal, state and local income
Taxes for such period, (iii) charges for depreciation of fixed assets and
amortization of intangible assets during such period, (iv) legal, professional
and other fees and expenses incurred in connection with efforts of the Parent
Guarantor to refinance its debt, and related to the Recapitalization
Transactions, (v) severance packages payable in connection with the termination
of any officer, director or employee of the Parent Guarantor or any of its
Subsidiaries, (vi) expenses relating to any Permitted Acquisition (and including
in respect of any related financing transactions), (vii) non-cash expenses
relating to Stock Plans, (viii) non-cash charges for the impairment of
long-lived assets, and (ix) fees and expenses relating to the

                                       -8-

<PAGE>

New Transactions, (b) minus (in the case of gains) or plus (in the case of
losses), gains or losses on sale of assets, (c) minus (in the case of gains) or
plus (in the case of losses) non-cash charges relating to foreign currency gains
or losses, (d) plus in the case of non-cash minority interest loss and minus in
the case of non-cash minority interest income, (e) plus (in the case of items
deducted in arriving at Consolidated Net Income) and minus (in the case of items
added in arriving at Consolidated Net Income) non-cash charges resulting from
changes in accounting principles, (f) plus to the extent included in
Consolidated Net Income, non-cash restricted stock award charges incurred in the
Parent Guarantor's fiscal year ended September 30, 2002, (g) plus extraordinary
loss as defined by GAAP, (h) minus the sum of (x) interest income, and (y)
extraordinary income or gains as defined by GAAP, (i) plus payments of Permitted
Management Fees and (j) excluding the impact of any purchase accounting
adjustments which may be allocated to (x) in-process research and development in
the Parent Guarantor's income statement and (y) inventory in the Parent
Guarantor's balance sheet to the extent such adjustments reflect differences
between the historical carrying amounts and the fair market value of the
inventory, and, consistent with such treatment, when the affected inventory is
sold, Consolidated EBITDA shall be calculated as if such purchase adjustments
had not been made.

                  "Consolidated Indebtedness" means, at a particular date, the
aggregate stated balance sheet amount of all Indebtedness of the Parent
Guarantor and its Subsidiaries determined on a consolidated basis in accordance
with GAAP at such date.

                  "Consolidated Interest Expense" means, with respect to the
Parent Guarantor and its Subsidiaries on a consolidated basis for any period,
the sum of (a) gross interest expense for such period, including (i) the
amortization of debt discounts, (ii) the amortization of all fees (including
fees with respect to Hedging Agreements) payable in connection with the
incurrence of Indebtedness to the extent included in interest expense and (iii)
the portion of any payments or accruals with respect to Capital Lease
Obligations allocable to interest expense, and (b) capitalized interest. For the
avoidance of doubt, Consolidated Interest Expense shall exclude any amounts in
respect of dividends on, or accrued value of, Preferred Stock.

                  "Consolidated Net Income" means, for any period, the net
income or loss of the Parent Guarantor and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP; provided that there
shall be excluded therefrom (i) the income or loss of any Person (other than
consolidated Subsidiaries of the Borrower) in which any other Person (other than
the Parent Guarantor or any of its Subsidiaries) has a joint interest, except to
the extent of the amount of dividends or other distributions actually paid to
the Parent Guarantor or any of its Subsidiaries by such Person during such
period, (ii) the cumulative effect of a change in accounting principles during
such period, (iii) any net after-tax income (loss) from discontinued operations
and any net after-tax gains or losses on disposal of discontinued operations,
(iv) the income or loss of any Person accrued prior to the date it becomes a
Subsidiary or is merged into or consolidated with the Parent Guarantor or any of
its Subsidiaries or that Person's assets are acquired by the Parent Guarantor or
any of its Subsidiaries, and (v) the income of any consolidated Subsidiary to
the extent that declaration of payment of dividends or similar distributions by
that Subsidiary of that income is not at the time permitted by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Subsidiary.

                  "Consolidated Working Capital" means, at any date, the excess
of Consolidated Current Assets on such date in excess of Consolidated Current
Liabilities on such date.

                  "control" means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
person, whether through the ownership of voting securities, by contract or
otherwise, and "controlling" and "controlled" have meanings correlative thereto.

                                       -9-

<PAGE>

                  "Credit Event" has the meaning assigned to such term in
Section 4.02.

                  "Debt Incurrence" has the meaning assigned to such term in
Section 2.05(c)(ii).

                  "Default" means any Event of Default, any Event of Termination
and any event or condition which upon notice, lapse of time or both would
constitute an Event of Default or Event of Termination.

                  "Default Rate" has the meaning set forth in Section 2.08(c).

                  "Designated Senior Indebtedness" has the meaning assigned to
such term in Section 6.11.

                  "Destruction" means any and all damage to, or loss or
destruction of, all or any portion of the Property of the Parent Guarantor, the
Borrower or any of its Subsidiaries resulting in payments of more than $100,000
for any Property.

                  "Dollars" or "$" means lawful money of the United States of
America.

                  "Domestic Subsidiary" means any Subsidiary of the Borrower
that is not a Non-U.S. Subsidiary.

                  "Effective Date" means the date on which the conditions
specified in Section 4.01 are satisfied (or waived in accordance with Section
10.08).

                  "Embargoed Person" has the meaning assigned to such term in
Section 6.17.

                  "Engagement Letter" means (a) the Securities Engagement and
Amended and Restated Credit Facilities Commitment and Engagement Letter among
the Parent Guarantor, the Borrower, (i) the Administrative Agent and CGMI, dated
as of January 6, 2004, and (ii) CIBC and CIBC, Inc., dated as of January 14,
2004; (b) the Securities Engagement Letter among the Parent Guarantor, the
Borrower and (i) Rabo Securities USA Inc., dated as of January 15, 2004, and
(ii) Harris Nesbitt Corp., dated as of January 15, 2004; and (c) the Amended
Credit Facilities Commitment Letter among the Parent Guarantor, the Borrower and
(i) Rabobank, dated as of January 15, 2004, and (ii) Harris, dated as of January
15, 2004.

                  "Environment" means ambient air, surface water and groundwater
(including potable water, navigable water and wetlands), the land surface or
subsurface strata, natural resources such as flora and fauna, indoor air or as
otherwise defined in any applicable Environmental Law.

                  "Environmental Claim" means any written accusation,
allegation, notice of violation, claim, demand, order, directive, cost recovery
action or other cause of action by, or on behalf of, any Governmental Authority
or any other Person for damages, injunctive or equitable relief, personal injury
(including sickness, disease or death), Remedial Action or Remedial Action
costs, tangible or intangible property damage, natural resource damages,
nuisance, pollution, any adverse effect on the Environment caused by any
Hazardous Material, or for fines, penalties or restrictions, resulting from or
based upon: (a) the violation or alleged violation of any Environmental Law or
Environmental Permit; (b) the presence, use, handling, generation,
transportation, storage, treatment or disposal of any Hazardous Material; (c)
exposure to any Hazardous Material; or (d) a Release or threatened Release
(including sudden or non-sudden, accidental or non-accidental Releases).

                  "Environmental Laws" means any and all applicable treaties,
laws (including common law), rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions or binding agreements

                                      -10-

<PAGE>

issued, promulgated or entered into by any Governmental Authority, relating in
any way to the Environment, preservation or reclamation of natural resources,
the management, Release or threatened Release of, or exposure to, any Hazardous
Material or to human health and safety matters.

                  "Environmental Liability" means any liability, contingent or
otherwise (including, but not limited to, any liability for damages, natural
resource damage, costs of Remedial Action, administrative oversight costs,
non-compliance, fines, penalties or indemnities), resulting from, based upon or
relating to (a) the violation or alleged violation of any Environmental Law, (b)
the presence, use, handling, generation, transportation, storage, treatment or
disposal of any Hazardous Material, (c) exposure to any Hazardous Material or
(d) a Release or threatened Release.

                  "Environmental Permit" means any permit, approval,
authorization, certificate, license, variance, filing or permission required by
or from any Governmental Authority pursuant to any Environmental Law.

                  "Equity Interests" means shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person.

                  "Equity Issuance" has the meaning assigned to such term in
Section 2.05(c)(i).

                  "Equity Rights" means all securities convertible or
exchangeable for Equity Interests and all warrants, options or other rights to
purchase or subscribe for any Equity Interests, whether or not presently
convertible, exchangeable or exercisable.

                  "EMU Legislation" means the legislative measures of the
European Union for the introduction of, change over to or operation of the Euro
in one or more member states.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as the same may be amended from time to time.

                  "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with any Loan Party, is treated as a single
employer under Sections 414(b) or (c), (m), (o) or (t) of the Code.

                  "ERISA Event" means (a) any "reportable event," as defined in
Section 4043(c) of ERISA or the regulations issued thereunder, with respect to a
Pension Plan (other than an event for which the 30-day notice period is waived
by regulation); (b) the existence with respect to any Pension Plan of an
"accumulated funding deficiency" (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived, the failure to make by its due
date a required installment under Section 412(m) of the Code with respect to any
Pension Plan or the failure to make any required contribution to a Multiemployer
Plan; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of
ERISA of an application for a waiver of the minimum funding standard with
respect to any Pension Plan; (d) the incurrence by any Loan Party or ERISA
Affiliate of any liability under Title IV of ERISA with respect to any Pension
Plan, other than for premiums to the PBGC payable in the ordinary course of
business, and other than liability to Pension Plan participants pursuant to the
terms of the Plan and in the ordinary course of business; (e) the receipt by any
Loan Party or ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to an intention to terminate any Pension Plan, to appoint a
trustee to administer any Pension Plan, or to take any other action with respect
to a Pension Plan that could reasonably be expected to result in material
liability to a Loan Party or a Subsidiary, or the occurrence of any event or
condition which could reasonably be expected to constitute grounds under ERISA
for the distress or involuntary

                                      -11-

<PAGE>

termination of or the appointment of a trustee to administer, under such
circumstances, any Pension Plan; (f) the incurrence by any Loan Party or ERISA
Affiliate of any liability with respect to the withdrawal or partial withdrawal
from any Pension Plan or Multiemployer Plan; (g) the receipt by a Loan Party or
ERISA Affiliate of any written notice imposing or threatening to impose
Withdrawal Liability or a written determination that a Multiemployer Plan is, or
is expected to be, insolvent or in reorganization, within the meaning of Title
IV of ERISA; or (h) the making of any amendment to any Pension Plan which could
reasonably be expected to result in the imposition of a lien or the posting of a
bond or other security.

                  "Euro" or "(euro)" means the single currency of the European
Union as constituted by the treaty of European Union and as referred to in the
EMU Legislation.

                  "Eurodollar Borrowing" means a Borrowing comprised of
Eurodollar Loans.

                  "Eurodollar Loan" means any Loan bearing interest at a rate
determined by reference to the LIBO Rate in accordance with the provisions of
Article II.

                  "Event of Default" has the meaning assigned to such term in
Section 7.01.

                  "Event of Termination" has the meaning assigned to such term
in Section 7.01.

                  "Excess Cash Flow" means, without duplication, for any Person
for any period for which such amount is being determined:

                  (a) Consolidated Net Income (without giving effect to clause
         (iii) of the definition thereof with respect to any cash net after-tax
         income from discontinued operations or after-tax gain on disposal of
         discontinued operations) adjusted to exclude any amount of gain
         included in both (x) Consolidated Net Income and (y) Net Proceeds
         actually applied pursuant to Section 2.05(c)(iii) or (iv), plus

                  (b) the amount of depreciation, amortization of intangibles,
         deferred taxes and other non-cash expenses which, pursuant to GAAP,
         were deducted in determining such Consolidated Net Income of such
         Person, plus

                  (c) decreases in Consolidated Working Capital, minus

                  (d) increases in Consolidated Working Capital, minus

                  (e) the amount of Capital Expenditures and purchases of
         intangibles in such period to the extent funded with Internally
         Generated Funds, minus

                  (f) payments of principal under the Term B Loans on the
         Installment Payment Dates pursuant to Section 2.05(d) or any payments
         or repayments of any other Indebtedness (in the case of any revolving
         credit, only to the extent accompanied by a permanent reduction in
         commitments thereunder), in each case made during such period to the
         extent funded with Internally Generated Funds, minus

                  (g) optional prepayments of principal under the Term B Loans
         and the Revolving Loans to the extent accompanied by a permanent
         reduction of commitments thereunder made during such period to the
         extent funded with Internally Generated Funds, minus

                                      -12-

<PAGE>

                  (h) Permitted Management Fees during such period to the extent
         not deducted from Consolidated Net Income, minus

                  (i) Investments made during such period to the extent funded
         with Internally Generated Funds.

                  For purposes of the foregoing and without duplication,
Consolidated Net Income will exclude (x) all losses on the sale of capital
assets or losses which are out of the ordinary course of business and (y) all
write-downs of capital assets.

                  "Excess Cash Flow Percentage" means, as of any date of
determination, (i) 50% if the Total Leverage Ratio is greater than or equal to
3.5x as of the most recent determination date, (ii) 25% if the Total Leverage
Ratio is less than 3.5x but greater than 3.0x as of the most recent
determination date and (iii) 0% if the Total Leverage Ratio is 3.0x or less as
of the most recent determination date.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Exchange Agreement" means the Amended and Restated Exchange
Agreement dated as of May 30, 2003 by and between the Parent Guarantor and
Savia, S.A. de C.V.

                  "Excluded Debt Issuance" means any issuance of Indebtedness
permitted by Section 6.01(a), other than (1) any amount of Indebtedness incurred
to refinance the Oxnard Mortgage which is not applied to repay the Oxnard
Mortgage or to repay Revolving Loans (without permanent reduction of
commitments) promptly upon receipt of such proceeds, (2) the New Subordinated
Notes, and (3) any Permitted Unsecured Debt.

                  "Excluded Equity Issuance" means the issuance of Equity
Interests or Equity Rights of the Parent Guarantor (i) to Fox Paine; (ii) to a
Person who is an equity investor in the Parent Guarantor arranged by Fox Paine
prior to or on the Effective Date or within 180 days after the Effective Date
for aggregate proceeds of up to $50.0 million; (iii) to Mr. Romo and his
Affiliates; (iv) in connection with any Stock Plans; or (v) to the seller or
sellers in any Permitted Acquisition.

                  "Excluded Non-U.S. Subsidiaries" means each Non-U.S.
Subsidiary set forth on Schedule 1.01(e).

                  "Existing Letters of Credit" shall mean those letters of
credit issued under the Credit Agreement dated as of June 28, 1999 among the
Parent Guarantor, the Borrower, SVS Holland B.V., Harris, Bank of Montreal,
Chicago Branch and the Lenders from time to time party thereto.

                  "Executive Order" has the meaning assigned to such term in
Section 3.24(a).

                  "Facilities" has the meaning assigned to such term in Section
10.16(a).

                  "Federal Funds Rate" means, for any day, the weighted average
of the rates (rounded upwards, if necessary, to the nearest 1/100th of 1%) on
overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York; provided that (a) if the day for
which such rate is to be determined is not a Business Day, the Federal Funds
Rate for such day shall be such rate for such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (b) if
such rate is not so published for any day which is a Business Day, the Federal
Funds Rate

                                      -13-

<PAGE>

for such day shall be the average of the quotations for the day of such
transactions received by the Administrative Agent from three federal funds
brokers of recognized standing selected by it.

                  "Fee Letter" means the Amended and Restated Fee Letter dated
September 8, 2003 among the Administrative Agent, the Joint Lead Arrangers, the
Syndication Agent, the Co-Documentation Agents and the Parent Guarantor.

                  "Fees" means the Commitment Fees, the LC Fees and the Agent
Fees.

                  "Financial Covenants" means those covenants and agreements of
the Loan Parties set forth in Sections 6.12 through 6.14, inclusive.

                  "Financial Officer" of any corporation, partnership or other
entity means the chief financial officer, the principal accounting officer,
treasurer or controller of such corporation, partnership or other entity.

                  "Financing Documents" means the Loan Documents and the
Subordinated Notes Documents.

                  "Financing Transactions" means, collectively, (i) the
execution and delivery by each Loan Party of each of the Loan Documents and the
Borrowing of the Term B Loans and Revolving Loans hereunder in each case on the
Effective Date and (ii) the issuance of the Subordinated Notes on the Effective
Date.

                  "Fiscal Quarter" means any quarter of a Fiscal Year.

                  "Fiscal Year" means any period of twelve consecutive calendar
months ending on September 30; references to a Fiscal Year with a number
corresponding to any calendar year (e.g., the "2003 Fiscal Year") refer to the
Fiscal Year ending on September 30 occurring during such calendar year.

                  "Foreign Plan" means any employee benefit plan, program,
policy, arrangement or agreement maintained or contributed to outside the United
States by any Loan Party or any Subsidiary primarily for the benefit of
employees of any Loan Party or any Subsidiary employed outside the United
States.

                  "Foreign Subsidiary Restructuring Documents" means those
agreements to be executed promptly after the Effective Date relating to the
transactions involving B.V. Holdco, forms of which have been previously
delivered to the Administrative Agent.

                  "Fox Paine" means Fox Paine & Company, LLC and its Affiliates
taken as a whole.

                  "GAAP" means generally accepted accounting principles in the
United States applied on a consistent basis.

                  "Governmental Authority" means any Federal, state, local or
foreign court or governmental agency, authority, instrumentality or regulatory
body, including any central bank.

                  "Guarantee" of or by any Person (the "guarantor") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation that would
become Indebtedness of any other Person (the "primary obligor") in any manner,
whether directly or indirectly, and including any obligation of the guarantor,
direct or indirect,

                                      -14-

<PAGE>

(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof
(including pursuant to a "synthetic lease"), (c) to maintain working capital,
equity capital or any other financial statement condition or liquidity of the
primary obligor so as to enable the primary obligor to pay such Indebtedness or
other obligation or (d) as an account party in respect of any letter of credit
or letter of guaranty issued to support such Indebtedness or obligation;
provided that the term "Guarantee" shall not include endorsements for collection
or deposit in the ordinary course of business. The amount of the obligation
under any Guarantee shall be deemed to be the lower of (a) an amount equal to
the stated or determinable amount of the primary obligation in respect of which
such Guarantee is made (including principal, interest and fees) and (b) the
maximum amount for which such guarantor may be liable pursuant to the terms of
the instrument embodying such Guarantee, unless such primary obligation and the
maximum amount for which such guarantor may be liable are not stated or
determinable, in which case the amount of the obligation under such Guarantee
shall be such guarantor's maximum reasonably anticipated liability in respect
thereof as determined by the guarantor in good faith, irrespective, in any such
case, of any portion of such amount that would, in accordance with GAAP, be
required to be reflected on a balance sheet of such Person.

                  "Guarantee Agreement" means the Subsidiary Guarantee
Agreement, substantially in the form of Exhibit I, made by the wholly owned
Domestic Subsidiaries in favor of the Collateral Agent for the benefit of the
Secured Parties.

                  "Harris" has the meaning assigned to such term in the preamble
hereto.

                  "Hazardous Material" means all pollutants, contaminants,
wastes, substances, chemicals, materials and constituents, including without
limitation, crude oil, petroleum or petroleum distillates, asbestos or
asbestos-containing materials, polychlorinated biphenyls ("PCBs") or
PCB-containing materials or equipment of any nature which can give rise to
Environmental Liability under, or are regulated pursuant to, any Environmental
Law.

                  "Hedging Agreement" means any interest rate protection
agreement, foreign currency exchange agreement, commodity price protection
agreement or other interest or currency exchange rate or commodity price hedging
arrangement and all other similar agreements or arrangements designed to alter
the risks of any Person arising from fluctuations in interest rate, currency
values or commodity prices.

                  "Iberica Transaction" means that certain transaction
constituting the (a) declaration and payment of a dividend by SVS Iberica on
September 30, 2003 which dividend shall take the form of Indebtedness incurred
by SVS Iberica in favor of the Borrower and SVS Europe in the original aggregate
principal amount of (euro)21,603,219 (or the Dollar equivalent of all or a
portion thereof) (of which (euro)16,623,200 (or the Dollar equivalent of all or
a portion thereof) will be owed to SVS Europe and (euro)4,980,019 (or the Dollar
equivalent of all or a portion thereof) will be owed to the Borrower, and (b)
the cash payment by SVS Iberica of up to (euro)396,781 (out of amounts otherwise
distributable on a pro rata basis to the Borrower) to Governmental Authorities
in the country of Spain on account of withholding taxes in connection with such
a dividend; provided, however, that if the amount of such tax payment is less
than (euro)396,781, the original principal amount of such notes may be increased
by the excess of (euro)396,781 over such payment provided further that that
original principal amount of such notes after giving effect to such increase
shall not exceed (euro)22,000,000.

                  "Impermissible Qualification" means, relative to the opinion
or certification of any independent public accountant as to any financial
statement of the Borrower, any qualification or exception to such opinion or
certification:

                                      -15-

<PAGE>

                  (a) which is of a "going concern" or similar nature; or

                  (b) which relates to the limited scope of examination of
         matters relevant to such financial statement.

                  "Inactive Subsidiary" means, as at any date, any Subsidiary of
the Parent Guarantor designated by the Borrower that as at the end of and for
the Fiscal Quarter ending on or most recently ended prior to such date, shall
have assets with a fair market value of less than $5,000 and gross revenues of
less than $5,000, as specified in Schedule 1.01(b) or as otherwise certified in
a Compliance Certificate delivered with respect to such fiscal period pursuant
to Section 5.01(c); provided, however, if the aggregate fair market value of
assets or gross revenues of all Inactive Subsidiaries so designated, taken
together, is greater than or equal to $250,000, no such Subsidiary which when
taken with all such other Subsidiaries causes such aggregate to exceed, in
either case, such amount shall be deemed to be, or be, an Inactive Subsidiary.

                  "Increased Cost Lender" has the meaning assigned to such term
in Section 2.20.

                  "Indebtedness" of any Person means the sum of all indebtedness
of such Person on a consolidated basis (without duplication) with respect to (i)
borrowed money or represented by bonds, debentures, notes and the like; (ii) the
aggregate amount of Capital Lease Obligations; (iii) all indebtedness of third
parties of the type described in the foregoing clause (i) secured by any Lien on
any Property of such Person (if such indebtedness is non-recourse to such Person
and such Person's assets, except for such Property, the amount of such
indebtedness referred to in this clause (iii) to be deemed to be limited to the
fair market value of such Property); (iv) all indebtedness representing the
deferred purchase price of Property or services, excluding trade payables in the
ordinary course of business; (v) letters of credit, performance bonds and other
similar instruments; and (vi) Guarantees in respect of liabilities, obligations
or indebtedness of the kind described in clauses (i) through (v). For the
avoidance of doubt (x) Indebtedness shall exclude any obligations arising in
respect of Preferred Stock and (y) the principal amount of Indebtedness issued
at a premium or discount to the face amount thereof shall be the face amount
thereof.

                  "Indebtedness to Be Paid" means Indebtedness specified in
Section 3.22(b).

                  "Indebtedness to Remain Outstanding" means Indebtedness
specified in Section 3.22(a).

                  "Indemnitee" has the meaning assigned to such term in Section
10.05(b).

                  "Indemnity, Subrogation and Contribution Agreement" means the
Indemnity, Subrogation and Contribution Agreement, substantially in the form of
Exhibit F.

                  "Information Memorandum" means the Confidential Information
Memorandum dated as of September 9, 2003 and posted electronically on Intralinks
relating to the Borrower and this Agreement.

                  "Initial Public Offering" means a primary underwritten public
offering registered under the Securities Act of 1933, as amended, of common
stock of the Parent Guarantor generating gross proceeds to the Parent Guarantor
of at least $100.0 million.

                  "Installment Payment Date" has the meaning assigned to such
term in Section 2.05(d).

                  "Intellectual Property" has the meaning assigned to such term
in Section 3.12(b).

                                      -16-

<PAGE>

                  "Interest Payment Date" means, with respect to any Loan, the
last day of the Interest Period applicable to the Borrowing of which such Loan
is a part and, in the case of a Eurodollar Borrowing with an Interest Period of
more than three months' duration, (a) each day that would have been an Interest
Payment Date had successive Interest Periods of three months' duration been
applicable to such Borrowing and, in addition, (b) the date of any refinancing
of such Borrowing with a Borrowing of a different Type.

                  "Interest Period" means (a) as to any Eurodollar Borrowing,
the period commencing on the date of such Borrowing (including any date on which
such Borrowing shall have been converted from a Borrowing of a different Type)
or on the last day of the immediately preceding Interest Period applicable to
such Borrowing, as the case may be, and (x) ending on the numerically
corresponding day (or, if there is no numerically corresponding day, on the last
day) in the calendar month that is 1, 2, 3 or 6 months (or if available to all
Lenders, 9 or 12 months) thereafter, or (y) with respect to Eurodollar
Borrowings made during the period from the Effective Date until 42 days
thereafter, ending 7 days thereafter, as the Borrower may elect; provided that
prior to the 31st day after the Effective Date, the Borrower shall only be
permitted to request Interest Periods commencing on the date of such Borrowing,
conversion of such Borrowing to a different type or on the last day of the
immediately preceding Interest Period applicable to such Borrowing and ending
seven days from such date, or (b) as to any ABR Borrowing (other than a
Swingline Borrowing), the period commencing on the date of such Borrowing
(including any date on which such Borrowing shall have been converted from a
Borrowing of a different Type) or on the last day of the immediately preceding
Interest Period applicable to such Borrowing, as the case may be, and ending on
the earliest of (i) the next succeeding March 31, June 30, September 30 or
December 31, (ii) the Revolving Credit Maturity Date (in the case of a Revolving
Borrowing) or the Term B Loan Maturity Date (in the case of a Term B Borrowing)
and (iii) the date such Borrowing is prepaid in accordance with Section 2.05 or
converted in accordance with Section 2.03 and (c) as to any Swingline Loan, a
period commencing on the date of such Loan and ending on the earliest of (i) the
fifth Business Day thereafter, (ii) the Revolving Credit Maturity Date (in the
case of a Revolving Credit Borrowing) or the Term B Loan Maturity Date (in the
case of a Term B Borrowing) and (iii) the date such Loan is prepaid in
accordance with Section 2.05; provided, however, that if any Interest Period
would end on a day other than a Business Day, such Interest Period shall be
extended to the next succeeding Business Day unless, in the case of a Eurodollar
Borrowing only, such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next
preceding Business Day. Interest shall accrue from and including the first day
of an Interest Period to but excluding the last day of such Interest Period.

                  "Internally Generated Funds" means funds not constituting the
proceeds of any Indebtedness (other than a Revolving Credit Borrowing), Issuance
of Equity Interests, Asset Sale or insurance recovery.

                  "Investment" has the meaning assigned to such term in Section
6.04.

                  "IP Group Member" means each of the IP Subsidiary and each of
its direct and indirect parents that is not a Loan Party.

                  "IP Subsidiary" means a wholly-owned Non-U.S. Subsidiary of
the Borrower formed on or after the Effective Date and each other Non-U.S.
Subsidiary of the Borrower to which any material portion of the Intellectual
Property transferred to the IP Subsidiary by the Loan Parties is transferred.

                  "Issuing Bank" means Harris or Rabobank, or an affiliate
thereof in its capacity as the issuer of Letters of Credit hereunder, and its
successors in such capacity as provided in Section 2.06(i), and any other
Revolving Lender approved by the Administrative Agent and the Borrower. The
Issuing Bank

                                      -17-

<PAGE>

may, in its discretion, arrange for one or more Letters of Credit to be issued
by Affiliates of the Issuing Bank, in which case the term "Issuing Bank" shall
include any such Affiliate with respect to Letters of Credit issued by such
Affiliate.

                  "Joint Lead Arrangers" has the meaning assigned to such term
in the preamble hereto.

                  "Joint Venture Entity" means each legal entity specified in
Schedule 1.01(c) as a "Joint Venture Entity."

                  "LC Disbursement" means a payment made by the Issuing Bank
pursuant to a Letter of Credit.

                  "LC Exposure" means, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time plus (b) the
aggregate amount of all LC Disbursements that have not yet been reimbursed by or
on behalf of the Borrower at such time. The LC Exposure of any Revolving Lender
at any time shall be its Commitment Percentage of the total LC Exposure at such
time.

                  "LC Fees" has the meaning assigned to such term in Section
2.10(b).

                  "Lender Affiliate" means (a) with respect to any Lender, (i)
an Affiliate of such Lender or (ii) any entity (whether a corporation,
partnership, trust or otherwise) that is engaged in making, purchasing, holding
or otherwise investing in bank loans and similar extensions of credit in the
ordinary course of its business and is administered or managed by a Lender or an
Affiliate of such Lender and (b) with respect to any Lender that is a fund which
invests in bank loans and similar extensions of credit, any other fund that
invests in bank loans and similar extensions of credit and is managed by the
same investment advisor as such Lender or by an Affiliate of such investment
advisor.

                  "Lenders" has the meaning assigned to such term in the
preamble hereto.

                  "Letter of Credit" means any letter of credit issued pursuant
to this Agreement.

                  "LIBO Rate" means, with respect to any Eurodollar Borrowing
for any Interest Period the rate appearing on Page 3750 of the Telerate Service
(or on any successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days (in the event that on
such day the commercial banks in London are authorized or required by law to
close, then three Business Days) prior to the commencement of such Interest
Period, as the rate for Dollar deposits with a maturity comparable to such
Interest Period. In the event that such rate is not available at such time for
any reason, then the "LIBO Rate" with respect to such Eurodollar Borrowing for
such Interest Period shall be the rate supplied to the Administrative Agent at
its request quoted by the Reference Banks in the London interbank market as of
the day two Business Days prior to the commencement of such Interest Period as
the rate for Dollar deposits with a maturity comparable to such Interest Period.

                  "Lien" means, with respect to any asset, (a) any mortgage,
deed of trust, deed to secure debt, lien, pledge, encumbrance, charge,
assignment, hypothecation or security interest in or on such asset or any filing
of any financing statement under the UCC as in effect in the applicable state or
jurisdiction or any other similar notice or lien under any similar notice or
recording statute of any Governmental Authority, in each of the foregoing cases
whether voluntary or imposed by law, (b) the interest of a vendor or a lessor
under any conditional sale agreement, capital lease or title retention agreement
relating to such

                                      -18-

<PAGE>

asset and (c) in the case of securities, any purchase option, call or similar
right of a third party with respect to such securities.

                  "Loan Documents" means this Agreement, the Collateral Sharing
Agreement, the Indemnity, Subrogation and Contribution Agreement, the Guarantee
Agreement, the Security Documents, if requested by a Lender pursuant to Section
2.07(e), each Note, each Compliance Certificate, each Closing Certificate, each
Solvency Certificate, each Perfection Certificate, each Real Property Officer's
Certificate and, solely for purposes of Section 7.01(a), the Fee Letter and the
Engagement Letter.

                  "Loan Parties" means the Borrower, the Parent Guarantor and
the Subsidiary Loan Parties.

                  "Loan Party Information" has the meaning assigned to such term
in Section 10.16(b).

                  "Loans" means the Revolving Loans, the Swingline Loans and the
Term B Loans.

                  "Management Fee Letter" means the letter agreement, dated as
of May 30, 2003, among Fox Paine & Company, LLC, Desarrollo Consolidado de
Negocios, S.A. de C.V. and Seminis Merger Corp., as in effect on the Effective
Date.

                  "Material Adverse Effect" means a materially adverse effect on
(a) the business, assets, operations, properties, condition (financial or
otherwise), liabilities or prospects of the Loan Parties and their consolidated
Subsidiaries, taken as a whole, (b) the ability of the Loan Parties (taken as a
whole) to perform their obligations under the Loan Documents, (c) the rights of
or benefits available to the Lenders under the Loan Documents (taken as a whole)
or (d) the value of the Collateral (taken as a whole) or the validity,
enforceability, perfection or priority of the Liens granted to the Collateral
Agent (for its benefit and for the benefit of the other Secured Parties) on the
Collateral pursuant to the Security Documents (taken as a whole).

                  "Material Indebtedness" means Indebtedness (other than the
Loans and Letters of Credit), or obligations in respect of one or more Hedging
Agreements, of any one or more of the Parent Guarantor, the Borrower and the
Borrower's Subsidiaries, individually or in an aggregate principal amount
exceeding $5.0 million. For purposes of determining Material Indebtedness, the
"principal amount" of the obligations of the Borrower or any Subsidiary in
respect of any Hedging Agreement at any time shall be the maximum aggregate
amount (giving effect to any netting agreements) that the Parent Guarantor, the
Borrower or such Subsidiary would be required to pay if such Hedging Agreement
were terminated at such time.

                  "Maximum Rate" has the meaning assigned to such term in
Section 10.09.

                  "Merger" means the merger of Seminis Merger Corp. with and
into the Parent Guarantor pursuant to the Merger Agreement with the Parent
Guarantor being the surviving corporation.

                  "Merger Agreement" means the merger agreement dated as of May
30, 2003 by and among the Seminis Acquisition LLC, Seminis Merger Corp. and the
Parent Guarantor.

                  "Mexican SPC" means Desarrollo Consolidado de Negocios, S.A.
de C.V., a corporation (sociedad anonima de capital variable) organized under
the laws of the United Mexican States.

                  "Moody's" means Moody's Investors Service, Inc.

                                      -19-

<PAGE>

                  "Mortgage" means a mortgage, deed of trust, assignment of
leases and rents, leasehold mortgage, deed to secure debt or other security
document granting a Lien on any Mortgaged Property to secure the Obligations,
including any amendment thereto. Each Mortgage shall be substantially in the
form of Exhibit N or otherwise satisfactory in form and substance to the
Collateral Agent.

                  "Mortgaged Property" means, initially, each Real Property and
identified on Schedule 4.01(s)(A), and each other Real Property and improvements
thereto with respect to which a Mortgage is granted pursuant to Section 5.11.

                  "Mr. Romo" means Alfonso Romo Garza.

                  "Multiemployer Plan" means a multiemployer plan within the
meaning of Section 4001(a)(3) of ERISA (i) to which any Loan Party or ERISA
Affiliate is then making or accruing an obligation to make contributions, (ii)
to which any Loan Party or ERISA Affiliate has within the preceding six plan
years made contributions, including any Person which ceased to be an ERISA
Affiliate during such six year period, or (iii) with respect to which Loan Party
or any Subsidiary could incur liability.

                  "Net Proceeds" means, with respect to any Equity Issuance,
Debt Incurrence, Asset Sale, Destruction or Taking, (a) the cash proceeds
actually received in respect of such event, including (i) any cash received in
respect of any non-cash proceeds, but only as and when received, (ii) in the
case of a Destruction, insurance proceeds in excess of $1.0 million, and (iii)
in the case of a Taking, condemnation awards and similar payments in excess of
$1.0 million, net of (b) the sum of (i) all reasonable fees and out-of-pocket
expenses paid by the Parent Guarantor and its Subsidiaries to any third party or
(subject to Section 6.08) any Affiliate in connection with such event, (ii) the
amount of all taxes paid (or reasonably estimated to be payable) by the Parent
Guarantor and its Subsidiaries, and (iii) in the case of an Asset Sale, (1) the
amount of all payments required to be made by the Parent Guarantor and its
Subsidiaries as a result of such event to repay Indebtedness (other than Loans)
secured by a Prior Lien (as defined in the Security Agreement or applicable
Mortgage) on such asset, (2) the amount of Indebtedness of the Non-U.S.
Subsidiary selling such asset repaid with such proceeds, and (3) the amount of
any reserves established by the Parent Guarantor and its Subsidiaries to fund
contingent liabilities reasonably estimated to be payable, in each case during
the year that such event occurred or the next succeeding two years, and that are
directly attributable to such event (as determined reasonably and in good faith
by the Borrower); provided that any amount by which such reserves are reduced
for reasons other than payment of any such contingent liabilities shall be
considered "Net Proceeds" upon such reduction.

                  "New Parcel" has the meaning assigned to such term in Section
5.18(f).

                  "New Preferred Stock" means the Class C PIK Preferred Stock
issued pursuant to the New Preferred Stock Documents.

                  "New Preferred Stock Documents" means (i) the Class C PIK
Preferred Stock and Warrant Subscription Agreement dated on or about the
Effective Date by and between Seminis Merger Corp. and The Northwestern Mutual
Life Insurance Company (the "NML Preferred Subscription Agreement"), (ii) the
Certificate of Designation attached as Exhibit A to the NML Preferred
Subscription Agreement, (iii) the Warrant Agreement in the form attached as
Exhibit B to the NML Preferred Subscription Agreement, (iv) the Class C PIK
Preferred Stock and Warrant Subscription Agreement dated on or about the
Effective Date by and among Seminis Merger Corp., Stichting Pensioenfonds ABP
and Stichting Pensioenfonds Voor De Gezondheid, Geestelijke En Maatschappelijke
Belangen (the "NIBC Preferred Subscription Agreement") and (v) the Warrant
Agreement or Warrant Agreements in the form attached as Exhibit B to the NIBC
Preferred Subscription Agreement.

                                      -20-

<PAGE>

                  "New Subordinated Notes" means the 10 1/4% Senior Subordinated
Notes due 2013 of the Borrower generating net proceeds of at least $100.0
million but up to $150.0 million to be issued on the Amendment No. 1 Date,
including the senior subordinated notes to be issued pursuant to a registered
exchange offer or private exchange therefor as contemplated in the offering
document for the New Subordinated Notes.

                  "New Subordinated Notes Documents" means the New Subordinated
Notes, the indenture under which the New Subordinated Notes are issued, and all
other material documents executed and delivered with respect to the New
Subordinated Notes.

                  "New Transactions" means, collectively, (i) the execution and
delivery by each Loan Party of each of the Loan Documents (including without
limitation this amendment of the Pre-Amendment Credit Agreement by Amendment No.
1) in each case on the Amendment No. 1 Date; (ii) the one-time issuance of the
New Subordinated Notes and the use of proceeds thereof; (iii) the partial
prepayment of the Term B Loans pursuant to Section 2.05(c)(ii) with at least
$100.0 million of the Net Proceeds from the New Subordinated Notes; and (iv) the
other transactions contemplated herby to occur on or immediately following the
Amendment No. 1 Date.

                  "Non-Consenting Lender" has the meaning assigned to such term
in Section 2.20.

                  "Non-U.S. Jurisdiction" means each jurisdiction of
organization of a Subsidiary of the Borrower other than the United States (or
any State thereof) or the District of Columbia.

                  "Non-U.S. Pledge Agreements" means one or more pledge
agreements in form and substance reasonably satisfactory to the Collateral Agent
covering (subject to the terms of Section 5.11) 65% of the voting Equity
Interests and 100% of the non-voting Equity Interests owned by a Subsidiary Loan
Party in the "first-tier" Non-U.S. Subsidiaries of the Borrower.

                  "Non-U.S. Subsidiary" means any Subsidiary of the Borrower
that is or becomes organized under the laws of a Non-U.S. Jurisdiction.

                  "Note" means a note substantially in the form of Exhibit G-1
or G-2.

                  "Obligations" means the unpaid principal of and interest on
(including interest accruing after the maturity of the Loans made to the
Borrower and interest accruing after the filing of any petition in bankruptcy,
or the commencement of any insolvency, reorganization or like proceeding,
relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding) the Loans made to or LC
Disbursements made pursuant to Letters of Credit issued for the account of the
Borrower and all other obligations and liabilities of the Borrower to any Agent,
the Issuing Bank or to any Lender, whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which
may arise under, out of, or in connection with, this Agreement or any other
document made, delivered or given in connection herewith (including, without
limitation, any Hedging Agreement), whether on account of principal, interest,
fees, indemnities, costs or expenses (including, without limitation, all
reasonable fees, charges and disbursements of counsel), or otherwise.

                  "OFAC" has the meaning assigned to such term in Section
3.24(b)(v).

                  "Other List" has the meaning assigned to such term in Section
6.17.

                  "Organic Document" means (i) relative to each Person that is a
corporation, its charter, its by-laws and all shareholder agreements, voting
trusts and similar arrangements applicable to any of its

                                      -21-

<PAGE>

authorized shares of capital stock, (ii) relative to each Person that is a
partnership, its partnership agreement and any other similar arrangements
applicable to any partnership or other equity interests in the Person and (iii)
relative to any Person that is any other type of legal entity, such documents as
shall be comparable to the foregoing.

                  "Oxnard Mortgage" means the mortgage on the Borrower's
headquarters in Oxnard, California.

                  "Parent Guarantor" has the meaning assigned to such term in
the preamble to this Agreement.

                  "Parent Preferred Stock" means the Class B Redeemable
Preferred Stock of the Parent Guarantor.

                  "Participant" has the meaning assigned to such term in Section
10.04(f).

                  "PBGC" means the Pension Benefit Guaranty Corporation referred
to and defined in ERISA.

                  "Pension Plan" means a "pension plan," as such term is defined
in Section 3(2) of ERISA, which is subject to Title IV of ERISA (other than a
Multiemployer Plan) and to which any Loan Party or any ERISA Affiliate may have
liability, including any liability by reason of having been a substantial
employer within the meaning of Section 4063 of ERISA at any time during the
preceding five years, or by reason of being deemed to be a contributing sponsor
under Section 4069 of ERISA.

                  "Perfection Certificate" means a certificate in the form of
Annex 2 to the Security Agreement or any other form approved by the Collateral
Agent.

                  "Permitted Acquisition" means any acquisition, whether by
purchase, merger, consolidation or otherwise, by the Borrower or any Subsidiary
Loan Party of all or substantially all the assets of, or all the Equity
Interests in, a Person or a division, line of business or other business unit of
a Person so long as (a) [Reserved], (b) such assets are to be used in, or such
Person so acquired is engaged in, as the case may be, a business of the type
conducted by the Borrower and its Subsidiaries on the Effective Date or in a
business reasonably related thereto and (c) immediately after giving effect
thereto, (i) no Default has occurred and is continuing or would result
therefrom, (ii) all transactions related thereto are consummated in all material
respects in accordance with applicable laws, (iii) in the case of an acquisition
of Equity Interests, the Person acquired shall become immediately after giving
effect thereto a wholly-owned Subsidiary or be merged with or into a
wholly-owned Subsidiary and all actions required to be taken under Sections
5.11, 5.12 and 5.16 shall have been taken, (iv) the Borrower and its
Subsidiaries are in compliance, on a pro forma basis after giving effect to such
acquisition, with the covenants contained in Sections 6.12 and 6.13 recomputed
as at the date of the last ended Test Period, as if such acquisition (and any
related incurrence or repayment of Indebtedness) had occurred on the first day
of the relevant Test Period, (v) any Indebtedness or any Preferred Stock that is
incurred, acquired or assumed in connection with such acquisition shall be in
compliance with Section 6.01, (vi) other than in the case where such acquisition
is funded entirely with the proceeds of, or in consideration for, the issuance
of Equity Interest or capital contributions after giving pro forma effect to
such acquisition, the sum of (x) the Total Revolving Credit Commitment less the
Revolving Credit Exposure of all Revolving Lenders and (y) Unrestricted Cash and
Cash Equivalents of the Parent Guarantor and its Subsidiaries shall not be less
than $25.0 million and (vii) the Borrower has delivered to the Administrative
Agent an officer's certificate to the effect set forth in clauses (a), (b) and
(c)(i) through (vi) above, together with all relevant financial information for
the Person or assets to be acquired.

                                      -22-

<PAGE>

                  "Permitted Investments" means:

                  (a) marketable direct obligations issued by, or
         unconditionally guaranteed by, the United States Government or any
         member state of the European Union (as it exists on the Effective Date)
         or issued by any agency or instrumentality thereof and backed by the
         full faith and credit of the United States of America or such member
         state of the European Union, in each case maturing within one year from
         the date of acquisition thereof;

                  (b) marketable direct obligations issued by any State of the
         United States of America or any political subdivision of any such State
         or any public instrumentality thereof maturing within one year from the
         date of acquisition thereof and, at the time of acquisition, having one
         of the two highest ratings obtainable from either S&P or Moody's;

                  (c) commercial paper maturing no more than one year from the
         date of creation thereof and, at the time of acquisition, having a
         rating of at least A-1 from S&P or at least P-1 from Moody's;

                  (d) time deposits, demand deposits, certificates of deposit,
         Eurodollar time deposits or bankers' acceptances maturing within one
         year from the date of acquisition thereof or overnight bank deposits,
         in each case, issued by any bank organized under the laws of any member
         state of the European Union (as it exists on the Effective Date), the
         United States of America or any State thereof or the District of
         Columbia or any U.S. branch of a foreign bank having at the date of
         acquisition thereof combined capital and surplus of not less than
         $500.0 million;

                  (e) repurchase obligations with a term of not more than 90
         days for underlying securities of the types described in clause (a)
         above entered into with any bank meeting the qualifications specified
         in clause (d) above; and

                  (f) investments in money market funds which invest
         substantially all their assets in securities of the types described in
         clauses (a) through (e) above.

                  "Permitted Lien" has the meaning assigned to such term in
Section 6.02.

                  "Permitted Management Fees" means, in any Fiscal Year, (i) the
advisory fees (but not expense reimbursement) required to be paid by the Parent
Guarantor pursuant to the Management Fee Letter plus (ii) reasonable
out-of-pocket expenses of Fox Paine (but not Mexican SPC) (each as defined in
the Management Fee Letter) required to be paid by the Parent Guarantor pursuant
to the terms of the Management Fee Letter.

                  "Permitted Refinancing" means, with respect to any
Indebtedness, any refinancing thereof; provided, however, that (i) no Default
shall have occurred and be continuing or would arise therefrom, (ii) any such
refinancing Indebtedness shall (a) not be on financial and other terms that are
more onerous in the aggregate than the Indebtedness being refinanced and shall
not have defaults, rights or remedies more burdensome in the aggregate to the
obligor than the Indebtedness being refinanced, (b) [Reserved], (c) either (x)
not require any payment of principal prior to the date 180 days after the Term B
Loan Maturity Date (the "Test Date"), if the Indebtedness being refinanced has
no remaining scheduled payment of principal required to be made prior to the
Test Date or (y) not have a Weighted Average Life to Maturity that is shorter
than the Indebtedness being refinanced, if the Indebtedness being refinanced has
any remaining scheduled payments of principal required to be made prior to the
Test Date, (d) be at

                                      -23-

<PAGE>

least as subordinate to the Obligations as the Indebtedness being refinanced
(and unsecured if the refinanced Indebtedness is unsecured), and (e) be in a
principal amount that does not exceed the principal amount so refinanced plus
all accrued and unpaid interest thereon, plus the stated amount of any premium
and other payments required to be paid in connection with such refinancing
pursuant to the terms of the Indebtedness being refinanced, plus in either case,
the amount of reasonable fees and expenses of the Borrower or any of its
Subsidiaries incurred in connection with such refinancing, and (iii) the sole
obligors and/or guarantors on such refinancing Indebtedness shall be the
obligors and/or guarantors on such Indebtedness being refinanced other than any
guarantee by a Subsidiary Loan Party that was not an original guarantor thereof.

                  "Permitted Unsecured Debt" means Indebtedness (which may be
senior or subordinated) that shall not be secured by any Lien on any Property of
any Loan Party or any Subsidiary other than a Permitted Lien.

                  "Permitted Unsecured Debt Documents" means documents governing
or pursuant to which is issued any Permitted Unsecured Debt, as the same may be
in effect from time to time in accordance with the terms hereof and thereof.

                  "Person" means any natural person, corporation, trust, joint
venture, association, company, partnership, limited liability company or
government, or any agency or political subdivision thereof.

                  "PII" means PII, LLC.

                  "Plan" means any "employee benefit plan," as such term is
defined in Section 3(3) of ERISA, that is maintained or contributed to by a Loan
Party or any Subsidiary, or with respect to which a Loan Party or any Subsidiary
could reasonably incur liability.

                  "Platform" has the meaning assigned to such term in Section
10.17(b).

                  "Pledge Agreement" means the Pledge Agreement, substantially
in the form of Exhibit J, among the Loan Parties and the Collateral Agent for
the benefit of the Secured Parties.

                  "Pledged Securities" has the meaning assigned to such term in
the Pledge Agreement.

                  "Pre-Amendment Credit Agreement" has the meaning assigned to
such term in the preamble hereto.

                  "Preferred Stock" means, with respect to any Person, any and
all preferred or preference Equity Interests (however designated) of such Person
whether or not outstanding or issued on the Effective Date.

                  "Prepayment Date" has the meaning assigned to such term in
Section 2.05(f).

                  "Pro Rata Percentage" of any Revolving Lender at any time
means the percentage of the aggregate Available Revolving Credit Commitment
represented by such Lender's Available Revolving Credit Commitment.

                  "Projected Financial Statements" has the meaning assigned to
such term in Section 3.17(c).

                                      -24-

<PAGE>

                  "Property" means any right, title or interest in or to
property or assets of any kind whatsoever, whether real, personal or mixed and
whether tangible or intangible and including any ownership interests of any
Person.

                  "Qualified Non-U.S. Intercompany Note" means an intercompany
note which (i) is not subordinated to any Indebtedness of the obligor, (ii) is,
subject to the last sentence of Section 5.11, pledged pursuant to the Pledge
Agreement and (iii) provides for an event of default of such note (and thereupon
the note becoming due and payable) upon (x) the failure of the Borrower to pay
principal at maturity of any Loan or (y) the Loans, other Obligations and
Commitments becoming immediately due and payable prior to maturity pursuant to
Section 7.01, 7.02 or 7.03.

                  "Rabobank" has the meaning assigned to such term in the
preamble hereto.

                  "Real Property" means all right, title and interest of any
Loan Party in and to a parcel of real property owned, leased or operated
(including, without limitation, any leasehold estate) by any Loan Party together
with, in each case, all improvements and appurtenant fixtures, equipment,
personal property, easements and other property and rights incidental to the
ownership, lease or operation thereof.

                  "Recapitalization Documents" means the Merger Agreement, the
Exchange Agreement and the Stockholders' Agreement, each document attached as an
exhibit to any such agreement and each document attached as an exhibit to each
document attached as an exhibit to any such agreement.

                  "Recapitalization Transactions" means the Merger, each other
transaction contemplated by the Recapitalization Documents, the payment of
Indebtedness to be Repaid and the payment of fees and expenses in connection
with the Transactions.

                  "Reference Banks" means:

                  (a) at any time prior to completion of the initial syndication
         of the Loans and Commitments, in respect of LIBO Rate, the principal
         London office of Citibank, N.A.; and

                  (b) at any time thereafter, in respect of LIBO Rate, the
         principal London office of Citibank, N.A. and such two other banks as
         may be appointed by the Administrative Agent in consultation with the
         Borrower.

                  "Register" has the meaning assigned to such term in Section
10.04(d).

                  "Regulation U" means Regulation U of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.

                  "Regulation X" means Regulation X of the Board as from time to
time in effect and all official rulings and interpretations thereunder or
thereof.

                  "Related Parties" means, with respect to any specified Person,
such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person's Affiliates.

                  "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping,
disposing, depositing, dispersing, emanating or migrating of any Hazardous
Material in, into, onto or through the Environment.

                                      -25-

<PAGE>

                  "Remedial Action" means (a) "remedial action" as such term is
defined in CERCLA, 42 U.S.C. Section 9601(24), and (b) all other actions
required by any Governmental Authority or voluntarily undertaken to: (i) clean
up, remove, treat, abate, monitor or otherwise take corrective action to address
any Hazardous Material in the Environment, including, without limitation, any
action or payment to address any damage to natural resources; (ii) prevent the
Release or threat of Release, or minimize the further Release of any Hazardous
Material so it does not migrate or endanger or threaten to endanger public
health, welfare or the Environment; or (iii) perform studies and investigations
in connection with, or as a precondition to, (i) or (ii) above.

                  "Requirement of Law" means, as to any Person, any law, treaty,
rule or regulation or determination of an arbitrator or a court or other
Governmental Authority, in each case applicable to or binding upon such Person
or any of its property or assets or to which such Person or any of its property
or assets is subject.

                  "Requisite Class Lenders" means, at any time of determination,
(i) for the Class of Lenders having Term B Loans, Lenders holding more than 50%
of the aggregate Term B Loans of all Lenders; and (ii) for the Class of Lenders
having Revolving Credit Commitments, the Requisite Revolving Lenders.

                  "Requisite Lenders" means, at any time, Lenders having more
than fifty percent (50%) of the sum of (a) the aggregate amount of the Revolving
Credit Commitments or, after the Revolving Credit Maturity Date, the Revolving
Credit Exposure and (b) the aggregate outstanding amount of all Term B Loans.

                  "Requisite Revolving Lenders" means, collectively, Lenders
having more than fifty percent (50%) of the aggregate outstanding amount of the
Revolving Credit Commitments or, after the Revolving Credit Maturity Date, the
Revolving Credit Exposure.

                  "Restricted Payment" has the meaning assigned to such term in
Section 4.10(a) of the Subordinated Notes Indenture in effect on the Amendment
No. 1 Date (and whether or not in effect); provided, however, clauses (3) and
(4) of the definition thereof are deleted and replaced with the following
(construed in accordance with the defined terms in the Subordinated Notes
Indenture):

                  "(3) make any payment on or with respect to, or purchase,
         redeem, defease or otherwise acquire or retire for value, any
         Indebtedness that is subordinated to the loans and guarantees under the
         Credit Facilities, except a payment of interest or principal at the
         Stated Maturity thereof in accordance with the subordination provisions
         thereof (all such payments and other actions set forth in clauses (1)
         through (3) being collectively referred to as "Restricted Payments"),"

                  "Revolving Credit Borrowing" means a Borrowing comprised of
Revolving Loans.

                  "Revolving Credit Borrowing Request" means a Borrowing Request
in connection with a Revolving Credit Borrowing.

                  "Revolving Credit Commitment" means, with respect to each
Revolving Lender, the commitment of such Revolving Lender to make Revolving
Loans and to acquire participations in Letters of Credit, Swingline Loans and
Eurodollar Loans hereunder, expressed in each case as an amount representing the
maximum principal amount of such Revolving Lender's Revolving Credit Exposure
hereunder, as the same may be reduced from time to time pursuant to the
provisions of this Agreement. The initial amount of each Revolving Lender's
Revolving Credit Commitment is set forth in Schedule 2.01 (in

                                      -26-

<PAGE>

the case of Revolving Credit Commitments in effect on the Amendment No. 1 Date),
or in the Assignment and Acceptance pursuant to which such Lender shall have
assumed its Revolving Credit Commitment, as applicable. The aggregate amount of
the Revolving Lenders' Revolving Credit Commitments as of the Effective Date is
$60.0 million, and as of the Amendment No. 1 Date is $75.0 million.

                  "Revolving Credit Commitment Period" means the period from and
including the Amendment No. 1 Date to but not including the Revolving Credit
Maturity Date or any earlier date on which the Revolving Credit Commitments to
make Revolving Loans pursuant to Section 2.01 shall terminate as provided
herein.

                  "Revolving Credit Exposure" means with respect to any
Revolving Lender at any time, the sum of (a) the aggregate principal amount at
such time of all outstanding Revolving Loans of such Revolving Lender, plus (b)
such Revolving Lender's LC Exposure at such time, plus (c) such Revolving
Lender's Commitment Percentage of the aggregate principal amount at such time of
all outstanding Swingline Loans.

                  "Revolving Credit Maturity Date" means the fifth anniversary
of the Effective Date.

                  "Revolving Lender" means a Lender with a commitment to make
Revolving Loans or with any Revolving Credit Exposure, in its capacity as such.

                  "Revolving Loans" means the revolving loans made pursuant to
clause (ii) of the first sentence of Section 2.01(a).

                  "S&P" means Standard & Poor's, a division of The McGraw-Hill
Companies.

                  "SDN List" has the meaning assigned to such term in Section
6.17.

                  "SEC" means the Securities and Exchange Commission.

                  "Secured Parties" has the meaning assigned to such term in the
Security Agreement.

                  "Security Agreement" means the Security Agreement,
substantially in the form of Exhibit K, among the Loan Parties and the
Collateral Agent for the benefit of the Secured Parties (as amended to the
extent specified in Section 4.03(d)(ii)).

                  "Security Documents" means the Security Agreement, the Pledge
Agreement, the Non-U.S. Pledge Agreements, the Mortgages, the Perfection
Certificate, the Collateral Sharing Agreement, Cash Management Agreements (as
defined in the Security Agreement) and Hedging Agreements executed by the Loan
Parties and each other security agreement or other instrument or document
executed and delivered pursuant to Section 5.11, 5.12 or 5.16 to secure any of
the Obligations.

                  "Senior Debt" of any Person means Indebtedness that is not by
its terms subordinated to any other Indebtedness of such Person.

                  "Senior Leverage Ratio" means, at any date, the ratio of (a)
Senior Debt as of such date net of Unrestricted Cash and Cash Equivalents of the
Parent Guarantor as of such date to (b) Consolidated EBITDA for the Test Period
most recently ended. For Test Periods ending prior to the one year anniversary
of the Amendment No. 1 Date, Consolidated EBITDA for shall be determined on a
pro forma basis to give effect to the Recapitalization Transactions and the
termination of the operating leases set forth in Schedule 1.01(a) as if they
occurred on the first day of such Test Period. In addition, for purposes of
cal-

                                      -27-

<PAGE>

culating the Senior Leverage Ratio for any applicable period ending after
December 31, 2003, Permitted Acquisitions that have been made by the Borrower or
any of its Subsidiaries will be given pro forma effect as if they had occurred
on the first day of such period.

                  "Solvency Certificate" means a certificate substantially in
the form of Exhibit M.

                  "South Korean Subsidiary" means Seminis Korea, Inc.

                  "Stock Plans" means all stock option, stock-based incentive
compensation and stock purchase plans or arrangements and other stock-based
plans or arrangements of the Parent Guarantor or any of its Subsidiaries adopted
from time to time in the ordinary course of business.

                  "Stockholders' Agreement" means the stockholders' agreement
dated as of May 30, 2003, by and among Seminis Merger Corp. and the investors
parties thereto.

                  "Subordinated Debt" means the Subordinated Notes and any
Permitted Refinancing of any thereof.

                  "Subordinated Debt Documents" means the Subordinated Notes
Documents and each document governing or pursuant to which is issued any other
Subordinated Debt, as the same may be in effect from time to time in accordance
with the terms hereof and thereof.

                  "Subordinated Notes" means (1) $190,000,000 aggregate
principal amount of 10 1/4% Senior Subordinated Notes due October 1, 2013 of the
Borrower issued on the Effective Date, and (2) the New Subordinated Notes,
including, in each case, the senior subordinated notes to be issued pursuant to
a registered exchange offer or private exchange therefor as contemplated in the
offering document for the Subordinated Notes.

                  "Subordinated Notes Documents" means the Subordinated Notes,
the Subordinated Notes Indenture and all other material documents executed and
delivered with respect to the Subordinated Notes or the Subordinated Notes
Indenture, as in effect on the Effective Date and as the same may be modified,
supplemented, restated and/or amended from time to time in accordance with the
terms hereof and thereof.

                  "Subordinated Notes Indenture" means the Indenture, dated as
of September 29, 2003, between the Borrower and the Subsidiary Loan Parties and
Wells Fargo Bank, National Association, as Trustee, as in effect on the
Effective Date which is attached as Exhibit P and as the same may be modified,
supplemented and/or amended from time to time in accordance with the terms
hereof and thereof.

                  "Subordination Provision" has the meaning assigned to such
term in Section 7.01(l).

                  "Subsidiary" means, with respect to any Person, (i) any
corporation of which more than 50% of the outstanding capital stock having
ordinary voting power to elect a majority of the board of directors of such
corporation (irrespective of whether at the time capital stock of any other
class or classes of such corporation shall or might have voting power upon the
occurrence of any contingency) is at the time directly or indirectly owned by
such Person, by such Person and one or more other Subsidiaries of such Person,
or by one or more other Subsidiaries of such Person; (ii) any partnership of
which more than 50% of the outstanding partnership interests having the power to
act as a general partner of such partnership (irrespective of whether at the
time any partnership interests other than general partnership interests of such
partnership shall or might have voting power upon the occurrence of any
contingency) are at the time directly or indirectly owned by such Person, by
such Person and one or more other Subsidiaries of

                                      -28-

<PAGE>

such Person, or by one or more other Subsidiaries of such Person; or (iii) any
other legal entity the accounts of which would or should be consolidated with
those of such Person on a consolidated balance sheet of such Person prepared in
accordance with GAAP. Unless otherwise indicated, when used in this Agreement,
the term "Subsidiary" shall refer to a Subsidiary of the Borrower. For the
avoidance of doubt, (x) no Joint Venture Entity shall be considered a Subsidiary
of the Borrower for purposes of this Agreement so long as it does not constitute
a Subsidiary pursuant to clause (i) or (ii) of this definition and (y) PII shall
not be considered to be a Subsidiary of the Borrower for purposes of this
definition for so long as it is in compliance with Section 6.15.

                  "Subsidiary Loan Party" means each of the Borrower's Domestic
Subsidiaries that guarantee the Obligations pursuant to the Guarantee Agreement,
initially as identified in Schedule 1.01(d) and any Subsidiary that becomes a
Loan Party pursuant to Section 5.16 or otherwise.

                  "Survey" means a survey of any Mortgaged Property (and all
improvements thereon): (i) prepared by a surveyor or engineer licensed to
perform surveys in the state where such Mortgaged Property is located, (ii)
dated (or redated) not earlier than six months prior to the date of delivery
thereof unless there shall have occurred within six months prior to such date of
delivery any exterior construction on the site of such Mortgaged Property which
can be depicted on a survey or any easement, right of way or other right or
interest in the Mortgaged Property which can be located on a survey has been
granted by a Loan Party or become effective through operation of law or
otherwise, in which events, as applicable, such survey shall be dated (or
redated) after the completion of such construction or if such construction shall
not have been completed as of such date of delivery, not earlier than 20 days
prior to such date of delivery, or after the grant or effectiveness of any such
easement, right of way or other right or interest in the Mortgaged Property,
(iii) certified by such surveyor (in a manner reasonably acceptable to the
Collateral Agent) to the Collateral Agent and the Title Company, (iv) complying
in all material respects with the minimum detail requirements of the American
Land Title Association as such requirements are in effect on the date of
preparation of such survey and (v) sufficient for the Title Company to remove
all standard survey exceptions from the title insurance policy (or commitment)
and issue a survey endorsement.

                  "SVS Europe" means SVS Europe, B.V.

                  "SVS Iberica" means Seminis Vegetable Seeds Iberica, S.A.

                  "Swingline Commitment" means the commitment of the Swingline
Lender to make Loans pursuant to Section 2.04.

                  "Swingline Exposure" means, at any time, the aggregate
principal amount of all Swingline Loans outstanding at such time. The Swingline
Exposure of any Revolving Lender at any time shall be its Commitment Percentage
of the total Swingline Exposure at such time.

                  "Swingline Lender" means Citicorp North America, Inc., in its
capacity as lender of Swingline Loans.

                  "Swingline Loan" has the meaning assigned to such term in
Section 2.04(a).

                  "Swingline Sublimit" has the meaning assigned to such term as
Section 2.04(a).

                  "Syndication Agent" has the meaning assigned to such term in
the preamble hereto.

                  "Taking" means any taking of any Property of the Parent
Guarantor or any Subsidiary or any portion thereof, in or by condemnation or
other eminent domain proceedings pursuant to any law,

                                      -29-

<PAGE>

general or special, or by reason of the temporary requisition or use of any
Property of the Parent Guarantor or any Subsidiary or any portion thereof, by
any Governmental Authority.

                  "Taxes" has the meaning assigned to such term in Section 2.16.

                  "Term B Borrowing" means a Borrowing comprised of Term B Loans
on the Amendment No. 1 Date.

                  "Term B Borrowing Request" means a Borrowing Request in
connection with a Term B Borrowing on the Effective Date.

                  "Term B Commitment" means, with respect to each Lender, the
commitment, if any, of such Lender to make a Term B Loan hereunder on the
Effective Date, expressed as an amount representing the maximum principal amount
of the Term B Loan to be made by such Lender hereunder, as the same may be
reduced from time to time pursuant to the provisions of this Agreement. The
amount of each Lender's Term B Commitment on the Effective Date is set forth on
Schedule 2.01 or in the Assignment and Acceptance pursuant to which such Lender
shall have assumed its Term B Commitment, as applicable. The aggregate amount of
the Lenders' Term B Commitments is $190.0 million on the Effective Date and
$90.0 million on the Amendment No. 1 Date.

                  "Term B Lender" means a Lender with a Term B Commitment or an
outstanding Term B Loan, in its capacity as such.

                  "Term B Loan Maturity Date" means the sixth anniversary of the
Effective Date.

                  "Term B Loans" means the Loans made pursuant to clause (i) of
Section 2.01(a).

                  "Terminated Lender" has the meaning assigned thereto in
Section 2.20.

                  "Test Period" means (i) for the covenants contained in
Sections 6.12 and 6.13, the four consecutive complete Fiscal Quarters of the
Borrower then last ended as of each date listed under Test Period and (ii) for
all other provisions in this Agreement, the four consecutive complete Fiscal
Quarters of the Borrower ended as of the time indicated. Compliance with such
covenants shall be tested, as of the end of each Test Period, on the date on
which the financial statements pursuant to Section 5.01(a) or (b) have been, or
should have been, delivered for the applicable fiscal period.

                  "Title Company" means Royal Abstract of New York, LLC, as
authorized agent for Stewart Title, or such other title insurance or abstract
company as shall be approved by the Collateral Agent insuring the Mortgages.

                  "Total Leverage Ratio" means, at any date, the ratio of (a)
Consolidated Indebtedness as of such date net of Unrestricted Cash and Cash
Equivalents of the Parent Guarantor as of such date to (b) Consolidated EBITDA
for the Test Period most recently ended. For Test Periods ending prior to the
one year anniversary of the Effective Date, Consolidated EBITDA for shall be
determined on a pro forma basis to give effect to the Recapitalization
Transactions and the termination of the operating leases set forth in Schedule
1.01(a) as if they occurred on the first day of such Test Period. In addition,
for purposes of calculating the Total Leverage Ratio for any applicable period
ending after December 31, 2003, Permitted Acquisitions that have been made by
the Borrower or any of its Subsidiaries will be given pro forma effect as if
they had occurred on the first day of such period.

                                      -30-

<PAGE>

                  "Total Revolving Credit Commitment" means, at any time, the
aggregate amount of the Revolving Credit Commitments, as in effect at such time.

                  "Transaction Documents" means the Financing Documents and the
Recapitalization Documents.

                  "Transactions" means the Financing Transactions and the
Recapitalization Transactions.

                  "Transferee" has the meaning assigned to such term in Section
2.16.

                  "Trigger Date" means the date on which a Compliance
Certificate for the first fiscal quarter ending more than six months after the
Effective Date shall have been received by the Administrative Agent pursuant to
Section 5.01(b).

                  "Type," when used in respect of any Loan or Borrowing, refers
to the Rate by reference to which interest on such Loan or on the Loans
comprising such Borrowing is determined. For purposes hereof, "Rate" shall
include the LIBO Rate and the Alternate Base Rate.

                  "UCC" means the Uniform Commercial Code as in effect in the
applicable state or jurisdiction.

                  "Unrefunded Swingline Loans" has the meaning assigned thereto
in Section 2.04(c).

                  "Unrestricted Cash and Cash Equivalents" of any Person means
cash and cash equivalents of such Person not reflected as restricted on such
Person's balance sheet, in accordance with GAAP.

                  "Unrestricted Subsidiary" has the meaning assigned to such
term in the Subordinated Notes Indenture as in effect on the Amendment No. 1
Date (and whether or not then in effect).

                  "Voting Agreement" means the voting agreement dated as of May
30, 2003 among the stockholders parties thereto and Fox Paine Seminis Holdings,
LLC.

                  "Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing (a) the
aggregate outstanding principal amount of such Indebtedness on such date into
(b) the sum of the total of the products obtained by multiplying (i) the amount
of each scheduled installment, sinking fund, serial maturity or other required
payment of principal including payment at final maturity, in respect thereof, by
(ii) the number of years (calculated to the nearest one-twelfth) which will
elapse between such date and the making of such payment.

                  "Welfare Plan" means a "welfare plan," as such term is defined
in Section 3(1) of ERISA, that is maintained or contributed to by a Loan Party
or any Subsidiary or with respect to which a Loan Party or any Subsidiary could
reasonably incur liability.

                  "Withdrawal Liability" means liability to a Multiemployer Plan
as a result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part 1 of Subtitle E of Title IV of ERISA.

                  SECTION 1.02. Classification of Loans and Borrowings. For
purposes of this Agreement, Loans may be classified and referred to by Class
(e.g., a "Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class
and Type (e.g., a "Eurodollar Revolving Loan"). Borrowings also may

                                      -31-

<PAGE>

be classified and referred to by Class (e.g., a "Revolving Credit Borrowing") or
by Type (e.g., a "Eurodollar Borrowing") or by Class and Type (e.g., a
"Eurodollar Revolving Credit Borrowing").

                  SECTION 1.03. Terms Generally. (a) The definitions in Section
1.01 shall apply equally to both the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words "include",
"includes" and "including" shall be deemed to be followed by the phrase "without
limitation". All references herein to Articles, Sections, Exhibits and Schedules
shall be deemed references to Articles and Sections of, and Exhibits and
Schedules to, this Agreement unless the context shall otherwise require. Except
as otherwise expressly provided herein, (i) any reference in this Agreement to
any Loan Document means such document as amended, restated, supplemented or
otherwise modified from time to time and (ii) all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from
time to time; provided, however, that for purposes of determining compliance
with the covenants contained in Article VI, all accounting terms herein shall be
interpreted and all accounting determinations hereunder shall be made in
accordance with GAAP as in effect on the Effective Date and applied on a basis
consistent with the application used in the financial statements referred to in
Section 3.06.

                  (b) If any payment under this Agreement or any other Loan
Document shall be due on any day that is not a Business Day, the date for
payment shall be extended to the next succeeding Business Day, and in the case
of any payment accruing interest, interest thereon shall be paid for the period
of such extension.

                                   ARTICLE II

                                   THE CREDITS

                  SECTION 2.01. Credit Commitments. (a) Subject to the terms and
conditions hereof, (i) each Term B Lender severally agrees to make a Term B Loan
in Dollars to the Borrower on the Effective Date in a principal amount not
exceeding its Term B Commitment and, (ii) each Revolving Lender severally agrees
to make Revolving Loans in Dollars to the Borrower from time to time during the
Revolving Credit Commitment Period. Amounts repaid in respect of Term B Loans
may not be reborrowed. During the Revolving Credit Commitment Period the
Borrower may use the Revolving Credit Commitments by borrowing, prepaying the
Revolving Loans in whole or in part, and reborrowing, all in accordance with the
terms and conditions hereof. Notwithstanding anything to the contrary contained
in this Agreement, in no event may Revolving Loans be borrowed under this
Article II if, after giving effect thereto (and to any concurrent repayment or
prepayment of Loans), (i) the Aggregate Revolving Credit Exposure would exceed
the Total Revolving Credit Commitment then in effect or (ii) the Revolving
Credit Exposure of any Revolving Lender would exceed such Revolving Lender's
Revolving Credit Commitment.

                  (b) The Revolving Loans and Term B Loans may from time to time
be (i) Eurodollar Loans, (ii) ABR Loans or (iii) a combination thereof, as
determined by the Borrower and notified to the Administrative Agent in
accordance with Sections 2.02 and 2.03.

                  (c) Each Loan (other than a Swingline Loan) shall be made as
part of a Borrowing consisting of Loans of the same Class and Type made by the
Lenders ratably in accordance with their respective Commitments of the
applicable Class. The failure of any Lender to make any Loan required to be made
by it shall not relieve any other Lender of its obligations hereunder; provided
that the Commitments of the Lenders are several and no Lender shall be
responsible for any other Lender's failure to make Loans as required.

                                      -32-

<PAGE>

                  SECTION 2.02. Procedure for Borrowing. (a) The Borrower may
borrow under the Revolving Credit Commitments (subject to the limitations in
Section 2.01(a)) or the Term B Commitments by giving the Administrative Agent
notice substantially in the form of Exhibit B (a "Borrowing Request"), which
notice must be received by the Administrative Agent prior to (a) 11:00 a.m., New
York City time, three Business Days prior to the requested Borrowing Date, in
the case of a Eurodollar Borrowing, or (b) 11:00 a.m., New York City time, on
the Business Day prior to the requested Borrowing Date, in the case of an ABR
Borrowing. The Borrowing Request for each Borrowing shall specify (i) whether
the requested Borrowing is to be a Revolving Credit Borrowing or a Term B
Borrowing, (ii) the amount to be borrowed, (iii) the requested Borrowing Date
(which must be the Effective Date, in the case of a Term B Borrowing), (iv)
whether the Borrowing is to be of Eurodollar Loans or ABR Loans, (v) if the
Borrowing is to be of Eurodollar Loans, the length of the initial Interest
Period therefor, and (vi) the location and number of the Borrower's account to
which funds are to be disbursed, which shall comply with the requirements of
this Agreement. If no election as to the Type of Borrowing is specified, then
the requested Borrowing shall be an ABR Borrowing. If no Interest Period is
specified with respect to any requested Eurodollar Borrowing, then the Borrower
shall be deemed to have selected an Interest Period of one month's duration.

                  (b) Each Borrowing shall be in a minimum aggregate principal
amount of (i) in the case of a Term B Borrowing, $5.0 million or an integral
multiple of $1.0 million in excess thereof or (ii) in the case of a Revolving
Credit Borrowing, $1.0 million or an integral multiple of $1.0 million in excess
thereof or, if less, the aggregate amount of the then Available Revolving Credit
Commitments.

                  (c) Upon receipt of the Term B Borrowing Request, the
Administrative Agent shall promptly notify each Term B Lender of the aggregate
amount of the Term B Borrowing and of the amount of such Term B Lender's pro
rata portion thereof, which shall be based on their respective Term B
Commitments. Each Term B Lender will make the amount of its pro rata portion of
the Term B Borrowing available to the Administrative Agent for the account of
the Borrower at the New York office of the Administrative Agent specified in
Section 10.01 prior to 10:00 a.m., New York City time, on the Amendment No. 1
Date in funds immediately available to the Administrative Agent. Amounts so
received by the Administrative Agent will promptly be made available to the
Borrower by the Administrative Agent crediting the account of the Borrower on
the books of such office with the aggregate of the amounts made available to the
Administrative Agent by the Revolving Lenders and in like funds as received by
the Administrative Agent.

                  (d) Upon receipt of a Revolving Credit Borrowing Request, the
Administrative Agent shall promptly notify each Revolving Lender of the
aggregate amount of such Revolving Credit Borrowing and of the amount of such
Revolving Lender's pro rata portion thereof, which shall be based on the
respective Available Revolving Credit Commitments of all the Revolving Lenders.
Each Revolving Lender will make the amount of its pro rata portion of each such
Revolving Credit Borrowing available to the Administrative Agent for the account
of the Borrower at the New York office of the Administrative Agent specified in
Section 10.01 prior to 12:00 p.m., New York City time, on the Borrowing Date
requested by the Borrower in funds immediately available to the Administrative
Agent. Amounts so received by the Administrative Agent will promptly be made
available to the Borrower by the Administrative Agent crediting the account of
the Borrower on the books of such office with the aggregate of the amounts made
available to the Administrative Agent by the Revolving Lenders and in like funds
as received by the Administrative Agent; provided that if on the Borrowing Date
of any Revolving Loans to be made to the Borrower, any Swingline Loans made to
the Borrower or LC Disbursements for the account of the Borrower shall be then
outstanding, the proceeds of such Revolving Loans shall first be applied to pay
in full such Swingline Loans or LC Disbursements, with any remaining proceeds to
be made available to the Borrower as provided above; and provided, further, that
ABR Revolving Loans made to fi-

                                      -33-

<PAGE>

nance the reimbursement of an LC Disbursement as provided in Section 2.06(e)
shall be remitted by the Administrative Agent to the Issuing Bank.

                  SECTION 2.03. Conversion and Continuation Options for Loans.
(a) The Borrower may elect from time to time to convert (i) Eurodollar Loans to
ABR Loans, by giving the Administrative Agent prior notice of such election not
later than 11:00 a.m., New York City time, on the Business Day prior to a
requested conversion or (ii) ABR Loans to Eurodollar Loans by giving the
Administrative Agent prior notice of such election not later than 11:00 a.m.,
New York City time, three Business Days prior to a requested conversion;
provided that if any such conversion of Eurodollar Loans is made other than on
the last day of an Interest Period with respect thereto, the Borrower shall pay
any amounts due to the Lenders pursuant to Section 2.17 as a result of such
conversion. Any such notice of conversion to Eurodollar Loans shall specify the
length of the initial Interest Period or Interest Periods therefor. Upon receipt
of any such notice the Administrative Agent shall promptly notify each Lender
thereof. All or any part of the outstanding Eurodollar Loans or ABR Loans may be
converted as provided herein; provided that (i) no Loan may be converted into a
Eurodollar Loan when any Default or Event of Default has occurred and is
continuing, and (ii) no Loan may be converted into a Eurodollar Loan after the
date that is one month prior to the Revolving Credit Maturity Date or the Term B
Loan Maturity Date, as applicable.

                  (b) Any Eurodollar Loans may be continued as such upon the
expiration of the then current Interest Period with respect thereto by the
Borrower giving prior notice to the Administrative Agent, not later than 11:00
a.m., New York City time, three Business Days prior to a requested continuation
setting forth the length of the next Interest Period to be applicable to such
Loans; provided that no Eurodollar Loan may be continued as such (i) when any
Default or Event of Default has occurred and is continuing, and (ii) after the
date that is one month prior to the Revolving Credit Maturity Date or the Term B
Loan Maturity Date, as applicable; and provided, further, that if the Borrower
shall fail to give any required notice as described above in this Section 2.03
or if such continuation is not permitted pursuant to the preceding proviso, then
such Loans shall be automatically converted to ABR Loans on the last day of such
then expiring Interest Period (in which case the Administrative Agent shall
notify the Borrower of such conversion).

                  (c) In connection with any Eurodollar Loans, there shall be no
more than ten (10) Interest Periods outstanding at any time.

                  (d) This Section shall not apply to Swingline Loans.

                  SECTION 2.04. Swingline Loans. (a) Subject to the terms and
conditions hereof, the Swingline Lender agrees to make swingline loans
(individually, a "Swingline Loan" and collectively, the "Swingline Loans") to
the Borrower from time to time during the Revolving Credit Commitment Period in
accordance with the procedures set forth in this Section 2.04, provided that (i)
the aggregate principal amount of all Swingline Loans shall not exceed $5.0
million (the "Swingline Sublimit") at any one time outstanding, (ii) the
principal amount of any borrowing of Swingline Loans may not exceed the
aggregate amount of the Available Revolving Credit Commitments of all Revolving
Lenders immediately prior to such borrowing or result in the Aggregate Revolving
Credit Exposure then outstanding exceeding the Total Revolving Credit
Commitments then in effect, and (iii) in no event may Swingline Loans be
borrowed hereunder if (x) a Default or Event of Default or Event of Termination
shall have occurred and be continuing and (y) such Default or Event of Default
or Event of Termination shall not have been subsequently cured or waived.
Amounts borrowed under this Section 2.04 may be repaid and, up to but excluding
the Revolving Credit Maturity Date, reborrowed. All Swingline Loans shall at all
times be ABR Loans. The Borrower shall give the Administrative Agent notice of
any Swingline Loan requested hereunder (which notice must be received by the
Administrative Agent prior to 11:00 a.m., New York City

                                      -34-

<PAGE>

time, on the requested Borrowing Date) specifying (A) the amount to be borrowed,
and (B) the requested Borrowing Date. Upon receipt of such notice, the
Administrative Agent shall promptly notify the Swingline Lender of the aggregate
amount of such borrowing. Not later than 2:00 p.m., New York City time, on the
Borrowing Date specified in such notice the Swingline Lender shall make such
Swingline Loan available to the Administrative Agent for the account of the
Borrower at the office of the Administrative Agent set forth in Section 10.01 in
funds immediately available to the Administrative Agent. Amounts so received by
the Administrative Agent will promptly be made available to the Borrower by the
Administrative Agent crediting the account of the Borrower on the books of such
office with the amount made available to the Administrative Agent by the
Swingline Lender (or, in the case of a Swingline Loan made to finance the
reimbursement of an LC Disbursement as provided in Section 2.06(e), by
remittance to the Issuing Bank) and in like funds as received by the
Administrative Agent. Each Borrowing pursuant to this Section 2.04 shall be in a
minimum principal amount of $500,000 or an integral multiple of $100,000 in
excess thereof.

                  (b) Notwithstanding the occurrence of any Default or Event of
Default or Event of Termination or noncompliance with the conditions precedent
set forth in Article IV or the minimum borrowing amounts specified in Section
2.02, if any Swingline Loan shall remain outstanding at 10:00 a.m., New York
City time, on the seventh Business Day following the Borrowing Date thereof and
if by such time on such seventh Business Day the Administrative Agent shall have
received neither (i) a notice of borrowing delivered by the Borrower pursuant to
Section 2.02 requesting that Revolving Loans be made pursuant to Section 2.01 on
the immediately succeeding Business Day in an amount at least equal to the
aggregate principal amount of such Swingline Loan, nor (ii) any other notice
satisfactory to the Administrative Agent indicating the Borrower's intent to
repay such Swingline Loan on the immediately succeeding Business Day with funds
obtained from other sources, the Administrative Agent shall be deemed to have
received a notice from the Borrower pursuant to Section 2.02 requesting that ABR
Revolving Loans be made pursuant to Section 2.01 on such immediately succeeding
Business Day in an amount equal to the amount of such Swingline Loan, and the
procedures set forth in Section 2.02 shall be followed in making such ABR
Revolving Loans; provided that for the purposes of determining each Lender's Pro
Rata Percentage with respect to such Borrowing, the Swingline Loan to be repaid
with the proceeds of such Borrowing shall be deemed to not be outstanding. The
proceeds of such ABR Revolving Loans shall be applied to repay such Swingline
Loan.

                  (c) If, for any reason, ABR Revolving Loans may not be, or are
not, made pursuant to paragraph (b) of this Section 2.04 to repay any Swingline
Loan as required by such paragraph, effective on the date such ABR Revolving
Loans would otherwise have been made, each Revolving Lender severally,
unconditionally and irrevocably agrees that it shall, without regard to the
occurrence of any Default or Event of Default, purchase a participating interest
in such Swingline Loan ("Unrefunded Swingline Loan") in an amount equal to the
amount of the ABR Revolving Loan which would otherwise have been made pursuant
to paragraph (b) of this Section 2.04. Each Revolving Lender will immediately
transfer to the Administrative Agent, in immediately available funds, the amount
of its participation, and the proceeds of such participations shall be
distributed by the Administrative Agent to the Swingline Lender. All payments by
the Revolving Lenders in respect of Unrefunded Swingline Loans and
participations therein shall be made in accordance with Section 2.13.

                  (d) Notwithstanding the foregoing, a Lender shall not have any
obligation to acquire a participation in a Swingline Loan pursuant to the
foregoing paragraphs if a Default or Event of Default or Event of Termination
shall have occurred and be continuing at the time such Swingline Loan was made
and such Lender shall have notified the Swingline Lender in writing prior to the
time such Swingline Loan was made, that such Default or Event of Default or such
Event of Termination has occurred and that

                                      -35-

<PAGE>

such Lender will not acquire participations in Swingline Loans made while such
Default or Event of Default or such Event of Termination is continuing.

                  SECTION 2.05. Optional and Mandatory Prepayments of Loans;
Repayments of Term B Loans. (a) The Borrower may at any time and from time to
time prepay the Loans (subject to compliance with the terms of Section 2.16), in
whole or in part, subject to Section 2.05(e), upon irrevocable notice to the
Administrative Agent not later than 12:00 noon, New York City time, two Business
Days prior to the date of such prepayment, specifying (i) the date and amount of
prepayment, and (ii) the Class of Loans to be prepaid and whether the prepayment
is of Eurodollar Loans, ABR Loans or a combination thereof (including in the
case of Eurodollar Loans, the Borrowing to which such prepayment is to be
applied and, if of a combination thereof, the amount allocable to each). Upon
receipt of any such notice the Administrative Agent shall promptly notify each
relevant Lender thereof. If any such notice is given, the amount specified in
such notice shall be due and payable on the date specified therein, together
with accrued interest to such date on the amount prepaid. Partial prepayments of
Loans (other than Swingline Loans) shall be in an aggregate principal amount of
$5.0 million or a whole multiple of $1.0 million in excess thereof (or, if less,
the remaining outstanding principal amount thereof). Partial prepayments of
Swingline Loans shall be in an aggregate principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof (or, if less, the remaining outstanding
principal amount thereof).

                  (b) In the event and on such occasion that the Aggregate
Revolving Credit Exposure exceeds the Total Revolving Credit Commitment, the
Borrower shall prepay Revolving Credit Borrowings or Swingline Borrowings (or,
if no such Borrowings are outstanding, deposit cash collateral in the account
established with the Administrative Agent pursuant to Section 2.06(j)) in an
aggregate amount equal to such excess.

                  (c) (i) If the Parent Guarantor shall issue any Equity
Interests or Equity Rights (it being understood that the issuance of debt
securities convertible into, or exchangeable or exercisable for, any Equity
Interest or Equity Right shall be governed by Section 2.05(c)(ii) below) (other
than any Excluded Equity Issuance) (each, an "Equity Issuance"), 50% of the Net
Proceeds thereof shall be applied promptly after receipt thereof toward the
prepayment of the Term B Loans in accordance with Section 2.05(e) below.

                  (ii) If the Parent Guarantor or any of its Subsidiaries shall
incur or permit the incurrence of any Indebtedness (including pursuant to debt
securities which are convertible into, or exchangeable or exercisable for, any
Equity Interest or Equity Rights) (other than Excluded Debt Issuances) (each, a
"Debt Incurrence"), 100% of the Net Proceeds thereof shall be applied promptly
after receipt thereof toward the prepayment of the Term B Loans in accordance
with Section 2.05(e) below.

                  (iii) If the Parent Guarantor or any of its Subsidiaries shall
receive Net Proceeds from any Asset Sale, 100% of such Net Proceeds shall be
applied promptly after receipt thereof toward the prepayment of the Term B Loans
in accordance with Section 2.05(e) below; provided that, if the Asset Sale
consists of a sale or disposition of Property of the South Korean Subsidiary,
Net Proceeds need only be applied by the end of the South Korean Subsidiary's
fiscal year ending immediately following such receipt of Net Proceeds, provided,
further, that (x) the Net Proceeds from Asset Sales permitted by Section
6.05(vi), (vii), (x) or (xi) shall not be required to be applied as provided
herein on such date if and to the extent that (1) no Default or Event of Default
then exists or would arise therefrom and (2) the Borrower delivers an officer's
certificate to the Administrative Agent on or prior to the date of such Asset
Sale stating that such Net Proceeds are expected to be reinvested (directly or
indirectly) in fixed or capital assets of the Borrower or any Subsidiary
(including by way of Capital Expenditures, the making of any Investment or the
acquisition of any business or business line) in each case within 180 days (or
360 days

                                      -36-

<PAGE>

in the case of Asset Sales set forth in Schedule 6.05) following the date of
such Asset Sale (which certificate shall set forth the estimates of the proceeds
to be so expended), (y) all such Net Proceeds shall be held in the Collateral
Account and released therefrom only in accordance with the terms of the Security
Agreement, and (z) if all or any portion of such Net Proceeds not so applied as
provided herein is not so used within such 180-day (or 360-day) period, such
remaining portion shall be applied on the last day of such period as specified
in this subsection (c)(iii); provided, further, if the Property subject to such
Asset Sale constituted Collateral under the Security Documents, then any capital
assets purchased with the Net Proceeds thereof pursuant to this subsection shall
be mortgaged or pledged, as the case may be, to the Collateral Agent, for its
benefit and for the benefit of the other Secured Parties in accordance with
Section 5.11.

                  (iv) If the Parent Guarantor or any of its Subsidiaries shall
receive proceeds from insurance or condemnation recoveries in respect of any
Destruction or any proceeds or awards in respect of any Taking, 100% of the Net
Proceeds thereof shall be applied promptly after receipt thereof toward the
prepayment of the Term B Loans in accordance with Section 2.05(e) below;
provided that, if the Taking or Destruction is of Property of the South Korean
Subsidiary, Net Proceeds need only be applied by the end of the South Korean
Subsidiary's fiscal year ending immediately following such receipt of Net
Proceeds, provided, further, that (x) so long as no Default or Event of Default
then exists or would arise therefrom, such Net Proceeds shall not be required to
be so applied to the extent that the Borrower has delivered an officer's
certificate to the Administrative Agent promptly following the receipt of such
Net Proceeds stating that such proceeds are expected to be used to (1) repair,
replace or restore any Property in respect of which such Net Proceeds were paid,
(2) repay Indebtedness of the Non-U.S. Subsidiary having such Destruction or
Taking or (3) fund the substitution of other Property used or usable in the
business of the Borrower or the Subsidiaries, in each case within 180 days
following the date of the receipt of such Net Proceeds, (y) all such Net
Proceeds shall be held in the Collateral Account and released therefrom only in
accordance with the terms of the Security Agreement, and (z) if all or any
portion of such Net Proceeds not required to be applied to the prepayment of
Term B Loans pursuant to the preceding proviso is not so used within 180 days
after the date of the receipt of such Net Proceeds, such remaining portion shall
be applied on the last day of such period as specified in this subsection
(c)(iv); provided, further, if the Property subject to such Destruction or
Taking constituted Collateral under the Security Documents, then any replacement
or substitution Property purchased with the Net Proceeds thereof pursuant to
this subsection shall be mortgaged or pledged, as the case may be, to the
Collateral Agent, for its benefit and for the benefit of the other Secured
Parties in accordance with Section 5.11.

                  (v) If, for any Fiscal Year of the Borrower commencing with
its Fiscal Year ending on September 30, 2004, there shall be Excess Cash Flow
for such Fiscal Year, the Excess Cash Flow Percentage of such Excess Cash Flow
shall be applied, not later than the earlier of (x) 100 days after the end of
such Fiscal Year, or (y) 10 days after the date upon which the Parent Guarantor
is required by the SEC to file its annual report on Form 10-K, toward prepayment
of the Term B Loans in accordance with Section 2.05(e) below.

                  (d) The Term B Loans shall be repaid in consecutive quarterly
installments on the dates set forth below (each such day, an "Installment
Payment Date"), commencing on March 31, 2004, in an aggregate amount equal to
the amount specified below for each such Installment Payment Date.

<TABLE>
<CAPTION>
Installment Payment Date     Installment Amount
------------------------     ------------------
<S>                          <C>
March 31, 2004                  $225,000
June 30, 2004                   $225,000
September 30, 2004              $225,000
December 31, 2004               $225,000
</TABLE>

                                      -37-

<PAGE>

<TABLE>
<CAPTION>
Installment Payment Date     Installment Amount
------------------------     ------------------
<S>                          <C>
March 31, 2005                  $225,000
June 30, 2005                   $225,000
September 30, 2005              $225,000
December 31, 2005               $225,000
March 31, 2006                  $225,000
June 30, 2006                   $225,000
September 30, 2006              $225,000
December 31, 2006               $225,000
March 31, 2007                  $225,000
June 30, 2007                   $225,000
September 30, 2007              $225,000
December 31, 2007               $225,000
March 31, 2008                  $225,000
June 30, 2008                   $225,000
September 30, 2008              $225,000
December 31, 2008               $225,000
March 31, 2009                  $225,000
June 30, 2009                   $225,000
Term B Loan Maturity Date    $85,050,000
</TABLE>

                  (e) Prepayments of Term B Loans pursuant to Section 2.05(a)
shall be applied as elected by the Borrower and prepayment of Term B Loans
pursuant to Section 2.05(c) shall be applied pro rata to remaining installments
of principal of such Term B Loans. Except as otherwise may be directed by the
Borrower, any prepayment of Loans pursuant to this Section 2.05 shall be
applied, first, to any ABR Loans then outstanding and the balance of such
prepayment, if any, to the Eurodollar Loans then outstanding.

                  (f) If on any day on which Loans would otherwise be required
to be prepaid pursuant to this Section 2.05, but for the operation of this
Section 2.05(f) (each a "Prepayment Date"), the amount of such required
prepayment exceeds the then outstanding aggregate principal amount of ABR Loans
which are of the Type required to be prepaid, and no Default or Event of Default
exists or is continuing, then on such Prepayment Date, (i) the Borrower shall
deposit funds into the Collateral Account in an amount equal to such excess, and
only the outstanding ABR Loans which are of the Type required to be prepaid
shall be required to be prepaid on such Prepayment Date, and (ii) on the last
day of each Interest Period after such Prepayment Date in effect with respect to
a Eurodollar Loan which is of the Type required to be prepaid, the
Administrative Agent is irrevocably authorized and directed to apply funds from
the Collateral Account (and liquidate investments held in the Collateral Account
as necessary) to prepay such Eurodollar Loans for which the Interest Period is
then ending to the extent funds are available in the Collateral Account.

                  SECTION 2.06. Letters of Credit.

                  (a) General. Subject to the terms and conditions set forth
herein, the Borrower may request the issuance of Letters of Credit for its own
account, in a form reasonably acceptable to the Administrative Agent and the
Issuing Bank, at any time and from time to time during the Revolving Credit
Commitment Period. In the event of any inconsistency between the terms and
conditions of this Agreement and the terms and conditions of any form of letter
of credit application or other agreement submitted by the Borrower to, or
entered into by the Borrower with, the Issuing Bank relating to any Letter of
Credit, the terms and conditions of this Agreement shall control.

                                      -38-

<PAGE>

                  (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), the Borrower shall
hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the Issuing Bank) to the Issuing
Bank and the Administrative Agent (reasonably in advance of the requested date
of issuance, amendment, renewal or extension) a notice requesting the issuance
of a Letter of Credit, or identifying the Letter of Credit to be amended,
renewed or extended, and specifying the date of issuance, amendment, renewal or
extension (which shall be a Business Day), the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) of this Section), the
amount of such Letter of Credit, the name and address of the beneficiary thereof
and such other information as shall be necessary to prepare, amend, renew or
extend such Letter of Credit. If requested by the Issuing Bank, the Borrower
also shall submit a letter of credit application on the Issuing Bank's standard
form in connection with any request for a Letter of Credit. A Letter of Credit
shall be issued, amended, renewed or extended only if (and upon issuance,
amendment, renewal or extension of each Letter of Credit the Borrower shall be
deemed to represent and warrant that), after giving effect to such issuance,
amendment, renewal or extension, (i) the LC Exposure shall not exceed $10.0
million and (ii) the Aggregate Revolving Credit Exposure shall not exceed the
Total Revolving Credit Commitment. With respect to any Letter of Credit which
contains any "evergreen" automatic renewal provision, the Issuing Bank shall be
deemed to have consented to any such extension or renewal provided that all of
the requirements of this Section 2.06 are met and no Default or Event of Default
exists.

                  (c) Expiration Date. Each Letter of Credit shall expire at or
prior to the close of business on the earlier of (i) the date one year after the
date of the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension) and (ii) the date
that is five Business Days prior to the Revolving Credit Maturity Date.

                  (d) Participations. By the issuance of a Letter of Credit (or
an amendment to a Letter of Credit increasing the amount thereof) and without
any further action on the part of the Issuing Bank or the Lenders, the Issuing
Bank hereby grants to each Revolving Lender, and each Revolving Lender hereby
acquires from the Issuing Bank, a participation in such Letter of Credit equal
to such Revolving Lender's Commitment Percentage of the aggregate amount
available to be drawn under such Letter of Credit. In consideration and in
furtherance of the foregoing, each Revolving Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of
the Issuing Bank, such Revolving Lender's Commitment Percentage of each LC
Disbursement made by the Issuing Bank and not reimbursed by the Borrower on the
date due as provided in paragraph (e) of this Section, or of any reimbursement
payment required to be refunded to the Borrower for any reason. Each Revolving
Lender acknowledges and agrees that its obligation to acquire participations
pursuant to this paragraph in respect of Letters of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including any amendment, renewal or extension of any Letter of Credit or the
occurrence and continuance of a Default or an Event of Default or reduction or
termination of the Revolving Credit Commitments, and that each such payment
shall be made without any offset, abatement, withholding or reduction
whatsoever.

                  (e) Reimbursement. If the Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such
LC Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement not later than 2:00 p.m., New York City time, on the date that such
LC Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 12:00 noon, New York City time, on such date, or, if such
notice has not been received by the Borrower prior to such time on such date,
then not later than 2:00 p.m., New York City time, on (i) the Business Day that
the Borrower receives such notice, if such notice is received prior to 12:00
noon,

                                      -39-

<PAGE>

New York City time, on the day of receipt, or (ii) the Business Day immediately
following the day that the Borrower receives such notice, if such notice is not
received prior to such time on the day of receipt; provided that the Borrower
may, subject to the conditions to borrowing set forth herein, request in
accordance with Section 2.02 that such payment be financed with an ABR Revolving
Borrowing or Swingline Loan in an equivalent amount and, to the extent so
financed, the Borrower's obligation to make such payment shall be discharged and
replaced by the resulting ABR Revolving Borrowing or Swingline Loan. If the
Borrower fails to make such payment when due, the Administrative Agent shall
notify each Revolving Lender of the applicable LC Disbursement, the payment then
due from the Borrower in respect thereof and such Revolving Lender's Commitment
Percentage thereof. Promptly following receipt of such notice, each Revolving
Lender shall pay to the Administrative Agent its Commitment Percentage of the
payment then due from the Borrower, in the same manner as provided in Section
2.02 with respect to Loans made by such Revolving Lender (and Section 2.02 shall
apply, mutatis mutandis, to the payment obligations of the Revolving Lenders),
and the Administrative Agent shall promptly pay to the Issuing Bank the amounts
so received by it from the Revolving Lenders. Promptly following receipt by the
Administrative Agent of any payment from the Borrower pursuant to this
paragraph, the Administrative Agent shall distribute such payment to the Issuing
Bank or, to the extent that Revolving Lenders have made payments pursuant to
this paragraph to reimburse the Issuing Bank, then to such Revolving Lenders and
the Issuing Bank as their interests may appear. Any payment made by a Revolving
Lender pursuant to this paragraph to reimburse the Issuing Bank for any LC
Disbursement (other than the funding of ABR Revolving Loans or a Swingline Loan
as contemplated above) shall not constitute a Loan and shall not relieve the
Borrower of its obligation to reimburse such LC Disbursement.

                  (f) Obligations Absolute. The Borrower's obligation to
reimburse LC Disbursements as provided in paragraph (e) of this Section 2.06
shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of (i) any lack of validity or
enforceability of any Letter of Credit or this Agreement, or any term or
provision therein, (ii) any draft or other document presented under a Letter of
Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect, (iii) payment by
the Issuing Bank under a Letter of Credit against presentation of a draft or
other document that does not comply with the terms of such Letter of Credit, or
(iv) any other event or circumstance whatsoever, whether or not similar to any
of the foregoing, that might, but for the provisions of this Section, constitute
a legal or equitable discharge of, or provide a right of setoff against, the
Borrower's obligations hereunder. Neither the Administrative Agent, the
Revolving Lenders nor the Issuing Bank, nor any of their Related Parties, shall
have any liability or responsibility by reason of or in connection with the
issuance or transfer of any Letter of Credit or any payment or failure to make
any payment thereunder (irrespective of any of the circumstances referred to in
the preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of the Issuing Bank; provided
that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by the Issuing Bank's failure to exercise care when determining
whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that, in the absence
of gross negligence or willful misconduct on the part of the Issuing Bank (as
finally determined by a court of competent jurisdiction), the Issuing Bank shall
be deemed to have exercised care in each such determination. In furtherance of
the foregoing and without limiting the generality thereof, the parties agree
that, with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank
may, in its sole discretion, either accept and make payment upon such documents
with-

                                      -40-

<PAGE>

out responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

                  (g) Disbursement Procedures. The Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. The Issuing Bank shall promptly
notify the Administrative Agent and the Borrower by telephone (confirmed by
telecopy) of such demand for payment and whether the Issuing Bank has made or
will make an LC Disbursement thereunder; provided that any failure to give or
delay in giving such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the Revolving Lenders with respect to any such LC
Disbursement.

                  (h) Interim Interest. If the Issuing Bank shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Borrower reimburses such LC
Disbursement, at the rate per annum then applicable to ABR Revolving Loans;
provided that if the Borrower fails to reimburse such LC Disbursement when due
pursuant to paragraph (e) of this Section 2.06, then Section 2.08(c) shall
apply. Interest accrued pursuant to this paragraph shall be for the account of
the Issuing Bank, except that interest accrued on and after the date of payment
by any Revolving Lender pursuant to paragraph (e) of this Section 2.07 to
reimburse the Issuing Bank shall be for the account of such Lender to the extent
of such payment.

                  (i) Replacement of the Issuing Bank. The Issuing Bank may be
replaced at any time by written agreement among the Borrower, the Administrative
Agent, the replaced Issuing Bank and the successor Issuing Bank. The
Administrative Agent shall notify the Lenders of any such replacement of the
Issuing Bank. At the time any such replacement shall become effective, the
Borrower shall pay all unpaid fees accrued for the account of the replaced
Issuing Bank pursuant to Section 2.10(b). From and after the effective date of
any such replacement, (i) the successor Issuing Bank shall have all the rights
and obligations of the Issuing Bank under this Agreement with respect to Letters
of Credit to be issued thereafter and (ii) references herein to the term
"Issuing Bank" shall be deemed to refer to such successor or to any previous
Issuing Bank, or to such successor and all previous Issuing Banks, as the
context shall require. After the replacement of an Issuing Bank hereunder, the
replaced Issuing Bank shall remain a party hereto and shall continue to have all
the rights and obligations of an Issuing Bank under this Agreement with respect
to Letters of Credit issued by it prior to such replacement, but shall not be
required to issue additional Letters of Credit.

                  (j) Cash Collateralization. If any Event of Default shall
occur and be continuing, on the Business Day that the Borrower receives notice
from the Administrative Agent or the Requisite Lenders (or, if the maturity of
the Loans has been accelerated, Revolving Lenders with LC Exposure representing
greater than 50% of the total LC Exposure) demanding the deposit of cash
collateral pursuant to this paragraph, the Borrower shall deposit in the
Collateral Account an amount in cash equal to the LC Exposure as of such date
plus any accrued and unpaid interest thereon; provided that the obligation to
deposit such cash collateral shall become effective immediately, and such
deposit shall become immediately due and payable, without demand or other notice
of any kind, upon the occurrence of any Event of Default with respect to the
Borrower described in clause (a) of Section 7.01 or any Event of Default
described in clause (i) of Section 7.01. Each such deposit shall be held by the
Collateral Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement and the Borrower hereby grants
the Collateral Agent a security interest in respect of each such deposit and the
Collateral Account in which such deposits are held. The Collateral Agent shall
have exclusive dominion and con-

                                      -41-

<PAGE>

trol, including the exclusive right of withdrawal, over the Collateral Account.
Other than any interest earned on the investment of such deposits, which
investments shall be made at the option and sole discretion of the Collateral
Agent and at the Borrower's risk and expense, such deposits shall not bear
interest. Interest or profits, if any, on such investments shall accumulate in
the Collateral Account. Moneys deposited in the Collateral Account pursuant to
this Section 2.06(j) shall be applied by the Collateral Agent to reimburse the
Issuing Bank for LC Disbursements for which it has not been reimbursed and, to
the extent not so applied, shall be held for the satisfaction of the
reimbursement obligations of the Borrower for the LC Exposure at such time or,
if the maturity of the Loans has been accelerated (but subject to the consent of
Revolving Lenders with LC Exposure representing greater than 50% of the total LC
Exposure), be applied to satisfy other obligations of the Borrower under this
Agreement. If the Borrower is required to provide an amount of cash collateral
hereunder as a result of the occurrence of an Event of Default, such amount (to
the extent not applied as aforesaid) shall be returned to the Borrower within
three Business Days after all Defaults or Events of Default have been cured or
waived.

                  (k) Rollover Letters of Credit. On and after the Effective
Date, without any further action by any Person, (i) each of the Existing Letters
of Credit shall be deemed for all purposes of this Agreement to be a Letter of
Credit under this Agreement and (ii) any payments made in respect of an Existing
Letter of Credit by the issuer thereof shall be deemed an LC Disbursement under
this Agreement.

                  SECTION 2.07. Repayment of Loans; Evidence of Debt. (a) The
Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of the relevant Lenders (i) in respect of Revolving Credit
Borrowings, on the Revolving Credit Maturity Date (or such earlier date as, and
to the extent that, such Revolving Loan becomes due and payable pursuant to
Section 2.05 or Article VII), the unpaid principal amount of each Revolving Loan
and each Swingline Loan made to it by each such Lender and (ii) in respect of
Term B Borrowings, on the Term B Loan Maturity Date (or such earlier date as,
and to the extent that, such Term B Loan becomes due and payable pursuant to
Section 2.05 or Article VII), the unpaid principal amount of each Term B Loan
held by each such Term B Lender. The Borrower hereby further agrees to pay
interest in immediately available funds at the applicable office of the
Administrative Agent (as specified in Section 2.13(a)) on the unpaid principal
amount of the Revolving Loans, Swingline Loans and Term B Loans made to it from
time to time from the date hereof until payment in full thereof at the rates per
annum, and on the dates, set forth in Section 2.08. All payments required
hereunder shall be made in Dollars.

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

                  (c) The Administrative Agent shall maintain the Register
pursuant to Section 10.04, and a subaccount for each Lender, in which Register
and subaccounts (taken together) shall be recorded (i) the amount of each such
Loan, the Class and Type of each such Loan and the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Borrower to each Lender hereunder in respect of
each such Loan and (iii) the amount of any sum received by the Administrative
Agent hereunder from the Borrower in respect of each such Loan and each Lender's
share thereof.

                  (d) The entries made in the Register and accounts maintained
pursuant to paragraphs (b) and (c) of this Section 2.07 and the Notes maintained
pursuant to paragraph (e) of this Section 2.07 shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and

                                      -42-

<PAGE>

amounts of the obligations of the Borrower therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain such
account, such Register or such subaccount, as applicable, or any error therein,
shall not in any manner affect the obligation of the Borrower to repay (with
applicable interest) the Loans made to the Borrower by such Lender in accordance
with the terms of this Agreement.

                  (e) The Loans of each Class made by each Lender to the
Borrower shall, if requested by the applicable Lender (which request shall be
made to the Administrative Agent), be evidenced by a single Note duly executed
on behalf of the Borrower, in substantially the form attached hereto as Exhibit
G-1 or -2, as applicable, with the blanks appropriately filled, payable to the
order of such Lender.

                  SECTION 2.08. Interest Rates and Payment Dates. (a) Each
Eurodollar Loan shall bear interest (computed on the basis of the actual number
of days elapsed over a year of 360 days) for each day during each Interest
Period with respect thereto at a rate per annum equal to (A) the LIBO Rate
determined for such Interest Period, plus (B) the Applicable Rate.

                  (b) Each ABR Loan (including each Swingline Loan) shall bear
interest (computed on the basis of the actual number of days elapsed over a year
of 365 or 366 days, as the case may be, or over a year of 360 days when the
Alternate Base Rate is determined by reference to clause (c) of the definition
of "Alternate Base Rate") at a rate per annum equal to the Alternate Base Rate
plus the Applicable Rate.

                  (c) If all or a portion of (i) the principal amount of any
Loan, (ii) any interest payable thereon or (iii) any Commitment Fee or other
amount payable hereunder shall not be paid when due (whether at the stated
maturity thereof or by acceleration or otherwise), such overdue amount shall
bear interest at a rate per annum (the "Default Rate") which is (x) in the case
of overdue principal (except as otherwise provided in clause (y) below), the
rate that would otherwise be applicable thereto pursuant to the foregoing
provisions of this Section 2.08 plus 2.00% per annum or (y) in the case of any
overdue interest, Commitment Fee or other Obligation, the rate described in
Section 2.08(b) applicable to an ABR Revolving Loan plus 2.00% per annum, in
each case from the date of such nonpayment to (but excluding) the date on which
such amount is paid in full (after as well as before judgment).

                  (d) Interest shall be payable in arrears on each Interest
Payment Date and on the Term B Loan Maturity Date and Revolving Credit Maturity
Date; provided that (i) interest accrued pursuant to paragraph (c) of this
Section shall be payable on demand, (ii) in the event of any repayment or
prepayment of any Loan, accrued interest on the principal amount repaid or
prepaid shall be payable on the date of such repayment or prepayment and (iii)
in the event of any conversion of any Eurodollar Loan prior to the end of the
current Interest Period therefor, accrued interest on such Loan shall be payable
on the effective date of such conversion. Interest in respect of each Loan shall
accrue from and including the first day of an Interest Period to but excluding
the last day of such Interest Period.

                  SECTION 2.09. Computation of Interest. Each determination of
an interest rate by the Administrative Agent pursuant to any provision of this
Agreement shall be conclusive and binding on the Borrower and the Lenders in the
absence of manifest error.

                  SECTION 2.10. Fees. (a) The Borrower agrees to pay a
commitment fee (a "Commitment Fee") to each Revolving Lender, for which payment
will be made in arrears through the Administrative Agent on the last day of
March, June, September and December beginning after the Effective Date, and on
the Commitment Fee Termination Date (as defined below). The Commitment Fee due
to each Revolving Lender shall commence to accrue for a period commencing on the
Effective Date and shall cease to accrue on the date (the "Commitment Fee
Termination Date") that is the later of (i) the date

                                      -43-

<PAGE>

on which the Revolving Credit Commitment of such Revolving Lender shall be
terminated as provided herein and (ii) the first date after the end of the
Revolving Credit Commitment Period. The Commitment Fee accrued to each Revolving
Lender shall equal the Commitment Fee Percentage multiplied by such Lender's
Commitment Fee Average Daily Amount (as defined below) for the applicable
quarter (or shorter period commencing on the Effective Date and ending with such
Lender's Commitment Fee Termination Date). A Revolving Lender's "Commitment Fee
Average Daily Amount" with respect to a calculation period shall equal the
average daily amount during such period calculated using the daily amount of
such Revolving Lender's Revolving Credit Commitment less such Revolving Lender's
Revolving Credit Exposure (excluding, in the case of all Lenders other than the
Swingline Lender, clause (c) of the definition thereof for purposes of
determining the Commitment Fee Average Daily Amount only) for any applicable
days during such Revolving Lender's Revolving Credit Commitment Period. All
Commitment Fees shall be computed on the basis of the actual number of days
elapsed in a year of 360 days.

                  (b) The Borrower agrees to pay (i) to the Administrative Agent
for the account of each Revolving Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at a rate equal to the
Applicable Rate for Eurodollar Revolving Loans on the average daily amount of
such Lender's LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such Revolving
Lender's Revolving Credit Commitment terminates and the date on which such
Revolving Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a
fronting fee, which shall accrue at the rate of 0.25% per annum on the average
daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date of termination of the
Revolving Credit Commitments and the date on which there ceases to be any LC
Exposure, as well as the Issuing Bank's standard fees with respect to the
issuance, amendment, renewal or extension of any Letter of Credit or processing
of drawings thereunder. Participation fees and fronting fees (collectively, "LC
Fees") accrued through and including the last day of March, June, September and
December of each calendar year during the Revolving Credit Commitment Period
shall be payable on the third Business Day following such last day, commencing
on the first such date to occur after the Effective Date; provided that all such
fees shall be payable on the date on which the Revolving Credit Commitments
terminate and any such fees accruing after the date on which the Revolving
Credit Commitments terminate shall be payable on demand. Any other fees payable
to the Issuing Bank pursuant to this paragraph shall be payable within 10 days
after demand therefor. All participation fees and fronting fees shall be
computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day).

                  (c) The Borrower agrees to pay to the Administrative Agent the
administrative fee set forth in the Fee Letter (the "Agent Fees").

                  (d) All Fees shall be paid on the dates due, in immediately
available funds, to the Administrative Agent for distribution. Once paid, none
of the Fees shall be refundable.

                  SECTION 2.11. Termination, Reduction or Adjustment of
Commitments. (a) Unless previously terminated, (i) the Term B Commitments shall
terminate at 5:00 p.m., New York City time, on the Effective Date and (ii) the
Revolving Credit Commitments shall terminate on the Revolving Credit Maturity
Date.

                  (b) The Borrower shall have the right, upon one Business Day's
notice to the Administrative Agent, to terminate or, from time to time, reduce
the amount of the Revolving Credit Commitments; provided that no such
termination or reduction of Revolving Credit Commitments shall be permit-

                                      -44-

<PAGE>

ted if, after giving effect thereto and to any repayments of the Loans made on
the effective date thereof, the Aggregate Revolving Credit Exposure then
outstanding would exceed the Total Revolving Credit Commitment then in effect.

                  (c) If any prepayment of Term B Borrowings would otherwise be
required pursuant to Section 2.05 but cannot be made because there are no Term B
Borrowings outstanding, or because the amount of the required prepayment exceeds
the outstanding amount of Term B Borrowings, then, on the date that such
prepayment is required, the Revolving Credit Commitments shall be permanently
reduced by an aggregate amount equal to the amount of the required prepayment,
or the excess of such amount over the outstanding amount of Term B Borrowings,
as the case may be.

                  (d) The Borrower shall pay to the Administrative Agent for the
account of the applicable Revolving Lenders, on each date of termination or
reduction of the Revolving Credit Commitments, the Commitment Fee on the amount
of the Revolving Credit Commitments so terminated or reduced accrued to the date
of such termination or reduction.

                  (e) Each reduction in the Revolving Credit Commitments shall
reduce the Swingline Commitment by an equal percentage.

                  SECTION 2.12. Inability to Determine Interest Rate;
Unavailability of Deposits; Inadequacy of Interest Rate. If prior to 11:00 a.m.,
London time, two Business Days before the first day of any Interest Period,
including an initial Interest Period, for a requested Eurodollar Borrowing:

                  (i) the Administrative Agent shall have determined in good
         faith (which determination shall be conclusive and binding upon the
         Borrower) that, by reason of circumstances affecting the relevant
         market generally, adequate and reasonable means do not exist for
         ascertaining the LIBO Rate for such Eurodollar Borrowing for such
         Interest Period, or

                  (ii) the Administrative Agent shall have received notice from
         a majority in interest of the Lenders of the applicable Class that the
         LIBO Rate determined or to be determined for such Interest Period for
         such Eurodollar Borrowing will not adequately and fairly reflect the
         cost to such Lenders (as conclusively certified by such Lenders) of
         making or maintaining their affected Loans during such Interest Period,

then the Administrative Agent shall give telecopy or telephonic notice thereof
to the Borrower and the Lenders by 12:00 noon, New York City time, on the same
day. The Administrative Agent shall give telecopy or telephonic notice to the
Borrower and the Lenders as soon as practicable after the circumstances giving
rise to such notice no longer exist, and until such notice has been given, any
affected Eurodollar Loans shall not be (x) converted or continued pursuant to
Section 2.03 or (y) made pursuant to a Borrowing Request, and shall be continued
or made as an ABR Loans, as the case may be.

                  SECTION 2.13. Pro Rata Treatment and Payments. (a) Each
reduction of the Revolving Credit Commitments of the Revolving Lenders shall be
made pro rata according to the amounts of such Revolving Lenders' Commitment
Percentages. Each payment (including each prepayment) by the Borrower on account
of principal of and interest on Loans which are ABR Loans shall be made pro rata
according to the respective outstanding principal amounts of such ABR Loans then
held by the Lenders of the applicable Class. Each payment (including each
prepayment) by the Borrower on account of principal of and interest on Loans
which are Eurodollar Loans designated by the Borrower to be applied to a
particular Eurodollar Borrowing shall be made pro rata according to the
respective outstanding principal amounts of such Loans then held by the Lenders
of the applicable Class. Each payment (including each prepayment) by the
Borrower on account of principal of and interest on Swingline Loans shall be

                                      -45-

<PAGE>

made pro rata according to the respective outstanding principal amounts of the
Swingline Loans or participating interests therein, as the case may be, then
held by the relevant Lenders. All payments (including prepayments) to be made by
the Borrower hereunder, whether on account of principal, interest, fees or
otherwise, shall be made without setoff or counterclaim and shall be made prior
to 10:00 a.m., New York time, on the due date thereof to the Administrative
Agent, for the account of the Lenders of the applicable Class, at the
Administrative Agent's New York office specified in Section 10.01 in the
currency in which the applicable obligation is denominated and in immediately
available funds. The Administrative Agent shall distribute such payments to the
Lenders entitled thereto in the same currency as received and promptly upon
receipt in like funds as received. If any payment hereunder (other than payments
on Eurodollar Loans) becomes due and payable on a day other than a Business Day,
such payment shall be extended to the next succeeding Business Day, and, with
respect to payments of principal, interest thereon shall be payable at the then
applicable rate during such extension. If any payment on a Eurodollar Loan
becomes due and payable on a day other than a Business Day, the maturity thereof
shall be extended to the next succeeding Business Day (and, with respect to
payments of principal, interest thereon shall be payable at the then applicable
rate during such extension) unless the result of such extension would be to
extend such payment into another calendar month, in which event such payment
shall be made on the immediately preceding Business Day.

                  (b) Subject to Section 2.12, unless the Administrative Agent
shall have been notified in writing by any Lender prior to a Borrowing that such
Lender will not make the amount that would constitute its share of such
Borrowing available to the Administrative Agent, the Administrative Agent may
assume that such Lender is making such amount available to the Administrative
Agent, and the Administrative Agent may, in reliance upon such assumption, make
available to the Borrower a corresponding amount. If such amount is not made
available to the Administrative Agent by the required time on the Borrowing Date
therefor, such Lender shall pay to the Administrative Agent, on demand, such
amount with interest thereon at a rate equal to the daily average Federal Funds
Effective Rate for the period until such Lender makes such amount immediately
available to the Administrative Agent. A certificate of the Administrative Agent
submitted to any Lender with respect to any amounts owing under this Section
2.13(b) shall be conclusive in the absence of manifest error. If such Lender's
share of such Borrowing is not made available to the Administrative Agent by
such Lender within three Business Days of such Borrowing Date, the
Administrative Agent shall also be entitled to recover such amount with interest
thereon at the rate per annum applicable to ABR Revolving Loans hereunder, on
demand, from the Borrower, but without prejudice to any right or claim that the
Borrower may have against such Lender.

                  (c) If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds
shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, towards
payment of principal and unreimbursed LC Disbursements then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal and unreimbursed LC Disbursements then due to such parties.

                  SECTION 2.14. Illegality. Notwithstanding any other provision
herein, if the adoption of or any change in any Requirement of Law, or in the
interpretation or application thereof, shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the
commitment of such Lender hereunder to make Eurodollar Loans, continue
Eurodollar Loans as such and convert ABR Loans to Eurodollar Loans shall
forthwith be suspended until such time as the making or maintaining of
Eurodollar Loans shall no longer be unlawful, and (b) such Lender's Loans then
outstanding as Eurodollar Loans, if any, shall be converted automatically to ABR
Loans on

                                      -46-

<PAGE>

the respective last days of the then current Interest Periods with respect to
such Loans or within such earlier period as required by law.

                  SECTION 2.15. Requirements of Law. (a) If at any time any
Lender or the Issuing Bank determines that the introduction of, or any change in
or in the interpretation of, any law, treaty or governmental rule, regulation or
order or the compliance by such Lender or the Issuing Bank with any guideline,
request or directive from any central bank or other Governmental Authority
(whether or not having the force of law), shall have the effect of increasing
the cost to such Lender or the Issuing Bank for agreeing to make or making,
funding or maintaining any Eurodollar Loans or participating in, issuing or
maintaining any Letter of Credit, then the Borrower shall from time to time,
within five days of demand therefor by such Lender or the Issuing Bank (with a
copy of such demand to the Administrative Agent), pay to the Administrative
Agent for the account of such Lender or the Issuing Bank additional amounts
sufficient to compensate such Lender or the Issuing Bank for such increased
cost. A certificate as to the amount of such increased cost, submitted to the
Borrower and the Administrative Agent by such Lender or the Issuing Bank, shall
be conclusive and binding for all purposes, absent manifest error. Such Lender
or the Issuing Bank, as applicable, shall promptly notify the Administrative
Agent and the Borrower in writing of the occurrence of any such event, such
notice to state, in reasonable detail, the reasons therefor and the additional
amount required fully to compensate such Lender or the Issuing Bank, as
applicable, for such increased cost or reduced amount. Such additional amounts
shall be payable directly to such Lender or the Issuing Bank, as applicable,
within five days of the Borrower's receipt of such notice, and such notice
shall, in the absence of manifest error, be conclusive and binding on the
Borrower.

                  (b) If any change in, or the introduction, adoption,
effectiveness, interpretation, reinterpretation or phase-in of, any law or
regulation, directive, guideline, decision or request (whether or not having the
force of law) of any court, central bank, regulator or other Governmental
Authority after the date hereof affects or would affect the amount of capital
required or expected to be maintained by any Lender or the Issuing Bank (or a
holding company controlling such Lender or the Issuing Bank) and such Lender or
the Issuing Bank determines (in its sole and absolute discretion) that the rate
of return on its capital (or the capital of its holding company, as the case may
be) as a consequence of its Revolving Credit Commitment or the Loans made by it
or its participations in Swingline Loans or any issuance, participation or
maintenance of Letters of Credit is reduced to a level below that which such
Lender or the Issuing Bank (or its holding company) could have achieved but for
the occurrence of any such circumstance, then, in any such case upon notice from
time to time by such Lender or the Issuing Bank to the Borrower, the Borrower
shall immediately pay directly to such Lender or the Issuing Bank, as the case
may be, additional amounts sufficient to compensate such Lender or the Issuing
Bank (or its holding company) for such reduction in rate of return. A statement
of such Lender or the Issuing Bank as to any such additional amount or amounts
(including calculations thereof in reasonable detail) shall, in the absence of
manifest error, be conclusive and binding on the Borrower. In determining such
amount, such Lender or the Issuing Bank may use any method of averaging and
attribution that it (in its sole and absolute discretion) shall deem applicable.

                  (c) In the event that the Issuing Bank or any Lender
determines that any event or circumstance that will lead to a claim under this
Section 2.15 has occurred or will occur, the Issuing Bank or such Lender will
use its best efforts to so notify the Borrower; provided that any failure to
provide such notice shall in no way impair the rights of the Issuing Bank or
such Lender to demand and receive compensation under this Section 2.15, but
without prejudice to any claims of the Borrower for compensation for actual
damages sustained as a result of any failure to observe this undertaking.

                  (d) The above provisions of this Section 2.15 shall not apply
in respect of any present or future taxes, fees, duties or other charges of any
nature whatsoever imposed by any taxing author-

                                      -47-

<PAGE>

ity that are imposed on or measured by the Issuing Bank's or Lender's net income
or overall gross income.

                  SECTION 2.16. Taxes. All payments by the Borrower of principal
of, and interest on, the Loans and all other amounts payable hereunder shall be
made free and clear of and without deduction for any present or future income,
excise, stamp or franchise taxes and other taxes, fees, duties, withholdings or
other charges of any nature whatsoever imposed by any taxing authority on the
Administrative Agent, the Issuing Bank or any Lender (or any assignee of such
Lender or the Issuing Bank, as the case may be, or a Participant or a change in
designation of the lending office of a Lender or the Issuing Bank, as the case
may be (a "Transferee")), but excluding taxes imposed on or measured by the
recipient's net income or the recipient's overall gross income (such
non-excluded items being called "Taxes") unless required by applicable law, rule
or regulation. In the event that any withholding or deduction from any payment
to be made by the Borrower hereunder is required in respect of any Taxes
pursuant to any applicable law, rule or regulation, then the Borrower will:

                  (a) pay directly to the relevant authority the full amount
         required to be so withheld or deducted;

                  (b) promptly forward to the Administrative Agent an official
         receipt or other documentation reasonably satisfactory to the
         Administrative Agent evidencing such payment to such authority; and

                  (c) pay to the Administrative Agent for the account of the
         Lenders or the Issuing Bank, as the case may be, such additional amount
         or amounts as are necessary to ensure that the net amount actually
         received by each Lender or the Issuing Bank, as the case may be, will
         equal the full amount such Lender or the Issuing Bank, as the case may
         be, would have received had no such withholding or deduction been
         required.

Moreover, if any Taxes are directly asserted against the Administrative Agent,
the Issuing Bank or any Lender or Transferee with respect to any payment
received by the Administrative Agent, the Issuing Bank or such Lender or
Transferee hereunder, the Administrative Agent, the Issuing Bank or such Lender
or Transferee may pay such Taxes and the Borrower will promptly pay such
additional amounts (including any penalties, interest or expenses) as shall be
necessary in order that the net amount received by such Person after the payment
of such Taxes (including any Taxes on such additional amount) shall equal the
amount such Person would have received had such Taxes not been asserted.

                  If the Borrower fails to pay any Taxes when due to the
appropriate taxing authority or fails to remit to the Administrative Agent, for
the account of the Issuing Bank, the respective Lenders or Transferees, the
required receipts or other required documentary evidence, the Borrower shall
indemnify the Issuing Bank, Lenders and Transferees for any incremental Taxes,
interest, penalties or other costs (including reasonable attorneys' fees and
expenses) that may become payable by the Issuing Bank, any Lender or Transferee
as a result of any such failure. For purposes of this Section 2.16, a
distribution hereunder by the Administrative Agent to or for the account of the
Issuing Bank, any Lender or Transferee shall be deemed a payment by the
Borrower.

                  Each Lender or Transferee that is organized under the laws of
a jurisdiction other than the United States of America or any state or political
subdivision thereof shall, on or prior to the Effective Date (in the case of
each Lender that is a party hereto on the Effective Date) or on or prior to the
date of any assignment, participation or change in the designated lending office
hereunder (in the case of a Transferee) and thereafter as reasonably requested
from time to time by the Borrower or the Administrative Agent, execute and
deliver, if legally able to do so, to the Borrower and the Administrative Agent
one or

                                      -48-

<PAGE>

more (as the Borrower or the Administrative Agent may reasonably request) United
States Internal Revenue Service Forms W-8BEN or W-8ECI or such other forms or
documents (or successor forms or documents), appropriately completed, as may be
applicable and determined by the Borrower to be reasonably satisfactory to
establish the extent, if any, to which a payment to such Lender or Transferee is
exempt from or entitled to a reduced rate of withholding or deduction of Taxes.

                  With respect to obligations under this Agreement other than
those specified in the immediately following paragraph, the Borrower shall not
be required to indemnify or to pay any additional amounts to the Issuing Bank,
any Lender or Transferee with respect to any Taxes pursuant to this Section 2.16
to the extent that (i) such Tax results from any obligation to withhold, deduct
or pay amounts with respect to such Tax that existed on the date the Issuing
Bank, such Lender or Transferee became a party to this Agreement or otherwise
becomes a Transferee but, in the case of a Transferee, only to the extent the
rate of such Tax exceeds the rate of Tax in respect of which the Borrower would
have been required to pay an additional amount or otherwise indemnify the Lender
from whom the Transferee acquired its interest immediately prior to such
transfer (and, in such case, the Borrower may deduct and withhold such Tax from
payments to the Issuing Bank, such Lender or Transferee), or (ii) such Tax
results from a failure by the Lender or Transferee to comply in full with the
provisions of the immediately preceding paragraph (and, in such case, the
Borrower may deduct and withhold all Taxes required by law as a result of such
noncompliance from payments to the Issuing Bank, such Lender or Transferee).

                  Notwithstanding anything to the contrary in this Section 2.16,
if the Internal Revenue Service determines that a Lender (or Transferee) is a
conduit entity participating in a conduit financing arrangement as defined in
Section 7701(l) of the Code and the regulations thereunder and the Borrower was
not a participant to such arrangement (other than as the Borrower under this
Agreement) (a "Conduit Financing Arrangement"), then (i) the Borrower shall have
no obligation to pay additional amounts or indemnify the Lender or Transferee
for any Taxes with respect to any payments hereunder to the extent the amount of
such Taxes exceeds the amount that would have otherwise been withheld or
deducted had the Internal Revenue Service not made such a determination and (ii)
such Lender or Transferee shall indemnify the Borrower in full for any and all
taxes for which the Borrower is held directly liable under Section 1461 of the
Code by virtue of such Conduit Financing Arrangement; provided that the Borrower
(i) promptly forwards to the indemnitor an official receipt or other
documentation satisfactorily evidencing such payment, (ii) shall contest such
tax upon the reasonable request of the indemnitor and at such indemnitor's cost
and (iii) shall pay to such indemnitor within 30 days any refund of such taxes
(including interest thereon). Each Lender or Transferee represents that it is
not participating in a Conduit Financing Arrangement.

                  In the event that the Issuing Bank or any Lender or Transferee
determines that any event or circumstance that will lead to a claim by it under
this Section 2.16 has occurred or will occur, the Issuing Bank or such Lender or
Transferee will use its best efforts to so notify the Borrower; provided that
any failure to provide such notice shall in no way impair the rights of the
Issuing Bank or any Lender or Transferee to demand and receive compensation
under this Section 2.16, but without prejudice to any claims of the Borrower for
failure to observe this undertaking.

                  If the Administrative Agent, the Issuing Bank, any Lender or
any Transferee determines in its reasonable discretion that it has received a
permanent refund of any Taxes as to which it has been indemnified by the
Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section 2.16, it shall pay over such permanent refund to the
Borrower (to the extent of indemnity payments made, or additional amounts paid,
by the Borrower under this Section 2.16 with respect to Taxes giving rise to
such permanent refund), net of all out-of-pocket expenses of such Person and
without interest (other than any interest paid by the relevant taxing authority
with respect to such permanent re-

                                      -49-

<PAGE>

fund). This Section 2.16 shall not be construed to require the Administrative
Agent, the Issuing Bank, any Lender or any Transferee to make available its tax
returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

                  SECTION 2.17. Indemnity. In the event any Lender shall incur
any loss or expense (including any loss (other than lost profit) or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to make, continue or maintain any portion of the
principal amount of any Loan as, or to convert any portion of the principal
amount of any Loan into, a Eurodollar Loan) as a result of any conversion of a
Eurodollar Loan to an ABR Loan or repayment or prepayment of the principal
amount of any Eurodollar Loan on a date other than the scheduled last day of the
Interest Period applicable thereto, whether pursuant to Section 2.03, 2.05,
2.07, 2.14, 2.15 or 2.20 or otherwise, or any failure to borrow or convert any
Eurodollar Loan after notice thereof shall have been given hereunder, whether by
reason of any failure to satisfy a condition to such Borrowing or otherwise,
then, upon the written notice of such Lender to the Borrower (with a copy to the
Administrative Agent), the Borrower shall, within five days of its receipt
thereof, pay directly to such Lender such amount as will (in the reasonable
determination of such Lender) reimburse such Lender for such loss or expense.
Such written notice (which shall include calculations in reasonable detail)
shall, in the absence of manifest error, be conclusive and binding on the
Borrower.

                  SECTION 2.18. Change of Lending Office. Each Lender (or
Transferee) agrees that, upon the occurrence of any event giving rise to the
operation of Section 2.14, 2.15 or 2.16 with respect to such Lender (or
Transferee), it will, if requested by the Borrower, use commercially reasonable
efforts (subject to overall policy considerations of such Lender (or
Transferee)) to designate another lending office for any Loans affected by such
event with the object of avoiding the consequences of such event; provided that
such designation is made on terms that, in the sole judgment of such Lender,
cause such Lender and its respective lending offices to suffer no material
economic, legal or regulatory disadvantage; and provided, further, that nothing
in this Section 2.18 shall affect or postpone any of the obligations of the
Borrower or the rights of any Lender (or Transferee) pursuant to Sections 2.14,
2.15 and 2.16.

                  SECTION 2.19. Sharing of Setoffs. Each Lender agrees that if
it shall, through the exercise of a right of banker's lien, setoff or
counterclaim against the Borrower, or pursuant to a secured claim under Section
506 of Title 11 of the United States Code or other security or interest arising
from, or in lieu of, such secured claim received by such Lender under any
applicable bankruptcy, insolvency or other similar law or otherwise, or by any
other means, obtain payment (voluntary or involuntary) in respect of any Loans
or participations in LC Disbursements (whether or not at the time due and
payable) as a result of which the unpaid principal portion of its Loans and
participations in LC Disbursements (whether or not at the time due and payable)
shall be proportionately less than the unpaid principal portion of such Loans
and participations in LC Disbursements of any other Lender, it shall be deemed
simultaneously to have purchased from such other Lender at face value, and shall
promptly pay to such other Lender the purchase price for, a participation in
such Loans and participations in LC Disbursements of such other Lender, so that
the aggregate unpaid principal amount of such Loans and participations in LC
Disbursements held by each Lender shall be in the same proportion to the
aggregate unpaid principal amount of all such Loans and participations in LC
Disbursements as prior to such exercise of banker's lien, setoff or counterclaim
or other event; provided, however, that if any such purchase or purchases or
adjustments shall be made pursuant to this Section and the payment giving rise
thereto shall thereafter be recovered, such purchase or purchases or adjustments
shall be rescinded to the extent of such recovery and the purchase price or
prices or adjustments restored without interest. The Borrower expressly consents
to the foregoing arrangements and agrees that any Lender holding a participation
in a Loan or an LC Disbursement deemed to have been so purchased may exercise
any and all rights of banker's lien, setoff or counterclaim with respect to any
and all moneys owing by the Borrower to such Lender by reason

                                      -50-

<PAGE>

thereof as fully as if such Lender were a direct creditor directly to the
Borrower in the amount of such participation.

                  SECTION 2.20. Assignment of Commitments Under Certain
Circumstances. In the event that (a) any Lender shall have delivered a notice or
certificate pursuant to Section 2.14 or 2.15, or the Borrower shall be required
to make additional payments to any Lender under Section 2.16 (each, an
"Increased Cost Lender") or (b) in connection with any proposed amendment,
modification, termination, waiver or consent with respect to any of the
provisions hereof described in Section 10.08(e), the consent of all Lenders
required hereunder would have been obtained but for such Lender's failure to
consent (such Lender, a "Non-Consenting Lender"); then, with respect to each
such Non-Consenting Lender and Increased Cost Lender (the "Terminated Lender"),
the Borrower shall have the right, but not the obligation, at its own expense,
upon notice to such Terminated Lender and the Administrative Agent, to replace
such Terminated Lender with an assignee (in accordance with and subject to the
restrictions contained in Section 10.04) approved by the Administrative Agent,
the Issuing Bank and the Swingline Lender (which approval shall not be
unreasonably withheld), and such Terminated Lender hereby agrees to transfer and
assign without recourse (in accordance with and subject to the restrictions
contained in Section 10.04) all its interests, rights and obligations under this
Agreement to such assignee; provided, however, that no Terminated Lender shall
be obligated to make any such assignment unless (i) such assignment shall not
conflict with any law or any rule, regulation or order of any Governmental
Authority and (ii) such assignee or the Borrower shall pay to the affected
Terminated Lender in immediately available funds on the date of such assignment
the principal of and interest accrued to the date of payment on the Loans made
by such Terminated Lender and participations in LC Disbursements and Swingline
Loans held by such Terminated Lender and all commitment fees and other fees owed
to such Terminated Lender hereunder and all other amounts accrued for such
Terminated Lender's account or owed to it hereunder (including, without
limitation, any Commitment Fees).

                                   ARTICLE III

                         REPRESENTATIONS AND WARRANTIES

                  In order to induce the Lenders and the Administrative Agent to
enter into this Agreement and to extend credit hereunder and under the other
Loan Documents on the Effective Date, the Loan Parties, jointly and severally,
make the representations and warranties set forth in this Article III (after
giving effect to the Transactions) and upon the occurrence of each Credit Event
thereafter:

                  SECTION 3.01. Organization, etc. Each Loan Party (a) is a
corporation or other form of legal entity, and each of its Subsidiaries is a
corporation, partnership or other form of legal entity, validly organized and
existing and in good standing under the laws of the jurisdiction of its
incorporation or organization, as the case may be, except where the failure to
be so organized, existing or in good standing will not, individually or in the
aggregate, have a Material Adverse Effect, (b) has all requisite corporate or
other power and authority to carry on its business as now conducted, (c) is duly
qualified to do business and is in good standing as a foreign corporation or
foreign partnership (or comparable foreign qualification, if applicable, in the
case of any other form of legal entity), as the case may be, in each
jurisdiction where the nature of its business requires such qualification,
except where the failure to so qualify will not, individually or in the
aggregate, have a Material Adverse Effect, and (d) has full power and authority
and holds all requisite material governmental licenses, permits and other
approvals to enter into and perform its obligations under this Agreement and
each other Loan Document to which it is a party and, except where the failure to
have such power or authority or to hold such licenses, permits or approvals will
not, individually or in the aggregate, have a Material Adverse Effect, to own or
hold under lease its Property and to conduct its business substantially as
currently conducted by it.

                                      -51-

<PAGE>

                  SECTION 3.02. Due Authorization, Non-Contravention, etc. The
execution, delivery and performance by each Loan Party of this Agreement and
each other Loan Document to which it is a party, the borrowing of the Loans, the
use of the proceeds thereof and the issuance of the Letters of Credit hereunder
are within each Loan Party's corporate, partnership or comparable powers, as the
case may be, have been duly authorized by all necessary corporate, partnership
or comparable and, if required, stockholder action, as the case may be, and do
not

                  (a) contravene the Organic Documents of any Loan Party or any
         of its respective Subsidiaries;

                  (b) contravene any law, statute, rule or regulation binding on
         or affecting any Loan Party or any of its respective Subsidiaries;

                  (c) violate or result in a default or event of default or an
         acceleration of any rights or benefits under any indenture, agreement
         or other instrument binding upon any Loan Party or any of its
         respective Subsidiaries; or

                  (d) result in, or require the creation or imposition of, any
         Lien on any assets of any Loan Party or any of its respective
         Subsidiaries except Liens created under the Loan Documents

which, in the case of the foregoing clauses (b), (c) or (d), individually or in
the aggregate, would have or could reasonably be expected to have a Material
Adverse Effect.

                  SECTION 3.03. Government Approval, Regulation, etc. No
consent, authorization or approval or other action by, and no notice to or
filing with, any Governmental Authority or regulatory body or other Person is
required for the due execution, delivery or performance by the Borrower or any
other Loan Party of this Agreement or any other Loan Document, the borrowing of
the Loans, the use of the proceeds thereof and the issuance of Letters of Credit
hereunder, nor for the consummation of the Recapitalization Transactions, except
such as have been obtained or made and are in full force and effect, except
filings necessary to perfect Liens under the Security Documents. No Loan Party
or any of its respective Subsidiaries is an "investment company" within the
meaning of the Investment Company Act of 1940, as amended, or a "holding
company", or a "subsidiary company" of a "holding company", or an "affiliate" of
a "holding company" or of a "subsidiary company" of a "holding company", within
the meaning of the Public Utility Holding Company Act of 1935, as amended.

                  SECTION 3.04. Validity, etc. This Agreement has been duly
executed and delivered by each Loan Party and constitutes, and each other Loan
Document to which any Loan Party is to be a party will, on the due execution and
delivery thereof and assuming the due execution and delivery of this Agreement
by each of the other parties hereto, constitute, the legal, valid and binding
obligation of such Loan Party enforceable in accordance with its respective
terms, subject to the effect of bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforceability of creditors' rights
generally and to general principles of equity.

                  SECTION 3.05. Representations and Warranties in the Merger
Agreement. Except as otherwise disclosed in writing to the Administrative Agent
prior to the Effective Date, each of the representations and warranties set
forth in Articles IV and V of the Merger Agreement is true and correct in all
material respects as of the Effective Date (unless expressly stated to relate to
an earlier date, in which case such representations and warranties shall be true
and correct as of such earlier date).

                  SECTION 3.06. Financial Information. (a) The consolidated
balance sheets of Parent Guarantor and its Subsidiaries as of September 30, 2001
and 2002, reported on by Pricewaterhouse-

                                      -52-

<PAGE>

Coopers LLP, independent public accountants, and as of July 30, 2003, certified
by Parent Guarantor's chief financial officer, and the related consolidated
statements of earnings and cash flow of Parent Guarantor and its Subsidiaries
for the three years ended September 30, 2002, copies of which have been
furnished to the Administrative Agent and each Lender and (b) the financial
statements delivered to the Lenders pursuant to Section 4.01(h) have been
prepared in accordance with GAAP consistently applied, and present fairly in all
material respects the consolidated financial condition of Parent Guarantor and
its Subsidiaries as of the dates thereof and the results of their operations and
cash flows for the periods then ended.

                  (b) Except as disclosed in the financial statements referred
to above or the notes thereto or in the Information Memorandum, as of the
Effective Date none of Parent Guarantor or its Subsidiaries has any material
Indebtedness, contingent liabilities, long-term commitments or unrealized
losses.

                  SECTION 3.07. No Material Adverse Effect. Since September 30,
2002, no event or circumstance has occurred which, individually or in the
aggregate, has had, or could reasonably be expected to have a Material Adverse
Effect.

                  SECTION 3.08. Litigation. Except as described in Schedule
3.08, there is no pending or, to the knowledge of the Loan Parties, threatened
litigation, action or proceeding (including, without limitation, any existing or
new litigation relating to the Recapitalization Transactions) affecting Parent
Guarantor or any of its Subsidiaries, or any of their respective operations,
properties, businesses, assets or prospects, or the ability of the parties to
consummate the transactions contemplated hereby, as to which there is a
reasonable likelihood of an adverse determination and that, if adversely
determined, individually or in the aggregate, in the case of Parent Guarantor
and its Subsidiaries, would have a Material Adverse Effect or which purports to
affect the legality, validity or enforceability of this Agreement or any other
Loan Document or the transactions contemplated hereby or thereby.

                  SECTION 3.09. Compliance with Laws and Agreements. None of the
Loan Parties has violated, is in violation of or has been given written notice
of any violation of any laws (other than Environmental Laws, which are the
subject of Section 3.15), regulations and orders of any Governmental Authority
applicable to it or its property and all indentures, agreements and other
instruments binding upon it or its property, except for any violations which,
individually or in the aggregate, do not have a Material Adverse Effect. No
Default or Event of Default has occurred and is continuing.

                  SECTION 3.10. Subsidiaries. Schedule 3.10 sets forth the name
of, and the direct or indirect ownership interest of the Parent Guarantor and
the Borrower in, each Subsidiary or other investment of the Parent Guarantor or
the Borrower and identifies each Subsidiary that is a Loan Party or Inactive
Subsidiary or a Joint Venture Entity, in each case as of the Effective Date.

                  SECTION 3.11. Ownership of Real Properties. (a) Each of the
Borrower and its Subsidiaries has good and valid title to (or other similar
title in jurisdictions outside the United States of America), or valid leasehold
interests in, or easements or other limited property interests in, or is
licensed to use, all its Real Property, except for minor defects in title that
do not interfere with its ability to conduct its business as currently conducted
or to utilize such properties and assets for their intended purposes and except
where the failure to have such title, individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect. All such Real
Property is free and clear of Liens, other than Permitted Liens.

                  (b) As of the Effective Date, Schedule 3.11(b) contains and
will contain a true and complete list of each parcel of Real Property (i) with a
book value in excess of $1.0 million owned by any

                                      -53-

<PAGE>

Loan Party as of the Effective Date and describes the type of interest therein
held by such Loan Party and (ii) leased, subleased or otherwise occupied or
utilized by any Loan Party, as lessee, as of the Effective Date and describes
the type of interest therein held by such Loan Party and whether such lease,
sublease or other instrument requires the consent of the landlord thereunder or
other parties thereto to the Recapitalization Transactions.

                  (c) Each of the Borrower and its Subsidiaries has complied
with all obligations under all leases to which it is a party, except where the
failure to comply would not, individually or in the aggregate, have a Material
Adverse Effect, and all such leases are in full force and effect, except leases
in respect of which the failure to be in full force and effect could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. Each of the Borrower and its Subsidiaries enjoys peaceful and
undisturbed possession under all such leases, other than leases in respect of
which the failure to enjoy peaceful and undisturbed possession could not
reasonably be expected to, individually or in the aggregate, have a Material
Adverse Effect.

                  (d) As of the Effective Date, no Loan Party or any of its
respective Subsidiaries has received any written notice of, or has any knowledge
of, any pending or contemplated condemnation proceeding affecting any of the
Mortgaged Properties or any sale or disposition thereof in lieu of condemnation
that remains unresolved as of the Effective Date.

                  (e) Neither the Borrower nor any of its Subsidiaries is
obligated on the Effective Date under any right of first refusal, option or
other contractual right to sell, assign or otherwise dispose of any Mortgaged
Property or any interest therein.

                  SECTION 3.12. Ownership of Personal Property. (a) Each of the
Borrower and its Subsidiaries has good and valid title to (or other similar
title in jurisdictions outside the United States of America) or other personal
property interests in, or is licensed to use, all its material personal
properties and assets, except for minor defects in title that do not interfere
with its ability to conduct its business as currently conducted or to utilize
such personal property and assets for their intended purposes and except where
the failure to have such title, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect. All such material
personal property and assets are free and clear of Liens, other than Permitted
Liens.

                  (b) Each of the Borrower and its Subsidiaries owns, possesses,
is licensed or otherwise has the right to use, or could obtain ownership or
possession of, on terms not materially adverse to it, all patents, trademarks,
service marks, trade names, copyrights, licenses and rights with respect thereto
(collectively, "Intellectual Property") necessary for the present conduct of its
business, without any known conflict with the rights of others, except where
such conflicts could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

                  SECTION 3.13. Taxes. Each of the Borrower and its Subsidiaries
has timely filed all federal, foreign and all other material income tax returns
and reports required by law to have been filed by it and has paid all taxes and
governmental charges due, except any such taxes or charges which are being
diligently contested in good faith by appropriate proceedings and for which
adequate reserves in accordance with GAAP shall have been set aside on its books
and except where the failure to file any such returns or reports or to pay any
such taxes or charges will not, individually or in the aggregate, have a
Material Adverse Effect.

                  SECTION 3.14. Pension and Welfare Plans. No ERISA Event has
occurred or is reasonably expected to occur which could, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. The
Borrower and its Subsidiaries and their ERISA Affiliates are in

                                      -54-
<PAGE>

compliance in all respects with the presently applicable provisions of ERISA and
the Code with respect to each Plan except for failures to so comply which could
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. No condition exists or event or transaction has occurred with
respect to any Plan which reasonably might result in the incurrence by the
Borrower or any of its Subsidiaries or any ERISA Affiliate of any liability,
fine or penalty which could, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. As of the Effective Date, the
Borrower, its Subsidiaries and ERISA Affiliates do not participate in or
contribute to any Multiemployer Plans.

                  Except as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, (a) each Foreign Plan
has been maintained in compliance with its terms and with the requirements of
any and all applicable laws, statutes, rules, regulations and orders and has
been maintained, where required, in good standing with applicable regulatory
authorities, and (b) neither the Borrower nor any of its Subsidiaries has
incurred any obligation in connection with the termination of or withdrawal from
any Foreign Plan.

                  SECTION 3.15. Environmental Warranties. (a) Except as set
forth on Schedule 3.15(a), all facilities and Real Property owned, leased or
operated by the Borrower or any of its Subsidiaries, and all operations
conducted thereat, are and have been in compliance with all Environmental Laws,
except for such noncompliance which, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

                  (b) Except as set forth on Schedule 3.15(b), there are no
pending or, to any Loan Party's knowledge, threatened:

                  (i) Environmental Claims received by the Borrower or any of
         its Subsidiaries, or

                  (ii) written claims, complaints, notices or inquiries received
         by the Borrower or any of its Subsidiaries regarding Environmental
         Liability,

in each case which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

                  (c) Except as set forth on Schedule 3.15(c), there have been
no Releases or threatened Releases of Hazardous Material at, on, under or from
any Real Property now or, to any Loan Party's knowledge, any real property
previously owned, leased, operated or used by the Borrower or any of its
Subsidiaries which, individually or in the aggregate, have had or could
reasonably be expected to have a Material Adverse Effect.

                  (d) The Borrower and its Subsidiaries have been issued and are
in compliance with all Environmental Permits necessary for their operations,
facilities and businesses and each is in full force and effect, except for such
Environmental Permits which, if not so obtained or as to which the Borrower and
its Subsidiaries are not in compliance, or are not in effect, individually or in
the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

                  (e) No Real Property now or, to any Loan Party's knowledge,
real property previously owned, leased or operated by the Borrower or any of its
Subsidiaries is listed or formally proposed (with respect to owned Real Property
only) for listing on the National Properties List promulgated pursuant to
CERCLA, on the CERCLIS or on any similar state list of sites requiring Remedial
Action.

                                      -55-
<PAGE>

                  (f) There are no underground storage tanks or related piping,
active or abandoned, including petroleum storage tanks, surface impoundments or
disposal areas, on or under any Real Property now or, to any Loan Party's
knowledge, real property previously owned or leased by the Borrower or any of
its Subsidiaries which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

                  (g) Neither the Borrower nor any of its Subsidiaries has
transported or arranged for the transportation of any Hazardous Material to any
location which is listed or formally proposed for listing on the National
Priorities List promulgated pursuant to CERCLA or listed on the CERCLIS or on
any similar state list of sites requiring Remedial Action, or to any location
which is the subject of federal, state or local enforcement action or other
investigation, which listing or proposed listing, action or investigation,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect.

                  (h) No Liens have been recorded pursuant to any Environmental
Law with respect to any Real Property located in the United States or, to the
knowledge of any Loan Party, any other Real Property or other assets, currently
owned or leased by the Borrower or any of its Subsidiaries.

                  (i) Neither the Borrower nor any of its Subsidiaries is
currently conducting or financing any Remedial Action pursuant to any
Environmental Law, nor has any of the Loan Parties or any of their respective
Subsidiaries assumed by contract, agreement or operation of law any obligation
under Environmental Law, the cost of which, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

                  (j) There are no polychlorinated biphenyls or friable asbestos
present at any Real Property owned, leased or operated by the Borrower or any of
its Subsidiaries, which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

                  SECTION 3.16. Regulations U and X. The Loans, the use of the
proceeds thereof, this Agreement and the transactions contemplated hereby will
not result in a violation of or be inconsistent with any provision of Regulation
U or Regulation X.

                  SECTION 3.17. Disclosure; Accuracy of Information; Pro Forma
Balance Sheets and Projected Financial Statements. (a) The Loan Parties have
disclosed to the Lenders all agreements, instruments and corporate or other
restrictions to which they or any of their Subsidiaries is subject that, in each
case, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. Neither this Agreement nor any other document,
certificate or statement furnished to the Administrative Agent or any Lender by
or on behalf of any Loan Party in connection herewith (including, without
limitation, the Information Memorandum) contains any untrue statement of a
material fact or omits to state any material fact necessary in order to make the
statements contained herein and therein not misleading, in light of the
circumstances under which they were made; provided that to the extent this or
any such document, certificate or statement (including without limitation the
Information Memorandum) was based upon or constitutes a forecast or projection,
the Loan Parties represent only that they acted in good faith and utilized
reasonable assumptions and due care in the preparation of such document,
certificate or statement (it being recognized by the Administrative Agent and
the Lenders, however, that projections as to future events are not to be viewed
as facts and that the actual results during the period or periods covered by the
projections probably will differ from the projected results and that the
difference may be material).

                  (b) Not less than one week prior to the Effective Date, the
Borrower shall have furnished to the Lenders the pro forma condensed
consolidated balance sheet as of June 27, 2003, prepared giving effect to the
Transactions as if the Transactions had occurred on such date. Such pro forma
con-

                                      -56-
<PAGE>

solidated balance sheet (i) was prepared in good faith based on the same
assumptions used to prepare the pro forma financial statements included in the
Information Memorandum, (ii) accurately reflects all material adjustments
necessary to give effect to the Transactions and (iii) presents fairly the pro
forma financial position of the Borrower and its consolidated Subsidiaries as of
June 27, 2003, as if the Transactions had occurred on such date.

                  (c) Not less than one week prior to the Effective Date, the
Borrower shall have furnished to the Lenders pro forma consolidated income
statement projections for the Borrower and its Subsidiaries, pro forma
consolidated balance sheet projections for the Borrower and its Subsidiaries and
pro forma consolidated cash flow projections for Borrower and its Subsidiaries,
all for the Fiscal Years ending 2003 through 2009, inclusive, which shall be
prepared on a quarterly basis through and including Fiscal Year 2004 and
annually thereafter (the "Projected Financial Statements"), which give effect to
the Transactions and all Indebtedness and Liens incurred or created in
connection with the Transactions. The assumptions made in preparing the
Projected Financial Statements are reasonable as of the date of such projections
and as of the Effective Date and all material assumptions with respect to the
Projected Financial Statements are set forth therein. The Projected Financial
Statements present a good faith estimate of the consolidated financial
information contained therein at the date thereof, it being recognized by the
Administrative Agent and the Lenders, however, that projections as to future
events are not to be viewed as facts and that the actual results during the
period or periods covered by the projections probably will differ from the
projected results and that the difference may be material.

                  SECTION 3.18. Insurance. As of the Effective Date, set forth
on Schedule 3.18 is a summary of all insurance policies maintained by the
Borrower and each of its Subsidiaries (a) with respect to its properties
material to the business of the Borrower and its Subsidiaries against such
casualties and contingencies and of such types and in such amounts as are
customary in the case of similar businesses operating in the same or similar
locations, and (b) required to be maintained pursuant to the Security Documents.

                  SECTION 3.19. Labor Matters. Except as could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect
(for purposes of this representation being made on the Effective Date only, with
references to the Loan Parties in such definition being deemed to be references
to the Borrower and its Subsidiaries taken as a whole), (a) there are no
strikes, lockouts or slowdowns against the Borrower or any Subsidiary pending
or, to the knowledge of any Loan Party, threatened; (b) the hours worked by and
payments made to employees of the Borrower and its Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable Federal,
state, local or foreign law dealing with such matters; and (c) all payments due
from the Borrower or any Subsidiary, or for which any claim may be made against
the Borrower or any Subsidiary, on account of wages and employee health and
welfare insurance and other benefits, have been paid or accrued as a liability
on the books of the Borrower or such Subsidiary.

                  SECTION 3.20. Solvency. Immediately following the making of
each Loan and after giving effect to the application of the proceeds of such
Loans, (a) the fair value of the assets of each Loan Party, at a fair valuation,
will exceed its debts and liabilities, subordinated, contingent or otherwise;
(b) the present fair saleable value of the property of each Loan Party will be
greater than the amount that will be required to pay the probable liability of
its debts and other liabilities, subordinated, contingent or otherwise, as such
debts and other liabilities become absolute and matured; (c) each Loan Party
will be able to pay its debts and liabilities, subordinated, contingent or
otherwise, as such debts and liabilities become absolute and matured; and (d)
each Loan Party will not have unreasonably small capital with which to conduct
the business in which it is engaged as such business is now conducted and is
proposed to be conducted.

                                      -57-
<PAGE>

                  SECTION 3.21. Securities. Upon the issuance thereof, the
common stock of each of the Parent Guarantor's and the Borrower's Subsidiaries
will have been duly authorized, issued and delivered and will be fully paid,
nonassessable and free of preemptive rights that have not been waived. The
Equity Interests of each Subsidiary held, directly or indirectly, by the Parent
Guarantor are owned, directly or indirectly, by the Borrower free and clear of
all Liens. There are not, as of the Effective Date, any existing options,
warrants, calls, subscriptions, convertible or exchangeable securities, rights,
agreements, commitments or arrangements for any Person to acquire any common
stock of the Borrower or its Subsidiaries or any other securities convertible
into, exchangeable for or evidencing the right to subscribe for any such common
stock, except for transfers of Equity Interests of Non-U.S. Subsidiaries to a
Loan Party and except as disclosed in the financial statements delivered
pursuant to Sections 5.01(a) and (b) or otherwise disclosed to the Lenders prior
to the Effective Date.

                  SECTION 3.22. Indebtedness Outstanding; Certain Operating
Leases Terminated. (a) Set forth on Schedule 3.22(a) hereto is a list and
description of all Indebtedness of the Loan Parties and their respective
Subsidiaries (other than the Loans) that will be outstanding immediately after
the Effective Date after giving effect to the Recapitalization Transactions.

                  (b) Set forth on Schedule 3.22(b) hereto is a list and
description of all Indebtedness of the Loan Parties and their respective
Subsidiaries that will be repaid, defeased, transferred or otherwise terminated
on or prior to the Effective Date in connection with the Recapitalization
Transactions (or provision for such repayment reasonably acceptable to the
Administrative Agent having been made).

                  (c) Set forth on Schedule 3.22(c) hereto is a list and
description of all Liens of the Loan Parties and their respective Subsidiaries
(other than on Property of Non-U.S. Subsidiaries and other than Liens under the
Security Documents) that will be repaid, defeased, transferred or otherwise
terminated on or prior to the Effective Date in connection with the
Recapitalization Transactions.

                  (d) Set forth on Schedule 3.22(d) hereto is a list and
description of all Liens of the Loan Parties and their respective Subsidiaries
(other than on Property of Non-U.S. Subsidiaries and other than Liens under the
Security Documents) that will be outstanding immediately after the Effective
Date.

                  (e) The operating leases set forth in Schedule 1.01(a) shall
be terminated at the Effective Date; the annual rental expense for each such
operating lease as of the Effective Date is as set forth in Schedule 1.01(a).

                  SECTION 3.23. Security Documents. (a) The Pledge Agreement is
effective under New York law to create in favor of the Collateral Agent for its
benefit and the benefit of the Secured Parties, a legal, valid and enforceable
security interest in the Securities Collateral (as defined in the Pledge
Agreement) and, when such Securities Collateral is delivered to the Collateral
Agent, the Lien on such Collateral created by the Pledge Agreement shall
constitute under New York law a fully perfected Lien on, and security interest
in, all right, title and interest of the pledgor thereunder in such Securities
Collateral. Each Non-U.S. Pledge Agreement is effective under applicable law to
create in favor of the Collateral Agent for its benefit and the benefit of the
Secured Parties, a legal, valid and enforceable security interest in the
collateral pledged thereunder and, when the applicable steps described in the
legal opinion delivered with such Non-U.S. Pledge Agreement are complied with,
the Lien on such collateral created by such Non-U.S. Pledge Agreement shall
constitute under applicable law a fully perfected Lien on, and security interest
in, all right, title and interest of the pledgor thereunder in such collateral.

                  (b) (i) The Security Agreement is effective under New York law
to create in favor of the Collateral Agent, for its benefit and the benefit of
the Secured Parties, a legal, valid and enforceable security interest in the
Collateral (as defined in the Security Agreement) and (ii) when (x) financing

                                      -58-
<PAGE>

statements in appropriate form are filed in the offices specified in Schedule 7
to the Perfection Certificate and (y) upon the taking of possession or control
by the Collateral Agent of any such Collateral in which a security interest may
be perfected only by possession or control (which possession or control shall be
given to the Collateral Agent to the extent possession or control by the
Collateral Agent is required by the Security Agreement), the Lien on such
Collateral created by the Security Agreement shall constitute under New York law
a fully perfected Lien on, and security interest in, all right, title and
interest of the grantors thereunder in such Collateral (other than the
Intellectual Property (as defined in the Security Agreement)) to the extent such
Lien and security interest can be perfected by the filing of a financing
statement pursuant to the UCC or by possession or control by the Collateral
Agent, in each case prior and superior in right to any other Person, other than
with respect to Permitted Liens.

                  (c) When the filings in clause (b)(ii)(x) above are made and
when the Security Agreement (or a summary thereof) is filed in the United States
Patent and Trademark Office and the United States Copyright Office, the Lien on
the Intellectual Property created by the Security Agreement shall constitute a
fully perfected Lien on, and security interest in, all right, title and interest
of the Loan Parties in such Intellectual Property in which a security interest
may be perfected by filing, recording or registering a security agreement,
financing statement or analogous document in the United States Patent and
Trademark Office or the United States Copyright Office, as applicable (it being
understood that subsequent recordings in the United States Patent and Trademark
Office and the United States Copyright Office may be necessary to perfect a Lien
on registered trademarks, trademark applications and copyrights acquired by the
Loan Parties after the Effective Date), in each case prior and superior in right
to any other Person other than with respect to Permitted Liens.

                  (d) Each Mortgage executed and delivered as of the Effective
Date is, or, to the extent any Mortgage is duly executed and delivered
thereafter by the relevant Loan Party, such Mortgage will be, effective to
create, subject to the exceptions listed in each title insurance policy insuring
such Mortgage, in favor of the Collateral Agent, for its benefit and the benefit
of the Secured Parties, a legal, valid and enforceable Lien on and security
interest in all of the Loan Parties' right, title and interest in and to the
Mortgaged Properties thereunder and the proceeds thereof, and when the Mortgages
are filed in the offices specified in Schedule 3.23(d), the Mortgages shall
constitute a Lien on, and security interest in, all right, title and interest of
the Loan Parties in such Mortgaged Properties and the proceeds thereof, in each
case prior and superior in right to any other Person, other than with respect to
the rights of Persons pursuant to Permitted Liens.

                  (e) Except as set forth on Schedule 3.23(e), all information
set forth on the Perfection Certificate dated September 29, 2003 is accurate and
complete as of the Amendment No. 1 Date.

                  (f) Each Loan Party is in compliance with all the terms of the
Security Documents in all material respects.

                  SECTION 3.24. Anti-Terrorism Laws. (a) To the knowledge of the
Loan Parties, no Loan Party or any of its Affiliates is in violation of any laws
relating to terrorism or money laundering ("Anti-Terrorism Laws"), including
Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001
(the "Executive Order"), and the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001,
Public Law 107-56.

                  (b) To the knowledge of the Loan Parties, no Loan Party or any
of its Affiliates or their respective brokers or other agents acting or
benefiting in any capacity in connection with the Loans is any of the following:

                                      -59-
<PAGE>

                  (i) a Person or entity that is listed in the annex to, or is
         otherwise subject to the provisions of, the Executive Order;

                  (ii) a Person or entity owned or controlled by, or acting for
         or on behalf of, any Person or entity that is listed in the annex to,
         or is otherwise subject to the provisions of, the Executive Order;

                  (iii) a Person or entity with which any Lender is prohibited
         from dealing or otherwise engaging in any transaction by any
         Anti-Terrorism Law;

                  (iv) a Person or entity that commits, threatens or conspires
         to commit or supports "terrorism" as defined in the Executive Order; or

                  (v) a Person or entity that is named as a "specially
         designated national and blocked person" on the most current list
         published by the U.S. Treasury Department Office of Foreign Assets
         Control ("OFAC") at its official website or any replacement website or
         other replacement official publication of such list.

                  (c) To the knowledge of the Loan Parties, no Loan Party or any
of its brokers or other agents acting in any capacity in connection with the
Loans (i) conducts any business or engages in making or receiving any
contribution of funds, goods or services to or for the benefit of any Person
described in clause (b) above, (ii) deals in, or otherwise engages in any
transaction relating to, any property or interests in property blocked pursuant
to the Executive Order, or (iii) engages in or conspires to engage in any
transaction that evades or avoids, or has the purpose of evading or avoiding, or
attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law.

                                   ARTICLE IV

                                   CONDITIONS

                  SECTION 4.01. Conditions to Initial Credit Extension. The
obligations of the Lenders to make Loans, and the obligation of each Issuing
Bank to issue Letters of Credit, in each case, on the Effective Date are
subject, at the time of the making of such Loans or the issuance of such Letters
of Credit, to satisfaction of the following conditions on or prior to the
Effective Date:(a) The Administrative
         Agent (or its counsel) shall have received from each party hereto
         either (i) a counterpart of this Agreement signed on behalf of such
         party or (ii) written evidence satisfactory to the Administrative Agent
         (which may include telecopy transmission of a signed signature page of
         this Agreement) that such party has signed a counterpart of this
         Agreement.

                  (b) The Administrative Agent shall have received (i)
         counterparts of the Guarantee Agreement signed on behalf of each wholly
         owned Domestic Subsidiary and the Parent Guarantor and (ii)
         counterparts of the Indemnity, Subrogation and Contribution Agreement
         in the Form of Exhibit F signed on behalf of each Loan Party.

                  (c) The Administrative Agent shall have received from the
         Borrower a Closing Certificate in the Form of Exhibit H, dated the
         Effective Date and signed on behalf of the Borrower by a Financial
         Officer of the Parent Guarantor.

                  (d) The Administrative Agent shall have received such
         documents and certificates as the Administrative Agent or its counsel
         may reasonably request relating to the organization, existence and good
         standing of each Loan Party, the authorization of the Transactions and
         any other

                                      -60-
<PAGE>

         legal matters relating to the Loan Parties, the Transaction Documents
         or the Transactions, all in form and substance reasonably satisfactory
         to the Administrative Agent and its counsel.

                  (e) The Administrative Agent shall have received from Milbank,
         Tweed, Hadley & McCloy LLP, counsel to the Loan Parties, and Juliet L.
         Ream, general counsel of the Parent Guarantor, opinions addressed to
         each Agent and the Lenders and dated the Effective Date substantially
         in the form of Exhibits L-1 and L-2, respectively.

                  (f) The Administrative Agent shall have received favorable
         written opinions of (i) local counsel in each of the jurisdictions (in
         each case unless, and to the extent otherwise agreed by the
         Administrative Agent) referred to in Schedule 4.01(f), in each case
         reasonably satisfactory to the Administrative Agent, which opinions
         shall (x) be addressed to each Agent and the Lenders and be dated the
         Effective Date, (y) cover various matters regarding the perfection and
         priority of the security interests granted in respect of the Equity
         Interests of Persons organized in such Non-U.S. Jurisdiction, and such
         other matters incident to the transactions contemplated herein as the
         Agents may reasonably request and (z) be in form, scope and substance
         reasonably satisfactory to the Agents, and (ii) local counsel to the
         Loan Parties as specified in Schedule 4.01(f) in the form of Exhibit
         L-3, which opinions (x) shall be addressed to each Agent and each of
         the Lenders and be dated the Effective Date, (y) shall cover the
         enforceability of the respective Mortgage and perfection of the Liens
         and security interests granted pursuant to the relevant Security
         Documents and such other matters incident to the transactions
         contemplated herein as the Agents may reasonably request and (z) shall
         be in form and substance reasonably satisfactory to the Agents.

                  (g) The issuance of the Subordinated Notes by the Borrower
         shall have been consummated on the Effective Date and shall have terms
         and conditions substantially consistent with and as set forth in the
         Offering Memorandum dated September 22, 2003. On the Effective Date,
         all Subordinated Note Documents shall be in full force and effect. Each
         of the conditions precedent to the consummation of the issuance of the
         Subordinated Notes as set forth in the Subordinated Note Documents
         shall have been satisfied in all material respects and not waived,
         consented to or approved except with the consent of the Joint Lead
         Arrangers (such consent not to be unreasonably withheld).

                  (h) Not later than 30 days before the Effective Date, the
         Lenders shall have received, to the extent available, unaudited
         consolidated and consolidating balance sheets and related statements of
         income, stockholders' equity and cash flows of the Parent Guarantor for
         each completed Fiscal Quarter since the date of the last audited
         financial statements (and, to the extent available, for each completed
         month since the last such quarter), which unaudited financial
         statements (i) shall be in form and scope reasonably satisfactory to
         the Lenders and (ii) shall not be materially inconsistent with the
         financial statements previously provided to the Lenders.

                  (i) The Lenders shall have received a certificate of the chief
         financial officer of the Parent Guarantor in the form of Exhibit M and
         reasonably satisfactory to the Administrative Agent, confirming the
         solvency of each of the Loan Parties on a consolidated basis after
         giving effect to the Transactions.

                  (j) The Recapitalization Transactions shall have been
         consummated simultaneously with the Borrowings under this Agreement on
         the Effective Date in all material respects on the terms of the
         Recapitalization Documents, without any modification or waiver of a
         material term or condition thereof unless such modification or waiver
         shall have been approved by the Joint Lead Arrangers (such approval not
         to be unreasonably withheld or delayed).

                                      -61-
<PAGE>

                  (k) The Lenders shall have received (i) the pro forma
         consolidated balance sheet referred to in Section 3.17(b), and the
         Administrative Agent shall be reasonably satisfied that such balance
         sheet is not materially inconsistent with the forecasts previously
         provided to the Administrative Agent, and (ii) the Projected Financial
         Statements, and the Administrative Agent shall be reasonably satisfied
         that such Projected Financial Statements are not materially
         inconsistent with the projections previously provided to the Joint Lead
         Arrangers.

                  (l) All equity investments and all roll-over equity (other
         than any immaterial amount of such roll-over equity) in the Parent
         Guarantor shall have been made and on terms and conditions set forth in
         the Recapitalization Documents and the New Preferred Stock Documents,
         without any modification or waiver of a material term or condition
         thereof unless such modification or waiver shall have been approved by
         the Joint Lead Arrangers (such approval not to be unreasonably withheld
         or delayed).

                  (m) The Administrative Agent shall have received satisfactory
         evidence that all loans outstanding under, and all other amounts due in
         respect of, the Indebtedness to Be Paid shall have been repaid in full
         (or satisfactory arrangements made for such repayment) and the
         commitments thereunder shall have been permanently terminated, and all
         related guarantees and security interests shall have been terminated
         (or provisions reasonably satisfactory to the Administrative Agent
         shall have been made for their termination).

                  (n) After giving effect to the Transactions, none of the
         Parent Guarantor or the Borrower or their respective Subsidiaries shall
         have outstanding any Indebtedness other than (i) the Loans and other
         extensions of credit under this Agreement, (ii) the Subordinated Notes
         and (iii) Indebtedness to Remain Outstanding.

                  (o) All requisite material governmental authorities and third
         parties shall have approved or consented to the Recapitalization
         Transactions to the extent required, all applicable appeal periods
         shall have expired and there shall be no judicial or regulatory action
         by a governmental agency, actual or threatened, that could reasonably
         be expected to restrain, prevent or impose materially burdensome
         conditions on the Recapitalization Transactions.

                  (p) The Administrative Agent shall have received all Fees
         payable to the Administrative Agent or any Lender on or prior to the
         Effective Date under the Fee Letter and, to the extent that statements
         or invoices therefor are presented to the Borrower at least one
         Business Day prior to the Effective Date, all other amounts due and
         payable pursuant to the Loan Documents on or prior to the Effective
         Date, including reimbursement or payment of all reasonable
         out-of-pocket expenses (including reasonable fees, charges and
         disbursements of Cahill Gordon & Reindel LLP (receipt of such invoice
         at least one Business Day prior to the Effective Date the Borrower
         hereby acknowledges) and domestic and foreign local counsel) required
         to be reimbursed or paid by the Borrower hereunder or under any other
         Loan Document.

                  (q) The Collateral Agent shall have received counterparts of
         the Pledge Agreement signed by each Loan Party, and covering (subject
         to the terms of Section 5.11) pledges of 100% of the Equity Interests
         held, directly or indirectly, by the Borrower in all of its Domestic
         Subsidiaries and 65% of the voting Equity Interests and 100% of the
         nonvoting Equity Interests of the "first tier" Non-U.S. Subsidiaries of
         the Borrower (except with respect to the Equity Interest set forth on
         Schedule 5.18(a) and Excluded Non-U.S. Subsidiaries) and counterparts
         of the Non-U.S. Pledge Agreements covering (subject to the terms of
         Section 5.11) pledges of 65% of the voting Equity Interests and 100% of
         the non-voting Equity Interests of the "first tier" Non-U.S.
         Subsidiaries of the Borrower (except with respect to the Equity
         Interest set forth on Schedule 5.18(a) and

                                      -62-
<PAGE>

         Excluded Non-U.S. Subsidiaries), together with promissory notes
         evidencing all intercompany Indebtedness for amounts over $250,000 owed
         to any Loan Party by the Borrower or any Subsidiary as of the Effective
         Date and stock powers and instruments of transfer, endorsed in blank,
         with respect to the Equity Interests of the Borrower's Domestic
         Subsidiaries and any such promissory notes.

                  (r) The Collateral Agent shall have received counterparts of
         the Security Agreement and Pledge Agreement signed by each Loan Party,
         in each case, together with the following in form and substance
         reasonably satisfactory to the Collateral Agent:

                           (A) certificates representing all Pledged Securities
                  (other than the Equity Interests set forth in Schedule
                  5.18(a)), together with executed and undated stock powers
                  and/or assignments in blank;

                           (B) [Reserved];

                           (C) certificates of insurance required under the
                  Security Documents;

                           (D) appropriate financing statements or comparable
                  documents authorized by (and executed by, to the extent
                  applicable) the appropriate entities in proper form for filing
                  under the provisions of the UCC and applicable domestic or
                  local laws, rules or regulations in each of the offices where
                  such filing is necessary or appropriate, in the Collateral
                  Agent's sole discretion, to grant to the Collateral Agent a
                  perfected first priority Lien on such Collateral, superior and
                  prior to the rights of all third persons other than the
                  holders of Permitted Liens;

                           (E) UCC, judgment and tax lien, bankruptcy and
                  pending lawsuit search reports listing all effective financing
                  statements or comparable documents which name any applicable
                  Loan Party as debtor and which are filed in those
                  jurisdictions in which, any Loan Party is organized, any of
                  such Collateral is located and the jurisdictions in which any
                  applicable Loan Party's principal place of business is located
                  in the United States, together with copies of such existing
                  financing statements, none of which shall encumber such
                  Collateral covered or intended or purported to be covered by
                  the Security Documents other than Permitted Liens except as to
                  those UCC, judgment and tax lien, bankruptcy and pending
                  lawsuit search reports delivery of which the Administrative
                  Agent, in its reasonable judgment, has waived as of the date
                  hereof and instead elected to receive pursuant to Section
                  5.18(d) hereof;

                           (F) evidence of the preparation for recording or
                  filing, as applicable, of all recordings and filings of each
                  such Security Document, including, without limitation, with
                  the United States Patent and Trademark Office and the United
                  States Copyright Office, and delivery and recordation, if
                  necessary, of such other security and other documents,
                  including, without limitation, UCC-3 termination statements
                  with respect to UCC filings that do not constitute Permitted
                  Liens, as may be necessary or, in the opinion of the
                  Collateral Agent, desirable to perfect the Liens created, or
                  purported or intended to be created, by such Security
                  Documents;

                           (G) [Reserved];

                                      -63-
<PAGE>

                           (H) evidence that all other actions reasonably
                  necessary or, in the opinion of the Collateral Agent,
                  desirable to perfect the security interest created by the
                  Security Documents have been taken; and

                           (I) a completed Perfection Certificate dated the
                  Effective Date and signed by an executive officer or Financial
                  Officer of the Borrower, together with all attachments
                  contemplated thereby, including the results of a search of the
                  UCC (or equivalent) filings made with respect to the Loan
                  Parties in the jurisdictions contemplated by the Perfection
                  Certificate and copies of the financing statements (or similar
                  documents) disclosed by such search and evidence reasonably
                  satisfactory to the Administrative Agent that the Liens
                  indicated by such financing statements (or similar documents)
                  are Permitted Liens or have been released.

                  (s) The Collateral Agent shall have received the following
         documents and instruments:

                           (A) Mortgages encumbering each Mortgaged Property in
                  which the applicable Loan Party holds an ownership or
                  leasehold interest (as indicated on Schedule 4.01(s)(A)
                  hereto) in favor of the Collateral Agent, for its benefit and
                  the benefit of the Secured Parties, duly executed and
                  acknowledged by the applicable Loan Party, and otherwise in
                  form for recording in the recording office where each such
                  Mortgaged Property is situated, together with such
                  certificates, affidavits, questionnaires or returns as shall
                  be required in connection with the recording or filing thereof
                  to create a lien under applicable law, and such UCC-1
                  financing statements and other similar statements as are
                  contemplated by the counsel opinions described in Section
                  4.01(f) in respect of such Mortgage, all of which shall be in
                  form and substance reasonably satisfactory to the Collateral
                  Agent, and any other instruments necessary to grant a mortgage
                  lien under the laws of any applicable jurisdiction, which
                  Mortgage and financing statements and other instruments shall
                  when recorded be effective to create a Lien on such Mortgaged
                  Property subject to no other Liens except Permitted Liens;

                           (B) with respect to each Mortgaged Property, such
                  consents, approvals, amendments, supplements, estoppels,
                  tenant subordination agreements or other instruments, in form
                  acceptable to the Collateral Agent, as necessary or required
                  to consummate the transactions contemplated hereby or as shall
                  reasonably be deemed necessary by the Collateral Agent in
                  order for the owner or holder of the fee or leasehold interest
                  constituting such Mortgaged Property to grant the Lien
                  contemplated by the Mortgage with respect to such Mortgaged
                  Property;

                           (C) with respect to each Mortgage, a policy (or
                  commitment to issue a policy) of title insurance insuring (or
                  committing to insure) the Lien of such Mortgage as a valid
                  first mortgage Lien on the real property and fixtures
                  described therein in an amount not less than the amount set
                  forth on Schedule 4.01(s)(C) (115% of the fair market value
                  thereof), which policies (or commitments) shall (w) be issued
                  by the Title Company, (x) include such reinsurance
                  arrangements (with provisions for direct access) as shall be
                  reasonably acceptable to the Collateral Agent, (y) contain a
                  "tie-in" or "cluster" endorsement (if available under
                  applicable law) (i.e., policies which insure against losses
                  regardless of location or allocated value of the insured
                  property up to a stated maximum coverage amount) and have been
                  supplemented by such endorsements as shall be reasonably
                  requested by the Collateral Agent (including, without
                  limitation, endorsements,

                                      -64-
<PAGE>

                  to the extent available in each jurisdiction at commercially
                  reasonably rates, on matters relating to usury, first loss,
                  last dollar, zoning, contiguity, variable rate, revolving
                  credit, doing business, access, survey, address and so-called
                  comprehensive coverage over covenants and restrictions) and
                  (z) contain only such exceptions to title as shall be agreed
                  to by the Collateral Agent on or prior to the Effective Date
                  with respect to such Mortgaged Property, which exceptions
                  shall be shown on Schedule B to the title insurance policies
                  for each such Mortgaged Property issued by the Title Company;

                           (D) with respect to each Mortgaged Property, policies
                  or certificates of insurance as required by the Mortgage
                  relating thereto, which policies or certificates shall comply
                  with the insurance requirements contained in Section 5.04;

                           (E) with respect to each Mortgaged Property, a Survey
                  in form and substance reasonably acceptable to the Collateral
                  Agent;

                           (F) with respect to each Mortgaged Property, such
                  affidavits, certificates, information (including financial
                  data) and instruments of indemnification (including, without
                  limitation, a so-called "gap" indemnification) as shall be
                  reasonably required to induce the Title Company to issue the
                  policy or policies (or commitment) and endorsements
                  contemplated in subparagraph (C) above;

                           (G) [Reserved];

                           (H) with respect to each Mortgaged Property, copies
                  of all leases or other agreements relating to possessory
                  interests to which any Loan Party or Subsidiary thereof is a
                  party. To the extent any of the foregoing in which any Loan
                  Party is a landlord or sublandlord affect any Mortgaged
                  Property, such agreement shall be subordinate to the Mortgage
                  to be recorded against such Mortgaged Property and otherwise
                  reasonably acceptable to the Collateral Agent; and

                           (I) with respect to each Mortgaged Property, a Real
                  Property Officer's Certificate substantially in the form of
                  Exhibit O attached hereto.

                  (t) The Administrative Agent shall have received subordination
         agreements in form and substance reasonably satisfactory to it covering
         all intercompany notes or other obligations owed by a Loan Party to a
         Subsidiary of the Parent Guarantor that is not a Loan Party.

                  (u) The Collateral Agent shall have received a counterpart of
         the Collateral Sharing Agreement signed by the Borrower and the
         Subsidiaries of the Borrower listed thereon.

                  (v) The Collateral Agent shall have received evidence and be
         reasonably satisfied that the insurance required by Section 5.04 and
         the Security Documents is in effect in form and substance satisfactory
         to the Collateral Agent.

                  (w) The operating leases set forth in Schedule 1.01(a) shall
         have been terminated.

                  (x) The Parent Preferred Stock shall be purchased or redeemed
         in full or shall be called for redemption in accordance with the
         documents governing the same and, if so called for redemption at the
         Effective Date, an amount in cash sufficient to pay the redemption
         price thereof plus all accrued and unpaid dividends and any other
         amounts payable thereon shall be deposited in an escrow account with an
         escrow agent reasonably acceptable to the Administrative Agent

                                      -65-
<PAGE>

         pursuant to an escrow agreement on terms and conditions reasonably
         acceptable to the Administrative Agent.

                  (y) The employment agreements provided to the Administrative
         Agent to be executed and delivered on or before the Effective Date
         shall have been executed and delivered by the parties thereto
         substantially on the terms disclosed to the Administrative Agent and be
         in full force and effect.

                  (z) The Fee Letter shall have been executed and delivered by
         the parties thereto and assumed by the Borrower pursuant to an
         agreement satisfactory to the Administrative Agent.

                  SECTION 4.02. Conditions to Each Credit Event. The agreement
of each Lender to make any Loan and of the Issuing Bank to issue, amend, renew
or extend any Letter of Credit (such event being called a "Credit Event")
(excluding continuations and conversions of Loans) requested to be made by it on
any date is subject to the satisfaction of the following conditions:

                  (a) The Administrative Agent shall have received a notice of
         such Credit Event as required by Section 2.02 or 2.05, as applicable.

                  (b) The representations and warranties set forth in Article
         III hereof and in the other Loan Documents shall be true and correct in
         all material respects with the same effect as if then made (unless
         expressly stated to relate to an earlier date, in which case such
         representations and warranties shall be true and correct as of such
         earlier date).

                  (c) At the time of and immediately after such Credit Event, no
         Default or Event of Default shall have occurred and be continuing.

Each Credit Event shall be deemed to constitute a representation and warranty by
the Borrower on the date of such Credit Event, as to the matters specified in
paragraphs (b) and (c) of this Section 4.02.

                  SECTION 4.03. Conditions to Effectiveness of Amendment No. 1
with Respect to Majority Matters. Amendment No. 1 shall become effective, in all
respects other than with respect to the amendment of the "Applicable Rate"
provisions (which shall become effective pursuant to Section 4.04 hereof), on
and as of the first date (the "Amendment No. 1 Date") on which all of the
following conditions precedent shall have been satisfied:

                  (a) The representations and warranties set forth in Article
         III hereof and in the other Loan Documents shall be true and correct in
         all material respects with the same effect as if then made (unless
         expressly stated to relate to an earlier date, in which case such
         representations and warranties shall be true and correct as of such
         earlier date).

                  (b) At the time of and immediately after such amendment, no
         Default or Event of Default shall have occurred and be continuing.

                  (c) The Administrative Agent (or its counsel) shall have
         received from the Borrower, the Parent Guarantor and the Requisite
         Lenders either (i) a counterpart of Amendment No. 1 signed on behalf of
         such party or (ii) written evidence satisfactory to the Administrative
         Agent (which may include telecopy transmission of a signed signature
         page of this Agreement) that such party has signed a counterpart of
         Amendment No. 1.

                                      -66-
<PAGE>

                  (d) The Administrative Agent shall have received (i)
         counterparts of the Guarantee Agreement signed on behalf of each wholly
         owned Domestic Subsidiary and the Parent Guarantor and (ii) an
         amendment to the Security Agreement signed on behalf of each Loan Party
         and the Collateral Agent (which amendment shall exclude any non-U.S.
         Intellectual Property owned by the Loan Parties from the Collateral
         thereunder and shall be in form and substance reasonably acceptable to
         the Collateral Agent).

                  (e) The Administrative Agent shall have received from the
         Borrower a Closing Certificate in the Form of Exhibit H, dated the
         Amendment No. 1 Date and signed on behalf of the Borrower by a
         Financial Officer of the Parent Guarantor.

                  (f) The Administrative Agent shall have received such
         documents and certificates as the Administrative Agent or its counsel
         may reasonably request relating to the organization, existence and good
         standing of each Loan Party, the authorization of the Transactions and
         any other legal matters relating to the Loan Parties, the Transaction
         Documents or the Transactions, all in form and substance reasonably
         satisfactory to the Administrative Agent and its counsel.

                  (g) The Administrative Agent shall have received from Milbank,
         Tweed, Hadley & McCloy LLP, counsel to the Loan Parties, and Juliet L.
         Ream, general counsel of the Parent Guarantor, opinions addressed to
         each Agent and the Lenders and dated the Amendment No. 1 Date
         substantially in the form of Exhibits L-1 and L-2, respectively (with
         such changes therefrom as may be reasonably acceptable to the
         Administrative Agent).

                  (h) [Reserved].

                  (i) The issuance of the New Subordinated Notes by the Borrower
         generating net proceeds of not less than $100.0 million but not more
         than $150.0 million shall have been consummated on the Amendment No. 1
         Date and shall have terms and conditions substantially consistent with
         and as set forth in the Offering Memorandum dated January 15, 2004. On
         the Amendment No. 1 Date, all New Subordinated Note Documents shall be
         in full force and effect. Each of the conditions precedent to the
         consummation of the issuance of the New Subordinated Notes as set forth
         in the New Subordinated Note Documents shall have been satisfied in all
         material respects and not waived, consented to or approved except with
         the consent of the Administrative Agent (such consent not to be
         unreasonably withheld).

                  (j) The Lenders and their Affiliates shall have received all
         fees required by the Engagement Letter and, to the extent that
         statements or invoices therefor are presented to the Borrower at least
         one Business Day prior to the Amendment No. 1 Date, all other amounts
         due and payable pursuant to the Engagement Letter on or prior to the
         Amendment No. 1 Date, including, subject to the Engagement Letter,
         reimbursement or payment of all reasonable out-of-pocket expenses
         (including reasonable fees, charges and disbursements of Cahill Gordon
         & Reindel LLP (receipt of such invoice at least one Business Day prior
         to the Amendment No. 1 Date the Borrower hereby acknowledges) and
         domestic and foreign local counsel) required to be reimbursed or paid
         by the Borrower hereunder or under any other Loan Document.

                  (k) The Collateral Agent shall have received the following in
         form and substance reasonably satisfactory to the Collateral Agent:

                           (A) UCC, judgment and tax lien, bankruptcy and
                  pending lawsuit search reports listing all effective financing
                  statements or comparable documents which name any applicable
                  Loan Party as debtor and which are filed in the jurisdiction
                  in which any Loan

                                      -67-
<PAGE>

                  Party is organized, together with copies of such existing
                  financing statements, none of which shall encumber such
                  Collateral covered or intended or purported to be covered by
                  the Security Documents other than Permitted Liens except as to
                  those UCC, judgment and tax lien, bankruptcy and pending
                  lawsuit search reports delivery of which the Administrative
                  Agent, in its reasonable judgment, has waived as of the
                  Amendment No. 1 Date and instead elected to receive pursuant
                  to Section 5.18(d) hereof; and

                           (B) evidence that all actions reasonably necessary
                  or, in the opinion of the Collateral Agent, desirable to
                  perfect the security interest created by the Security
                  Documents have been taken.

                  (l) The Collateral Agent shall have received the following
         documents and instruments (to the extent that the Administrative Agent
         determines such documents are reasonably required due to the amendments
         to the Pre-Amendment Credit Agreement contemplated by Amendment No. 1):

                           (A) with respect to each Mortgage, a Mortgage
                  Amendment substantially in the form of Exhibit Q hereto (each
                  a "Mortgage Amendment") duly executed and acknowledged by the
                  applicable Loan Party, and otherwise in form for recording in
                  the recording office where each such Mortgage was recorded,
                  together with such certificates, affidavits, questionnaires or
                  returns as shall be required in connection with the recording
                  or filing thereof under applicable law, all of which shall be
                  in form and substance reasonably satisfactory to the
                  Collateral Agent;

                           (B) with respect to each Mortgage Amendment, deliver
                  a copy of the existing mortgage title insurance policy and an
                  endorsement with respect thereto (collectively, the "Mortgage
                  Policy") relating to the Mortgage encumbering such Mortgaged
                  Property assuring the Collateral Agent that the Mortgage, as
                  amended by the Mortgage Amendment is a valid and enforceable
                  first priority lien on such Mortgaged Property in favor of the
                  Collateral Agent for the benefit of the Secured Parties free
                  and clear of all defects and encumbrances except Liens
                  permitted to exist on such Mortgaged Property pursuant to the
                  applicable Mortgage, and such Mortgage Policy shall otherwise
                  be in form and substance reasonably satisfactory to the
                  Collateral Agent and shall not include a survey exception or
                  an exception for mechanics' liens, and shall provide for
                  affirmative insurance and such reinsurance as the Collateral
                  Agent in its discretion may reasonably requested;

                           (C) with respect to each Mortgage Amendment, opinions
                  of local counsel to the Loan Parties as specified in Schedule
                  4.01(f) in the form of Exhibit L-3, which opinions (x) shall
                  be addressed to each Agent and each of the Lenders and be
                  dated the Effective Date, (y) shall cover the enforceability
                  of the respective Mortgage as amended by the Mortgage
                  Amendment and perfection of the Liens and security interests
                  granted pursuant to the relevant Security Documents and such
                  other matters incident to the transactions contemplated herein
                  as the Agents may reasonably request and (z) shall be in form
                  and substance reasonably satisfactory to the Agents.

                  (m) All other conditions to effectiveness of Amendment No. 1
         set forth in this Section 4.03 shall have occurred on or before
         February 7, 2004.

                  SECTION 4.04. Conditions to the Effectiveness of Amendment No.
1 with Respect to the Applicable Rate Provisions. The agreement of each Lender
to amend the definition of "Applicable Rate" and all related provisions is
subject to the conditions precedent that all conditions precedent set

                                      -68-
<PAGE>

forth in Section 4.03 shall have been satisfied and (a) with respect to the
Applicable Rate applicable to the Term B Loans, to the execution and delivery of
Amendment No. 1 by all Term B Lenders under the Pre-Amendment Credit Agreement
immediately before giving effect to this amendment and (b) with respect to the
Applicable Rate applicable to the Revolving Loans, to the execution and delivery
of Amendment No. 1 by all Revolving Lenders under the Pre-Amendment Credit
Agreement immediately before giving effect to this amendment.

                                   ARTICLE V

                              AFFIRMATIVE COVENANTS

                  Each Loan Party hereby covenants and agrees with the Lenders
that on or after the Effective Date and until the Commitments have expired or
terminated and the principal of and interest on each Loan and all fees and other
amounts payable hereunder or under any other Loan Document have been paid in
full and all Letters of Credit have expired or terminated and all LC
Disbursements shall have been reimbursed:

                  SECTION 5.01. Financial Information, Reports, Notices, etc.
The Borrower will furnish, or will cause to be furnished, to each Lender and the
Administrative Agent copies of the following financial statements, reports,
notices and information:

                  (a) as soon as available and in any event within 45 days (or
         such shorter period for the filing of the Parent Guarantor's Form 10-Q
         as may be required by the SEC) after the end of each of the first three
         Fiscal Quarters of each Fiscal Year of the Parent Guarantor, a
         consolidated balance sheet of the Parent Guarantor and its Subsidiaries
         as of the end of such Fiscal Quarter and consolidated statements of
         earnings and cash flow of the Parent Guarantor and its Subsidiaries for
         such Fiscal Quarter and for the same period in the prior Fiscal Year
         and for the period commencing at the end of the previous Fiscal Year
         and ending with the end of such Fiscal Quarter, certified by a
         Financial Officer of the Parent Guarantor, it being understood and
         agreed that the delivery of the Parent Guarantor's Form 10-Q (as filed
         with the SEC), if certified as required in this clause (a), shall
         satisfy the requirements set forth in this clause);

                  (b) as soon as available and in any event within 90 days (or
         such shorter period as may be required for the filing of the Parent
         Guarantor's Form 10-K by the SEC) after the end of each Fiscal Year of
         the Parent Guarantor, a copy of the annual audit report for such Fiscal
         Year for the Parent Guarantor and its Subsidiaries, including therein a
         consolidated balance sheet of the Parent Guarantor and its Subsidiaries
         as of the end of such Fiscal Year and consolidated statements of
         earnings and cash flow of the Parent Guarantor and its Subsidiaries for
         such Fiscal Year, in each case certified (without any Impermissible
         Qualification) in a manner acceptable to the Administrative Agent by
         PricewaterhouseCoopers LLP or other independent public accountants
         reasonably acceptable to the Administrative Agent (it being understood
         and agreed that the delivery of the Parent Guarantor's Form 10-K (as
         filed with the SEC), if certified as required in this clause (b), shall
         satisfy such delivery requirement in this clause), together with a
         certificate of the accounting firm that reported on such financial
         statements stating whether they obtained knowledge during the course of
         their examination of such financial statements of any Default or Event
         of Default (which certificate may be limited to the extent required by
         accounting rules or guidelines);

                  (c) concurrently with the delivery of the financial statements
         referred to in the foregoing clauses (a) and (b), a Compliance
         Certificate;

                                      -69-
<PAGE>

                  (d) no later than October 31 of each Fiscal Year of the Parent
         Guarantor, a detailed consolidated budget by Fiscal Quarter for such
         Fiscal Year (including a projected consolidated balance sheet and
         related statements of projected operations and cash flow as of the end
         of and for each Fiscal Quarter during such Fiscal Year) and the
         succeeding Fiscal Years through the Term B Loan Maturity Date
         (including a projected consolidated balance sheet and related
         statements of projected operations and cash flow as of the end of and
         for each Fiscal Quarter during such Fiscal Year) and, promptly when
         available, any significant revisions of such budgets;

                  (e) promptly upon receipt thereof, copies of all reports
         submitted to the Parent Guarantor by independent certified public
         accountants in connection with each annual, interim or special audit of
         the books of the Parent Guarantor or any of its Subsidiaries made by
         such accountants, including any management letters submitted by such
         accountants to management in connection with their annual audit;

                  (f) as soon as possible and in any event within three Business
         Days after becoming aware of the occurrence of any Default or Event of
         Default, a statement of a Financial Officer of the Parent Guarantor
         setting forth details of such Default or Event of Default and the
         action which the Parent Guarantor has taken and proposes to take with
         respect thereto;

                  (g) as soon as possible and in any event within five Business
         Days after any Loan Party becoming actually aware of (i) the occurrence
         of any adverse development with respect to any litigation, action or
         proceeding which, individually or in the aggregate, could reasonably be
         expected to have a Material Adverse Effect or (ii) the commencement of
         any litigation, action or proceeding which, individually or in the
         aggregate, could reasonably be expected to have a Material Adverse
         Effect or that purports to affect the legality, validity or
         enforceability of this Agreement or any other Loan Document or the
         transactions contemplated hereby or thereby, notice thereof and copies
         of all documentation relating thereto;

                  (h) promptly after the sending or filing thereof, copies of
         all reports which the Parent Guarantor sends to its security holders
         generally, and all reports, registration statements (other than on Form
         S-8 or any successor form) or other materials (including affidavits
         with respect to reports) which the Parent Guarantor or any of its
         Subsidiaries or any of their officers files with the SEC or any
         national securities exchange;

                  (i) reasonably promptly upon becoming aware of the taking of
         any specific actions by the Parent Guarantor or any other Person to
         terminate any Pension Plan (other than a termination pursuant to
         Section 4041(b) of ERISA which can be completed without the Parent
         Guarantor or any ERISA Affiliate having to provide more than $1.0
         million in addition to the normal contribution required for the plan
         year in which termination occurs to make such Pension Plan sufficient),
         or the occurrence of an ERISA Event which could reasonably be expected
         to result in a Lien on the assets of any Loan Party or a Subsidiary or
         in the incurrence by a Loan Party of any liability, fine or penalty
         which, individually or in the aggregate, could reasonably be expected
         to have a Material Adverse Effect, notice thereof and copies of all
         documentation relating thereto;

                  (j) reasonably promptly upon written request by the
         Administrative Agent, copies of: (i) each Schedule B (Actuarial
         Information) to the annual report (Form 5500 Series) filed by any Loan
         Party or ERISA Affiliate with the Internal Revenue Service with respect
         to each Pension Plan; (ii) the most recent actuarial valuation report
         for each Pension Plan; (iii) all notices received by any Loan Party or
         ERISA Affiliate from a Multiemployer Plan sponsor or any governmental
         agency concerning an ERISA Event; and (iv) such other documents or
         governmental reports or filings relating to any Plan as the
         Administrative Agent shall reasonably request;

                                      -70-
<PAGE>

                  (k) as soon as possible, notice of any other development
         which, individually or in the aggregate, could reasonably be expected
         to have a Material Adverse Effect;

                  (l) annually, the aggregate fair market value of all
         Intellectual Property transferred by the Loan Parties to the IP
         Subsidiary; and

                  (m) such other information respecting the condition or
         operations, financial or otherwise, of the Parent Guarantor or any of
         its Subsidiaries as any Lender through the Administrative Agent may
         from time to time reasonably request.

                  SECTION 5.02. Compliance with Laws, etc. The Loan Parties
will, and will cause each of their Subsidiaries to, comply in all respects with
all applicable laws, rules, regulations and orders, except where such
noncompliance, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect, such compliance to include, subject
to the foregoing and to Section 6.03 (without limitation):

                  (a) the maintenance and preservation of their and their
         Subsidiaries' existence and their qualification as a foreign
         corporation or partnership (or comparable foreign qualification, if
         applicable, in the case of any other form of legal entity), and

                  (b) the payment, before the same become delinquent, of all
         taxes, assessments and governmental charges imposed upon them or upon
         their property except as provided in Section 5.09.

                  SECTION 5.03. Maintenance of Properties. Each Loan Party and
each of its respective Subsidiaries will maintain, preserve, protect and keep
its material properties and assets in good repair, working order and condition,
and make necessary and proper repairs, renewals and replacements so that its
business carried on in connection therewith may be properly conducted at all
times; provided that nothing in this Section 5.03 shall prevent any Loan Party
from discontinuing the operation and maintenance of any of its properties or any
of those of its Subsidiaries if such discontinuance is, in the reasonable
commercial judgment of such Loan Party, desirable in the conduct of its or their
business and does not individually or in the aggregate have a Material Adverse
Effect.

                  SECTION 5.04. Insurance. The Loan Parties will and will cause
each of their respective Subsidiaries to maintain or cause to be maintained with
insurance companies that the Loan Parties reasonably believe to be financially
sound and responsible (a) insurance with respect to their properties material to
the business of the Loan Parties and their respective Subsidiaries against such
casualties and contingencies and of such types and in such amounts with such
deductibles as is customary in the case of similar businesses operating in the
same or similar locations (including, without limitation, (i) physical hazard
insurance on an "all risk" basis, (ii) commercial general liability against
claims for bodily injury, death or property damage covering any and all claims,
(iii) explosion insurance in respect of any boilers, machinery or similar
apparatus constituting Collateral, (iv) business interruption insurance, (v)
worker's compensation insurance as may be required by any Requirement of Law and
(vi) such other insurance against risks as the Administrative Agent may from
time to time require) and (b) all insurance required to be maintained pursuant
to the Security Documents, and will, upon request of the Administrative Agent,
furnish to each Lender at reasonable intervals a certificate of an Authorized
Officer of the Borrower setting forth the nature and extent of all insurance
maintained by the Loan Parties and their respective Subsidiaries in accordance
with this Section. Each such insurance policy shall provide that (i) it may not
be cancelled or otherwise terminated without at least thirty (30) days' prior
written notice to the Collateral Agent (and to the extent any such policy is
cancelled, modified or renewed, the Borrower shall deliver a copy of the renewal
or replacement policy (or other evidence thereof) to the Administrative

                                      -71-
<PAGE>

Agent and the Collateral Agent, or insurance certificate with respect thereto,
together with evidence satisfactory to the Administrative Agent and Collateral
Agent of the payment of the premium therefor); (ii) the Collateral Agent is
permitted to pay any premium therefor within thirty (30) days after receipt of
any notice stating that such premium has not been paid when due; (iii) all
losses thereunder shall be payable notwithstanding any act or negligence of any
Loan Party or any of its Subsidiaries or its agents or employees which otherwise
might have resulted in a forfeiture of all or a part of such insurance payments;
(iv) to the extent such insurance policy constitutes property insurance, the
Collateral Agent shall be named as an additional insured and as loss payee,
pursuant to a standard non-contributory New York mortgagee endorsement, and such
policy shall be in an amount at least sufficient to prevent coinsurance
liability; provided that (x) the Collateral Agent, as loss payee pursuant to the
foregoing, shall not agree to the adjustment of any claim without the consent of
the Borrower (such consent not to be unreasonably withheld or delayed) and (y)
any Net Proceeds thereof shall be applied as provided in Section 2.05(c)(iv);
and (v) with respect to liability insurance, the Collateral Agent shall be named
as an additional insured. Notwithstanding the inclusion in each insurance policy
of the provision described in clause (ii) of the immediately preceding sentence,
in the event any Loan Party gives the Collateral Agent written notice that it
does not intend to pay any premium relating to any insurance policy when due,
the Collateral Agent shall not exercise its right to pay such premium so long as
such Loan Party delivers to the Collateral Agent a replacement insurance policy
or insurance certificate evidencing that such replacement policy or certificate
provides the same insurance coverage required under this Section 5.04 as the
policy being replaced by such Loan Party with no lapse in such coverage.

                  SECTION 5.05. Books and Records; Visitation Rights. Each Loan
Party will, and will cause each of its respective Subsidiaries to, keep books
and records which accurately reflect its business affairs in all material
respects and material transactions and permit the Administrative Agent or its
representatives, at reasonable times and intervals, to visit all of its offices,
to discuss its financial matters with its officers and independent public
accountant and, upon the reasonable request of the Administrative Agent or a
Lender, to examine (and, at the expense of the Borrower, photocopy extracts
from) any of its books or other corporate or partnership records, in each case
upon reasonable prior notice.

                  SECTION 5.06. Environmental Covenant. Each Loan Party will,
and will cause each of its respective Subsidiaries to:

                  (a) use and operate all of its facilities and Real Property in
         compliance with all Environmental Laws except for such noncompliance
         which, individually or in the aggregate, could not reasonably be
         expected to have a Material Adverse Effect, and keep all Environmental
         Permits in effect and remain in compliance therewith and handle all
         Hazardous Material in compliance with all applicable Environmental
         Laws, except for any noncompliance which could not reasonably be
         expected to have a Material Adverse Effect;

                  (b) promptly notify the Administrative Agent and provide
         copies of all written inquiries, claims, complaints, demands or notices
         from any Person or Governmental Authority relating to the environmental
         condition of its facilities and Real Property or compliance with or
         liability under any Environmental Law which, individually or in the
         aggregate, could reasonably be expected to have a Material Adverse
         Effect, and promptly cure and, if such environmental condition,
         compliance or liability is the subject of an action or proceeding, have
         dismissed with prejudice or contest in good faith and, in all cases,
         account for in accordance with GAAP;

                  (c) in the event of the presence of any Hazardous Material on
         any Real Property which is in violation of any Environmental Law or
         which could reasonably be expected to result in Environmental Liability
         which violation or Environmental Liability, individually or in the
         ag-

                                      -72-
<PAGE>

         gregate, could reasonably be expected to have a Material Adverse
         Effect, each applicable Loan Party and its Subsidiaries, upon discovery
         thereof, shall take all necessary steps to initiate and expeditiously
         complete all response, corrective and other action to mitigate and
         eliminate any such adverse effect in accordance with and to the extent
         required by applicable Environmental Laws, and shall keep the
         Administrative Agent informed of their actions;

                  (d) at the written request of the Administrative Agent or the
         Requisite Lenders, which request shall specify in reasonable detail the
         basis therefor, each Loan Party will provide, at such Loan Party's sole
         cost and expense, an environmental site assessment report concerning
         any Real Property now or hereafter owned or leased by such Loan Party
         or any of its respective Subsidiaries, prepared by an environmental
         consulting firm reasonably acceptable to the Administrative Agent,
         regarding the presence or absence of Hazardous Material and indicating
         the potential cost of any Remedial Action in connection with such
         Hazardous Material on, at, under or emanating from such Real Property
         pursuant to any applicable Environmental Law; provided that such
         request may be made only if (i) there has occurred and is continuing an
         Event of Default or (ii) in the case of any Mortgaged Property the
         Administrative Agent or the Requisite Lenders reasonably believe that
         the Borrower or any such Real Property is not in compliance with
         Environmental Law and such noncompliance, individually or in the
         aggregate could reasonably be expected to have a Material Adverse
         Effect, or that circumstances exist that could reasonably be expected
         to form the basis of an Environmental Claim against such Loan Party or
         to result in Environmental Liability, in each case which, individually
         or in the aggregate, could reasonably be expected to have a Material
         Adverse Effect (in such events as are listed in this subparagraph, the
         environmental site assessment shall focus upon the noncompliance or
         other circumstances as applicable). If any Loan Party fails to provide
         the same within 90 days after such request was made, the Administrative
         Agent may order the same, and such Loan Party shall grant and hereby
         grants to the Administrative Agent and the Requisite Lenders and their
         agents access to such Real Property and specifically grants the
         Administrative Agent and the Requisite Lenders an irrevocable
         non-exclusive license, subject to the rights of tenants, to perform
         such an assessment, all at such Loan Party's sole cost and expense; and

                  (e) provide such information and certifications which the
         Administrative Agent may reasonably request from time to time to
         evidence compliance with this Section 5.06.

                  SECTION 5.07. Information Regarding Collateral. (a) Each Loan
Party will furnish to the Administrative Agent prompt written notice of any
change (i) in such Loan Party's corporate name or in any trade name used to
identify it in the conduct of its business or in the ownership of its
properties, (ii) in the location of any Loan Party's chief executive office, its
principal place of business, any office in which it maintains books or records
relating to Collateral owned by it or any office or facility at which Collateral
owned by it is located (including the establishment of any such new office or
facility), (iii) in any Loan Party's identity or corporate structure, (iv) in
any Loan Party's Federal Taxpayer Identification Number or (v) in any Loan
Party's jurisdiction of organization. Each Loan Party agrees not to effect or
permit any change referred to in the preceding sentence unless all filings have
been made under the UCC or otherwise that are required in order for the
Collateral Agent to continue at all times following such change to have a valid,
legal and perfected security interest in all the Collateral. Each Loan Party
also agrees promptly to notify the Administrative Agent if any material portion
of the Collateral is damaged or destroyed.

                  (b) Each year, at the time of delivery of annual financial
statements with respect to the preceding Fiscal Year pursuant to clause (b) of
Section 5.01, the Borrower shall deliver to the Administrative Agent a
certificate of a Financial Officer and the chief legal officer of the Borrower
(i) setting

                                      -73-
<PAGE>

forth any changes in the information required pursuant to Sections 1(a), 2 (with
respect to any locations where any material portion of the collateral or the
books and records with respect thereto are located), 8, 12, 13, 14, 15, 16, 17
and 18 of the Perfection Certificate since the date of the Perfection
Certificate delivered on the Effective Date or the date of the most recent
certificate delivered pursuant to this Section and (ii) certifying that all UCC
financing statements (including fixture filings, as applicable) or other
appropriate filings, recordings or registrations, including all refilings,
rerecordings and reregistrations, containing a description of the Collateral
have been filed of record in each governmental, municipal or other appropriate
office in each jurisdiction identified pursuant to clause (i) above to the
extent necessary to protect and perfect the security interests under the
Security Documents for a period of not less than 18 months after the date of
such certificate (except as noted therein with respect to any continuation
statements to be filed within such period).

                  SECTION 5.08. Existence; Conduct of Business. Each Loan Party
will, and will cause each of its respective Subsidiaries to, do or cause to be
done all things necessary to preserve, renew and keep in full force and effect
its legal existence and the rights, licenses, permits, privileges, franchises,
patents, copyrights, trademarks and trade names material to the conduct of its
business unless the failure to do so could not reasonably be expected to have a
Material Adverse Effect; provided that the foregoing shall not prohibit any
merger, consolidation, liquidation or dissolution permitted under Section 6.03.

                  SECTION 5.09. Performance of Obligations. Each Loan Party and
its respective Subsidiaries will perform all of their respective obligations
under the terms of each mortgage, indenture, security agreement, other debt
instrument and material contract by which they are bound or to which they are a
party except for such noncompliance as individually or in the aggregate would
not have a Material Adverse Effect.

                  SECTION 5.10. Additional Mortgages. The Loan Parties, as
appropriate, will, provided that the property located at 425B Alta Street,
Gonzales, CA ("425B Alta") has not been sold in an arm's-length transaction for
fair market value by June 1, 2004 (unless such time period is extended in the
reasonable judgment of the Administrative Agent), deliver the following
documents and instruments to the Administrative Agent with respect to each
unsold property by August 1, 2004 (unless such time period is extended in the
reasonable judgment of the Administrative Agent):

                  (a) a duly executed and acknowledged Mortgage, financing
         statements and other instruments meeting the requirements of Section
         4.01(s)(A) hereof;

                  (b) such consents, approvals, amendments, supplements,
         estoppels, tenant subordination agreements or other agreements as
         required by Section 4.01(s)(B);

                  (c) a policy of title insurance meeting the requirements of
         Section 4.01(s)(C);

                  (d) policies or certificates of insurance as required by
         Section 4.01(s)(D);

                  (e) a Survey meeting the requirements of Section 4.01(s)(E);

                  (f) such affidavits, certificates, information (including
         financial data) and instruments of indemnification (including, without
         limitation, a so-called "gap" indemnification) as required by Section
         4.01(s)(F);

                  (g) evidence of payment of all applicable premiums, charges,
         costs, taxes, etc. as required by Section 4.01(s)(G);

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<PAGE>

                  (h) copies of all leases or other agreements, and
         subordination of such, as required by Section 4.01(s)(H);

                  (i) a Real Property Officer's Certificate as required by
         Section 4.01(s)(I); and

                  (j) favorable written opinions of local counsel as required by
         Section 4.01(f).

                  SECTION 5.11. Pledge of Additional Collateral. Within 45 days
after the acquisition of assets of the type that would have constituted
Collateral on the Effective Date pursuant to the Security Documents (the
"Additional Collateral"), each appropriate Loan Party will, and will cause its
respective Subsidiaries (excluding any Inactive Subsidiary) to, take all
necessary action, including the filing of appropriate financing statements under
the provisions of the UCC, applicable domestic or local laws, rules or
regulations in each of the offices where such filing is necessary or
appropriate, or entering into or amending the Guarantee Agreement and the
Security Documents, or in the case of the Equity Interests of a "first tier"
Non-U.S. Subsidiary (excluding any Inactive Subsidiary), entering into a
Non-U.S. Pledge Agreement providing for the relevant Loan Party to have an
enforceable and perfected security interest in 65% of the voting Equity
Interests and 100% of the non-voting Equity Interests in such Subsidiary, to
grant to the Collateral Agent for its benefit and the benefit of the Secured
Parties a perfected first priority Lien in such Collateral pursuant to and to
the full extent required by the Security Documents and this Agreement
(including, without limitation, satisfaction of the conditions set forth in
subsection (r) and (s) of Section 4.01). In the event that any Loan Party or its
respective Domestic Subsidiaries acquire an interest in additional Real Property
having a fair market value in excess of $2.0 million as determined in good faith
by the Borrower or renews any Real Property lease covering Real Property having
a fair market value in excess of $2.0 million as determined in good faith by the
Borrower (whether or not the subject of a leasehold mortgage under the Security
Documents or with respect to the Real Property owned in fee by the Borrower and
located at 2700 Camino Del Sol, Oxnard, California, which is encumbered as of
the Effective Date by a deed of trust in the original principal amount of
$17,000,000 in favor of Wells Fargo Bank, National Association, when and if such
deed of trust is repaid and not refinanced in connection with such repayment),
the Borrower or the appropriate Loan Party or Subsidiary, as the case may be,
and using its commercially reasonable efforts in respect of any such leases,
will take such actions and execute such documents as the Collateral Agent shall
require to confirm the Lien of a Mortgage, if applicable, or to create a new
Mortgage (including, without limitation, satisfaction of the conditions set
forth in subsections (r) and (s) of Section 4.01). All actions taken by the
parties in connection with the pledge of Additional Collateral, including,
without limitation, costs of counsel for the Administrative Agent and the
Collateral Agent, shall be for the account of the Borrower, which shall pay all
sums due on demand. Notwithstanding the foregoing, no Loan Party shall be
required to take any action pursuant to this Section 5.11 or any Security
Document that the Borrower has reasonably determined would either result in
material adverse tax consequences under Section 956 of the Code or would
contravene any applicable law, rule or regulation.

                  SECTION 5.12. Further Assurances. The Loan Parties will, and
will cause each Subsidiary of a Loan Party to, execute any and all further
documents, financing statements, agreements and instruments, and take all such
further actions (including the filing and recording of financing statements,
fixture filings, mortgages, deeds of trust and other documents and the delivery
of appropriate opinions of counsel), which may be required under any applicable
law, or which the Administrative Agent or the Requisite Lenders may reasonably
request, to grant, preserve, protect or perfect the Liens created by the
Security Documents or the validity or priority of any such Lien, all at the
expense of the Loan Parties. The Loan Parties also agree to provide to the
Administrative Agent, from time to time upon request, evidence reasonably
satisfactory to the Administrative Agent as to the perfection and priority of
the Liens created or intended to be created by the Security Documents.

                                      -75-
<PAGE>

                  SECTION 5.13. Use of Proceeds. The Borrower covenants and
agrees that (i) there will be no outstanding Revolving Credit Borrowings on the
Amendment No. 1 Date, or, immediately prior to the Effectiveness of this
Agreement, such Revolving Credit Borrowings shall be reduced to zero and (ii)
all Revolving Credit Borrowings will be used for general corporate purposes.

                  SECTION 5.14. Payment of Taxes. Each Loan Party and its
respective Subsidiaries will pay and discharge all taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits, or
upon any Properties belonging to it, prior to the date on which material
penalties attach thereto, and all lawful claims which, if unpaid, might become a
Lien or charge upon any Properties of such Loan Party or any of its respective
Subsidiaries or cause a failure or forfeiture of title thereto; provided that
neither such Loan Party nor any of its respective Subsidiaries shall be required
to pay any such tax, assessment, charge, levy or claim (i) if the failure to do
so, individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect or (ii) that is being contested in good faith and by
proper proceedings diligently conducted, which proceedings have the effect of
preventing the forfeiture or sale of the Property or asset that may become
subject to such Lien, if it has maintained adequate reserves with respect
thereto in accordance with and to the extent required under GAAP.

                  SECTION 5.15. Equal Security for Loans and Notes. If any Loan
Party shall create or assume any Lien upon any of its property or assets,
whether now owned or hereafter acquired, other than Permitted Liens (unless
prior written consent to the creation or assumption thereof shall have been
obtained from the Administrative Agent and the Requisite Lenders), it shall make
or cause to be made effective provisions whereby the Obligations will be secured
by such Lien equally and ratably with any and all other assets or Property
thereby secured as long as any such assets or Property shall be secured;
provided that this covenant shall not be construed as consent by the
Administrative Agent and the Requisite Lenders to any violation by any Loan
Party of the provisions of Section 6.02.

                  SECTION 5.16. Guarantees. In the event that any Domestic
Subsidiary (other than an Inactive Subsidiary) of the Borrower existing on the
Effective Date has not previously executed the Guarantee Agreement or in the
event that any Person becomes a Domestic Subsidiary (other than an Inactive
Subsidiary) of the Borrower after the Effective Date, the Borrower will promptly
notify the Administrative Agent of that fact and cause such Subsidiary to
execute and deliver to the Administrative Agent a counterpart of the Guarantee
Agreement and deliver to the Collateral Agent a counterpart of the Security
Agreement and the Pledge Agreement and to take all such further actions and
execute all such further documents and instruments (including actions, documents
and certificates comparable to those described in Section 4.01(r) as may be
necessary or, in the reasonable opinion of the Administrative Agent, desirable
to create in favor of the Collateral Agent, for the benefit itself and of the
Secured Parties, a valid and perfected first priority Lien on all of the
Property and assets of such Subsidiary described in the applicable forms of the
Security Documents).

                  SECTION 5.17. Subordination of Intercompany Loans. Each Loan
Party covenants and agrees that (A) any existing and future debt obligation of
the Parent Guarantor, the Borrower or any Subsidiary Loan Party to any Non-U.S.
Subsidiary shall be subordinated to the Loans to at least the same extent as the
Subordinated Notes (for the avoidance of doubt, prepayments are not prohibited
unless and until and for so long as a Default exists under Section 7.01(a) or
otherwise prohibited by such subordination provisions) and (B) no Indebtedness
of any Non-U.S. Subsidiary to any Loan Party shall be subordinated to any other
Indebtedness of such Subsidiary.

                  SECTION 5.18. Certain Post-Closing Matters. (a) The Borrower
shall deliver to the Administrative Agent favorable written opinions of local
counsel in each of the jurisdictions referred to in Schedule 5.18(a) addressing
such matters described in Section 4.01(f)(i) in each case within the time pe-

                                      -76-
<PAGE>

riod set forth in Schedule 5.18(a), unless such date is extended by the
Administrative Agent in its reasonable judgment.

                  (b) [Reserved];

                  (c) [Reserved];

                  (d) [Reserved];

                  (e) [Reserved];

                  (f) [Reserved];

                  (g) From and after the Effective Date, the Borrower shall use
its commercially reasonable efforts to negotiate with the financial institutions
where it maintains Deposit Accounts (as defined in the Security Agreement)
Control Agreements (as defined in the Security Agreement) required by the terms
of the Security Agreement, the terms of such Control Agreements to be reasonably
satisfactory to the Administrative Agent, and shall in any event, promptly upon
request by the Administrative Agent, execute Control Agreements substantially in
form of the draft of the Control Agreement distributed by Wells Fargo Bank on
the Effective Date.

                                   ARTICLE VI

                               NEGATIVE COVENANTS

                  Until the Commitments have expired or terminated and the
principal of and interest on each Loan and all Fees and other amounts payable
hereunder or under any other Loan Document have been paid in full and all
Letters of Credit have expired or terminated and all LC Disbursements shall have
been reimbursed, each of the Loan Parties and their respective Subsidiaries
agree with the Lenders that:

                  SECTION 6.01. Indebtedness; Certain Equity Securities. (a) The
Loan Parties will not, and will not permit any of their Subsidiaries to,
directly or indirectly, create, incur, assume or permit to exist (including by
way of Guarantee) any Indebtedness or enter into any Hedging Agreement, except:

                  (i) Indebtedness incurred and outstanding under the Loan
         Documents;

                  (ii) (A) Indebtedness of the Loan Parties incurred and
         outstanding under the Subordinated Notes in an aggregate principal
         amount not to exceed $340.0 million so long as the at least $100.0
         million of the Net Proceeds of the New Subordinated Notes is applied on
         the date of receipt thereof to the prepayment of the Term B Loans
         pursuant to Section 2.05 such that the aggregate amount of Term B
         Commitments is no greater than $90.0 million on the Effective Date and
         (B) any Permitted Refinancing thereof; provided that in the case of
         clause (B) only, (x) no Default or Event of Default shall have occurred
         or be continuing or would result therefrom and (y) after giving effect
         to the incurrence of such Indebtedness (and any other Indebtedness
         incurred since the last day of the immediately preceding Test Period)
         on a pro forma basis as if it were incurred on the first day of the
         immediately preceding Test Period, the Borrower would be in compliance
         with the Financial Covenants;

                  (iii) Indebtedness to Remain Outstanding and any Permitted
         Refinancing thereof;

                                      -77-
<PAGE>

                  (iv) (x) Indebtedness of any Loan Party (other than the Parent
         Guarantor) to any other Loan Party (other than the Parent Guarantor),
         or (y) Indebtedness of any Non-U.S. Subsidiary to any Non-U.S.
         Subsidiary;

                  (v) Guarantees by the Borrower of Indebtedness of any
         Subsidiary Loan Party and by any Subsidiary Loan Party of Indebtedness
         of the Borrower or any other Subsidiary Loan Party, in each case, to
         the extent such Indebtedness was permitted to be incurred hereunder,
         and if such Indebtedness is subordinated to the Obligations under the
         Loan Documents, such Guarantee is as subordinated in right of payment
         to the Obligations;

                  (vi) Indebtedness arising from the honoring by a bank or other
         financial institution of a check, draft or similar instrument drawn
         against insufficient funds in the ordinary course of business; provided
         that such Indebtedness is extinguished within five Business Days of its
         incurrence;

                  (vii) Indebtedness permitted by Sections 4.09(b) and (c)(11)
         of the Subordinated Notes Indenture (without giving effect to Section
         4.09(a) thereof); provided that (x) no Default or Event of Default
         shall have occurred or be continuing or would result therefrom and (y)
         after giving effect to the incurrence of such Indebtedness (and any
         other Indebtedness incurred since the last day of the immediately
         preceding Test Period) on a pro forma basis as if it were incurred on
         the first day of the immediately preceding Test Period, the Borrower
         would be in compliance with the Financial Covenants; provided, further,
         however, for purposes of this Section 6.01(a)(vii), references in to
         "non-Guarantor Restricted Subsidiaries" in Section 4.09(b) of the
         Subordinated Notes Indenture shall be deemed references to Non-U.S.
         Subsidiaries;

                  (viii) Indebtedness of (A) any Non-U.S. Subsidiary to any Loan
         Party; provided that any such Indebtedness shall be evidenced by a
         Qualified Non-U.S. Intercompany Note and (B) any Loan Party to any
         Non-U.S. Subsidiary which must be subordinated to the Obligations as
         set forth in Section 5.17;

                  (ix) (x) Indebtedness of the Borrower or any Subsidiary (other
         than any IP Group Member) incurred to finance the acquisition,
         construction or improvement of any fixed or capital assets, including
         Capital Lease Obligations and any Indebtedness assumed in connection
         with the acquisition of any such assets or secured by a Lien on any
         such assets prior to the acquisition thereof, and Permitted Refinancing
         thereof; provided that (A) such Indebtedness is incurred prior to or
         within 180 days after such acquisition or the completion of such
         construction or improvement and (B) the aggregate principal amount of
         Indebtedness permitted by this clause (ix) shall not exceed $10.0
         million at any time outstanding; and (y) any Guarantee of the Parent
         Guarantor of any such Indebtedness;

                  (x) Hedging Agreements incurred by any Person (other than any
         IP Group Member) entered into in the ordinary course of business and
         not for speculative purposes;

                  (xi) Indebtedness incurred by any Person (other than any IP
         Group Member) owed to (including obligations in respect of letters of
         credit for the benefit of) any Person providing worker's compensation,
         health, disability or other employee benefits or property, casualty or
         liability insurance to the Borrower or any Subsidiary, pursuant to
         reimbursement or indemnification obligations to such Person;

                  (xii) Indebtedness of the Borrower or any of its Subsidiaries
         (other than any IP Group Member) in respect of performance bonds, bid
         bonds, appeal bonds, surety bonds and similar ob-

                                      -78-
<PAGE>

         ligations and trade-related letters of credit, in each case provided in
         the ordinary course of business, including those incurred to secure
         health, safety and environmental obligations in the ordinary course of
         business;

                  (xiii) Indebtedness incurred by any Person (other than any IP
         Group Member) arising from agreements of the Borrower or any Subsidiary
         of the Borrower (other than the IP Subsidiary) providing for
         indemnification, adjustment of purchase price or similar obligations,
         in each case, incurred or assumed in connection with the acquisition or
         disposition of any business, assets or a Subsidiary, other than
         Guarantees of Indebtedness incurred by any Person acquiring all or any
         portion of such business, assets or a Subsidiary for the purpose of
         financing such acquisition;

                  (xiv) obligations incurred by any Person (other than any IP
         Group Member) in respect of performance and surety bonds and completion
         guarantees provided by the Borrower or any Subsidiary of the Borrower
         (other than any IP Group Member) in the ordinary course of business;

                  (xv) Indebtedness incurred by any Person (other than any IP
         Group Member) existing at the time such Person becomes a Subsidiary of
         the Borrower in connection with an acquisition permitted by Section
         6.04, but only if such Indebtedness was not created or incurred in
         contemplation of such Person becoming a Subsidiary and any Permitted
         Refinancing thereof; provided that (x) no Default or Event of Default
         shall have occurred or be continuing or would result therefrom and (y)
         after giving effect to the incurrence of such Indebtedness (and any
         other Indebtedness incurred since the last day of the immediately
         preceding Test Period) on a pro forma basis as if it was incurred on
         the first day of the immediately preceding Test Period, the Loan
         Parties would be in compliance with the Financial Covenants;

                  (xvi) [Reserved];

                  (xvii) so long as no Default then exists or would arise
         therefrom, Indebtedness of B.V. Holdco to a Loan Party representing the
         purchase price for the Equity Interests of Non-U.S. Subsidiaries paid
         by B.V. Holdco to such Loan Party pursuant to the Foreign Subsidiary
         Restructuring Documents not to exceed $100.0 million, reduced by the
         amount of any repayment or prepayment of principal thereof, provided
         that such Indebtedness is evidenced by Qualified Non-U.S. Intercompany
         Notes;

                  (xviii) so long as no Default then exists or would arise
         therefrom, Indebtedness of the IP Subsidiary to the Borrower
         representing the purchase price for any Intellectual Property
         transferred to the IP Subsidiary by the Loan Parties so long as the
         document or instrument evidencing the same is pledged pursuant to the
         Security Documents, provided that such Indebtedness is evidenced by
         Qualified Non-U.S. Intercompany Notes;

                  (xix) Indebtedness not for money borrowed of SVS Iberica to
         the Borrower in the original principal amount up to (euro)5.5 million
         (or the Dollar equivalent of all or a portion thereof) issued pursuant
         to the Iberica Transaction, provided that such Indebtedness is
         evidenced by a Qualified Non-U.S. Intercompany Note; and

                  (xx) any Permitted Unsecured Debt and any Permitted
         Refinancing thereof; provided, however, that the Net Proceeds therefrom
         (but not any Permitted Refinancing of such Permitted Unsecured Debt)
         are applied as required by Section 2.05(c)(ii); provided that (x) no
         Default or Event of Default shall have occurred or be continuing or
         would result therefrom and (y) after giving effect to the incurrence of
         such Indebtedness (and any other Indebtedness incurred since the last
         day of the immediately preceding Test Period) on a pro forma basis as
         if it were incurred on

                                      -79-
<PAGE>

         the first day of the immediately preceding Test Period, the Borrower
         would be in compliance with the Financial Covenants.

                  (b) The Loan Parties will not, nor will they permit any of
their Subsidiaries to, directly or indirectly, issue (including by exchange or
conversion) any Preferred Stock or other preferred Equity Interest (other than
the New Preferred Stock pursuant to the New Preferred Stock Documents as in
effect on the Closing Date or any other Preferred Stock with identical terms or
more favorable terms to the Loan Parties that is issued pursuant to clause (ii)
of the definition of "Excluded Equity Issuance") which (i) matures or is
mandatorily redeemable pursuant to a sinking fund obligation or otherwise or
requires the payment of any cash dividends, in each case, before 180 days after
the Term Loan B Maturity Date, (ii) is or may become redeemable or
repurchaseable at the option of the holder thereof, in whole or in part, or
(iii) is convertible or exchangeable at the option of the holder thereof for
Indebtedness.

                  SECTION 6.02. Liens. The Loan Parties will not, and will not
permit any of their Subsidiaries to, directly or indirectly, create, incur,
assume or permit to exist any Lien on any Property or asset now owned or
hereafter acquired by them, or assign or sell any income or revenues (including
accounts receivable) or rights in respect of any thereof, (a) except the
following for any Person other than the IP Subsidiary (herein collectively
referred to as "Permitted Liens"):

                  (i) Liens in favor of the Collateral Agent under the Security
         Documents;

                  (ii) Liens on assets acquired after the Effective Date
         existing at the time of acquisition thereof by the Borrower or any
         Subsidiary; provided that such Liens were not incurred in connection
         with, or in contemplation of, such acquisition and do not extend to any
         assets of the Borrower or any Subsidiary other than the specific assets
         so acquired;

                  (iii) Liens to secure the performance of statutory
         obligations, surety or appeal bonds or performance bonds, landlords',
         carriers', warehousemen's, mechanics', suppliers', materialmen's,
         attorney's or other like liens, in any case incurred in the ordinary
         course of business and with respect to amounts not yet delinquent or
         being contested in good faith by appropriate proceedings promptly
         instituted and diligently conducted; provided that a reserve or other
         appropriate provision, if any, as is required by GAAP shall have been
         made therefor;

                  (iv) Liens existing on the Effective Date and identified on
         Schedule 3.22(d) to the extent permitted by the applicable Security
         Documents;

                  (v) Liens for taxes, assessments or governmental charges or
         claims or other like statutory Liens, in any case incurred in the
         ordinary course of business, that do not secure Indebtedness for
         borrowed money and (A) that are not yet delinquent or (B) that are
         being contested in good faith by appropriate proceedings promptly
         instituted and diligently concluded; provided that any reserve or other
         appropriate provision as shall be required in conformity with GAAP
         shall have been made therefor;

                  (vi) Liens to secure Indebtedness (including Capital Lease
         Obligations) of the type described in Section 6.01(a)(ix) covering only
         the assets acquired or improved with such Indebtedness;

                  (vii) Liens on the assets of a Non-U.S. Subsidiary that are
         not otherwise Collateral which Liens secure such Non-U.S. Subsidiary's
         obligations under Indebtedness incurred pursuant to Section
         6.01(a)(vii);

                                      -80-
<PAGE>

                  (viii) Liens securing Indebtedness incurred to refinance
         Indebtedness secured by the Liens of the type described in clauses
         (ii), (iv) and (vii) of this Section 6.02; provided that any such Lien
         shall not extend to or cover any assets not securing the Indebtedness
         so refinanced;

                  (ix) (A) Liens in the form of zoning restrictions, easements,
         licenses, reservations, covenants, conditions or other restrictions on
         the use of real property or other minor irregularities in title
         (including leasehold title) that do not (1) secure Indebtedness or (2)
         individually or in the aggregate materially impair the value or
         marketability of any Mortgaged Property affected thereby or the
         occupation, use and enjoyment in the ordinary course of business of the
         Borrower and any Subsidiary at such Mortgaged Property and (B) with
         respect to leasehold interests in real property, mortgages,
         obligations, liens and other encumbrances incurred, created, assumed or
         permitted to exist and arising by, through or under a landlord or owner
         of such leased property encumbering the landlord's or owner's interest
         in such leased property;

                  (x) Liens in the form of pledges or deposits securing bids,
         tenders, contracts (other than contracts for the payment of money) or
         leases to which the Borrower or any Subsidiary is a party, in each
         case, made in the ordinary course of business for amounts (A) not yet
         due and payable or (B) being contested in good faith by appropriate
         proceedings promptly instituted and diligently conducted; provided that
         a reserve or other appropriate provision, if any, as is required by
         GAAP shall have been made therefor;

                  (xi) Liens resulting from operation of law with respect to any
         judgments, awards or orders to the extent that such judgments, awards
         or orders do not cause or constitute a Default under this Agreement;

                  (xii) Liens in the form of licenses, leases or subleases
         granted or created by the Borrower or any Subsidiary, which licenses,
         leases or subleases do not interfere, individually or in the aggregate,
         in any material respect with the business of the Borrower and its
         Subsidiaries taken as a whole or individually or in the aggregate
         materially impair the use (for its intended purpose) or the value of
         any Mortgaged Property, provided that (x) to the extent such licenses,
         leases or subleases relate to Mortgaged Property in existence as of the
         Effective Date, the Borrower or such Subsidiary shall use its
         commercially reasonable efforts to as soon as practicable cause such
         leases or subleases to be subordinated to the Lien granted and
         evidenced by the Security Documents in accordance with the provisions
         thereof and (y) to the extent entered into after the Effective Date,
         such leases or subleases shall be subordinate to the Lien granted and
         evidenced by the Security Documents in accordance with the provisions
         thereof; provided, further, that any such Lien shall not extend to or
         cover any assets of the Parent Guarantor or any Subsidiary that is not
         the subject of any such license, lease or sublease;

                  (xiii) Liens on fixtures or personal property held by or
         granted to landlords pursuant to leases to the extent that such Liens
         are not yet due and payable; provided (i) with respect to any such
         Liens on any material portion of the Collateral in existence on the
         Effective Date, the Borrower or any applicable Subsidiary has used its
         commercially reasonable efforts to obtain a landlord lien waiver
         reasonably satisfactory to the Collateral Agent and (ii) with respect
         to any leases entered into after the Effective Date, the Borrower or
         any applicable Subsidiary shall use its commercially reasonable efforts
         to (x) enter into a lease that does not grant a Lien on fixtures or
         personal property in favor of the landlord thereunder or (y) obtain a
         landlord lien waiver reasonably satisfactory to the Collateral Agent;

                                      -81-
<PAGE>

                  (xiv) Liens securing Indebtedness permitted by Section
         6.01(a)(xv); provided that such Liens existed prior to such Person
         becoming a Subsidiary, were not created in anticipation thereof and
         attach only to specific assets of such Person that is the subject of
         the acquisition;

                  (xv) any other Lien on Property or assets securing
         Indebtedness of the Borrower or any of its Subsidiaries permitted to be
         incurred under this Agreement in an aggregate amount not to exceed $2.0
         million at any time outstanding;

                  (xvi) sales, transfers or other dispositions of Property or
         assets to the extent permitted by Section 6.05; and

                  (xvii) Liens to secure Indebtedness of the type described in
         Section 6.01(a)(x) so long as the secured party thereunder at the time
         of entering into such agreement is a Lender or an affiliate of a
         Lender;

provided, however, that no Liens shall be permitted to exist, directly or
indirectly, on any Securities Collateral (as defined in the Pledge Agreement)
other than Liens in favor of the Collateral Agent.

                  SECTION 6.03. Fundamental Changes; Line of Business. (a) The
Loan Parties will not, and will not permit any of their Subsidiaries to,
directly or indirectly, merge into or consolidate with any other Person, or
permit any other Person to merge into or consolidate with them, or liquidate or
dissolve, except that, if at the time thereof and immediately after giving
effect thereto no Default or Event of Default shall have occurred and be
continuing, (i) any Subsidiary may merge into the Borrower in a transaction in
which the Borrower is the surviving corporation, (ii) any Subsidiary may merge
with or into any wholly owned Subsidiary in a transaction in which the surviving
entity is a wholly owned Subsidiary and (if any party to such merger is a
Subsidiary Loan Party) is a Subsidiary Loan Party, (iii) Permitted Acquisitions
may be consummated so long as the surviving Person is the Borrower or a
Subsidiary Loan Party, (iv) sales, transfers, leases or dispositions permitted
by Section 6.05 may be effected by way of merger or consolidation of any
Subsidiary with any other Person (whether or not such Subsidiary is the
surviving entity) and (v) PII may be dissolved pursuant to the terms of the
Foreign Subsidiary Restructuring Documents, provided that in connection with the
foregoing, the appropriate Loan Parties shall take all actions necessary or
reasonably requested by the Collateral Agent to maintain the perfection of or
perfect, as the case may be, protect and preserve the Liens on the Collateral
granted to the Collateral Agent pursuant to the Security Documents and otherwise
comply with the provisions of Sections 5.11 and 5.12, in each case, on the terms
set forth therein and to the extent applicable.

                  (b) Notwithstanding the foregoing, any Subsidiary Loan Party
may dispose of any or all of its assets (upon voluntary liquidation or
otherwise) to the Borrower or any other Subsidiary Loan Party (provided that in
connection with the foregoing, the appropriate Loan Parties shall take all
actions necessary or reasonably requested by the Collateral Agent to maintain
the perfection of or perfect, as the case may be, protect and preserve the Liens
on the Collateral granted to the Collateral Agent pursuant to the Security
Documents and otherwise comply with the provisions of Sections 5.11 and 5.12, in
each case, on the terms set forth therein and to the extent applicable), and any
Subsidiary which is not a Subsidiary Loan Party may dispose of assets to any
other Subsidiary which is not a Subsidiary Loan Party.

                  (c) The Borrower will not, and will not permit any of its
Subsidiaries to, directly or indirectly, engage in any business other than
businesses of the type conducted by the Borrower and the Subsidiary Loan Parties
on the Effective Date and businesses reasonably related thereto.

                  SECTION 6.04. Investments, Loans, Advances, Guarantees and
Acquisitions. The Loan Parties will not, and will not permit any of their
Subsidiaries to, directly or indirectly, purchase,

                                      -82-
<PAGE>

hold or acquire (including pursuant to any merger with any Person that was not a
wholly owned Subsidiary prior to such merger) any Equity Interests in or
evidences of Indebtedness or other securities (including any option, warrant or
other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, or Guarantee any obligations of, any other Person, or make
up-front payments or provide other credit support for any Person or purchase or
otherwise acquire (in one transaction or a series of transactions) any assets of
any other Person constituting a business unit (excluding for avoidance of doubt
any Capital Expenditure) (each of the foregoing, an "Investment" and
collectively, "Investments"), except:

                  (i) Permitted Investments;

                  (ii) Investments existing on the Effective Date (or in respect
         of which a binding commitment to make such investment exists on the
         Effective Date) and set forth in on Schedule 6.04;

                  (iii) Investments (A) by the Parent Guarantor or any of its
         Subsidiaries in any Loan Party (other than the Parent Guarantor);
         provided that any such Investment held by a Loan Party shall, subject
         to the last sentence of Section 5.11, be pledged pursuant to a Pledge
         Agreement and (B) by any Non-U.S. Subsidiary (other than IP Subsidiary)
         in any Non-U.S. Subsidiary;

                  (iv) Investments made after the Effective Date by the Borrower
         or any of its Subsidiaries in Equity Interests in Non-U.S. Subsidiaries
         in an aggregate amount for all such Persons not to exceed $5.0 million
         at any time;

                  (v) Investments constituting Indebtedness permitted by
         Sections 6.01(a)(iv), (viii), (x), (xvii) and (xix) (and, in the case
         of Indebtedness permitted by Sections 6.01(a)(xvii) and (xix), Equity
         Interests of the issuer of such Indebtedness into which such
         Indebtedness may have been converted by the holder thereof);

                  (vi) Guarantees constituting Indebtedness permitted by
         Sections 6.01(a)(v) and (ix)(y);

                  (vii) Investments received in connection with the bankruptcy
         or reorganization of, or settlement of delinquent accounts and disputes
         with, customers and suppliers, in each case in the ordinary course of
         business;

                  (viii) loans and advances to employees of the Parent Guarantor
         or its Subsidiaries in the ordinary course of business (including,
         without limitation, for travel, entertainment and relocation expenses)
         not to exceed (other than with respect to loans for home purchases)
         $1.0 million in the aggregate at any time outstanding; provided that
         (x) to the extent such loans or advances are evidenced by promissory
         notes, such promissory notes shall be endorsed in blank and delivered
         to the Collateral Agent pursuant to the Pledge Agreement and (y) the
         Borrower shall and shall cause its Subsidiaries to take all actions and
         execute all documents reasonably requested by the Collateral Agent to
         confirm the Collateral Agent's security interest in such loans and
         advances and/or promissory notes pursuant to the applicable Security
         Documents;

                  (ix) Investments constituting Permitted Acquisitions;

                  (x) sales, transfers or other dispositions of Property or
         assets to the extent permitted by Section 6.05;

                                      -83-
<PAGE>

                  (xi) other Investments of the Borrower or any Subsidiary not
         in excess of $5.0 million outstanding at any time; and

                  (xii) so long as no Default exists or would arise therefrom,
         transfers of Equity Interests of Non-U.S. Subsidiaries to B.V. Holdco
         to the extent set forth in the Foreign Subsidiary Restructuring
         Documents.

                  SECTION 6.05. Asset Sales. The Loan Parties will not, and will
not permit any of their Subsidiaries to, directly or indirectly, sell, transfer,
lease or otherwise dispose of any asset, including any Equity Interest owned by
them, nor will the Borrower permit any of its Subsidiaries to, directly or
indirectly, issue any additional Equity Interest in such Subsidiary, except:

                  (i) sales of inventory or used, surplus, obsolete, outdated,
         inefficient or worn out equipment and other property in the ordinary
         course of business;

                  (ii) sales, transfers and dispositions to the Borrower or any
         other Subsidiary Loan Party; provided that in connection with the
         foregoing, the appropriate Loan Parties shall take all actions
         necessary or reasonably requested by the Collateral Agent to maintain
         the perfection of or perfect, as the case may be, protect and preserve
         the Liens on the Collateral granted to the Collateral Agent pursuant to
         the Security Documents and otherwise comply with the provisions of
         Sections 5.11 and 5.12, in each case, on the terms set forth therein
         and to the extent applicable;

                  (iii) the lease or sublease as lessor or sublessor of Real
         Property in the ordinary course of business and not constituting a sale
         and leaseback transaction;

                  (iv) sales of Permitted Investments on ordinary business
         terms;

                  (v) Liens permitted by Section 6.02 and Investments permitted
         under Section 6.04;

                  (vi) any sale, transfer or disposition of assets specified in
         Schedule 6.05(vi) so long as the Net Proceeds are applied as required
         by Section 2.05(c)(iii);

                  (vii) sales, transfers and dispositions of assets (other than
         less than 100% of the Equity Interests of a Subsidiary owned by the
         Borrower or any Subsidiary) not otherwise permitted under this Section;
         provided that the aggregate fair market value of all assets sold,
         transferred or otherwise disposed of in reliance upon this clause (vii)
         shall not, in the aggregate, exceed $12.5 million during any Fiscal
         Year and $30.0 million in the aggregate and the Net Proceeds thereof
         are applied as required by Section 2.05(c)(iii);

                  (viii) [Reserved];

                  (ix) so long as no Default then exists or would arise
         therefrom, the transfer to the IP Subsidiary of Intellectual Property
         of any Loan Party, so long as at all times that any such Intellectual
         Property is owned by the IP Subsidiary, (A) the aggregate fair market
         value of all such Intellectual Property (valued for each item of
         Intellectual Property at the date of transfer thereof) transferred by
         the Loan Parties does not at any time exceed $25.0 million, and (B) an
         agreement is executed and delivered by the IP Subsidiary providing for
         the payment over time of the fair market value of such Intellectual
         Property and such agreement is pledged to the Collateral Agent pursuant
         to the Security Documents.

                                      -84-
<PAGE>

                  (x) any sale of the Facility encumbered by the Oxnard Mortgage
         in connection with the sale-leaseback thereof so long as the Net
         Proceeds thereof are applied as required by Section 2.05(c)(iii); and

                  (xi) sales of the Real Property set forth in Schedule
         6.05(xi), so long as the Net Proceeds are applied as required by
         Section 2.05(c) (iii);

provided that all sales, transfers, leases and other dispositions permitted
hereby shall be made for fair value and (x) for at least 50% cash consideration
in the case of sales, transfers, leases and other dispositions permitted by
clause (i) or (vi), (y) for 85% cash consideration in the case of sales,
transfers, leases and other dispositions permitted by clauses (iv) and (vii)
(including for purposes of this calculation as cash consideration the amount of
(A) any liabilities assumed from a Loan Party or any Subsidiary by a purchaser
or other transferee and (B) the fair market value of receivables retained by a
Loan Party or any Subsidiary) and (z) for 100% cash consideration in the case of
sales, transfers, leases and other dispositions permitted by clause (xi).

                  SECTION 6.06. Sale and Leaseback Transactions. The Loan
Parties will not, and will not permit any of their Subsidiaries to, directly or
indirectly, enter into any arrangement, directly or indirectly, whereby they
shall sell or transfer any Property, real or personal, used or useful in their
business, whether now owned or hereafter acquired, and thereafter rent or lease
such Property or other Property that they intend to use for substantially the
same purpose or purposes as the Property sold or transferred unless (i) the sale
of such Property is permitted by Section 6.05 and (ii) any Lien arising in
connection with the use of such Property by any Loan Party or a Subsidiary is
permitted by Section 6.02.

                  SECTION 6.07. Restricted Payments. The Loan Parties (other
than the Parent Guarantor and Unrestricted Subsidiaries) will not, and will not
permit any Subsidiary (other than Unrestricted Subsidiaries) to, directly or
indirectly, declare or make, or agree to pay or make, directly or indirectly,
any Restricted Payment, or incur any obligation (contingent or otherwise) to do
so, except so long as no Default of Event of Default then exists or would arise
therefrom, the Loan Parties may make Restricted Payments to the extent permitted
at such time under Section 4.10 of the Subordinated Notes Indenture as in effect
on the Amendment No. 1 Date (and whether or not then in effect), provided,
however, that (A) for purposes of determining compliance with such Section 4.10
of the Subordinated Notes Indenture, (x) "Subordinated Indebtedness" (or
references to "subordinated Indebtedness") shall be construed to mean all
Indebtedness of the Parent Guarantor and its Subsidiaries which is not Senior
Debt and (y) clause (A) of Section 4.10 shall be disregarded; (B) the Loan
Parties may not make Restricted Payments in reliance on Section 4.10(b)(5) or
(6) of the Subordinated Notes Indenture as in effect on the Amendment No. 1 Date
(or any provision analogous thereto); and (C) before making a Restricted Payment
in reliance on the exceptions provided in Section 4.10(a) of the Subordinated
Notes Indenture, the Borrower shall deliver to the Administrative Agent from an
Authorized Officer an officer's certificate setting forth the calculations
permitting such Restricted Payment pursuant to Section 10.04(a)(C) of the
Subordinated Notes Indenture.

                  SECTION 6.08. Transactions with Affiliates. The Loan Parties
will not, and will not permit any of their Subsidiaries to, directly or
indirectly, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise
engage in any other transactions with, any of their Affiliates, unless such
transactions are in the ordinary course of the Borrower's business and are at
prices and on terms and conditions not less favorable to the Loan Party or such
Subsidiary than could be obtained on an arm's-length basis from unrelated third
parties, except:

                  (i) transactions between or among the Borrower and its
         Subsidiaries;

                  (ii) any Restricted Payment permitted by Section 6.07;

                                      -85-
<PAGE>

                  (iii) fees and compensation, benefits and incentive
         arrangements paid or provided to, and any indemnity provided on behalf
         of, officers, directors or employees of the Borrower or any Subsidiary
         as determined in good faith by the board of directors of the Borrower;

                  (iv) loans and advances to employees of the Parent Guarantor
         or any Subsidiary Loan Party permitted by Section 6.04(viii);

                  (v) the Recapitalization Transactions, including the payment
         of any transaction, management or other fees payable to any Person
         under the Management Fee Letter or otherwise in connection therewith so
         long as no Default or Event of Default has occurred and is continuing;
         and

                  (vi) the issuance or sale of any Equity Interests of the
         Parent Guarantor.

                  SECTION 6.09. Restrictive Agreements. The Loan Parties will
not, and will not permit any Subsidiary to, directly or indirectly, enter into,
incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon (a) the ability of any Loan Party or any
Subsidiary to create, incur or permit to exist any Lien upon any of its Property
or assets, or (b) the ability of any Subsidiary to pay dividends or other
distributions with respect to any of its Equity Interests or to make or repay
loans or advances to the Borrower or any other Subsidiary or to Guarantee
Indebtedness of the Borrower or any other Subsidiary or to transfer property to
the Borrower or any of its Subsidiaries; provided that the foregoing shall not
apply to:

                  (i) conditions imposed by law, regulation, court order, rule
         or decree or by any Loan Document;

                  (ii) clause (a) shall not apply to assets encumbered by
         Permitted Liens as long as such restriction applies only to the asset
         encumbered by such Permitted Lien;

                  (iii) clause (a) shall not apply to restrictions and
         conditions existing on the Effective Date not otherwise excepted from
         this Section 6.09 identified on Schedule 6.09 (but shall not apply to
         any amendment or modification expanding the scope of any such
         restriction or condition);

                  (iv) restrictions contained in the Subordinated Notes
         Documents, any other Subordinated Debt Document or any Permitted
         Unsecured Debt Documents so long as not materially more restrictive in
         the aggregate than the Subordinated Notes Documents;

                  (v) any agreement in effect at the time any Person becomes a
         Subsidiary of the Borrower; provided that such agreement was not
         entered into in contemplation of such Person becoming a Subsidiary;

                  (vi) customary restrictions and conditions contained in
         agreements relating to the sale of a Subsidiary (or the assets of a
         Subsidiary) pending such sale, provided such restrictions and
         conditions apply only to the Subsidiary that is to be sold (or whose
         assets are to be sold) and such sale is permitted hereunder;

                  (vii) clause (a) shall not apply to Indebtedness of Non-U.S.
         Subsidiaries permitted by Section 6.01(a)(vii) so long as such
         Indebtedness does not restrict any Lien securing any of the Loan
         Documents; and

                                      -86-
<PAGE>

                  (viii) clause (a) shall not apply to customary provisions in
         leases and service contracts in the ordinary course of business between
         the Borrower and its customers and other contracts restricting the
         assignment thereof.

                  SECTION 6.10. Amendments or Waivers of Certain Documents;
Prepayments of Certain Indebtedness. (a) The Loan Parties will not, and will not
permit any Subsidiary to, directly or indirectly, amend or otherwise change (or
waive) (i) any subordination provision (or any definition related to any
subordination provision) of any Subordinated Debt Document or, (ii) the terms of
any Organic Document, any Recapitalization Document, any New Preferred Stock
Documents, any document governing any Indebtedness outstanding as of the
Amendment No. 1 Date, any Subordinated Debt Document or the Management Fee
Letter, in each case, in a manner materially adverse to the Lenders or which
would increase the amounts payable by the Loan Parties thereunder or shorten the
timing of such amounts payable.

                  (b) The Loan Parties will not, and will not permit any
Subsidiary to, make (or give any notice or offer in respect of) any voluntary or
optional payment or mandatory prepayment or redemption or acquisition for value
of (including, without limitation, by way of depositing with any trustee with
respect thereto money or securities before such Indebtedness is due for the
purpose of paying such Indebtedness when due) or exchange of principal of any
Subordinated Debt or any Indebtedness of the type referred to in Section
6.01(a)(iii), in each case other than pursuant to any customary registered
exchange offer therefor after a private placement thereof, any Permitted
Refinancing, any exchange of Equity Interests of the Parent Guarantor for any
such Indebtedness or any Restricted Payment permitted by Section 6.07.

                  SECTION 6.11. No Other "Designated Senior Indebtedness". The
Loan Parties will not, and will not permit any Subsidiary to, directly or
indirectly, designate, or permit the designation of, any Indebtedness (other
than under this Agreement or the other Loan Documents) as "Designated Senior
Indebtedness" (or any equivalent term) under any Subordinated Debt Documents.

                  SECTION 6.12. Senior Leverage Ratio. The Borrower will not
permit the Senior Leverage Ratio at the last day of any Test Period to exceed
2.50:1.00.

                  SECTION 6.13. Total Leverage Ratio. The Borrower will not
permit the Total Leverage Ratio at any date set forth below to exceed the ratio
set forth opposite such date:

<TABLE>
<CAPTION>
             Date                                               Ratio
             ----                                               -----
<S>                                                           <C>
December 31, 2003                                             5.25:1.00
March 31, 2004                                                5.25:1.00
June 30, 2004                                                 5.25:1.00
September 30, 2004
and at the end of each Fiscal Quarter thereafter              5.00:1.00
</TABLE>

                  SECTION 6.14. Capital Expenditures. The Borrower will not, and
will not permit any of its Subsidiaries to, make or commit to make any Capital
Expenditures, except that the Borrower and its Subsidiaries may make or commit
to make (a) Capital Expenditures with the proceeds of (i) any Equity Issuance
(including any Excluded Equity Issuance) in compliance with the requirements of
Section 2.05(c)(i), and (ii) any sale, lease, transfer or other disposition of
assets in compliance with the requirements of Sections 2.05(c)(iii) and
6.05(vii), (b) the Capital Expenditures to be effected as part of the

                                      -87-
<PAGE>

Recapitalization Transactions and set forth in Schedule 6.14 and (c) other
Capital Expenditures not exceeding the amount set forth below (the "Base
Amount") for each of the Fiscal Years of the Borrower set forth below:

<TABLE>
<CAPTION>
Fiscal Year Ended              Base Amount
-----------------              -----------
<S>                           <C>
September 30, 2003            $18.0 million
September 30, 2004            $20.0 million
September 30, 2005            $22.0 million
September 30, 2006            $24.0 million
September 30, 2007            $26.0 million
September 30, 2008            $28.0 million
September 30, 2009            $29.0 million
</TABLE>

provided that for any Fiscal Year set forth above, the Base Amount set forth
above may be increased by a maximum of 50% of the Base Amount for any such
Fiscal Year by carrying over to any such Fiscal Year any portion of the Base
Amount (without giving effect to any increase) not spent in the immediately
preceding Fiscal Year, and that Capital Expenditures in any Fiscal Year shall be
deemed first made from the Base Amount applicable to such Fiscal Year in any
given Fiscal Year; provided, further, that for avoidance of doubt, Capital
Expenditures for the Fiscal Year ended September 30, 2003 shall include Capital
Expenditures made or committed to be made by the Parent Guarantor and its
Subsidiaries prior to the Effective Date.

                  SECTION 6.15. Limitation on Activities of Parent Guarantor and
PII, LLC . Notwithstanding anything to the contrary set forth herein, the Parent
Guarantor and PII, LLC shall not conduct any business or hold or acquire any
assets and shall have no operations, except (i) the Parent Guarantor may acquire
and hold Equity Interests of the Borrower, (ii) PII, LLC may hold such assets
and conduct such operations as expressly permitted by the Foreign Subsidiary
Restructuring Documents and (iii) the Parent Guarantor may Guarantee
Indebtedness to the extent permitted by Section 6.01(a)(ix)(y).

                  SECTION 6.16. Anti-Terrorism Law. The Loan Parties shall not,
and shall not permit any Subsidiary to, directly or indirectly, (i) knowingly
conduct any business or engage in making or receiving any contribution of funds,
goods or services to or for the benefit of any Person described in Section 3.24
above, (ii) knowingly deal in, or otherwise engage in any transaction relating
to, any property or interests in property blocked pursuant to the Executive
Order or any other Anti-Terrorism Law, or (iii) knowingly engage in or conspire
to engage in any transaction that evades or avoids, or has the purpose of
evading or avoiding, or attempts to violate, any of the prohibitions set forth
in any Anti-Terrorism Law (and the Loan Parties shall deliver to the Lenders any
certification or other evidence requested from time to time by any Lender in its
reasonable discretion, confirming the Loan Parties' compliance with this Section
6.16).

                  SECTION 6.17. Embargoed Person. At all times throughout the
term of the Loans, (a) none of the funds or assets of the Loan Parties that are
used to repay the Loans shall, to the knowledge of any Loan Party, constitute
property of, or shall be beneficially owned directly or indirectly by, any
Person subject to sanctions or trade restrictions under United States law
("Embargoed Person" or "Embargoed Persons") that is identified on (1) the "List
of Specially Designated Nationals and Blocked Persons" (the "SDN List")
maintained by OFAC, and/or to the knowledge of any Loan Party, as of the date
thereof,

                                      -88-
<PAGE>

based upon reasonable inquiry by such Loan Party, on any other similar list
("Other List") maintained by OFAC pursuant to any authorizing statute including,
but not limited to, the International Emergency Economic Powers Act, 50 U.S.C.
Sections 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq.,
and any Executive Order or regulation promulgated thereunder, with the result
that the investment in the Loan Parties (whether directly or indirectly) is
prohibited by law, or the Loans made by the Lenders would be in violation of
law, or (2) the Executive Order, any related enabling legislation or any other
similar Executive Orders (collectively, "Executive Orders"), and (b) no
Embargoed Person shall, to the knowledge of any Loan Party, have any direct
interest, as of the Effective Date, based upon reasonable inquiry by any Loan
Party, indirect interest, of any nature whatsoever in the Loan Parties, with the
result that the investment in the Loan Parties (whether directly or indirectly)
is prohibited by law or the Loans are in violation of law.

                  SECTION 6.18. Anti-Money Laundering. At all times throughout
the term of the Loans, to the knowledge of any Loan Party, as of the date
hereof, based upon reasonable inquiry by such Loan Party, none of the funds of
such Loan Party that are used to repay the Loans shall be derived from any
unlawful activity with the result that the making of the Loans would be in
violation of law.

                                  ARTICLE VII

                                EVENTS OF DEFAULT

                  SECTION 7.01. Listing of Events of Default. Each of the
following events or occurrences described in this Section 7.01 shall constitute
(i) an "Event of Default", if any Loans, LC Disbursements or Letters of Credit
are outstanding, and (ii) an "Event of Termination", if no Loans, LC
Disbursements or Letters of Credit are outstanding:

                  (a) The Borrower shall default (i) in the payment when due of
         any principal of any Loan (including, without limitation, on any
         Installment Payment Date) or any reimbursement obligation in respect of
         any LC Disbursement, (ii) in the payment when due of any interest on
         any Loan (and such default shall continue unremedied for a period of
         three Business Days), or (iii) in the payment when due of any Fee
         described in Section 2.10 or of any other previously invoiced amount
         (other than an amount described in clauses (i) and (ii)) payable under
         this Agreement or any other Loan Document (and such default shall
         continue unremedied for a period of three Business Days).

                  (b) Any representation or warranty of the Borrower, Parent
         Guarantor or any other Loan Party made or deemed to be made hereunder
         or in any other Loan Document or any other writing or certificate
         furnished by or on behalf of the Parent Guarantor or any other Loan
         Party to the Administrative Agent, the Issuing Bank or any Lender for
         the purposes of or in connection with this Agreement or any such other
         Loan Document is or shall be incorrect in any material respect when
         made or deemed made.

                  (c) The Borrower shall default in the due performance and
         observance of any of its obligations under clause (f) of Section 5.01,
         clause (a) of Section 5.02 (with respect to the maintenance and
         preservation of the Parent Guarantor's or the Borrower's corporate
         existence) or Article VI.

                  (d) The Borrower, Parent Guarantor or any other Loan Party
         shall default in the due performance and observance of any agreement
         (other than those specified in paragraphs (a) through (c) above)
         contained herein or in any other Loan Document, and such default shall
         con-

                                      -89-
<PAGE>

         tinue unremedied for a period of 30 days after notice thereof from the
         Administrative Agent (given at the request of any Lender) to the
         Borrower.

                  (e) A default shall occur (i) in the payment when due (subject
         to any applicable grace period), whether by acceleration or otherwise,
         of any Material Indebtedness or (ii) in the performance or observance
         of any obligation or condition with respect to any Material
         Indebtedness if the effect of such default referred to in this clause
         (ii) is to accelerate the maturity of any such Material Indebtedness or
         that enables or permits (with or without the giving of notice, the
         lapse of time or both) the holder or holders of any such Material
         Indebtedness or any trustee or agent on its or their behalf to cause
         any such Material Indebtedness to become due, or to require the
         prepayment, repurchase, redemption or defeasance thereof, prior to its
         scheduled maturity.

                  (f) Any judgment or order (or combination of judgments and
         orders) for the payment of money equal to or in excess of $5.0 million
         individually or in the aggregate shall be rendered against the
         Borrower, Parent Guarantor or any of their Subsidiaries (excluding
         Inactive Subsidiaries) (or any combination thereof) and

                           (i) enforcement proceedings shall have been commenced
                  by any creditor upon such judgment or order and not stayed;

                           (ii) such judgment has not been stayed, vacated or
                  discharged within 60 days of entry; or

                           (iii) there shall be any period (after any applicable
                  statutory grace period) of 10 consecutive days during which a
                  stay of enforcement of such judgment or order, by reason of a
                  pending appeal or otherwise, shall not be in effect and such
                  judgment is not fully insured against by a policy or policies
                  of insurance (with reasonable or standard deductible
                  provisions) issued by an insurer other than an Affiliate of
                  the Borrower.

                  (g) Any of the following events shall occur with respect to
         any Pension Plan:

                           (i) the taking of any specific actions by a Loan
                  Party, any ERISA Affiliate or any other Person to terminate a
                  Pension Plan if, as a result of such termination, a Loan Party
                  or any ERISA Affiliate could reasonably expect to incur a
                  liability or obligation to such Pension Plan which,
                  individually or in the aggregate, could reasonably be expected
                  to have a Material Adverse Effect; or

                           (ii) an ERISA Event, or noncompliance with respect to
                  Foreign Plans, shall have occurred which, when taken together
                  with all other ERISA Events and noncompliance with respect to
                  Foreign Plans that have occurred, could, individually or in
                  the aggregate, reasonably be expected to have a Material
                  Adverse Effect.

                  (h) Any Change in Control shall occur.

                  (i) The Borrower, Parent Guarantor or any of their
         Subsidiaries (excluding Inactive Subsidiaries) shall

                           (i) generally fail to pay debts as they become due;

                           (ii) apply for, consent to, or acquiesce in the
                  appointment of a trustee, receiver, sequestrator or other
                  custodian for the Borrower, Parent Guarantor or any of such

                                      -90-
<PAGE>

                  Subsidiaries or substantially all of the property of any
                  thereof, or make a general assignment for the benefit of
                  creditors;

                           (iii) in the absence of such application, consent or
                  acquiescence, permit or suffer to exist the appointment of a
                  trustee, receiver, sequestrator or other custodian for the
                  Borrower, Parent Guarantor or any of such Subsidiaries or for
                  a substantial part of the property of any thereof, and such
                  trustee, receiver, sequestrator or other custodian shall not
                  be discharged or stayed within 60 days;

                           (iv) permit or suffer to exist the commencement of
                  any bankruptcy, reorganization, debt arrangement or other case
                  or proceeding under any bankruptcy or insolvency law, or any
                  dissolution, winding up or liquidation proceeding, in respect
                  of the Borrower, Parent Guarantor or any such Subsidiary
                  (except the dissolution of PII pursuant to the terms of the
                  Foreign Subsidiary Restructuring Documents) and, if any such
                  case or proceeding is not commenced by the Borrower, Parent
                  Guarantor or such Subsidiary, such case or proceeding shall be
                  consented to or acquiesced in by the Borrower, Parent
                  Guarantor such Subsidiary or shall result in the entry of an
                  order for relief or shall remain for 60 days undismissed and
                  unstayed; or

                           (v) take any corporate or partnership action (or
                  comparable action, in the case of any other form of legal
                  entity) authorizing, or in furtherance of, any of the
                  foregoing.

                  (j) The obligations of the Parent Guarantor under its
         Guarantee in Article IX or of any other Loan Party under the Guarantee
         Agreement shall cease to be in full force and effect or the Parent
         Guarantor or any such other Loan Party shall repudiate its obligations
         thereunder.

                  (k) Any Lien purported to be created under any Security
         Document shall fail or cease to be, or shall be asserted by any Loan
         Party not to be, a valid and perfected Lien on any material portion of
         the Collateral, with the priority required by the applicable Security
         Document.

                  (l) The subordination provisions relating to the Subordinated
         Notes (the "Subordination Provisions") shall fail in any material
         respect to be enforceable by the Lenders (which have not effectively
         waived the benefits thereof) in accordance with the terms thereof or
         the Borrower, Parent Guarantor or any Subsidiary Loan Party shall,
         directly or indirectly, disavow or contest in any manner any of the
         Subordination Provisions.

                  (m) The Effective Date does not occur within two Business Days
         of the execution and delivery of this Agreement.

                  SECTION 7.02. Action if Bankruptcy. If any Event of Default
described in clauses (i) through (v) of Section 7.01(i) shall occur, the
Commitments (if not theretofore terminated) shall automatically terminate and
the outstanding principal amount of all outstanding Loans and all other
Obligations shall automatically be and become immediately due and payable,
without notice or demand, all of which are hereby waived by the Borrower.

                  SECTION 7.03. Action if Other Event of Default. If any Event
of Default (other than any Event of Default described in clauses (i) through (v)
of Section 7.01(i)) shall occur for any reason, whether voluntary or
involuntary, and be continuing, the Administrative Agent, upon the direction of
the Requisite Lenders, shall by written notice to the Borrower and each Lender
declare all or any portion of the outstanding principal amount of the Loans and
other Obligations to be due and payable and/or the

                                      -91-
<PAGE>

Commitments (if not theretofore terminated) to be terminated, whereupon the full
unpaid amount of such Loans and other Obligations which shall be so declared due
and payable shall be and become immediately due and payable, without further
notice, demand or presentment and/or, as the case may be, the Commitments shall
terminate.

                  SECTION 7.04. Action if Event of Termination. Upon the
occurrence and continuation of any Event of Termination, the Requisite Lenders
may, by notice from the Administrative Agent to the Borrower and the Lenders
(except if an Event of Termination described in clauses (i) through (v) of
Section 7.01(i) shall have occurred, in which case the Commitments (if not
theretofore terminated) shall, without notice of any kind, automatically
terminate) declare their Commitments terminated, and upon such declaration the
Lenders shall have no further obligation to make any Loans hereunder. Upon such
termination of the Commitments, all accrued fees and expenses shall be
immediately due and payable.

                                  ARTICLE VIII

                                   THE AGENTS

                  SECTION 8.01. The Agents. Citicorp North America, Inc. is
hereby appointed to act as Administrative Agent and Collateral Agent on behalf
of the Lenders. Each of the Lenders and each assignee of any such Lender hereby
irrevocably authorizes each of the Agents to take such actions on behalf of such
Lender or assignee and to exercise such powers as are specifically delegated to
such Agent by the terms and provisions hereof and of the other Loan Documents,
together with such actions and powers as are reasonably incidental thereto. Each
Agent is hereby expressly authorized by the Lenders, without hereby limiting any
implied authority, (a) to receive on behalf of the Lenders all payments of
principal of and interest on the Loans, all payments and all other amounts due
to the Lenders hereunder, and promptly to distribute to each Lender its proper
share of each payment so received; (b) to give notice on behalf of each of the
Lenders to any of the Borrower of any Default specified in this Agreement of
which such Agent has actual knowledge acquired in connection with its agency
hereunder; and (c) to distribute to each Lender copies of all notices, financial
statements and other materials delivered by the Borrower pursuant to this
Agreement as received by such Agent.

                  None of the Agents nor any of their Related Parties shall be
liable to the Lenders as such for any action taken or omitted to be taken by any
of them except to the extent finally judicially determined to have resulted from
its or his or her own gross negligence or willful misconduct, or be responsible
for any statement, warranty or representation herein or the contents of any
document delivered in connection herewith, or be required to ascertain or to
make any inquiry concerning the performance or observance by any Loan Party of
any of the terms, conditions, covenants or agreements contained in any Loan
Document. The Agents shall not be responsible to the Lenders for the due
execution, genuineness, validity, enforceability or effectiveness of this
Agreement or any other Loan Documents or other instruments or agreements. Each
Agent shall in all cases be fully protected in acting, or refraining from
acting, in accordance with written instructions signed by the Requisite Lenders
(or, when expressly required hereby, all the Lenders) and, except as otherwise
specifically provided herein, such instructions and any action or inaction
pursuant thereto shall be binding on all the Lenders. Each Agent shall, in the
absence of actual knowledge to the contrary, be entitled to rely on any
instrument or document believed by it in good faith to be genuine and correct
and to have been signed or sent by the proper person or persons. None of the
Agents nor any of their Related Parties shall have any responsibility to the
Loan Parties on account of the failure of or delay in performance or breach by
any Lender of any of its obligations hereunder or to any Lender on account of
the failure of or delay in performance or breach by any other Lender or the Loan
Parties of any of their respective obligations hereunder or under any other Loan
Document or in connection herewith or therewith. Each Agent may execute any and
all duties hereunder by or through any of its

                                      -92-
<PAGE>

Related Parties or any sub-agent appointed by it and shall be entitled to rely
upon the advice of legal counsel selected by it with respect to all matters
arising hereunder and shall not be liable for any action taken or suffered in
good faith by it in accordance with the advice of such counsel.

                  The Lenders hereby acknowledge that no Agent shall be under
any duty to take any discretionary action permitted to be taken by it pursuant
to the provisions of any Loan Document unless it shall be requested in writing
to do so by the Requisite Lenders.

                  Subject to the appointment and acceptance of a successor Agent
as provided below, any Agent may resign at any time by notifying the Lenders,
the Issuing Bank and the Borrower. Upon any such resignation, the Requisite
Lenders shall have the right to appoint a successor. If no successor shall have
been so appointed by the Requisite Lenders and shall have accepted such
appointment within 30 days after the retiring Agent gives notice of its
resignation, then the retiring Agent may, on behalf of the Lenders and the
Issuing Bank, appoint a successor Agent which shall be a bank with an office in
New York, New York, having a combined capital and surplus of at least $500.0
million or an Affiliate of any such bank. Upon the acceptance of any appointment
as an Agent hereunder by such a successor bank, such successor shall 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. After an Agent's resignation hereunder, the provisions of
this Article and Section 10.05 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
an Agent.

                  With respect to the Loans made by it hereunder, each Agent in
its individual capacity and not as an Agent shall have the same rights and
powers as any other Lender and may exercise the same as though it were not an
Agent, and such Agent and its Affiliates may accept deposits from, lend money to
and generally engage in any kind of business with the Borrower or any Subsidiary
or other Affiliate thereof as if it were not an Agent.

                  Each Lender acknowledges that it has, independently and
without reliance upon any Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon any Agent or any other Lender and
based on such documents and information as it shall from time to time deem
appropriate, continue to make its own decisions in taking or not taking action
under or based upon this Agreement or any other Loan Document, any related
agreement or any document furnished hereunder or thereunder.

                  Notwithstanding anything to the contrary in this Agreement,
neither CGMI and Harris, as Joint Lead Arrangers and Joint Bookrunners, nor
Harris, as Syndication Agent, nor CIBC and Rabobank, as Co-Documentation Agents,
in such respective capacities, shall have any obligations, duties or
responsibilities, or shall incur any liabilities, under this Agreement or any
other Loan Document.

                                   ARTICLE IX

                                    GUARANTEE

                  SECTION 9.01. Guarantee of the Parent Guarantor. In order to
induce the Administrative Agent, the Issuing Bank, the Syndication Agent, the
Co-Documentation Agents, the Joint Lead Arrangers and the Lenders to execute and
deliver this Agreement and to make or maintain the Loans and to issue Letters of
Credit hereunder, and in consideration thereof, the Parent Guarantor hereby
unconditionally and irrevocably guarantees, as primary obligor and not merely as
surety, to the Agents, for the ratable benefit of the Secured Parties, the
prompt and complete payment and performance by the Bor-

                                      -93-
<PAGE>

rower when due (whether at stated maturity, by acceleration or otherwise) of the
Obligations, and the Parent Guarantor further agrees to pay any and all
reasonable expenses (including, without limitation, all reasonable fees, charges
and disbursements of counsel) which may be paid or incurred by the Agents, the
Syndication Agent, the Co-Documentation Agents, the Joint Lead Arrangers, the
Issuing Bank or any Lender in enforcing any of their rights under the Guarantee
contained in this Article IX. The Guarantee contained in this Article IX,
subject to Section 9.04, shall remain in full force and effect until all Letters
of Credit have terminated, the Obligations are paid in full and the Commitments
are terminated.

                  The Parent Guarantor agrees that whenever, at any time, or
from time to time, it shall make any payment to any Agent, the Syndication
Agent, the Co-Documentation Agents, the Joint Lead Arrangers, the Issuing Bank
or any Lender on account of its liability under this Article IX, it will notify
such Agent, the Syndication Agent, the Co-Documentation Agents, the Joint Lead
Arrangers, the Issuing Bank or such Lender in writing that such payment is made
under the Guarantee contained in this Article IX for such purpose. No payment or
payments made by the Borrower or any other Person or received or collected by
any Agent, the Syndication Agent, the Co-Documentation Agents, the Joint Lead
Arrangers, the Issuing Bank or any Lender from the Borrower or any other Person
by virtue of any action or proceeding or any setoff or appropriation or
application, at any time or from time to time, in reduction of or in payment of
the Obligations shall be deemed to modify, reduce, release or otherwise affect
the liability of the Parent Guarantor under this Article IX, which,
notwithstanding any such payment or payments, shall remain liable for the unpaid
and outstanding Obligations until, subject to Section 9.04, all Letters of
Credit have terminated and the Obligations are paid in full and the Commitments
are terminated.

                  SECTION 9.02. Amendments, etc. with Respect to the Applicable
Obligations. The Parent Guarantor shall remain obligated under this Article IX
notwithstanding that (i) without any reservation of rights against the Parent
Guarantor, and (ii) without notice to or further assent by the Parent Guarantor,
(x) any demand for payment of or reduction in the principal amount of any of the
Obligations made by the Agents, the Syndication Agent, the Co-Documentation
Agents, the Joint Lead Arrangers, the Issuing Bank or any Lender may be
rescinded by the Agents, the Syndication Agent, the Co-Documentation Agents, the
Joint Lead Arrangers, the Issuing Bank or such Lender, (y) any of the
Obligations may be continued, and the applicable Obligations, or the liability
of any other party upon or for any part thereof, or any collateral security or
guarantee therefor or right of offset with respect thereto, may, from time to
time, in whole or in part, be renewed, extended, amended, modified, accelerated,
compromised, waived, surrendered or released by the Agents, the Syndication
Agent, the Co-Documentation Agents, the Joint Lead Arrangers, the Issuing Bank
or any Lender, and (z) this Agreement and any other documents executed and
delivered in connection herewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Lenders (or the Requisite Lenders, as
the case may be) may deem advisable from time to time, and any collateral
security, guarantee or right of offset at any time held by the Agents, the
Syndication Agent, the Co-Documentation Agents, the Joint Lead Arrangers, the
Issuing Bank or any Lender for the payment of the applicable Obligations may be
sold, exchanged, waived, surrendered or released. None of the Agents, the
Syndication Agent, the Co-Documentation Agents, the Joint Lead Arrangers, the
Issuing Bank or any Lender shall have any obligation to protect, secure, perfect
or insure any Lien at any time held by it as security for the Obligations or for
the Guarantee contained in this Article IX or any property subject thereto.

                  SECTION 9.03. Guarantee Absolute and Unconditional. The Parent
Guarantor waives any and all notice of the creation, renewal, extension or
accrual of any of the Obligations and notice of or proof of reliance by the
Agents, the Syndication Agent, the Co-Documentation Agents, the Joint Lead
Arrangers, the Issuing Bank or any Lender upon the Guarantee contained in this
Article IX or acceptance of the Guarantee contained in this Article IX; the
Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in

                                      -94-
<PAGE>

reliance upon the Guarantee contained in this Article IX, and all dealings
between the Parent Guarantor, on the one hand, and the Agents, the Syndication
Agent, the Co-Documentation Agents, the Joint Lead Arrangers, the Issuing Bank
and the Lenders, on the other, shall likewise be conclusively presumed to have
been had or consummated in reliance upon the Guarantee contained in this Article
IX. The Agents, the Syndication Agent, the Co-Documentation Agents, the Joint
Lead Arrangers, Issuing Bank and any Lender will, to the extent permitted by
applicable law, request payment of any applicable Obligation from the Borrower
before making any claim against the Parent Guarantor under this Article IX, but
will have no further obligation to proceed against the Borrower or to defer for
any period a claim against the Parent Guarantor hereunder. Except as expressly
provided in the preceding sentence, the Parent Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to
or upon the Parent Guarantor or the Borrower with respect to the Obligations.
The Guarantee contained in this Article IX shall be construed as a continuing,
absolute and unconditional guarantee of payment without regard to (a) the
validity or enforceability of this Agreement or any other Loan Document, any of
the Obligations or any collateral security therefor or Guarantee or right of
offset with respect thereto at any time or from time to time held by any Agent,
the Syndication Agent, the Co-Documentation Agents, the Joint Lead Arrangers,
the Issuing Bank or any Lender, (b) the legality under applicable laws of
repayment by the Borrower of any Obligations or the adoption of any applicable
laws purporting to render any Obligations null and void, (c) any defense, setoff
or counterclaim (other than a defense of payment or performance) which may at
any time be available to or be asserted by the Parent Guarantor or the Borrower
against the Agents, the Syndication Agent, the Co-Documentation Agents, the
Joint Lead Arrangers, the Issuing Bank or any Lender, or (d) any other
circumstance whatsoever (with or without notice to or knowledge of the Parent
Guarantor or the Borrower) which constitutes, or might be construed to
constitute, an equitable or legal discharge of the Borrower for any Obligations,
or of the Parent Guarantor under the Guarantee contained in this Article IX, in
bankruptcy or in any other instance. When any Agent, the Syndication Agent, the
Co-Documentation Agents, the Joint Lead Arrangers, the Issuing Bank or any
Lender is pursuing its rights and remedies under this Article IX against the
Parent Guarantor, such Agent, the Syndication Agent, the Co-Documentation
Agents, the Joint Lead Arrangers, the Issuing Bank or such Lender may, but shall
be under no obligation to, pursue such rights and remedies as it may have
against the Borrower or any other Person or against any collateral security or
Guarantee for the Obligations or any right of offset with respect thereto, and
any failure by any Agent, the Syndication Agent, the Co-Documentation Agents,
the Joint Lead Arrangers, the Issuing Bank or any Lender to pursue such other
rights or remedies or to collect any payments from the Borrower or any such
other Person or to realize upon any such collateral security or Guarantee or to
exercise any such right of offset, or any release of the Borrower or any such
other Person or of any such collateral security, Guarantee or right of offset,
shall not relieve the Parent Guarantor of any liability under this Article IX,
and shall not impair or affect the rights and remedies, whether express, implied
or available as a matter of law, of the Agents, the Syndication Agent, the
Co-Documentation Agents, the Joint Lead Arrangers, the Issuing Bank and the
Lenders against the Parent Guarantor.

                  SECTION 9.04. Reinstatement. The Guarantee contained in this
Article IX shall continue to be effective, or be reinstated, as the case may be,
if at any time payment, or any part thereof, of any of the Obligations is
rescinded or must otherwise be restored or returned by any Agent, the
Syndication Agent, the Issuing Bank or any Lender upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the Borrower or upon
or as a result of the appointment of a receiver, intervenor or conservator of,
or trustee or similar officer for, the Borrower or any substantial part of its
Property, or otherwise, all as though such payments had not been made.

                  SECTION 9.05. Payments. The Parent Guarantor hereby agrees
that any payments in respect of the Obligations (including, without limitation,
payment obligations pursuant to Section 2.16)

                                      -95-
<PAGE>

pursuant to this Article IX will be paid without setoff or counterclaim, at the
option of the Issuing Bank or the relevant Lender(s), in Dollars at the office
of the Administrative Agent specified in Section 10.01.

                  SECTION 9.06. Independent Obligations. The obligations of the
Parent Guarantor under the Guarantee contained in this Article IX are
independent of the obligations of the Borrower, and a separate action or actions
may be brought and prosecuted against the Parent Guarantor whether or not the
Borrower is joined in any such action or actions. The Parent Guarantor waives,
to the full extent permitted by law, the benefit of any statute of limitations
affecting its liability hereunder or the enforcement thereof. Any payment by the
Borrower or other circumstance which operates to toll any statute of limitations
as to the Borrower shall operate to toll the statute of limitations as to the
Parent Guarantor.

                  SECTION 9.07. Defenses of Parent Guarantor. To the fullest
extent permitted by applicable law, the Parent Guarantor waives any defense
based on or arising out of any defense of any Loan Party or the unenforceability
of the Obligations or any part thereof from any cause, or the cessation from any
cause of the liability of any Loan Party, other than the final and indefeasible
payment in full in cash of the Obligations. The Collateral Agent and the other
Secured Parties may, at their election, foreclose on any security held by one or
more of them by one or more judicial or nonjudicial sales, accept an assignment
of any such security in lieu of foreclosure, compromise or adjust any part of
the Obligations, make any other accommodation with any Loan Party or any other
guarantor or exercise any other right or remedy available to them against any
Loan Party or any other guarantor, without affecting or impairing in any way the
liability of the Parent Guarantor hereunder except to the extent the Obligations
have been fully, finally and indefeasibly paid in cash. Pursuant to applicable
law, the Parent Guarantor waives any defense arising out of any such election
even though such election operates, pursuant to applicable law, to impair or to
extinguish any right of reimbursement or subrogation or other right or remedy of
the Parent Guarantor against any Loan Party or any other guarantor, as the case
may be, or any security.

                  SECTION 9.08. Agreement to Pay; Subordination. In furtherance
of the foregoing and not in limitation of any other right that the Collateral
Agent or any other Secured Party has at law or in equity against the Parent
Guarantor by virtue hereof, upon the failure of any Loan Party to pay any
Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, the Parent Guarantor
hereby promises to and will forthwith pay, or cause to be paid, to the
Collateral Agent or such other Secured Party as designated thereby in cash the
amount of such unpaid Obligations. Upon payment by the Parent Guarantor of any
sums to the Collateral Agent or any Secured Party as provided above, all rights
of the Parent Guarantor against any Loan Party arising as a result thereof by
way of right of subrogation, contribution, reimbursement, indemnity or otherwise
shall in all respects be subordinate and junior in right of payment to the prior
indefeasible payment in full in cash of all the Obligations. In addition, any
indebtedness of any Loan Party now or hereafter held by the Parent Guarantor is
hereby subordinated in right of payment to the prior payment in full in cash of
the Obligations. If any amount shall erroneously be paid to the Parent Guarantor
on account of (i) such subrogation, contribution, reimbursement, indemnity or
similar right or (ii) any such indebtedness of any Loan Party, such amount shall
be held in trust for the benefit of the Secured Parties and shall forthwith be
paid to the Collateral Agent to be credited against the payment of the
Obligations, whether matured or unmatured, in accordance with the terms of the
Loan Documents.

                                      -96-
<PAGE>

                                    ARTICLE X

                                  MISCELLANEOUS

                  SECTION 10.01. Notices. (a) Except as set forth in Section
10.17, notices and other communications provided for herein shall be in writing
and shall be delivered by hand or overnight courier service, mailed by certified
or registered mail, sent by telecopy or electronic mail, as follows:

                  (i) if to the Borrower, to it at 2700 Camino del Sol, Oxnard,
         CA 93030 (telecopy: (805) 918-2553) (e-mail:
         gaspar.alvarez@seminis.com) with a copy to Wachtell, Lipton, Rosen &
         Katz, 51 West 52nd Street, New York, New York 10019, attention:
         Mitchell S. Presser, Esq. (telecopy: (212) 403-2273) (email:
         mspresser@wlrk.com) and a copy to Milbank, Tweed, Hadley & McCloy LLP,
         1 Chase Manhattan Plaza, New York, NY 10005, attention: Howard Kelberg,
         Esq. (telecopy: (212) 822-5530) (email: hkelberg@milbank.com);

                  (ii) if to the Administrative Agent to it at Citicorp North
         America, Inc., 390 Greenwich St., New York, New York 10013, attention:
         Daniel J. Brill (telecopy: (212) 723-8547) (e-mail:
         daniel.j.brill@citigroup.com), with a copy to Cahill Gordon & Reindel
         LLP, 80 Pine Street, New York, New York 10005, attention: Michael E.
         Michetti, Esq. (telecopy: (212) 269-5420) (email:
         mmichetti@cahill.com);

                  (iii) if to the Joint Lead Arrangers, to them at Citigroup
         Global Markets, Inc., 390 Greenwich St., New York, New York 10013,
         attention: Daniel J. Brill (telecopy: (212) 723-8547) (email:
         daniel.j.brill@citigroup.com), and at Harris Trust Savings Bank, 111
         West Monroe, 20W, Chicago, Illinois 60603, attention: Jennifer A.
         Wendrow (telecopy: (312) 293-4280) (email:
         jennifer.wendrow@harrisnesbitt.com), with a copy to Cahill Gordon &
         Reindel llp, 80 Pine Street, New York, New York 10005, attention:
         Michael E. Michetti, Esq. (telecopy: (212) 269-5420) (email:
         mmichetti@cahill.com);

                  (iv) if to the Issuing Bank, to it at Harris Trust Savings
         Bank, 111 West Monroe, 20W, Chicago, Illinois 60603, attention:
         Jennifer A. Wendrow (telecopy: (312) 293-4280) (email:
         jennifer.wendrow@harrisnesbitt.com); and

                  (v) if to a Lender, to it at its address (or telecopy number)
         set forth on Schedule 2.01 or its Administrative Questionnaire or in
         the Assignment and Acceptance pursuant to which such Lender shall have
         become a party hereto.

                  All notices and other communications given to any party hereto
in accordance with the provisions of this Agreement shall be deemed to have been
given on the date of receipt if delivered by hand or overnight courier service
or sent by telecopy or electronic mail or on the date five Business Days after
dispatch by certified or registered mail if mailed, in each case delivered, sent
or mailed (properly addressed) to such party as provided in this Section 10.01
or in accordance with the latest unrevoked direction from such party given in
accordance with this Section 10.01. Each Loan Party and Lender hereunder agrees
to notify the Administrative Agent in writing promptly of any change to the
notice information provided above or on Schedule 2.01.

                  (b) The Borrower shall forthwith on demand indemnify each
Lender against any loss or liability which that Lender incurs (and that Lender
shall not be liable to the Borrower in any respect) as a consequence of:

                                      -97-
<PAGE>

                  (i) any Person to whom any notice or communication under or in
         connection with this Agreement is sent by the Borrower by telecopy
         failing to receive that notice or communication (unless directly caused
         by that Person's gross negligence or willful default); or

                  (ii) any telecopy communication which reasonably appears to
         that Lender to have been sent by the Borrower having in fact been sent
         by a Person other than the Borrower.

                  SECTION 10.02. Survival of Agreement. All covenants,
agreements, representations and warranties made by the Loan Parties herein and
in the certificates or other instruments prepared or delivered in connection
with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by Lenders hereto and shall survive the
making by the Lenders of the Loans and issuance of any Letters of Credit,
regardless of any investigation made by any such other party or on its behalf
and notwithstanding that the Administrative Agent, the Issuing Bank or any
Lender may have had notice or knowledge of any Default or Event of Default or
incorrect representation or warranty at the time any credit is extended
hereunder, and shall continue in full force and effect as long as the principal
of or any accrued interest on any Loan or any Fee or any other amount payable
under this Agreement or any other Loan Document is outstanding and unpaid or any
Letter of Credit is outstanding and so long as the Commitments have not been
terminated. The provisions of Sections 2.14, 2.15, 2.16, 10.05 and 10.16 and
Article VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof.

                  SECTION 10.03. Binding Effect. Subject to Section 4.01, this
Agreement shall become effective when it shall have been executed by the
Borrower and the Administrative Agent and when the Administrative Agent shall
have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
permitted successors and assigns.

                  SECTION 10.04. Successors and Assigns. (a) Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the permitted successors and assigns of such party (including
any Affiliate of the Issuing Bank that issues any Letter of Credit). All
covenants, promises and agreements by or on behalf of the Borrower, the Agents
or the Lenders that are contained in this Agreement shall bind and inure to the
benefit of their respective successors and assigns. Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in clause (f) below and, solely to the
extent expressly contemplated hereby, the Related Parties of each of the Agents,
the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim
under or by reason of this Agreement.

                  (b) Each Lender may assign to one or more assignees all or a
portion of its interests, rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans at the time owing to it);
provided, however, that (i) except in the case of an assignment to a Lender or a
Lender Affiliate or in connection with the initial syndication of the
Commitments and Loans, the Administrative Agent and the Borrower (and, in the
case of any assignment of a Revolving Credit Commitment or any Lender's
obligations in respect of its LC Exposure or Swingline Exposure, the Issuing
Bank and the Swingline Lender) must give their prior written consent to such
assignment (which consent shall not be unreasonably withheld or delayed and, in
the case of an assignment during the occurrence and continuation of an Event of
Default, the Borrower's consent need not be obtained), (ii) except in the case
of an assignment to a Lender or a Lender Affiliate or in connection with the
initial syndication of the Commitments and Loans, the amount of the Commitment
or Loans of the assigning Lender subject to each

                                      -98-
<PAGE>

such assignment (determined as of the date the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than, in the case of the Term B Loans, $1.0 million and increments of
$1.0 million in excess thereof and, in the case of the Revolving Loans, $5.0
million and increments of $1.0 million in excess thereof (or (A) if the
aggregate amount of the Commitment or Loans of the assigning Lender is a lesser
amount, the entire amount of such Commitment or Loans, or (B) in any other case,
such lesser amount as Administrative Agent otherwise agrees), (iv) each partial
assignment shall be made as an assignment of a proportionate part of all the
assigning Lender's rights and obligations under this Agreement, except that this
clause (iv) shall not be construed to prohibit the assignment of a proportionate
part of all the assigning Lender's rights and obligations in respect of one
Class of Commitments and Loans, (v) except in the case of the assignment to an
Affiliate of such Lender, an assignment by a Lender to any Person in connection
with the primary syndication of the Loans or an assignment required to be made
pursuant to Section 2.20, the parties to each such assignment shall execute and
deliver to the Administrative Agent an Assignment and Acceptance, together with
a processing and recordation fee of $3,500 (which fee may be waived by the
Administrative Agent in its sole discretion), and (vi) the assignee, if it shall
not be a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire. Subject to acceptance and recording pursuant to paragraph (e) of
this Section 10.04, from and after the effective date specified in each
Assignment and Acceptance, which effective date shall be at least five Business
Days after the execution thereof (unless otherwise determined by the
Administrative Agent), (A) the assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Acceptance, have
the rights and obligations of a Lender under this Agreement, and (B) the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all or the
remaining portion of an assigning Lender's rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of (and be subject to the requirements of) Sections
2.14, 2.15, 2.16 and 10.05 with respect to facts and circumstances occurring
prior to the effective date of such assignment, as well as to any Fees accrued
for its account and not yet paid). Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
paragraph 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
paragraph (f) of this Section.

                  (c) By executing and delivering an Assignment and Acceptance,
the assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it is the legal and beneficial owner of
the interest being assigned thereby free and clear of any adverse claim and that
its Commitment, and the outstanding balances of its Loans and participations in
Swingline Loans, in each case without giving effect to assignments thereof which
have not become effective, are as set forth in such Assignment and Acceptance,
(ii) except as set forth in (i) above, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement, or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement, any other Loan Document or any other
instrument or document furnished pursuant hereto, or the financial condition of
the Borrower or any Subsidiary or the performance or observance by the Borrower
or any Subsidiary of any of its obligations under this Agreement, any other Loan
Document or any other instrument or document furnished pursuant hereto; (iii)
such assignee represents and warrants that it is legally authorized to enter
into such Assignment and Acceptance; (iv) such assignee confirms that it has
received a copy of this Agreement, together with copies of the most recent
financial statements, if any, delivered pursuant to Section 5.01 and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (v) such
assignee will independently and without reliance upon either Agent, such
assigning Lender or any other Lender and based on such documents and information
as it

                                      -99-
<PAGE>

shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (vi) such assignee appoints
and authorizes each Agent to take such action as agent on its behalf and to
exercise such powers under this Agreement as are delegated to such Agent by the
terms hereof, together with such powers as are reasonably incidental thereto;
(vii) such assignee agrees that it will perform in accordance with their terms
all the obligations which by the terms of this Agreement are required to be
performed by it as a Lender; and (viii) Schedule 2.01 shall be deemed to be
amended to reflect the assigning Lender thereunder and the assignee thereunder
after giving effect thereto.

                  (d) The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices in The City of New
York a copy of each Assignment and Acceptance delivered to it and a register for
the recordation of the names and addresses of the Lenders, and the Commitment
of, and principal amount of the Loans and LC Disbursements, and participations
in Swingline Loans, owing to, each Lender pursuant to the terms hereof from time
to time (the "Register"). Except to the extent inconsistent with Section
2.07(d), the entries in the Register shall be conclusive and the Borrower, the
Agents, the Issuing Bank and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower, the Issuing Bank and
any Lender, at any reasonable time and from time to time upon reasonable prior
notice.

                  (e) Upon its receipt of a duly completed Assignment and
Acceptance executed by an assigning Lender and an assignee, an Administrative
Questionnaire completed in respect of the assignee (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) above and, if required, the written consent of the Borrower,
the Issuing Bank, the Swingline Lender and the Administrative Agent to such
assignment, the Administrative Agent shall (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Lenders. No assignment shall be
effective unless it has been recorded in the Register as provided in this
paragraph (e).

                  (f) Each Lender may without the consent of the Borrower, the
Swingline Lender, the Issuing Bank or the Administrative Agent, sell
participations to any Person (other than a natural person or the Borrower or any
of the Borrower's Affiliates or Subsidiaries) (each, a "Participant") in all or
a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans owing to it); provided, however, that
(i) such Lender's obligations under this Agreement shall remain unchanged, (ii)
such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) each Participant shall be entitled to the
benefit of the cost protection provisions contained in Sections 2.14, 2.15 and
2.16 and the provisions of Section 5.01 to the same extent as if they were
Lenders (subject to compliance in the conditions applicable to Lenders specified
therein) and had acquired its interest by assignment pursuant to paragraph (b)
of this Section 10.04 (provided that no participant shall be entitled to receive
any greater amount pursuant to such Sections than the Lender would have been
entitled to receive in respect of the interest transferred unless either (x)
such transfer to such Participant is made with the Borrower's prior written
consent (not to be unreasonably withheld) or (y) a Default or an Event of
Default has occurred and is continuing at the time of such participation), and
(iv) the Borrower, the Agents, the Issuing Bank and the Lenders shall continue
to deal solely and directly with such Lender in connection with such Lender's
rights and obligations under this Agreement, and such Lender shall retain the
sole right (which each Lender agrees will not be limited by the terms of any
participation agreement or other agreement with a participant) to enforce the
Loan Documents and to approve any amendment, modification or waiver of any
provision of the Loan Documents (other than, without the consent of the
Participant, amendments, modifications or waivers described in the first proviso
of Section 10.08(b) that affect such Participant). To the extent permitted by
law, each Participant also shall

                                     -100-
<PAGE>

be entitled to the benefits of Section 10.06 as though it were a Lender,
provided such Participant agrees to be subject to Section 2.20 as though it were
a Lender.

                  (g) Any Lender or participant may, in connection with any
assignment or participation or proposed assignment or participation pursuant to
this Section 10.04, disclose to the assignee or participant or proposed assignee
or participant any information relating to the Borrower and its Subsidiaries
furnished to such Lender by or on behalf of any of the Loan Parties; provided
that, prior to any such disclosure of information designated by the Borrower as
confidential, each such assignee or participant or proposed assignee or
participant shall execute a confidentiality agreement in form and substance
consistent with provisions of Section 10.16.

                  (h) Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank and this Section 10.04 shall not apply to
any such pledge or assignment of a security interest; provided that (x) no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto and (y) any foreclosure or similar action shall be
subject to the provisions of Section 10.04(b) concerning assignments and shall
not be effective to transfer any rights under this Agreement or in any Loan,
Note or other instrument evidencing the rights of a Lender under this Agreement
until the requirements of Section 10.04(b) concerning assignments are fully
satisfied. In order to facilitate such a pledge or assignment, the Borrower
shall, at the request of the assigning Lender, duly execute and deliver to the
assigning Lender a promissory note or notes evidencing the Loans made to the
Borrower by the assigning Lender hereunder.

                  (i) The Borrower shall not assign or delegate any of its
rights or duties hereunder without the prior written consent of the
Administrative Agent and each Lender, and any attempted assignment without such
consent shall be null and void.

                  (j) The Borrower hereby expressly assumes all obligations of
Seminis Acquisition, LLC under the Fee Letter as if the Borrower were a party
thereto and acknowledges that such obligations constitute "Obligations" within
the meaning of this Agreement.

                  SECTION 10.05. Expenses; Indemnity. (a) The Borrower agrees to
pay (i) all reasonable out-of-pocket expenses incurred by the Administrative
Agent, the Collateral Agent, the Syndication Agent, the Co-Documentation Agents,
the Joint Lead Arrangers, CGMI and its Affiliates, including the reasonable
fees, charges and disbursements of Cahill Gordon & Reindel llp, counsel for the
Administrative Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation and administration of this
Agreement and the other Loan Documents or in connection with any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the
transactions hereby contemplated shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the Issuing Bank in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder and (iii) all reasonable out-of-pocket expenses incurred
by the Administrative Agent, the Collateral Agent, the Syndication Agent, the
Co-Documentation Agents, the Joint Lead Arrangers, the Issuing Bank or any
Lender in connection with the enforcement or protection of its rights in
connection with this Agreement (including its rights under this Section), the
other Loan Documents or the Loans made or Letters of Credit issued hereunder,
including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit,
and, in connection with any such enforcement or protection, the fees, charges
and disbursements of any other counsel for the Administrative Agent, the
Collateral Agent, the Syndication Agent, the Co-Documentation Agents, the Joint
Lead Arrangers, the Issuing Bank or any Lender; provided, however,

                                     -101-
<PAGE>

that the Borrower shall not be obligated to pay for expenses incurred by a
Lender in connection with the assignment of Loans to an assignee Lender (except
pursuant to Section 2.20) or the sale of Loans to a participant pursuant to
Section 10.04.

                  (b) The Borrower agrees to indemnify the Administrative Agent,
the Collateral Agent, the Syndication Agent, the Co-Documentation Agents, the
Joint Lead Arrangers, the Issuing Bank, each Lender, each Affiliate of any of
the foregoing Persons and each of their respective Related Parties (each such
Person being called an "Indemnitee") against, and to hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related
reasonable expenses, including reasonable counsel fees, charges and
disbursements, incurred by or asserted against any Indemnitee arising out of, in
any way connected with, or as a result of (i) the execution or delivery of this
Agreement or any other Loan Document or any agreement or instrument contemplated
thereby, the performance by the parties hereto or thereto of their respective
obligations thereunder or the consummation of the Transactions and the other
transactions contemplated thereby, (ii) the use of the proceeds of the Loans or
Letters of Credit (including any refusal by the Issuing Bank to honor a demand
for payment under a Letter of Credit if the documents presented in connection
with such demand do not strictly comply with the terms of such Letter of
Credit), (iii) any claim, litigation, investigation or proceeding relating to
any of the foregoing, whether or not any Indemnitee is a party thereto, or (iv)
any actual or alleged presence or Release or threat of Release of Hazardous
Materials on, at, under or emanating from any property owned or operated by the
Borrower or any of the Subsidiaries, or any Environmental Liability or
Environmental Claim related in any way to the Borrower or the Subsidiaries;
provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related reasonable
expenses are finally judicially determined to have arisen by reason of the
Indemnitee's gross negligence or willful misconduct.

                  (c) To the extent that the Borrower fails to promptly pay any
amount to be paid by it to any Agent, the Syndication Agent, the
Co-Documentation Agents, the Joint Lead Arrangers, the Issuing Bank or the
Swingline Lender under paragraph (a) or (b) of this Section, each Lender
severally agrees to pay to such Agent, the Syndication Agent, the
Co-Documentation Agents, the Joint Lead Arrangers, the Issuing Bank or the
Swingline Lender, as the case may be, such Lender's pro rata share (determined
as of the time that the applicable unreimbursed expense or indemnity payment is
sought) of such unpaid amount (other than syndication expenses); provided that
the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
applicable Agent, the Syndication Agent, the Co-Documentation Agents, the Joint
Lead Arrangers, the Issuing Bank or the Swingline Lender in its capacity as
such. For purposes hereof, a Lender's "pro rata share" shall be determined based
upon its share of the sum of the total Revolving Credit Exposures, outstanding
Term B Loans and unused Commitments at the time.

                  (d) To the extent permitted by applicable law, the Borrower
shall not assert, and hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual damages) arising out of, in connection with, or
as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the
proceeds thereof.

                  (e) The provisions of this Section 10.05 shall remain
operative and in full force and effect regardless of the expiration of the term
of this Agreement, the consummation of the transactions contemplated hereby, the
repayment of any of the Loans, the expiration of the Commitments, the invalidity
or unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of the Administrative Agent
or any Lender. All amounts due under this Section 10.05 shall be payable on
written demand therefor.

                                     -102-
<PAGE>

                  SECTION 10.06. Right of Setoff. If an Event of Default or
Event of Termination shall have occurred and be continuing, each Lender is
hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other indebtedness at
any time owing by such Lender or its Affiliates to or for the credit or the
account of any Loan Party against any of and all the obligations of any Loan
Party now or hereafter existing under this Agreement and other Loan Documents
held by such Lender or its Affiliates, irrespective of whether or not such
Lender shall have made any demand under this Agreement or such other Loan
Document and although such obligations may be unmatured. In connection with
exercising its rights pursuant to the previous sentence, a Lender may at any
time use any of the Loan Parties' credit balances with the Lender or its
Affiliates to purchase at the Lender's applicable spot rate of exchange any
other currency or currencies which the Lender considers necessary to reduce or
discharge any amount due by the Loan Parties to the Lender, and may apply that
currency or those currencies in or towards payment of those amounts. The rights
of each Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have. Each Lender
agrees promptly to notify the Borrower and the Administrative Agent after making
any such setoff.

                  SECTION 10.07. Applicable Law. THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS (OTHER THAN AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL
BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK.

                  SECTION 10.08. Waivers; Amendment. (a) No failure or delay of
either Agent, the Syndication Agent, the Co-Documentation Agents, the Joint Lead
Arrangers, the Issuing Bank or any Lender in exercising any power or right
hereunder or under any Loan Document shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Agents, the Syndication Agent,
the Co-Documentation Agents, the Joint Lead Arrangers, the Issuing Bank and the
Lenders hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies which they would otherwise have. No waiver
of any provision of this Agreement or any other Loan Document or consent to any
departure by the Borrower therefrom shall in any event be effective unless the
same shall be permitted by paragraph (b) below, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any Default
or Event of Default regardless of whether an Agent, the Syndication Agent, the
Co-Documentation Agents, the Joint Lead Arrangers, any Lender or the Issuing
Bank may have had notice or knowledge of such Default or Event of Default at the
time. No notice or demand on the Borrower in any case shall entitle the Borrower
to any other or further notice or demand in similar or other circumstances.

                  (b) Subject to Sections 10.08(c), 10.08(d), 10.08(e), 10.08(f)
and 10.08(h), no amendment, modification, termination or waiver of any provision
of any Loan Document, or consent to any departure by any Loan Party therefrom,
shall in any event be effective without the written concurrence of the Requisite
Lenders.

                  (c) Subject to Section 10.08(e), 10.08(f) and 10.08(h),
without the written consent of each Lender that would be directly affected
thereby (whose consent shall be sufficient therefor without the consent of the
Requisite Lenders), no amendment, modification, termination, waiver or consent
shall be effective if the effect thereof would:

                                     -103-
<PAGE>

                  (i) extend the scheduled final maturity of any Loan or Note;

                  (ii) waive, reduce or postpone any scheduled repayment (but
         not prepayment);

                  (iii) extend the stated expiration date of any Letter of
         Credit beyond the Revolving Credit Maturity Date;

                  (iv) reduce the rate of interest on any Loan (other than any
         waiver of any increase in the interest rate applicable to any Loan
         pursuant to Section 2.08) or any fee payable hereunder, it being
         understood that any amendment or modification to the financial
         definitions in this Agreement shall not constitute a reduction in the
         rate of interest for purposes of this clause (iv);

                  (v) extend the time for payment of any such interest or fees;

                  (vi) reduce the principal amount of any Loan or any
         reimbursement obligation in respect of any Letter of Credit;

                  (vii) amend, modify, terminate or waive any provision of
         Section 10.08(b), Section 10.08(c), Section 10.08(d) or Section
         10.08(e) (except for technical amendments with respect to any
         additional extensions of credit pursuant to this Agreement which affect
         the protections to such additional extensions of credit of the type
         provided to the Revolving Credit Commitments and the Term B Loans on
         the Effective Date);

                  (viii) amend the definition of "Requisite Lenders" or "Pro
         Rata Percentage"; provided, with the consent of Requisite Lenders, any
         additional extensions of credit pursuant hereto may be included in the
         determination of "Requisite Lenders" or "Pro Rata Percentage" on
         substantially the same basis as the Revolving Credit Commitments,
         Revolving Loans, Term B Commitments and Term B Loans, are included on
         the Effective Date;

                  (ix) release all or substantially all of the Collateral or all
         or substantially all of the Guarantors from the Guarantee except as
         expressly provided in the Loan Documents or subordinate the Liens in
         respect of all or substantially all of the Collateral under any
         Security Document, it being understood that additional extensions of
         credit under this Agreement consented to by the Requisite Lenders may
         be equally and ratably secured by the Collateral with the then existing
         secured obligations under the Security Documents;

                  (x) consent to the assignment or transfer by any Loan Party of
         any of its rights and obligations under any Loan Document; or

                  (xi) amend, modify, terminate or waive the provisions of
         Sections 2.13(a) or 2.19 affecting pro rata treatment or any provision
         hereof in a manner that would alter the pro rata allocation among the
         Lenders of Loan disbursements, including, without limitation, the
         requirements of Sections 2.02(c) and (d) and Section 2.06(d).

                  (d) Subject to Sections 10.08(e), 10.08(f) and 10.08(h), no
amendment, modification, termination, waiver or consent with respect to any
provision of the Loan Documents, or consent to any departure by any Loan Party
therefrom, shall:

                  (i) increase any Revolving Credit Commitment of any Lender
         over the amount thereof then in effect without the consent of such
         Lender; provided no amendment, modification,

                                     -104-
<PAGE>

         termination, waiver or consent with respect to any condition precedent,
         covenant, Default or Event of Default shall constitute an increase in
         any Revolving Credit Commitment of any Lender;

                  (ii) amend, modify, terminate or waive any provision hereof
         relating to the Swingline Sublimit or the Swingline Loans without the
         consent of Swingline Lender;

                  (iii) amend the definition of "Requisite Class Lenders"
         without the consent of Requisite Class Lenders of each Class; provided,
         with the consent of the Requisite Lenders, any additional extensions of
         credit pursuant hereto may be included in the determination of such
         "Requisite Class Lenders" on substantially the same basis as the
         Revolving Credit Commitments, Revolving Loans, Term B Commitments and
         Term B Loans are included on the Effective Date;

                  (iv) alter the required application of any repayments or
         prepayments as between Classes pursuant to Section 2.05 or Section 2.11
         without the consent of Requisite Class Lenders of each Class which is
         being allocated a lesser repayment or prepayment as a result thereof;
         provided the Requisite Lenders may waive, in whole or in part, any
         prepayment so long as the application, as between Classes, of any
         portion of such prepayment that is still required to be made is not
         altered and, if additional extensions of term credit under this
         Agreement consented to by the Requisite Lenders are made, such new term
         loans may be included on a pro rata basis in the various prepayments
         required pursuant to Section 2.05;

                  (v) amend, modify, terminate or waive any obligation of
         Lenders relating to the issuance of or purchase of participations in
         Letters of Credit without the written consent of Administrative Agent
         and of Issuing Bank;

                  (vi) amend, modify, terminate or waive any provision of
         Section 8.01 as the same applies to any Agent, or any other provision
         hereof as the same applies to the rights or obligations of any Agent,
         in each case without the consent of such Agent;

                  (vii) amend, modify, terminate or waive any provision of any
         Loan Document specifying the number or percentage of Lenders (or
         Lenders of any Class) required to waive, amend or modify any rights
         thereunder or make any determination to grant any consent thereunder
         without the written consent of each Lender (or each Lender of such
         Class, as the case may be);

                  (viii) amend, modify, terminate or waive the manner of
         application of any optional or mandatory prepayments of Loans to the
         remaining amortization payments of the Term B Loans without the written
         consent of Term B Lenders holding more than 50% of the outstanding Term
         B Loans;

                  (ix) expressly amend, modify, supplement or waive any
         condition precedent in Section 4.02 to any Revolving Credit Borrowing
         without the written consent of the Requisite Revolving Lenders; or

                  (x) increase the maximum duration of Interest Periods
         hereunder without the consent of all Lenders.

                  (e) If, in connection with any proposed change, waiver,
discharge or termination of or to any of the provisions of this Agreement (other
than as contemplated by Section 10.08(d)(i), (ii), (v) and (vi) above), the
consent of the Requisite Lenders is obtained but the consent of one or more of
such other Lenders whose consent is required is not obtained, then the Borrower
shall have the right, so long as all Non-Consenting Lenders whose individual
consent is required are treated as described in either

                                     -105-
<PAGE>

clause (i) or (ii) below, to either (i) replace each such Non-Consenting Lender
or Lenders (or, at the option of the Borrower if the respective Lender's consent
is required with respect to less than all Classes of Loans (or related
Commitments), to replace only the Commitments and/or Loans of the respective
Non-Consenting Lender that gave rise to the need to obtain such Lender's
individual consent) with one or more assignees pursuant to, and with the effect
of an assignment under, Section 2.20 so long as at the time of such replacement,
each such assignee consents to the proposed change, waiver, discharge or
termination or (ii) terminate such Non-Consenting Lender's Commitment (if such
Lender's consent is required as a result of its Commitment) and/or repay each
Class of outstanding Loans of such Lender that gave rise to the need to obtain
such Lender's consent and/or cash collateralize its LC Exposure in accordance
with this Agreement; provided that, unless the Commitments that are terminated
and Loans that are repaid pursuant to the preceding clause (ii) are immediately
replaced in full at such time through the addition of new Lenders or the
increase of the Commitments and/or outstanding Loans of existing Lenders (who in
each case must specifically consent thereto), then in the case of any action
pursuant to the preceding clause (ii), the Requisite Lenders (determined after
giving effect to the proposed action) shall specifically consent thereto. In
addition, any waiver, amendment or modification of this Agreement that by its
terms affects the rights or duties under this Agreement of the Revolving Lenders
(but not the Term B Lenders) or the Term B Lenders (but not the Revolving
Lenders) may be effected by an agreement or agreements in writing entered into
by the Borrower and the requisite percentage in interest of the affected Class
of Lenders that would be required to consent thereto under this Section 10.08 if
such Class of Lenders were the only Class of Lenders hereunder at the time.

                  (f) Without the consent of any other Person, the Loan Parties
and the Administrative Agent and/or Collateral Agent may (in their respective
sole discretion, or shall, to the extent required by any Loan Document) enter
into any amendment, modification or waiver of any Loan Document, or enter into
any new agreement or instrument, to effect the granting, perfection, protection,
expansion or enhancement of any security interest in any Collateral or
additional property to become Collateral for the benefit of the Secured Parties,
or as required by local law to give effect to, or protect any security interest
for the benefit of the Secured Parties, in any property or so that the security
interests therein comply with applicable law.

                  (g) Subject to Section 10.08(c)(ix), (A) any Subsidiary Loan
Party shall be released from its obligations under the Loan Documents if such
Subsidiary Loan Party is the subject of a sale, transfer, lease or disposition
permitted by this Agreement or if such Subsidiary Loan Party becomes an Inactive
Subsidiary, (B) if any property or other asset of any Loan Party constituting
Collateral is sold or otherwise disposed in a transaction permitted by the terms
of this Agreement (other than to a Loan Party or any of its Domestic
Subsidiaries, except pursuant to Section 6.05(ix)), any Liens on such property
or assets created under the Security Documents shall be released and such
property or assets shall no longer constitute Collateral hereunder or thereunder
for so long as not owned by a Loan Party and (C) any Lien under the Security
Documents on Intellectual Property transferred to the IP Subsidiary shall be
released for so long as owned by the IP Subsidiary.

                  (h) Without the consent of the Co-Documentation Agents, the
Syndication Agent, the Joint Lead Arrangers or of any Lender, the Loan Parties
and the Administrative Agent and or the Collateral Agent may (in their
respective sole discretion, or shall, to the extent required by any Loan
Document) enter into any amendment, modification or waiver of any Loan Document,
or enter into any new agreement or instrument, to effect the granting,
perfection, protection, expansion or enhancement of any security interest in any
Collateral or additional Property to become Collateral for the benefit of the
Secured Parties, or as required by local law to give effect to, or protect any
security interest for the benefit of the Secured Parties, in any Property or so
that the security interests therein comply with applicable law.

                                     -106-
<PAGE>

                  SECTION 10.09. Interest Rate Limitation. Notwithstanding
anything herein to the contrary, if at any time the interest rate applicable to
any Loan, together with all fees, charges and other amounts which are treated as
interest on such Loan under applicable law (collectively the "Charges"), shall
exceed the maximum lawful rate (the "Maximum Rate") which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan or
participation in accordance with applicable law, the rate of interest payable in
respect of such Loan or participation hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the
extent lawful, the interest and Charges that would have been payable in respect
of such Loan or participation but were not payable as a result of the operation
of this Section shall be cumulated and the interest and Charges payable to such
Lender in respect of other Loans or participations or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

                  SECTION 10.10. Entire Agreement. This Agreement and the other
Loan Documents constitute the entire contract between the parties relative to
the subject matter hereof. Any previous agreement among the parties with respect
to the subject matter hereof is superseded by this Agreement and the other Loan
Documents; provided that any letter agreement relating to the subject matter
hereof between the Borrower and a Lender shall remain effective in accordance
with its terms. Nothing in this Agreement or in the other Loan Documents,
expressed or implied, is intended to confer upon any party other than the
parties hereto and thereto any rights, remedies, obligations or liabilities
under or by reason of this Agreement or the other Loan Documents.

                  SECTION 10.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10.11.

                  SECTION 10.12. Severability. In the event any one or more of
the provisions contained in this Agreement or in any other Loan Document should
be held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein and therein
shall not in any way be affected or impaired thereby. The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

                  SECTION 10.13. Counterparts. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original but all of which when taken together shall
constitute a single contract, and shall become effective as provided in Section
10.03. Delivery of an executed signature page to this Agreement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart
of this Agreement.

                  SECTION 10.14. Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not
part of this Agreement and are not to affect the construction of, or to be taken
into consideration in interpreting, this Agreement.

                                     -107-
<PAGE>

                  SECTION 10.15. Jurisdiction; Consent to Service of Process.
(a) The Borrower hereby irrevocably and unconditionally submits, for itself and
its property, to the nonexclusive jurisdiction of any New York State court or
Federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or the other Loan Documents, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent
permitted by law, in such Federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement shall affect any right that the
Administrative Agent, the Collateral Agent, the Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or
the other Loan Documents against the Borrower or its properties in the courts of
any jurisdiction.

                  (b) The Borrower hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement or the other
Loan Documents in any New York State or Federal court referred to in paragraph
(a) of this Section. Each of the parties hereto hereby irrevocably waives, to
the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

                  (c) Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 10.01. Nothing
in this Agreement or any other Loan Document will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

                  SECTION 10.16. Confidentiality. (a) The Loan Parties, the
Lenders, the Administrative Agent and the Syndication Agent hereby agree that
each of the Loan Parties, the Lenders, the Administrative Agent and the
Syndication Agent and each of their respective officers, directors, employees,
agents, accountants, attorneys and other advisors are, and have been from the
commencement of discussions with respect to the facilities established by this
Agreement (the "Facilities"), permitted to disclose to any and all Persons,
without limitation of any kind, the structure and "tax aspects" (as such terms
are used in Code Sections 6011, 6111 and 6112 and the regulations promulgated
thereunder) of the Facilities, and all materials of any kind (including opinions
or other tax analyses) that are or have been provided to the Loan Parties, such
Lender, the Administrative Agent or the Syndication Agent related to such
structure and tax aspects. In this regard, each of the Loan Parties, the
Lenders, the Administrative Agent and the Syndication Agent acknowledges and
agrees that its disclosure of the structure or tax aspects of the Facilities is
not limited in any way by an express or implied understanding or agreement, oral
or written (whether or not such understanding or agreement is legally binding).
Furthermore, each of the Loan Parties, the Lenders, the Administrative Agent and
the Syndication Agent acknowledges and agrees that it does not know or have
reason to know that its use or disclosure of information relating to the
structure or tax aspects of the Facilities is limited in any other manner (such
as where the Facilities are claimed to be proprietary or exclusive) for the
benefit of any other Person. To the extent that disclosure of the structure or
tax aspects of the Facilities by the Loan Parties, the Administrative Agent, the
Syndication Agent or the Lenders is limited by any existing agreement between
the Loan Parties, the Administrative Agent, the Syndication Agent or the
Lenders, such limitation is agreed to be void ab initio and such agreement is
hereby amended to permit disclosure of the structure and tax aspects of the
Facilities as provided in this paragraph (a).

                  (b) Subject to paragraph (a) of this Section 10.16, none of
the Administrative Agent, the Syndication Agent or any Lender may disclose to
any Person any confidential, proprietary or non-

                                     -108-
<PAGE>

public information of the Loan Parties furnished to the Administrative Agent,
the Syndication Agent or the Lenders by the Loan Parties (such information being
referred to collectively herein as the "Loan Party Information"), except that
each of the Administrative Agent, the Syndication Agent and the Lenders may
disclose Loan Party Information (i) to its and its affiliates' employees,
officers, directors, agents, accountants, attorneys and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of
the confidential nature of such Loan Party Information and instructed to keep
such Loan Party Information confidential on substantially the same terms as
provided herein), (ii) to the extent requested by any regulatory authority,
(iii) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process, (iv) to any other party to this Agreement,
(v) in connection with the exercise of any remedies hereunder or under any other
Loan Document or any suit, action or proceeding relating to this Agreement or
any other Loan Document or the enforcement of rights hereunder or thereunder,
(vi) subject to an agreement containing provisions substantially the same as
those of this Section 10.16(b), to any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement, (vii) to the extent such Loan Party Information (A) is or
becomes generally available to the public on a nonconfidential basis other than
as a result of a breach of this Section 10.16(b) by the Administrative Agent,
the Syndication Agent or such Lender, or (B) is or becomes available to the
Administrative Agent, the Syndication Agent or such Lender on a nonconfidential
basis from a source other than the Loan Parties and (viii) with the consent of
the Loan Parties. Nothing in this provision shall imply that any party has
waived any privilege it may have with respect to advice it has received.

                  SECTION 10.17. Citigroup Direct Website Communications. (a)
Each Loan Party hereby agrees that it will provide to the Administrative Agent
all information, documents and other materials that it is obligated to furnish
to the Administrative Agent pursuant to the Loan Documents, including, without
limitation, all notices, requests, financial statements, financial and other
reports, certificates and other information material, but excluding any such
communication that (i) relates to a request for a new, or a conversion of an
existing, Borrowing or other extension of credit (including any election of an
interest rate or interest period relating thereto), (ii) relates to the payment
of any principal or other amount due under this Agreement prior to the scheduled
date therefore, (iii) provides notice of any Default or Event of Default under
this Agreement or (iv) is required to be delivered to satisfy any condition
precedent to the effectiveness of this Agreement and/or any borrowing or other
extension of credit hereunder (all such non-excluded communications being
referred to herein collectively as "Communications"), by transmitting the
Communications in an electronic/soft medium in a format acceptable to the
Administrative Agent to oploanswebadmin@citigroup.com. In addition, each Loan
Party agrees to continue to provide the Communications to the Administrative
Agent in the manner specified in the Loan Documents but only to the extent
requested by the Administrative Agent.

                  (b) Each Loan Party further agrees that the Administrative
Agent may make the Communications available to the Lenders by posting the
Communications on Intralinks, Fixed Income Direct or a substantially similar
electronic transmission systems (the "Platform"). Each Loan Party acknowledges
that the distribution of material through an electronic medium is not
necessarily secure and that there are confidentiality and other risks associated
with such distribution.

                  (c) THE PLATFORM IS PROVIDED "AS IS" AND "AS AVAILABLE". THE
AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF
THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM
LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY
KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF
THIRD-PARTY RIGHTS OR FREEDOM FROM VIRUSES

                                     -109-
<PAGE>

OR OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE
COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR
ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES,
AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, "AGENT PARTIES") HAVE ANY
LIABILITY TO THE LOAN PARTIES, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR
DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT,
CONTRACT OR OTHERWISE) ARISING OUT OF THE LOAN PARTIES' OR THE ADMINISTRATIVE
AGENT'S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE
EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL, NON-APPEALABLE
JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM
SUCH AGENT PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

                  (d) The Administrative Agent agrees that the receipt of the
Communications by the Agent at its e-mail address set forth above shall
constitute effective delivery of the Communications to the Administrative Agent
for purposes of the Loan Documents. Each Lender agrees that notice to it (as
provided in the next sentence) specifying that the Communications have been
posted to the Platform shall constitute effective delivery of the Communications
to such Lender for purposes of the Loan Documents. Each Lender agrees (i) to
notify the Administrative Agent in writing (including by electronic
communication) from time to time of such Lender's e-mail address to which the
foregoing notice may be sent by electronic transmission and (ii) that the
foregoing notice may be sent to such e-mail address.

                  (e) Nothing herein shall prejudice the right of the
Administrative Agent or any Lender to give any notice or other communication
pursuant to any Loan Document in any other manner specified in such Loan
Document.

                  SECTION 10.18. Collateral Agent as Joint Creditor. Each of the
Loan Parties and each of the Lenders agree that the Collateral Agent shall be
the joint creditor (together with the relevant Lender) of each and every
obligation of the Loan Parties towards each of the Lenders under or in
connection with the Loan Documents, and that accordingly the Collateral Agent
will have its own independent right to demand performance by the Loan Parties of
those obligations. However, any discharge of any such obligation to the
Collateral Agent or the relevant Lender shall, to the same extent, discharge the
corresponding obligation owing to the other.

                  SECTION 10.19. Collateral Agent as Attorney-in-Fact Regarding
Foreign Collateral. Each Lender hereby makes, constitutes and appoints the
Collateral Agent the true and lawful attorney-in-fact of such Lender, with full
power and authority, for, on behalf of and in the name, place and stead of the
Lender, to execute any and all documents on its behalf relating to the creation
and perfection of interests in foreign Collateral, such power of attorney to be
revocable immediately upon notice to the Collateral Agent.

                            [Signature Pages Follow]

                                     -110-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of the
day and year first above written.(1)

                                         SEMINIS VEGETABLE SEEDS, INC.,
                                            as Borrower

                                         By: ___________________________________
                                             Name:
                                             Title:

------------------
(1)      Signatures to be conformed after effectiveness of Amendment No. 1.

                                      S-1
<PAGE>

                                         SEMINIS, INC.,
                                            as Parent Guarantor

                                         By: ___________________________________
                                             Name:
                                             Title:

                                      S-2
<PAGE>

                                   CITICORP NORTH AMERICA, INC.,
                                     as Administrative Agent and Lender

                                   By: _________________________________________
                                       Name:  John W. Peruzzi
                                       Title: Vice President

                                   CITIGROUP GLOBAL MARKETS INC.,
                                     as Joint Lead Arranger and Joint Bookrunner

                                   By: _________________________________________
                                       Name:  John W. Peruzzi
                                       Title: Director

                                      S-3
<PAGE>

                                   HARRIS TRUST AND SAVINGS BANK,
                                     as Joint Lead Arranger, Joint Bookrunner,
                                     Syndication Agent and Lender

                                   By: _________________________________________
                                       Name:
                                       Title:

                                      S-4
<PAGE>

                                   CIBC WORLD MARKETS CORP.,
                                     as Co-Documentation Agent

                                   By: _________________________________________
                                       Name:
                                       Title:

                                   CIBC INC.,
                                     as Lender

                                   By: _________________________________________
                                       Name:
                                       Title:

                                      S-5
<PAGE>

                                   COOPERATIEVE CENTRALE
                                     RAIFFEISEN-BOERENLEENBANK B.A.,
                                     "RABOBANK INTERNATIONAL",
                                     NEW YORK BRANCH,
                                     as Co-Documentation Agent and as Lender

                                   By: _________________________________________
                                       Name:
                                       Title:

                                   By: _________________________________________
                                       Name:
                                       Title:

                                      S-6
<PAGE>

                                   UNION BANK OF CALIFORNIA, N.A., as Lender

                                   By: _________________________________________
                                       Name:
                                       Title:

                                      S-7
<PAGE>

                                   [LENDER], as Lender

                                   By: _________________________________________
                                       Name:
                                       Title:

                                      S-8

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