Document:

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                                                                     EXHIBIT 4.1

                       STOCK & ASSET PURCHASE AGREEMENT

     This STOCK & ASSET PURCHASE AGREEMENT (this "AGREEMENT"), dated August 13,
2001, by and among IMPERIAL SUGAR COMPANY, a Texas corporation ("IMPERIAL"),
SAVANNAH FOODS & INDUSTRIES, INC., a Delaware corporation ("SFI"), MICHIGAN
SUGAR COMPANY, INC., a Michigan corporation (the "COMPANY"), RAGUS HOLDINGS,
INC., a Delaware corporation ("RAGUS"), and MICHIGAN SUGAR BEET GROWERS, INC., a
Michigan Agricultural Cooperative ("BUYER").

                                  WITNESSETH:

     WHEREAS, Imperial owns all of the issued and outstanding capital stock of
SFI, and  SFI owns, or will own at closing, all of the issued and outstanding
capital stock of the Company and of Great Lakes Sugar Company, an Ohio
corporation ("GREAT LAKES"); and

     WHEREAS, Imperial owns all of the issued and outstanding capital stock of
Ragus, and Ragus owns certain intellectual property which is licensed to and
used in the operations of the Company; and

     WHEREAS, Imperial, Ragus, SFI, and the Company are debtors in cases
instituted under Chapter 11 of the Bankruptcy Code (as hereinafter defined),
which have cases numbers as follows:  Imperial, 01-0143; Ragus, 01-0166; SFI,
01-0167; and the Company, 01-0164 (together the "CASES"), and are pending before
the Court (as hereinafter defined);

     WHEREAS, SFI desires to sell to Buyer all of the issued and outstanding
capital stock of the Company, and Buyer desires to purchase all of the issued
and outstanding capital stock of the Company (the "CAPITAL STOCK"), upon the
terms and subject to the conditions set forth herein (hereinafter, such stock
purchase is sometimes referred to as the "STOCK ACQUISITION"); and

     WHEREAS, in connection with and after said Stock Acquisition, Ragus desires
to sell to Buyer certain intellectual property licensed to and used in the
operations of the Company, and Buyer desires to purchase said property (the
"RAGUS ASSETS"), upon the terms and subject to the conditions set forth herein
(hereinafter, such purchase is sometimes referred to as the "RAGUS ASSETS
ACQUISITION"); and

     WHEREAS, at or before closing, SFI shall cause all of the issued and
outstanding stock of Great Lakes (the "GREAT LAKES STOCK") and now owned by the
Company to be transferred from the Company to SFI, so that the Great Lakes Stock
shall not be owned by the Company, but shall be owned by SFI, at the time of the
closing of the Stock Acquisition; and

     WHEREAS, in connection with and after said Stock Acquisition, SFI desires
to sell or cause to be sold to Buyer the Great Lakes Stock, and Buyer desires to
purchase the Great Lakes Stock, upon the terms and subject to the conditions set
forth herein (hereinafter, such stock purchase is sometimes referred to as the
"GREAT LAKES STOCK ACQUISITION"); and

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     WHEREAS, in connection with the purchases and sales contemplated hereby,
the Buyer has entered into certain ancillary agreements with Imperial and/or
certain subsidiaries of Imperial concerning the post-closing operations of the
Company, all on the terms and conditions as set forth hereinafter.

     NOW, THEREFORE, the parties hereto hereby agree as follows:

                                   ARTICLE 1

                                  DEFINITIONS

     In addition to terms used and otherwise defined herein, as used in this
Agreement (including the Schedules and Exhibits hereto), the following
definitions shall apply:

     1.01 "AFFILIATE" of a specified Person means a Person that directly or
indirectly controls or is controlled by, or is under common control with, the
Person specified.

     1.02 "ANCILLARY AGREEMENTS" means the Marketing Agreement attached hereto
as Exhibit A; the Facility Lease Agreement attached hereto as Exhibit B; and,
the Factories Management Agreement attached hereto as Exhibit C.

     1.03 "BANKRUPTCY CODE" shall mean Title 11 of the United States Code,
(S)(S) 101, et seq., as amended and in effect on the Petition Date.

     1.04 "BASE INVENTORY AMOUNT" means $_______________.

     1.05 "BEET PROCESSING FACILITIES" means the sugarbeet processing facilities
located in Caro, Carrollton, Croswell, and Sebewaing, Michigan.

     1.06 "BUSINESS" means the business conducted by the Company immediately
prior to the Closing relating to the processing of sugar beets and the
manufacturing of sugar and related by-products.

     1.07 "BUSINESS KNOW-HOW" means manufacturing and other know-how, trade
secrets, formulas, processes, Product formulations and specifications,
ingredient lists, packaging and labeling specifications, business information,
including customer lists, and all books and records relating to any of the
foregoing.  Business Know-How shall not include the Ragus Assets, or any
intellectual property associated therewith.  Business Know-How shall not include
a method of processing water devised by the Company, "CARO WATER PROCESSING
PROCESS" (See Schedule 8.3).

     1.08 "CODE" means the Internal Revenue Code of 1986, as amended, and any
reference to any particular Code provision shall be interpreted to include any
revision of or successor to such provision regardless of how numbered or
classified.

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     1.09 "COURT" shall mean the United States District Court for the District
of Delaware having jurisdiction over the Cases and, to the extent of any
reference under Section 157, Title 28, United States Code, the unit of such
District Court constituted under Section 151, Title 28, United States Code.

     1.10 "FINAL ORDER" shall mean (i) an order of the Court as to which the
time to appeal, petition for certiorari or move for reargument or rehearing has
expired and as to which no appeal, petition for certiorari or other proceedings
for reargument or rehearing shall then be pending, or (ii) if an appeal, write
of certiorari, reargument or rehearing thereof has been filed or sought, such
order  of the Court shall have been affirmed by the highest court to which such
order was appealed, or certiorari shall have been denied or reargument or
rehearing shall have been denied or resulted in no modification of such order,
and the time to take any further appeal, petition for certiorari or move for
reargument or rehearing shall have expired; provided that the possibility that a
motion under Rule 59 or Rule 60 of the Federal Rules of Civil Procedure, or any
analogous rule under the Bankruptcy Rules, may be filed with respect to such
order shall not cause such order not to be a Final Order.

     1.11 "INTERIM ORDER" shall mean a order of the Court to be entered in the
Cases in substantially similar  form as attached hereto as Exhibit D.

     1.12 "INVENTORY" means, as of any date, all refined sugar and by-products
of the sugar manufacturing process held for sale, work in process, product
specific raw materials, supplies and ingredients, packaging materials and
labels, in each case that are held or used exclusively in connection with the
Business as of such date.  Inventory shall not include any finished Products
inventory as of the date of Closing, nor shall it include any Products produced
during the 2000 processing campaign

     1.13 "INVENTORY AMOUNT" means the total book value (as defined in
accordance with General Accounting Principles) of the Inventory as of the close
of business on the Closing Date calculated in accordance with Schedule 1.13.

     1.14 "LIABILITY" means any liability, obligation, debt, undertaking or
commitment of any nature, whether known or unknown, accrued, absolute,
contingent or otherwise, and whether due or to become due.

     1.15 "PERSON" means any individual, corporation, partnership, limited
liability company, business trust, joint stock company, trust unincorporated
organization, joint venture, firm or other entity, or a government or any
political subdivision or agency, department or instrumentality thereof.

     1.16 "PETITION DATE" shall mean January 16, 2001, the date on which the
Cases were commenced in the Court.

     1.17 "PRODUCTS" means the products identified on Schedule 1.17 attached
hereto.

     1.18 "SALE ORDER" shall mean a Final Order of the Court which, among other
things,

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contains the provisions described in Section 9.9 and is otherwise in form and
substance reasonably satisfactory to Buyer and Seller.

     1.19 "SENIOR SECURED LENDERS" means the senior secured lenders of Imperial
and/or any of its Affiliates listed on attached Schedule 1.19.

     1.20 "TRADEMARKS" means any words, names, logos, symbols, designs or
devices or any combination thereof, whether or not registered, used to identify
and distinguish the Products from those manufactured or sold by others and to
indicate the source of the goods.  Trademarks shall not include the Ragus Assets
(as described in Schedule 4.1) or any intellectual property associated
therewith.

     1.21 "TRANSFER TAXES" means any tax, and all sales and use, excise, value
added, transfer, stamp, recording, documentary, registration, conveyancing or
similar taxes, duties or other expenses related to the transactions contemplated
by this Agreement.

                                   ARTICLE 2

                    PURCHASE AND SALE OF THE CAPITAL STOCK

     2.1  Purchase and Sale of Stock.  On the terms and subject to the
conditions of this Agreement and at the Closing, SFI shall sell, convey,
transfer and assign to Buyer, and Buyer shall purchase from SFI, the Capital
Stock.

     2.2  Consideration Paid at Closing.  At Closing, Buyer shall pay to SFI in
immediately available certified funds by federal reserve wire transfer the
"CLOSING DATE PURCHASE PRICE", which shall be (i) $55,000,000, plus (ii) a sum
equal to the "NET WORKING CAPITAL" as such term or phrase is defined in Section
7.2,which Closing Date Purchase Price shall be payable and subject to further
adjustment as set forth in Section 7.2.

     2.3  Consideration Paid After Closing.  After Closing, Buyer shall pay to
SFI, in immediately available certified funds by federal reserve wire transfer,
the following sums as follows: within sixty (60) days after the end of each of
the Company's fiscal years then ended (which year end is the 30th day of
September) a deferred obligation as a percentage of the "AGGREGATE NET SELLING
PRICE" (defined below) for the fiscal year of Buyer then ended as follows:

          2.3.1  One percent (1%) of the Aggregate Net Selling Price for the
fiscal year ended September 30, 2002;

          2.3.2  Two percent (2%) of the Aggregate Net Selling Price for the
fiscal year ended September 30, 2003;

          2.3.3  Three percent (3%) of the Aggregate Net Selling Price for the
fiscal year ended September 30, 2004; and

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          2.3.4  For  each fiscal year after 2004 , three percent (3%) of the
Aggregate Net Selling Price for the fiscal year ended September 30 of each year,
said amount due and payable 60 days after the close of each fiscal year ending
September 30, until the sum of Ten Million Dollars ($10,000,000), in the
aggregate, has been paid under this Section 2.3.

          2.3.5  The term or phrase "AGGREGATE NET SELLING PRICE" shall be
calculated in accordance with normal procedures of the Company as per the 2000
Grower Contract times the total volume of sugar as of the end of the fiscal
year.

     2.4  Interest on Consideration Paid After Closing.  Interest shall accrue
on the outstanding principal balance due to be paid after Closing pursuant to
Section 2.3 (initially, at Closing, the amount due is Ten Million Dollars
($10,000,000.00)) at the annual interest rate of nine percent (9%) per annum
from the date of Closing until the time as the entire amount due under Section
2.3 (Ten Million Dollars ($10,000,000.00) in the aggregate) has been paid in
full.  Accrued interest shall be due and payable annually on the same date a
payment is due under Section 2.3 and shall be paid in immediately available
certified funds by federal reserve wire transfer.

     2.5  Subordination to Buyer's Senior Debt; Security for Post-Closing
Covenants.

     SFI agrees that the payment of amounts due under Sections 2.3 and 2.4 shall
be subordinate only to "BUYER'S SENIOR DEBT" which is listed on attached
Schedule 2.5 and only as set forth below in this Section 2.5(a). Any payments
under Sections 2.3 and 2.4 not made on schedule due solely to the subordination
to the Buyer's Senior Debt shall be deferred and tacked on the end of the
payment schedule.  So long as Buyer is current in the payment of Buyer's Senior
Debt, whether through actual payment or through waiver of payment by the lender
or lenders, Buyer shall timely pay all payments due and payable under Sections
2.3 and 2.4 as the same become due and payable.  If the holder of any Buyer's
Senior Debt declares a default which is not remedied or waived in accordance
with the Buyer's Senior Debt instrument, then SFI agrees that, only for so long
as Buyer's Senior Debt shall remain in default, Buyer's payment of all payments
becoming due and payable under Sections 2.3 and 2.4 after the date of
acceleration of all of Buyer's Senior Debt shall be subordinate to Buyer's
payment of Buyer's Senior Debt and shall not be paid by Buyer until  the
business day following the payment, cancellation or other satisfaction of
Buyer's Senior Debt.

     2.6  Default Rate.  If any payment due and payable under Sections 2.3
and/or 2.4 is not paid on the date such payment is due and payable and such
nonpayment is not cured within  thirty days after written notice is provided to
Buyer by SFI, then such nonpayment shall constitute an event of default under
this Agreement, and interest shall accrue on the amount not paid timely at the
annual interest rate of twelve percent  (12%) per annum (THE "DEFAULT RATE")
from the date such payment was due and payable to the date such payment is
actually made.  In the event Buyer fails to make a payment due under Sections
2.3 and 2.4 that would, if made, cause a default under Buyer's Senior Debt
obligations, said failure to make a payment in those sole circumstances shall
not, for purposes of paragraphs 3.2 and 4.2 of this Agreement, be an event of
default, but such payment shall bear interest at the Default Rate from the date
such

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payment was otherwise due, subsequent to a period of thirty days to cure, until
the date payment is actually paid.

     2.7  Earnest Money Deposit.  Buyer shall pay to SFI a non-refundable
earnest money deposit of Five Hundred Thousand Dollars ($500,000) within thirty
(30) days after the execution of this Agreement by all parties hereto.  If
Closing occurs on or before March 1, 2002, the deposit shall be applied against
the portion of the purchase price due to be paid by Buyer to SFI at Closing
under Section 2.2.  If Closing does not occur on or before March 1, 2002, then
the earnest money deposit shall remain the property of SFI.

     2.8  Great Lakes Stock.  Notwithstanding anything to the contrary in this
Agreement, SFI shall cause all of the Great Lakes Stock now owned by the Company
to be transferred at or before closing from the Company to SFI, so that the
Great Lakes Stock shall not be owned by the Company at the time of the Closing
of the Stock Acquisition, but shall be owned by SFI.

                                   ARTICLE 3

                        USE OF THE GREAT LAKES ASSETS &
                   SALE OF THE GREAT LAKES STOCK POST-CLOSING

     3.1  Use of the Great Lakes Assets Post-Closing.  After Closing, Buyer
shall be allowed to utilize Great Lakes' facilities at Findlay, Ohio, and at
Fremont, Ohio, for the storage and handling of sugar of the Buyer pursuant to
the provisions of the Marketing Agreement on a non-exclusive basis as available
at through-put costs until the end of the term of the Marketing Agreement or
until the Great Lakes Stock is transferred to the Buyer as set forth in Section
3.2 below, whichever first occurs.  Upon and after such time as the Great Lakes
Stock is conveyed to the Buyer under Section 3.2 below, Imperial and its
Affiliates each shall have the same rights to use the facilities of Great Lakes
on the same terms and for the same purposes as the Buyer as set forth in the
Marketing Agreement until the expiration or termination of the Marketing
Agreement.

     3.2  Sale of the Great Lakes Stock Post-Closing.  On the tenth business day
after the date on which all amounts due and payable by Buyer to SFI under
Sections 2.3 and 2.4 are paid in full (the "GREAT LAKES STOCK SALE CLOSING
DATE"), SFI shall transfer, or shall cause the transfer of, good and marketable
title to the Great Lakes Stock to Buyer for the total consideration of One
Dollar ($1.00).  Should any payment due and payable under Sections 2.3 and/or
2.4 not be paid on the date such payment is due and payable and such payment is
not deferred under Section 2.5 or cured within thirty days after written notice
is provided to Buyer by SFI if not so deferred, then SFI shall have the right to
accelerate its remaining obligations under Sections 2.3 and 2.4.  In the event
Buyer does not pay in full the remaining obligation as it becomes due and
payable, SFI shall have no further obligation to transfer the Great Lakes stock
to Buyer.

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                                   ARTICLE 4

                 USE AND SALE OF THE RAGUS ASSETS POST-CLOSING

     4.1  Use of the Ragus Assets Post-Closing.  Effective upon the consummation
of the Closing on the Closing Date, Ragus hereby grants to Buyer for no
additional consideration an exclusive license to the Company to use the Ragus
Assets described on attached Schedule 4.1 in connection with the Company's
marketing, sale and distribution of the Company's products; provided, however,
that Ragus may cancel and revoke such license if any payment due and payable
under Sections 2.3 and/or 2.4 is not paid on the date such payment is due and
payable and is not deferred under section 2.5, and such nonpayment is not cured
within thirty  days after written notice is provided to Buyer by SFI.

     4.2  Sale of the Ragus Assets Post-Closing .  On the Great Lakes Closing
Sale Date, Ragus shall transfer good and marketable title to the Ragus Assets to
Buyer for the total consideration of One Dollar ($1.00). Should any payment due
and payable under Sections 2.3 and/or 2.4 not be paid on the date such payment
is due and payable and such payment is not deferred under Section 2.5 or cured
within thirty days after written notice is provided to Buyer by SFI if not so
deferred, then SFI shall have the right to accelerate its remaining obligation
under Sections 2.3 and 2.4.  In the event Buyer does not pay in full the
remaining obligation as it become due and payable, SFI shall have no further
obligation to transfer the Ragus Assets to Buyer.

     4.3  Allocation of Purchase Price.  The purchase price paid for the Ragus
Assets shall be as reasonably determined by Buyer. Neither Buyer nor SFI, nor
any Affiliate of either, unless required to do so by applicable law, shall
knowingly take any position (whether in financial statements, audits, tax
returns or otherwise) which is inconsistent with the allocation under this
Section 4.3.  Buyer and SFI shall exchange drafts of any information returns
required by Section 1060 of the Code, and any similar state statute that is
applicable, at least 60 days prior to filing such returns and shall discuss any
modification by the receiving party.

     4.4  No Liability Assumed in Connection with Sale of the Ragus Assets.
Buyer shall not assume any Liability associated with the business and operations
of Ragus.

                                   ARTICLE 5

                         OTHER POST-CLOSING AGREEMENTS

     5.1  Marketing.  Imperial and Buyer have entered into a Marketing
Agreement, attached as Exhibit A, under which Imperial agrees to handle sales
and marketing of all sugar for Buyer for a period of ten (10) years at a
marketing management fee and on the terms set forth in said agreement.  Said
Marketing Agreement shall operate separately and independently from this
Agreement, and shall survive any termination or expiration of this Agreement.

     5.2  By-Products.  As of the Closing date, Buyer shall retain ownership of
and shall be

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responsible for the sales and marketing of all by-products of the sugar refining
process commencing with the 2001 sugarbeet crop, subject to marketing contracts
which are in effect as of April 1, 2001, and subject to such marketing contracts
as the Buyer shall establish.

     5.3  Year 2000 Crop Payment / Repair and Maintenance.

          5.3.1  April, 2001 Payment under the Year 2000 Grower Contract:  Buyer
acknowledges that the Company has caused to be paid to each grower who
contracted with the Company for the 2000 sugarbeet crop a sum equal to Two and
One-Half Dollars ($2.50) per ton of such grower's sugarbeets.  Between now and
the date of Closing, the Company shall apply an amount equal to Two and One-Half
Dollars ($2.50) per ton of sugarbeets toward the "YEAR 2001 REPAIR AND
MAINTENANCE COSTS" (as described in Schedule V of the Facility Lease Agreement
attached as Exhibit B) incurred after March 22, 2001.  Buyer acknowledges,  on
behalf of the Buyer and no other person or entity, that the payment to growers
and the application of monies by the Company towards the Year 2001 Repair and
Maintenance Costs provided for in this Section 5.3.1 together constitute full
satisfaction of the Company's obligations for, or related to, the April, 2000
payment due or to become due under the "YEAR 2000 GROWER CONTRACT".  The "Year
2000 Grower Contract" as used herein is defined as the contracts entered into by
the Company and the growers for the purchase of sugar beets for processing at
the Company's facilities for the fiscal year 2000.

          5.3.2 October, 2001 Payment under the Year 2000 Grower Contract: The
Company shall apply an amount equal to Two and One-Half Dollars ($2.50) per ton
of sugarbeets toward the Year 2001 Repair and Maintenance Costs incurred after
March 2001, and Buyer acknowledges, on behalf of the Buyer and no other person
or entity, that this application of monies satisfy the Company's obligations
for, or related to, the October 2001 payment due or to become due under the Year
2000 Grower Contract.  In the event the Buyer is able to borrow funds equal in
an amount equal to the Two and One-Half Dollars ($2.50) per ton of sugarbeets
under the Year 2000 Grower Contract which is to be applied by the Company to the
Year 2001 Repair and Maintenance Costs, the proceeds from such loan may be paid
to the Company for application toward the Year 2001 Repair and Maintenance
costs, and the Company will then pay such Two and One-Half Dollars ($2.50) per
ton of sugarbeets directly to the growers under the Year 2000 Grower Contract.

          5.3.3 Repair and Maintenance Budget/Cap/Excess:  The Year 2001 Repair
and Maintenance Costs are currently budgeted not to exceed Eighteen Million
Dollars ($18,000,000).  The Company shall consult with Buyer regarding the
ongoing Year 2001 Repair and Maintenance budget.   The balance of the Year 2000
beet payment due to be paid by the Company under the 2000 Grower Contract shall
be applied by the Company toward the Year 2001 Repair and Maintenance Costs,
except that no more than one-third of such Year 2001 Repair and Maintenance
Costs shall be borne by the Company.  Any portion of the Year 2001 Repair and
Maintenance Costs exceeding the amounts applied by the Company shall be borne by
the Buyer but only up to a collective total of Eighteen Million Dollars

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($18,000,000).  Thereafter, any Year 2001 Repair and Maintenance Costs in excess
of Eighteen Million Dollars ($18,000,000) shall be borne by the Company.  Any
excess funds applied to the Year 2001 Repair and Maintenance Costs but not
required for Year 2001 Repair and Maintenance Costs shall be paid to the growers
and the Buyer pro rata based on the source of the funds. Any amounts applied by
the Company to Year 2001 Repair and Maintenance Costs may be recovered by the
Company as provided in Article 6 below.

                                   ARTICLE 6

            OPERATIONS OF THE COMPANY & GREAT LAKES PENDING CLOSING

     6.1  Operations by the Company Pending Closing. SFI shall cause the Company
to operate in keeping with its normal business practices until Closing, subject
to the conditions set forth in this Article 6 and elsewhere in this Agreement:

          6.1.1  The Company shall not be obligated to operate any one of the
Beet Processing Facilities at a projected operating level which would produce a
loss at normal operating levels and in keeping with past practices of the
Company; provided, however, that, prior to materially changing the operating
levels at a factory, the Company confers with the Buyer and provides ten (10)
day's notice to the Buyer and an opportunity to cover such loss.

          6.1.2  Operations during the period between March 22, 2001 and October
1, 2001 shall reflect the Repair and Maintenance and grower payments as set
forth in section 5.3 hereof provided that, if the Buyer does not close the
Proposed Transaction by February 28, 2002, Buyer shall reimburse to the Company
the amounts the Company applied to the Repair and Maintenance Costs as described
in section 5.3 no later than April 1, 2002.

          6.1.3  In the event Closing has not occurred by October 1, 2001, the
ownership of harvested beets and refined sugar and by-products shall be retained
by the Buyer.  The Company has leased certain assets of the Company to Buyer
upon the terms set forth in the Facility Lease Agreement, attached as Exhibit B,
which allows Buyer to place the sugar under CCC loans.  The Company, as agent
for Buyer, and in a manner set forth in the Factories Management Agreement,
attached as Exhibit C, has agreed to manage the assets and process and market
the sugar at the expense of Buyer together with a management fee of Four Dollars
($4.00) per ton of beets delivered, which expense and fee shall be withheld from
the proceeds of the sale of sugar before remitting the balance to the Buyer
provided, however, that the proceeds are deposited in a separate account as set
forth in the Marketing Agreement, Exhibit A.  There shall not be a separate
sales and marketing fee while a management fee due to the Company is applicable
under the Factories Management Agreement.  The Facility Lease Agreement,
Factories Management Agreement and Marketing Agreement shall become effective
upon approval by the Court and, upon approval, shall operate separately and
independently from this Agreement and shall survive any termination or
expiration of this Agreement.   The Buyer and Imperial have entered into a
Security Agreement and Assignment of Accounts (hereinafter "Security Agreement")
which has been incorporated into, and made a part of, the Factories Management
Agreement, the Marketing Agreement, and the Facility Lease as the first
addendums thereto.  The Security Agreement, under which the Buyer has agreed to
grant all of

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its rights to certain accounts receivables and inventory to secure Buyer's
obligations under the Factories Management Agreement, the Marketing Agreement,
and the Facility Lease, is attached hereto and made a part hereof as Exhibit E.

                                   ARTICLE 7

                       CLOSING OF SALE OF CAPITAL STOCK;
                      PRICE ADJUSTMENT; CLOSING CONDITIONS

     7.1  Closing.

          7.1.1  The closing (the "CLOSING") of the purchase of Capital Stock
shall be held at the offices of Michigan Sugar Company in Saginaw, Michigan, at
10:00 a.m., local time, August 30, 2001, or on the later to occur of (i) the
first Friday following the 45th day from date of approval of the Interim Order
in accordance with this Agreement or (ii) the first Friday following the 10th
day from the date of the Final Order in accordance with this Agreement, or, if
the conditions to Closing set forth in Section7.3 shall not have been satisfied
or waived by such date, on the third business day following satisfaction of such
conditions, or on such other date as the parties mutually agree, but not later
than February 28, 2002.  The date on which the Closing shall occur is
hereinafter referred to as the "CLOSING DATE," and the Closing shall be deemed
effective as of the close of business on the Closing Date.

          7.1.2   At the Closing, subject to and on the terms and conditions set
forth in this Agreement, Buyer shall deliver to SFI (a) by federal reserve wire
transfer to U.S. bank accounts designated in writing by SFI immediately
available funds in an aggregate amount equal to the Closing Date Purchase Price,
(b) certified copies of resolutions duly adopted by Buyer's board of directors
authorizing the execution, delivery and performance of this Agreement, the
Ancillary Agreements and the other agreements contemplated hereby, (c) a
certificate of the Secretary or an Assistant Secretary of Buyer as to the
incumbency of the officer(s) of Buyer (who shall not be such Secretary or
Assistant Secretary) executing this Agreement and the Ancillary Agreements and
(d) a short-form certificate of good standing of Buyer, certified by the
Secretary of State of Buyer's state of incorporation as of a date not more than
three business days prior to the Closing Date.

          7.1.3  At the Closing, subject to and on the terms and conditions set
forth in this Agreement, SFI shall deliver or cause to be delivered to Buyer (a)
such appropriately executed instruments of sale, assignment, transfer and
conveyance in form and substance reasonably satisfactory to Buyer evidencing and
effecting the sale and transfer to Buyer of the Capital Stock (it being,
understood,  however, that such instruments shall not require SFI, Imperial, any
affiliate or any other Person to make any additional substantive
representations, warranties or covenants, express or implied, not contained in
this Agreement) and such other documents (including duly executed Ancillary
Agreements) as are specifically required by this Agreement, (b) certified copies
of resolutions duly adopted by SFI's board of directors authorizing the
execution, delivery and performance of this Agreement, the Ancillary Agreements
and the other agreements contemplated hereby, (c) a certificate of the Secretary
or an Assistant Secretary of

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SFI as to the incumbency of the officer(s) of SFI (who shall not be such
Secretary or Assistant Secretary) executing this agreement and the Ancillary
Agreements and (d) a short-form certificate of good standing of SFI, certified
by the Secretary of State of the state of its incorporation as of a date not
more than three business days prior to the Closing Date.

          7.1.4  Except as provided in Section 12.7, at the Closing Date, SFI
shall, and shall cause the Company to, deliver possession to Buyer all of the
Company's tangible and intangible assets, except with respect to the Great Lakes
Excluded Assets and the Ragus Assets.   Prior to the Closing, except as
otherwise provided herein, SFI and Buyer shall agree on reasonable procedures to
transfer possession of said assets to Buyer at Closing, or with the prior
agreement of Buyer, as soon as practicable on or after the Closing.

     7.2  Purchase Price Adjustment - Post Closing.

          7.2.1  Within 25 days after the Closing Date, SFI shall prepare and
deliver to Buyer a statement (in its final and binding form, the "WORKING
CAPITAL STATEMENT") setting forth the "NET WORKING CAPITAL" of the Company,
which term or phrase is defined as that amount which is equal to the Inventory
Amount, plus the amount of other current assets to be transferred, minus the
amount of any current liabilities assumed.  In connection with the preparation
of the Working Capital Statement, SFI shall take and prepare a physical count of
the Inventory as of the close of business on the Closing Date.  SFI shall
provide Buyer with prior written notice reasonably in advance of SFI's taking
such physical count.  Representatives of Buyer shall be entitled to observe such
physical count.  During the 30 days immediately following Buyer's receipt of the
Working Capital Statement, Buyer shall be permitted to review the working papers
of SFI or its independent accountants relating to the Working Capital Statement.
The Working Capital Statement shall become final and binding upon the parties on
the 30th day following receipt thereof by Buyer unless Buyer gives written
Notice of Disagreement to SFI prior to such date.  Any Notice of Disagreement
shall specify in reasonable detail the nature and amount of any disagreement so
asserted.  If a timely Notice of Disagreement is received by SFI, then the
Working Capital Statement (as revised in accordance with clause (x) or (y)
below) shall become final and binding upon the parties on the earlier of (x) the
date the parties hereto resolve in writing any differences they have with
respect to any matter specified in the Notice of Disagreement or (y) the date
any matters properly in dispute are finally resolved in writing by the
Accounting Firm (as defined below).  During the 30 days immediately following
the delivery of a Notice of Disagreement, SFI and buyer shall seek in good faith
to resolve in writing any differences that they may have with respect to any
matter specified in the Notice of Disagreement.  During such period, SFI shall
have full access to the working papers of Buyer or its independent accountants
prepared in connection with Buyer's preparation of the Notice of Disagreement.
At the end of such 30-day period, SFI and Buyer shall submit to an accounting
firm agreed to by SFI and Buyer (the "ACCOUNTING FIRM") for review and
resolution any and all matters which remain in dispute and which were properly
included in the Notice of Disagreement, and the Accounting Firm shall make a
final determination of the Inventory Amount, which determination shall be
binding on the parties (it being understood, however, that the Accounting Firm
shall act as an arbitrator to determine, based solely on presentations by Buyer
and SFI (and not by independent review), only those matters which remain in
dispute and which were properly included in the Notice of Disagreement).  The
Working Capital Statement

                                       11
<PAGE>

shall become final and binding on Buyer and SFI on the date the Accounting Firm
delivers it final resolution to the parties (which final resolution shall be
delivered as soon as practicable, but in no event more than 30 days, following
the selection of the Accounting Firm).

          7.2.2  The Closing Date Purchase Price shall be subject to adjustment,
after Closing, as following:

          7.2.2.1   The Closing Date Purchase Price shall be either increased by
the amount by which the Working Capital Amount, as determined in accordance with
Section 7.2.1, exceeds the Base Working Capital Amount or decreased by the
amount by which the Base Working Capital Amount exceeds the Working Capital
Amount, as determinated in accordance with Section 7.2.1 provided that Buyer
shall not assume trade debt or pay for Working Capital in excess of eighty
percent (80%) of the balance of current assets of the Company at Closing.

          7.2.2.2   The Closing Date Purchase Price, as adjusted in accordance
with this Section 7.2.2, is referred to as, the "FINAL PURCHASE PRICE."

          7.2.3  If the Final Purchase Price is more than the Closing Date
Purchase Price, within five business days after the Working Capital Statement
becomes final and binding on the parties, Buyer shall make payment to SFI by
wire transfer in immediately available funds in the amount of such difference,
together with interest thereon at the prime rate as then in effect at Citibank
(the "APPLICABLE RATE") calculated on the basis of the number of days elapsed by
the Closing Date to the payment date.

          7.2.4  If the Final Purchase Price is less than the Closing Date
Purchase Price, within five business days after both the Working Capital
Statement becomes final and binding on the parties, Buyer shall be entitled to
receive from the SFI the amount of such difference, together with interest
thereon at the Applicable Rate.

          7.2.5  The fees and expenses of the Accounting Firm pursuant to this
Section 7.2 shall be borne 50% by Buyer and 50% by SFI.

     7.3  Conditions to Closing.

          7.3.1  Buyer's Obligation.  The obligation of Buyer to purchase and
pay for the Capital Stock is subject to the satisfaction (or waiver by Buyer) as
of the Closing of the following conditions:

          7.3.1.1   The representations and warranties of SFI made in this
Agreement shall be true and correct as of the date hereof and, in all material
respects, as though made on and as of the Closing Date, except for
representations and warranties that speak as of a specific date or time (which
need only be true and correct as of such date or time), and SFI shall have
performed or complied with all obligations and covenants required by this
Agreement to be performed or complied with by SFI by the time of the Closing,
and SFI shall have delivered to Buyer a certificate dated the Closing Date and
signed by an officer of SFI confirming the foregoing;

                                       12
<PAGE>

          7.3.1.2   No injunction or order of any court or administrative agency
of competent jurisdiction shall be threatened, pending or in effect as of the
Closing which (a) restrains or prohibits the purchase and sale of the Stock or
the exercise by Buyer of control over the Assets, (b) restricts or would
restrict Buyer in the operation of the Business or any Business operated by
Buyer as of such date as a result of the Closing, (c) seeks to invalidate or
render unenforceable any  material provision of this Agreement or any of the
Ancillary Agreements, or (d) imposes or seeks to impose a material fine or other
damage on Buyer as a result of the transactions contemplated by this Agreement,
and there shall not be any action taken, or any statute, rule, regulation,
judgment, order or injunction enacted, entered, enforced, promulgated, issued or
deemed applicable to the transactions contemplated hereby by any federal, state
or foreign court, government or governmental authority or agency, which would
reasonably be expected to result, directly or indirectly, in any of the
foregoing;

          7.3.1.3   SFI shall have obtained, or caused to be obtained, the
Required Consents  (as defined in Section 12.1.1) to the Imperial Contracts, the
SFI Contracts and the Company Contracts required for the closing of the sale and
transfer of the Capital Stock (as contemplated by Section 12.1.1);

          7.3.1.4     SFI shall have, or shall cause to be, removed, satisfied,
released, discharged and otherwise extinguished, with no liability to Buyer or
its affiliates, all mortgages, liens, security interests or other encumbrances
of any nature on or affecting the Capital Stock and the Business and the assets,
including any lien in favor of Harris Trust but excluding Permitted Liens, and
SFI shall provide Buyer with such evidence of such removal satisfaction, release
or extinguishment as Buyer may reasonably request;

          7.3.1.5  SFI shall have executed and delivered to Buyer the Ancillary
Agreements and the other certificates, documents and instruments required to be
delivered by SFI pursuant to Section 7.1.3;

          7.3.1.6  The Sale Order shall have been entered, and neither the
Interim Order nor the Sale Order shall have been modified, amended, dissolved,
revoked or rescinded in any respect;

          7.3.1.7  Buyer shall have obtained commitments for financing
satisfactory to complete the proposed Transaction;

          7.3.1.8  Buyer shall have obtained commitments for the growing of
sugar beets and for grower equity contributions sufficient to complete the
purchase no later than September 15, 2001;

          7.3.1.9  All necessary permits, regulatory approvals and consents
shall have been obtained; and

          7.3.1.10  Buyer shall be reasonably satisfied with the results of due
diligence investigations (including financial, operational, environmental and
title matters)

                                       13
<PAGE>

relating to the Capital Stock and the Business to be acquired, and the Great
Lakes Assets and the Ragus Assets acquired in the future, all said due diligence
to be completed no later than thirty (30) days prior to the date of Closing.

     7.3.2  SFI's Obligation.  The obligation of SFI to sell and deliver or
cause to be sold and delivered the Capital Stock to Buyer is subject to the
satisfaction (or waiver by SFI) as of the Closing of the following conditions:

          7.3.2.1  The representations and warranties of Buyer made in this
Agreement shall be true and correct as of the date hereof and, in all material
respects, on and as of the Closing Date, as though made on and as of the Closing
Date, except for representations and warranties that speak as of a specific date
or time (which need only be true and correct as of such date or time), and Buyer
shall have performed or complied with the obligations and covenants required by
this Agreement to be performed or complied with by Buyer by the time of the
Closing; and Buyer shall have delivered to SFI a certificate dated the Closing
Date and signed by an officer of Buyer confirming the foregoing;

          7.3.2.2   No injunction or order of any court or administrative agency
of competent jurisdiction shall be in threatened, pending or effect as of the
Closing which (a) restrains or prohibits the purchase and sale of the Capital
Stock, (b) seeks to invalidate or render unenforceable any material provision of
this Agreement or any of the Ancillary Agreements or (c) imposes or seeks to
impose a material fine or other damage on SFI as a result of the transactions
contemplated by this Agreement, and there shall not be any action taken, or any
statute, rule, regulation, judgment, order or injunction enacted, entered,
enforced, promulgated, issued or deemed applicable to the transactions
contemplated hereby by any federal, state or foreign court, government or
governmental authority or agency, which would reasonably be expected to result,
directly or indirectly, in an of the foregoing;

          7.3.2.3  Buyer shall have executed and delivered to SFI the Ancillary
Agreements and the other certificates, documents and instruments required to be
delivered by Buyer pursuant to Section 7.1.2; and

          7.3.2.4  The Sale Order shall have been entered, and neither the
Interim Order nor the Sale Order shall have been modified, amended, dissolved,
revoked or rescinded in any respect; provided that, for purposes of this Section
7.3.2.4, the Sale Order need not be a Final Order.

     7.4  Conditions to the Transfer of the Great Lakes Stock.

          7.4.1  Conditions to Each Party's Obligations.  Neither SFI nor Buyer
shall be subject on the Great Lakes Stock Sale Closing Date  to any order,
decree or injunction of a court of competent jurisdiction that enjoins or
prohibits the consummation of the transactions contemplated by this Agreement,
nor shall there be pending a suit or proceeding by any Governmental Authority
that seeks injunctive or other relief in connection with such transactions.

                                       14
<PAGE>

          7.4.2  Conditions to the Obligations of Buyer.  The obligations of
Buyer to purchase the Great Lakes Stock as contemplated hereby shall be subject
to the following conditions, any one or more of which may be waived by Buyer:
(a) all representations and warranties of SFI contained in Article 8 with
respect to Great Lakes shall be true and correct in all material respects as of
the Great Lakes Stock Sale Closing Date  as though made as of such date, except
for matters that do not individually or in the aggregate have a material adverse
effect on the business of the Great Lakes; (b) SFI shall have performed and
complied in all material respects with all covenants and agreements contained in
this Agreement required to be performed and complied with by SFI with respect to
the sale and transfer of the Great Lake Stock at or prior to the Closing Date;
and (c) to the extent the approval and/or release of any lien or security
interest of one or more of SFI's lenders is required under applicable loan
documents to permit SFI to effectuate the transfer contemplated hereby at
Closing without a breach or default hereof or hereunder, each approval or
release shall have been obtained prior to Closing.

          7.4.3  Conditions to the Obligations of SFI.  The obligations of SFI
to effect the transactions contemplated hereby shall be subject to the following
conditions, any one or more of which may be waived by SFI: (a) all
representations and warranties of Buyer contained in this Agreement shall be
true and correct in all material respects as of the Great Lakes Stock Sale
Closing Date  as though made as of such date, except for matters that do not
materially impair the ability of Buyer to perform its obligations under this
Agreement; and (b) Buyer shall have performed and complied in all material
respects with all covenants and agreements contained in this Agreement required
to be performed and complied with by it at or prior to the Great Lakes Stock
Sale Closing Date .

     7.5  Conditions to the Transfer of the Ragus Assets.

          7.5.1  Conditions to Each Party's Obligations.  Neither Ragus nor
Buyer shall be subject on the Great Lakes Stock Sale Closing Date  to any order,
decree or injunction of a court of competent jurisdiction that enjoins or
prohibits the consummation of the transactions contemplated by this Agreement,
nor shall there be pending a suit or proceeding by any Governmental Authority
that seeks injunctive or other relief in connection with such transactions.

          7.5.2  Conditions to the Obligations of Buyer.  The obligations of
Buyer to purchase the Ragus Assets contemplated hereby shall be subject to the
following conditions, any one or more of which may be waived by Buyer: (a) all
representations and warranties of Ragus contained in Articles 8 with respect to
the Ragus Assets shall be true and correct in all material respects as of the
Great Lakes Stock Sale Closing Date  as though made as of such date, except for
matters that do not individually or in the aggregate have a material adverse
effect on the Ragus Assets; and (b) Ragus shall have performed and complied in
all material respects with all covenants and agreements contained in this
Agreement required to be performed and complied with by Ragus with respect to
the sale and transfer of the Ragus Assets at or prior to the Closing Date.

          7.5.3  Conditions to the Obligations of Ragus.  The obligations of
Ragus to effect the transactions contemplated hereby shall be subject to the
following conditions, any one

                                       15
<PAGE>

or more of which may be waived by SFI: (a) all representations and warranties of
Buyer contained in this Agreement shall be true and correct in all material
respects as of the Great Lakes Stock Sale Closing Date as though made as of such
date, except for matters that do not materially impair the ability of Buyer to
perform its obligations under this Agreement; and (b) Buyer shall have performed
and complied in all material respects with all covenants and agreements
contained in this Agreement required to be performed and complied with by it at
or prior to the Great Lakes Stock Sale Closing Date.

                                   ARTICLE 8

                         REPRESENTATIONS AND WARRANTIES

          8.1  Authority; No Conflicts.

          8.1.1  Imperial represents and warrants that (i) Imperial is a
corporation duly organized, validly existing and in good standing under the laws
of the state of its incorporation; (ii) subject to approval of the Court, the
Board of Directors of Imperial, and the Senior Secured Lenders, Imperial has all
requisite corporate power and authority to enter into this Agreement and the
Ancillary Agreements to which it is a party and to consummate the transactions
contemplated hereby and thereby; (iii) Imperial has all requisite corporate
power and authority and all authorizations, licenses, permits and certificates
necessary to carry on its business now being conducted and to own, lease and
operate its assets; (iv) all requisite corporate action required to be taken by
Imperial to authorize the execution, delivery and performance of this Agreement
and the Ancillary Agreements to which it is a party and the consummation of the
transactions contemplated hereby and thereby has been taken; (v) all requisite
corporate action required to be taken by Imperial to authorize the performance
of this Agreement and the consummation of the transactions contemplated hereby
has been taken; (vi) Imperial has duly executed and delivered this Agreement and
the Ancillary Agreements to which it is a party; (vii) subject to the approval
of the Court, the Board of Directors of Imperial, and the Senior Secured
Lenders, this Agreement and the Ancillary Agreements to which Imperial is a
party constitute, or will constitute, as applicable, valid and binding
obligations of Imperial, enforceable against it in accordance with their
respective terms; and (viii) the execution and delivery by Imperial of this
Agreement and the Ancillary Agreements to which it is a party do not, and the
consummation by Imperial of the transactions contemplated hereby and thereby and
compliance by Imperial with the terms hereof and thereof will not, conflict
with, or result in any violation of or default under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to loss of a
benefit under, or result in the creation of any lien, claim, encumbrance,
security interest, option, charge or restriction of any kind upon any of the
assets or stock being sold hereunder (including but not limited to the Capital
Stock) under, or require any consent, authorization, approval or action by or
notice to any third party or court (except for the Bankruptcy Court) or
governmental body under (a) any provision of the articles of incorporation,
bylaws or other organization documents of  Imperial, (b) any note, bond,
mortgage, indenture, deed of trust, license, lease, contract, commitment,
agreement or arrangement to which Imperial may be a party or by which Imperial
or its assets are bound or affected, other than those contracts set forth in
Schedule 8.1.1 with respect to which the approval, exemption, authorization or
consent of a third party is

                                       16
<PAGE>

required (the "IMPERIAL CONTRACTS"), or (c) any judgment, order or decree or any
statute, law, ordinance, rule or regulation applicable to Imperial, other than
any such conflicts, violations, defaults, rights or liens, claims, encumbrances,
security interests, options, charges or restrictions that, individually or in
the aggregate, would not materially and adversely affect the ability of Imperial
to consummate the transactions contemplated hereby and other than any such
consents, authorizations or approvals required under the Bankruptcy Code.

          8.1.2     SFI represents and warrants as follows: (i) each of  SFI,
the Company, and Great Lakes (collectively, the "SFI Companies") is a
corporation duly organized, validly existing and in good standing under the laws
of the state of its incorporation; (ii) SFI owns, directly or indirectly, all of
the issued and outstanding Capital Stock, and, as of the date hereof, the
Company owns all of the issued and outstanding capital stock of Great Lakes;
(iii) subject to approval of the Court, the Board of Directors of each of the
SFI Companies, and the Senior Secured Lenders, each of the SFI Companies  has
all requisite corporate power and authority to enter into this Agreement and the
Ancillary Agreements to which it is a party and to consummate the transactions
contemplated hereby and thereby; (iv) each of the SFI Companies has all
requisite corporate power and authority and all authorizations, licenses,
permits and certificates necessary to carry on its respective business now being
conducted and to own, lease and operate its respective assets; (v) all requisite
corporate action required to be taken by each of the SFI Companies to authorize
the execution, delivery and performance of this Agreement and the Ancillary
Agreements to which each such entity may be a party and the consummation of the
transactions contemplated hereby and thereby has been taken; (vi) all requisite
corporate action required to be taken by each of the SFI Companies to authorize
the performance of this Agreement and the consummation of the transactions
contemplated hereby has been taken; (vii) each of the SFI Companies has duly
executed and delivered this Agreement and the Ancillary Agreements to which each
such entity may be a party; (viii) subject to the approval of the Court, the
Board of Directors of each of the SFI Companies, and the Senior Secured Lenders,
this Agreement and the Ancillary Agreements constitute, or will constitute, as
applicable, valid and binding obligations of each of the SFI Companies a party
thereto, enforceable against each such party in accordance with their respective
terms; and (ix) the execution and delivery by each of the SFI Companies of this
Agreement and the Ancillary Agreements to which each such entity may be a party
do not, and the consummation by each such entity a party thereto of the
transactions contemplated hereby and thereby and compliance by each such entity
with the terms hereof and thereof will not, conflict with, or result in any
violation of or default under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to loss of a benefit under, or
result in the creation of any lien, claim, encumbrance, security interest,
option, charge or restriction of any kind upon any of the assets or stock being
sold hereunder (including but not limited to the Capital Stock) under, or
require any consent, authorization, approval or action by or notice to any third
party or court (except for the bankruptcy Court) or governmental body under (a)
any provision of the articles of incorporation, bylaws or other organization
documents of each of the SFI Companies, (b) any note, bond, mortgage, indenture,
deed of trust, license, lease, contract, commitment, agreement or arrangement to
which any of the SFI Companies or Great Lakes may be a party or by which any of
the SFI Companies or their respective assets are bound or affected, other than
those contracts of SFI set forth in Schedule 8.1.2 with respect to which the
approval, exemption, authorization or  consent of a third party is required (the
"SFI CONTRACTS"),  those contracts of the Company set forth in Schedule 8.1.2
with respect to which

                                       17
<PAGE>

the approval, exemption, authorization or consent of a third party is required
(the "COMPANY CONTRACTS"), and those contracts of Great Lakes set forth in in
Schedule 8.1.2 with respect to which the approval, exemption, authorization or
consent of a third party is required (the "GREAT LAKES CONTRACTS"), or (c) any
judgment, order or decree or any statute, law, ordinance, rule or regulation
applicable to either of the SFI Companies, other than any such conflicts,
violations, defaults, rights or liens, claims, encumbrances, security interests,
options, charges or restrictions that, individually or in the aggregate, would
not materially and adversely affect the ability of any of the SFI Companies to
consummate the transactions contemplated hereby and other than any such
consents, authorizations or approvals required under the Bankruptcy Code.

          8.1.3     Ragus represents and warrants that (i) Ragus is a
corporation duly organized, validly existing and in good standing under the laws
of the state of its incorporation; (ii) subject to approval of the Court, the
Board of Directors of Ragus, and the Senior Secured Lenders, Ragus has all
requisite corporate power and authority to enter into this Agreement and the
Ancillary Agreements to which it is a party and to consummate the transactions
contemplated hereby and thereby; (iii) Ragus has all requisite corporate power
and authority and all authorizations, licenses, permits and certificates
necessary to carry on its business now being conducted and to own, lease and
operate its assets; (iv) all requisite corporate action required to be taken by
Ragus to authorize the execution, delivery and performance of this Agreement and
the Ancillary Agreements to which it is a party and the consummation of the
transactions contemplated hereby and thereby has been taken; (v) all requisite
corporate action required to be taken by Ragus to authorize the performance of
this Agreement and the consummation of the transactions contemplated hereby has
been taken; (vi) Ragus has duly executed and delivered this Agreement and the
Ancillary Agreements to which it is a party; (vii) subject to the approval of
the Court, the Board of Directors of Ragus, and the Senior Secured Lenders, this
Agreement and the Ancillary Agreements to which Ragus is a party constitute, or
will constitute, as applicable, valid and binding obligations of Ragus,
enforceable against itin accordance with their respective terms; and (viii) the
execution and delivery by Ragus of this Agreement and the Ancillary Agreements
to which it is a party do not, and the consummation by Ragus of the transactions
contemplated hereby and thereby and compliance by Ragus with the terms hereof
and thereof will not, conflict with, or result in any violation of or default
under, or give rise to a right of termination, cancellation or acceleration of
any obligation or to loss of a benefit under, or result in the creation of any
lien, claim, encumbrance, security interest, option, charge or restriction of
any kind upon any of the assets or stock being sold hereunder (including but not
limited to the Capital Stock) under, or require any consent, authorization,
approval or action by or notice to any third party or court (except for the
Bankruptcy Court) or governmental body under (a) any provision of the articles
of incorporation, bylaws or other organization documents of  Ragus, (b) any
note, bond, mortgage, indenture, deed of trust, license, lease, contract,
commitment, agreement or arrangement to which Ragus may be a party or by which
Ragus or its assets are bound or affected, other than those contracts set forth
in Schedule 8.1.3 with respect to which the approval, exemption, authorization
or consent of a third party is required (the "RAGUS CONTRACTS"), or (c) any
judgment, order or decree or any statute, law, ordinance, rule or regulation
applicable to Ragus, other than any such conflicts, violations, defaults, rights
or liens, claims, encumbrances, security interests, options, charges or
restrictions that, individually or in the aggregate, would not materially and
adversely affect the ability of Ragus to consummate the transactions
contemplated hereby and other than any such consents, authorizations or
approvals required under the Bankruptcy Code.

                                       18
<PAGE>

     8.2  Title to the Stock and Assets.

          8.2.1  The Capital Stock.  SFI represents and warrants that SFI has,
and at the Closing will have, good and indefeasible title to all the Capital
Stock, free and clear of all mortgages, liens, security interests or
encumbrances of any nature whatsoever.

          8.2.2  The Company's Assets.  SFI represents and warrants that the
Company has, and at the Closing will have, good and indefeasible title to all of
its tangible and intangible assets, free and clear of all mortgages, liens,
security interests or encumbrances of any nature whatsoever, except (i)
mechanics', carriers', workmen's, repairmen's or other like liens arising or
incurred in the ordinary course of business, and liens for taxes and other
governmental charges which are not yet due and payable and will not be due and
payable prior to the Closing; (ii) other imperfections of title, restrictions
and encumbrances, if any, which imperfections of title, restrictions or
encumbrances are not material in amount or do not, individually or in the
aggregate, impair the continued use and operation of the assets to which they
relate in any material respect in the operation of the Business as currently
conducted; and (iii) those liens set forth on Schedule 8.2.2 attached
(collectively, the "COMPANY PERMITTED LIENS").

          8.2.3  The Great Lakes Stock.  SFI represents and warrants that, at
the Great Lakes Stock Sale Closing Date, SFI  will have good and indefeasible
title to all the Great Lakes Stock, free and clear of all mortgages, liens,
security interests or encumbrances of any nature whatsoever.

          8.2.4  The Great Lake Assets.  SFI represents and warrants that, at
the Great Lakes Stock Sale Closing Date, Great Lakes will have, good and
indefeasible title to all of its tangible and intangible assets, free and clear
of all mortgages, liens, security interests or encumbrances of any nature
whatsoever, except (i) mechanics', carriers', workmen's, repairmen's or other
like liens arising or incurred in the ordinary course of business, and liens for
taxes and other governmental charges which are not yet due and payable and will
not be due and payable and will not be due and payable prior to the Closing;
(ii) other imperfections of title, restrictions and encumbrances, if any, which
imperfections of title, restrictions or encumbrances are not material in amount
or do not, individually or in the aggregate, impair the continued use and
operation of the assets to which they relate in any material respect in the
operation of the Business as currently conducted; and (iii) those liens set
forth on Schedule 8.2.4 attached (collectively, the "GREAT LAKES PERMITTED
LIENS").

          8.2.5  The Ragus Assets.  Ragus represents and warrants that, at the
Great Lakes Stock Sale Closing Date, Ragus will have, good and indefeasible
title to all of its tangible and intangible assets, free and clear of all
mortgages, liens, security interests or encumbrances of any nature whatsoever,
except for those liens, imperfections of title, restrictions and encumbrances,
if any, set forth on Schedule 8.2.5 attached (collectively, the "RAGUS PERMITTED
LIENS").

     8.3  Intellectual Property.   SFI represents and warrants as follows: (a)
except for the intellectual property rights disclosed on Schedule 8.3 (which
includes but is not limited to the

                                       19
<PAGE>

Ragus Assets and Great Lakes' Caro Water Processing Process), the Company owns
or has the right to use, without payment to any other party, all patents,
Trademarks (registered or unregistered), trade names, trade dress, packaging
service marks, applications therefor, copyrights, trade secrets, designs, plans,
specifications, technical information and other proprietary rights which the
Company currently uses in its business (collectively, the " Intellectual
Property"); (b) except as disclosed on Schedule 8.3, no claims are pending or,
to the best of the knowledge of the Company, threatened in writing against the
Company by any Person with respect to the Company's ownership or use of any of
the Intellectual Property; (c) except as disclosed on Schedule 8.3, no licenses,
sublicenses or agreements pertaining to any of the Intellectual Property have
been granted or entered into by or on behalf of the Company, other than any
intercompany licenses among one or more of the entities part of Imperial's
consolidated group, all of which intercompany licenses will be terminated as of
the Closing; and (d) except as disclosed on Schedule 8.3: (i) no actions, suits
or claims made pending or, to the knowledge of the Company, threatened in
writing alleging that the manufacture, sale, or use of any of the Products or
the use by the Company of any of the Intellectual Property infringes any
intellectual property rights (including any patents) of a third party, or
infringes upon or otherwise violates any rights of a third party; (ii) the
Company is not subject to any judgment, order, writ, injunction or decree of any
court or any federal, state, local or other governmental department, agency or
instrumentality, domestic or foreign, or any arbitrator, or is a party to any
contract or agreement that restricts or impairs the validity, enforceability or
use of any of the Intellectual Property as currently used in the Business; (iii)
no Person has a right to receive a royalty or a similar payment in respect of
any Intellectual Property other than Ragus; (iv) all registrations of the
Trademarks that are included in the Intellectual Property have been maintained
in all material respects and are validly existing; and (v) neither the
development, manufacture, distribution, marketing, use or sale of any Product
nor the use of any Intellectual Property by the Company infringes the
intellectual property rights of any third party. At Closing, SFI shall grant
Buyer, for no additional consideration, a Royalty Free License to use the Caro
Water Processing Process in a form substantially similar to the form attached as
Exhibit F.

     8.4  Contracts of the Company and Great Lakes.  SFI represents and warrants
as follows:

          8.4.1  Schedule 8.4.1 lists the following agreements, contracts,
commitments, and undertaking, whether oral or written, to which the Company or
Great Lakes is a party, which are in effect as of the date hereof, and which
relate to the operation of the business or the assets of the Company or Great
Lakes, other than contracts entered into in the ordinary course of the business
of the Company or Great Lakes: (i) written contracts for the employment of an
Employee or other Person on a full-time or consulting basis or relating to
severance pay for any such Person; (ii) written confidentiality agreement
binding upon or inuring to the benefit of the Company; (iii) written agreement
or indenture mortgaging, pledging or otherwise placing a lien on any assets;
(iv) contract or group of related contracts with the same party with a value in
excess of $25,000.00 for the purchase of products or services, including
contracts with third parties for the research, development, manufacture or
packaging of the Products or for the supply of raw materials, ingredients,
packaging materials or other supplies; (v) contract or group of related
contracts with the same party for the sale of Products or services, including
contracts with customers; (vi) contract or group of related contracts with the
same party (other than any contract

                                       20
<PAGE>

or group of related contracts for the purchase or sale of products or services)
continuing over a period of more than six months from the date or dates thereof,
not terminable by it on 30 days' or less notice without penalty and having a
value in excess of $10,000.00; (vii) contract which prohibits the Company or
Great Lakes from freely engaging in the Business anywhere in the world; (viii)
contract with a value in excess of $10,000.00 for the distribution, marketing,
advertising or promotion of any of the Products, including any distributor,
sales, consulting, advertising, marketing, promotional or merchandising
contracts; and (ix) license agreement or agreement providing for the payment or
receipt of royalties or other compensation by any party in connection with the
Intellectual Property.

          8.4.2  Each agreement, contract, commitment and undertaking required
to be disclosed in Schedule 8.4.1 and to which the Company is a party is a valid
and binding obligation of the Company and is in full force and effect.  Each
agreement, contract, commitment and undertaking required to be disclosed in
Schedule 8.4.1 and to which Great Lakes is a party is a valid and binding
obligation of Great Lakes and is in full force and effect.  Except as disclosed
on Schedule 8.4.2, as the case may be, and, to the knowledge of the Company with
respect to those agreements, contracts, commitments and undertakings to which
the Company is a party, each other contracting party has performed all material
obligations required to be performed by it to date under each agreement,
contract, commitment and undertaking required to be disclosed in Schedule 8.4.1
and is not in breach or default in any material respect thereunder.  Except as
disclosed on Schedule 8.4.2, as the case may be, and, to the knowledge of Great
Lakes with respect to those agreements, contracts, commitments and undertakings
to which Great Lakes is a party, each other contracting party has performed all
material obligations required to be performed by it to date under each
agreement, contract, commitment and undertaking required to be disclosed in
Schedule 8.4.1 and is not in breach or default in any material respect
thereunder.

          8.4.3  Prior to the date of this Agreement, except as disclosed in
Schedule 8.4.1, Buyer has been provided an opportunity to review a true and
correct copy of each written contract or commitment, and a written description
of each oral contract or commitment, referred to in Schedule 8.4.1, together
with all amendments, waivers or other changes thereto (except that the Company
and Great Lakes may exclude on such contracts the names of the other parties
thereto, which excluded names the Company or Great Lakes, as the context so
provides, shall provide to Buyer no later than one business day after the date
of the Interim Order).

     8.5  Litigation; Decrees.  Except as provided on Schedule 8.5 attached
hereto, SFI represents and warrants that (a) there are no legal, administrative,
arbitration or other proceedings or governmental investigations, lawsuits,
actions or claims relating to the Company, pending or, to the knowledge of the
Company, threatened in writing against the Company, at law or in equity, or
before or by any federal, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign that
could reasonably be expected to have a material and adverse effect on Buyer's
operation of the Business following Closing, and (b) there are no legal,
administrative, arbitration or other proceedings or governmental investigations,
lawsuits, actions or claims relating to Great Lakes, pending or, to the
knowledge of Great Lakes, threatened in writing against Great Lakes, at law or
in equity, or before or by any federal, state, municipal or other governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign that could reasonably be expected to have

                                       21
<PAGE>

a material and adverse effect on Buyer's operation of Great Lakes following
Great Lakes Stock Sale Closing Date.

     8.6  Absence of Changes or Events.  SFI represents and warrants that,
except as set forth on Schedule 8.6, since March 31, 2001, taken as a whole,
there has been no material adverse change in the business or the operating
results, customer, employee or supplier relations or business condition of the
Company or of Great Lakes, other than changes relating to the manufacture,
marketing and sale of the Products and the sugar business in general and not
specifically relating to either the Company's business or Great Lakes' business.

     8.7  Compliance with Applicable Laws.  SFI represents and warrants as
follows:

          8.7.1  Except as set forth on Schedule 8.7.1, the respective
businesses of the Company and Great Lakes each has been conducted in compliance
in all material respects with all applicable statutes, laws, ordinances, rules,
orders and regulations of any governmental authority or instrumentality,
including, but not limited to, federal, state, local and foreign statutes, laws,
ordinances, rules, orders, regulations and other requirements pertaining to
product labeling and food and consumer products safety.  Except as set forth on
Schedule 8.7.1, since September 30, 1999, neither the Company nor Great Lakes
has received any written communication from a governmental authority that
alleges that any of the businesses of the Company or Great Lakes, including the
sale of the Products, is not in compliance with applicable federal, state,
foreign or local laws, rules and regulations.

          8.7.2  Each of the Company and Great Lakes has in full force and
effect all licenses, permits and certificates, from federal, state, local and
foreign authorities (including, without limitation, federal and state agencies
regulating food safety) necessary to conduct the Business.  Schedule 8.7.2 sets
forth a correct and complete list of such licenses, permits and certificates
other than business licenses and secretary or department of state certificates
applicable to all businesses generally.  Each of the Company and Great Lakes has
conducted its respective businesses in compliance with all material terms and
conditions of such licenses, permits and certificates, except as provided on
Schedule 8.7.2.

     8.8  Taxes.  Except as set forth on Schedule 8.8, all federal, state,
local, foreign and other tax returns, reports and declarations of every nature
required to be filed by or on behalf of the Company or Great Lakes (either
separately or as part of a consolidated group) prior to the Closing Date have
been or will be timely filed on or before the due date thereof, including any
permissible extension periods, and such returns, reports and declarations as so
filed are complete and accurate and disclose all taxes required to be paid for
the periods covered thereby and all such taxes have been or will be timely paid
in full by the due date thereof, including any permissible extension periods.
Except as set forth on Schedule 8.8, there are no liens for taxes levied against
the Company or Great Lakes, except liens for taxes that are not yet due and
payable and that will not be due and payable prior to the Closing, including any
permissible extension periods.

     8.9  Products.  SFI represents and warrants as follows:

                                       22
<PAGE>

          8.9.1  Schedule 1.17 sets forth a true and complete list of all
Products of the Company.

          8.9.2  Each of the Products and/or its ingredients prepared,
manufactured, and sold by the Company (including Products in process and in
inventory on the Closing Date) have been, or will have been, prepared,
manufactured, and sold by the Company in compliance, in all material respects,
with the United States Food, Drug and Cosmetic Act, as amended (the "Food and
Drug Act"), and all rules and regulations promulgated thereunder and all
applicable federal, state and municipal laws and regulations governing the
purity of food sold for human consumption and  nutritional labeling requirements
(all together  the "Food Acts").  To the best of the knowledge of the Company,
all Products and/or its ingredients (including Products in process and in
inventory on the Closing Date) manufactured for the Company by a third party
were manufactured by such third party in compliance, in all material respects,
with the Food Acts. No Products of the Company sold before the Closing Date have
been or will be "adulterated" or "contaminated" within the meaning of the Foods
Acts or have constituted an article prohibited from introduction into interstate
commerce under the Food Acts.  No Products in process or in Inventory of the
Company on the Closing Date will be "adulterated" or "contaminated" within the
meaning of the Foods Acts or, based on its condition on the Closing Date with
respect to the Company, will constitute an article prohibited from introduction
into interstate commerce under the Food Acts when introduced after the Closing
Date.

          8.9.3  To the knowledge of the Company, all the ingredients in each of
the Products of the Company generally are available on the open market and the
Company is unaware of any imminent or threatened shortage of supply.

          8.9.4  The Company has not, whether voluntarily or as a result of any
action by any governmental or regulatory authority or trade or consumer group,
recalled or withdrawn a product for any reason, including any manufacturing or
labeling defect, impurity or adulteration, or issued any press release or public
statements containing any statement advising its trade customers or consumers of
the products to treat such products in any manner, other than any such action
taken in the ordinary course.

          8.9.5  Except for any guaranty or warranty implied by law, the Company
has not given any guaranty or warranty or made any representation in respect of
products or services supplied or agreed to be supplied by the Company, or has
accepted any liability or obligation in respect of any such products or services
which would apply after any such products or services have been supplied, except
for such guaranties and warranties made in the ordinary course.

     8.10 Inventory.  SFI represents and warrants that, with respect to each of
the Company and Great Lakes, such entity's inventory consists of raw products,
packaging, and materials relating to the products that are usable in the
ordinary course of such entity's business as now conducted.

     8.11 Employees,  Promptly after the date hereof, SFI will provide Buyer
with a list of each employee who performs functions exclusively in connection
with the Business of the Company and the position, title, remuneration
(including any scheduled salary or remuneration

                                       23
<PAGE>

increases), date of employment and accrued vacation pay of each such employee
(the "Company Employees") and a list of each employee who performs functions
exclusively in connection with the business of Great Lakes and the position,
title, remuneration (including any scheduled salary or remuneration increases),
date of employment and accrued vacation pay of each such employee (the "Great
Lakes Employees"). Upon being provided by SFI, the list provided pursuant to
this Section 8.11 shall be annexed as Schedule 8.11 of this Agreement.

     8.12 Labor and Employee Benefits.  SFI represents and warrants as follows:
(a) as of the date of this Agreement, factory hourly workers at the Carrollton,
MI,  Caro, MI, Sebewaing, MI and Croswell, MI factories are represented by the
Bakery, Confectionary, Tobacco Workers & Grain Millers, AFL-CIO-CLC and its
Locals No. 259G (Carrollton, MI), 260G (Caro, MI), 261G (Sebewaing, MI) and 262G
(Croswell, MI) under collective bargaining agreement effective August 1, 1998
through July 31, 2001 (the "CURRENT MICHIGAN UNION CONTRACT"); (b) as of the
date of this Agreement, factory hourly workers at the Great Lakes facility are
represented by the Bakery, Confectionary, Tobacco Workers & Grain Millers, AFL-
CIO-CLC and its Local No. 294 - G, under a collective bargaining agreement
effective June 1, 1999 through May 31, 2002 (the "CURRENT OHIO UNION CONTRACT");
(c) other than the current Michigan Union Contract and the Current Ohio Union
Contract, neither the Company nor Great Lakes is aware of any additional attempt
by any union to organize either the Company Employees or the Great Lakes
Employees; (d) no employee of the Company or Great Lakes is employed under a
written employment agreement, except for Mark Flegenheimer who is employed by
the Company; (e) the employee pension benefit plans and employee welfare benefit
plans of the Company and Great Lakes in which their respective employees are
participants have been administered in accordance with their terms and comply in
all material respects with Employee Retirement Income Security Act of 1974, as
amended, and the Code; and (f) the market value of the assets under any employee
pension benefit plan maintained by Company pursuant to a collective bargaining
agreement (other than a multiemployer plan within the meaning of Section 3(37)
of ERISA) equals or exceeds the present value of all vested and non-vested
liabilities thereunder determined in accordance with Pension Benefit Guaranty
Corporation (PBGC) methods, factors, and assumption applicable to an employee
pension benefit plan terminating as of the Closing.

     8.13 Broker's or Finder's Fees.  Buyer will not, directly or indirectly,
have any liability or expense as a result of undertakings or agreements of any
of the Imperial Companies for brokerage fees, finder's fees, attorneys fees,
agent's commissions or similar forms of compensation in connection with this
Agreement, the Ancillary Agreements, or any agreement or transaction
contemplated hereby or thereby.

     8.14 Liabilities of the Company at Closing.  At the Closing, the Company
shall have no liabilities or obligations, either accrued, absolute, contingent
or otherwise, which, with respect to the financial position of the Company as of
the Closing, are in the aggregate material, except any matter fitting into any
one or more of the following categories: (a) to the extent such liabilities and
obligations are reflected in the financial statements attached as part of
Schedule 8.14 and not paid or discharged prior to the Closing, (b) those
liabilities or obligations incurred in or as a result of the normal and ordinary
course of the Company's business since the effective date of said financial
statements, or (c) those contracts, agreements, liabilities and obligations

                                       24
<PAGE>

either disclosed anywhere on the schedules attached hereto or not required to be
disclosed on said schedules.

     8.15 Liabilities of Great Lakes at the Great Lakes Stock Sale Closing Date.
At the Great Lakes Stock Sale Closing Date, Great Lakes shall have no
liabilities or obligations, either accrued, absolute, contingent or otherwise,
which, with respect to the financial position of the Company as of the Great
Lakes Stock Sale Closing Date, are in the aggregate material, except any matter
fitting into any one or more of the following categories: (a) to the extent such
liabilities and obligations are reflected in the financial statements attached
as part of Schedule 8.15 and not paid or discharged prior to the Closing, (b)
those liabilities or obligations incurred in or as a result of the normal and
ordinary course of Great Lake's business since the effective date of said
financial statements, or (c) those contracts, agreements, liabilities and
obligations either disclosed anywhere on the schedules attached hereto or not
required to be disclosed on said schedules.

                                   ARTICLE 9

                    COVENANTS OF THE COMPANY AND GREAT LAKES

     9.1  Access.  Prior to the Closing, SFI shall grant to, or cause to be
granted to, Buyer and its representatives, employees, counsel and accountants
reasonable access, during normal business hours and upon reasonable notice, to
the personnel, properties, books and records of the Company and Great Lakes and
the work papers of the Company's and Great Lakes' independent accountants
relating exclusively to such entities' respective businesses and the transition
of said businesses to Buyer; provided, however, that such access does not
unreasonably interfere with the normal operations of said businesses; and
provided further, however, that all requests for access shall be directed to
such Person or Persons as SFI may designate from time to time.  In addition,
promptly after the date hereof, SFI shall ensure that the Company shall provide
Buyer with the information required to be provided pursuant to Section 8.11, and
that the Company, Great Lakes, and their respective officers and directors shall
cooperate fully (including providing introductions where necessary) with Buyer
to enable Buyer to contact such third parties, including distributors, vendors,
suppliers or manufacturers, of or to the Business, as Buyer deems reasonably
necessary to complete its due diligence investigation of the Business; provided
that Buyer agrees not to initiate such contacts without the prior approval of
SFI, which approval shall not be unreasonably withheld.

     9.2  Operations of the Company pending Closing.  Except as permitted by the
terms of this Agreement or as set forth in Schedule 9.2, from the date hereof to
the Closing, SFI shall ensure that the Company will cause its business to be
conducted in the ordinary course consistent with past practice, and will not do
any of the following without the prior written consent of Buyer:

          9.2.1  make any material change in the conduct of its business, except
as specifically contemplated by this Agreement;

                                       25
<PAGE>

          9.2.2  sell, lease, license or otherwise dispose of, or agree to sell,
lease, license or otherwise dispose of, any interest in its assets, except for
sales of Products and Inventory in the ordinary course of business, the sale of
salvage equipment not necessary to the operation of the Great Lakes Assets which
are currently listed for sale, and the transfer of the Great Lakes Stock to SFI
at or before Closing;

          9.2.3  amend or terminate any of the contracts listed on Schedule
8.4.1, other than in the ordinary course of business or as necessary for the
maintenance of property relating to the Business;

          9.2.4  fail to use commercially reasonable efforts to preserve intact
the reputation of its business and the goodwill of suppliers, customers and
others having business relations with it; or

          9.2.5  fail to use commercially reasonable efforts to maintain good
relations with its employees or take any action with respect to the grant of any
bonuses, salary increases, severance or termination pay for any of its employees
or with respect to any increase of benefits payable in effect on the date hereof
to any of its employees.

     9.3  Operations of Great Lakes pending the Great Lakes Stock Sale Closing
Date.  Except as permitted by the terms of this Agreement or as set forth in
Schedule 9.3, from the date hereof to the Great Lakes Stock Sale Closing Date,
SFI shall ensure that Great Lakes will cause its business to be conducted in the
ordinary course consistent with past practice, and will not do any of the
following without the prior written consent of Buyer:

          9.3.1  make any material change in the conduct of its business, except
as specifically contemplated by this Agreement;

          9.3.2  sell, lease, license or otherwise dispose of, or agree to sell,
lease, license or otherwise dispose of, any interest in its assets, except for
sales of Products and Inventory in the ordinary course of business, the sale of
salvage equipment not necessary to the operation of Great Lakes' assets which
are currently listed for sale, and the transfer of the Great Lakes Stock to SFI
at or before Closing;

          9.3.3  amend or terminate any of the contracts listed on Schedule
8.4.1, other than in the ordinary course of business or as necessary for the
maintenance of property relating to the Business;

          9.3.4  fail to use commercially reasonable efforts to preserve intact
the reputation of its business and the goodwill of suppliers, customers and
others having business relations with it; or

          9.3.5  fail to use commercially reasonable efforts to maintain good
relations with its employees or take any action with respect to the grant of any
bonuses, salary increases, severance or termination pay for any of its employees
or with respect to any increase of benefits payable in effect on the date hereof
to any of its employees.

                                       26
<PAGE>

     9.4  Notices.  After the date of this Agreement and up to and including the
Closing date, SFI shall promptly notify Buyer of (a) any material adverse change
in the Business; (b) any governmental complaints, investigations or hearings as
to the Business of which SFI has been advised in writing, or the institution of
any litigation, involving the Business, (c) any notice or other written
communication received by SFI or the Company alleging the existence of any
default or event which with notice or lapse of time or both would become a
default under any of the contracts listed on Schedule 8.4.1; or (d) any
development or event causing a material breach of any of the representations or
warranties contained in Article 8 of this Agreement.

     9.5  No-Shop.  Subject to any requirements of the Bankruptcy Code or the
Court, and except as required by fiduciary duty under the Bankruptcy Code of any
of the officers or directors of any of the Imperial Companies from and after the
date hereof until the Closing (unless this Agreement is otherwise terminated as
provided for herein), (i) SFI will not, and will cause its Affiliates and its
and their employees and representatives not to, directly or indirectly, solicit
or initiate discussions or negotiations with any Person other than the Buyer
with respect to the acquisition of the Business or the Capital Stock of the
Company, whether by way of merger, purchase of capital stock, purchase of assets
or otherwise (a "POSSIBLE ACQUISITION") it being understood that if a Person
other than Buyer initiates such discussions or negotiations, SFI may respond and
enter into discussions or negotiations with such Person, and (ii) unless this
Agreement is terminated and SFI has complied with the terms of Section 14.5
hereof, SFI will not enter into a transaction with any Person other than the
Buyer with respect to a Possible Acquisition.

     9.6  Noncompetition and Nonsolicitation.

          9.6.1  During the two-year period commencing on the Closing Date and
except for the ownership of the Great Lakes Stock and the operation of Great
Lakes in the lines of business conducted on the date hereof, SFI and its
Affiliates (excluding Affiliates who are natural persons) shall not directly or
indirectly in the geographic area within one hundred (100) miles of the state of
Michigan (a) engage in the sugar beet processing business or (b) disturb or
attempt to disturb any exclusive business relationship between any third party
and Buyer or its Affiliates.  SFI understands that Buyer would not have agreed
to purchase the Stock without having received this noncompetition covenant from
SFI, and SFI acknowledges that it has entered into this noncompetition covenant
as a material inducement to Buyer to consummate the transactions contemplated
hereby.

          9.6.2  During the two-year period commencing on the Closing Date, SFI
and its Affiliates shall not (excluding Affiliates who are natural persons)
solicit or encourage any officer or employee employed by Buyer or its Affiliates
in connection with the Business to leave the employ of Buyer or its Affiliates,
nor solicit or offer for hire any individual who has been employed by SFI or the
Company in connection with the Business at any time during the two-month period
prior to the date hereof.

     9.7  Confidentiality.  SFI and its Affiliates acknowledge that all
"EVALUATION MATERIALS" (as defined in the Confidentiality Agreement defined
below) provided to any of it

                                       27
<PAGE>

and its Affiliates, agents and representatives by Buyer and its Affiliates,
agents and representatives is subject to the terms of a confidentiality
agreement earlier executed between SFI and Buyer (or one of their Affiliates or
other beneficial owners) (the "CONFIDENTIALITY AGREEMENT"), attached hereto as
Exhibit G, the terms of which are hereby incorporated herein by reference. SFI
acknowledges that any and all information provided or made available to it and
its Affiliates, agents and representatives by or on behalf of Buyer concerning
Buyer and its Affiliates shall remain subject to the terms and conditions of the
Confidentiality Agreement after the Closing Date in accordance with the terms of
the Confidentiality Agreement. Except to the extent mutually agreed upon by both
parties or as expressly required by applicable law, SFI shall, and shall cause
its Affiliates to, keep secret and confidential, for a period of five (5) years
from the date of this Agreement, the terms of this Agreement and the Ancillary
Agreements and the transactions contemplated hereby and thereby and not disclose
the same, either directly or indirectly, to any other Person, or use the same in
any way.

     9.8  Motion to Approve.  Within five business days after execution of this
Agreement by all parties, SFI shall file with the Court motions to obtain the
Interim Order and to approve this Agreement, the Acquisition and the related
transactions contemplated by this Agreement pursuant to Sections 363 and 365 of
the Bankruptcy Code, and shall request hearings relative to such motions to be
scheduled for the earliest practicable dates.

     9.9  Bankruptcy Court Approval.  SFI shall use its reasonable best efforts
to obtain the Sale Order, which shall, among other things (a) determine that
this Agreement was proposed and negotiated by Buyer and SFI in good faith and at
arm's length and represents the highest and best offer for the Capital Stock and
should be approved; (b) determine that Buyer is a good faith purchaser under
Section 363(m) of the Bankruptcy Code and that the provisions of Section 363(n)
of the Bankruptcy Code have not been violated; (c) authorize and direct SFI to
sell the Capital Stock and the assets to Buyer pursuant to this Agreement and
Section 363 of the Bankruptcy Code, free and clear of all liens, claims,
interests, liabilities and encumbrances (including any and all "interests" in
the Assets within the meaning of Section 363(f) of the Bankruptcy Code), other
than the Assumed Liabilities and any environmental liabilities that attach to
the owner of any of the Capital Stock by operation of law; (d) authorize and
direct SFI to assume contracts necessary to the businesses of the Company and
Great Lakes under Section 365 of the Bankruptcy Code; (e) authorize and direct
SFI to perform any and all of its obligations under Section 14.5 hereof
(including the payment of any amounts required thereunder) and otherwise under
this Agreement free and clear of all liens, claims, interests and encumbrances
of any Person (including, without limitation, any prepetition creditors and
debtor-in-possession lenders); (f) authorize and direct SFI to execute, deliver,
perform under, consummate and implement this Agreement, together with all
additional instruments and documents that may be reasonably necessary or
desirable to implement the foregoing; (g) permanently enjoin each and every
holder of a Liability relating to the Capital Stock or the Business incurred on
or before the Closing Date from commencing, continuing or otherwise pursuing or
enforcing any remedy, claim or cause of action against Buyer relative to such
Liability; and (h) provide that the proceeds of any sale of the Business or the
Capital Stock to any Person other than the Buyer shall first be applied to the
payment of the Expense Reimbursement Amount and the Topping Fee (as defined in
Section 14.5 hereof), in the event that a Person other than Buyer purchases the
Capital Stock or the Business.

                                       28
<PAGE>

     9.10 Notice of Filings.  From and after the date hereof until the Closing
Date, SFI shall provide Buyer with drafts of all documents, agreements or other
instruments proposed to be included in any filings with the Court related to
this Agreement and the Acquisition (each, a "Court Document" and, collectively,
"COURT DOCUMENTS") and a reasonable opportunity for Buyer to comment thereon
prior to the filing of any such Court Document with the Court (Court Documents
so filed, collectively, "COURT FILINGS").  Buyer shall provide any comments it
has to Court Documents to SFI in a timely manner.  SFI shall provide Buyer with
Court Filings, and shall provide notice to Buyer of any Court developments
relating to the Business or the Acquisition.

     9.11 Systems of the Company and Great Lakes.

          9.11.1  Except as may conflict with or be prohibited by any applicable
licenses or agreements, SFI shall provide sufficient time before and after
Closing to allow the computer, telephone and other similar systems of the
Company which are integrated with such systems maintained in Sugar Land, Texas,
or Savannah, Georgia, by or for Imperial and/or one or more of its various
subsidiaries and affiliates to be separated into a stand-alone system to be
operated independently by Buyer under the umbrella of the Company after Closing.
Except as may conflict with or be prohibited by any applicable licenses or
agreements, the time provided by SFI shall not extend beyond ninety (90) days
after Closing, or the end of the 2001-2002 Campaign, whichever is longer.
Notwithstanding anything to the contrary contained in this Agreement, (i) only
the computer software listed on Schedule 9.11.1 is owned by the Company, and,
after Closing, neither Buyer nor the Company shall have any right or license to
own or use any other software which may now be utilized by of for the benefit of
the Company other than as permitted above in this Section 9.11.1, and (ii) all
computer hardware used by the Company and located in the Company's offices in
Saginaw, Michigan shall remain the property of the Company through and at the
Closing, except for those items listed on Schedule 9.11.1.

          9.11.2  Except as may conflict with or be prohibited by any applicable
licenses or agreements, SFI shall provide sufficient time before and after the
Great Lakes Stock Sale Closing Date to allow the computer, telephone and other
similar systems of Great Lakes which are integrated with such systems maintained
in Sugar Land, Texas, or Savannah, Georgia, by or for Imperial and/or one or
more of its various subsidiaries and affiliates to be separated into a stand-
alone system to be operated independently by Buyer under the umbrella of the
Company or Great Lakes after the Great Lakes Stock Sale Closing Date.  Except as
may conflict with or be prohibited by any applicable licenses or agreements, the
time provided by SFI shall not extend beyond ninety (90) days after the Great
Lakes Stock Sale Closing Date.  Notwithstanding anything to the contrary
contained in this Agreement, the software listed on Schedule 9.11.2 is not owned
by the Company or Great Lakes, and, after the Great Lakes Stock Sale Closing
Date, neither Buyer, the Company nor Great Lakes shall have any right or license
to use such software other than as permitted above in this Section 9.11.2.
Notwithstanding anything to the contrary contained in this Agreement, (i) only
the computer software listed on Schedule 9.11.2 is owned by Great Lakes, and,
after the Great Lakes Stock Sale Closing Date, neither Buyer nor Great Lakes
shall have any right or license to own or use any other software which may now
be utilized by of for the benefit of Great Lakes other than as permitted above
in this Section 9.11.1,

                                       29
<PAGE>

and (ii) all computer hardware used by the Company and located in the Company's
offices in Saginaw, Michigan shall remain the property of the Company through
and at the Great Lakes Stock Sale Closing Date, except for those items listed on
Schedule 9.11.2.

                                  ARTICLE 10

                    REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer hereby represents and warrants to SFI as follows:

     10.1 Authority; No Conflicts.

          10.1.1  Buyer is a corporation duly organized, validly existing and in
good standing under the laws of its state of incorporation.  Buyer has all
requisite corporate power and authority to enter into this Agreement and the
Ancillary Agreements and to consummate the transactions contemplated hereby and
thereby.  All requisite corporate action required to be taken by Buyer to
authorize the execution, delivery and performance of this Agreement and the
Ancillary Agreements and the consummation of the transactions contemplated
hereby and thereby has been taken.  This Agreement has been duly executed and
delivered by Buyer, and  the Ancillary Agreements have been duly and validly
executed and delivered by both parties.  This Agreement and the Ancillary
Agreements constitute, or will constitute, as applicable, valid and binding
obligations of Buyer, enforceable against Buyer in accordance with their terms,
except to the extent that enforceability of the terms and provisions of this
Agreement and Ancillary Agreements is subject to the effect of applicable
bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or
other laws relating to or affecting creditors' rights generally and by general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

          10.1.2  The execution and delivery by Buyer of this Agreement and the
Ancillary Agreements do not, and the consummation by Buyer of the transactions
contemplated hereby and thereby and compliance by Buyer with the terms hereof,
and thereof will not, conflict with, or result in any violation of or default
under, or give rise to a right of termination, cancellation or acceleration of
any obligation or to loss of a benefit under, or require any consent,
authorization, approval or action by or notice to any third party or court or
governmental body under any provision of (a) the certificate of incorporation or
bylaws of Buyer, (b) any note, bond, mortgage, indenture, deed of trust,
license, lease, contract, commitment, agreement or arrangement to which Buyer is
a party, or (c) any material judgment, order or decree, or any material statute,
law, ordinance, rule or regulation applicable to Buyer or its property or
assets, other than any such conflicts, violations, defaults or rights that,
individually or in the aggregate, would not effect the ability of Buyer to
consummate the transactions contemplated hereby and other than any such consent,
authorization or approval required under the Bankruptcy Code.

     10.2 Actions and Proceedings, etc.  There are no (i) outstanding judgments,
orders, writs, injunctions or decrees of any court, governmental agency or
arbitration tribunal against Buyer which have or would reasonably be expected to
have a material adverse effect on the

                                       30
<PAGE>

ability of Buyer to consummate the transactions contemplated hereby or (ii)
actions, suits, claims or legal, administrative or arbitration proceedings or
investigations pending or, to the knowledge of Buyer, threatened against Buyer,
which directly relate to the transactions contemplated hereby.

     10.3 Availability of Funds.  Buyer has or will have at Closing sufficient
cash or other sources of immediately available funds, or irrevocable commitments
from financial institutions (true and correct copies of which have been or will
be delivered at Closing, to SFI), to enable it to consummate the transactions
contemplated by this Agreement.

     10.4 Broker's or Finder's Fees.  None of the Imperial Companies will,
directly or indirectly, have any liability or expense as a result of
undertakings or agreements of Buyer, for brokerage fees, attorneys' fees,
finder's fees, agent's commissions or similar forms of compensation in
connection with this Agreement, the Ancillary Agreements, or any agreement or
transaction contemplated hereby or thereby.

                                  ARTICLE 11

                              COVENANTS OF BUYER

     Buyer covenants as follows:

     11.1 Confidentiality.   Buyer acknowledges that all "Evaluation Materials"
(as defined in the Confidentiality Agreement, attached as Exhibit G) provided to
any of it and its Affiliates, agents and representatives by SFI and its
Affiliates, agents and representatives is subject to the terms of the
Confidentiality Agreement earlier executed between SFI and Buyer (or one of
their Affiliates or other beneficial owners) the terms of which are hereby
incorporated herein by reference. Buyer acknowledges that any and all
information provided or made available to it and its Affiliates, agents and
representatives by or on behalf of SFI concerning SFI and its Affiliates shall
remain subject to the terms and conditions of the Confidentiality Agreement
after the Closing Date in accordance with the terms of the Confidentiality
Agreement.  Except to the extent mutually agreed upon by both parties or as
expressly required by applicable law, Buyer shall, and shall cause its
Affiliates to, keep secret and confidential, for a period of five (5) years from
the date of this Agreement,  the terms of this Agreement and the Ancillary
Agreements and the transactions contemplated hereby and thereby and not disclose
the same, either directly or indirectly, to any other Person, or use the same in
any way.

     11.2 No Additional Representations.  Buyer acknowledges that neither any of
the Imperial Companies nor any other Person or entity has made any
representation or warranty, express or implied, except as expressly set forth in
this Agreement, including but not limited to any implied representation or
warranty as to the maintenance, repair, condition, quality, suitability, design,
marketability, merchantability, fitness for a particular purpose or conformity
to models or samples of any asset and that, EXCEPT FOR THE EXPRESS
REPRESENTATIONS AND WARRANTIES  CONTAINED IN THIS AGREEMENT, BUYER TAKES THE
CAPITAL STOCK AND ASSETS PURCHASED OR TO BE PURCHASED

                                       31
<PAGE>

HEREUNDER ON AN "AS IS" AND "WHERE IS" BASIS, WITH ALL FAULTS, AND THE IMPERIAL
COMPANIES EXPRESSLY DISCLAIM ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED,
AS TO THE MAINTENANCE, REPAIR, CONDITION, QUALITY, SUITABILITY, DESIGN OR
MARKETABILITY OF ANY STOCK OR ASSETS BEING SOLD HEREUNDER, AND FURTHER DISCLAIM
ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, OR MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE OR CONFORMITY TO MODELS OR SAMPLES OF ANY OF THE ASSETS
BEING SOLD HEREUNDER. Buyer further agrees that neither any of the Imperial
Companies nor any other Person or entity will have or be subject to any
Liability to Buyer or any other Person resulting from the distribution to Buyer,
or Buyer's use of, any information, document, or material made available to
Buyer in any "data rooms," management presentations or supplemental due
diligence information provided to Buyer, in connection with discussions or
access to management of the businesses of the Company or Great Lakes or in any
other form in expectation of the transactions contemplated by this Agreement,
except to the extent that any of the foregoing information is specifically
included in, the subject of or incorporated into, a representation or warranty
contained in this Agreement.

     11.3 Nonsolicitation.  During the two-year period commencing on the Closing
Date, Buyer and its Affiliates (excluding Affiliates who are natural persons)
shall not solicit or encourage any officer or employee employed by SFI or its
Affiliates in connection with the Business (other than the Employees who are
offered employment and who accept such employment in accordance with Section
12.10 hereof) to leave the employ of SFI, or its Affiliates.

     11.4 License.  With respect to any and all Intellectual Property
constituting manufacturing know-how and processes of the Company or Great Lakes
that does not relate exclusively to any of the Products or the Business (the
"MANUFACTURING I/P"), Buyer agrees that, after the Closing and/or the Great
Lakes Stock Sale Closing and upon SFI's request for, and identification of, such
Manufacturing I/P, Buyer will grant, or will cause the Company and/or Great
Lakes to grant, to SFI or any Affiliate of SFI, without any further
consideration, a  non-exclusive, fully-paid up, perpetual license for such
Manufacturing I/P identified by SFI in such request.

     11.5 Industrial Development Bonds.  Buyer agrees that, after the Closing,
it will timely pay and satisfy in full, or will cause the Company to timely pay
and satisfy in full, those industrial development bonds relating to the Company
having a face value of approximately Eighteen Million Five Hundred Thousand
Dollars ($18,500,000.00) in accordance with the payment terms and other
conditions set forth in the plan of reorganization filed, or to be filed, in the
Cases, or on such other terms and conditions as may be made by Buyer in lieu of
the terms and other conditions set forth in the said plan of reorganization.
Notwithstanding anything to the contrary in this Agreement, this covenant shall
survive the Closing until such time as all of said bonds have been paid in full
in accordance with the payment terms and other conditions set forth in the plan
or reorganization filed, or to be filed, in the Cases, or on such other terms
and conditions as may be made by Buyer.

                                       32
<PAGE>

     11.6 Addendums to Ancillary Agreements.  Buyer agrees that, at or before
Closing, it will enter into the First Addendum to Facility Lease, the First
Addendum to the Factories Management Agreement, and the First Addendum to
Marketing Agreement, substantially in the form attached in Schedule 11.6.

                                   ARTICLE 12

                                MUTUAL COVENANTS

     SFI and Buyer covenant and agree as follows:

     12.1 Consents, etc.

          12.1.1  Buyer acknowledges that, as a result of the transfer of the
Capital Stock and/or change in control of the Company, the transfer of the Great
Lakes Stock and/or a change in control of Great Lakes, and/or the transfer of
the Ragus Assets, certain consents may be required from parties to the Imperial
Contracts, the SFI Contracts, the Company Contracts, the Great Lakes Contracts,
and the Ragus Contracts and such consents have not been obtained as of the date
hereof.  SFI agrees to use its commercially reasonable best efforts to obtain
prior to the Closing the consents, approvals, exemptions or authorizations to
the Imperial Contracts disclosed on Schedule 8.1.1 and required for the closing
of the sale and transfer of the Capital Stock and to obtain prior to the Great
Lakes Stock Sale Closing the consents, approvals, exemptions or authorizations
to the Imperial Contracts disclosed on Schedule 8.1.1 and necessary to the
closing of the sale and transfer of the Great Lakes Stock and the Ragus Assets.
SFI agrees to use its commercially reasonable best efforts to obtain prior to
the Closing the consents, approvals, exemptions or authorizations to the SFI
Contracts and the Company Contracts disclosed on Schedule 8.1.2 and required for
the closing of the sale and transfer of the Capital Stock and to obtain prior to
the Great Lakes Stock Sale Closing the consents, approvals, exemptions or
authorizations to the SFI Contracts, the Company Contracts and the Great Lakes
Contracts disclosed on Schedule 8.1.2 and required for the closing of the sale
and transfer of the Great Lakes Stock and the Ragus Assets.   Ragus agrees to
use its commercially reasonable best efforts to obtain prior to the Great Lakes
Stock Sale Closing the consents, approvals, exemptions or authorizations to the
Ragus Contracts disclosed on Schedule 8.1.3 and required for the closing of the
sale and transfer of the Ragus Assets.  Each of the consents, approvals,
exemptions or authorizations to the Imperial Contracts, the SFI Contracts, the
Company Contracts, the Great Lakes Contracts or the Ragus Contracts are referred
to individually as a "REQUIRED CONSENT" and collectively as the "REQUIRED
CONSENTS").

          12.1.2  With respect to any of the Company Contracts or the Great
Lakes Contracts which have provisions prohibiting a change in control and with
respect to which a consent to such change in control may not be obtained from
parties to the contract (individually, a "NONTRANSFERABLE CONTRACT" and
collectively the "NONTRANSFERABLE CONTRACTS"), Buyer shall have the right to
require that SFI enter into such alternative arrangements and agreements with
Buyer as are reasonably practicable in order to permit Buyer to realize, receive
and enjoy substantially the full economic and legal rights and benefits,
including performing any such

                                       33
<PAGE>

Nontransferable Contract, to the extent it relates to the Business, as agent for
an for the account of Buyer, for a period up to twelve months following the
Closing Date with respect to Nontransferable Contracts of the Company and for a
period up to twelve months following the Great Lakes Stock Sale Closing Date
with respect to Nontransferable Contracts of Great Lakes; provided, that, Buyer
shall defend, indemnify, hold harmless, and reimburse SFI for any and all
claims, costs, expenses, losses and liabilities incurred in connection with such
alternative arrangements and agreements.

     12.2 Cooperation.  Buyer and SFI shall cooperate with each other and shall
cause their respective officers, employees, agents and representatives to
cooperate with each other for a period of six months after the Closing to
provide for an orderly transition of the businesses and assets conveyed
hereunder to Buyer and to minimize the disruption to the respective businesses
of the parties hereto resulting from the transactions contemplated hereby.

     12.3 Publicity.  Except as required by the Court or applicable law, SFI and
Buyer agree that, from the date hereof through the Closing Date, no public
release or announcement concerning the transactions contemplated hereby shall be
issued or made by any party without the prior consent of the other party (which
consent shall not be unreasonably withheld), except as such release or
announcement may be required by law or the rules or regulations of any United
States securities exchange, in which case the party required to make the release
or announcement, to the extent practicable, shall allow the other party
reasonable time to comment on such release or announcement in advance of such
issuance.  SFI and Buyer also shall coordinate announcements to employees of SFI
and/or the Company upon signing of this Agreement.  Notwithstanding the
foregoing, SFI and Buyer shall cooperate to prepare a joint press release to be
issued on the Closing Date and, upon the request of either SFI or Buyer, at the
time of the signing of this Agreement.  SFI and Buyer agree to keep the terms of
this Agreement confidential, except to the extent required by applicable law or
for financial reporting purposes and except that the parties may disclose such
terms to their respective accountants and other representatives as necessary in
connection with the ordinary conduct of their respective businesses (so long as
such Persons agree to keep the terms of this Agreement confidential).  It is
understood that the essential terms of this agreement may be disclosed by Buyer
to the growers who are prospective members of Buyer.

     12.4 Efforts to Close.  Subject to the terms of this Agreement, each party
shall use commercially reasonable efforts to cause the Closing to occur,
including taking all commercially reasonable actions necessary or desirable to
cause the conditions to Closing set forth in Section 7.3 hereof to be satisfied.

     12.5 Compliance.  Buyer and SFI shall each file or cause to be filed any
notifications or applications required to be filed with respect to the
transactions contemplated hereby, and any other acts, statutes, legislation or
regulations as may be applicable with respect to the transactions contemplated
hereby. Buyer and SFI shall bear the costs and expenses of their respective
filings. Buyer and SFI shall each use commercially reasonable efforts to make
such filings promptly following the date hereof, to respond to any requests for
additional information made by any applicable agencies.

                                       34
<PAGE>

     12.6 Sales and Transfer Taxes, etc.  Buyer shall pay all Transfer Taxes
that may be imposed upon Buyer or SFI as a result of the sale and transfer of
the Capital Stock and/or any of the assets to be transferred hereunder
(including without limitation any taxes, filing or recording fees or expenses
payable in connection with the sale and transfer, and recordation of such
transfer, of the Intellectual Property, and any stamp, documentary, duty or
other tax or fee chargeable in respect of any instrument transferring property),
together with any and all penalties, interest and additions to tax with respect
thereto, and SFI and Buyer shall cooperate in timely making all filings,
returns, reports and forms, as may be required to comply with the provisions of
such tax laws.  Buyer and SFI shall also cooperate in providing each other with
appropriate resale exemption certifications and other similar tax and fee
documentation.

     12.7 Books and Records.  Buyer and SFI agree that SFI may maintain copies
of any books and records and other financial data (collectively, the "RECORDS")
of the Company and/or Great Lakes.  Buyer agrees to give SFI and its
representatives reasonable cooperation, as needed, during normal business hours
and upon reasonable notice, with respect to the Records of the Company and/or
Great Lakes which the Buyer shall, directly or indirectly, obtain as a result of
the transactions contemplated hereby, and SFI agrees to give Buyer and its
representatives reasonable cooperation, as needed, during normal business hours
and upon reasonable notice, with respect to the books and records and other
financial data relating to the businesses and assets transferred hereunder and
retained by SFI, in each ease as may be necessary for general business purposes,
including the preparation of tax returns and financial statements and the
management and handling of tax audits; provided, that, such cooperation, access
and assistance does not unreasonably disrupt the normal operations of Buyer or
SFI.  All such copies of Records and any information obtained by either party in
connection with the foregoing shall be treated as confidential information under
the terms of Sections 9.7 and 11.1 hereof.

     12.8 Ancillary Agreements.  Buyer and SFI recognize that binding Ancillary
Agreements have been duly executed by all necessary parties, and that such
Ancillary Agreements operate separately and independently from this Agreement,
and shall survive any termination or expiration of this Agreement.

     12.9 Use of Trademarks.  SFI agrees that Buyer shall be permitted, for the
term of the Marketing Agreement to use, without any further consideration,
exclusively on and in connection with the manufacture, packaging, distribution,
marketing and sale of the Products, the existing packaging materials and labels
included in the Inventory that bear any of the trademarks listed or described on
Schedule 8.3 and any of SFI's Universal Product Codes or similar bar codes
relating to the Products.

     12.10     Buyer's Covenants as to Employees.

          12.10.1   Buyer shall cause the Company and Great Lakes, each when
acquired, to honor the Current Michigan Union Contract (as defined hereinabove)
and the Current Ohio Union Contract (as defined hereinabove), as such may be
amended.  SFI shall cause the Company and/or Great Lakes to use their best
efforts to negotiate a one (1) year extension to the existing union contracts,
and Buyer shall use its best efforts to cooperate with SFI in connection with
said negotiations.

                                       35
<PAGE>

          12.10.2   Buyer understands and acknowledges that a number of
employees integral to the operation of the Company and/or Great Lakes are
presently employed by Imperial Distributing, Inc. ("IDI"), which employees are
listed on Schedule 12.10.2 (the "IDI EMPLOYEES"). Buyer agrees to extend, or to
cause the Buyer to extend, on the Closing Date offers of employment to each of
the IDI Employees for positions substantially similar to such employees'
positions immediately prior to Closing and at salary or wages, as the case may
be, at least as great as the salary or wages such employee had immediately prior
to Closing, which employment would begin on the Closing Date.

          12.10.3   Buyer shall also provide, or shall cause the Company to
provide, to the IDI Employees specific employee benefit plans and arrangements
as provided in this Section.  For those IDI employees who accept employment with
Buyer or the Company and those employees employed by the Company at Closing,
Buyer shall offer, or shall cause the Company to offer, immediately following
the Closing, to such employees employee benefits that, in the aggregate, are
substantially comparable to those employee benefits (including but not limited
to group health insurance and other insurance plans) which such employees were
provided with when employed by Imperial, SFI, IDI or the Company immediately
prior to the Closing.

          12.10.4   With respect to those IDI Employees who accept employment
with Buyer or the Company at or after Closing, Buyer shall be, or shall cause
the Company to be, solely responsible for all severance and benefit claims
related to the such employees while employed by Buyer or the Company, and SFI
shall be, or shall cause IDI to be, solely responsible for all severance and
benefit claims related to the such employees while employed by IDI. With respect
to those IDI Employees who do not accept employment with Buyer or the Company at
or after Closing, SFI shall be, or shall cause IDI to be, solely responsible for
all severance and benefit claims related to the such employees for time periods
while employed by IDI.  Buyer shall immediately reimburse SFI for any expenses
incurred by SFI and/or IDI which are the responsibility of Buyer or the Company
pursuant to this Section 12.10, and SFI shall immediately reimburse Buyer for
any expenses incurred by Buyer or the Company which are the responsibility of
SFI or IDI pursuant to this Section 12.10.

          12.10.5   With respect to those IDI Employees who accept employment
with Buyer or the Company and are on disability leave, authorized leave of
absence, military service, or lay-off at the time of Closing shall continue to
be employed by Buyer or the Company at least to the same extent, if any, as IDI
would be required to offer or continue employment in accordance with applicable
Law.

          12.10.6   Buyer shall cooperate with SFI and/or IDI in making any
notices required by the Workers Adjustment Retraining Notification Act or other
Federal or state laws, if applicable.

          12.10.7   For all IDI Employees and all employees of the Company,
Buyer shall grant service credit under Buyer's or the Company's employee benefit
plans for eligibility and for vesting purposes equal to years of service with
SFI, IDI or the Company, as the case may be.

                                       36
<PAGE>

          12.10.8   IDI Employees, the Company's employees, and their dependents
shall be entitled to participate in Buyer's or the Company's employee benefit
plans as of and after the Closing Date and Buyer will contact Buyer's benefit
providers and use its reasonable efforts to attempt to obtain waivers as to any
preexisting conditions and restrictions under Buyer's employee welfare benefit
plans to the extent these conditions and restrictions have been waived under
Imperial's applicable plans and will use its reasonable efforts to attempt to
induce said benefit providers to honor any deductible and out-of-pocket expenses
incurred by Employees and their dependents under Imperial's plans during the
portion of the calendar year preceding the Closing Date.

          12.10.9   SFI shall retain and be responsible for, and shall indemnify
and hold harmless Buyer and the Company against all liabilities in connection
with claims incurred prior to the Closing Date by employees of the Company and
other current and former employees of the Company associated with the Company
prior to Closing Date and their eligible dependents under any of the employee
welfare benefit plans (as described in Section 3(1) of ERISA) which covered said
employees and dependents, including claims incurred prior to the Closing Date
filed following the Closing Date.  Buyer and the Company shall be responsible
for all liabilities in connection with claims incurred on and after the Closing
Date by employees or their dependents under any of Buyer's or the Company's
employee welfare benefit plans (as defined in Section 3(1) of ERISA) covering
such employees or dependents.  For purposes of this Section, a claim shall be
incurred on the date treatment or service is first rendered.

          12.10.10   At and after Closing, Buyer will, or will cause the
Company to, assume and pay, or make available, to each IDI Employee and each
employee of the Company, all vacation earned and accrued but not paid prior to
the Closing Date.  At and after Closing, IDI Employees and the employees of the
Company shall commence accruing vacation pursuant to Buyer's or the Company's
vacation policies existing at the Closing Date.  At and after Closing, Buyer
will, or will cause the Company to, honor all personal and sick days accrued by
IDI Employees and employees of the Company prior to the Closing Date to the same
extent required to be honored under such employee's plans, programs, policies
and arrangements as of the Closing Date.

          12.10.11    Effective as of the Closing Date, the accrual of benefits
by the IDI Employees or the Company's employees under Imperial's or its
Affiliates pension plans ("IMPERIAL'S PENSION PLANS") by the IDI Employees and
the Company's employees shall cease.  SFI shall thereafter cause to be paid to
the IDI Employees and the Company Employees the benefits vested and accrued
under Imperial's Pension Plans when the same shall be payable pursuant to the
terms thereof.

          12.10.12    SFI shall retain and be responsible for, and shall
indemnify and hold harmless Buyer and the Company against all liabilities in
connection with claims arising out of or in connection with a breach of
fiduciary duty or violation of the applicable requirements of ERISA, the Code
and other applicable laws occurring prior to the Closing Date with respect to
each employee benefit plan covering employees of the Company and occurring prior
to the Great Lakes Stock Sale Date with respect to each employee benefit plan
covering employees of Great

                                       37
<PAGE>

Lakes. Likewise, Buyer and the Company shall be responsible for, and shall
indemnify and hold Imperial, SFI and their respective Affiliates harmless, from
and against all liabilities in connection with claims arising out of or in
connection with a breach of fiduciary duty or violation of the applicable
requirements of ERISA, the Code, or any other applicable laws occurring after
the Closing Date with respect to each of Buyer's or the Company's employee
benefit plans and after the Great Lakes Stock Sale Closing Date with respect to
each of Great Lake's employee benefit plans.

          12.10.13    Within 90 days of the Closing Date, Buyer shall extend
coverage to the IDI Employees hired by the Buyer or the Company at Closing and
to the Company's employees under Buyer's defined contribution plan qualified
under Section 401(k) of the Code ("BUYER'S SAVINGS PLAN").  Within 180 days
after the receipt (i) by SFI of a copy of Buyer's Savings Plan and either the
most recent IRS determination letter received by Buyer in respect of Buyer's
Savings Plan or an opinion of Buyer's counsel stating that the form of Buyer's
Savings Plan meets in all material respects the qualification requirements under
Section 401(a) of the Code and (ii) by Buyer of a copy of SFI's savings plan and
either the most recent IRS determination letter received by SFI in respect of
SFI's savings plan or an opinion of SFI's counsel stating that the form of SFI's
savings plan meets in all material respects the qualification requirements under
Section 401(a) of the Code, whichever is later, SFI shall cause the Trustees of
SFI's savings plan to transfer to the Trustees of Buyer's Savings Plan an amount
in cash equal to the aggregate account balances of said employees.

          12.10.14    Buyer and SFI agree to cooperate with one another and to
exchange such records and other information as may be necessary from time to
time to effectuate the agreements set forth in this Section 12.10.

          12.10.15    Not later than 21 days prior to Closing, Buyer shall
deliver to SFI the terms and conditions of employment, including but not limited
to the terms of all employee benefits, which will apply to the IDI Employees and
the Company's employees following Closing. Not later than 21 days prior to Great
Lakes Stock Sale Closing, Buyer shall deliver to SFI the terms and conditions of
employment, including but not limited to the terms of all employee benefits,
which will apply to the Great Lake's employees following the Great Lakes Stock
Sale Closing.

          12.10.16    Buyer acknowledges that all of the Company's and Great
Lakes' employee benefit plans are maintained by Imperial for Imperial and some
or all of its various affiliates, rather than solely by the Company and/or Great
Lakes, with the exception of the Company's group health and insurance plans
which are maintained by the Company for the Company and Great Lakes.
Accordingly, Buyer acknowledges that, at the Closing, the Company's
participation in all employee benefit plans not maintained solely by the Company
shall terminate, and Buyer shall be solely responsible for providing any
successor or alternate plans.  Similarly, Buyer acknowledges that, at the Great
Lakes Stock Sales Closing Date, Great Lakes' participation in all employee
benefit plans not maintained solely by the Great Lakes shall terminate, and
Buyer shall be solely responsible for providing any successor or alternate
plans.

          12.10.17    Prior to the Closing, SFI shall contribute the amount
necessary, if

                                       38
<PAGE>

any, to each employee pension benefit plan maintained by Company pursuant to a
collective bargaining agreement (other than a multiemployer plan within the
meaning of Section 3(37) of ERISA) such that after such contribution the market
value of the assets under such plan equals or exceeds the present value of all
vested and nonvested liabilities thereunder determined in accordance with
Pension benefit Guaranty Corporation (PBGC) methods, factors, and assumption
applicable to an employee pension benefit plan terminating as of the Closing.
SFI shall indemnify and hold harmless the Buyer and the Company against any
funding shortfall existing in such plan as of the Closing.

          12.10.18  Buyer covenants and agrees that, as of the Closing, Buyer
assumes all obligations relating to post-retirement welfare plans covering
employees or former employees of the Company or its subsidiaries, which
obligation is summarized in the attached Schedule 12.10.18.

     12.11  Further Assurances.  From time to time, as when requested by any
party hereto, the other party hereto shall execute and deliver, or cause to be
executed and delivered, all such documents and instruments and shall take, or
cause to be taken, all such further or other actions, as such other party may
reasonably deem necessary or desirable to consummate the transactions
contemplated by this Agreement.

                                   ARTICLE 13

                                INDEMNIFICATION

     13.1 Indemnification.

          13.1.1  Indemnification by SFI:  SFI shall indemnify Buyer, its
Affiliates and each of their respective officers, directors, employees and
agents and hold them harmless from any loss, Liability, damage or expense
(including reasonable legal fees and expenses) ("LOSSES") suffered or incurred
by any such indemnified party to the extent arising from (i) any breach of any
representation or warranty of SFI contained in this Agreement or (ii) any breach
of any covenant of SFI contained in this Agreement; provided, however, that, SFI
shall not have any liability under clauses (i) and (ii) above unless the
aggregate of all Losses relating thereto for which SFI would, but for this
proviso, be jointly and severally liable exceeds on a cumulative basis an amount
equal to $250,000.00 in the aggregate (the "SFI BASKET AMOUNT"), in which case
SFI shall be obligated, to indemnify any such indemnified party for the entire
amount of all such Losses without deduction; provided further, however, that the
aggregate liability of SFI under clauses (i) and (ii) of above shall in no event
exceed $20,000,000 (the "SFI CAP AMOUNT"). In the event SFI fails to perform its
obligations under this Section 13.1.1 and, upon written notice to Imperial by
Buyer within 15 days of such failure to perform by SFI, Imperial shall indemnify
Buyer under the terms of this 13.1.1, provided that the aggregate liability of
Imperial under Section 13.1.1 shall not exceed $10,000,000.

          13.1.2  Indemnification by Ragus: Ragus shall indemnify Buyer, its
Affiliates and each of their respective officers, directors, employees and
agents and hold them harmless from

                                       39
<PAGE>

all Losses suffered or incurred by any such indemnified party to the extent
arising from (i) any breach of any representation or warranty of Ragus contained
in this Agreement or (ii) any breach of any covenant of Ragus contained in this
Agreement; provided, however, that, Ragus shall not have any liability under
clauses (i) and (ii) above unless the aggregate of all Losses relating thereto
for which Ragus would, but for this proviso, be jointly and severally liable
exceeds on a cumulative basis an amount equal to $10,000.00 in the aggregate
(the "RAGUS BASKET AMOUNT"), in which case Ragus shall be obligated, to
indemnify any such indemnified party for the entire amount of all such Losses
without deduction; provided further, however, that the aggregate liability of
Ragus under clauses (i) and (ii) of above shall in no event exceed $250,000 (the
"RAGUS CAP AMOUNT").

          13.1.3  Indemnification by Imperial:  Imperial shall indemnify Buyer,
its Affiliates and each of their respective officers, directors, employees and
agents and hold them harmless from any loss, Liability, damage or expense
(including reasonable legal fees and expenses) ("LOSSES") suffered or incurred
by any such indemnified party to the extent arising from (i) any breach of any
representation or warranty of Imperial contained in this Agreement or (ii) any
breach of any covenant of Imperial contained in this Agreement; provided,
however, that, Imperial shall not have any liability under clauses (i) and (ii)
above unless the aggregate of all Losses relating thereto for which Imperial
would, but for this proviso, be jointly and severally liable exceeds on a
cumulative basis an amount equal to $100,000.00 in the aggregate (the "IMPERIAL
BASKET AMOUNT"), in which case Imperial shall be obligated, to indemnify any
such indemnified party for the entire amount of all such Losses without
deduction; provided further, however, that the aggregate liability of Imperial
under clauses (i) and (ii) of above shall in no event exceed $1,000,000.00 (the
"IMPERIAL CAP AMOUNT").

     13.2 Exclusive Remedy.  Except as otherwise expressly provided in the
Ancillary Agreements, each party acknowledges and agrees that, from and after
the Closing, its sole and exclusive remedy with respect to any and all claims
relating to the subject matter of this Agreement shall be pursuant to the
indemnification provisions set forth in this Article 13.  In furtherance of the
foregoing, each  party hereby waives, from and after the Closing, to the fullest
extent permitted under applicable law, any and all rights, claims and causes of
action (other than tort claims of, or causes of action arising from, fraudulent
misrepresentation or fraudulent breach) it may have against the other party or
its Affiliates relating to the subject matter of this Agreement arising under or
based upon any federal, state, local or foreign statute, law, ordinance, rule or
regulation or otherwise.

     13.3 Indemnification by Buyer.  Buyer shall indemnify Imperial, SFI, Ragus
and their respective Affiliates, officers, directors, employees, attorneys, and
agents against and hold them harmless from any Losses suffered or incurred by
any such indemnified party to the extent arising from (i) any breach of any
representation or warranty of Buyer contained in this Agreement, or (ii) any
breach of any covenant of Buyer contained in this Agreement, specifically
including but not limited to the timely payment and satisfaction in full of the
IDB's as set forth in Section 11.5; provided, however, that, Buyer shall not
have any liability under clauses (i) and (ii) above unless the aggregate of all
Losses relating thereto for which Buyer would, but for this proviso, be liable
exceeds on a cumulative basis the SFI Basket Amount, in which case Buyer shall
be obligated to indemnify any such indemnified party for the entire amount of
all such

                                       40
<PAGE>

Losses without deduction; provided further, however, that the aggregate
liability of Buyer under clauses (i) and (ii) of above shall in no event exceed
the SFI Cap Amount.

     13.4 Calculation of Losses.  The amount of any and all Losses under this
Article 13 shall be determined net of any amounts recovered by the indemnified
party under any third-party insurance policies (but not self-insurance policies)
that may be in effect with respect to such Losses.  Any indemnity payment under
this Agreement shall be treated as an adjustment to the Final Purchase Price for
tax purposes.  Notwithstanding anything contained in this Agreement to the
contrary, no party hereto shall be entitled to make a claim against any other
party to this Agreement for, or recover from any other party to this Agreement,
lost profits or any consequential, indirect or punitive damages.

     13.5 Termination of Indemnification.  The obligations to indemnify and hold
harmless a party hereto pursuant to Sections 13.1 or 13.3 shall terminate with
respect to a breach of a representation or warranty when any such representation
or warranty terminates pursuant to Section 14.4 and shall terminate with respect
to a breach of a covenant 12 months after the period of performance of any such
covenant has expired; provided, however, that such obligations to indemnify and
hold harmless shall not terminate with respect to any representation, warranty
or covenant as to which the Person to be indemnified or the related party
thereto shall have, prior to the expiration of the termination of the applicable
period, previously made a claim by delivering a written notice (stating in
reasonable detail the nature of, and factual basis for, any such claim for
indemnification, and the provisions of this Agreement upon which such claim for
indemnification is made) to the indemnifying party.

     13.6 Procedures Relating to Indemnification.

          13.6.1    In order for a party (the "INDEMNIFIED PARTY") to be
entitled to any indemnification provided for under this Article 13 in respect
of, arising out of or involving a claim or demand made by any Person against the
indemnified party (a "THIRD PARTY CLAIM"), such indemnified party must notify
the indemnifying party in writing, and in reasonable detail, of the Third Party
Claim as promptly as reasonably possible after receipt by such indemnified party
of notice of the Third Party Claim but in no event later than twenty (20) days;
provided, however, that failure to give such notification on a timely basis
shall not affect the indemnification provided hereunder except to the extent the
indemnifying party shall have been actually prejudiced as a result of such
failure.  Thereafter, the indemnified party shall deliver to the indemnifying
party, as soon as practicable after the indemnified party's receipt thereof
copies of all notices and documents (including court papers) received by the
indemnified party relating to the Third Party Claim.

          13.6.2     If a Third Party Claim is made against an indemnified
party, the indemnifying party shall be entitled to participate in the defense
thereof and, if it so chooses and acknowledges its indemnification
responsibility hereunder, to assume the defense thereof with counsel selected by
the indemnifying party and reasonably satisfactory to the indemnified party.
Notwithstanding any acknowledgment made pursuant to the immediately preceding
sentence, the indemnifying party shall continue to be entitled to assert any
limitation on its indemnification responsibility contained in the provisos to
Section 13.1 or Section 13.3, as applicable.  Should

                                       41
<PAGE>

the indemnifying party so elect to assume the defense of a Third Party Claim,
the indemnifying party shall not be liable to the indemnified party for legal
expenses subsequently incurred by the indemnified party in connection with the
defense thereof, unless at the request of the indemnifying party. If the
indemnifying party assumes such defense, the indemnified party shall have the
right to participate in the defense thereof and to employ counsel, at its own
expense (which expense shall not constitute a Loss unless the indemnified party
reasonably determines that the indemnifying party is not adequately representing
or, because of a conflict of interest, may not adequately represent, any
interests of the indemnified party, and only to the extent that such expenses
are reasonable), separate from the counsel employed by the indemnifying party,
it being understood, however, that the indemnifying party shall control such
defense. The indemnifying party shall be liable for the fees and expenses of
counsel employed by the indemnified party for any period during which the
indemnifying party has not assumed the defense thereof. If the indemnifying
party chooses to defend any Third Party Claim, all the parties hereto shall
cooperate in the defense or prosecution of such Third Party Claim. Such
cooperation shall include the retention and (upon the indemnifying party's
request) the provision to the indemnifying party of records and information
which are reasonably relevant to such Third Party Claim, and making employees
available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder. In connection with any Third
Party Claim which the indemnifying party has elected to defend, the indemnifying
party shall not, in defense of such Third Party Claim, except with the prior
written consent of the indemnified party, consent to the entry of any judgment
or enter into any settlement which provides for any relief other than the
payment of monetary damages to be paid solely by the indemnifying party and
which does not include as an unconditional term thereof the giving to the
indemnified party by the claimant or plaintiff of such Third Party Claim of a
release from all liability in respect thereof. Whether or not the indemnifying
party shall have assumed the defense of a Third Party Claim, the indemnified
party shall not admit any liability with respect to, or settle, compromise or
discharge, such Third Party Claim without the indemnifying party's prior written
consent (which consent shall not be unreasonably withheld).

                                   ARTICLE 14

                                 MISCELLANEOUS

     14.1 Assignment.  Except as set forth below, this Agreement and any rights
and obligations hereunder shall not be assignable or transferable by any party
hereto without the prior written consent of all other parties hereto, which may
be withheld for any or no reason, and any purported assignment without such
consent shall be void and without effect; provided that, with respect to any
assignment by Buyer which is approved with the prior written consent of SFI,
Buyer shall not be relieved of any of Buyer's obligations or liabilities
hereunder, and Buyer shall remain primarily liable hereunder for all obligations
and liabilities of Buyer, whether due or arising before or after any such
assignment.

     14.2 No Third-Party Beneficiaries.  This Agreement is for the sole benefit
of the parties hereto and their permitted assigns and nothing herein express or
implied shall give or be construed to give to any Person, including any employee
of a party hereto, other than the parties

                                       42
<PAGE>

hereto and such permitted assigns, any legal or equitable rights hereunder.

     14.3 Termination.

          14.3.1  Anything contained herein to the contrary notwithstanding this
Agreement may be terminated and the transactions contemplated hereby abandoned
at anytime prior to the Closing Date:

          14.3.1.1  by mutual written consent of SFI and Buyer;

          14.3.1.2  by SFI if any of the conditions set forth in Section 7.3.2
shall have become incapable of fulfillment and shall not have been waived by
SFI; provided, however, that the party seeking termination pursuant to this
subparagraph is not in breach of any of its representations, warranties,
covenants or agreements contained in this Agreement;

          14.3.1.3  by Buyer if any of the conditions set forth in Section
7.3.1.1, Section 7.3.1.2, Section 7.3.1.3, Section 7.3.1.4, Section 7.3.1.5, or
Section 7.3.1.6 shall have become incapable of fulfillment, and shall not have
been waived by Buyer provided, however, that the party seeking termination
pursuant to this subparagraph is not in breach of any of its representations,
warranties, covenants or agreements contained in this Agreement;

          14.3.1.4  by SFI or Buyer (A) if the Closing does not occur on or
prior to February 28, 2002 or (B) the Sale Order has not been entered on or
prior to September 30, 2001; provided, however, that the party seeking
termination pursuant to this Section 14.3.1.4 is not in breach of any of its
representations, warranties, covenants or agreements contained in this
Agreement;

          14.3.1.5  by Buyer if SFI breaches its covenants contained in Section
9.1 and fails to cure such breach within ten days after receiving written notice
therefrom from Buyer;

          14.3.1.6  by either Buyer or SFI upon the entry of an order of the
Court authorizing the sale of the Capital Stock, or any portion thereof, to a
Person other than Buyer, and any such sale to a Person other than Buyer is
closed prior to 2/28/2002;

          14.3.1.7  by either Buyer or SFI if the Cases are dismissed or
converted to a Chapter 7 proceeding pursuant to the provisions of the Bankruptcy
Code;

          14.3.1.8  by Buyer if the Interim Order is not entered on or prior to
August 30, 2001;

          14.3.1.9  by Buyer if Buyer has not received, on or prior to the date
on which the Court hears the motion for approval of the Interim Order, evidence,
in a form reasonably satisfactory to Buyer (the "CREDITOR ASSURANCE"), that
Harris Trust, as agent for the pre-petition secured creditors in the Cases, will
support without reservation SFI's motion for the approval of the Interim Order;
provided, that, Buyer's right to terminate this Agreement and the transactions
contemplated hereby pursuant to this Section 14.3.1.9 shall terminate in the
event

                                       43
<PAGE>

that the Interim Order, in a form substantially similar to the form attached
hereto or such other form as is acceptable to Buyer, is entered.

     14.3.2  In the event of termination by SFI or Buyer pursuant to Section
14.3.1, written notice thereof shall forthwith be given to the other party and
the transactions contemplated by this Agreement shall be terminated, without
further action by any party.  If the transactions contemplated by this Agreement
are terminated as provided herein:

          14.3.2.1  Buyer shall return all documents and copies and other
materials received from or on behalf of SFI relating to the transactions
contemplated hereby, whether obtained before or after the execution hereof, to
SFI;

          14.3.2.2  All confidential information received by Buyer with respect
to the Assets, the Assumed Liabilities and the Business shall be treated in
accordance with the Confidentiality Agreement, which shall remain in full force
and effect notwithstanding the termination of this Agreement;

          14.3.2.3  If this Agreement is terminated and the transactions
contemplated hereby are abandoned as described in this Section 14.3, this
Agreement shall become void and of no further force and effect, except for the
provisions of (i) Sections 9.7 and 11.1 relating to confidentiality, (ii)
Section 12.3 relating to publicity, (iii) Section 14.5 relating to certain
expenses, (iv) Section 14.18 relating to dispute resolution, (v) this Section
14.3, (vi) the Facility Lease Agreement, (vii) the Marketing Agreement, and
(viii) the Factories Management Agreement.  Nothing in this Section 14.3 shall
be deemed to release any party from any liability for any breach by such party
of the terms and provisions of this Agreement prior to the date of termination
or, solely with respect to Sections 9.5, 9.6, 9.7 and 11.1, to impair the right
of any party to compel specific performance by another party of its obligations
under such Sections.

     14.4 Survival of Representations.  The representations and warranties in
this Agreement shall survive the Closing and shall terminate at the close of
business on the 15-month anniversary of the Closing Date; provided, however,
that the representations and warranties provided in (i) Article VIII which
specifically and expressly concern Great Lakes, Ragus or either of such
companies respective business, assets, liabilities or operations shall survive
the Closing and shall terminate at the close of business on the 15-month
anniversary of the Great Lakes Stock Sale Closing Date, (ii) Section 8.2 with
respect to title to assets and Section 8.3 with respect to Intellectual Property
survive the Closing for a period of three (3) years and (ii) Section 8.8 with
respect to taxes shall survive Closing for the period of the applicable statute
of limitations for actions by a taxing authority against a taxpayer.

     14.5 Expense Reimbursement and Topping Fee.  In the event that (i) SFI
terminates this Agreement under Section 14.3.1.7; (ii) Buyer terminates  this
Agreement under Section 14.3.1.3 or Section 14.3.1.4 and SFI enters into a
definitive agreement to sell or otherwise transfer the Capital Stock of the
Company to a Person other than Buyer within 12 months of such termination,
except in situations where Buyer has not been able to obtain financing adequate
to cover the purchase contemplated in this Agreement on or before 2/28/2002;  or
(iii) Buyer or SFI terminates this Agreement under Section 14.3.1.6; then SFI
shall pay to Buyer an amount equal

                                       44
<PAGE>

to (x) the amount of Buyer's reasonable, actual out-of-pocket costs and expenses
actually incurred in connection with this Agreement and the transactions
contemplated hereby (including, without limitation, reasonable expenses of
counsel, expenses of financial advisors, expenses of consultants not to exceed
$500,000 (the amount of (x), the "EXPENSE REIMBURSEMENT AMOUNT") plus (y) a fee
in the amount of $3,000,000 (the amount (y), the "TOPPING FEE"). In the event
that this Agreement is terminated under any of the circumstances described in
clauses (i), (ii) or (iii) of the preceding sentence, SFI shall pay the Expense
Reimbursement Amount after this Agreement is terminated and within fifteen (15)
days after written request therefore from Buyer which includes an itemized
statement setting forth with reasonable specificity the costs, expenses and fees
comprising the Expense Reimbursement Amount, and SFI shall pay the Topping Fee
at and only upon a closing of a sale or transfer of the Capital Stock for
aggregate consideration to SFI that is greater than the Closing Date Purchase
Price.

     14.6 Expenses.  Whether or not the transactions contemplated hereby are
consummated, and except as otherwise specifically provided in Section 12.6 or
elsewhere in this Agreement, all costs and expenses incurred in connection with
this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such costs or expenses.

     14.7 Amendment and Waiver.  This Agreement may be amended, or any provision
of this Agreement may be waived; provided that any such amendment or waiver
shall be binding only if set forth in a writing instrument executed by all
parties hereto referring specifically to the provision alleged to have been
amended or waived.  No course of dealing between or among any Persons having any
interest in this Agreement shall be deemed effective to modify, amend or
discharge any part of this Agreement or any rights or obligations of any Person
under or by reason of this Agreement.

     14.8 Notices.  All notices or other communications required or permitted to
be given hereunder shall be in writing and shall be delivered by hand or sent by
telecopy (with confirming copy sent by registered, certified or express mail or
reputable overnight courier service), or sent, postage prepaid, by registered,
certified or express mail, or reputable overnight courier service and shall be
deemed given when so delivered by hand, telexed, cabled or telecopied, or if
mailed, three days after mailing (one business day in the case of express mail
or overnight courier service), as follows:

          if to Buyer,

          Michigan Sugar Beet Growers, Inc.
          485 Plaza North
          4800 Fashion Square Blvd.
          Saginaw, Michigan 48604
          Attention:  Richard E. Leach, Jr.
          Fax: 517-792-7165

          with a copy to:

                                       45
<PAGE>

          Randon W. Wilson
          Jones, Waldo, Holbrook & McDonough
          170 South Main, Suite 1500
          Salt Lake City, Utah 84101
          Fax: (801) 328-0537

          if to SFI,

          Imperial Sugar Company
          8016 Highway 90A, P.O. Box 9
          Sugar Land, Texas  77487
          Attention:  William F. Schwer,
                      Executive Vice President and General Counsel
          Fax:  281-490-9881

          with a copy to:

          James K. Austin
          Maury B. Rothschild
          Ellis, Painter, Ratterree & Bart LLP
          2 East Bryan Street, 10th Floor
          Savannah, Georgia  31412
          Fax:  912-233-2281

     14.9 Interpretation.  The headings and captions contained in this
Agreement, in any Exhibit or Schedule hereto and in the table of contents to
this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement.  Any capitalized terms used in
any Schedule or Exhibit and not otherwise defined therein shall have the
meanings set forth in this Agreement.  The use of the word "including" herein
shall mean "including without limitation."

     14.10  No Strict Construction.  Notwithstanding the fact that this
Agreement has been drafted or prepared by one of the parties, both Buyer and SFI
confirm that both they and their respective counsel have reviewed, negotiated
and adopted this Agreement as the joint agreement and understanding of the
parties, and the language used in this Agreement shall be deemed to be the
language chosen by the parties hereto to express their mutual intent, and no
rule of strict construction shall be applied against any Person.

     14.11  Counterparts.  This Agreement may be executed in any number of
identical multiple counterparts and may be delivered by facsimile transmission
(including by means of telecopied signature pages), all of which shall be
considered one and the same agreement, and shall become effective when signed by
each of the parties and delivered to the other party.

     14.12  Entire Agreement.  This Agreement and the other agreements referred
to herein (including the Ancillary Agreements and the Confidentiality Agreement)
contain the entire agreement and understanding between the parties hereto with
respect to the subject matter hereof

                                       46
<PAGE>

and supersede all prior agreements and understandings, whether written or oral,
relating to such subject matter.

     14.13  Schedules.  The disclosures in the Schedules hereto are to be taken
as relating to the representations and warranties of each and all of the
Imperial Parties.  The inclusion of information in the Schedules hereto shall
not be construed as an admission that such information is material to the
transactions contemplated hereby.  In addition, matters reflected in the
Schedules are not necessarily limited to matters required by this Agreement to
be reflected in such Schedules.  Such additional matters are set forth for
informational purposes only and do not necessarily include other matters of a
similar nature.

     14.14  Representation by counsel; Interpretation.  The parties hereto each
acknowledges that it has been represented by counsel in connection with this
Agreement and the transactions contemplated hereby.  Accordingly, any rule of
law or any legal decision that would require interpretation of any claimed
ambiguities in this Agreement against the party that drafted it has no
application and is expressly waived.

     14.15  Severability.  Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be valid and effective under
applicable law, but if any provision of this Agreement or the application of any
such provision to any Person or circumstance shall be held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision
hereof.

     14.16  Governing Law.  This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Delaware (without giving
effect to its conflict of law principles).

     14.17  Exhibits and Schedules.  All Exhibits and Schedules annexed hereto
or referred to herein are hereby incorporated in and made a part of this
Agreement as if set forth in full herein.

     14.18  Dispute Resolution.

          14.18.1  Negotiation.  In the event of any dispute or disagreement
between the parties hereto as to the interpretation of any provision of this
Agreement (or the performance of obligations hereunder), the matter, upon
written request of any party, shall be referred to legal representatives of the
parties for decision, each party being represented by a lawyer of its choice
(the "Representatives").  The Representatives shall promptly meet in an agreed
upon fashion in good faith effort to resolve the dispute.  If the
Representatives do not agree upon a decision within 30 calendar days after
reference of the matter to them, each party shall be free to exercise the
remedies available to it under Section 14.18.2.

          14.18.2  Arbitration.   Any controversy, dispute or claim arising out
of or relating in any way to this Agreement or the other agreements contemplated
hereby or the transactions arising hereunder or thereunder (the "DISPUTE") that
cannot be resolved by negotiation pursuant to Section 14.18.1 shall, except as
otherwise provided in Section 7.2 with respect to matters to be settled pursuant
to the procedure set forth in said Section 7.2, be settled exclusively by

                                       47
<PAGE>

arbitration in the City of Chicago, Illinois, except in the event the parties
elect for the dispute to be governed by the Court, as provided for in Section
14.18.3.  Such arbitration will apply the laws of the State of Delaware and the
Commercial Arbitration Rules of the American Arbitration Association to resolve
the dispute.  Such arbitration shall be conducted by three independent and
impartial arbitrators, one of whom shall be appointed by SFI and one of whom
shall be appointed by Buyer.  The arbitrators shall render an opinion setting
forth findings of fact and conclusions of law with the reasons therefor stated.
A transcript of the evidence adduced, at the hearing shall be made and shall,
upon request, be made available to either party.  The fees and expenses of the
arbitrators shall be shared equally by the parties and advanced by them from
time to time as required; provided that at the conclusion of the arbitration,
the arbitrators may award costs and expenses (including the costs of the
arbitration previously advanced and the fees and expenses of attorneys, accounts
and other experts).  No pre-arbitration discovery shall be permitted, except
that the arbitrators shall have the power in their sole discretion, on
application by either party, to order pre-arbitration examination of the
witnesses and documents that the other party intends to introduce in its case-
in-chief at the arbitration hearing.  The arbitrators shall render their award
within 90 days of the conclusion of the arbitration hearing.  The arbitrators
shall not be empowered to award to either party any punitive damages in
connection with any dispute between them arising out of or relating in any way
to their Agreement or the other agreements contemplated hereby or the
transactions arising hereunder or thereunder, and each party hereby irrevocably
waives any right to recover such damages.  To the extent possible, the
arbitration hearings and award shall be maintained in confidence.
Notwithstanding anything to the contrary provided in this Section 14.18.2 and
without prejudice to the above procedures, either party may apply to any court
of competent jurisdiction for temporary injunctive or other provisional judicial
relief or to specifically enforce the terms of this Agreement if such action is
necessary to avoid irreparable damage or to preserve the status quo until such
time as the arbitration panel is convened and available to hear such party's
request for temporary relief.  The award rendered by the arbitrators shall be
final and not subject to judicial review and judgment thereon may be entered in
any court of competent jurisdiction.

          14.18.3  Resolution by the Court.  In the event that a Dispute, as
defined above, arises before the Cases, as defined herein, have been fully and
finally resolved before the Court, as defined herein, the parties may mutually
agree in writing to have the Dispute brought before the Court for resolution in
lieu of arbitration as provided for in Section 14.18.2.

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SIGNATURE PAGES]

                                       48
<PAGE>

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of the date first written above.

                            IMPERIAL SUGAR COMPANY

                            By: /s/ James C. Kempner
                               __________________________________

                            Name: James C. Kempner
                                 ________________________________

                            Title: President - CEO
                                   _______________________________

                            SAVANNAH FOODS & INDUSTRIES, INC.

                            By: /s/ W.F. Schwer
                               __________________________________

                            Name: W.F. Schwer
                                 ________________________________

                            Title: Sr. Vice President
                                   _______________________________

                            MICHIGAN SUGAR COMPANY, INC.

                            By: /s/ W.F. Schwer
                               __________________________________

                            Name: W.F. Schwer
                                 ________________________________

                            Title: Sr. Vice President
                                   _______________________________

                            RAGUS HOLDINGS, INC.

                            By: /s/ W.F. Schwer
                               __________________________________

                            Name: W.F. Schwer
                                 ________________________________

                            Title: President
                                   _______________________________

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SIGNATURE PAGE]

                                       49
<PAGE>

                            MICHIGAN SUGAR BEET GROWERS, INC.

                            By: /s/ Richard J. Maurer
                               ___________________________________
                                Name: Richard J. Maurer
                                Title: Chairman of the Board

                                       50
<PAGE>

                       STOCK &  ASSET PURCHASE AGREEMENT

                               LIST OF EXHIBITS

Exhibit A:                  Marketing Agreement

Exhibit B:                  Facility Lease Agreement

Exhibit C:                  Factories Management Agreement

Exhibit D:                  Interim Order

Exhibit E:                  Security Agreement

Exhibit F:                  Royalty Free License to use the Caro Water
                            Processing Process

Exhibit G:                  Confidentiality Agreement

                                       1
<PAGE>

                       STOCK &  ASSET PURCHASE AGREEMENT

                               LIST OF SCHEDULES

Schedule 1.13:              Inventory Amount Formula

Schedule 1.17:              List of Products of the Company

Schedule 1.19:              Senior Secured Lenders of Imperial

Schedule 2.5:               Buyer's Senior Debt

Schedule 4.1:               Ragus Assets

Schedule 8.1.1:             The Imperial Contracts (third party consent/approval
                            required)

Schedule 8.1.2:             SFI Contracts, Company Contracts, Great Lakes
                            Contracts (third party consent/approval required)

Schedule 8.1.3:             Ragus Contracts (third party consent/approval
                            required)

Schedule 8.2.2:             Company Permitted Liens

Schedule 8.2.4:             Great Lakes Permitted Liens

Schedule 8.2.5:             Ragus Permitted Liens

Schedule 8.3:               Intellectual Property Issues

Schedule 8.4.1:             Contracts/Agreements of the Company or Great Lakes
                            outside ordinary course

Schedule 8.4.2:             Breach or default of any contracts listed on
                            Schedule 8.4.1

Schedule 8.5:               Litigation/decrees involving the Company or Great
                            Lakes

Schedule 8.6:               Material changes in the business of the Company or
                            Great Lakes

Schedule 8.7.1:             Food Safety Government Communications

Schedule 8.7.2:             Licenses, permits and certificates other than
                            licenses applicable to all businesses

                                       1
<PAGE>

Schedule 8.8:               Tax returns/reports

Schedule 8.11:              Company Employees and Great Lakes Employees

Schedule 8.14:              Financial Liabilities and obligations of the Company

Schedule 8.15:              Financial Liabilities and obligations of Great Lakes

Schedule 9.2:               Changes in Operations pending Closing - Company

Schedule 9.3:               Changes in Operations pending Sale - Great Lakes

Schedule 9.11.1:            Computer software and hardware

Schedule 9.11.2:            Computer software and hardware

Schedule 11.6:              Addendums to Ancillary Agreements

Schedule 12.10.2:           List of IDI Employees

Schedule 12.10.18:          Retiree Medical Obligations

       [THE FOLLOWING SCHEDULES ARE BEING PROVIDED AS OF AUGUST 10, 2001,
         AND MAY BE SUPPLEMENTED UP TO AND INCLUDING THE CLOSING DATE]

                                       2<PAGE>

                                                                     EXHIBIT 4.7

                         REGISTRATION RIGHTS AGREEMENT

                           Dated as of June 28, 2001

                                     among

                         Encompass Services Corporation

                                      and

                  The Subsidiaries Named in Schedule 1 hereto

                                 as Guarantors

                                      and

                           JP Morgan Securities Inc.

                   and the several Initial Purchasers listed

                              in Schedule 2 hereto

                                       as

                               Initial Purchasers
<PAGE>

                               TABLE OF CONTENTS

1.   Definitions                                        1
       1933 Act                                         1
       1934 Act                                         1
       Broker Prospectus Period                         1
       Depositary                                       1
       Exchange Notes                                   1
       Exchange Offer                                   2
       Exchange Offer Registration                      2
       Exchange Offer Registration Statement            2
       Exchange Period                                  2
       Holders                                          2
       Holders' Counsel                                 2
       Indenture                                        2
       Initial Purchasers                               2
       Majority Holders                                 2
       Original Issue Date                              3
       Participating Broker-Dealer                      3
       Person                                           3
       Prospectus                                       3
       Purchase Agreement                               3
       Registration Default                             3
       Registration Expenses                            3
       Registration Statement                           4
       SEC                                              4
       Shelf Registration                               4
       Shelf Registration Statement                     4
       Transfer Restricted Notes                        4
       Trustee                                          5

2.   Registration Under the 1933 Act                    5
       (a)  Exchange Offer Registration                 5
       (b)  Shelf Registration                          7
       (c)  Expenses                                    8
       (d)  Effective Registration Statement            9
       (e)  Accrual and Payment of Additional Interest 10
       (f)  Specific Enforcement                       11

                                       i
<PAGE>

3.   Registration Procedures                            11

4.   Underwritten Registrations                         20

5.   Indemnification and Contribution                   20

6.   Miscellaneous                                      24
          (a)  Rule 144 and Rule 144A                   24
          (b)  No Inconsistent Agreements               24
          (c)  Amendments and Waivers                   25
          (d)  Notices                                  25
          (e)  Successors and Assigns                   25
          (f)  Third Party Beneficiary                  25
          (g)  Counterparts                             26
          (h)  Headings                                 26
          (i)  Governing Law                            26
          (j)  Entire Agreement                         26
          (k)  Severability                             26

                                       ii
<PAGE>

                         REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made and
entered into as of June 28, 2001, by and among ENCOMPASS SERVICES CORPORATION, a
Texas corporation (the "Company"), the subsidiaries named in Schedule 1 hereto
(the "Guarantors" and, together with the Company, the "Issuers") and JP MORGAN
SECURITIES INC. ("JP Morgan") and the several Initial Purchasers listed on
Schedule 2 hereto (collectively with JP Morgan, the "Initial Purchasers").

          This Agreement is made pursuant to the Purchase Agreement dated June
14, 2001 among the Company, the Guarantors and the Initial Purchasers (the
"Purchase Agreement"), with respect to the issue and sale by the Company and the
purchase by the Initial Purchasers of $135,000,000 aggregate principal amount of
the Company's 10 1/2% Senior Subordinated Notes due 2009 in respect of which the
Guarantors have provided guarantees (together with such guarantees, the
"Notes").  In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the Issuers have agreed to provide to the Initial Purchasers and
their respective direct and indirect transferees and assigns the registration
rights set forth in this Agreement.  The execution and delivery of this
Agreement is a condition to the closing under the Purchase Agreement.

          In consideration of the foregoing, the parties hereto agree as
follows:

          1.  Definitions.  As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

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

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

          "Broker Prospectus Period" shall have the meaning set forth in Section
     3(f)(C).

          "Depositary" shall mean The Depository Trust Company, or any other
     depositary appointed by the Company; provided, however, that any such
     depositary must have an address in the Borough of Manhattan, in the City of
     New York.

          "Exchange Notes" shall mean 10 1/2% Senior Subordinated Notes due 2009
     of the Company including the guarantees thereof, issued under the Indenture
     containing terms identical to the respective Notes (except that (i)
     interest on the Exchange Notes shall accrue from the last date on which
     interest was paid on the Notes or, if no such interest has been paid, from
     [          ], 2001, (ii) certain transfer restrictions thereon shall be
     eliminated and (iii) certain provisions relating to payment of additional
     inter-
<PAGE>

     est shall be eliminated) to be offered to Holders of Notes in exchange for
     Notes pursuant to the Exchange Offer.

          "Exchange Offer" shall mean the exchange offer by the Company to
     exchange Exchange Notes for Transfer Restricted Notes pursuant to Section
     2(a) and the other provisions of this Agreement.

          "Exchange Offer Registration" shall mean a registration under the 1933
     Act effected pursuant to Section 2(a) hereof.

          "Exchange Offer Registration Statement" shall mean an exchange offer
     registration statement on Form S-4 (or, if applicable, on another
     appropriate form), and all amendments and supplements to such registration
     statement, in each case including the Prospectus contained therein, all
     exhibits thereto and all material incorporated by reference therein.

          "Exchange Period" shall have the meaning set forth in Section 2(a).

          "Holders" shall mean the Initial Purchasers, for so long as they own
     any Transfer Restricted Notes, and each of their respective successors,
     assigns and direct and indirect transferees who become registered owners of
     Transfer Restricted Notes under the Indenture.

          "Holders' Counsel'" shall mean an external United States counsel and
     external local counsel designated by the underwriters (or if an offering is
     not underwritten, by the Majority Holders) to represent them in connection
     with a Shelf Registration Statement.

          "Indenture" shall mean the Indenture relating to the Notes and the
     Exchange Notes dated as of April 30, 1999, as amended, among the Company,
     the guarantors named therein and The Bank of New York, as trustee (the
     "Trustee"), and as the same may be amended, modified or supplemented from
     time to time in accordance with the terms thereof.

          "Initial Purchasers" shall have the meaning set forth in the preamble
     of this Agreement.

          "Majority Holders" shall mean the Holders of a majority of the
     aggregate principal amount of Transfer Restricted Notes outstanding;
     provided that whenever the consent or approval of Holders of a specified
     percentage of Transfer Restricted Notes is required hereunder, Transfer
     Restricted Notes held by the Company or any of its affiliates (as such term
     is defined in Rule 405 under the 1933 Act) shall be disregarded in
     determining whether such consent or approval was given by the Holders of
     such required percentage or amount.

                                       2
<PAGE>

          "Original Issue Date" shall mean the date of original issuance of the
     Notes.

          "Participating Broker-Dealer" shall have the meaning set forth in
     Section 3(f).

          "Person" shall mean any individual, corporation, limited liability
     company, partnership, joint venture, association, joint-stock company,
     trust, unincorporated organization or government or any agency or political
     subdivision thereof

          "Prospectus" shall mean the prospectus included in a Registration
     Statement, including any preliminary prospectus, and any such prospectus as
     amended or supplemented by any prospectus supplement, including a
     prospectus supplement with respect to the terms of the offering of any
     portion of the Transfer Restricted Notes covered by a Shelf Registration
     Statement, and by all other amendments and supplements to a prospectus,
     including post-effective amendments, and in each case including all
     material incorporated by reference therein.

          "Purchase Agreement" shall have the meaning set forth in the preamble
     of this Agreement.

          "Registration Default" shall have the meaning set forth in Section
     2(e).

          "Registration Expenses" shall mean any and all expenses incident to
     performance of or compliance by the Issuers with this Agreement, including
     without limitation: (i) all SEC, stock exchange or National Association of
     Securities Dealers, Inc. ("NASD") registration and filing fees, (ii) all
     fees and expenses incurred in connection with compliance with state or
     other securities or blue sky laws and compliance with the rules of the NASD
     (including, without limitation, in the case of an underwritten offering the
     reasonable fees and disbursements of Holders' Counsel in connection with
     state or other securities or blue sky qualification of any of the Transfer
     Restricted Notes), (iii) all expenses (including without limitation all
     duplicating and printing expenses, messenger and delivery expenses) of any
     Persons in preparing, printing and distributing any Registration Statement,
     any Prospectus, any amendments or supplements thereto, any underwriting
     agreements, securities sales agreements, certificates representing the
     Exchange Notes and other documents relating to the performance of and
     compliance with this Agreement, (iv) all rating agency fees, (v) all fees
     and expenses incurred in connection with the listing, if any, of any of the
     Transfer Restricted Notes on any securities exchange or exchanges, (vi) all
     fees and disbursements relating to the qualification of the Indenture under
     applicable securities laws, (vii) the reasonable fees and disbursements of
     counsel for the Company and of the independent public accountants of the
     Company and of any other experts retained by the Company, including the
     expenses of any special audits or "cold comfort" letters required by or
     incident to such performance and compliance, (viii) premiums and other
     costs of policies of any insurance maintained by the Company against
     liabilities arising out of the public offering of the Transfer Restricted
     Notes being registered, (ix) the fees and ex-

                                       3
<PAGE>

     penses of a "qualified independent underwriter" as defined by Conduct Rule
     2720 of the NASD, if required by the NASD rules, in connection with the
     offering of the Transfer Restricted Notes in an underwritten offering, (x)
     the reasonable fees and expenses of the Trustee, including its counsel.
     Notwithstanding the foregoing, the Holders of the Transfer Restricted Notes
     being registered shall pay all agency or brokerage fees and commissions and
     underwriting discounts and commissions attributable to the sale of such
     Transfer Restricted Notes and the fees and disbursements of any counsel or
     other advisors or experts retained by such holders (severally or jointly)
     (excluding advisors or other experts retained by the Company, as
     aforesaid).

          "Registration Statement" shall mean any registration statement of the
     Issuers which covers any of the Exchange Notes or Transfer Restricted Notes
     pursuant to the provisions of this Agreement, and all amendments and
     supplements to any such Registration Statement, including post-effective
     amendments, in each case including the Prospectus contained therein, all
     exhibits thereto and all material incorporated by reference therein.

          "SEC" shall mean the Securities and Exchange Commission.

          "Shelf Registration" shall mean a registration effected pursuant to
     Section 2(b) hereof.

          "Shelf Registration Statement" shall mean a "shelf" registration
     statement of the Issuers pursuant to the provisions of Section 2(b) of this
     Agreement which covers all of the Transfer Restricted Notes on an
     appropriate form under Rule 415 under the 1933 Act, or any similar rule
     that may be adopted by the SEC, and all amendments and supplements to such
     registration statement, including post-effective amendments, in each case
     including the Prospectus contained therein, all exhibits thereto and all
     material incorporated by reference therein.

          "Transfer Restricted Notes" shall mean each Note until (i) the date on
     which such Note has been exchanged by a Person (other than a Participating
     Broker-Dealer) for an Exchange Note in the Exchange Offer, (ii) following
     the exchange by a Participating Broker-Dealer in the Exchange Offer of a
     Note for an Exchange Note, the date on which such Exchange Note is sold to
     a purchaser who receives from such Participating Broker-Dealer on or prior
     to the date of such sale a copy of the Prospectus contained in the Exchange
     Offer Registration Statement, (iii) the date on which such Note has been
     effectively registered under the 1933 Act and disposed of in accordance
     with the Shelf Registration Statement, (iv) the date on which such Note is
     eligible for distribution to the public pursuant to Rule 144(k) under the
     1933 Act (or any similar provision then in force, but not Rule 144A under
     the 1933 Act), (v) the date on which such Note shall have been otherwise
     transferred by the Holder thereof and a new Note not bearing a legend
     restricting further transfer shall have been delivered by the Company and
     subsequent disposition of such Note shall not require registration or
     qualifi-

                                       4
<PAGE>

     cation under the 1933 Act or any similar state law then in force or (vi)
     such Note ceases to be outstanding.

          "Trustee" shall mean the Trustee under the Indenture.

          2.  Registration Under the 1933 Act.

          (a)  Exchange Offer Registration.  To the extent not prohibited by any
applicable law or applicable interpretation of the staff of the SEC, the Issuers
shall (A) file an Exchange Offer Registration Statement with the SEC within 60
days after the Original Issue Date covering the offer by the Issuers to the
Holders to issue Exchange Notes in exchange for all of their Transfer Restricted
Notes, (B) use all reasonable efforts to cause such Exchange Offer Registration
Statement to be declared effective under the 1933 Act within 180 days after the
Original Issue Date, (C) commence the Exchange Offer promptly after the Exchange
Offer Registration Statement is declared effective by the SEC and keep the
Exchange Offer open for acceptance for the Exchange Period, (D) use all
reasonable efforts to issue, promptly after the end of the Exchange Period,
Exchange Notes in exchange for all Notes that have been properly tendered for
exchange during the Exchange Period, (E) use all reasonable efforts to
consummate the Exchange Offer within 210 days after the Original Issue Date and
(F) use all reasonable efforts to maintain the effectiveness of the Exchange
Offer Registration Statement during the Exchange Period and thereafter until the
later of (i) such time as the Company has issued Exchange Notes in exchange for
all Notes that have been properly tendered for exchange during the Exchange
Period and (ii) the time period set forth in Section 3(f)(c).  Upon the
effectiveness of the Exchange Offer Registration Statement, the Company shall
promptly commence the Exchange Offer, it being the objective of such Exchange
Offer to enable each Holder (other than Participating Broker-Dealers) eligible
and electing to exchange Transfer Restricted Notes for Exchange Notes (assuming
that such Holder is not an affiliate of the Company within the meaning of Rule
405 under the 1933 Act, acquires the Exchange Notes in the ordinary course of
such Holder's business and has no arrangements or understandings with any Person
to participate in the Exchange Offer for the purpose of distributing the
Exchange Notes) to trade such Exchange Notes from and after their receipt
without any limitations or restrictions under the 1933 Act and without material
restrictions under the securities laws of a substantial proportion of the
several states of the United States.  For the purposes of this Agreement, the
Exchange Offer will be deemed consummated if the Company makes the Exchange
Offer, the Exchange Offer remains open for a period (the "Exchange Period") of
20 business days after the date notice thereof is mailed to the Holders (or such
longer period as may be required by law), and the Company issues Exchange Notes
in respect of all Notes that are properly tendered during the Exchange Period.

          In connection with the Exchange Offer, the Company shall:

             (i) mail to each Holder a copy of the Prospectus forming part of
     the Exchange Offer Registration Statement, together with an appropriate
     letter of transmittal and related documents;

                                       5
<PAGE>

             (ii) keep the Exchange Offer open for the Exchange Period;

             (iii)  use the services of the Depositary for the Exchange Offer
     with respect to Notes evidenced by global certificates;

             (iv) permit Holders to withdraw tendered Transfer Restricted Notes
     at any time prior to the close of business, New York City time, on the last
     business day on which the Exchange Offer shall remain open, by sending to
     the institution specified in the notice, a telegram, facsimile transmission
     or letter setting forth the name of such Holder, the principal amount of
     Transfer Restricted Notes delivered for exchange, and a statement that such
     Holder is withdrawing its election to have such Notes exchanged; and

             (v) otherwise comply with all applicable laws relating to the
     Exchange Offer.

          Promptly after the close of the Exchange Offer, the Company shall use
all reasonable efforts to:

             (i) accept for exchange Transfer Restricted Notes duly tendered and
     not validly withdrawn pursuant to the Exchange Offer in accordance with the
     terms of the Exchange Offer Registration Statement and the letter of
     transmittal which is an exhibit thereto;

             (ii) deliver, or cause to be delivered, to the Trustee for
     cancellation all Transfer Restricted Notes so accepted for exchange by the
     Company; and

             (iii)  cause the Trustee promptly to authenticate and deliver
     Exchange Notes to each Holder of Transfer Restricted Notes equal in
     principal amount to the principal amount of the Transfer Restricted Notes
     of such Holder so accepted for exchange.

          The Exchange Offer shall not be subject to any conditions, other than
(i) that the Exchange Offer, or the making of any exchange by a Holder, does not
violate applicable law or any applicable interpretation of the staff of the SEC
and (ii) the tendering of Transfer Restricted Notes in accordance with the
Exchange Offer.  Each Holder of Transfer Restricted Notes who wishes to exchange
such Transfer Restricted Notes for Exchange Notes in the Exchange Offer shall
have represented that (i) it is not an affiliate (as defined in Rule 405 under
the 1933 Act) of the Company, (ii) any Exchange Notes to be received by it were
acquired in the ordinary course of its business and (iii) it has no arrangement
with any person to participate in the distribution (within the meaning of the
1933 Act) of the Exchange Notes (except that a Participating Broker Dealer shall
not be required to make the representation provided by this clause (iii)).  In
addition each such Holder shall be required to make such other representations
as may be reasonably necessary under applicable SEC rules, regulations or
interpretations to render the use of Form S-4 or another appropriate form under
the 1933 Act available.  To the extent permitted by law and ascertainable by the
Company, the Company shall inform

                                       6
<PAGE>

the Initial Purchasers of the names and addresses of the Holders to whom the
Exchange Offer is made, and the Initial Purchasers shall have the right to
contact such Holders and otherwise facilitate the tender of Transfer Restricted
Notes in the Exchange Offer. Notwithstanding anything to the contrary contained
herein, it is understood and agreed that no Holder may exchange in the Exchange
Offer any Transfer Restricted Notes, to the extent such Holder is not permitted
to do so by applicable law or SEC policy.

          (b)  Shelf Registration.  If (i) the Issuers are not permitted to file
the Exchange Offer Registration Statement or to consummate the Exchange Offer
because the Exchange Offer is not permitted by applicable law or SEC policy;
(ii) for any other reason, the Exchange Offer is not consummated (as defined in
Section 2(a)) within 210 days after the Original Issue Date; (iii) any Holder of
Notes notifies the Company prior to the 20th day following consummation of the
Exchange Offer that (a) due to a change in law or SEC policy such Holder is not
entitled to participate in the Exchange Offer, (b) due to a change in law or SEC
policy such Holder may not resell the Exchange Notes acquired by it in the
Exchange Offer to the public without delivering a prospectus and the prospectus
contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales by such Holder or (c) such Holder is a broker-dealer
and owns Notes acquired directly from the Company or an affiliate of the
Company; or (iv) the Holders of a majority in aggregate principal amount of the
Notes are not eligible to participate in the Exchange Offer and to receive
Exchange Notes that they may resell to the public without restriction under the
1933 Act and without restriction under applicable blue sky or state securities
laws, the Issuers shall, at their cost:

             (A)  use all reasonable efforts to file with the SEC, on or prior
     to the 60th day following the occurrence of any event specified in clauses
     (i) through (iv) above, a Shelf Registration Statement relating to the
     offer and sale of the Transfer Restricted Notes by the Holders from time to
     time in accordance with the methods of distribution elected by the Majority
     Holders of such Transfer Restricted Notes and set forth in such Shelf
     Registration Statement, and use their reasonable efforts to cause such
     Shelf Registration Statement to be declared effective under the 1933 Act
     within 120 days after the date of such filing obligation arises, provided
     that if the obligation to file the Shelf Registration Statement arises
     because the Exchange Offer has not been consummated within 210 days after
     the Original Issue Date, then the Issuers will use all reasonable efforts
     to file the Shelf Registration Statement on or prior to the 30th day after
     such filing obligation arises, provided, further, that, with respect to
     Exchange Notes received by a broker-dealer in exchange for any securities
     that were acquired by such broker-dealer as a result of market making or
     other trading activities, the Issuers may, if permitted by current
     interpretations by the SEC's staff, file a post-effective amendment to the
     Exchange Offer Registration Statement containing the information required
     by Regulation S-K Items 507 and/or 508, as applicable, in satisfaction of
     its obligations under this paragraph (A) solely with respect to broker-
     dealers who acquired their Notes as a result of market making or other
     trading activities, and any such Exchange Offer Registration Statement, as
     so amended, shall be referred to herein as, and governed by the provisions
     herein applicable to, a Shelf Registration Statement.

                                       7
<PAGE>

     In the event that the Issuers are required to file a Shelf Registration
     Statement, upon notice from any Holder not eligible to participate in the
     Exchange Offer pursuant to clause (iii) above or pursuant to clause (iv)
     above, the Issuers shall file and use all reasonable efforts to have
     declared effective by the SEC both an Exchange Offer Registration Statement
     pursuant to Section 2(a) with respect to all Transfer Restricted Notes that
     are eligible to participate in the Exchange Offer and a Shelf Registration
     Statement (which may be a combined Registration Statement with the Exchange
     Offer Registration Statement) with respect to offers and sales of Transfer
     Restricted Notes held by such Holder after completion of the Exchange
     Offer;

             (B)  use all reasonable efforts to keep the Shelf Registration
     Statement continuously effective in order to permit the Prospectus forming
     part thereof to be usable by Holders for a period of two years after its
     effective date or such shorter period which will terminate when all of the
     Transfer Restricted Notes covered by the Shelf Registration Statement have
     been sold pursuant to the Shelf Registration Statement; and

             (C)  notwithstanding any other provisions hereof, use all
     reasonable efforts to ensure that (i) any Shelf Registration Statement and
     any amendment thereto and any Prospectus forming a part thereof and any
     supplement thereto complies in all material respects with the 1933 Act and
     the rules and regulations thereunder, (ii) any Shelf Registration Statement
     and any amendment thereto does not, when it becomes effective, contain an
     untrue statement of a material fact or omit to state a material fact
     required to be stated therein or necessary to make the statements therein
     not misleading, and (iii) any Prospectus forming part of any Shelf
     Registration Statement, and any supplement to such Prospectus (as amended
     or supplemented from time to time), does not include an untrue statement of
     a material fact or omit to state a material fact necessary in order to make
     the statements therein, in light of the circumstances under which they were
     made, not misleading.

          The Issuers further agree, if necessary, to supplement or amend the
Shelf Registration Statement if reasonably requested by the Majority Holders
with respect to information relating to the Holders and otherwise as required by
Section 3(b) below, to use all reasonable efforts to cause any such amendment to
become effective and such Shelf Registration to become usable as soon as
reasonably practicable thereafter and to furnish to the Holders of Transfer
Restricted Notes copies of any such supplement or amendment promptly after its
being used or filed with the SEC.

          (c)  Expenses.  The Company shall pay all Registration Expenses in
connection with the registration pursuant to Sections 2(a) and 2(b).  In the
case of any Shelf Registration Statement, the Majority Holders may, in each
case, if they so elect, select Holders' Counsel to represent them (which may be
counsel to the Initial Purchasers), in which event Registration Expenses shall
include the reasonable fees and disbursements of such counsel.  Each Holder
shall pay all expenses of its counsel other than as set forth in the preceding
sentence, under-

                                       8
<PAGE>

writing discounts and commissions and transfer taxes, if any, relating to the
sale or disposition of such Holder's Transfer Restricted Notes pursuant to the
Shelf Registration Statement.

          (d)  Effective Registration Statement.  (i) The Issuers will be deemed
not to have used all reasonable efforts to cause a Registration Statement to
become, or to remain, effective during the requisite periods set forth herein if
any of the Issuers takes any action that could reasonably be expected to result
in any such Registration Statement not being declared effective or in the
Holders of Transfer Restricted Notes covered thereby not being able to exchange
or offer and sell such Transfer Restricted Notes during that period unless (A)
such action is required by applicable law or (B) such action is taken by the
Issuers in good faith and for valid business reasons (but not including
avoidance of the Issuers' obligations hereunder), including a material corporate
transaction, so long as the Issuers promptly comply with the requirements of
Section 3(k) hereof, if applicable.

          (ii) An Exchange Offer Registration Statement pursuant to Section 2(a)
hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof will
not be deemed to have become effective unless it has been declared effective by
the SEC; provided, however, that if, after it has been declared effective, the
offering of Transfer Restricted Notes pursuant to a Registration Statement is
interfered with by any stop order, injunction or other order or requirement of
the SEC or any other governmental agency or court, such Registration Statement
will be deemed not to have been effective during the period of such
interference, until the offering of Transfer Restricted Notes pursuant to such
Registration Statement may legally resume.

          (iii)  Subject to and without limiting the Company's obligations to
pay additional interest as provided in Section 2(e) and subject to Section 2(d)
hereof, the Company may suspend the availability of a Shelf Registration
Statement or, only during the Broker Prospectus Period, an Exchange Offer
Registration Statement, and the use of the related Prospectus, as provided in
Section 3(e)(v) and the penultimate paragraph of Section 3 hereof, if any event
shall occur as a result of which it shall be necessary, in the good faith
determination of the Company, to amend the Shelf Registration Statement or
Exchange Offer Registration Statement or amend or supplement any prospectus or
prospectus supplement thereunder in order that each such document not include
any untrue statement of fact or omit to state a material fact necessary to make
the statements therein not misleading in light of the circumstances under which
they were made.  If the Company shall so suspend the availability of a Shelf
Registration Statement or Exchange Offer Registration Statement as aforesaid or
if the Company shall give any notice to suspend the disposition of Transfer
Restricted Notes pursuant to a Shelf Registration Statement or the disposition
of Exchange Notes by Participating Broker-Dealers pursuant to the Exchange Offer
Registration Statement as a result of the happening of any event or the
discovery of any facts, each of the kind described in Section 3(e)(v) hereof,
the Company shall be deemed to have used all reasonable efforts to keep such
Registration Statement effective during such period of suspension; provided that
the Company shall use all reasonable efforts to file and have declared effective
(if an amendment) as soon as practicable an amendment or supplement to such
Registration Statement and shall extend the period dur-

                                       9
<PAGE>

ing which such Registration Statement shall be maintained effective pursuant to
this Agreement by the number of days during the period from and including the
date of the giving of such notice to and including the date when the Holders
shall have received copies of the supplemented or amended Prospectus necessary
to resume such dispositions. The Company may delay the filing of any such
amendment or supplement pursuant to this paragraph if the Company in good faith
has a valid business reason for such delay; provided, however, that any delays
pursuant to this sentence shall not exceed 60 days in the aggregate.
Notwithstanding the foregoing, if, pursuant to this paragraph, a Shelf
Registration Statement or Exchange Offer Registration Statement is suspended or
otherwise not usable in connection with resales of Notes covered thereby (or, in
the case of the Exchange Offer Registration Statement, resales of Exchange Notes
by Participating Broker-Dealers) for a period exceeding 60 days in the
aggregate, whether or not consecutive, a Registration Default shall be deemed to
have occurred under paragraph (iv) or (v), as the case may be, of the definition
thereof in Section 2(e) hereof (whether or not any other Registration Default
has occurred), and in all such events, the Company will be required to pay
additional interest as provided in Section 2(e) hereof.

          (e)  Accrual and Payment of Additional Interest.  In the event that a
Registration Default exists, then the Company shall pay additional interest on
the Transfer Restricted Notes (in addition to the interest otherwise due on the
Notes) in cash on each Interest Payment Date (as defined in the Indenture) in an
amount equal to one-quarter of one percent (0.25%) per annum of the principal
amount of the Transfer Restricted Notes, with respect to the first 90-day period
(or portion thereof) following such Registration Default.  The amount of such
additional interest will increase by an additional one-quarter of one percent
(0.25%) to a maximum of one percent (1.0%) per annum for each subsequent 90-day
period (or portion thereof) until each such Registration Default has been cured.
A "Registration Default" will exist (subject to the following sentence) if (i)
the Company fails to file any of the registration statements required by this
Agreement on or prior to the date specified for such filing, (ii) any of such
registration statements is not declared effective by the SEC on or prior to the
date specified for such effectiveness, (iii) the Exchange Offer is required to
be consummated under this Agreement and is not consummated within 210 days after
the Original Issue Date, (iv) the Shelf Registration Statement is declared
effective but thereafter, during the period for which the Company is required to
maintain the effectiveness of such registration statement, it ceases to be
effective or usable in connection with the resale of the Notes covered by such
registration statement for a period of 60 days, whether or not consecutive,
other than for valid business reasons or (v) the Exchange Offer Registration
Statement is declared effective but thereafter, during the Broker Prospectus
Period, it ceases to be effective (or the Company restricts the use of the
prospectus included therein) for a period of 60 days, whether or not consecutive
other than for valid business reasons.  Notwithstanding the foregoing, any
Registration Default specified in clause (i), (ii) or (iii) of the preceding
sentence that relates to the Exchange Offer Registration Statement or the
Exchange Offer shall be deemed cured at such time as the Shelf Registration
Statement is declared effective by the SEC.  Following the cure of all
Registration Defaults the accrual of additional interest on the Transfer
Restricted Notes will cease and the interest rate will revert to the original
rate; provided, however, that if, after any such

                                       10
<PAGE>

additional interest ceases to accrue, a different event specified in clause (i),
(ii), (iii), (iv) or (v) of the definition of Registration Default above occurs,
such additional interest shall begin to accrue again pursuant to the foregoing
provisions. Notwithstanding any of the foregoing, additional interest shall not
accrue at any time that there are no Transfer Restricted Notes outstanding.

          The Company shall notify the Trustee within five business days after
the occurrence of each event specified in clause (i), (ii), (iii), (iv) or (v)
of the definition of Registration Default above.  The Company shall pay the
additional interest due on the  Transfer Restricted Notes by depositing with the
Trustee, in trust, for the benefit of the Holders thereof, by 12:00 noon, New
York City time, on or before the applicable semi-annual Interest Payment Date
for the Transfer Restricted Notes, immediately available funds in sums
sufficient to pay the additional interest then due.  The additional interest
amount due shall be payable on each Interest Payment Date to the record Holder
of Transfer Restricted Notes entitled to receive the interest payment to be made
on such date as set forth in the Indenture.  Additional interest pursuant to
this Section 2(e) constitutes liquidated damages with respect to Registration
Defaults and shall be the exclusive monetary remedy available to the Holders
and/or the Initial Purchasers with respect to any Registration Default.

          (f)  Specific Enforcement.  Without limiting the remedies available to
the Initial Purchasers and the Holders, the Issuers acknowledge that any failure
by them to comply with their obligations under Sections 2(a), 2(b) or 3(f)
hereof may result in material irreparable injury to the Initial Purchasers or
the Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of any such failure, the Initial Purchasers or any Holder may obtain such relief
as may be required to specifically enforce the Issuers' obligations under
Section 2(a), 2(b) or 3(f).

          3.  Registration Procedures.  In connection with the obligations of
the Issuers with respect to the Registration Statements pursuant to Sections
2(a) and 2(b) hereof, the Issuers shall:

          (a)  prepare and file with the SEC a Registration Statement, within
     the time period specified in Section 2, on the appropriate form under the
     1933 Act, which form (i) shall be selected by the Company, (ii) shall, in
     the case of a Shelf Registration, be available for the sale of the Transfer
     Restricted Notes by the selling Holders thereof and (iii) shall comply as
     to form in all material respects with the requirements of the applicable
     form and include or incorporate by reference all financial statements
     required by the SEC to be filed therewith and use all reasonable efforts to
     cause such Registration Statement to become effective and remain effective
     in accordance with Section 2 hereof;

          (b)  prepare and file with the SEC such amendments and post-effective
     amendments to each Registration Statement as may be necessary under
     applicable law to keep such Registration Statement effective for the
     applicable period; cause each

                                       11
<PAGE>

     Prospectus to be supplemented by any required prospectus supplement, and as
     so supplemented to be filed pursuant to Rule 424 under the 1933 Act; and in
     the case of a Shelf Registration Statement comply with the provisions of
     the 1933 Act with respect to the disposition of all securities covered by
     each Registration Statement during the applicable period in accordance with
     the intended method or methods of distribution by the selling Holders
     thereof;

          (c)  in the case of a Shelf Registration, (i) notify each Holder of
     Transfer Restricted Notes, at least five business days prior to filing,
     that a Shelf Registration Statement with respect to the Transfer Restricted
     Notes is being filed and advising such Holders that the distribution of
     Transfer Restricted Notes will be made in accordance with the method
     elected by the Majority Holders; provided that this clause (i) shall not
     apply with respect to regular filings of any document or report under the
     1934 Act, at any time following the effectiveness of the applicable
     Registration Statement hereunder where such filing is made as part of the
     Company's periodic disclosure obligations under Sections 13 and 15 of the
     1934 Act; and (ii) furnish to each Holder of Transfer Restricted Notes, to
     counsel for the Initial Purchasers, to counsel for the Holders and to each
     underwriter of an underwritten offering of Transfer Restricted Notes, if
     any, without charge, as many copies of each Prospectus, including each
     preliminary Prospectus, and any amendment or supplement thereto and such
     other documents as such Holder or underwriter may reasonably request,
     including financial statements and schedules and, if the Holder so
     requests, all exhibits (including those incorporated by reference) in order
     to facilitate the public sale or other disposition of the Transfer
     Restricted Notes; and (iii) subject to the penultimate paragraph of this
     Section 3, hereby consent to the use of the Prospectus, including each
     preliminary Prospectus, or any amendment or supplement thereto by each of
     the selling Holders of Transfer Restricted Notes in connection with the
     offering and sale of the Transfer Restricted Notes covered by the
     Prospectus or any amendment or supplement thereto;

          (d)  use all reasonable efforts to register or qualify the Transfer
     Restricted Notes under all applicable state securities or "blue sky" laws
     of such jurisdictions as any Holder of Transfer Restricted Notes covered by
     a Registration Statement and each underwriter of an underwritten offering
     of Transfer Restricted Notes shall reasonably request by the time the
     Registration Statement is declared effective by the SEC, to cooperate with
     the Holders in connection with any filings required to be made with the
     NASD and do any and all other acts and things which may be reasonably
     necessary or advisable to enable such Holder to consummate the disposition
     in each such jurisdiction of such Transfer Restricted Notes owned by such
     Holder; provided, however, that the Company shall not be required to (i)
     qualify as a foreign corporation or as a dealer in securities in any
     jurisdiction where it would not otherwise be required to qualify but for
     this Section 3(d) or (ii) take any action which would subject it to general
     service of process or taxation in any such jurisdiction if it is not then
     so subject;

                                       12
<PAGE>

          (e)  in the case of a Shelf Registration, notify each Holder of
     Transfer Restricted Notes and counsel for such Holders promptly and, if
     requested by such Holder or counsel, confirm such advice in writing
     promptly (i) when a Registration Statement has become effective and when
     any post-effective amendments and supplements thereto become effective,
     provided that this clause (i) shall not apply with respect to regular
     filings of any document or report under the 1934 Act, at any time following
     the effectiveness of the applicable Registration Statement hereunder, where
     such filing is made as part of the Company's periodic disclosure
     obligations under Sections 13 and 15 of the 1934 Act, (ii) of any request
     by the SEC or any state securities authority for post-effective amendments
     and supplements to a Registration Statement and Prospectus or for
     additional information after the Registration Statement has become
     effective, (iii) of the issuance by the SEC or any state securities
     authority of any stop order suspending the effectiveness of a Registration
     Statement or the initiation of any proceedings for that purpose, (iv) of
     the receipt by the Company of any notification with respect to the
     suspension of the qualification of the Transfer Restricted Notes for sale
     in any jurisdiction or the initiation or threatening of any proceeding for
     such purpose, (v) of the happening of any event or the discovery of any
     facts during the period a Shelf Registration Statement is effective
     (including as contemplated in Section 2(d)(iii) hereof) which makes any
     statement made in such Registration Statement or the related Prospectus
     untrue in any material respect or which requires the making of any changes
     in such Registration Statement or Prospectus in order to make the
     statements therein not misleading and (vi) of any determination by the
     Company that a post-effective amendment to a Registration Statement would
     be appropriate;

          (f)  (A)  in the case of the Exchange Offer, (i) include in the
     Exchange Offer Registration Statement a "Plan of Distribution" section
     covering the use of the Prospectus included in the Exchange Offer
     Registration Statement by broker-dealers who have exchanged their Transfer
     Restricted Notes for Exchange Notes for the resale of such Exchange Notes,
     (ii) furnish to each broker-dealer who desires to participate in the
     Exchange Offer, without charge, as many copies of each Prospectus included
     in the Exchange Offer Registration Statement, including any preliminary
     Prospectus, and any amendment or supplement thereto, as such broker-dealer
     may reasonably request, (iii) include in the Exchange Offer Registration
     Statement a statement that any broker-dealer who holds Transfer Restricted
     Notes acquired for its own account as a result of market-making activities
     or other trading activities (a "Participating Broker-Dealer"), and who
     receives Exchange Notes for Transfer Restricted Notes pursuant to the
     Exchange Offer, may be a statutory underwriter and must deliver a
     prospectus meeting the requirements of the 1933 Act in connection with any
     resale of such Exchange Notes, (iv) subject to Section 2(d)(iii) and the
     penultimate paragraph of Section 3, hereby consent to the use of the
     Prospectus forming part of the Exchange Offer Registration Statement or any
     amendment or supplement thereto, by any broker-dealer in connection with
     the sale or transfer of the Exchange Notes covered by the Prospectus or any
     amendment or supplement thereto, and (v) include in the transmittal letter
     or

                                       13
<PAGE>

     similar documentation to be executed by an exchange offeree in order to
     participate in the Exchange Offer the following provision:

          "If the undersigned is not a broker-dealer, the undersigned represents
          that it is not engaged in, and does not intend to engage in, a
          distribution of Exchange Notes.  If the undersigned is a broker-dealer
          that will receive Exchange Notes for its own account in exchange for
          Transfer Restricted Notes, it represents that the Transfer Restricted
          Notes to be exchanged for Exchange Notes were acquired by it as a
          result of market-making activities or other trading activities and
          acknowledges that it will deliver a prospectus meeting the
          requirements of the 1933 Act in connection with any resale of such
          Exchange Notes pursuant to the Exchange Offer; however, by so
          acknowledging and by delivering a prospectus, the undersigned will not
          be deemed to admit that it is an "underwriter" within the meaning of
          the 1933 Act";

             (B)  to the extent any Participating Broker-Dealer participates in
     the Exchange Offer, the Company shall use all reasonable efforts to cause
     to be delivered at the request of an entity representing the Participating
     Broker-Dealers (which entity shall be one of the Initial Purchasers, unless
     it elects not to act as such representative) a "cold comfort" letter with
     respect to the Prospectus in the form existing on the last date for which
     exchanges are accepted pursuant to the Exchange Offer and with respect to
     each subsequent amendment or supplement, if any, effected during the period
     specified in clause (C) below; and

             (C)  to the extent any Participating Broker-Dealer participates in
     the Exchange Offer, the Company shall use all reasonable efforts to
     maintain the effectiveness of the Exchange Offer Registration Statement and
     to make available a prospectus meeting the requirements of the 1933 Act to
     any Participating Broker-Dealer for use in connection with any resale of
     any Exchange Notes acquired in the Exchange Offer (subject to the
     penultimate paragraph of Section 3).  The obligation of the Company to
     maintain the effectiveness of the Exchange Offer Registration Statement and
     make such prospectus available will commence on the day that the Exchange
     Offer is consummated and continue in effect for a 180-day period (the
     "Broker Prospectus Period"); provided, however, that, if for any day during
     such period the Company restricts the use of such Exchange Offer
     Registration Statement or prospectus, the Broker Prospectus Period shall be
     extended on a day-for-day basis.

          (g)  (A)  in the case of an Exchange Offer, furnish counsel for the
     Initial Purchasers and (B) in the case of a Shelf Registration, furnish
     Holders' Counsel with copies of any request by the SEC or any state
     securities authority for amendments or supplements to a Registration
     Statement and Prospectus or for additional information;

                                       14
<PAGE>

          (h)  make every reasonable effort to obtain the withdrawal of any
     order suspending the effectiveness of a Registration Statement at the
     earliest possible moment and provide immediate notice to each Holder of the
     withdrawal of any such order;

          (i)  in the case of a Shelf Registration, furnish to each Holder of
     Transfer Restricted Notes, without charge, at least one conformed copy of
     each Registration Statement and any post-effective amendment thereto
     (without documents incorporated therein by reference or exhibits thereto,
     unless requested);

          (j)  in the case of a Shelf Registration, cooperate with the selling
     Holders of Transfer Restricted Notes to facilitate the timely preparation
     and delivery of certificates representing Transfer Restricted Notes to be
     sold and not bearing any restrictive legends, and cause such Transfer
     Restricted Notes to be in such denominations (consistent with the
     provisions of the Indenture) in a form eligible for deposit with the
     Depositary and registered in such names as the selling Holders or the
     underwriters, if any, may reasonably request in writing at least one
     business day prior to the closing of any sale of Transfer Restricted Notes;

          (k)  in the case of a Shelf Registration, upon the occurrence of any
     event or the discovery of any facts, each as contemplated by Section
     3(e)(v) hereof, use all reasonable efforts to prepare a supplement or post-
     effective amendment to a Registration Statement or the related Prospectus
     or any document incorporated therein by reference or file any other
     required document so that, as thereafter delivered to the purchasers of the
     Transfer Restricted Notes, such Prospectus will not contain at the time of
     such delivery any untrue statement of a material fact or omit to state a
     material fact necessary to make the statements therein, in light of the
     circumstances under which they were made, not misleading.  The Company
     agrees to notify each Holder to suspend use of the Prospectus as promptly
     as practicable after the occurrence of such an event, and each Holder
     hereby agrees to suspend use of the Prospectus until the Company has
     amended or supplemented the Prospectus to correct such misstatement or
     omission.  At such time as such public disclosure is otherwise made or the
     Company determines that such disclosure is not necessary, in each case to
     correct any misstatement of a material fact or to include any omitted
     material fact, the Company agrees promptly to notify each Holder of such
     determination and to furnish each Holder such numbers of copies of the
     Prospectus, as amended or supplemented, as such Holder may reasonably
     request;

          (l)  obtain CUSIP numbers for all Exchange Notes, or Transfer
     Restricted Notes, as the case may be, not later than the effective date of
     a Registration Statement, and provide the Trustee with printed certificates
     for the Exchange Notes in a form eligible for deposit with the Depositary;
     provided that the Company shall cause the CUSIP number for the Exchange
     Notes to be the same as the CUSIP number for the publicly traded notes
     issued in exchange for the Company's 10 1/2% Senior Subordinated Notes
     issued on April 30, 1999;

                                       15
<PAGE>

          (m)  (i) cause the Indenture to be qualified under the Trust Indenture
     Act of 1939, as amended (the "TIA"), in connection with the registration of
     the Exchange Notes, or Transfer Restricted Notes, as the case may be, (ii)
     cooperate with the Trustee and the Holders to effect such changes to the
     Indenture as may be required for the Indenture to be so qualified in
     accordance with the terms of the TIA and (iii) execute, and use all
     reasonable efforts to cause the Trustee to execute, all documents as may be
     required to effect such changes, and all other forms and documents required
     to be filed with the SEC to enable the Indenture to be so qualified in a
     timely manner;

          (n)  in the case of a Shelf Registration, take the following actions
     and take all other customary and appropriate actions (including those
     reasonably requested by the holders of a majority in principal amount of
     the Transfer Restricted Notes being sold) in order to expedite or
     facilitate the disposition of such Transfer Restricted Notes and in such
     connection:

               (i) If requested by Holders' Counsel, make such representations
          and warranties to the Holders of such Transfer Restricted Notes in
          form, substance and scope as are customarily made in connection with
          shelf registrations of the type contemplated by this Agreement (such
          representations and warranties to be agreed upon by the Holders'
          Counsel and the Company, such agreement not to be unreasonably
          withheld); provided, however, that in the case of an underwritten
          offering the Company shall make such representations and warranties to
          the Holders of such Transfer Restricted Notes and the underwriters in
          form, substance and scope as are customarily made by issuers in
          connection with primary underwritten offerings of debt securities
          comparable to the Notes (such representations and warranties to be
          agreed upon by the Holders' Counsel, the underwriters and the Company,
          such agreement not to be unreasonably withheld);

               (ii) If requested by Holders' Counsel, obtain (at all times such
          opinions are customarily obtained) opinions of counsel to the Company
          and updates thereof addressed to each selling Holder covering the
          matters in form, substance and scope customarily covered in opinions
          delivered in connection with shelf registrations of the type
          contemplated by this Agreement (such opinions to be agreed upon by
          Holders' Counsel and the Company, such agreement not to be
          unreasonably withheld); provided, however, that in the case of an
          underwritten offering such opinions shall also be addressed to the
          underwriters and also cover the matters customarily covered in
          opinions delivered by issuers in connection with primary underwritten
          offerings of debt securities comparable to the Notes (such additional
          opinions to be agreed upon by the underwriters and the Company, such
          agreement not to be unreasonably withheld);

               (iii)  If requested by Holders' Counsel, obtain (at all times
          such letters are customarily obtained) "cold comfort" letters and
          updates thereof from the

                                       16
<PAGE>

          independent certified public accountants to the Company and to any
          other entity for which financial statements or other financial
          information or schedules are included in the Registration Statement,
          each addressed to the selling Holders of Transfer Restricted Notes,
          such letters to be in customary form and covering matters of the type
          customarily covered in "cold comfort" letters delivered to selling
          security holders in connection with shelf registrations of the type
          contemplated by this Agreement (such letters to be agreed upon by
          Holders' Counsel and such accountants, such agreement not to be
          unreasonably withheld); provided, however, that in the case of an
          underwritten offering such letters shall also be addressed to the
          underwriters and cover the matters customarily covered in "comfort
          letters" delivered by issuers in connection with primary underwritten
          offerings of debt securities comparable to the Notes (such letters to
          be agreed upon by the underwriters and such accountants, such
          agreement not to be unreasonably withheld);

               (iv) if requested by the Majority Holders, enter into a
          securities sales agreement with the Holders and an agent of the
          Holders providing for, among other things, the appointment of such
          agent for the selling Holders for the purpose of soliciting purchases
          of Transfer Restricted Notes, which agreement shall be in form,
          substance and scope customary for similar offerings;

               (v) if an underwriting agreement is entered into in the case of
          an underwritten offering, cause the same to set forth indemnification
          provisions and procedures substantially equivalent to the
          indemnification provisions and procedures set forth in Section 5
          hereof with respect to the underwriters and all other parties to be
          indemnified pursuant to Section 5 hereof;

               (vi) deliver such documents and certificates as may be reasonably
          requested and as are customarily delivered in similar offerings; and

               (vii)  in the case of an underwritten offering, enter into
          customary agreements required in connection therewith (including a
          customary underwriting agreement).

     The above shall be done at (i) the effectiveness of such Registration
     Statement (and, if appropriate, each post-effective amendment thereto) and
     (ii) each closing under any underwriting or similar agreement as and to the
     extent required thereunder.  In the case of any underwritten offering, the
     Company shall provide written notice to the Holders of all Transfer
     Restricted Notes of such underwritten offering at least 30 days prior to
     the filing of a prospectus supplement for such underwritten offering.  Such
     notice shall (x) offer each such Holder the right to participate in such
     underwritten offering, (y) specify a date, which shall be no earlier than
     10 days following the date of such notice, by which such Holder must inform
     the Company of its intent to participate in such un-

                                       17
<PAGE>

     derwritten offering and (z) include the instructions such Holder must
     follow in order to participate in such underwritten offering;

          (o)  For a reasonable period prior to the filing of a Shelf
     Registration Statement and prior to the execution of any underwriting or
     similar agreement make available for inspection by Holders' Counsel and any
     underwriters participating in an underwritten offering pursuant to a Shelf
     Registration Statement and not more than one accounting firm retained by
     the Majority Holders or underwriters, all financial and other records,
     pertinent corporate documents and properties of the Company reasonably
     requested by any such Persons, and cause the respective officers,
     directors, employees, and any other agents of the Company to supply all
     information reasonably requested by any such Persons, in connection with a
     Registration Statement; provided that any such records, documents,
     properties and such information shall be kept confidential by any such
     Persons and shall be used only in connection with such Registration
     Statement, unless disclosure thereof is made in connection with a court
     proceeding or required by law, or such information has become available
     (not in violation of this agreement) to the public generally or through a
     third party without an accompanying obligation of confidentiality, and the
     Company shall be entitled to request that such Persons sign a
     confidentiality agreement to the foregoing effect;

          (p)  (i) in the case of an Exchange Offer, a reasonable time prior to
     the filing of any Exchange Offer Registration Statement, any Prospectus
     forming a part thereof, any amendment to an Exchange Offer Registration
     Statement or amendment or supplement to a Prospectus, provide copies of
     such document to the Initial Purchasers, and make such changes in any such
     document prior to the filing thereof as the Initial Purchasers or their
     counsel may reasonably request and is agreed to by the Company (such
     agreement not to be unreasonably withheld); (ii) in the case of a Shelf
     Registration, a reasonable time prior to filing any Shelf Registration
     Statement, any Prospectus forming a part thereof, any amendment to such
     Shelf Registration Statement or amendment or supplement to such Prospectus,
     other than amendments comprising regular filings of any document or report
     under the 1934 Act, at any time following the effectiveness of the
     applicable Registration Statement hereunder, where such filing is made as
     part of the Company's periodic disclosure obligations under Sections 13 and
     15 of the 1934 Act, provide copies of such document to Holders' Counsel, to
     the Initial Purchasers, and to the underwriter or underwriters of an
     underwritten offering of Transfer Restricted Notes, if any, and make such
     changes in any such document prior to the filing thereof as counsel to the
     Initial Purchasers, Holders' Counsel or any underwriter may request and is
     agreed to by the Company (such agreement not to be unreasonably withheld);
     and (iii) cause the representatives of the Company to be available for
     discussion of such document as shall be reasonably requested by Holders'
     Counsel, the Initial Purchasers on behalf of such Holders or any
     underwriter, and shall not at any time make any filing of any such document
     of which Holders' Counsel, the Initial Purchasers or any underwriter shall
     not have previously been advised and furnished a copy or to which such
     Holders, the Initial Purchasers on behalf of such Holders, their coun-

                                       18
<PAGE>

     sel or any underwriter shall reasonably object within a reasonable time
     period unless, in the opinion of counsel to the Company, such filing is
     required by law;

          (q)  in the case of a Shelf Registration, use all reasonable efforts
     to cause all Transfer Restricted Notes to be listed on any securities
     exchange on which similar debt securities issued by the Company are then
     listed if requested by the Majority Holders or by the underwriter or
     underwriters of an underwritten offering of Transfer Restricted Notes, if
     any;

          (r)  otherwise use all reasonable efforts to comply with all
     applicable rules and regulations of the SEC and make available to its
     security holders, as soon as reasonably practicable (but not until the end
     of the first full fiscal quarter following effectiveness), an earnings
     statement covering at least 12 months which shall satisfy the provisions of
     Section 11(a) of the 1933 Act and Rule 158 thereunder; and

          (s)  cooperate and assist in any filings required to be made with the
     NASD and in the performance of any due diligence investigation by any
     underwriter and its counsel.

          In the case of a Shelf Registration Statement, the Company may (as a
condition to such Holder's participation in the Shelf Registration) require each
Holder of Transfer Restricted Notes to furnish to the Company such information
regarding such Holder (and if such Holder is not the beneficial owner, the
beneficial owner) and the proposed distribution by such Holder (and if such
Holder is not the beneficial owner, the beneficial owner) of such Transfer
Restricted Notes as the Company may from time to time reasonably request in
writing.

          In the case of a Shelf Registration Statement or, during the Broker
Prospectus Period only, in the case of an Exchange Offer Registration Statement,
each Holder agrees that, upon receipt of any notice from the Company of the
happening of any event or the discovery of any facts, each of the kind described
in Section 3(e)(ii)-(vii) hereof, such Holder will forthwith discontinue
disposition of Transfer Restricted Notes pursuant to such Registration Statement
until such Holder's receipt of the copies of the supplemented or amended
Prospectus contemplated by Section 3(k) hereof, and, if so directed by the
Company, such Holder will deliver to the Company (at the Company's expense) all
copies in its possession, other than permanent file copies then in such Holder's
possession, of the Prospectus covering such Transfer Restricted Notes current at
the time of receipt of such notice.  Each Holder agrees to keep confidential the
cause of any such notice of suspension or other information provided to them by
the Company with respect thereto or any other event which would materially
adversely affect the Company.

          If any such Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (i) the insertion therein of language, in form and
substance satisfactory to such Holder,

                                       19
<PAGE>

to the effect that the holding by such Holder of such securities is not to be
construed as a recommendation by such Holder of the investment quality of the
Company's securities covered thereby and that such holding does not imply that
such Holder will assist in meeting any future financial requirements of the
Company, or (ii) in the event that such reference to such Holder by name or
otherwise is not required by the 1933 Act or any similar federal statute then in
force, the deletion of the reference to such Holder.

          4.  Underwritten Registrations.  (a)  If any of the Transfer
Restricted Notes covered by any Shelf Registration are to be sold in an
underwritten offering, the investment banker or investment bankers and manager
or managers that will manage the offering will be selected by the holders of a
majority in aggregate principal amount of such Transfer Restricted Notes
included in such offering, provided such banker or manager is acceptable to the
Company, acting reasonably.

          (b)  No Holder of Transfer Restricted Notes may participate in any
underwritten registration hereunder unless such Holder (a) agrees to sell such
Holder's Transfer Restricted Notes on the basis provided in any underwritten
arrangements approved by the Persons entitled hereunder to approve such
arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents required
under the terms of such underwriting arrangements.

          5.  Indemnification and Contribution.  (a)  Each of the Company and
the Guarantors, jointly and severally, agrees to indemnify and hold harmless
each Holder, including Participating Broker-Dealers, each underwriter who
participates in an offering of Transfer Restricted Notes, and each Person, if
any, who controls any of such parties within the meaning of Section 15 of the
1933 Act or Section 20 of the 1934 Act as follows:

             (i) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, arising out of any untrue statement or alleged
     untrue statement of a material fact contained in any Registration Statement
     (or any amendment thereto) pursuant to which Exchange Notes or Transfer
     Restricted Notes were registered under the 1933 Act, including all
     documents incorporated therein by reference, or the omission or alleged
     omission therefrom of a material fact required to be stated therein or
     necessary to make the statements therein not misleading or arising out of
     any untrue statement or alleged untrue statement of a material fact
     contained in any Prospectus (or any amendment or supplement thereto) or the
     omission or alleged omission therefrom of a material fact necessary in
     order to make the statements therein, in the light of the circumstances
     under which they were made, not misleading;

             (ii) against any and all loss, liability, claim, damage and expense
     whatsoever, as incurred, to the extent of the aggregate amount paid in
     settlement of any litigation, or any investigation or proceeding by any
     governmental agency or body commenced or threatened, or of any claim
     whatsoever, in each case, based upon any such untrue statement or omission,
     or any such alleged untrue statement or omission; pro-

                                       20
<PAGE>

     vided that (subject to Section 5(d) below) any such settlement is effected
     with the written consent of the Company; and

             (iii)  against any and all expenses whatsoever, as incurred
     (including the reasonable fees and disbursements of one counsel chosen by
     any indemnified party), reasonably incurred in investigating, preparing or
     defending against any litigation, or any investigation or proceeding by any
     court or governmental agency or body, commenced or threatened, or any claim
     whatsoever based upon any such untrue statement or omission, or any such
     alleged untrue statement or omission, to the extent that any such expense
     is not paid under subparagraph (i) or (ii) of this Section 5(a);

provided, however, that this indemnity agreement does not apply to any loss,
liability, claim, damage or expense to the extent (i) arising out of an untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by the
Initial Purchasers, any Holder, including Participating Broker-Dealers, or any
underwriter expressly for use in the Registration Statement (or any amendment
thereto) or the Prospectus (or any amendment or supplement thereto) or (ii)
resulting from the use of the Prospectus during a period when the use of the
Prospectus has been suspended in accordance with Section 2(d)(iii), Section
3(e)(v) and the penultimate paragraph of Section 3 hereof, provided, in each
case, that Holders received prior notice of such suspension.

          (b)  In the case of a Shelf Registration, each Holder agrees,
severally and not jointly, to indemnify and hold harmless the Company, each
Guarantor, each underwriter who participates in an offering of Transfer
Restricted Notes and the other selling Holders and each of their respective
directors and officers (including each officer of the Company who signed the
Registration Statement) and each Person, if any, who controls the Company, a
Guarantor, any underwriter or any other selling Holder within the meaning of
Section 15 of the 1933 Act or Section 20 of the 1934 Act, against any and all
loss, liability, claim, damage and expense described in the indemnity contained
in Section 5(a) hereof, as incurred, but only with respect to untrue statements
or omissions, or alleged untrue statements or omissions, made in the
Registration Statement (or any amendment thereto) or the Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Company by such Holder expressly for use in the
Registration Statement (or any amendment thereto), or the Prospectus (or any
amendment or supplement thereto); provided, however, that no such Holder shall
be liable for any claims hereunder in excess of the amount of net proceeds
received by such Holder from the sale of Transfer Restricted Notes pursuant to
such Shelf Registration Statement.

          (c)  In case any action shall be commenced involving any Person in
respect of which indemnity may be sought pursuant to either paragraph (a) or (b)
above, such Person (the "indemnified party") shall give notice as promptly as
reasonably practicable to each Person against whom such indemnity may be sought
(the "indemnifying party"), but failure to so notify an indemnifying party shall
not relieve such indemnifying party from any liability

                                       21
<PAGE>

hereunder to the extent it is not materially prejudiced as a result thereof and
in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. In the case of parties indemnified
pursuant to Section 5(a) above, counsel to the indemnified parties shall
(subject to the following sentence) be selected by JP Morgan, and, in the case
of parties indemnified pursuant to Section 5(b) above, counsel to the
indemnified parties shall be selected by the Company. In case any such action is
brought against any indemnified party, and it notifies the indemnifying party of
the commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof with counsel
satisfactory to such indemnified party; provided, that if the defendants in any
such action include both the indemnified party and the indemnifying party and
the indemnified party shall have reasonably concluded that there may be one or
more legal defenses available to it and/or other indemnified parties which are
different from or additional to those available to the indemnifying party, the
indemnifying party shall not have the right to direct the defense of such action
on behalf of such indemnified party or parties and such indemnified party or
parties shall have the right to select separate counsel to defend such action on
behalf of such indemnified party or parties. In no event shall the indemnifying
parties be liable for fees and expenses of more than one counsel (in addition to
any local counsel) separate from their own counsel for all indemnified parties
in connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or
circumstances; after notice from the indemnifying party to such indemnified
party of its election so to assume the defense thereof and approval by such
indemnified party of counsel appointed to defend such action, the indemnifying
party will not be liable to such indemnified party under this Section 5 for any
legal or other expenses, other than reasonable costs of investigation,
subsequently incurred by such indemnified party in connection with the defense
thereof, unless (i) the indemnified party shall have employed separate counsel
in accordance with the provisos to the preceding sentence (it being understood,
however, that in connection with such action the indemnifying party shall not be
liable for the expenses of more than one separate counsel (in addition to local
counsel) in any one action or separate but substantially similar actions in the
same jurisdiction arising out of the same general allegations or circumstances,
designated by JP Morgan in the case of paragraph (a) of this Section 5,
representing the indemnified parties under such paragraph (a) who are parties to
such action or actions) or (ii) the indemnifying party does not promptly retain
counsel satisfactory to the indemnified party or (iii) the indemnifying party
has authorized the employment of counsel for the indemnified party at the
expense of the indemnifying party. The indemnifying party will not be liable for
the costs and expenses of any settlement of such action effected by such
indemnified party without the consent of the indemnifying party.

          No indemnifying party shall, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding, by
any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which indemnification or contribution could be sought
under this Section 5 (whether or not the indemnified parties are actual

                                       22
<PAGE>

or potential parties thereto), unless such settlement, compromise or consent (i)
includes an unconditional release of each indemnified party from all liability
arising out of such litigation, investigation, proceeding or claim and (ii) 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.

          (d)  If at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, such indemnifying party agrees that it shall be liable for any
settlement of the nature contemplated by Section 5(a)(ii) hereof effected
without its written consent if (i) such settlement is entered into more than 45
days after receipt by such indemnifying party of the aforesaid request, (ii)
such indemnifying party shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into and
(iii) such indemnifying party shall not have reimbursed such indemnified party
in accordance with such request prior to the date of such settlement.
Notwithstanding the immediately preceding sentence, if at any time an
indemnified party shall have requested an indemnifying party to reimburse the
indemnified party for fees and expenses of counsel, an indemnifying party shall
not be liable for any settlement of the nature contemplated by Section 5(d)(ii)
effected without its consent if such indemnifying party (i) reimburses such
indemnified party in accordance with such request to the extent it considers
such request to be reasonable and (ii) provides written notice of the
indemnified party substantiating the unpaid balance as unreasonable, in each
case prior to the date of such settlement.

          (e)  If the indemnification provided for in any of the indemnity
provisions set forth in this Section 5 is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses,
liabilities, claims, damages or expenses referred to therein, then each
indemnifying party shall contribute to the aggregate amount of such losses,
liabilities, claims, damages and expenses incurred by such indemnified party, as
incurred, in such proportion as is appropriate to reflect the relative fault of
such indemnifying party or parties on the one hand, and such indemnified party
or parties on the other hand, in connection with the statements or omissions
which resulted in such losses, liabilities, claims, damages or expenses, as well
as any other relevant equitable considerations.  The relative fault of such
indemnifying party or parties on the one hand, and such indemnified party or
parties on the other hand shall be determined by reference to, among other
things, whether any such untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact relates to information
supplied by such indemnifying party or parties or such indemnified party or
parties and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.  The Company, the
Guarantors, the Initial Purchasers and the Holders of the Transfer Restricted
Notes agree that it would not be just and equitable if contribution pursuant to
this Section 5 were determined by pro rata allocation (even if the Initial
Purchasers were treated as one entity, and the Holders were treated as one
entity, for such purpose) or by another method of allocation which does not take
account of the equitable considerations referred to above in Section 5.  The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 5 shall be deemed
to include any legal or other expenses reasonably

                                       23
<PAGE>

incurred by such indemnified party in investigating, preparing or defending
against any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based upon any
such untrue or alleged untrue statement or omission or alleged omission. No
Person guilty of fraudulent misrepresentation (within the meaning of Section 11
(f) of the 1933 Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation. For purposes of this Section 5,
each Person, if any, who controls an Initial Purchaser or Holder within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have
the same rights to contribution as such Initial Purchaser or Holder, and each
director of the Company, each officer of the Company who signed the Registration
Statement, and each Person, if any, who controls the Company within the meaning
of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the same
rights to contribution as the Company. Notwithstanding the provisions of this
Section 5(e), no Holder shall be required to contribute any amount in excess of
the amount by which the net proceeds received by such Holder from the sale of
Transfer Restricted Notes exceeds the amount of any damages that such Holder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission.

          6.  Miscellaneous.

          (a)  Rule 144 and Rule 144A.  For so long as the Company is subject to
the reporting requirements of Section 13 or 15(d) of the 1934 Act, the Company
covenants that it will file the reports required to be filed by it under Section
13(a) or 15(d) of the 1934 Act and the rules and regulations adopted by the SEC
thereunder, and that if it ceases to be so required to file such reports, it
will upon the request of any Holder of Transfer Restricted Notes (i) make
publicly available such information as is necessary to permit sales pursuant to
Rule 144 under the 1933 Act, (ii) deliver such information to a prospective
purchaser as is necessary to permit sales pursuant to Rule 144A under the 1933
Act and take such further action as any Holder of Transfer Restricted Notes may
reasonably request, and (iii) take such further action that is reasonable in the
circumstances, in each case, to the extent required from time to time to enable
such Holder to sell its Transfer Restricted Notes without registration under the
1933 Act within the limitation of the exemptions provided by (x) Rule 144 under
the 1933 Act, as such Rule may be amended from time to time, (y) Rule 144A under
the 1933 Act, as such Rule may be amended from time to time, or (z) any similar
rules or regulations hereafter adopted by the SEC.  Upon the written request of
any Holder of Transfer Restricted Notes, the Company will deliver to such Holder
a written statement as to whether it has complied with such requirements.

          (b)  No Inconsistent Agreements.  The Company has not entered into nor
will it on or after the date of this Agreement enter into any agreement which is
inconsistent with the rights granted to the Holders of Transfer Restricted Notes
in this Agreement or otherwise conflicts with the provisions hereof.  The rights
granted to the Holders hereunder do not in any way conflict with and are not
inconsistent with the rights granted to the holders of the Company's other
issued and outstanding securities under any such agreements.

                                       24
<PAGE>

          (c)  Amendments and Waivers.  The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given unless the Company has obtained the written consent of Holders
of at least a majority in aggregate principal amount of the outstanding Transfer
Restricted Notes affected by such amendment, modification, supplement, waiver or
departure, provided, however, that no amendment, modification, supplement or
waiver or consent to any departure from the provisions of Section 5 hereof shall
be effective as against any Holder of Transfer Restricted Notes unless consented
to in writing by such Holder.

          (d)  Notices.  All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, registered first-
class mail, telecopier, or any courier guaranteeing overnight delivery (i) if to
a Holder (other than an Initial Purchaser), at the most current address set
forth on the records of the Registrar under the Indenture, (ii) if to an Initial
Purchaser, at the most current address given by such Initial Purchaser to the
Company by means of a notice given in accordance with the provisions of this
Section 6(d), which address initially is the address set forth in the Purchase
Agreement; and (iii) if to the Issuers, initially at the address set forth in
the Purchase Agreement and thereafter at such other address, notice of which is
given in accordance with the provisions of this Section 6(d).

          All such notices and communications shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; five business
days after being deposited in the mail, postage prepaid, if mailed; when receipt
is acknowledged, if telecopied; and on the next business day if timely delivered
to an air courier guaranteeing overnight delivery.

          (e)  Successors and Assigns.  This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of each
of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Transfer
Restricted Notes in violation of the terms hereof or of the Purchase Agreement
or the Indenture.  If any transferee of any Holder shall acquire Transfer
Restricted Notes, in any manner, whether by operation of law or otherwise, such
Transfer Restricted Notes shall be held subject to all of the terms of this
Agreement, and by taking and holding such Transfer Restricted Notes, 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, including the restrictions on resale
set forth in this Agreement and, if applicable, the Purchase Agreement, and such
Person shall be entitled to receive the benefits hereof.

          (f)  Third Party Beneficiary.  The Holders shall be third party
beneficiaries to the agreements made hereunder between the Issuers on the one
hand, and the Initial Purchasers, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of Holders hereunder.

                                       25
<PAGE>

          (g)  Counterparts.  This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

          (h)  Headings.  The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

          (i)  GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

          (j)  Entire Agreement.  This Agreement embodies the entire agreement
and understanding between the Issuers and each other party hereto relating to
the subject matter hereof and supersedes all prior agreements and understandings
relating to such subject matter.

          (k)  Severability.  In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                            [signature page follows]

                                       26
<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their respective officers thereunto duly authorized as of the
date first above written.

                       ENCOMPASS SERVICES CORPORATION

                              By:
                                 ------------------------------------
                                 Name:
                                 Title:

                                  GUARANTORS:

                              A-1 Mechanical of Lansing, Inc.
                              AA Advance Air, Inc.
                              AA Jarl, Inc.
                              A-ABC Appliance, Inc.
                              A-ABC Services, Inc.
                              Air Conditioning, Plumbing & Heating Service Co.,
                                 Inc.
                              Aircon Energy Incorporated
                              Air Systems, Inc.
                              Airtron, Inc.
                              Airtron of Central Florida, Inc.
                              American Air Company, Inc.
                              AMS Arkansas, Inc.
                              Atlantic Industrial Constructors, Inc.
                              B&R Electrical Services, Inc.
                              Barr Electric Corp.
                              Building One Commercial, Inc.
                              Building One Service Solutions, Inc.
                              BUYR, Inc.
                              Callahan Roach Products & Publications, Inc.
                              Cardinal Contracting Corporation
                              Central Air Conditioning Contractors, Inc.
                              Central Carolina Air Conditioning Company
                              Chapel Electric Co.
                              Charlie Crawford, Inc.
                              Clark Converse Electric Service, Inc.
                              Colonial Air Conditioning Company
                              Commercial Air Holding Company
                              Commercial Air, Power and Cable, Inc.
<PAGE>

                                      S-2

                              Conch Republic Corp.
                              Continental Electrical Construction Co.
                              Costa and Rihl, Inc.
                              Costner Brothers, Inc.
                              Cramar Electric, Inc.
                              C.R. Hipp Construction Co., Inc.
                              Del-Air Service Company, Inc.
                              Delta Innovations, Ltd., a limited liability
                              company, by Roth Companies Incorporated, its sole
                                 member
                              Divco, Inc.
                              Diversified Management Services U.S.A., Inc.
                              Dynalink Corporation
                              EDG Power Group, Inc.
                              EET Holdings, Inc.
                              Electrical Contracting, Inc.
                              Electrical Design & Construction, Inc.
                              Engineering Design Group, Inc.
                              Encompass Electrical Technologies Central
                                 Tennessee, Inc.
                              Encompass Electrical Technologies Eastern
                                 Tennessee, Inc.
                              Encompass Electrical Technologies - Florida, LLC,
                              by EET Holdings, Inc., its sole member
                              Encompass Electrical Technologies Georgia, Inc.
                              Encompass Electrical Technologies Jacksonville,
                                 Inc.
                              Encompass Electrical Technologies North
                              Carolina, Inc.
                              Encompass Electrical Technologies North
                              Florida, Inc.
                              Encompass Electrical Technologies of Nevada, Inc.
                              Encompass Electrical Technologies of New
                              England, Inc.
                              Encompass Electrical Technologies Projects Group,
                                 Inc.
                              Encompass Electrical Technologies South
                              Carolina, Inc.
                              Encompass Electrical Technologies Southeast, Inc.
<PAGE>

                                      S-3

                              Encompass Electrical Technologies Western
                                 Tennessee, Inc.
                              Encompass Electrical Technologies of Texas, Inc.
                              Encompass Facility Services, Inc.
                              Encompass Global Technologies, Inc.
                              Encompass Mechanical Services Southeast, Inc.
                              Encompass Plumbing, Inc.
                              Encompass Services Holding Corp.
                              Encompass Services Indiana L.L.C., by Airtron,
                              Inc., Cardinal Contracting Corporation,
                              Roth Companies Incorporated, Inc.,
                              its sole members
                              Encompass Ind./Mech. of Texas, Inc.
                              ESR PC, L.P., by Conch Republic Corp., general
                                 partner
                              Evans Services, Inc.
                              FacilityDirect.com, LLC,
                              by Building One Service Solutions, Inc., its sole
                                 member
                              The Farfield Company
                              Ferguson Electric Corporation
                              Fred Clark Electrical Contractor, Inc.
                              Gamewell Mechanical, Inc.
                              Garfield-Indecon Electrical Services, Inc.
                              Gilbert Mechanical Contractors, Inc.
                              Gregory Electric, Inc.
                              GroupMAC Texas, L.P.,
                              by Encompass Services Holding Corp.,
                               general partner
                              Gulf States, Inc.
                              Hallmark Air Conditioning, Inc.
                              HPS Plumbing Services, Inc.
                              Hungerford Mechanical Corporation
                              HVAC Services, Inc.
                              Hydro Cooling, Inc.
                              Interstate Building Services, L.L.C.,
                              by Building One Service Solutions, Inc., its sole
                                 member
                              Isla Morada, LLC, by Conch Republic Corp., its
                                 sole member
<PAGE>

                                      S-4

                              Ivey Mechanical Services, L.L.C.,
                              by Encompass Mechanical Services
                              Southeast, Inc., its sole member
                              K&N Plumbing, Heating and Air Conditioning, Inc.
                              Laney's, Inc.
                              The Lewis Companies, Inc.
                              Lexington/Ivey Mechanical Company, L.L.C.,
                              by Encompass Mechanical Services
                              Southeast, Inc., its sole member
                              Linford Service Co.
                              L.T. Mechanical, Inc.
                              MacDonald-Miller Co., Inc.
                              MacDonald-Miller Industries, Inc.
                              MacDonald-Miller of Oregon, Inc.
                              MacDonald-Miller Service, Inc.
                              Masters, Inc.
                              Mechanical Services of Orlando, Inc.
                              Merritt Island Air & Heat, Inc.
                              National Network Services, Inc.
                              Oil Capital Electric, Inc.
                              Omni Mechanical Company
                              Omni Mechanical Services,
                              by Omni Mechanical Company, general
                              partner
                              Pacific Rim Mechanical Contractors, Inc.
                              Paul E. Smith Co., Inc.
                              Phoenix Electric Company
                              Pro Wire Security Systems, Inc.
                              Ray and Claude Goodwin, Inc.
                              Regency Electric Company South Florida Office,
                                 Inc.
                              Reliable Mechanical, Inc.
                              Riviera Electric of California, Inc.
                              Robinson Mechanical Company
                              Romanoff Electric Corp.
                              Roth Companies Incorporated
                              Sanders Bros., Inc.
                              Sequoyah Corporation
                              Sibley Services, Incorporated
                              SKC Electric, Inc.
                              SKCE, Inc.
<PAGE>

                                      S-5

                              S.L. Page Corporation
                              Snyder Mechanical
                              Southeast Mechanical Service, Inc.
                              Stephen C. Pomeroy, Inc.
                              Sterling Air Conditioning, Inc.
                              Sun Plumbing, Inc.
                              Taylor-Hunt Electric, Inc.
                              Team Mechanical, Inc.
                              Tower Electric Company
                              Town & Country Electric, Inc.
                              Tri-City Electrical Contractors, Inc.
                              Tri-M Corporation
                              Tri-State Acquisition Corp.
                              United Acquisition Corp.
                              United Service Alliance, Inc.
                              Van's Comfortemp Air Conditioning, Inc.
                              Vantage Mechanical Contractors, Inc.
                              Vermont Mechanical, Inc.
                              Wade's Heating & Cooling, Inc.
                              Watson Electrical Construction Co.
                              Wiegold & Sons, Inc.
                              Willis Refrigeration, Air Conditioning & Heating,
                                 Inc.
                              Wilson Electric Company, Inc.
                              Yale Incorporated

                              By:
                                 ------------------------------------
                                 Name:   Gray H. Muzzy
                                 Title:  Vice President

                              Acting on Behalf of Each of the Above

                              Encompass Management Co.

                              By:
                                 ------------------------------------
                                 Name:   Gray H. Muzzy
                                 Title:  Senior Vice President
<PAGE>

                                      S-6

                                  Encompass Electrical Technologies - Rocky
                                  Mountains, Inc.

                                  By:
                                    ------------------------------------
                                    Name:   Daniel W. Kipp
                                    Title:  Vice President

                                  ChiP Corp.

                                  Wayzata, Inc.

                                  By:
                                    ------------------------------------
                                     Name:   Layne Albert
                                     Title:  Vice President
<PAGE>

                                      S-7

Accepted:  June 28, 2001

J.P. MORGAN SECURITIES INC.

For itself and on behalf of the
several Initial Purchasers listed
in Schedule 2 hereto.

By
  -------------------------------
Name:
Title:
<PAGE>

                                                                      Schedule 1

                              SUBSIDIARY COMPANIES

<TABLE>
<CAPTION>
        Name of Subsidiary                                     Jurisdiction
        ------------------                                     ------------
<S>                                                            <C>
A-1 Mechanical of Lansing, Inc.                                   Michigan
AA Advance Air, Inc.                                               Florida
AA Jarl, Inc.                                                     Delaware
A-ABC Appliance, Inc.                                               Texas
A-ABC Services, Inc.                                              Delaware
Air Conditioning, Plumbing & Heating Service Co., Inc.            Colorado
Aircon Energy Incorporated                                       California
Air Systems, Inc.                                                California
Airtron, Inc.                                                     Delaware
Airtron of Central Florida, Inc.                                   Florida
American Air Company, Inc.                                       California
AMS Arkansas, Inc.                                                Arkansas
Atlantic Industrial Constructors, Inc.                            Virginia
B&R Electrical Services, Inc.                                     Maryland
Barr Electric Corp.                                               Delaware
Building One Commercial, Inc.                                     Missouri
Building One Service Solutions, Inc.                              Virginia
BUYR, Inc.                                                        Delaware
Callahan Roach Products & Publications, Inc.                      Colorado
Cardinal Contracting Corporation                                   Indiana
Central Air Conditioning Contractors, Inc.                        Delaware
Central Carolina Air Conditioning Company                      North Carolina
Chapel Electric Co.                                                 Ohio
Charlie Crawford, Inc.                                            Delaware
ChIP Corp.                                                        Delaware
Clark Converse Electric Service, Inc.                               Ohio
Colonial Air Conditioning Company                                 Delaware
Commercial Air Holding Company                                    Maryland
Commercial Air, Power and Cable, Inc.                             Maryland
Conch Republic Corp.                                              Delaware
Continental Electrical Construction Co.                           Delaware
Costa and Rihl, Inc.                                             New Jersey
</TABLE>
<PAGE>

<TABLE>
<S>                                                                          <C>
Costner Brothers, Inc.                                                      South Carolina
Cramar Electric, Inc.                                                            Kansas
C.R. Hipp Construction Co., Inc.                                             South Carolina
Del-Air Service Company, Inc.                                                   Tennessee
Delta Innovations, Ltd.                                                           Ohio
Divco, Inc.                                                                    Washington
Diversified Management Services U.S.A., Inc.                                    Virginia
Dynalink Corporation                                                              Ohio
EDG Power Group, Inc.                                                           Oklahoma
EET Holdings, Inc.                                                              Delaware
Electrical Contracting, Inc.                                                   California
Electrical Design & Construction, Inc.                                          Oklahoma
Encompass Electrical Technologies Central Tennessee, Inc.                       Tennessee
Encompass Electrical Technologies Eastern Tennessee, Inc.                       Tennessee
Encompass Electrical Technologies - Florida, LLC                                Delaware
Encompass Electrical Technologies Georgia, Inc.                                  Georgia
Encompass Electrical Technologies Jacksonville, Inc.                             Florida
Encompass Electrical Technologies of Nevada, Inc.                                Nevada
Encompass Electrical Technologies of New England, Inc.                          Delaware
Encompass Electrical Technologies North Carolina, Inc.                       North Carolina
Encompass Electrical Technologies North Florida, Inc.                            Florida
Encompass Electrical Technologies Projects Group, Inc.                           Florida
Encompass Electrical Technologies - Rocky Mountains, Inc.                        Florida
Encompass Electrical Technologies South Carolina, Inc.                       South Carolina
Encompass Electrical Technologies Southeast, Inc.                                Florida
Encompass Electrical Technologies of Texas, Inc.                                  Texas
Encompass Electrical Technologies Western Tennessee, Inc.                       Tennessee
Encompass Facility Services, Inc.                                               Delaware
Encompass Global Technologies, Inc.                                             Delaware
Encompass Ind./Mech. of Texas, Inc.                                             Delaware
Encompass Management Co.                                                        Delaware
Encompass Mechanical Services Southeast, Inc.                                  Mississippi
Encompass Plumbing, Inc.                                                       New Jersey
Encompass Services Holding Corp.                                                Delaware
Encompass Services Indiana L.L.C.                                                Indiana
Engineering Design Group, Inc.                                                  Oklahoma
ESR PC, L.P.                                                                      Texas
Evans Services, Inc.                                                             Alabama
FacilityDirect.com, LLC                                                         Virginia
</TABLE>
<PAGE>

<TABLE>
<S>                                                                         <C>
The Farfield Company                                                            Delaware
Ferguson Electric Corporation                                                   Delaware
Fred Clark Electrical Contractor, Inc.                                            Texas
Gamewell Mechanical, Inc.                                                    North Carolina
Garfield-Indecon Electrical Services, Inc.                                        Ohio
Gilbert Mechanical Contractors, Inc.                                            Minnesota
Gregory Electric, Inc.                                                          Delaware
GroupMAC Texas, L.P.                                                              Texas
Gulf States, Inc.                                                                 Texas
Hallmark Air Conditioning, Inc.                                                 Delaware
HPS Plumbing Services, Inc.                                                    California
Hungerford Mechanical Corporation                                               Virginia
HVAC Services, Inc.                                                               Ohio
Hydro Cooling, Inc.                                                              Florida
Interstate Building Services, L.L.C.                                            Virginia
Isla Morada, LLC                                                                Delaware
Ivey Mechanical Services, L.L.C.                                                  Texas
K&N Plumbing, Heating and Air Conditioning, Inc.                                Delaware
Laney's, Inc.                                                                   Delaware
Lexington/Ivey Mechanical Company, L.L.C.                                       Kentucky
The Lewis Companies, Inc.                                                       Oklahoma
Linford Service Co.                                                            California
L.T. Mechanical, Inc.                                                           Delaware
MacDonald-Miller Co., Inc.                                                     Washington
MacDonald-Miller Industries, Inc.                                              Washington
MacDonald-Miller of Oregon, Inc.                                                Delaware
MacDonald-Miller Service, Inc.                                                 Washington
Masters, Inc.                                                                   Maryland
Mechanical Services of Orlando, Inc.                                             Florida
Merritt Island Air & Heat, Inc.                                                 Delaware
National Network Services, Inc.                                                 Delaware
Oil Capital Electric, Inc.                                                      Oklahoma
Omni Mechanical Company                                                         Oklahoma
Omni Mechanical Services                                                        Oklahoma
Pacific Rim Mechanical Contractors, Inc.                                       California
Paul E. Smith Co., Inc.                                                          Indiana
Phoenix Electric Company                                                        Delaware
Pro Wire Security Systems, Inc.                                                  Kansas
Ray and Claude Goodwin, Inc.                                                     Florida
</TABLE>
<PAGE>

<TABLE>
<S>                                                                        <C>
Regency Electric Company South Florida Office, Inc.                              Florida
Reliable Mechanical, Inc.                                                       Delaware
Riviera Electric of California, Inc.                                           California
Robinson Mechanical Company                                                     Colorado
Romanoff Electric Corp.                                                           Ohio
Roth Companies Incorporated                                                      Indiana
Sanders Bros., Inc.                                                          South Carolina
Sequoyah Corporation                                                           Washington
Sibley Services, Incorporated                                                   Tennessee
SKC Electric, Inc.                                                               Kansas
SKCE, Inc.                                                                       Kansas
S. L. Page Corporation                                                           Florida
Snyder Mechanical                                                                Nevada
Southeast Mechanical Service, Inc.                                               Florida
Stephen C. Pomeroy, Inc.                                                        Delaware
Sterling Air Conditioning, Inc.                                                 Delaware
Sun Plumbing, Inc.                                                               Florida
Taylor-Hunt Electric, Inc.                                                        Utah
Team Mechanical, Inc.                                                             Utah
Tower Electric Company                                                          Delaware
Town & Country Electric, Inc.                                                   Wisconsin
Tri-City Electrical Contractors, Inc.                                            Florida
Tri-M Corporation                                                             Pennsylvania
Tri-State Acquisition Corp.                                                      Nevada
United Acquisition Corp.                                                          Iowa
United Service Alliance, Inc.                                                   Delaware
Van's Comfortemp Air Conditioning, Inc.                                          Florida
Vantage Mechanical Contractors, Inc.                                            Maryland
Vermont Mechanical, Inc.                                                        Delaware
Wade's Heating & Cooling, Inc.                                                   Florida
Watson Electrical  Construction Co.                                          North Carolina
Wayzata, Inc.                                                                   Delaware
Wiegold & Sons, Inc.                                                             Florida
Willis Refrigeration, Air Conditioning & Heating, Inc.                            Ohio
Wilson Electric Company, Inc.                                                    Arizona
Yale Incorporated                                                               Minnesota
</TABLE>
<PAGE>

                                                                      Schedule 2

Initial Purchaser
-----------------

Banc of America Securities LLC
Credit Suisse First Boston Corporation
Deutsche Banc Alex. Brown Inc.
First Union Securities, Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Salomon Smith Barney Inc.
Banc One Capital Markets, Inc.
Credit Lyonnais Securities (USA) Inc.

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